Mini Case Analysis

BURGER KING

Perspective: This case analysis is looking the problem in the point of view of the management
and the owner of the business.

Main Problem of the Case:

Burger King has gone through different management styles and companies since year
1953 from Keith Kramer and Matthew Burns down to 3G capital, an investment group
dominated by three Brazilian millionaires. Even though Burger King established itself as a well-
known brand over the years, its history speaks to us about its poor management that has put a toll
on its name. Along the way, its revenues reflects downward and its price per share had dropped.
New ownership means new Board of Directors and a change in the top management. What
should new management propose to ensure the survival and long-term success of Burger King?

Statement of Objectives:

1. Management

The company should focus on positive growth and survival through leadership stability.

2. Operations

The company needs to start focusing on its growth strategies like expansion.

3. Financial

The company should continue to look for ways and strategies to increase its revenues and
reduce costs to ensure survival and long term success.

4. Marketing

The company should take advantage of the current situation where people are very
particular and more concern on their health by offering and introducing products with healthy
elements.

Alternative Courses of Action:

Management

 The company should try to stabilize its leadership. The ever-changing leadership
undermined its ability to establish and communicate a consistent and motivational vision
 to its franchisees. This lack of mission and direction will cause consumers to be confused
about Burger King’s image. This failures will result in declining profits.

 Market expansion strategy at new geographical locations that would raise customer’s
awareness to the existence of company.

 The company should try to set new product and marketing strategies. Through this wider
range of consumer can be achieved with new marketing strategize that target whole
gender and age group. New product development promote more healthy items.

Operations

 As part of its growth strategy, Burger king should add mobile ordering and payment
options in all its domestic stores. The application will help provide coupons and nutrition
facts to consumers.

 Burger King must focus on convenience and update its stores to beat competitors. They
will feature open kitchens, double drive-thru lanes and outdoor digital menu boards.
These changes will convince consumers to order Burger King meals more often and
spend more money at the store.

 The company needs to start focusing on its expansion strategies on countries with growth
potential where they have already established, countries with growth potential where the
company had small presence and attractive new markets in Asia and Middle East.

Financial

 The company should continue to look for ways to reduce costs and boost efficiency like
installing POS system and flexible batch broiler to maximize cooking flexibility and
facilitate broader menu selection to reduce energy cost.

 The company should support franchising as sources of revenue. Company must strategize
to lower capital requirements compared to competitors causing it to increase percentage
of franchise branches locally and internationally.

 The company should reevaluate their business decisions and strategies because it affects
their income like putting too much emphasis on value meals which they sell in lower
price compared to its production cost. Thus, losing them too much money.

Marketing

 Burger King needs to develop new marketing campaign that focus on the demand of the
current market like products that clearly provide a mix of healthy ingredients.
  Burger King must try rebranding strategy to make a new and fresh image. With
rebranding, it can help define purpose and value to the brand itself.

 Faced with unprecedented economic challenges and numerous competitors, Burger King
needs to take an aggressive approach to offset any challenges. By anticipating continued
interest in healthy eating, the company should target children as their new customer base
with the development of an organic line of products designed for children.

RECOMMENDATIONS:

Based on the Alternative Courses of action presented, the best alternative to implement or
adopt are the following:

Management

Burger King’s financial struggle begins with its failure to establish a clear direction and
vision of the company. Through its constant changes in ownership, any new strategies and
innovations of these teams being established was negated. The ever-changing leadership
undermined its ability to establish and communicate a consistent and motivational vision to its
franchisees. This lack of mission and direction will cause consumers to be confused about
Burger King’s image. The company should try to stabilize its leadership which could define clear
vision of the company and compelling picture of a future condition that the staff and franchisees
could feel committed to achieve success.

Operations

In order to strengthen its presence internationally, Burger King must ready to venture across the
globe which have high potentials like Asia, Middle East and some parts of Eastern Europe. They must be
out of their comfort zone. The US market was already saturated and the competition is quite stiff. Expand
on countries with growth potential where they have already established, countries with growth
potential where the company had small presence and attractive new markets.

Financial

The company should continue to look for ways to ensure survival and long term success.
Since the company is too dependent and heavily relying on franchisees as their revenue sources,
the company should support this replication scheme. Company must strategize to lower capital
requirements compared to competitors causing it to increase percentage of franchise branches
locally and internationally. Through proper franchising system and management styles, it can
help increase sales and profit as well.

Marketing

What Burger King needs is probably a new marketing campaign that focus on the
demand of the current market. The new marketing campaign must also be supported with
products that clearly provide a mix of healthy ingredients. The marketing campaign must be able
to reach certain target group for certain products. At times like this where the community are
more concern on their health, they will think more of their family and protection against having
high calories foods. In short, Burger King must be able to create a product that caters the
community concerns, needs and as well as satisfaction.