Burger King Beefs Up Global Operations

1. Core competency of Burger King is: unique flame- broiled hamburgers instead of grill-

fried ones. This has differentiated Burger King from other fast food competitors and very

difficult to imitate. Moreover, Burger King allows customers to customize their burgers

with various options to their liking. This has created a win - win situation for both Burger

King and the consumers. With the “Have it your way” theme, Burger King has the

opportunity to offer a different product and the consumers in turn benefit at having many

burger options to select.

2. Although Burger King’s menu has been expanded, they have always been loyal to their

original recipe is flame- broiled burgers. Because this product them a considerable

advantage over other fast food chains, and thus create the most value for the company.

3. In order to cope with intense competition and saturated growth in domestic market,

Burger King seeks for strengthening its competitiveness through international expansion.

The advantages of this are:

- More opportunities: new market, more customers in overseas market.

- Opens up many doors to potential franchisees.

- Profits increase.

- Gain and apple experience from local ventures.

Though, some disadvantages that should be considered:

- Different customer’s needs.

- Lack of resources at particular region.

- Rules and regulations of that country and business.

4. When entering a new country, Burger King needs to ensure that the country fits its ideal

demographic profile. This process creates advantages and disadvantages to an

international chain like Burger King, in comparison with local companies in that market.

Advantages:

- Vast resources available.

- International brand recognition.

- Enhance product mix to cater to local tastes.

- Favorable in operation since providing job opportunities.

Disadvantages:

- Unfamiliar with the customers and indigenous culture.

- Contentious local competition.

- Local companies easy to alter their menus and flavors.

- Not enough good suppliers to support both Burger King and local ventures.

5. This relationship should change. Because Americas region is considered to be a mature

market. With similar products and fierce competition, opportunities in this region are less

than other parts of the world obviously. Its biggest competitor McDonalds has gained

success in markets outside the U.S. and Canada. In order to remain competitive and

increase its market share, investing in countries with huge population notably makes

sense. Expansion in such countries can help increase sales and raise visibility on the

international market share. This could not only help strengthen strategic alliances with

suppliers and encourage competition but also help diversify Burger King holdings.

Diversification leads to less sensitive to local economic conditions. Burger King also

needs to learn from past mistakes as they develop systems of their franchise.

6. These conditions would be advantageous because fast food and shopping centers are

considered to be more directly marketed to youngsters. Teenagers are used to and proved

to be the largest group of fast foods consumers. While older customers tend to enjoy

eating traditional foods at home, young people are less likely to eat home-cooked meals

and are more likely to get food on the go. Shopping centers are a perfect place for fast-

food stores because they attract younger and willing-to-spend young people. It is also

convenient from them to obtain food while shopping.

7. Burger King’s headquarters location had always originated from the Miami, Florida area.

The company's headquarter purpose is to help manage and control all local branches from

a central location. Miami is a major metropolitan area with regular amount of tourist

visited from all over the world especially those from Latin America. In addition, Miami is

a frequent destination for snow bird tourist and gain more exposure for Burger King

brand. Burger King has gained benefits from this exposure and recognition in the

international market.

8. As CEO of Burger King, I would use the following strategy to deciding on possible

future locations for the company:

(a) Infrastructure development prior to restaurants.

(b) Develop a local management team.

(c) Emphasize on the development in large cities and near shopping centers.

(d) Set up a local representative office.

(e) Keep up the continuous development and the use of local suppliers to meet global

requirements.

9. There are many chances for Burger King to expand, especially overseas. However,

Burger King is still existing in less than 40 percent of the world. The challenge of

identifying and deciding the most appropriate locations for expansion. Burger King needs

to participate in strategic expansion and expand only when favorable circumstances and

demographic requirements are met.

References

About the Burger King Corporation (n.d.). Retrieved on Nov 15, 2013 from

http://www.bk.com/en/us/international/index.html

Daniels, J. Radebaugh, L., & Sullivan, D. (2011). International business, environment &

operations (13th ed.). Upper Saddle River, NJ: Prentice Hall.