CASE 18 Burger King

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1. 1. Case Summary

Case Summary

Burger King previously called as Insta-Burger King, it was the second largest hamburger Burger King previously called as Insta-Burger King, it was the second largest hamburger franchise chain in the world after McDonald. As per June 2010, it is recorded that burger franchise chain in the world after McDonald. As per June 2010, it is recorded that burger king has 12

king has 12’ ’ 174 outlets in 76 countries, which is 66 percent of them are in the US and 90174 outlets in 76 countries, which is 66 percent of them are in the US and 90 percent are privately owned and operated worldwide. This fast food chain was established percent are privately owned and operated worldwide. This fast food chain was established by Keith Kramer and Matthew burns on 1953. In 1955, after facing financial difficulty this by Keith Kramer and Matthew burns on 1953. In 1955, after facing financial difficulty this company was sold to Miami based franchised and being renamed Burger King by its new company was sold to Miami based franchised and being renamed Burger King by its new owner called James Mclamore and David Edgerton. In 1989, this company bought by owner called James Mclamore and David Edgerton. In 1989, this company bought by Deigo a British Spirit Company. Under Diego management BK has fall off in the business Deigo a British Spirit Company. Under Diego management BK has fall off in the business because of poor performance. To avoid from further loses, Diego has sell it to a because of poor performance. To avoid from further loses, Diego has sell it to a partnership private equity firm led by TPG capital in 2002. Burger King is the Second partnership private equity firm led by TPG capital in 2002. Burger King is the Second largest chain of hamburger fast f

largest chain of hamburger fast food restaurant in terms of global location, behind inood restaurant in terms of global location, behind industrydustry bellwether

bellwether McDonald’sMcDonald’s. Based on resources, company income was generate mainly from. Based on resources, company income was generate mainly from three sources that is retails sales at company owned restaurant, royalty payment from three sources that is retails sales at company owned restaurant, royalty payment from sales and fee from franchise and also property income from restaurant leases to sales and fee from franchise and also property income from restaurant leases to franchisees. Management has used a business strategy that can help boost sales and franchisees. Management has used a business strategy that can help boost sales and production performance and investing on promoting the brand. The company also production performance and investing on promoting the brand. The company also specifically plan on growing its chain and focus on international expressions. Expansions specifically plan on growing its chain and focus on international expressions. Expansions are done only at selected market for example a country that has potential on positive are done only at selected market for example a country that has potential on positive growth and attractive new market for instants the Middle East or Asia markets. According growth and attractive new market for instants the Middle East or Asia markets. According to industry analysis, burger king share price had fallen by half from 2008 to 2010, this is to industry analysis, burger king share price had fallen by half from 2008 to 2010, this is according to them burger king is having significant management problem.

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2. 2. SWOT Analysis

SWOT Analysis

A.

A. Strength: Company InternalStrength: Company Internal 1.

1. Burger King Second largest Fast Food Hamburger is known for its strongBurger King Second largest Fast Food Hamburger is known for its strong brand

brand: Throughout the years it has survive in the industry and has built a strong: Throughout the years it has survive in the industry and has built a strong brand in the US and worldwide since was founded in Florida in 1953.

brand in the US and worldwide since was founded in Florida in 1953. 2.

2. Solid market positionSolid market position: Which measured by the total number of restaurant and: Which measured by the total number of restaurant and system wide sales as well as Burger King also being the second largest fast-food system wide sales as well as Burger King also being the second largest fast-food hamburger restaurant chain in the world.

hamburger restaurant chain in the world. 3.

3. Lower capital requirement:Lower capital requirement: This is provide burger king with a strategic This is provide burger king with a strategic advantage as the capital required to grow and maintain the burger king system is advantage as the capital required to grow and maintain the burger king system is funded primarily by franchisees. When compared to competitors causing burger funded primarily by franchisees. When compared to competitors causing burger king to have high percentage of franchise restaurant (90%).

king to have high percentage of franchise restaurant (90%). 4.

4. Owned distribution cooperative:Owned distribution cooperative: which is, restaurant service Inc. that manage which is, restaurant service Inc. that manage and act as the purchasing agent for the Burger king a system in the U.S. this and act as the purchasing agent for the Burger king a system in the U.S. this ensure items move smoothly and efficiently from supplier through regional ensure items move smoothly and efficiently from supplier through regional distribution centers and each restaurant across the country.

distribution centers and each restaurant across the country. 5.

5. Long term exclusive contracts:Long term exclusive contracts: Burger King have exclusive contract with the Burger King have exclusive contract with the other strong brand name which is Coca-Cola and with Dr. Pepper, seven-up, to other strong brand name which is Coca-Cola and with Dr. Pepper, seven-up, to purchase soft drinks for its outlet.

purchase soft drinks for its outlet. 6.

6. Boost efficiency by reduce costBoost efficiency by reduce cost: Burger King installing point-of-sale cash: Burger King installing point-of-sale cash register system and flexible batch broiler to maximize cooking flexibility and register system and flexible batch broiler to maximize cooking flexibility and facilitate a broader menu selection while reducing energy cost.

facilitate a broader menu selection while reducing energy cost.

B.

B. Weaknesses: Company InternalWeaknesses: Company Internal 1.

1. Rely on franchiseesRely on franchisees: The revenue sources is two from its three source of: The revenue sources is two from its three source of revenue.

revenue. 2.

2. The changes of management:The changes of management: over the years may undermined its ability to over the years may undermined its ability to establish and communicate a consistent and motivational vision to its franchisees. establish and communicate a consistent and motivational vision to its franchisees. For example, when Diageo’s management took over Burger King Business, the For example, when Diageo’s management took over Burger King Business, the performance was poor to the point that major franchises went out of business and performance was poor to the point that major franchises went out of business and the total value of the firm declined.

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3.

3. The high percentage of franchiseThe high percentage of franchise: cause Burger King to have limited: cause Burger King to have limited management control.

management control. 4.

4. Concentrated in the US:Concentrated in the US: Burger King concentrated in the US is 60% and has Burger King concentrated in the US is 60% and has small or less percent presence internationally as compared to McDonald’s.

small or less percent presence internationally as compared to McDonald’s. 5.

5. Unable to adapt suitable marketing strategy:Unable to adapt suitable marketing strategy: During the fiscal years and During the fiscal years and marketing to the wrong target market. For example, while McDonald’s strategy is marketing to the wrong target market. For example, while McDonald’s strategy is to put more emphasis on woman and older group by offering healthier salads and to put more emphasis on woman and older group by offering healthier salads and upgraded its already good coffee, Burger King continued to market to young men upgraded its already good coffee, Burger King continued to market to young men offering high calorie burger and advertisement featuring dancing chickens and a offering high calorie burger and advertisement featuring dancing chickens and a ‘creepy

‘creepy looking’ klooking’ king. Thiing. This markes marketing conting conccept not only promotes an unhealthy dietept not only promotes an unhealthy diet but also targeting the wrong target market, which was the men, that having but also targeting the wrong target market, which was the men, that having difficulties and was hit hard on employment and such during the fiscal year. difficulties and was hit hard on employment and such during the fiscal year. 6.

6. Torn apart its existing sales by too much rely on value meals:Torn apart its existing sales by too much rely on value meals: which they which they sell it in lower price compared to its production cost. Thus, causing them to lose sell it in lower price compared to its production cost. Thus, causing them to lose money.

money. 7.

7. High calories foodHigh calories food: Some food item for example Pizza Burger, contains 2530-: Some food item for example Pizza Burger, contains 2530-clories. This served as a concern as Americans opt for a more healthy living. clories. This served as a concern as Americans opt for a more healthy living.

C.

C. Opportunities: Environment ExternalOpportunities: Environment External 1.

1. International Expansion:International Expansion: The potential growth and new market of other The potential growth and new market of other countries led to Burger King to focus on exploring new grounds and international countries led to Burger King to focus on exploring new grounds and international expansion.

expansion. 2.

2. Developing Health consciousDeveloping Health conscious: Burger King should also take advantage of the: Burger King should also take advantage of the growing health conscious community where people are more concern on their growing health conscious community where people are more concern on their health by offering and introducing more healthy items on the menu.

health by offering and introducing more healthy items on the menu. 3.

3. The FFHR were projected grow:The FFHR were projected grow: The fast-food hamburger restaurant (FFHR) The fast-food hamburger restaurant (FFHR) category in the quick service restaurant (QSR) segment of the restaurant industry category in the quick service restaurant (QSR) segment of the restaurant industry were projected to grow 5% annually during 2010-2015. This positive remarks is were projected to grow 5% annually during 2010-2015. This positive remarks is advantageous to Burger King and a good time to market Burger King Products advantageous to Burger King and a good time to market Burger King Products according to consu

according to consumer’smer’s needs. needs. 4.

4. Market ShareMarket Share: Marketing and operating economies of scale made it difficult for: Marketing and operating economies of scale made it difficult for new entrant established U.S chains in the FFHR category. With this, burger king new entrant established U.S chains in the FFHR category. With this, burger king

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have the competitive advantage to further increase its market share in the have the competitive advantage to further increase its market share in the industry.

industry.

D.

D. Threats: Environment ExternalThreats: Environment External 1.

1. The economic recession 2008 to 2010:The economic recession 2008 to 2010: has caused the declining margins in has caused the declining margins in Burger King.

Burger King. 2.

2. Legislation for unhealthy fast food:Legislation for unhealthy fast food: threatens not only Burger King but the threatens not only Burger King but the quick service restaurant as a whole. For example, a health reform bill passed by quick service restaurant as a whole. For example, a health reform bill passed by the US congress in 2010 required restaurant chains to list the calorie content of the US congress in 2010 required restaurant chains to list the calorie content of the menu.

the menu. 3.

3. CompetitorsCompetitors: Burger King Competitor such as McDonald and indirect competitor: Burger King Competitor such as McDonald and indirect competitor such as Taco Bell, KFC, and Pizza Hut etc. Burger King may face other small such as Taco Bell, KFC, and Pizza Hut etc. Burger King may face other small growing competitors as the barrier for the entry is low.

growing competitors as the barrier for the entry is low.

E.

E. EFE MatrixEFE Matrix No

No Opportunities Opportunities Weight Weight RatingRating WeightedWeighted Score Score 1 1 2 2 3 3 4 4 International Expansion. International Expansion. Developing Health Developing Health conscious. conscious. The (FFHR) were The (FFHR) were projected to grow. projected to grow. Market share. Market share. 0.20 0.20 0.20 0.20 0.10 0.10 0.10 0.10 3 3 3 3 2 2 2 2 0.60 0.60 0.60 0.60 0.20 0.20 0.20 0.20 No

No Threat Threat Weight Weight RatingRating WeightedWeighted Score Score 1 1 2 2 3 3 Economic recession 2008 Economic recession 2008 to 2010. to 2010.

Legislation for unhealthy Legislation for unhealthy fast food. fast food. Competitors. Competitors. 0.20 0.20 0.10 0.10 0.10 0.10 2 2 2 2 2 2 0.40 0.40 0.20 0.20 0.20 0.20 Total Total 1.0 1.0 2.42.4

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F.

F. IFE MatrixIFE Matrix No

No Strength Strength Weight Weight RatingRating WeightedWeighted Score Score 1 1 2 2 3 3 4 4 5 5 6 6

Strong brand name. Strong brand name. Solid market position. Solid market position. Lower capital requirement. Lower capital requirement. Own distribution

Own distribution cooperativ

cooperative e (RSI)(RSI) Exclusive contracts. Exclusive contracts. Boost efficient by reduce Boost efficient by reduce cost. cost. 0.13 0.13 01.0 01.0 0.08 0.08 0.07 0.07 0.06 0.06 0.03 0.03 4 4 3 3 3 3 3 3 3 3 3 3 0.52 0.52 0.30 0.30 0.24 0.24 0.21 0.21 0.18 0.18 0.09 0.09 No

No Weaknesses Weaknesses Weight Weight RatingRating WeightedWeighted Score Score 1 1 2 2 3 3 4 4 5 5 6 6 7 7 Rely on franchise as Rely on franchise as source of revenue. source of revenue. The changes of The changes of management. management. Limited management Limited management control. control. Concentrated in US only. Concentrated in US only. Wrong marketing strategy. Wrong marketing strategy. Too much emphasis on Too much emphasis on value meals.

value meals. High calorie food. High calorie food.

0.13 0.13 0.09 0.09 0.07 0.07 0.08 0.08 0.10 0.10 0.03 0.03 0.03 0.03 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0.26 0.26 0.18 0.18 0.14 0.14 0.16 0.16 0.20 0.20 0.06 0.06 0.06 0.06 Total Total 1.0 1.0 2.62.6

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G.

G. CPM MatrixCPM Matrix

McDonald’s

McDonald’s _Wendy_{Wendy Hemberger}_Hemberger _{Burger King}_{Burger King}

Critical Critical Success Success Factor Factor Weight Rating

Weight Rating WeightedWeighted Score

Score RatingRating

Weighted Weighted

Score

Score RatingRating

Weighted Weighted Score Score Brand Brand Name Name 0.15 0.15 4 4 0.6 0.6 2 2 0.30 0.30 3 3 0.450.45 Product Product Quality Quality 0.09 0.09 2 2 0.18 0.18 3 3 0.21 0.21 3 3 0.210.21 Public Public Image Image 0.07 0.07 2 2 0.14 0.14 2 2 0.14 0.14 3 3 0.240.24 Market Market Share Share 0.10 0.10 4 4 0.40 0.40 3 3 0.30 0.30 3 3 0.300.30 Price Price Competitive Competitive 0.05 0.05 3 3 0.15 0.15 3 3 0.15 0.15 2 2 0.100.10 Innovation Innovation 0.04 0.04 3 3 0.12 0.12 2 2 0.08 0.08 2 2 0.080.08 Advertising Advertising 0.06 0.06 4 4 0.24 0.24 2 2 0.12 0.12 3 3 0.180.18 Market Market Expansion Expansion 0.08 0.08 4 4 0.32 0.32 4 4 0.32 0.32 4 4 0.320.32 Financial Financial Position Position 0.06 0.06 4 4 0.24 0.24 2 2 0.12 0.12 3 3 0.180.18 Sales Sales Distribution Distribution 0.08 0.08 3 3 0.24 0.24 3 3 0.24 0.24 3 3 0.240.24 Strategic Strategic Partnership Partnership and and Alliances Alliances 0.04 0.04 3 3 0.12 0.12 2 2 0.08 0.08 3 3 0.120.12 Number of Number of Logistic Logistic 0.10 0.10 3 3 0.30 0.30 3 3 0.30 0.30 4 4 0.400.40 Geographic Geographic coverage coverage 0.08 0.08 3 3 0.24 0.24 2 2 0.16 0.16 4 4 0.320.32 1.0 1.0 3.29 3.29 2.52 2.52 3.143.14

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3. 3. Problem Statement

Problem Statement

“

“Poor leadership and management, and loss of brand vision that leads to weak marketingPoor leadership and management, and loss of brand vision that leads to weak marketing strategies, wrong target market and lack of innovations.”

strategies, wrong target market and lack of innovations.” 

 Poor Management by its previous predecessor.Poor Management by its previous predecessor. 

 Weak marketing strategies and wrong target market.Weak marketing strategies and wrong target market.



 Lack of product innovations.Lack of product innovations.



 Limited management control.Limited management control.



 Reliance of franchisees as revenue source.Reliance of franchisees as revenue source.

4. 4. Alternative Strategy

Alternative Strategy

1.

1. RebrandingRebranding

Brand is important asset to the company, when company has confident, well-positioned Brand is important asset to the company, when company has confident, well-positioned brand, opportunity grows you are perceived as more credible, get more unsolicited leads, brand, opportunity grows you are perceived as more credible, get more unsolicited leads, close

close higher percentage of business and higher percentage of business and can charge more can charge more for your for your services. Rebrandingservices. Rebranding is marketing strategy in which a new name, term, symbol, design, or combination thereof is marketing strategy in which a new name, term, symbol, design, or combination thereof is created for an established brand with the intention of developing a new, differentiated is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, and competitors. Often, this involve radical identity in the minds of consumers, investors, and competitors. Often, this involve radical changes to a brand logo, name, and image, marketing strategy, and advertising themes. changes to a brand logo, name, and image, marketing strategy, and advertising themes. Such changes typically aim to reposition the brand/company, occasi

Such changes typically aim to reposition the brand/company, occasionally to distance itselfonally to distance itself from negative connotations of the previous branding, or to move the brand upmarket, from negative connotations of the previous branding, or to move the brand upmarket, furthermore they may also communicate a new massage a new broad of director wishes furthermore they may also communicate a new massage a new broad of director wishes to communicate.

to communicate.

2.

2. Setting new product and marketing strategies.Setting new product and marketing strategies. Burger King has successfully dif

Burger King has successfully differentiated from its competitors when it launched the Haveferentiated from its competitors when it launched the Have It Your Way advertising in 1974. But the constant take-over of the company has caused It Your Way advertising in 1974. But the constant take-over of the company has caused it to loose direction of its market segment and target. The inflexibility of its marketing it to loose direction of its market segment and target. The inflexibility of its marketing strategies has led to unnecessary menu development and targeting the wrong market. strategies has led to unnecessary menu development and targeting the wrong market. The product development should take into account the current demand of the market. At The product development should take into account the current demand of the market. At times like this where the community re more concerns on their health

times like this where the community re more concerns on their health, they will think more, they will think more of their family and protection aga

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be able create a product that caters the community concerns and needs. Which include be able create a product that caters the community concerns and needs. Which include more healthy food items on the menu as well as targeting a wider market segments and more healthy food items on the menu as well as targeting a wider market segments and consumers. The marketing campai

consumers. The marketing campaign that will be used must be able to reach certain targetgn that will be used must be able to reach certain target group for certain products.

group for certain products.

3.

3. Market expansionMarket expansion

For the organic growth (slow and steady growth) of the company, Burger King must For the organic growth (slow and steady growth) of the company, Burger King must expand its market to potential countries l

expand its market to potential countries like to Kuwait, Bahrain. Qatar and united emiraike to Kuwait, Bahrain. Qatar and united emiratestes and South Africa while the existing market should be concentrated more to compete with and South Africa while the existing market should be concentrated more to compete with the rivals. Modernization and the vast cultural impact of western culture to the other parts the rivals. Modernization and the vast cultural impact of western culture to the other parts of the world can be an advantage for BK to expand its market in other market outside of the world can be an advantage for BK to expand its market in other market outside Europe. Guerrilla style tactic can be used to open outlets in international major airports. Europe. Guerrilla style tactic can be used to open outlets in international major airports. This is easier for BK to reach worldwide market. BK must have an outlet at every airport This is easier for BK to reach worldwide market. BK must have an outlet at every airport in every capital around the world for the worldwide expansion.

in every capital around the world for the worldwide expansion.

5. 5. Evaluation of Alternative Strategy

Evaluation of Alternative Strategy

No No Evaluation of Evaluation of Alternativ Alternativee Strategy Strategy Pro Cons Pro Cons 1 Rebranding 1 Rebranding 

 New and fresh image ofNew and fresh image of Burger King will be Burger King will be introduced with the new introduced with the new takeover.

takeover. 

 Can help understandingCan help understanding more of the brand, due more of the brand, due to help in hiring more to help in hiring more suitable staff and target suitable staff and target the right sort of client. the right sort of client. 

 The franchisees will beThe franchisees will be involved in this process, involved in this process, this will boost morale this will boost morale and make them and make them ambitious to take on ambitious to take on new level.

new level.



 Required took intoRequired took into account the resources account the resources and the high cost for and the high cost for rebranding.

rebranding.

2 2

Setting New product Setting New product and marketing

and marketing strategies. strategies.



 Aim to pro Aim to promote momote morere healthy food items, due healthy food items, due to passing of the health to passing of the health reform bill in US.

reform bill in US.



 Requires the companyRequires the company to have a well define to have a well define rod map and

rod map and

commitments to rise commitments to rise

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their service standard their service standard to customers.

to customers. 

 Will involve lots ofWill involve lots of spending toward a new spending toward a new marketing campaign. marketing campaign. 3 3 MarketingMarketing expansion. expansion. 

 Will makes the cost ofWill makes the cost of doing business less on doing business less on pre-customers basis, pre-customers basis, which improve the which improve the potential to profit by potential to profit by adding new customers. adding new customers.



 Requires to access theRequires to access the limitation of entering limitation of entering into new geographical into new geographical location particularly on location particularly on the government

the government regulation and the regulation and the social climate or trend social climate or trend of the people in those of the people in those countries.

countries.

6. 6. The Best Strategy and Justification

The Best Strategy and Justification

The best strategy for burger kin

The best strategy for burger king is to combine the two alternative which areg is to combine the two alternative which are rebrandingrebranding and setting new product and marketing strategies

and setting new product and marketing strategies. The poor management and. The poor management and constant leadership change in burger king has hurt the brand name. Furthermore, it also constant leadership change in burger king has hurt the brand name. Furthermore, it also provide this line and limited control over the franchisees and their uptake on their provide this line and limited control over the franchisees and their uptake on their restaurant. With rebranding, it can strengthen its management policy along the way as restaurant. With rebranding, it can strengthen its management policy along the way as rebranding takes time and effort from all parties in Burger King including the franchisees. rebranding takes time and effort from all parties in Burger King including the franchisees. This can further strengthen the connection to its franchisees and expand its control. This can further strengthen the connection to its franchisees and expand its control. Rebranding can also reintroduce burger king to the masses and shows a conviction to the Rebranding can also reintroduce burger king to the masses and shows a conviction to the consumer that they are ready for change and further position and strengthen its place in consumer that they are ready for change and further position and strengthen its place in the market.

the market.

For the second strategy. Burger King has to change their

For the second strategy. Burger King has to change their marketing strategiesmarketing strategies in order to be survival in the fast-food industry. Changes on the burger king infrastructure in order to be survival in the fast-food industry. Changes on the burger king infrastructure will gain positive respond from customers because basically new trend attract more new will gain positive respond from customers because basically new trend attract more new customer. Burger king need to change the target market from younger people to family customer. Burger king need to change the target market from younger people to family segmentation in order to increase their market share. Targeting on the children and segmentation in order to increase their market share. Targeting on the children and working parents help burger king to define its target market not only for younger people working parents help burger king to define its target market not only for younger people but also for the family-oriented population. Thus, every new marketing trends evolve by but also for the family-oriented population. Thus, every new marketing trends evolve by burger king will promise the company a good return in term of increase in market share, burger king will promise the company a good return in term of increase in market share, customer loyalty, brand popularity and competitive advantage. In order to survive, Burger customer loyalty, brand popularity and competitive advantage. In order to survive, Burger King need focusing on its marketing strategies, Burger King Need to develop new King need focusing on its marketing strategies, Burger King Need to develop new

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marketing plan as creating more family-oriented menu for the restaurant, deliver new marketing plan as creating more family-oriented menu for the restaurant, deliver new marketing campaign through different medium such as loyalty customer programs, marketing campaign through different medium such as loyalty customer programs,

limited-limited-time offers menu strategy, kid’s menu packagetime offers menu strategy, kid’s menu package, festival offer and slightly change, festival offer and slightly change the concept from a high calorie menu to healthier or low calorie menu.

the concept from a high calorie menu to healthier or low calorie menu.

7. 7. Implementation

Implementation

a)

a) Short TermShort Term 1.

1. RebrandingRebranding

With rebranding, a new and fresh image of burger king will be introduced with the new With rebranding, a new and fresh image of burger king will be introduced with the new takeover. Burger king need to rebrand its outlet which is more focus and specific and goal takeover. Burger king need to rebrand its outlet which is more focus and specific and goal direct kind of image due to consumer may confused on what burger king may offers. direct kind of image due to consumer may confused on what burger king may offers. Burger king also may merge with another fast food operator to learn Service skills or fast Burger king also may merge with another fast food operator to learn Service skills or fast operation knowledge able to transfer between both operators, choose operator which is operation knowledge able to transfer between both operators, choose operator which is one of the top major quick service restaurant is US. Furthermore, with this move Burger one of the top major quick service restaurant is US. Furthermore, with this move Burger King can gain more market share in the quick restaurant industry. Apart from that, HRM King can gain more market share in the quick restaurant industry. Apart from that, HRM department also need to restructure its staff and employee into a more organize group department also need to restructure its staff and employee into a more organize group and this will involve extra cost through the upgrading of certain system.

and this will involve extra cost through the upgrading of certain system.

2.

2. Advertisi Advertisingng

Burger king may establish new marketing strategy. Burger king may opt to invest in its Burger king may establish new marketing strategy. Burger king may opt to invest in its commercial advertising by getting healthy celebrity who enjoys burger king new healthier commercial advertising by getting healthy celebrity who enjoys burger king new healthier food. Burger king need to showcase its various new menu item, which include smoothies, food. Burger king need to showcase its various new menu item, which include smoothies, salad and specialty coffee drinks. The commercial video must strike a humorous tone and salad and specialty coffee drinks. The commercial video must strike a humorous tone and should be more fun than the old one. To attract more children consumer burger king may should be more fun than the old one. To attract more children consumer burger king may introduce mascot. To attract the busy and always on the move consumer they may introduce mascot. To attract the busy and always on the move consumer they may promote a video that showcase the food is ready to eat and prepared in just a minute. promote a video that showcase the food is ready to eat and prepared in just a minute. b)

b) Long termLong term 1.

1. Introduce healthier MenuIntroduce healthier Menu

People nowadays are more concern on health, thus burger king can take a chance to People nowadays are more concern on health, thus burger king can take a chance to promote and introduce a healthier food and drink. For example include a fresh fruit or promote and introduce a healthier food and drink. For example include a fresh fruit or

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include the current food ingredient for example reduce or remove all usage of mgs in include the current food ingredient for example reduce or remove all usage of mgs in food, or reject on preparing burge

food, or reject on preparing burger that have pickles. For its drinks, they can introducer that have pickles. For its drinks, they can introduce organic fresh drink and cut off the use of sugar in its drink.

organic fresh drink and cut off the use of sugar in its drink.

2.

2. A consisten A consistent compant company ownershy ownershipip

Based on history of this company, the ownership is changed on regular basis. This Based on history of this company, the ownership is changed on regular basis. This may bring to a negative consume

may bring to a negative consumer perception on its company. Its only show how weakr perception on its company. Its only show how weak burger king in its management and its unstab

burger king in its management and its unstable top management position. Burger kingle top management position. Burger king needs a leader who can specifically direct its company to a clearer direction or vision. needs a leader who can specifically direct its company to a clearer direction or vision. A

A leader leader that that can can articularticulate ate clear clear vision vision of of the the company company and and compellincompelling g picture picture ofof future condition that the staff and franchisees feel committed to achieve. A strong future condition that the staff and franchisees feel committed to achieve. A strong formation in top management is very important so that can bring a positive aura to formation in top management is very important so that can bring a positive aura to the franchises or the worker itself.

CASE 18 Burger King

TABLE OF CONTENTS

TABLE OF CONTENTS

1.

1. Case Summary

Case Summary

2.

2. SWOT Analysis

SWOT Analysis

3.

3. Problem Statement

Problem Statement

4.

4. Alternative Strategy

Alternative Strategy

5.

5. Evaluation of Alternative Strategy

Evaluation of Alternative Strategy

6.

6. The Best Strategy and Justification

The Best Strategy and Justification

7.

7. Implementation

Implementation