Business Environment Analysis of Burger King Ltd

This report analyzes the internal and external factors affecting the operations of Burger King Ltd, a fast food restaurant company. It includes a SWOT analysis and secondary data sources to determine the company's strengths, weaknesses, opportunities, and threats.

Individual Report

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Environment analysis ..................................................................................................................1
SWOT analysis and secondary data sources to determine internal and external factor..............3
CONCLUSION ...............................................................................................................................4
Recommendation ........................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
A business environment analysis refers to a report which examines and gathers
information about internal conditions and external factors of a business that affect its operations.
These types of report focus on trends, issues and factors which managers of any company are
unable to manage. The report defines how micro and macro factors helps or hinders a company.
To explain the concept of business environment analysis the selected company is Burger King
Ltd, it is fast food restaurant company (Berman and Dalzell-Payne, 2018). It was established in
1954 by Miami and Florida to provide their fast food and beverages to the people. The mission
of the company is to be best value restaurant globally by always exceeding consumer wants. The
vision of the company is to provide best quality of product and services at affordable price to the
consumer.
The report covers aims to achieve and the background of the organisation including the
vision or mission. Further it covers environmental analysis and swot analysis in context to the
organisation.
MAIN BODY
Environment analysis
Environment analysis refers to the business tools which identify the micro and macro
factors which have direct or indirect influence on the efficient and effective working of the
company. It helps the manager of Burger King to identify the future opportunities and threat for
the company to grow their operations (Gao and Li, 2020). The internal factors includes product
issues, management issues, marketing issues in the Burger King which affect its productivity and
performance. Whereas, the external factors includes political, economic, social, environmental,
legal, technological and competitors information.
The internal factors which affect the performance of Burger King are as follows-
Product issues- It refers to the problems in the production process like technical
problems, labour problem and many more. In Burger King, product issues means any issue
associated with the designing, quality and packing of product such as issues related to the safety
of food product, durability of consumer goods.
Marketing issues- It means issues related the advertisement and promotion of the
product and services. In Burger King, the marketers face many issues to promote their product to
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attract large customers in target market such as decide profitable marketing channel, make proper
strategy to promote product which attract more customers, choose suitable marketing mix and
many more which affect the overall sales and profitability of company.
Management issues- It is most crucial aspect for any business which affect overall
performance and market value of the Burger King. There are various issues like poor
communication, decreased performance level, time management issues, extra work load, poor
team work and so on in the organisation which decline quality of performance and productivity.
The external factor is identify by using PESTEL analytical tools which helps managers to
determine opportunities and threat for Burger King that are shown below:
Political- It refers to the political practices and government policies of a country. In US
the political environment is favourable and government provides subsides to food companies for
growth. The managers of Burger King take this opportunities by raising funds from subsidies to
expand their business operations in global market (Ghosh and Rajan, 2019).
Economical-It refers to the market condition, economic condition and suppliers of a
nation. In US, there are large number of retail companies which leads huge competition in
market and most of the business are depended on the whole sellers. The sells and productivity of
Burger King are highly depended on whole seller as well as creative strategies and operations of
new companies are biggest threat for the company.
Social- It is related with customer taste or preferences, values and culture of country.
Most of people in US prefers better quality products and their income level is good. The
management take this opportunity to increase their customer base by providing standard quality
of product and services at affordable price to satisfy consumer expectations.
Technological- It refers to advance and innovative technology available in a nation. In
US, there are large variety of advance technology which helps the retail company to offer their
production innovative way (Ivanovich, 2020). The marketers of Burger King use opportunity of
digital marketing platforms like social media to promote their product and services which leads
to increase in their customer base.
Environmental- It is directly associated with natural resources and weather of any
country. The environment condition in US are unfavourable and dynamic which creates
problems for companies. In Burger King, managers face many problems to make effective plan
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for sales due to rapidly changing in the weather of country which affect negatively the
performance of company.
Legal- It refers to legal structure, tax policies and various law related to business in a
nation. In US, there are rigid laws and legal formalities for taxes which every company have to
pay on time (Milani, 2019). In Burger King, the managers find difficulties to pay taxes because it
has long process as well as sometimes they paid penalties for late payment thus legal factor have
high impact on Burger King.
SWOT analysis and secondary data sources to determine internal and external factor.
SWOT analysis
SWOT analysis is a business analytical tool which identify internal strengths or weakness
as well as external opportunities or threats of company which influences overall functioning of
the company. By using SWOT analysis the managers of Burger King, identifies various issues
related to internal or external factors which hinder their performance and profitability (Nag and
Chatterjee, 2018). It helps the management to determine that areas in which they have
advantages as well as that areas which they need to improve to increase future sales. SWOT
analysis in reference to Burger King are as follows-
Strengths
 The biggest strengths of Burger King,
are its huge range of product, better
quality of products or services and good
connect in market which leads loyal
customer base and brand value.
 The company operate it business at
large scale and have best marketing and
distribution channels which strengthen
its sale and profitability.
Weaknesses
 The major weakness of Burger King, is
that it does not provide differentiation
of food which means that it has many
substitute in the market.
 There are some negative feedbacks and
comments about the quality products
offer by Burger King which badly
impacted the image and reputation of
business in market.
Opportunities
 Burger King has biggest opportunities
to expand its business activities in new
market in new countrie4s.
Threats
 The opening of many online food
companies with low price are biggest
threat for Burger King.
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 Mergers and acquisition with many
small companies creates great
opportunity for Burger King to expand
its operations and get higher market
share.
 A continuous price cut by competitors
would affect the sales and profitability
of Burger King which leads to decline
in customer base.
Secondary data sources
Secondary data sources is refers to the essential information and data of any company
that is collected by any other agency. The data includes geodata from specialised sources,
population and census data from government and administrative data from programs which are
useful for company to conduct its operation successfully. There are various secondary data
sources available for managers of Burger King to collect the necessary information which helped
in determining internal and external factors.
These sources are internet searching, collection from censuses, journal paper or
magazines, GPS, remote sensing, km progress report and many more. By collecting information
from these sources management of Burger King make effective report to determine their external
elements which indirectly affect the progress of company (Nam and Bao Tram, 2021). The
managers take tax information from tax report of census to determine their tax rate and amount
to be paid. They collect information from internet to determine economic conditions of many
country for their business expansion. They gathered information from magazines about recent
consumer trends to improve the quality of their product and services for maximum profit and
customer base.
CONCLUSION
From the above information, it is concluded that to analyse the business environment
properly, the manager of any company can improve the overall performance of business
activities. By using PESTEL analytical tool the managers determines their micro or macro
factors which influence the profitability and productivity of company. By using SWOT analysis
the management can identify their internal strengths and weaknesses as well as external
opportunities or threats for future growth. For this, they get informations from secondary data
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sources. The various sources are magazines, km progress report, internet, government census and
many more which are useful for managers to collect the necessary information easily.
Recommendation
The management of any company can improve their sales, performance and profitability
by using various analytical tools like porters five forces, VRIO analysis and many more to get
quick information about their working. As well as they solves various issues related to their
internal environment such by motivating employees to providing them better working
environment and training for best performance. By using advance and digital technology for
marketing like developing online website to attract more customers globally. The company also
develop their business online and provide home delivery services to increase customer base and
profitability. To make innovative product design they can solve problems related to product and
increase sales of the company.
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REFERENCES
Books and journals
Berman, S. and Dalzell-Payne, P., 2018. The interaction of strategy and technology in an era of
business re-invention. Strategy & Leadership.
Gao, P. and Li, J., 2020. Understanding sustainable business model: A framework and a case
study of the bike-sharing industry. Journal of cleaner production. 267. p.122229.
Ghosh, S. and Rajan, J., 2019. The business case for SDGs: An analysis of inclusive business
models in emerging economies. International Journal of Sustainable Development &
World Ecology. 26(4). pp.344-353.
Ivanovich, K.K., 2020. About some questions of classification of institutional conditions
determining the structure of doing business in Uzbekistan. South Asian Journal of
Marketing & Management Research. 10(5). pp.17-28.
Milani, F., 2019. Digital business analysis. Springer International Publishing.
Nag, T. and Chatterjee, C., 2018. Factors influencing firm’s local business environment in home
country context: exploring evidences from firm surveys in India and China. Journal of
Indian Business Research.
Nam, V.H. and Bao Tram, H., 2021. Business environment and innovation persistence: The case
of small-and medium-sized enterprises in Vietnam. Economics of Innovation and New
Technology. 30(3). pp.239-261.
Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge
Management Research & Practice. 17(1). pp.96-107.
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