Management Economics 2: Analysis of Burger King's Market Structure

MANAGEMENT
ECONOMICS-2

Table of Contents
INTRODUCTION...........................................................................................................................1
Describe the company.................................................................................................................1
Analyse the market......................................................................................................................2
Different market structure...........................................................................................................5
Suggestions for the company operate in a different market structure and the government
interventions................................................................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Economy is the system in the specific area which understand the nature and the level of
economics activities in the particular area. Economics is the study of production, consumption,
and transfer of wealth in the market(Wang and et. al., 2020). This is the main consideration of
the business to earn the higher profits so that they can be the market leader but owning to the
facts that resources are limited and ever films wants to establish in the market. For this, they are
apply management theories so that they can solve their problem and be the effective decision
taker in the marketplace. Market is depends upon the demand and supply which execute the
overall functionality. Burger king is the chosen organisation for this report, It is the American
fast food chain of restaurant which is founded in 1953 and their headquarter is in Miami-Dade
country, Florida. This report will cover the different type of market structure which is being used
by the companies and also explain the characteristics of the market structure which is being used
by the company at its inception.
Describe the company
Burger king is the leading company which is the multinational fact-food chain which is
serving their services globally. The company is operating their business in 17, 796 locations and
operating 40 subsidiaries across the world (Shoukat and et. al., 2020). They are opening their
business on larger scale and giving various job opportunities to the society. They are working by
giving franchises in the world so that they can be the market leader. They have expanded their
menu from basic offering of burgers, sodas and milkshake to a larger and diversified product to
the menu.
They have stared with Insta-Burger King, A restaurant chain which had faced financial
difficulties in 1954 ans their two franchisees David Edgerton and James McLamore have
purchased the company and they renamed it “ Burger King”. Over the period of time, company
have changed their hands for their long term sustainability. They are offering wide range of
product which includes Whopper, Big King, Premium Burger, Speciality Sandwiches,
milkshakes and Rodeo sandwiches and many more. Domino's and subway are the leading rivals
of the Burger King so they always try to offer the product which can meet the changing demands
of their potential customers.
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Analyse the market
Market is the place where buyer an seller meet in order to make sell or purchase their
goods and services with the motive of generating profits for the seller sand buying desire goods
for the buyer(Wang and et. al., 2019). There are various market structure which is being used by
the business which results inn meeting the needs and wants of their potential customers. In
context to Burger King, they have got failed many time as they was financial crises but over a
period of time they are the market leader by conducting effective market research in order to full
fill the needs and wants of their potential customers.
They have targeted the people aged between 18-35 who use to eat fast food 9 to 16 times
per month and they are just 18% of the total customer base of Burger King. Customers for the
restaurant are the individual who wants to enjoy safe and tasty fast food. They are having all
group of people in the developing nations who is preferring the fast food.
They are approaching to the people who love to have fast food with proper hygiene and
in pleasant environment. This helps the Burger King to establish the good brand image across the
world by meeting the needs and desire of the individual.
Various type of market structure
Market structure is refers to how different industries is being classified or differentiated
based on their degree and nature of the products and services. It is also divided on the basis of
number of buyer and seller, behaviour that impact the particular majority of customers. This
helps them to sustain in the business for long period of time by using appropriate strategy for the
growth. Various type of market structure are explained as follows:
 Perfect competition market: It is a type of market structure where large number of
buyer sand seller is taking place and there is no single firm which is having control over
the market so all the firm are offering homogeneous products as they are the price taker
according to the emerging competition in the market. There is free entry and exist of firm
due to no restriction in the marketplace. Such business is working on their own principles
as they are free to launch the wide range of products. There is no barrier for the buyer and
seller so that they can make better choice according to their taste and preferences and also
based on their purchasing power.
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