Strategic Planning and Performance Metrics

This assignment delves into the world of strategic planning and performance metrics, focusing on the implementation and evaluation of strategies within the context of Burger King. It also examines leadership, human resource management, structural design, and information control systems as crucial factors affecting strategy implementation. Furthermore, it discusses various performance metrics such as balance scorecard, key performance indicators, and critical success factors that enable companies to measure their effectiveness. This study aims to provide a comprehensive understanding of strategic planning and performance evaluation in the context of Burger King.

STRATEGIC
PLANNING

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Knowledge and understanding of the most popular strategic options....................................1
2. Critically analyse the factors affecting implementation of strategies.....................................3
3. Analyse as well as evaluate the different performance metrics of Burger King.....................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic planning is the process in which companies leads identified there vision for the
future and identify there goals as well as objectives for company. It is the organisational
activities of management that is used to set priorities, focus on energy and resources, strengthen
operations, ensure that employees as well as other stakeholders are working towards common
goals (Bryson, 2018). It is also assessing as well as adjusting the direction in response to change
environment.
In this present report, Burger King will be chosen for assessment which is a subsidiary
company. It is an American global chain of hamburger fast food restaurant. The founder of the
company is David Edgerton and James Mclamore and was founded in 1935. There are more than
15000 restaurants that are located across the world. The revenue of company is $4.05 billion.
The operating income of the company is $363.0 million and the net income is $1.912 billion. The
total assert of the Burger King is $18.41 billion. Total equity of the company is $2.912 billion.
About 34,248 employees are employed in the Burger King company. The products of Burger
King are Hamburgers, Chicken, French Fries, Soft Drinks, Milkshakes, Salads, deserts, hot dogs
and breakfast. The parent company is Restaurants Brands International.
In this present assessment, the knowledge as well as understanding of the best options of
strategic option will be demonstrated. Furthermore, there are factors affecting the
implementation of strategic of company will also include in this assignment.
MAIN BODY
1. Knowledge and understanding of the most popular strategic options
Strategic option is the creative and alternative action oriented responses to the external
situation that a company faces. There are many options for company to enter in the global
market. When organisation decides to move there business at international level it is very
important for company to do strategic planning. These options can also be used by Burger King
to expand their business or restaurants at global level. There are some most popular options of
entering in global market which is used by Burger King in order to expand there restaurant in
international market which are as follows-
Franchising- It is the option for the company to enter in the international level. Burger
King also use this option in order to enter in the global market. It means the owner of the
business sell the rights or authorities to their companies name, logo as well as model to third
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party retail outlets which is owned by third party (Robson, 2015). Owner of the company called
franchisor and third part is known as franchisee. Burger King used to expand their business
through franchising. Burger King requires an upfront payment of $50,000 as well as admits that
start-ups cost can run over $50,000. It also included the fee of royalty which is up to 4.5%.
Burger King has adopted franchising option to expand its brand in the international market.
Carrols Corporation is one the largest international franchisee of Burger King. There are many
advantages that Burger King is enjoying which are as follows-
 The risk of failure of business is reduced.
 Market testing is not required because of established share in market.
 Recognised trademark and name of the brand.
 Burger King is competing with the big companies by franchising.
Management Contract- It is also one of the best option for company to enter in the
global market. It refers to any contract, subcontract or collateral agreement between organisation
as well as a contractor along with a subcontractor. In this form, contract party allows the
contractor party to manage its fund as well as organisation. In the industry of restaurant,
management contract is a formal agreement between the management organisation and the
owner of the property. In this agreement, all the roles and responsibility for managing the entire
activities of restaurant like Burger King, McDonald's is in the hand of management organisation
such as providing direction, supervision and expertise through systematic method and process.
Joint Venture- It is very common form of international expansion of company. It is
temporary association of business between two or more than two person or company for profit
without forming a permanent partnership, business firm or any other entity of business. It is a
strategic alliance where two or more than two parties form a partnership in order to share market,
asserts, intellectual property, profit and ideas or knowledge (Wolf and Floyd, 2017). Generally,
Burger King does not use this option for expanding there business in the global market. But Joint
Venture is also an excellent option for the company. Burger King can also use this option when
company wants to check or test any market of the country. It can provide new opportunity for
company to gain sight as well as expertise, company will also access to efficient resources like
staff, technology, tools and equipments, In addition to this, risk of business in also shared
between the parties to contract as if company faced any loss than it will be shared by parties
equally or agreed shares.
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Merger and Acquisition- It is also one of the most popular option to expand the business
in the international market. Merger and acquisition is the consolidation of organisation through
several types of financial transaction. There are numerous various transactions like merger,
acquisition, tender offers, buying of asserts, consolidation as well as merger and acquisitions.
Merger and Acquisition are two different terms. In merger, two organisation come together and
make a new organisation usually by a new logo and name. On the other hand, acquisition one
organisation takeover the another company, generally, small or medium scale companies are
takeover by big companies. Burger King is a subsidiary company which is owned and control by
Insta-Burger King. It is chain of restaurant that faced huge crises of finance in 1954, so they
decided to purchase the asserts and take over two franchises David Edgerton and James
Mclamore and gave the new name Burger King. Thus, this is the example of merger and
acquisition (Bryson, 2017). The actual concept of merger and acquisition is 1+1 makes three.
This is one of the best option for Burger King to expand there business across the world as by
choosing this option company can get quality of staff.
2. Critically analyse the factors affecting implementation of strategies
There are various factors that affects the implementation of strategies of expanding
company in global market. There are some factors that potentially affects the entire procedure by
which strategic plans are planned of expanding company in global market. In implementing the
strategies in the functions and operation's of businesses. Burger King also planned different
strategies like marketing strategies, change management, international expansion, changing
designing and layouts of restaurants, changing of theme of restaurant or menu card etc. In
addition to this Burger King is planning for expanding company in global market and there are
many other external factors that influence company. These strategies are planned by top
management of Burger King which are implemented with the help of organisation people and
style of management. Here are some factors that affects in the implementing strategies are as
follows-
Leadership- This is the most essential function of management that assist organisation in
order to maximize the efficiency as well as to achieve the goals of company as well as
implementing strategies of expanding company in global market. Without leader it is not
possible to reach the desire goals of company. In Burger King the leader are very skilled as well
as knowledgable person, there leadership style are also very integrated with the organisational
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goals. Leadership style is a practice to designed the behaviour of company along with personal
interest in pursuit of the desired aims and objectives. The guidance as well as direction of leaders
is very essential in order to implement any strategies of expanding company in global market of
Burger King through franchising. The most preferable style of leadership in communicating and
implementing planed strategies of restaurants is democratic leadership style (Booth, 2016).
They initiate the actions in practical form, they motivate people, they create confidence
among employees, they make coordination in between employees expectations and desired goals
of company. They used to encourage the engagement of all employees either lower or upper in
decision making so that they feel values and does not resist in implementing any strategies. They
will get support from the employees with the help of this leadership style. In Burger King, there
are multiple layers of leaders which all are performing there roles and responsibilities in
systematic manner and this is the reason why leadership is the key of implementing all strategies
of expanding company in global market without any interruptions.
Structural Design- There are several factors that affects the structure of organisation
such as size, life, strategies, technology and environment of organisation in forming of complete
organisation. There is a great relationship between organisational structure and design as if the
size, life, strategies, technology and environment of organisation is efficient and attractive than
automatically the organisational structure is better. The structural design of Burger King is well
defined which help them to achieve the goals and objectives of Burger King. Organisational
structure and design plays a great role in implementing of all strategies of expanding company in
global market within organisation. The structure of compensation of jobs as well as the roles and
responsibilities of each person employed in Burger King are well defined (Dibrell, Craig and
Neubaum, 2014). The most attractive feature of the structure design of Burger King is that they
have fixed the structure last, not the first.
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Human Resources- Human resource is the heart of organisation. It is department of
crucial elements of the well-being of employee's in the company. In the implementing the any
strategies within the company human resource plays the great role. It is fact that without this
department it is not possible to achieve the organisational goals and objectives. The human
resource department of Burger King is also very advance and well qualified and this is the result
of having skilled workforce within organisation. In implementing the all strategies planned by
top management of company, HR drive to implement this strategy. They also leap the hurdles of
change. The recruitment and selection process at Burger King is also very advance as they follow
three tires, four panels of interviews for selecting employees so that company can maintain as
well as enhance its brand name in other countries. In addition to this, the rewards as well as
incentives set by HR of Burger King are also very motivates and encouraging and this is the
proven way of implementation of strategies of expanding company in global market.
Information and Control System- Information and control system is the most important
system of organisation as it helps company to serve customers in a designated way. This system
is also used in Burger King in order to measure the performance of various resources of company
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Illustration 1: Organizational Chart of Burger King

such as physical, human, financial etc. in order to serve the customers in efficient manner. With
the help of this system, company can implement all the strategies of expanding company in
global market effectively as this system will first measure the actual performance and implement
the strategy and after some time, thi system compares the actual performance with standard
performance (Tikhomirov and Frenkel, 2017). This system is very helpful for Burger King when
they plan to expand there business in any other country because by this system they will easily
obtain the special reports such as performance of management, employees etc.
3. Analyse as well as evaluate the different performance metrics of Burger King.
Performance metrics is most important element of the business. It measures the key
organisational activities, behaviour as well as performance. There are many tools or techniques
available in order to analyse as well as measure the performance of company. Burger King also
used these techniques and tools to measure the performance. Here are some tools and techniques
for measuring the performance are discussed which are as follows-
Critical Success Factors (CSFs)- It means to the particular activities, process or areas
that company depends on its continued survival. Critical success factors are differed to each and
every companies and reflect the present conditions and situations of business as well as future
goals. It plays a crucial role in measuring the performance of organisation in a strategic way.
There are limited number of key variables that have incredible impact on how successfully as
well as effectively a company meet its goals and objectives. In order to achieve the desired goals
and objectives, it is very important that company should perform the activities which are
connected with the success factors (Renz, 2016). For example, in Burger King, the most
successful factor are qualified shelf and there constant taste of the products. This success factor
is at the top level. Thus, these are the factors that are very important for Burger King in order to
achieve the desired goals and unexpected success in the market. Thus, Critical success factors is
also an important tool for Burger King to maintain there name of brand.
Key Performance Indicators (KPI)- This is also one the best tool and technique to
measure the performance as well as success of organisation. It evaluates the value or worth that
presents how effectively an organisation is achieving core objectives of company. Burger King
used this indicator at multiple levels in order to measure the success in executing the target.
There are two levels of Key performance indicator which are high level KPIs and Low level
KPIs (Hübner, Kuhn and Wollenburg, 2016). The role of high level KPIs keep their focus on
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measuring as well as evaluating the entire performance of company whereas low level of KPIs
keep their focus on measuring the performance of employees and processes in departments like
marketing, human resource, sales etc. Key performance indicator is very essential for Burger
King as well as all other companies because it gives a focus on achieving the success of
company. It is fact that the performance of organisation or employees cannot measure the actual
performance and achieve success (Key Performance Indicator (KPI), 2017). Burger King use
this indicator and make correction according to the result at regular basis and in short interval.
They also use this in the decision making activities because it assists to cut down the complex
nature of companies performance. In addition to this, Burger King also use KPIs as a tool of
navigation in order to know the actual path and to understand the present route of company and
make improvement if they are moving in wrong direction (Martin, 2014). Thus, Key
performance indicators is very effective tool for Burger King.
Average daily rate- The average daily rate of a hotel is the average rental income per paid
occupied room in a specific time period. By calculating their ADR, owners within the Burger
king company can compare their performance with other companies, or against their own
historical performance, allowing them to make changes to their revenue management.
Return on investment is a ratio between the net profit and cost of investment resulting
from an investment of some resources. A high ROI means the investment's gains favourably to
its cost. This is one the best tool to check the performance of the company.
Customer satisfaction is a term frequently used in marketing. It is a measure of how
products and services supplied by a company meet or surpass customer expectation. This is also
one the best tool to track the performance of Burger King.
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The Balance Scorecard (BSC)- It is a strategic planning as well as system of
management that company used to communicate their desired goals and objectives. It is also one
of the best tool for performance metrics that is used in strategic management in order to
determine as well as improve several functions and operation's of company (Saveriades, 2014).
Burger King is also using this tool in order to achieve the organisational goals and objectives in
desired manner. It is also used to monitor and make changes if required to execute the aims and
objectives of company (Balance Scorecard (BSC), 2017). With the help of this tool, Burger King
can communicate their mission and vision into physical actions. Thus, balance score card is very
effective for the success of Burger King.
Financial- Revenue per guest and revenue per available room are common financial
metrics found on a hotel Burger King's balanced scorecard. Other financial measures, such as
earnings per share, net income and stock price, also are listed in the financial category.
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Illustration 2: Key Performance Indicator (KPI)
(Source: Key Performance Indicator (KPI), 2017)

Customers- It is metrics that focus on the sentiments of company target market. Customer
retention rates, companies as well as other customers related information are used in the category
of balance score card. The customers of Burger King are highly satisfied.
Internal Business Process-The cost of maintenance, accidents as well as quality metrics
are found in the process of internal business category of the balanced scorecard. These directly
impact net profit and earnings per share. The internal process if Burger King is very effective
and efficient.
CONCLUSION
From the above report, it was identified that strategic planning is very important for the
success of any businesses or company. It is activities of management of company that is used to
set priorities., focus energy and resources, strengthen operations, ensure that employee's
satisfaction. Furthermore, this report also summarized knowledge and understanding of the most
popular strategic options to enter in the international market such as franchising, Joint Venture,
Merger & Acquisition and management contract. Addition to this, this assignment also make
understood about the factors affecting implementation of strategies such as leadership, human
resource, structural design and information & control system. Furthermore, this study also
analyse as well as evaluate the different performance metrics of Burger King such as balance
score card, key performance indicator and critical success factors that help company to measure
the performance in effective way.
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Illustration 3: Balance Scorecard (BSC)
(Source: Balance Scorecard (BSC), 2017)

REFERENCES
Books & Journals
Booth, D., 2016. Strategy Journeys: A Guide to Effective Strategic Planning. Routledge.
Bryson, J. M., 2017. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Dibrell, C., Craig, J. B. and Neubaum, D. O., 2014. Linking the formal strategic planning
process, planning flexibility, and innovativeness to firm performance. Journal of Business
Research, 67(9), pp.2000-2007.
Hübner, A., Kuhn, H. and Wollenburg, J., 2016. Last mile fulfilment and distribution in omni-
channel grocery retailing: A strategic planning framework. International Journal of Retail
& Distribution Management, 44(3), pp.228-247.
Martin, R. L., 2014. The big lie of strategic planning. Harvard business review, 92(1/2), pp.3-8.
Renz, D. O., 2016. The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Robson, W., 2015. Strategic management and information systems. Pearson Higher Ed.
Saveriades, A., 2014. 18 Strategic Planning in National Tourism Organisations: The Case of
Cyprus. European Tourism Planning and Organisation Systems: The EU Member States.
Tikhomirov, B. I. and Frenkel, A. A., 2017. On Unified Socio-Economic Policy and Strategic
Planning. Economic Policy, 4, pp.82-117.
Wolf, C. and Floyd, S. W., 2017. Strategic planning research: Toward a theory-driven
agenda. Journal of Management, 43(6), pp.1754-1788.
Online:
Balance Scorecard (BSC). 2017. [Online]. Available through:
<https://www.toolshero.com/strategy/balanced-scorecard/>.
Key Performance Indicators (KPI). 2017. [Online]. Available
through:<https://www.klipfolio.com/resources/kpi-examples>.
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