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Strategic Planning - Assignment

   

Added on  2020-10-05

12 Pages3796 Words475 Views
STRATEGICPLANNING

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Knowledge and understanding of the most popular strategic options....................................12. Critically analyse the factors affecting implementation of strategies.....................................33. Analyse as well as evaluate the different performance metrics of Burger King.....................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7

INTRODUCTIONStrategic planning is the process in which companies leads identified there vision for thefuture and identify there goals as well as objectives for company. It is the organisationalactivities of management that is used to set priorities, focus on energy and resources, strengthenoperations, ensure that employees as well as other stakeholders are working towards commongoals (Bryson, 2018). It is also assessing as well as adjusting the direction in response to changeenvironment. In this present report, Burger King will be chosen for assessment which is a subsidiarycompany. It is an American global chain of hamburger fast food restaurant. The founder of thecompany is David Edgerton and James Mclamore and was founded in 1935. There are more than15000 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. Thetotal 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 BurgerKing are Hamburgers, Chicken, French Fries, Soft Drinks, Milkshakes, Salads, deserts, hot dogsand breakfast. The parent company is Restaurants Brands International. In this present assessment, the knowledge as well as understanding of the best options ofstrategic option will be demonstrated. Furthermore, there are factors affecting theimplementation of strategic of company will also include in this assignment. MAIN BODY1. Knowledge and understanding of the most popular strategic optionsStrategic option is the creative and alternative action oriented responses to the externalsituation that a company faces. There are many options for company to enter in the globalmarket. When organisation decides to move there business at international level it is veryimportant for company to do strategic planning. These options can also be used by Burger Kingto expand their business or restaurants at global level.There are some most popular options ofentering in global market which is used by Burger King in order to expand there restaurant ininternational market which are as follows-Franchising- It is the option for the company to enter in the international level. BurgerKing also use this option in order to enter in the global market. It means the owner of thebusiness sell the rights or authorities to their companies name, logo as well as model to third1

party retail outlets which is owned by third party (Robson, 2015). Owner of the company calledfranchisor and third part is known as franchisee. Burger King used to expand their businessthrough franchising. Burger King requires an upfront payment of $50,000 as well as admits thatstart-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 manyadvantages 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 theglobal market. It refers to any contract, subcontract or collateral agreement between organisationas well as a contractor along with a subcontractor. In this form, contract party allows thecontractor 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 theowner of the property. In this agreement, all the roles and responsibility for managing the entireactivities of restaurant like Burger King, McDonald's is in the hand of management organisationsuch as providing direction, supervision and expertise through systematic method and process. Joint Venture- It is very common form of international expansion of company. It istemporary association of business between two or more than two person or company for profitwithout forming a permanent partnership, business firm or any other entity of business. It is astrategic 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 JointVenture is also an excellent option for the company. Burger King can also use this option whencompany wants to check or test any market of the country. It can provide new opportunity forcompany to gain sight as well as expertise, company will also access to efficient resources likestaff, technology, tools and equipments, In addition to this, risk of business in also sharedbetween the parties to contract as if company faced any loss than it will be shared by partiesequally or agreed shares. 2

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