Business Health Checkup Report: Burger King Analysis and Strategies

This report conducts a comprehensive business health checkup on Burger King, evaluating its internal and external aspects to identify potential shortcomings and suggest strategies for growth. The introduction provides an overview of the importance of business health checks in a dynamic environment. The report analyzes Burger King's objectives, including short-term and long-term goals, and examines factors impacting the business using PESTLE, Porter's Five Forces, and SWOT analyses. It identifies opportunities and threats in the political, economic, socio-cultural, technological, legal, and environmental environments. The report then proposes improvements using the Ansoff Matrix, focusing on market penetration, market development, and product development strategies. Furthermore, it assesses the effectiveness of Burger King's operations, developing plans for business enhancement and evaluating the existing skill set of management and employees, along with plans for skill development. The report concludes with a summary of findings and recommendations for Burger King's continued success in the competitive fast-food industry.

BUSINESS HEALTH
CHECK UP
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Table of Contents
INTRODUCTION...........................................................................................................................3
AC1.1 Analysis of business objectives.......................................................................................3
AC1.2 Explain factors that impact on the business.....................................................................4
AC1.3 Potential improvements to company................................................................................7
M1 Objectives meet the ‘SMART’ criteria.................................................................................8
D1 Ansoff Matrix contributes to business growth.......................................................................8
AC2.1 Review of effectiveness of company...............................................................................9
AC2.2: Development of plans to improve business along with justification............................10
M2: Manner in which effectiveness of business areas contribute to growth............................11
D2: Ways in which stipulated plans lead to business improvement.........................................11
AC3.1: Evaluation of existing management and staff skills.....................................................11
AC3.2 Plans for skill development of staff as well as management.........................................13
M3 Impact of existing skills and experience of workforce and management upon company. .13
D3 Critique of methods of skill development............................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
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INTRODUCTION
A business entity operates in a dynamic and complex environment which constantly presents
opportunities and challenges for the corporation to sustain and grow in market place. In this
regard, it is essential that management of an organisation carries out business health check-up
which is basically the assessment of the internal and external aspects of a company. This is
essential because it helps the business entity to identify the potential shortcomings and thereby
stipulate policies and strategies in order to deal with it (Shermon and Gilmour, 2016). The
present report is conducted on Burger King which is a chain consisting of hamburger fast food
restaurants having its headquarters in Florida, Unites States. This assignment consists of
objectives of company along with internal and external factors that impact on entity. Also, it
constitutes proposed improvements and assessment of business effectiveness. Besides this,
development plan for enhancement of company is included. Lastly, evaluation of existing skill
set of management and employees together with plan for its improvement is given.
AC1.1 Analysis of business objectives
Burger King is one of the most well renowned and reputed fast food companies having its
main revenue generation within the confines of USA. This organisation has its outlets spread
across different parts of the globe.
History: It was founded in the year 1953 under the name of Insta-Burger King. After the
financial adversities of this organisation and the purchase of this company by two of its
franchisees, it was renamed as ‘Burger King’. Over the course of time, this entity expanded its
offerings and started selling French fries, soda, milkshake and whopper. In the period of 2002-
10, Burger King massively targeted males belonging to age group of 18-34. From 2011, entity
shifted from male oriented menu to incorporation of new items that cater to the needs of all age
groups and genders (Saaty and Vargas, 2013). Reformulation of packaging was done in this year
aimed at enhancing the market positioning of company. With the help of franchising model,
Burger King presently has its presence in 100 nations with approximately 18000 outlets, out of
which 50% are situated within US.
Short-term Objectives: The short term objectives of Burger King are to meet the needs
and demands of consumers as well as to maintain quality of offerings in order to attain maximum
satisfaction from people.
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Long-term Objectives: The long term objectives of Burger King are to enhance the
revenues and profitability of entity by a fair margin. These have been stipulated with an aim to
enhance the share of corporation in global market place.
AC1.2 Explain factors that impact on the business
Business environment is constantly evolving owing to which there are regular changes that
take place within the organisational premises. In this regard, management team of Burger King
has conducted environmental analysis by making use of PESTLE, Porter Five Forces and
SWOT.
PESTLE
This framework is taken into use by a company to acknowledge the impact that macro-
environmental factors upon the business processes. Thus, the manager of Burger King has
conducted this analysis so as to gain knowledge of the opportunities and threats that it has for
business.
Political: It constitutes aspects such as taxation, foreign trade, environmental laws and
policies stipulated by government. The strong and stable political state of United Kingdom holds
opportunity for Burger King to effectively conduct its operations by gathering information about
such laws and then carrying out activities in the confines of those regulations (Shermon and
Gilmour, 2016). However, adverse situations like political instability, terrorist attacks or a
sudden change in policy can create adversities for the entity. Burger King should maintain an
action plan to optimally deal with this.
Economic: This consists of elements such as savings, interest, foreign exchange and
inflation rates. The strong economic conditions of United Kingdom presents opportunity for
Burger King to make use of country’s raw materials, infrastructure, labour force,
communication, logistics and supply chain facilities to adequately cater to the expectations and
wants of customers. However, BREXIT is one of the most prominent and emerging threats for
all the sectors of UK, thus posing risk to sustainability of this fast food company. To deal with
the fluctuations in purchasing power of buyers, entity should lower down its prices at the time of
economic recession.
Socio-cultural: This comprises of the changing customer trends, lifestyles and beliefs.
Burger king sells fast food in accordance with the emerging trends and expectations of
population. This provides assistance to entity in effectively meeting the demands of consumers
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and enhancing its sales and profits in market place. However, there is always a risk that a
consumer trend can be anticipated by competitors before Burger King. In this relation, enterprise
should constantly conduct market research to anticipate the probable opportunities that can aid
the organisation in inflating its market positioning.
Technological: A number of advancements take place in business environment which
presents opportunities for a company to attain competitive advantage in market place. In this
regard, Burger King makes use of latest processes and techniques in order to ensure least
wastage and maximum efficiency within the premises. However, technological advancements
can be used by rival firms also to gain an edge over Burger King. Thus, the entity should
constantly update its offerings and processes in alignment with the latest trends prevailing in
hospitality sector.
Legal: This comprises of laws and legislations stipulated to keep a check upon the
activities and processes of company. In this regard, Burger King abides by laws such as health
and safety, employment, security, environment to get saved from legal adversities (Saaty and
Vargas, 2013). Further, the non-compliance with any of the hospitality laws may lead to
emergence to legal consequences for entity. Thus, Burger King should operate in the interest of
law.
Environmental: Owing to the constant environmental triggers, companies in the modern
era operate in the interest of society and environment. In this relation, Burger King makes use of
reusable and recyclable packaging material so as to give its contribution in CSR. However, there
is a probability that the sustainability of entity may get hampered in case of acting against the
favour of nature.
Porter Five Force Analysis
This framework is used to gain knowledge of the extent of rivalry prevailing within any
business sector. In this regard, Burger King has made use of this analysis to carry out a health
check-up and thereby devise effective business strategies to gain a competitive advantage.
Bargaining power of buyer: The extent of this power within hospitality industry is found
to be high as customers have huge expectations and want company’s offerings to be aligned with
them. Besides this, customers want discounts, offers, gift vouchers and other lucrative offers.
This enhances their bargaining power and put pressure upon Burger King to offer unique and
tasty food products.
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Bargaining power of supplier: This power is ascertained to be low for hospitality sector
as a large number of substitutes are present in market place which creates pressure upon
suppliers to keep a check upon pricing and quality. In this regard, to enhance this power, Burger
King introduces various discounts and offers so that customers do not shift to other brands and
stay loyal to them.
Threat of new entrants: Power of this force with respect to hospitality industry is found
to be low. The reason behind this is the huge capital that is requirement that is needed to gain
access into food & beverage sub-sector. This creates opportunities for Burger King to provide its
unique offerings to customers and gain satisfaction from them in order to enhance its market
share.
Threat of substitute goods: A large number of substitute products and brands are present within
hospitality sector that makes this threat to be high. For Burger King, the substitute brands are
Subway, McDonald’s, KFC which enhances the competition for this company and drives it to
introduce new and innovative products in a timely manner (Robson and et. al., 2017).
Industry rivalry: Rivalry within the hospitality sector is found to be high as numerous
entities operating in the same sub-sector are present in it. In this regard, Burger King faces the
risk of industry rivalry as its offerings coincide with the goods of rivals like McDonald’s,
Subway, Pizza Hut, Domino’s, KFC etc. This put pressure upon Burger King to differentiate its
food items from competitors and thus gain a strategic edge in market place.
SWOT
STRENGTHS WEAKNESSES
 Immensely popular brand possessing
loyal customer base
 Product differentiation
 The growth model of company is not
really capital intensive and thus helps in
attainment of rapid growth
 Over 30000 employees working
together to fulfil the demands of
customers
 Global presence in over 100 nations.
 High fat and calorie containing food
does not attract health conscious
people
 Huge competition owing to presence
of large number of rivals
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OPPORTUNITIES THREATS
 Expansion of online deliveries can
prove to be a fruitful move.
 Gain access to new markets.
 Focus on robust marketing as well as
provision of discounts and offers.
 Product improvement as per the needs
and demands of customers can assist in
increment of global market share.
 Threat from rivals like Domino’s,
McDonald’s, Subway, KFC etc.
 Increasing health concerns pose threat
for company.
AC1.3 Potential improvements to company
It is essential for an organisation to constantly bring about improvements within the entity
so as to ensure its growth and sustainability for a long term. In this regard, Ansoff growth matrix
is strategic marketing framework that is used by companies for improving their business
performance effectively. The framework includes certain growth strategies that helps the
company in growing their business with effective performance. With reference to Burger King, it
has been analysed that the company is planning to improve its business operations for the
purpose of growth. In this regard, its management team have conducted an analysis of Ansoff
matrix so that right strategy can be adopted by them with which they can grow faster. All
strategy of this framework for Burger King are stated as below:
Market Penetration: This strategy emphasises on providing existing product within the existing
area. With reference to Burger King, the company can easily grow faster by identifying new
customer within the existing market for the same product. It can be said that adoption of this
strategy is beneficial for the company as they only have to place certain efforts so that customers
can be attained by the company (Porter and Tanner, 2012).
Market Development: This growth focuses on introducing existing product in new
geographical location so that they can grow faster in less period of time. In context of Burger
King, the company is required to focus on finding new geographical location for their growth.
This growth strategy will help Burger King in approaching new customers which are available at
new market place. This leads to enhancement of sales performance of Burger King which also
increases its profitability.
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Product Development: This strategy clearly states that if business organisation wants to
improve it is business growth then they are required to enhance their product portfolio at the
same location. With reference to Burger King, it can be said that this company can enhance
variety of food items in order to attract maximum number of customers. Huge variety in food
items gives reason to customers to buy the product from the same restaurant again and again. As
a result, it enhances number of customers for food items of Burger King which increases their
sales performance as well as productivity in effective manner.
Diversification: This growth strategy states that business is required to introduce
completely new product at new marketplace for growing their business in quick manner. With
reference to Burger King, it can be said that it is essential for this company to not go for this
strategy as it is quite riskier for them to investment huge capital in the new market place where
they are not even aware of the customers (Philbin and Kennedy, 2014). Therefore, there are
probable chances Burger King might not succeed at new geographical location with new product.
On the basis of above made discussion on different growth strategies of Ansoff Matrix, it
has been analysed that product development is considered as the feasible growth strategy for
Burger King, as management of this company can easily influence customers by providing their
huge variety in food product according to their expectation in existing location. With this
strategy sales performance of this company can be easily improved in effective manner.
M1 Objectives meet the ‘SMART’ criteria
Every business organisation stipulates objectives in a quantitative manner so as to ensure
that the measurement of performance can be done to find out the variances. In this regard, the
objectives of Burger King have also been set in a form that it meets the SMART criteria, as
follows:-
“To enhance the profits of company by 15% by the end of 1 year by making use of robust
promotion”
“To raise the sales of entity by 9% by the end of 6 months by making use of social media
marketing”
D1 Ansoff Matrix contributes to business growth
It has been analysed that all the elements of Ansoff Matrix have effectively contributed in
the improvement of business performance of Burger King. It can be said that usage of these
elements have allowed Burger King in identifying new tactics and strategies with which they can
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improve their business performance in positive manner. It can be further said that by adopting
product development strategy, this company can easily influence interest of customers as they
are getting vast variety in food items. This positive support of customers will directly increase
sales performance of Burger King in existing market place. As a result, the profitability of the
company also increases in positive manner.
AC2.1 Review of effectiveness of company
In reference to business organisation effectiveness refers to quality of outcomes which are being
derived from attainment of goals and objectives by employees and managers. It is important to
maintain effectiveness at workplace for the business organisation as they are concerned with
producing consistent results. Therefore, effectiveness of various business operations at Burger
King has been discussed below:-
Products/Services- There are different categories of products and services which are being
offered by Burger King at international and domestic level. Burger King renders luxury,
signature, modern essentials and lifestyle or collection services to its customers whereas products
offered are hotels and resorts inclusive of basic amenities such as bed, pillow, bath, lifestyle and
many more. The products and services which are being supplied to customers are of good
quality. Also, have high satisfaction level with fulfilled expectations (Laws, 2015). The superiors
on regular intervals review services which are being rendered by their employees. Also, keep
proper check on effectiveness and quality of products as these are very crucial aspects through
which growth along with profitability and productivity is maintained.
Marketing- This is very essential for long term growth and success for Burger King.
Management here have good sense of marketing with proper marketing strategies. To maintain
effectiveness proper marketing tools and techniques are to be used for promotion and increase of
sales. Effectiveness can be maintained by periodic review of marketing mix components
Sales- Vision regarding sales of Burger King is very much clear and precise which helps to
generate good profits and results. The sales function of Burger King is very much effective as
they focus on unique needs and develop products as per their specification and expectations. To
maintain effectiveness (Joshi and Cheung, Brocade Communications Systems LLC, 2015).
Burger King accomplish their vision by placing special focus on attracting, retaining and
developing value for their customers.
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Finance- This is regarded to be the life blood for every business organisation. It is also
connected with other function of organisation. The finance manager should have knowledge to
effectively utilise and allocate funds appropriately to maintain their liquidity and efficiency at
marketplace. The funds are utilised properly if this is not done than effectiveness cannot be
maintained (Hyppönen, Hämäläinen and Reponen, 2015). Also, finance manager as well as
employees of Burger King should mainly emphasis on effective use of funds and finance as there
can be negative impact in terms of increase in debts and losses.
AC2.2: Development of plans to improve business along with justification
Business planning is known as roadmap that provides description regarding products,
services, leadership, staffing, operational model of company. The preparation of business plan
assist organisation to attain goals and objectives which further helps in long term growth and
success. Furthermore, management of Burger King is planning to make improvements in existing
business plan which might be related to make some required changes which are being performed
by employees and managers as well. Some of operational functions are as follows:
Marketing Planning- Business environment is very much complex and dynamic so, it is
crucial to make modifications on periodical basis. Customer is important as they are king in
market for every business organisation so it is requisite to make alteration in business plan. The
marketing strategies should be adopted as per technological developments (Henrich, Hinman and
Killius, Bank of America Corp, 2013). For marketing of products and services of Burger King,
marketing manager can make use of various latest promotional tools and techniques, social
media platforms as this will further assist in analysing about changing needs of customers and
work with motive to fulfil expectations of customers with higher level of satisfaction.
The Organisation’s Financial Management Systems Planning- Finance is backbone
for every business organisation as without proper and effective availability of funds different
operational functions cannot be carried out effectively. If there is inadequacy of funds than
manager has to take appropriate steps regarding changes in their existing business plan with the
objective to arrange funds for organisation (Goins and Pye, 2013). The financial management
structure of Burger King work with objective to allocate funds as per the requirements and
functions which are to performed. The managers of Burger King should make proper allocation
of funds as this is important for maintaining sustainability for longer period of time and
organisation growth.
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Planning The Roles and Responsibilities Of Staff And Management- Business plan
varies from company to company so business organisation are required to concentrate on
planning for authority and responsibility for managers and employees. This is done with
objective to reduce duplication of work and wastage of resources. Proper responsibilities and
authority assist employees to produce effective and efficient results by optimum utilisation of
resources.
Planning Performance Monitoring- Every business organisation should on regular basis
emphasis on performance evaluation of both employees as well as organisation. There should be
monitoring of performance on continuous basis for employees and managers according to set
performance specifications. If any deviations are being identified than with the help of new
business plan necessary steps can be taken (Ghaddar and et. al., 2012). Monitoring of
performance on regular basis helps Burger King to know about efficient and inefficient
performers. Along with this it helps to identify about training and development needs as this will
provide assistance for long term growth and profitability.
M2: Manner in which effectiveness of business areas contribute to growth
Any business organisation is a composite of a number of operational areas that are together
responsible for the growth and success of business. In this regard, areas such as products,
services, processes, planning, marketing, sales and productivity, staffing when enhanced can lead
to adequate development of Burger King. This enhances the scope for company to meet the
needs and requirements of people effectively.
D2: Ways in which stipulated plans lead to business improvement
A business improvement plan is aimed at enhancing the operations and capabilities of
company. When the stipulated plan is executed in the desirable manner, it drives enhancement of
efficiency of operations thereby leading to business improvement. This ensures the achievement
of set goals and objectives in a timely manner.
AC3.1: Evaluation of existing management and staff skills
There are ample of skills required by management of Burger King and their staff members which
are necessary to perform their tasks and roles for achievement of goals (Chang and et. al., 2016).
Some of various skills which are expected by Burger King are listed down below:-
Technical Skills
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These skills are known as capability of individuals and knowledge which are requisite to
attain objectives efficiently. Some of technical skills which are necessary to perform tasks are
discussed below:-
Project Management- For successful completion of project managers and employees
must have knowledge and expertise which is concerned with project. Further helps in completion
of project in given time frame.
Promotional tools and techniques- Every organisation should use different tool and
techniques for promotion of their products and services. Sales managers and executive should
have skills and expertise which are helpful in increasing sales and customers as well.
Software Knowledge- Managers should have skills and technical know-how related to
software which are beneficial for success and growth.
Operational Skills
Operational skills referred to those skills which are essential for performing business
practices effectively and efficiently some of them are as follows:-
Problem Solving- Managers should have ability and knowledge to solve various problems along
with their solution and various alternatives (Arntz-Gray, 2016).
Finance Management- Finance is important for every business organisation so managers
should have adequate skills and experience of managing funds effectively and efficiently.
Managerial Skills
Management of organisation is important as ineffective management leads to loss and
decrease in level of performance. These skills are very much essential for success and long term
growth. Some of them are as follows:-
Decision making skills– Every managers and employee must have effective decision
making skills because sustainability is based on efficiency of decisions.
Conceptual skills- These skills mean that employees should have ability to understand,
analyse and find out solutions to problems with alternatives.
Interpersonal skills– Under this skill, manager is competent enough to have proper and
complete interaction with their superiors and customers.
From above mentioned technical, managerial and operational skills it has been identified
that employees of Burger King are highly skilled and competent to perform their roles and
responsibilities effectively and efficiently. The complete skill set helps Burger King to entertain
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