Burger King: Business Essentials Extended Project Report - 2017

This report provides a comprehensive analysis of Burger King's competitive strategies and market positioning within the fast-food industry. It examines various aspects, including supply chain management, pricing strategies, brand value, marketing efforts, and human resources practices. The report delves into how Burger King has adapted to market changes, highlighting its generic competitive strategies of cost leadership and broad differentiation, along with its intensive growth strategies such as market penetration, market development, and product development. Furthermore, it discusses Burger King's approach to maintaining its brand value through product innovation and high-quality service. The report concludes with an assessment of Burger King's current market position, recent developments, and recommendations for future success, emphasizing the need for continued innovation, expansion, and enhanced customer service to maintain a competitive edge.

Portfolio of Burger King

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Competition is the main aspect that is needed to be considered and by which an
additional advantage can be earned by any organisation (Grant, 2016). Market position
is the establishment of its brand in the competitive market in order to capture the
customers. Burger king which deals in fast food is second largest chain in the world. In
this report it will be identified that how burger king maintains its position and how it had
changed in the past and what are all those aspects that it is required to take into
consideration in this context will also be discussed.
TASK
In the changing environment every organisation is required to face competition
and same is the case with Burger king (Boje, Haley and Saylors, 2016). In order to deal
with this it is important that the relevant market is identified which can be done with the
help of segmentation. It is required to maintain its position in the market and for that
various strategies will be required to be followed. It is needed to understand the
psychology of the consumers so that can provide services according to that. The main
market that is covered by it includes the young adult market and keeps its focus on
serving the food that is of high quality with great taste and that too at affordable prices.
It offers its customer with the service in which they can get the sandwiches according to
their tastes and together with this it also provides many more varieties by keeping in
mind the choices of the customers. It is undertaking all these activities to gain
advantage of competition over other competitors as quality is the main aspect for this
purpose by which advantage can be achieved (Min and Min, 2011). For the
maintenance of position in the competitive market there are various aspects that are
relevant and some of them are described below :
Supply chain
In this it is taken into care that the suppliers that are chosen should be such who
will be able to meet the demands of it and also will follow the policies that are specified
by the corporation. There are various standards that are set for the whole industry but in
order to gain additional benefit it will require that a stricter monitoring should be done by
the suppliers. For ensuring that the quality is up to the mark various samples will be
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send to the laboratory which will evaluate it and give its opinion. After that all the
finished products are tested and transport facilities are also approved. As it is important
that food should be kept at correct temperature so it is ensured by burger king that there
is a electronic temperature monitoring system employed at all the centres from where
distribution is done.
Welfare policies :
in order to ensure the safety of the customers in relation to the agricultural
materials that are used by it in the production process (Yang, 2012). There are basically
two policies that are used by it which includes animal welfare program and antibiotics
policy. Pork and eggs are purchased crate free categories and not from those who are
using the crates of sow gestation and all this is undertaken under the Animal welfare
program. Livestock is maintained in an appropriate manner by using Antibiotics policy
and by both of these additional benefits will be made.
Training program :
In order to achieve the advantage of competition it is required that best quality of
product ans services are maintained. For this purpose training programs are undertaken
in which the staff that is responsible for making products is trained in regard to the new
ingredients that can be used (Beard, 2010). Only maintaining the quality of food is not
enough so it is needed that training should also be provided to the employees who will
than be able to provide better services and will behave in a good manner with the
customers so that they can be retained. It is also ensured that the employees should
have the required amount of skills and competence so that they can solve the problems
that arise in the functioning in an efficient manner. In order to motivate employees
burger king uses the technique of providing rewards in which winners are announced on
the basis of certain criteria that are fixed and by this employees will feel good and will
work by using their whole potential and this will finally lead to improvement in quality
which is must in competitive environment.
Generic competitive strategy :
In order to achieve the market position there are two strategy that are followed by
burger king which are cost leadership and broad differentiation (Drezner, 2011). The
first strategy is cost leadership which is achieved by burger king through the
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minimization of the cost by standardizing the processes. The main objective for which
this strategy is used is to reduce the cost of the product as by this the price will also be
reduced and can be offered to customers at lower rate in comparison to others. By this
it will be able make its market base strong. The other policy that is used is broad
differentiation in which focus is given on providing something new to the customers
which is not provided by anyone else as by this more customers will be attracted as
they will receive something which is new for them. The main objective of this policy is to
enter the new market where there is lot of competition and take the advantage of it by
attaining new customers.
Intensive growth strategies :
There are various growth strategy that are followed by Burger king so that it can
enhance its market position and gain the advantage of competition (Min and Min, 2013).
Some of them are described below :
Market Penetration : - The main objective of this strategy is to increase its level of
revenue from the current market and customers where the operations are conducted in
the existing situation (French and Smith, 2013). By using this burger king expands its
franchise network and this done by opening of the new branches by which the market
share will increase. By the use of generic strategy in this the features of the product are
highlighted which will help in attracting more customers and expansing the business.
Market Development : - in this strategy the main focus is provided to the entry into the
new markets or segments. Burger king use this strategy by developing its market and
this is done by opening of the new branches in the market where it is not operating
currently. This strategy is not of much benefit for the corporation as it has its stores in
most of the market in present situation. In this low prices are provided to the customers
so that they are attracted towards those products.
Product Development : these is the least significant strategy and by this new products
are launched by which growth of company will be achieved. Burger king uses this
strategy by introducing new products but it do it at a slow pace but in this the main thing
that is given importance is the innovation that is used in making of the product and than
those unique features are highlighted which will not be present in the product made by
the competitor.
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Pricing
The pricing strategy of burger king is mainly related to to cost leadership which
aims at reducing the cost of the product and thereby reducing the price. It is needed that
to compete in the market appropriate price is required to be fixed. There are two main
policies that are used by it which are market oriented pricing strategy in which the price
is decided in the basis of the market conditions that are currently prevailing and for this
purpose the demand and supply analysis together with competitors price is done. The
other strategy that is used is the bundle strategy in which price is decided for a bundle
of items and not for any individual product (Jordanoska and Polenakovikj, 2013). The
price that is set is more affordable for the customer than the price that they will be
required to pay if those items are purchased on individual basis. The price will be
decided at that level on which the customers can afford it and should be maintained at
that level so that more of the customers can be brought towards it which will increase
the revenue of the company.
Brand value
The brand value of burger king is fantastic and this is because it provides the
best products in the world which helps in maintaining its brand value. Due to the brand
image it is able to penetrate the various markets and maintain itself in the situation of
competition. In comparison to the other competitors it has maintained its brand and is
providing new, innovative and best quality products to the customer which helps it to
survive and gain the advantage of competitive market.
All these are the aspects by which the manner in which the burger king has gained the
advantage in the competitive world has been identified. With the increasing competition
the growth level has also increased. It has been able to establish its position in the
market by providing the customers with different and unique products and services that
are not provided by the other competitors (Gayle and Luo, 2015). It has been found that
the market share of burger king has increased in recent years. It has been able to make
its position strong and this is due to the reason that the number of customers visiting the
stores have increased by which the sales of the company has also risen. This has been
achieved by following methods such as large number of franchises have been opened,
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kids club has been launched by which it was able to enter into the new market and also
the share has increased.
Although there is an increase in the position of burger king but than also there is lot of
scope for further development which can be achieved. It can launch the new marketing
campaign by which the demands of the customers will be identified. It is required
because in the current market the taste and demand keeps on changing so it is
necessary that they are met in order to maintain its position. It is needed that stability
should be maintained in case of leadership as by that the clear vision will be identified in
relation to the coming years. It can expand its business in the other parts of the world as
only operating in the single market will nor render all the achievements. There is a lot of
competition in the market so to deal with that it will be required that share in the market
should be increased which can be only achieved by either entering the new market or
by launching the new products in the existing position. It can enhance the services that
are provided by it to the customers by providing them with better facilities. Online
ordering system should be given more importance and also the home delivery system
should be made more efficient by which the level of customer satisfaction will increase
thereby making it possible for the company to retain its customers.
CONCLUSION
From the above mentioned report it can be concluded that in the competitive
market there are various aspects that are required to be considered in order to maintain
its position in the market and all those are made clear with the help 9of above
discussion in respect of burger king. It has been identified that the company is using
many policies and strategies which have proved to be beneficial for it in securing the
market. Burger king is different from others as this provide such services and items
which are nor provided by any other competitor and all those are discussed in above
mentioned report.
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REFERENCES
Books and journals
Beard, F., 2010. Comparative advertising wars: An historical analysis of their causes
and consequences. Journal of Macromarketing. 30(3). pp.270-286.
Boje, D. M., Haley, U. C and Saylors, R., 2016. Antenarratives of organizational change:
The microstoria of Burger King’s storytelling in space, time and strategic
context. human relations. 69(2). pp.391-418.
Drezner, T., 2011. Cannibalization in a competitive environment. International Regional
Science Review. 34(3). pp.306-322.
French, A and Smith, G., 2013. Measuring brand association strength: a consumer
based brand equity approach. European Journal of Marketing. 47(8).
pp.1356-1367.
Gayle, P. G and Luo, Z., 2015. Choosing between Order‐of‐Entry Assumptions in
Empirical Entry Models: Evidence from Competition between Burger King
and McDonald's Restaurant Outlets. The Journal of Industrial
Economics. 63(1). pp.129-151.
Grant, R. M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley
& Sons.
Jordanoska, V and Polenakovikj, R., 2013. Franchising as a form for starting a small
business, presence and opportunities for development in Republic of
Macedonia. Mechanical Engineering Scientific Journal (Skopje). 31(1-2).
pp.85-89.
Min, H and Min, H., 2011. Benchmarking the service quality of fast-food restaurant
franchises in the USA: A longitudinal study. Benchmarking: An
International Journal. 18(2). pp.282-300.
Min, H and Min, H., 2013. Cross-cultural competitive benchmarking of fast-food
restaurant services. Benchmarking: An International Journal. 20(2).
pp.212-232.
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Yang, N., 2012. Burger King and McDonald’s: Where’s the Spillover?. International
Journal of the Economics of Business. 19(2). pp.255-281.
Online
Burger King's secret to becoming the most successful fast food chain. 2017. [Online].
Available through :<http://www.businessinsider.in/Burger-Kings-secret-to-
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Restaurant Brands International: A Short SWOT Analysis. 2017. [Online]. Available
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