Analyzing the Global Business Environment: Burger King's Strategy

This report provides an overview of the global business environment (GBE) as it pertains to Burger King, a fast-food restaurant chain. It explores the underlying drivers of change within the restaurant industry in the UK, emphasizing the dominance of international brands and the influence of consumer trends. A PESTEL analysis is conducted, examining the political, economic, social, technological, environmental, and legal factors impacting Burger King's operations. The analysis covers political stability, government support for e-commerce, economic indicators, social diversity, health consciousness, technological advancements, environmental awareness, and relevant legal frameworks. The report then outlines Burger King's strategic responses to these environmental factors, including its global expansion, e-commerce initiatives, product innovation, sustainability efforts, and compliance with legal regulations. The conclusion summarizes the impact of governmental freedom, political stability, social and environmental considerations, and technological factors on Burger King's business.

Running head: GLOBAL BUSINESS ENVIRONMENT
GLOBAL BUSINESS ENVIRONMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Overview of GBE for restaurant- Fast Food Restaurant:...........................................................2
Underlying drivers of changes:..................................................................................................3
PESTEL Analysis-.................................................................................................................3
Political drivers:.................................................................................................................3
Economic drivers:..............................................................................................................3
Social drivers:.....................................................................................................................3
Technological drivers:........................................................................................................3
Environmental drivers:.......................................................................................................4
Legal drivers:.....................................................................................................................4
Response of Burger King to the changes:..................................................................................4
Conclusion..................................................................................................................................6

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Introduction
The aim of the paper is to understand the global business environment drivers that
affect the activities and decisions of organizations operating in a specific industry. The
organization selected for the paper is Burger King. The industry in which Burger king
operates is restaurant industry, specifically as fast food establishments. The restaurant
industry in UK is diverse and is experiencing an increase in the growth of fast food
subsidiaries (Boje, Haley and Saylors 2016).
Overview of GBE for restaurant:
The fast food segment in restaurant industry is highly dominated by the international
brands in UK. Convenience plays a major role in protecting the international brands among
the independent players. The increasing health consciousness and improved lifestyle of UK’s
population influence the structuring of the product offerings.
Underlying drivers of changes:
PESTEL Analysis-
Political drivers:
 The major markets have political stability.
 The Government supports e-commerce.
Economic drivers:
 UK is fifth highest in terms of nominal GDP.
 It attracts a huge amount of FDIs.
 Inflation rate rise.
Social drivers:
 Social diversity.

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 Higher health consciousness
 Involvement in sustainable development.
 High standard of living
Technological drivers:
 Automation technologies availability and high investments in technological sector.
 Expertise in science and IT.
Environmental drivers:
 Environmental awareness initiatives.
 Challenging climatic condition (Keith 2017).
Legal drivers:
 Environmental laws
 Food production law
Response of Burger King to the changes:
 Burger King opted for global expansion with the government support. It started its
own e-commerce app for greater reach. The political stability helped in reduction of
several challenges.
 Burger King established small stores in several areas for responding to the increasing
population. After achieving profitability it attracted a large amount of FDI that it can
be utilized for research and development and expansion of the market. Although, it
experienced threats from inflation rates, it transformed the threats into opportunities
by considering it as the determining factor of cost and pricing structures.
 The increasing diversity helped Burger King to innovate products and services.
Burger King acted upon the increasing health concern by adding nutritional values to
the product variants (Hamilton and Webster 2018).

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 Automation and expertise in science and IT helped in the development of e-commerce
applications, marked its online presence.
 Burger King adopted the decision of sustainability by reviewing the sourcing and
operational activities on a regular basis and by eliminating the use of non-
biodegradable wastes like plastic packaging (Berti and Mulligan 2016).
 The legal law that affected the business of Burger King is the Fair Trading Act, 1986.
Burger King abide by the Food Act that deals with the food and safety regulations
(Jaakkola et al. 2016).
Conclusion
It is concluded from the above discussion that freedom given by the government helps
Burger King to expand its wings. The legal and the political stability also help in maintaining
standard. Social and environmental issues seek for sustainable production and the
technological factors affect the innovation of the business.

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References
Berti, G. and Mulligan, C., 2016. Competitiveness of small farms and innovative food supply
chains: The role of food hubs in creating sustainable regional and local food systems.
Sustainability, 8(7), p.616.
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.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.
Jaakkola, M., Frösén, J., Tikkanen, H., Aspara, J., Vassinen, A. and Parvinen, P., 2016. Is
more capability always beneficial for firm performance? Market orientation, core business
process capabilities and business environment. Journal of Marketing Management, 32(13-
14), pp.1359-1385.
Keith, L., 2017. Environmental sampling and analysis: a practical guide. Routledge.