Burger King Australia: Strategic Choice, Recommendations and Analysis

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This report provides a comprehensive analysis of Burger King's business strategy, focusing on its operations in Australia. The report begins with an introduction that highlights the significance of strategic choices in business development. It then delves into the current corporate-level strategies employed by Burger King, examining its implemented strategies and the sustainability of these strategies, particularly in the Australian market. The analysis utilizes frameworks such as the McKinsey 7s model to evaluate the company's structure and strategic vision. Furthermore, the report offers recommendations for enhancing Burger King's business model, emphasizing the importance of employee engagement using Herzberg's Hygiene factors, and the assessment of product value with Porter’s Diamond model. The report concludes that Burger King's success is contingent on effective strategy execution, employee satisfaction, and a customer-centric approach, along with setting product value in accordance with the economic scale of a country.
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Running head: Strategy Choice 1
STRATEGY CHOICE
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Strategy Choice 2
Table of Contents
Introduction.................................................................................................................................................4
1. Current corporate level strategies............................................................................................................4
a) Implemented strategy in the venture....................................................................................................4
b) Sustainability of current strategy.........................................................................................................5
Recommendation and Justification..............................................................................................................6
Conclusion...................................................................................................................................................7
Reference list:..............................................................................................................................................8
Appendices:...............................................................................................................................................10
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Strategy Choice 3
Executive summary
This research sheds light on the business strategy of Burger King in terms of present
business status in Australia. As defined in the first part, the foundation has accessed a
competitive business position with executing business planning. On the other hand, the success
rates are completely a result of efficient leadership and internal business structure.
Recommendations on two different strategies are helpful to manage the employee engagement.
Based on the product value, it has assessed that Burger King needs to develop the pricing factors
with a compatible economic status in different countries.
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Strategy Choice 4
Introduction
Strategic choice of firm is connected with the business development that is helpful to
provide best experience after a certain time. This study has focused to achieve a complete
understanding based on the business strategy of Burger King in Australia. It is helpful to analyse
definite facts that are connected to deliver a complete understanding of the business strategy.
Being the biggest fast food chain, it is expected to have an efficient business controlling
opportunity in the market. Moreover, the recommendation has done to give better examples
based on the present status of business in this country.
1. Current corporate level strategies
a) Implemented strategy in the venture
In this section a complete turn back can be discussed on the favor of this venture as the
company has accessed a new management system. In the previous years the brand has accessed a
complete global platform that is well known and recognizable as a leading brand in Australia.
The business model of Burger King is effective enough to gain advantage in Australian market
rather than other business fast food chain. Almost 90% of Burger King Outlets are franchised
and these are higher in percentage rather than the competitors (bk.com, 2018). As in comparison
with Hungry Jack, it has faced a huge loss at the time of entry in entering in the Australian
market. On the other hand, Burger King has managed to enter in this country with small
restaurants that delivers an accurate business result in terms of the expenditure and business
development.
Establishment of international business is the biggest enlargement strategy of this firm.
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Strategy Choice 5
Outside the headquarter country of this venture, there are almost 3800 company owned
restaurants in the outside of this country (bk.com, 2018). As suggested by Buckley, Burton &
Mirza (2016), in the viewpoint of theoretical perspectives this company has accessed a positive
opportunity. As in the segmentation of BCG matrix, the best position is to stay in market as a
Cash cow or a star. As it has conducted a long term business the position of the company is the
cash cow that is long term sustainability approach. On the other hand, the approach organisation
growth is completely based on the business management system. Burger king had faced previous
issues due to the type and quality of food material that was highly criticized in several countries.
The recent status of development has not only removed the previous scandals related with the
name of this venture but also manages to add a greater value in this business. In the viewpoint of
Eaton & Kilby (2015), these are the inspirations of leadership that manages to commence
innovative growth. The process of leadership is democratic rather than autonomy in this venture.
Thus, employees in this firm can use their skills and development initiatives to define the product
values and deliver effective product diversity for meeting the demands of customers. Crisis
controlling is also helpful to manage the issues that firm faces in different countries.
b) Sustainability of current strategy
The current strategy of Burger King can be better explained with the McKinsey’s 7s
framework. As opined by Evans et al. (2017), the structure of 7s has a complete vision on the
business value along with the strategic vision of the company. The purpose of the business
strategy is helpful to manage the competitive advantage in this firm. For example, the low price
and quality product along with initiative to meet customer needs. In comparison with the other
fast food chains this venture is always focused to access and maintain the quality product
accordingly. The system of management is a unique one that can be rarely seen in any of the
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Strategy Choice 6
corporate ventures. As for example, it provides rewards to the outlets that access large
percentage of positive feedbacks in according to the customer satisfaction. As suggested by
Klettner, Clarke & Boersma (2014), application of soft elements are indirectly applicable on firm
and acts for greater transformation of the ventures. Capability to meet the 70% customer
satisfaction is a distinctive quality that has been managing by this firm for several years. They
have a different strategic choice for different group of people. According to recent report it was
extracted that the venture is trying to gift their customers a feeling of nostalgia at the restaurants
when they enter to access their services. Technological upbringing is enough advanced in order
to supply the foods, keep track of the entire selling in one day. As customers are getting
accustomed about their business process including quality, staffs, style; they are becoming more
confident to maintain the loyalty for long term.
Recommendation and Justification
The above strategy is undoubtedly effective to manage the business of Burger King
whereas Herzberg's Hygiene factors can be applied in the terms of business in order to add extra
value in its process. This company has highly focused on the customers approaches in order to
meet the needs and satisfy them. According to Leonidou, Fotiadis, Christodoulides,
Spyropoulou, & Katsikeas., (2015) it is not only about the customers but also about the
employees. They are the key success factors in business house who provide effort to meet
organizational objectives. According to this theory company policy, recognition, growth,
advancement, responsibility of employees should be appropriate that they can feel satisfied in
working with the venture. A hostile work environment and fair approach to every employee can
help to access such factors. On the other hand as suggested by Schaltegger, Hansen & Lüdeke-
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Strategy Choice 7
Freund (2016), Porter’s Diamond model can be used by this venture in order to access a
powerful strategic approach on the behalf of the company. The most important factor in this
model is the strategy, structure and competitors that are highly effective to determine working
morale. As for example, in Australia this venture have a different company structure rather than
the venture in the US. Though, Burger King conducts business in different countries yet it has
followed a general rule to apply in every market. In the viewpoint of Klettner, Clarke & Boersma
(2014), application of this strategy is effective in this sense as; company can evaluate the
economic scale, size of home market, transport cost before determining the product value. Thus,
these two strategies are helpful enough to look and consider the employees segment as well as
product value in different countries.
Conclusion
It can be concluded from the above part that the business of Burger King requires has an
excellent business strategy. The reason behind its success factors completely depends on a proper
execution and applying in company initiatives. Initially, the theory based evaluation extracted
that the company has accessed an effective business position in terms of its business
requirements in the different countries. Further the evaluation has suggested that it has created a
unique and different style of marketing that assist to access a competitive advantage rather than
other ventures. In recommending two different models it has opined that the business firm
required managing employee satisfaction as they are the key success factors in a company.
Additionally, product value must be set in according to the economic scale of a country.
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Strategy Choice 8
Reference list:
Book
Buckley, P. J., Burton, F., & Mirza, H. (Eds.). (2016). The strategy and organization of
international business. London: Springer. Retrieved from:
https://books.google.co.in/books?
hl=en&lr=&id=2Ti_DAAAQBAJ&oi=fnd&pg=PR7&dq=business+strategy&ots=WU-
RZCoVlw&sig=UC3ZyYn9rrsQ4DKME1CzisZZi58
Journal
Eaton, D., & Kilby, G. (2015). Does Your Organizational Culture Support Your Business
Strategy?. The Journal for Quality and Participation, 37(4), 4-10. Retrieved from:
https://search.proquest.com/openview/76e6dccfa0d064c3b663ed52f0ab6119/1?pq-
origsite=gscholar&cbl=37083
Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E. A., & Barlow, C.
Y. (2017). Business model innovation for sustainability: Towards a unified perspective
for creation of sustainable business models. Business Strategy and the Environment,
26(5), 597-608. Retrieved from:
https://onlinelibrary.wiley.com/doi/pdf/10.1002/bse.1939
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Strategy Choice 9
Klettner, A., Clarke, T., & Boersma, M. (2014). The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics, 122(1), 145-165. Retrieved from:
https://opus.lib.uts.edu.au/bitstream/10453/33598/4/The%20Governance%20of
%20Corporate%20Sustainability%20Empirical%20Insights%20into%20the
%20Development%20Leadership%20and%20implementation%20of%20Responsible
%20Business%20Strategy.pdf
Leonidou, L. C., Fotiadis, T. A., Christodoulides, P., Spyropoulou, S., & Katsikeas, C. S. (2015).
Environmentally friendly export business strategy: Its determinants and effects on
competitive advantage and performance. International Business Review, 24(5), 798-811.
Retrieved from: https://paperdownload.me/wp-content/uploads/2017/11/4484-
environmentally-friendly-export-business-strategy-determinants-effects-competitive-
advantage-performance.pdf
Online article
Schaltegger, S., Hansen, E.G. & Lüdeke-Freund, F., (2016). Business models for sustainability:
Origins, present research, and future avenues. [Online]. Retrieved from:
http://journals.sagepub.com/doi/full/10.1177/1086026615599806
Websites:
bk.com (2018). Bk.Com Retrieved from: https://www.bk.com/
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Strategy Choice 10
Appendices:
Appendix 1: A graphical representation of business
(Source: bk.com, 2018)
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