Comprehensive Business Environment Analysis: Burger King in Singapore

This report provides a detailed business environment analysis for Burger King's proposed expansion into Singapore. The analysis begins with an examination of the internal environment, including human resources, financial resources, physical resources, and company culture. The report notes the availability of the workforce in Singapore, financial gaps between the US and Singapore, and the importance of physical resources like stores and supply chains. It then explores the company's mission, vision, corporate culture, and organizational structure. The external environment section examines competition from fast-food chains like McDonald's and KFC, the impact of globalization, the role of technology, and relevant laws and regulations in Singapore. The report concludes by referencing key literature and providing a comprehensive overview of the factors Burger King must consider for successful market entry and operations in Singapore, including the importance of adapting to local market conditions and the competitive landscape.

Running head: BUSINESS ENVIRONMENT ANALYSIS
BUSINESS ENVIRONMENT ANALYSIS
Name of the Student
Name of the University
Author notes

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BUSINESS ENVIRONMENT ANALYSIS
Table of Contents
Internal Environment.....................................................................................................2
Human Resources.......................................................................................................2
Financial Resources...................................................................................................2
Physical Resources.....................................................................................................3
Company Culture and Organisation Values...............................................................3
External Environment....................................................................................................4
Competition................................................................................................................4
Globalisation..............................................................................................................4
Technology.................................................................................................................5
Laws...........................................................................................................................5
References......................................................................................................................6

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BUSINESS ENVIRONMENT ANALYSIS
Internal Environment
Human Resources
Availability of the human resources in concerned countries is one of the major
requirements for any business to expand. The Burger king is trying to expand their business
in Singapore. The internal environment of US is different from that of the Singapore.
Singapore also has a huge number of work force availability. The workforce is
comparatively less skilled than the human resources available in US (Shhalvik, and Gupta).
But at the same time, the labour cost of Singapore is lower than that of US. Burger King can
have a strong human resource base if it manages to train the human resources effectively. The
workforce will be hired through interviews. There will be two rounds of interview and the
applicants have to prove their customer servicing and communication skills through the
interviews. For the restaurant in Singapore, initially there will be one operations mangers, one
marketing and sales manager and a human resource cell. The total number of associates and
on desk service providers will be 20. Two cooks will be recruited for the kitchen jobs.
Financial Resources
Comparison between these two countries makes the financial gaps clear. There is no
doubt in the fact that US is much ahead of Singapore in economic aspects. The GDP of US is
$21,429,000 million USD as per the year 2019. On the other hand Singapore GDP was
$364,139 million USD as per 2019.
Burger King will struggle to find a financial resource in the country like Singapore.
US on the other hand, is much more financially independent and the financial resources are
available for companies like Burger King. According to Yap et al., at the same time, one can
see that Singapore government is quite welcoming for the foreign business organisations. The
tentative budget for the new venture in Singapore is presented in the table below.

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BUSINESS ENVIRONMENT ANALYSIS
Heads Budget
Rent S$120,000
Marketing S$30,000
Salary and other employee expanses for 1st
six months
S$450,000
Supplies and logistics S$10,000
Initial operating costs S$15,000
Fixed costs S$7,000
Total Fund required S$6,32,000
Physical Resources
Physical resources are the tangible items necessary for a business plan. Burger King is
a fast food joint. Hence, if the company wants to establish their business in Singapore, they
have to take care of the availability of the stores, materials and other tangible things for their
production. Burger King Restaurants in US has a place where the connectivity are good. The
stores in US are huge in numbers and it is available in most of the known places of the
country. The supply of the required materials for the food items are there in the market of US.
Singapore is no way less than US in the matter of physical resources availability. The
country has implemented good development plans for its cities. The technological
advancements and good transportation makes the supply chain strong for Burger King in
Singapore. Again, franchising stores would be easily available in the country as the franchiser
will be interested in the fast food chains (Chiu). The brand name of Burger King will also be
instrumental in establishing the business well in Singapore.

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BUSINESS ENVIRONMENT ANALYSIS
Company Culture and Organisation Values
The company Mission of Burger King states that they are committed to sell quick
service foods to their customers according to their needs. The company strives to serve their
customers quicker, more courteously and accurately than the competitors. The company is
willing to grow responsibility and profitably at the same time. The employees of the company
are provided with huge career development opportunities to have individual and
organisational advancements (Burger King: Online Offers and Ordering, 2020). The company
states its vision as- serving reasonably priced food to their customers in an attractive, quick
and clean surrounding.
The company’s corporate culture is huge as it has its chain in 71 countries. The total
number of employees is more than 40,000. The company uses matric structure in their
management. Unlike the competitors, Burger King does not advertise their products
excessively in the markets. The company adopts franchising and store owning strategies for
expanding their business. The company keeps the needs of the customers above everything.
This is the only fast food chain that offers huge types of customisation in their foods. The
company adopts cost leadership strategy.
External Environment
Competition
The main competitors of Burger King in Singapore are McDonald, KFC. Subway and
Starbucks. All of these food chains are already having a good business in the country. The
demand of fast foods in Singapore is high. In respect to the total market share, McDonald is
the highest bidder in the market. The speciality of McDonald is their unique burgers and low
costs. KFC is another fast food chain that is developing its business in the country rapidly.
The number of food courts and coffee shops are rapidly increasing in Singapore (Narumi,

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BUSINESS ENVIRONMENT ANALYSIS
Cheryl and Gui). There are local brand as well that have good capture of the market. Again,
the competitors like KFC and McDonalds have an impressive tie up with the beverage
companies. This gives them extra competitive edge. Burger King will have to analyse the
strengths of the competitors and then decide their marketing and other operational strategies
in the country.
Globalisation
Singapore is known for its diverse and inclusive culture. The people of Singapore is
quite welcoming and they appreciate the globalisation changes. The internationalisation has
influenced the innovation in the country. The people of the country believe that diversity is
the key to creativity and innovation. Hence, they embrace the changes of globalisation and
believe to use them is positive manner (Tsakalerou). Also the lifestyles of the people is fast
and pro-active. Hence, the globalisation has increased the demand for the fast foods among
people. A part of the country do adhere to the healthy options, but the demand of fast food
chains are not curbed by it. Rather it is increasing regularly. The growth of the fast food
industry is the result of globalisation itself. As the country sees globalisation as a positive
aspects, the workplace diversity will not be a problem for the operation of Burger King. The
company would be able to build an inclusive and positive workplace culture in the country.
Technology
Expansion of the business of Burger King in Singapore can be influenced by the
technological factors. The fast food chain is known for using modern technology in their food
cooking sections. The oven that are used by the company employees are automatic and helps
them to serve fast to the customers. The communication and IT technology also plays an
important role in the food ordering (Suyama, Noriyuki). Payments counters of the Burger
King restaurants operates with different money transactional methods and companies.
Singapore is well equipped with technological advancements. Though the country’s R&D is

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BUSINESS ENVIRONMENT ANALYSIS
not that much developed as US, still a company like Burger King can get required
technological support in this country to serve their customers better and faster.
Laws
Burger King has expanded its business in most of the western countries, but it has
limited business in the Middle East and Asian countries because of the strict governmental
laws in these countries. Singapore is quite different in their foreign company policies. The
government gives huge advantages to the foreign companies of the country to grow
(Hamilton and Webster). The import and export laws of the country is in favour of the
business industry. The food and safety laws of Singapore is quite strict. Burger King has to
take special care of the quality check of their fast food so that they can be at the good book of
the government. The labour laws of the country is not going to bring any challenge for the
company. The taxes and other business regulations of the country is in favour of Burger
King.

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BUSINESS ENVIRONMENT ANALYSIS
References
Bk.com. 2020. Burger King: Online Offers And Ordering. [online] Available at:
<https://www.bk.com/about-bk>.
Chiu, Stephen Wing-kai. City states in the global economy: Industrial restructuring in Hong
Kong and Singapore. Routledge, 2018.
Hamilton, Leslie, and Philip Webster. The international business environment. Oxford
University Press, 2018.
Jain, Shhalvik, and Vishal Gupta. "Singapore Business Oppurtunities." International Journal
for Advance Research and Development 3.1 (2018): 38-42.
Narumi Naruse, Cheryl, and Weihsin Gui. "Singapore and the intersections of neoliberal
globalization and postcoloniality." Interventions 18.4 (2016): 473-482.
Suyama, Noriyuki. "Exploring Business Opportunities in Singapore for Food Business."
International Journal of Trade, Economics and Finance 9.3 (2018).
Tsakalerou, Mariza. "Intellectual property as a key driver of business performance: the case
of Singapore and its implications for innovation in a knowledge-based economy."
International Journal of Learning and Intellectual Capital 15.1 (2018): 83-92.
Yap, Teoh Hai, A. B. Sim, and Gregory Thong. "A Cross-Country Comparison of the
Relationships Between Strategy, Environment and Control System Attributes:
Singapore and Australia." The International Journal of Accounting and Business
Society 1.1 (2019): 27-39.