Business Health Check: An Evaluation of Burger King's Performance

This report provides a comprehensive business health check for Burger King (BK), examining its objectives, the factors influencing its performance, and potential areas for improvement. The analysis begins with an overview of BK's objectives, including financial targets, market expansion goals, and employee retention strategies. It then delves into the factors impacting BK, utilizing PESTLE and SWOT analyses to evaluate the political, economic, social, technological, legal, and environmental factors, as well as the company's strengths, weaknesses, opportunities, and threats. The report also reviews the effectiveness of BK's business operations, focusing on areas such as product quality, marketing, sales, and staffing. It proposes strategic improvements using tools like the Ansoff matrix, with a focus on market development, market penetration, and product development. The report also evaluates the skills of management and staff and suggests plans for skill development, concluding with a summary of the key findings and recommendations for BK's continued success in the fast-food industry.

Business Health check Up

Table of Contents
INTRODUCTION...........................................................................................................................4
LO 1.................................................................................................................................................4
1.1 Objectives of Business.....................................................................................................4
1.2 Explaining factors that impact on Burger king.................................................................5
1.3 Determining the improvements to the business and operations.......................................8
LO 2 ................................................................................................................................................9
2.1 Reviewing the effectiveness of business..........................................................................9
2.2 Developing plans to improve the business.....................................................................10
LO 3...............................................................................................................................................11
3.1 Evaluating the skills of management and staff...............................................................11
3.2 Plans for the development of skills for management and staff of Burger King.............12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

Illustration Index
Illustration 1: pestel analysis............................................................................................................5
Illustration 2: SWOT analysis..........................................................................................................8

INTRODUCTION
Business health check is essential part of entity that assists firm in determining flow of
operations in the organization. This supports in identifying existing performance of the
corporation and making necessary changes in operation in order to raise profit of business unit.
For the present report Burger King (BK) has been taken into consideration. Study will explain
objective of the firm and factors that impact on overall functioning of company. Furthermore, it
determines potential improvement that can be made in BK for raising its operational efficiency.
It will evaluate existing skills of management and will prepare plan for developing skills for
management and employees.
LO 1
1.1 Objectives of Business
Burger King (BK) is British multinational firm that operates its business across the world.
Recently entity is operating its business in more than 15000 locations. Company offers
hamburgers, soft drinks, breakfast, hot dongs etc. variety of products to consumers. In the year
2015 entity has generated profit of 4.05 Billion. In the same year operating income of entity was
363.0 Million. Total assets of Burger King is 1.912 Billion. It has employed approx 34248
employees and all these workers are well trained. They concentrate on needs of consumers and
provide them goods and services accordingly (Burger King Corporation, 2018). Recently it has
14000 stores in more than 100 countries. It has the largest fast food restaurant chain that attracts
many people towards the location. The biggest competitors of BK are McDonald, KFC etc.
These companies give tough competition to BK. But effective strategies and strong market
reputation help the firm in sustaining in the market for longer duration.
SMART objective of BK
 To enhance revenues of BK by 30% till the end of 2018.
 To raise number of customers by 35% till the end of this financial year.
 To improve quality of products/services and open 30 more outlets in other locations in
the end of this fiscal year.
Long term objective of Burger King is to increase profitability of the company to great
extent. Entity aims to enhance its revenues by attracting more people towards the brand. It

conducts effective market research so that it can identify needs of consumers and can provide
them goods and services accordingly (Burger King’s Vision Statement & Mission Statement,
2017). BK has objective to develop its products and open more outlets in other locations.
Enterprise is operating its business globally and dealing with mass number of people. It is
planning to open more physical stores so that it can provide services to more consumers and can
raise its profit to great extent.
Short term goal of BK is to retain its employees for longer duration. It wants to enhance
satisfactory level of its workers. For that it is providing rewards and recognition to them so that
they feel motivated and retain in the organization for longer duration. Another short term
objective of the firm is to improve interior of its outlets (Burger King Corporation, 2018). This
can help in gaining attention of consumer sand raising its profitability.
1.2 Explaining factors that impact on Burger king
PESTLE analysis help to know how effective the business will run and what is the actual
performance of business
Political Factors: the government is trying to support globalization and Burger king take
the advantages and expands it business in all over the world. The company also tries to develop
Illustration 1: pestel analysis

new online facility in order to attract more customers. There are some external factors of political
instability which hider the growth and development of company's growth (Fathi-Hafshejani,
Fakharzadeh Jahromi and Peyghami, 2018).
Economic Factors: Burger king wants to increase its international trade but U.S.
Economic does not allow expanding its business as economic challenge affect the sales and
revenue and there is increase in interest rate of food which will decline the sales power of food
and lead to decrease in profit margin.
Social Factors: Society and culture both are important factor which show how people
shopping and which brands they like. Burger King focus more on IT and people mostly order
food online and the company get feedback from the people through social sites and try to
improve their quality as per the need of customers.
Technological Factors: the growth of business will become fast as it invests more in its
technology. Burger King use the latest technologies in order to reach more peoples. Now the
technology becomes key factor of growth and investing on new technology will help to create
good bonding with customers (Cubas‐Díaz and Martínez Sedano, 2018).
Environmental Factors: Burger kings tries to invest in order to take care of environment.
It provides nutritional food which help to serve its best to customers and also takes care of its
menu that remains people healthy as food is the important focus of Burger King.
Legal Factors: fast food business are increases pressure from the legal authorities. The
company has an opportunity to grow according to export rules. The company also enhance the
performance in order to complete the need of users.
Porter's five force model help to analyse the actual performance of business which are mention
below:
Competitive rivalry:
 It has high number of its rivals as a result it has low switching price.
 It offers various type of product as it focus mainly to food while other company did not.
Bargaining power of customers:
 Burger king have low level of switching cost so customer easily shift to another
company.
 It should take care of its customers demand because as per user's choice they may shift to
another if they dislike the products.

Bargaining power of suppliers
 It has high number of suppliers that provide product in low rates.
 The overall supply of company is high which create weak force for its competitors.
Threat of substitute:
 The customers can easily transfer from burger king to other if there is substitute in fine
restaurants and provide food in cheap rates (Fathi-Hafshejani, Fakharzadeh Jahromi and
Peyghami, 2018).
Threat of new entrant Having low switching power will show that consumers can transfer to new firms but
entry of new product will face disadvantage because Burger king have high economy
while others do not have.
Swot analysis:
Strength
 It is second largest food restaurant.
 It offers so many products in single shop with such a low rate.
 It captures its brand image in all over the country. It focuses more on new product development and always try to make innovations in their
existing products.
Weaknesses
 It does not focus more on the use of digital marketing.
 It has large number of franchise due to this it faces many difficulties in handling the
operations (Cubas‐Díaz and Martínez Sedano, 2018).
 It faces high indebtedness and this affect the brand image of Burger king.
 People are more conscious regarding their health and this will decline in their sales
power.
Illustration 2: SWOT analysis

Opportunities:
 Targeting develop economical zone is the best future plans for Burger King.
 Target young people and offer them products with discount will help to expand its
market and become the best restaurant in the world (Abdel-Basset, Mohamed and
Smarandache, 2018).
 The company make its product fat – free will help to increase the level of customers. Burger King may add flavored additions to their product can increase the revenues and
generate more profit.
Threats:
 The biggest threat for burger king is, changing eating habits of people. It will affect the
sales and revenue.
 Government organize health conscious program which aware people and it will lead to
decline the sales of fast food zone.
1.3 Determining the improvements to the business and operations
It has been identified that burger king company is performing well in the fast food
industry, but still there are various area where improvements are yet to be made. It is required by
the manager in organisation to make changes in strategies as per the demand of situation.
Business entity need to facilitate innovation in products as well as required to bring improvement
in marketing as well as other business operations. In present scenario, innovation has become
necessary, as there has been continuous change in taste as well as preference of customer in the
market (Lange,2018). Now consumers want the products or food item of their choice. Customers
are more concerned about the way food is prepared as well as quality of the fast food. They have
become more health conscious, considering this fact it is required by burger king company to
improve the quality of product. As innovation strategy will assist an enterprise in fostering
growth. It will also help firm in gaining the competitive advantage in the market.
Ansoff matrix is considered to be as an effective tool which can be utilised by manager in
Burger king company for making the strategic plan for bringing the improvement at workplace.
It also understanding the risks of growth. This model also assist management identifying the
position of company in the market. It also helps management in analysing the current situation
faced by an enterprise.

Market development strategy-It is recognised as the growth strategy which can utilised
by the burger king with the intention of selling existing products into new market. This strategy
will help an enterprise in increasing market share. It will also assist business entity in increasing
sales as well as profitability (Sivalingam, 2018). The marketing manager in burger king requires
to make plan for aggressive marketing campaign. As this will support firm in reaching to the
target audience. Burger king company can successfully launch existing commodity in new
market by keeping the cost of product low.
Market Penetration- This also considered to be as growth strategy which can be used by
burger kin. As marketing penetration strategy helps firm in selling existing products into existing
markets. This strategy can be adopted when an organisation have good information on
competitors and on customer needs.
Product development-It is growth strategy where a business intent to introduce new
products into existing markets. This strategy may require the development of new competencies.
LO 2
2.1 Reviewing the effectiveness of business
Burger king organisation has gained popularity for its delicious as well as tasty burgers.
Business effectiveness is defined as the firm capacity to accomplish short as well as long term
business objectives. Effective business plans and strategies has supported burger king in
accomplishing the desired target. In addition to this highly talented and skilled employees has
help an organisation in achieving the objectives. Products/services, marketing, sales, finances,
staffing, business image and record keeping.
 Products or services- Burger king have focus on delivering the good quality of product
at reasonable price to customers (Ballings,McCullough and Bharadwaj, 2017). This
strategy has supported an enterprise in gaining the loyalty of customer. It has also
supported organisation inn attracting more number of customers. In addition to this
product development strategy has allowed firm to increase its customer base. It is very
important for business venture to maintain the standard quality of product (Lim and Lee,
2017). As this tactic will help an enterprise in developing as well as maintaining strong
relationship with client.
 Marketing – The aggressive marketing campaign organised by company has helped the
firm in reaching to the large number of customers. Business entity is also utilising the

social media sites as well as direct marketing technique which has assisted business entity
in achieving marketing objectives.
 Sales – Business entity offers wide range of the products to customers. This strategy has
helped firm in targeting the customer belonging to different income group. Price
differentiation strategy has assisted an organisation in increasing sales.
 Finances- Partnership strategy has assisted burger king in getting the financial resources
for fulfilling business requirement. Burger King Franchise is considered a lower risk
investment.
 Staffing -Human resource manager in Burger king has appointed the skilled and talented
workers those who have helped business entity in accomplishing the objectives.
2.2 Developing plans to improve the business
Business plan is process which is used to make strategies which can be helpful for the
company to understand their business. It contains all the information about the organization to
reach to their goals and objectives. A good business plan has several steps, such as,
 Executive Summary : It is very important to have an Executive summary before
implementing any strategies into the system. This will help them understand their actual
position in the market.
 Market Analysis or Strategies : After analysing the overall situation of the market
strategies, it becomes easy for the organization to plan accordingly.
 Competitive Analysis : Evaluating there competitors present in the market is also
important for the company to bring any change in their management (Honig, B. and
Karlsson, T. 2014).
 Development Plan : After studying all the related factors, an effective business is made
by the management team for the company which can help them to increase their sales and
production in the market.
 Operation and Management Plan : There will be different factors present in the
business plan which has to followed by the organization to achieve their target or goal in
the given time.
 Marketing and Sales : To make their business plan successful a good marketing has to
be done by the employees in order to attract the attention of their customers.

 Financial Factors : This is the most important aspect of the business plan, as there
should be enough budget in the company to complete all the task described in the plan
(Boiko, V.I. 2016).
LO 3
3.1 Evaluating the skills of management and staff
Skill management is a process which is used to evaluate the overall performance of the
company and their staff members to improve their efficiency in the work. There are various skill
management which is considered by the Burger King to manage in their system, such as,
 Technical Skills : These are the techniques which is required to understand all the
technical aspects of the system which is used in the company.
 Operational Skills : These skills includes the skills which helps the company to operate
all its work
 Managerial Skills : These are the skills which is used to manage all the operations which
is being operated in the company. It should be done carefully by the manager to get a
good outcome in the end.
Burger King has a good management skill in their staff members which helps them to
complete their work in time and deliver their service to their customers in time which gives a
good impression on their customers (Whetten, D. and Cameron, K. 2014).
3.2 Plans for the development of skills for management and staff of Burger King
There is a great scope of development in the Burger King which they can implement in
their management system to increase their efficiency in the market. Business plan for the Burger
King requires improvement in the communication and technological skill management for which
they have to organize a training session which can help them to provide all the information
which is useful for them to apply in their company (Hoffman, M. and Tadelis, S. 2018).
Skills Strategies Resources
Communication
Skills
 They have to organize
seminars which can help their
employees to develop
communication skills.
 They will need a seminar
hall to organize the
meeting, or training
sessions.

 They should try giving some
training on the developmental
skills.
 That will also need
tables, chairs, notepads
and pens.
Technological Skills  Burger King has to teach
their staff members to
understand the technological
aspects related to its working.
 All the latest technology
which is used by the
organization to work.
CONCLUSION
From this report we can conclude that a good and better planning plays an important role
in the organization to run successfully in the target market. Various factors contribute in the
overall growth of the organization which can be analysed by different methods such as, for
internal factor, SWOT analysis is used and for the external method, PESTLE analysis is used. It
also discussed the Porter's five force model and Ansoff's Matrix which helps the organization to
understand their current market position and plan strategies according to it. This report
concluded that these analyses are important for the organization to understand its strengths and
weaknesses.

REFERENCES
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IN THE CULTURAL SECTOR OF THE REGIONS OF THE COUNTRY. In
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analysis of interior point methods for semidefinite problems based on trigonometric
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Manager Rewards: An Empirical Analysis.
Honig, B. and Karlsson, T., 2014. Institutional forces and the written business plan. Journal of
Management, 30(1), pp.29-48.
Lange, S., 2018. Holistic Health Solutions Business Plan.
Lim, T.M. and Lee, A.S.H., 2017. Loyalty Card Membership Challenge: A Study on
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Sivalingam, R., 2018. Strategic Management. Industry Analysis, Strategic Drift and Re-
Strategizing.accepted).
Whetten, D. and Cameron, K., 2014. Developing Management Skills: Global Edition. Pearson
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Online
Burger King Corporation. 2018. [Online]. Available through
<https://www.britannica.com/topic/Burger-King-Corporation>
Burger King’s Vision Statement & Mission Statement. 2017. [Online]. Available through
<http://panmore.com/burger-king-vision-statement-mission-statement>