Global Marketing and Expansion Strategies: Burger King

This report examines Burger King's global marketing strategies, emphasizing market entry, particularly through franchising, and its expansion into the Chinese market. It explores the concept of global marketing, including glocalization, and analyzes the development of global markets. The report delves into Burger King's expansion, assessing political risks in China and trade barriers between the UK and China. It reviews the business environment, advantages, and disadvantages of entering the Chinese market. The report analyzes franchising as a market entry mode, highlighting its advantages and disadvantages, such as cost-effectiveness and less control for the franchisor. It also covers factors influencing market entry and various benefits of franchising for Burger King. The report concludes with an overview of the company's strategies, including franchising, to achieve success in the global market.

PORTFOLIO OF
GLOBAL
MARKETING

EXECUTIVE SUMMARY
Marketing is the technique which aids in attracting new buyers and raising sales of company
to great extent. In the modern era it is essential for each company to apply great marketing
technique so that it can gain competitive advantage. Study highlight development of The Burger
King at global level. Market of China is evaluated in this report and Trade Related Barriers
between UK and China are explained in this study. Report highlights that Franchising is the cost
effective market entry strategy which aids the firm in successfully establish itself in new market.
But company gets less control over operation hence franchise sometime restrict the firm to work
better in the global market.
Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................3

PORTFOLIO 1.................................................................................................................................4
TASK...............................................................................................................................................4
1. Global Marketing Concept.................................................................................................4
2. Development of Global Market..........................................................................................4
3. Burger King's Development at Global Level.....................................................................5
PORTFOLIO 2.................................................................................................................................5
TASK...............................................................................................................................................5
1.a. Background of BRIC Market: China...............................................................................5
1.b. Assessment of Political Risks..........................................................................................5
1.c. Various Trade Related Barriers between UK and China.................................................6
1.d. Reviewing the Environment............................................................................................6
1.e. Various Advantage and Disadvantages of Entering into China for UK Country............6
PORTFOLIO 3.................................................................................................................................6
TASK...............................................................................................................................................6
1. Overview of Company.......................................................................................................6
2. Various Factors Affecting the Entry in Foreign Market....................................................7
PORTFOLIO 4.................................................................................................................................7
TASK...............................................................................................................................................7
1. Franchise as a Entry Mode.................................................................................................7
2. Advantages and Disadvantages of Franchising..................................................................7
3. Various Benefits of Franchising.........................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Global Marketing are basically the strategies adopted by the business to expand their
business market at global level and sell their goods and services in the global market. By taking
advantages of various differences and finding new opportunities to accomplish the objectives at
global level. This report highlights the concept of development of global market. Also various
modes of entering into the new markets for expansion along with the advantages and
disadvantages are also mentioned. The internal and external factors such as issues relating to
semantic, politics, etc. are also being stated along with their evaluation so that is is easy for the
company to accomplish its goals and objectives and progress at global level.
PORTFOLIO 1
TASK
1. Global Marketing Concept
Development of Global marketing can be done by adopting various frameworks of
Hollenson, one of which includes, Glocalisation which is the combination of 'Globalisation' and
'Localisation'. The products and services which are distributed and developed at global level but
also accommodated by the local consumer(Schlegelmilch, 2016). It is basically Thinking in a
global context and acting in a local context framework.
It is quiet expensive and requires a lot of resources but once adopted, it gives long term
competitive advantage. For encouraging the local market consumers to use the foreign products
and services and to promote them will involve advertisement campaigns, media which is
culturally friendly, etc. according to this framework.
2. Development of Global Market
The market at International Level has been transformed by emergence of new techniques,
practices and strategies. And they are gradually retained and also reinforced by the the
organizations to be involved in the market at international level(Eisend, 2015). It is providing
the products and services locally with global standards after understanding the needs and demand
of customers which will help in development of business.
It requires analysis along with development of brand and its value through self and
customer analysis, the strengths and weakness of the company, competitiveness in the global
market, etc. By establishing a research and development center, an overall study can be done by
the research team about the market and the customers for providing quality products, at reliable

prices(The Global Leader In Acoustic Technology, Thermal management and fluid Transfer,
2019), so that appropriate strategies and policies can be adopted for developing a competitive
edge in the global market.
3. Burger King's Development at Global Level
The Burger King's parent are are moving forward for its expansion at international level
for increasing profitability and productivity, in the BRIC country China for gaining more
advance economic development. As the restaurant is under penetrated it has a wide scope of
growing over the local as wll as global market by adopting the framework of Globalization, that
is, providing the products with global standard at local markets, to influencing its ultimate
customers.
Although, the impact of currency movements, and other transactions, it has managed to
grow in the global market and increased its overall revenue about approximately % at its global
level stores. For competing with the leading brands such as McDonald, Starbucks it is putting
continuous efforts by experimenting with the menu and bringing new and innovative variety of
fast foods, also keeping in mind its quality and health of customers. Various strategies in relation
to expansion and research and development has also been set up for market study and taking
appropriate steps for development at global level.
PORTFOLIO 2
TASK
1.a. Background of BRIC Market: China
It is studied that it is expected that in coming recent years, China will surpass the
countries in context of size. But also, it is necessary for the stakeholders and investors to
determine the risks and recognize them in relation to the controversies and changing policies by
the government of China(Mitchell and Casben, 2017). To grow at a global level market of China,
discovery of risks and adoption of proper investing policies is necessary.
1.b. Assessment of Political Risks
Political risks is related to the government's interference in conducting business by any
foreign company country in their country. In China there is political control at local level of
business in even decision making process. The government directs the usage of land and also all
the rules and regulations for conducting business are being set up by them. In this, situation,
emerging as a new market, is very difficult to cope up with existing rules and also the rules for

entering the market. Currency variation and changes in the interest and inflation rates also affects
the business at global level.
1.c. Various Trade Related Barriers between UK and China
The manufacturing is relatively low by UK which automatically minimize the barriers
and their damage to the goods and services manufactured. UK generally exports machinery and
equipment's which are mechanical in nature(UK relatively well insulated from tariff war, 2018).
It is found that demand for UK exports is generally low, and US can take place of it gradually,
but to compete, UK will provide goods at cheaper rates which will be at its own expense and
eventually result in decline of its market. Therefore, it is suggested to reduce the barriers and
bring a balance between the costs and the revenues by China and favor the UK market.
1.d. Reviewing the Environment
China is the largest manufacturing economy, along with the exporter and importer of
goods and services, hence playing a prominent role in trade at international level. The more
importance has to be given on the basic structure and health of the economy of China, which
growing tremendously(Steenkamp, 2019). To avoid socioeconomic cost, It is advised to China to
focus more on development of industries in an advanced manner and reduce the pollution by
optimum use of the national resources and also it should develop a team for research and
development for sustainable growth at international level.
1.e. Various Advantage and Disadvantages of Entering into China for UK Country
Entering any new market has its own advantages and disadvantages in conducting of
business in a smooth manner. It helps in gaining the Access to New Customers, for the UK
market and launch their product according to their needs and description will help them grow. As
the labor Cost is very low in China it will ultimately help UK to Reduce its Costs and expand its
business(Advantages and Disadvantages of Competing in International Markets, 2017.). The
Political and Economic Risk can be the major hindrance in growth of the company, as there are
various policies and regulations and restrictions set up by the government which causes difficulty
in flourishing at global level.

PORTFOLIO 3
TASK
1. Overview of Company
Burger King is a hamburger fast food restaurants at multinational level, having its
headquarters in Florida. Its majority of the stakes were being acquired in 2010, and the new
owner focused on its corporate restructuring through merging(Cheung, 2016). It also initiated in
purchasing the agency of advertising for good advertising of its goods and services and also now
through online mode it is diversifying its business by expanding its demographic targeting and
efficient advertising.
2. Various Factors Affecting the Entry in Foreign Market
For entering into foreign market various modes can be adopted such as intermediate
mode and hierarchical mode. The Burger King being a large firm with lots of human resource
and huge financial incentives, uses the intermediate mode of entry, that is, Franchising(Ashley
and Tuten, 2015). There are many external and internal factors which affects franchising, they
includes; Technological and Political Changes are the external factors which may create
hindrance in growing the business, as the adoption of new technology which becomes obsolete
very soon results in major impact on the growth of business.
Some of the internal factors affecting the growth and entry are Recruitment and
Retention of Employees, as skilled employees are sometimes hard to find and retention through
motivation sometimes proves to be difficult sometimes when working overseas(Rao-Nicholson
and Khan, 2017). Semantic Issues can also create difficulty as it is not possible that each and
everyone has knowledge about the regional languages of various countries, for which proper
training has to be provided to the employees.
PORTFOLIO 4
TASK
1. Franchise as a Entry Mode
Franchising is a business growth strategy adopted by Burger King for the expansion of its
market at global level. It is a contractual relationship between the franchiser and franchisee, and
franchisee comes in an obligation to pay the lump sum amount along with the shares from the
future profits in form of royalty(Steenkamp, 2017). It can be done through giving license of

know-how, intellectual; property and using the brand and also usage of rights over selling the
goods and services to the franchisee. It is basically done to reduce the risks and investment of
capital for doing business overseas(Kalra and et.al., 2016). As the Burger King is allocated at
wider level it also diversifies its risks to various targeted geographical markets.
2. Advantages and Disadvantages of Franchising
Franchising is strategy for expansion of any business which gives benefits to both the
parties to the contract. And hence, it comes with various advantages and disadvantages which
have to be considered. This expansion is Cost-Effective, as there is no requirement of investment
by the franchiser and nor funds have to be arranged in this regard by Burger King. Also, it helps
in getting Additional Incomes, as the franchisee has to pay royalty, which is to be paid on
monthly basis in accordance to the sales done over the month(Franchising Your Business:
Advantages & Disadvantages, 2016).
Its major disadvantage is that the franchiser, that is, Burger King has Less Control over
the franchisee, as no changes can be made alone without any agreement and negotiation has to be
done accordingly. Legal Actions Proves to be Costly, in case of any disagreement or there is
continuous loss in the business, legal action can be initiated which can be proved to be costly as
well as decreasing the reputation of the business(Gillespie, 2015).
3. Various Benefits of Franchising
The benefits of Franchising In China by the Burger King are many which includes
continuous growth, capital infusion, reducing the risks, etc. Motivated Management is difficult
to gain, despite of various training and sessions, the managers are not motivated towards their
work. But here, franchisee that is the owner will be the only manager Therefore, the most
motivated person will be the owner, who can help in growing and flourishing the business at
next level(De Mooij, 2018). Innovation and Improved Quality of Operations, as the franchisees
are not mere managers, they own the business and put efforts in maintaining the business, and
train the employees with key skills for efficient working and find new opportunities to attain
global competitive edge.
CONCLUSION
It is concluded from the above study about the global market and its development by the
company. The risks such as political and economic in relation to adopting expansion in China

and the ways to overcome the same with constant efforts are also being mentioned. The ways
adopted for better development in the business by doing business overseas by the Burger King.
And the entry mode adopted for expansion, the benefits which can be attained by the company
such as infusion of capital, low costs of labor which can directly lead the company to gain
competitive advantage in the global world.

REFERENCES
Books & Journals
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study of branded social content and consumer engagement. Psychology & Marketing.
32(1). pp.15-27.
Cheung, M. S. 2016. 320-01 International Marketing.
De Mooij, M. 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Eisend, M. 2015. International Marketing. Wiley Encyclopedia of Management. pp.1-2.
Gillespie, K. 2015. Global marketing. Routledge.
Kalra and et.al. 2016. Consumer Attitude towards Network Marketing in a Global
Scenario. Intercontinental Journal of Marketing Research Review. 4(12). pp.9-14.
Mitchell, A. D. and Casben, J. 2017. Trade law and alcohol regulation: what role for a global
Alcohol Marketing Code?.Addiction. 112. pp.109-116.
Rao-Nicholson, R. and Khan, Z. 2017. Standardization versus adaptation of global marketing
strategies in emerging market cross-border acquisitions. International Marketing
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Standardization. In Global Brand Strategy. (pp. 75-109). Palgrave Macmillan, London.
Steenkamp, J. B. 2019. Reflections on defining global brands, fragmentation and segmentation,
and the emergence of richer brandscapes. International Marketing Review.
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The Global Leader In Acoustic Technology, Thermal management and fluid Transfer. 2019.
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UK relatively well insulated from tariff war. 2018. Online Available
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Advantages and Disadvantages of Competing in International Markets. 2017. Online Available
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Franchising Your Business: Advantages & Disadvantages. 2016. Online Available
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disadvantages/>.