Burger King’s Operations Management, 10

Decisions, Productivity
UPDATED ONUPDATED ON FEBRUARY 6, 2017 BY PAULINE MEYER

Inside a Burger King

restaurant in Seoul, South Korea. The 10 strategic decisions of operations management
are successfully applied at Burger King to optimize productivity in all business areas.
(Photo: Public Domain)
Burger King’s operations management (OM) involves strategies to increase the
company’s status toward the top position in the global quick service restaurant industry.
As one of the major players in the industry, Burger King must address the 10 strategic
decision areas of operations management. These 10 areas are the most basic
considerations in strategic formulation for streamlined and unified organizational
development. Burger King has appropriate strategies and tactics for the 10 strategic
decisions of operations management. These strategies and tactics are based on Burger
King’s business nature and market conditions.

The 10 strategic decisions of operations management (OM) are carefully included in

Burger King’s strategies for high productivity and performance. These strategies are a
result of Burger King’s organizational development through the years.

Burger King’s Operations Management, 10 Decision

Areas
1. Design of Goods and Services. Burger King’s focus in this strategic decision area
of operations management is to differentiate its products from those of competitors. For
example, the company offers flame-grilled burgers, which are relatively unique in the
market. This approach to operations management supports Burger King’s generic
strategy and intensive growth strategies.

2. Quality Management. This strategic decision area involves satisfying the quality
expectations of target customers. To address this concern, Burger King’s operations
management maintains product tests. The company also collects customer feedback
through the My BK Experience website.

3. Process and Capacity Design. Burger King’s objective in this strategic decision
area is to implement operations management programs to maximize capacity utilization
and productivity. For example, the company continuously monitors demand and sales at
its restaurants worldwide. Burger King adjusts its production facilities’ operations
accordingly.

4. Location Strategy. The primary operations management concern regarding location

is to strategically optimize market reach. Burger King’s strategy to address this decision
area involves market penetration, with focus on town centers and urban centers.
Restaurant location is used as a criterion for evaluating franchise proposals.

5. Layout Design and Strategy. Burger King’s operations management emphasizes

efficiency. For example, the company’s kitchen design is as compact as possible to
save space while enabling worker productivity. Thus, Burger King addresses this
strategic decision area through efficient layouts and workflows.

6. Job Design and Human Resources. Sufficient and effective human resources are
the objective in this strategic decision area of operations management. Burger King
satisfies this concern through standardized training programs. The firm has field teams
and Restaurant Support Centers for this purpose.

7. Supply Chain Management. Burger King has a global supply chain. In this strategic
decision area, the objective is to ensure adequacy of supply at all times. Burger King’s
operations management strategy involves consolidating all supply chain activities under
Restaurant Services, Inc. (RSI). Burger King’s materials and ingredients are supplied
through RSI.

8. Inventory Management. This strategic decision area highlights the need for
operations management practices that maximize capacity and satisfaction, and
minimize inventory management costs. Burger King addresses this need through
localized inventory practices based on restaurant performance, as well as global
inventory management for moving products to various restaurant locations.

9. Scheduling. Burger King’s approach for this strategic decision area is based on
industry standards. For example, the company’s operations management uses
 automated scheduling for human resources. In addition, manual scheduling is used,
especially at individual Burger King restaurants.

10. Maintenance. Optimal operating conditions are the main concern in this strategic
decision area of operations management. For this purpose, Burger King also uses
industry standards. The company has dedicated maintenance teams for corporate
operations, and Restaurant Support Centers for franchisees, as well as third party
service providers in various localities.

Productivity at Burger King

Burger King’s operations management measures productivity from different angles,
such as those of the franchisees, corporate headquarters, and regional facilities. The
goal is to maximize productivity while minimizing corresponding costs. The following are
some notable productivity criteria at Burger King:

1. Revenues per restaurant (restaurant productivity)

2. Revenues per region (productivity in the regional market)
3. Meals served (general productivity for process evaluation)
4. Documents processed per year (Burger King’s corporate productivity)

Burger King’s Stakeholders: A CSR Analysis

UPDATED ONUPDATED ON FEBRUARY 6, 2017 BY JUSTIN YOUNG

A Burger King
restaurant in Guaruja, Brazil. Burger King’s corporate social responsibility (CSR)
strategy effectively accounts for stakeholders’ interests, although there is room for
improvement. (Photo: Public Domain)
Burger King’s position as one of the major competitors in the global fast food restaurant
industry comes with expectations on corporate social responsibility (CSR). These
 expectations relate with Burger King’s main stakeholders. Theory indicates that
businesses affect stakeholder groups that also influence business performance in
return. As such, it is essential for Burger King to maintain and improve its corporate
social responsibility strategies for the purpose of optimizing its relations with major
stakeholders. By integrating the interests of these stakeholder groups in strategic
formulation, Burger King can expect optimized business opportunities for long-term
global growth and expansion.

Burger King’s corporate social responsibility (CSR) strategy recognizes the importance
of its stakeholders. This recognition is manifested in the company’s programs and
strategies that directly address the interests and demands of its most important
stakeholder groups.

Burger King’s Stakeholder Groups & CSR Initiatives

Burger King’s corporate social responsibility activities are based on a set of
prioritizations, which are indicated in the company’s stakeholder-driven approach:
“Food, People, Environment and Corporate Governance.” Based on such approach,
Burger King’s stakeholder groups are as follows, arranged according to significance and
priority level:

1. Customers (highest priority)

2. Employees
3. Communities
4. Investors (lowest priority)

Customers. Burger King considers customers as the top-priority stakeholders. This

stakeholder group is interested in quality products and reasonable pricing. Customers
are significant because they directly determine the revenues of Burger King in terms of
demand and purchases. In response to these interests, Burger King’s corporate social
responsibility activities ensure quality products and transparency in communicating with
customers. For example, the company publishes detailed nutrition facts regarding its
menu items. Based on these considerations, Burger King’s corporate social
responsibility activities satisfactorily address the interests of customers as the top
stakeholder group.

Employees. Employees are the second-priority stakeholders in Burger King’s approach

to corporate social responsibility. The interests of this stakeholder group are career
opportunities and fair compensation. Employees are significant because they affect how
Burger King performs in terms of productivity, quality of service, and overall efficiency.
In this regard, Burger King’s organizational culture emphasizes meritocracy. For
example, employees’ performance is accounted for in rewards and their career
opportunities. Thus, Burger King’s corporate social responsibility strategy effectively
integrates the interests of employees as stakeholders.
Communities. Burger King recognizes the importance of communities as stakeholders.
The interest of this stakeholder group is support for community development.
Communities are significant in impacting Burger King in terms of their influence on
consumer perception and employee perception. The firm addresses these interests
through the Burger King McLamore Foundation. For example, the foundation offers
funds for educational and related programs in communities. Based on these
considerations, Burger King’s corporate social responsibility efforts suitably include a
major arm for community development to address the interests of this stakeholder
group.

Investors. Every business considers investors as a stakeholder group. These

stakeholders are interested in Burger King’s higher financial performance. Investors are
significant because they affect the availability of capital to the business. In Burger King’s
case, these interests are recently more effectively addressed after the company’s
merger with Tim Hortons of Canada in 2014. Burger King’s financial performance has
significantly improved following the merger. Thus, the company’s corporate social
responsibility strategy fulfills the concerns and interests of investors as a major
stakeholder group.

Burger King’s CSR Performance in Addressing

Stakeholders’ Interests
Burger King’s corporate social responsibility activities are designed to satisfy the
interests of the firm’s major stakeholders. The approach that prioritizes customers is
appropriate in supporting the company’s aim to grow its market share. However, CSR
efforts for communities are an area of improvement for Burger King. For example, the
company can implement non-educational programs, such as livelihood programs to
boost community development.

Burger King’s Marketing Mix (4Ps) Analysis

UPDATED ONUPDATED ON FEBRUARY 6, 2017 BY ROBERTA GREENSPAN
 Burger King
products served at one of its Hong Kong restaurants. Burger King’s marketing mix (4Ps)
appropriately supports the company’s global market leadership goals. (Photo: Public
Domain)
Burger King uses its marketing mix (4Ps) as a response to the dynamic and saturated
condition of the global quick service restaurant industry. The marketing mix is a
combination of strategies and tactics to effectively implement a marketing plan. In this
case, Burger King’s marketing mix aims to maximize competitiveness against a wide
variety of players. However, major firms like McDonald’s and Wendy’s are in the focus
of Burger King’s marketing mix efforts. These efforts support the company’s long-term
goal of achieving the top position in the fast food restaurant industry.

Burger King’s marketing mix (4Ps) facilitates business competitiveness. The

corresponding strategies and tactics directly enable the company to address issues
related to aggressive competition.

Burger King’s Products (Product Mix)

Burger King operates as a quick service restaurant business focusing on burgers as its
main product. This component of the marketing mix presents organizational outputs
offered to target customers. Burger King’s main product lines are as follows:

1. Burgers
2. Chicken and fish
3. Sides
4. Salads and veggies
5. Beverages
6. Sweets/Desserts
 Aside from the main product line of burgers, Burger King also offers chicken and fish as
alternatives. The sides include fries, nuggets, onion rings, and hash browns. Burger
King also has a number of salads, such as MorningStar Veggie Salad and Chicken
Caesar Salad. The beverages include sodas, smoothies, iced tea, juices, milk, water,
coffee, and frappes. Burger King’s desserts and sweets include Dutch Apple Pie, Oreo
Shake, and Caramel Sundae. In addition, the company bundles its products as value
meals and kids meals. In this component of the marketing mix, Burger King has a
limited approach, as manifested in its limited product mix. Nonetheless, this product mix
supports Burger King’s generic strategy through economies of scale from large-scale
production of a limited number of product lines.

Place/Distribution in Burger King’s Marketing Mix

Burger King’s products are available at its restaurants worldwide. This component of the
marketing mix refers to the venue that firms use to transact with target customers. The
following are the places Burger King uses to distribute its products:

1. Restaurants
2. Mobile app
3. Website for deliveries

Aside from restaurants, customers can use Burger King’s mobile app to access
coupons for special offers and freebies. Customers can also use the company’s website
to place their orders for home deliveries. In this component of the marketing mix, Burger
King relies mainly on the physical presence of its restaurants.

Burger King’s Promotion (Promotional Mix)

Burger King employs various tactics to promote its products. This component of the
marketing mix covers the tactics used to communicate with the target market about the
firm’s offers. Burger King uses the following promotion/marketing communications
tactics, arranged according to significance:

1. Advertising
2. Sales promotions
3. Personal selling
4. Public relations

Burger King relies mainly on advertising to promote its products. The company
advertises online and on TV and print media. In addition, Burger King uses sales
promotions in the form of coupons and other offers through its website and mobile app.
The firm’s restaurant personnel also typically use personal selling to encourage
customers to buy more products from the menu, such as desserts in addition to what
the customer already ordered. In applying public relations, the Burger King McLamore
 Foundation gives scholarships and financial assistance for educational programs,
thereby also effectively promoting and strengthening the Burger King brand. The
company successfully combines various promotion tactics to address this component of
the marketing mix.

Burger King’s Prices and Pricing Strategy

Burger King’s pricing strategy is based mainly on its generic strategy of cost leadership,
which minimizes costs and prices. In this component of the marketing mix, appropriate
pricing of products is considered. Burger King’s pricing strategies are as follows:

1. Market-oriented pricing strategy

2. Bundle pricing strategy

Burger King uses market-oriented pricing strategy as its primary approach to pricing.
This pricing strategy involves setting prices based on prevailing market conditions,
including supply and demand conditions as well as the pricing of competing firms.
Burger King’s secondary pricing approach is the bundle pricing strategy. For example,
customers can buy value meals and kids meals at bundle prices that are more
affordable than buying food items separately. This component of the marketing mix
shows that Burger King mainly considers market conditions to determine its prices.

Burger King PESTEL/PESTLE Analysis &

Recommendations
UPDATED ONUPDATED ON FEBRUARY 6, 2017 BY DANIEL KISSINGER

A Burger King
restaurant in Moscow, Russia. Burger King’s PESTEL/PESTLE analysis shows external
 factors highlighting growth and expansion, technological innovation, product
improvement, and business sustainability. (Photo: Public Domain)
Burger King strives to become the top player in the quick service/fast food restaurant
industry. To do so, the company must strategically address the main issues highlighted
in this PESTEL/PESTLE analysis. The PESTEL/PESTLE analysis framework identifies
the most significant factors in the firm’s remote or macro-environment. In Burger King’s
case, these external factors include the influences of governmental and
nongovernmental organizations, as well as trends or changes in technologies, among
others. Effectiveness in addressing these issues raised in the PESTEL/PESTLE
analysis helps optimize Burger King’s global business performance in the long-term.

Burger King’s long-term performance partly depends on the company’s success in

strategically addressing the issues identified in this PESTEL/PESTLE analysis. The
external factors in the remote or macro-environment of the fast-food restaurant industry
are significant influences on Burger King’s global business.

Political Factors Affecting Burger King’s Business

Political conditions are determinants of business performance. This part of the
PESTEL/PESTLE analysis identifies governmental influence on firms’ remote or macro-
environment. In Burger King’s case, the following are the main political external factors:

1. Governmental support for globalization (opportunity)

2. Political stability in major markets (opportunity)
3. Governmental support for e-commerce (opportunity)

Governments continually support globalization. Burger King can take advantage of this
condition through global expansion. Also, the external factor of political stability helps
reduce challenges to the company’s growth and expansion. In addition, Burger King can
improve its e-commerce capabilities. In this part of the PESTEL/PESTLE analysis, the
external factors present significant opportunities for Burger King to grow and expand
internationally.

Economic Factors Important to Burger King

Economic conditions directly affect Burger King’s remote or macro-environment. This
part of the PESTEL/PESTLE analysis outlines the economic changes and trends that
influence business performance. The following are the main economic external factors
that affect Burger King:

1. Expanding international trade agreements (opportunity)

2. Economic stability of the U.S. (opportunity)
3. High economic growth in developing markets (opportunity)
 As countries implement more and expanded international trade agreements, Burger
King can grow through global supply chain enhancements. Also, U.S. economic stability
enables the company to gradually grow in the country. In relation, Burger King has the
opportunity to rapidly expand in developing economies. These conditions show that, in
the political dimension of the PESTEL/PESTLE analysis model, Burger King must focus
on external factors that present opportunities for growth and expansion, especially in
developing economies.

Social/Sociocultural Factors Influencing Burger King’s

Business Environment
Burger King must always account for sociocultural influences in its remote/macro-
environment. The social trends and changes and their effects on consumers and
employees are considered in this part of the PESTEL/PESTLE analysis. The main
sociocultural external factors affecting Burger King are as follows:

1. Increasing consumer diversity (opportunity)

2. Higher health consciousness (threat & opportunity)
3. Increasing support for animal rights (threat & opportunity)

The increasing population diversity presents the opportunity for Burger King to innovate
its products to attract consumers of various backgrounds. Higher health consciousness
threatens demand for Burger King’s products, which are sometimes criticized as
unhealthful. However, the company has the opportunity to improve the healthfulness of
its products. Animal rights advocacy continues to attract attention, threatening the main
products of Burger King. Still, the firm can implement new supply chain policies to
address concerns on animal rights and welfare. This part of the PESTEL/PESTLE
analysis points to Burger King’s opportunities to improve despite the threats linked to
sociocultural external factors.

Technological Factors in Burger King’s Business

Burger King’s business partly relies on technologies. In this dimension of the
PESTEL/PESTLE analysis, technologies and related trends are considered in terms of
their influence on the remote or macro-environment of the firm. The following are the
major technological factors affecting Burger King:

1. Higher availability of automation technologies (opportunity)

2. Higher popularity of mobile technologies (opportunity)
3. Low R&D activity in the quick service restaurant industry (opportunity)

More automation technologies are now available for businesses. Burger King can apply
these technologies to improve operational efficiency. Also, the company can tap mobile
users to gain a bigger market share. Relative to the low R&D activity in the fast food
 restaurant industry, Burger King has the opportunity to boost its R&D investments to
improve performance. In this part of the PESTEL/PESTLE analysis, Burger King has
major opportunities for performance improvements based on technological external
factors.

Ecological/Environmental Factors
The environment can impose limits to Burger King’s business. This dimension of the
PESTEL/PESTLE analysis covers the impact of ecological conditions on firms’ remote
or macro-environment. In the case of Burger King, the following are the most notable
ecological external factors:

1. Climate change (threat)

2. Emphasis on business sustainability (opportunity)
3. Increasing popularity of low-carbon lifestyles (opportunity)

Climate change threatens to reduce the stability of Burger King’s supply chain.
However, the company has the opportunity to improve its sustainability status. Also,
Burger King has the opportunity to improve efficiency to attract consumers who
advocate low-carbon lifestyles. The ecological external factors in this dimension of the
PESTEL/PESTLE analysis indicate that Burger King can realistically work on
sustainability and efficiency.

Legal Factors
Burger King must comply with legal requirements. The effects of legal systems on firms
and their remote or macro-environment are considered in this part of the
PESTEL/PESTLE analysis. The major legal external factors influencing Burger King are
as follows:

1. Import and export regulation (opportunity)

2. Environmental protection laws (opportunity)
3. GMO regulation (threat)

Burger King has the opportunity to grow based on import and export regulations that
support new international trade agreements. Also, the company can enhance its
sustainability performance to exceed expectations and requirements based on
environmental protection laws. However, GMO regulations, especially in Europe, limit
the performance of Burger King, considering the widespread availability of GMO
ingredients used in the industry. This dimension of the PESTEL/PESTLE analysis
emphasizes growth and sustainability based on legal external factors.
 Burger King’s PESTEL/PESTLE Analysis –
Recommendations
Burger King’s PESTEL/PESTLE analysis raises various issues, not all of which can be
realistically addressed. With regard to the remote or macro-environment of the fast food
restaurant industry, Burger King must prioritize the following concerns:

1. Growth and expansion, especially in developing markets

2. E-commerce and mobile transactions
3. Product improvement for health-conscious consumers
4. Business sustainability

Burger King’s Five Forces Analysis (Porter’s

Model)
UPDATED ONUPDATED ON FEBRUARY 6, 2017 BY LAWRENCE GREGORY

A Burger King at the

Oulu Central Square, Finland. The Five Forces analysis shows that Burger King must
prioritize competition, consumer concerns, and the impact of new firms in addressing
external factors in the fast food restaurant industry environment. (Photo: Public Domain)
Burger King is one of the top competitors in the global quick service/fast-food restaurant
market. The company directly competes against firms like Wendy’s and McDonald’s. To
ensure competitiveness, Burger King must address issues pointed out in its Five Forces
analysis. Michael Porter developed the Five Forces analysis model to determine
external factors that influence firms’ performance. In Burger King’s industry
environment, the influences of major competitors are just one of the main
considerations. Based on the Five Forces analysis model, Burger King must also
consider strategic issues linked to suppliers, consumers, new entrants, and substitutes.
 This Five Forces analysis of Burger King shows that competition, customers and new
entrants are the most important external factors in the quick service restaurant industry
environment. Burger King’s strategies must account for and address these forces.

Overview: Burger King’s Five Forces Analysis

Burger King’s business is under the influence of external factors. The Five Forces
analysis model considers the factors that most significantly affect the business. In the
quick service/fast food restaurant industry environment, the intensities of the Five
Forces on Burger King are as follows:

1. Competitive rivalry or competition (strong force)

2. Bargaining power of buyers or customers (strong force)
3. Bargaining power of suppliers (weak force)
4. Threat of substitutes or substitution (strong force)
5. Threat of new entrants or new entry (moderate force)

Recommendations. Considering the intensities of the five forces, it is suitable for

Burger King to focus on competition, customers, and the threat of new entrants. To
address the force of competition, Burger King can implement more aggressive
marketing. To attract and retain customers, the company can improve its product
quality. In addition, to counteract the threat of new entrants, Burger King can improve its
brand image to maintain high performance despite saturation in the fast food restaurant
industry environment.

Competitive Rivalry or Competition with Burger King

(Strong Force)
Burger King competes with major firms like McDonald’s and Wendy’s. The degree of
competition is examined in this aspect of the Five Forces Analysis model. The following
are the main external factors that create the strong force of competitive rivalry against
Burger King:

 High number of competitors (strong force)

 High variety of firms (strong force)
 Low switching costs (strong force)

The quick service restaurant market is saturated with firms of different sizes. Burger
King must also consider the variety of firms in terms of types of products, market focus,
and other characteristics. In addition, competitive rivalry is strong partly because of the
low switching costs, which correspond to customers’ ease in transferring from Burger
King to other firms. This aspect of the Five Forces analysis shows that competition is a
main concern in Burger King’s business.
 Bargaining Power of Burger King’s Customers/Buyers
(Strong Force)
Consumers significantly affect Burger King’s performance and the quick service
restaurant industry environment. This aspect of the Five Forces Analysis model
explores the influence of customers on firms. The main external factors that lead to the
strong bargaining power of Burger King’s customers are as follows:

 Low switching costs (strong force)

 High substitute availability (strong force)
 Moderate presence of consumer organizations (moderate force)

The low switching costs correspond to the ease of transferring from Burger King to other
companies. This condition empowers customers to make decisions that directly affect
Burger King’s business. In addition, there are many substitutes to Burger King’s
products, thereby giving consumers more choices. The presence of consumer
organizations, such as Consumers Union and Better Business Bureau, further increases
the bargaining power of buyers. Burger King must consider customers’ demands as one
of its main business concerns, as indicated in this aspect of the Five Forces analysis.

Bargaining Power of Burger King’s Suppliers (Weak

Force)
Suppliers affect the quick service restaurant industry environment through variables like
pricing and supply control. The impact of suppliers on firms like Burger King is
considered in this aspect of the Five Forces analysis. The following are the major
external factors that create the weak bargaining power of Burger King’s suppliers:

 High number of suppliers (weak force)

 High overall supply (weak force)
 Low forward integration (weak force)

There are many suppliers that compete to provide their products to firms like Burger
King. In relation, there is an abundance of supply of raw materials and ingredients.
These conditions limit the influence of suppliers on Burger King and other fast food
restaurant firms. Also, most suppliers in this industry have low forward integration,
which corresponds to their degree of control on the distribution and sale of their
products to companies like Burger King. Based on this aspect of the Five Forces
analysis, suppliers’ bargaining power is the least of Burger King’s concerns.

Threat of Substitution or Substitutes to Burger King

(Strong Force)
 Substitutes technically compete against Burger King’s products. This aspect of the Five
Forces Analysis model determines the influence of substitution in the fast food
restaurant industry environment. In Burger King’s case, the following are the main
external factors that contribute to the strong threat of substitution:

 Low switching costs (strong force)

 High availability of substitutes (strong force)
 Satisfactory performance of substitutes (strong force)

Customers can easily transfer from Burger King to substitutes (low switching costs). In
addition, there are many substitutes to choose from, including fine dining restaurants
and home cooking. These conditions strengthen the threat of substitution against
Burger King. Also, most of these substitutes are satisfactory in terms of taste, cost,
quality, and other criteria. This aspect of the Five Forces analysis indicates that
substitutes significantly affect Burger King’s business.

Threat of New Entrants or New Entry (Moderate Force)

New entrants can disrupt the performance of Burger King. The effects of new entry on
the fast food restaurant industry environment are examined in this aspect of the Five
Forces analysis. The external factors that lead to the moderate threat of new entrants
against Burger King are as follows:

 Low switching costs (strong force)

 Moderate cost disadvantage (moderate force)
 Moderate cost of doing business (moderate force)

Again, the low switching costs indicate that it is easy for consumers to transfer from
Burger King to new firms (new entrants). However, new entrants face moderate cost
disadvantage because large firms like Burger King benefit from economies of scale that
many new firms do not have. Also, the moderate cost of doing business could pose a
financial challenge to new entrants. Based on this aspect of the Five Forces analysis,
the threat of new entrants is a considerable issue in Burger King’s business.

Burger King SWOT Analysis &

Recommendations
UPDATED ONUPDATED ON FEBRUARY 6, 2017 BY ANDREW THOMPSON
 A Burger King at
College Street, Toronto, Canada. Burger King’s SWOT analysis shows that
diversification, service quality and innovation are the most significant concerns in the
business. (Photo: Public Domain)
Burger King’s ability to keep its position as one of the biggest players in the quick
service/fast food restaurant industry is partly based on the business strategic balance
shown in this SWOT analysis. The SWOT analysis model examines the strengths,
weaknesses, opportunities and threats most significant to the firm. As a food service
business, Burger King must use its strengths to compete against giants like
McDonald’s. In addition, the company must consider the threats and risks linked to the
global fast food restaurant market. It is expectable that Burger King will remain one of
the major players in this market.

This SWOT analysis of Burger King indicates the company’s need for product
diversification, quality enhancement, and product innovation.

Burger King’s Strengths (Internal Strategic Factors)

Burger King’s strengths are based on the company’s business capabilities. This part of
the SWOT analysis determines the internal strategic factors that create business
capacity for continued development. Burger King’s main strengths are as follows:

1. Strong brand image

2. High market penetration
3. Moderate differentiation of products

Burger King has one of the strongest brands in the industry. This condition makes it
easier for the company to open new restaurants and introduce new products. Higher
market penetration is a strength based on the large number of Burger King restaurants
across the globe. Also, Burger King’s moderate differentiation (e.g., grilled burgers) is a
 strength that allows the company to ensure uniqueness of some of its products. In this
part of the SWOT analysis, Burger King’s strengths are mainly based on branding and
market penetration.

Burger King’s Weaknesses (Internal Strategic Factors)

Burger King’s weaknesses are linked to its business model and general strategic
approaches. The internal strategic factors that reduce or limit the firm’s effectiveness
are identified in this part of the SWOT analysis. The following are Burger King’s main
weaknesses:

1. Easily imitable business

2. Limited product mix
3. Low control on franchise model

Even though Burger King has moderate differentiation, one of its weaknesses is that its
business model and products are easily imitated. For example, other firms could offer
similar grilled burgers. Also, Burger King’s limited product mix is a weakness because it
prevents the company from attracting customers looking for more options. In addition,
even though Burger King grew internationally through franchising, the franchising model
is a weakness because it limits corporate control on franchisees’ approaches to
management. In this part of the SWOT analysis, the limited product mix is the weakness
that Burger King can most easily address.

Opportunities for Burger King (External Strategic

Factors)
The opportunities for Burger King present options for business growth and
development. This part of the SWOT analysis shows the external strategic factors that
the firm can use to improve its performance. Burger King’s opportunities are as follows:

1. Diversification/product mix widening

2. Market development
3. Service quality improvement

Burger King has the opportunity to widen its product mix by adding new product lines to
attract more customers. Also, the company could establish new businesses or
subsidiaries as part of market development to gain more revenues while reducing the
effects of market risks. In addition, Burger King has the opportunity to increase service
quality as a way of differentiating its business from competitors like McDonald’s. In this
part of the SWOT analysis, Burger King’s opportunities require new strategies,
especially for diversification and market development.
 Threats Facing Burger King (External Strategic
Factors)
The threats against Burger King emphasize market conditions. The external strategic
factors that limit or reduce business performance are shown in this part of the SWOT
analysis. The following are the main threats against Burger King:

1. Aggressive competition
2. Imitation
3. Healthy lifestyles trend

Burger King faces the threat of aggressive competition, considering other firms like
McDonald’s and Wendy’s. The company’s business model is also imitable, leading to
the threat of imitation by new entrants. In addition, the healthy lifestyles trend is a threat
because Burger King’s products are criticized as unhealthy. In this part of the SWOT
analysis, Burger King can easily address the threats of aggressive competition and the
healthy lifestyles trend.

Burger King’s SWOT Analysis – Recommendations

Burger King’s current focus is on market penetration, with a considerable degree of
product innovation. However, based on this SWOT analysis, the company needs to
adjust some of its strategies to maintain competitiveness. Burger King can implement
the following recommended strategic adjustments to address some of its most
significant concerns:

1. Diversify/widen product mix to address current product mix limits

2. Increase service quality
3. Improve products to address the healthy lifestyles trend

Burger King’s Organizational Culture

Characteristics
UPDATED ONUPDATED ON FEBRUARY 6, 2017 BY JUSTIN YOUNG
 A Burger King
restaurant in Elyria, Ohio. Burger King’s organizational culture supports high productivity
and performance. (Photo: Public Domain)
Burger King maintains an organizational culture that supports high performance among
employees. A firm’s organizational culture is the set of values, traditions and habits that
influence the behaviors of workers. Burger King’s market position as one of the biggest
quick service/fast food restaurant chains in the world is partly based on its culture of
performance. The company keeps employees aligned to this organizational culture to
ensure a unified approach in developing human resources. Such an approach ensures
that Burger King leverages the synergy achievable through unified efforts to push global
business performance further.

Burger King’s organizational culture puts emphasis on attitude and performance, while
ensuring an enjoyable workplace and compliance to rules.

Features of Burger King’s Organizational Culture

Burger King’s organizational culture is based on the company’s goal of continued global
growth, especially following the completion of its merger with Tim Hortons in 2014. The
following are the main characteristics of Burger King’s organizational culture:

1. Bold and empowered

2. Accountable
3. Fun
4. Meritocratic and performance-driven

Bold and Empowered. Burger King’s organizational culture empowers employees to

achieve high performance. This feature of the corporate culture allows a certain degree
of flexibility and autonomy among employees. Different levels of Burger King’s
organizational structure have their corresponding levels of autonomy. As such, the
organizational culture allows Burger King to maintain the resilience needed for
continued global growth.

Accountable. Burger King’s employees are accountable for their actions. This
characteristic of the company’s organizational culture ensures that, with autonomy,
employees follow the rules and face the consequences of their decisions. Thus, Burger
King’s organizational culture contributes to product/service consistency, while also
minimizing errors or deviations in employees’ actions.

Fun. This feature of Burger King’s organizational culture focuses on employee morale.
An enjoyable and fun workplace also reduces employee turnover, which has significant
effects on the company’s financial performance. Through this organizational culture,
Burger King manages to attract and keep qualified workers. The company applies the
fun factor through management approaches as well as benefits and incentives in the
compensation system.

Meritocratic and Performance-Driven. Burger King’s organizational culture

encourages employees to maintain high performance. This characteristic of the
organizational culture is aligned with the company’s policy of using performance-based
appraisals. In this way, Burger King’s employees know and rightly expect that having
better performance could improve their career options in the company.

Burger King’s Organizational Culture: Advantages &

Disadvantages
The primary advantage of Burger King’s organizational culture is its support for high
performance, which is emphasized through meritocracy and empowerment. The
empowerment and autonomy are motivating factors for high performance among
employees. The accountability characteristic also ensures that, even with autonomy and
flexibility, errors and related unnecessary costs are minimized. However, while Burger
King’s organizational culture is strongly manifested in corporate offices, it has only
limited implementation in the restaurants. This disadvantage is due to the nature of
franchising. Franchisees have varying approaches to implement this organizational
culture in Burger King restaurants.

Burger King’s Organizational Structure

Analysis
UPDATED ONUPDATED ON SEPTEMBER 8, 2018 BY NATHANIEL SMITHSON
 A Burger King
restaurant in Kuwait. Burger King’s organizational structure changes to support high
global business performance. (Photo: Public Domain)
Burger King’s organizational structure has changed through the years, especially
because of leadership and ownership transitions. A company’s organizational structure
defines the composition and system used for its business activities. Burger King must
adjust its corporate structure over time to address changes in its business environment.
As one of the biggest quick service/fast food restaurant chains in the world, Burger King
has recently improved its performance through reforms in its organizational structure.
The company was reorganized as a result of its merger with the Canadian firm Tim
Hortons in 2014. This reorganization led to major changes in Burger King’s
organizational structure to suit new strategies to grow the business globally.

Burger King’s organizational structure is based on a centralized approach that aims to

establish control and increase management effectiveness. Burger King has experienced
growth following reorganization, indicating the suitability of its current structure.

Features of Burger King’s Organizational Structure

Burger King has a centralized functional organizational structure. Burger King merged
with Tim Hortons to form Restaurant Brands International (RBI) in 2014. The company
changed its structure in the process. At present, Burger King’s organizational structure
has the following main characteristics:

1. Global centralization
2. Functional groups
3. Geographic divisions

Global Centralization. This characteristic of Burger King’s organizational structure

maintains a core management team that makes most of the major decisions for the
 global organization. In 2001, then CEO John Dasburg reformed Burger King’s
organizational structure from a decentralized one to a globally centralized structure. The
purpose of this change was to ensure that the new organizational structure supported
Burger King’s efforts in improving management effectiveness and business
performance.

Functional Groups. Burger King’s organizational structure has function-based groups

that span the global organization. This feature of the organizational structure refers to
basic business functions like human resource management, legal, and IT. For example,
Burger King has a Senior Vice President (SVP) for Global Operations, an Executive
Vice President (EVP) for Finance, and an EVP who functions as the Global Chief
Marketing Officer.

Geographic Divisions. Despite the reorganization efforts in 2001 and 2014, Burger
King’s organizational structure has geographic divisions as a tertiary characteristic. This
feature of the organizational structure divides operations according to their geographic
locations. For example, the following are Burger King’s geographic divisions, each of
which is headed by an Executive Vice President:

1. North America
2. Europe, Middle East and Africa
3. Latin America and the Caribbean
4. Asia Pacific

Burger King’s Organizational Structure Advantages &

Disadvantages
Burger King’s organizational structure has the advantage of strong global control
because of the centralization and functional group characteristics. In addition, the
geographic divisions are a feature that enables Burger King to maintain a certain degree
of flexibility to address market differences. However, the main disadvantage of Burger
King’s organizational structure is that the centralization feature limits the flexibility of
geographic divisions to immediately respond to regional or local market changes and
trends.

Burger King’s Generic & Intensive Growth

Strategies
UPDATED ONUPDATED ON FEBRUARY 6, 2017 BY LAWRENCE GREGORY
 A Burger King
restaurant in Orihuela Costa, Spain. Burger King’s generic strategy for competitive
advantage (Porter’s model) is aligned with its intensive growth strategies to ensure
global growth. (Photo: Public Domain)
Burger King’s success as one of the biggest fast food restaurant chains in the world is
linked to its effectiveness in applying its generic strategy for competitive advantage.
Burger King’s intensive growth strategies are also major contributors to the firm’s global
growth. In this regard, the proper combination and implementation of generic and
intensive strategies can lead to significant competitive advantage and growth in global
business. Burger King’s generic strategy supports its competitive advantage based on
cost, pricing, and product features. On the other hand, increasing market share is the
main thrust of Burger King’s intensive growth strategies.

Burger King’s generic strategy represents the company’s current and potential
competitive advantage. The intensive growth strategies are indicative of Burger King’s
approach to continue its global growth in the fast food/quick service restaurant industry.

Burger King’s Generic Competitive Strategy (Porter’s

Model)
Burger King uses two generic strategies for competitive advantage: cost leadership and
broad differentiation. The company’s primary generic competitive strategy is cost
leadership. According to Michael Porter’s model, this generic strategy involves
minimizing costs, which leads to low prices. Burger King applies cost leadership through
standardization of processes to minimize costs based on economies of scale and error
prevention. A strategic financial objective based on this generic competitive strategy is
to reduce operating costs so that Burger King’s products could be offered at lower
prices.

Burger King also uses broad differentiation as its secondary generic strategy for
competitive advantage. Based on Porter’s model, this generic strategy requires creating
unique characteristics to differentiate the business from other firms. Burger King applies
this generic competitive strategy through grilling of burger patties. Also, the former
slogan “Have It Your Way” and current slogan “Be Your Way” represent Burger King’s
broad differentiation in terms of offering flexible options to its customers. Free drink
refills are also offered in many of Burger King’s restaurants. A strategic objective based
on this generic competitive strategy is for Burger King to use such differentiation to
attract new customers, especially in new markets where major competitors are already
established.

Burger King’s Intensive Strategies (Intensive Growth

Strategies)
Market Penetration. Burger King’s primary intensive growth strategy is market
penetration. The goal of this intensive strategy is to grow revenues from existing
customers or markets where the firm already has operations. For example, Burger King
implements this intensive growth strategy by opening new restaurants in its current
markets to get a bigger market share. A strategic objective connected to this intensive
growth strategy is to expand Burger King’s franchise network. In relation, Burger King’s
generic strategy also supports this intensive strategy by highlighting unique product
features to penetrate markets and grow the business.

Market Development. Market development is Burger King’s secondary intensive

growth strategy. To support business growth, this intensive strategy involves entering
new markets or targeting new market segments. For example, Burger King implements
this intensive growth strategy by opening new stores in overseas locations where it
does not have operations. However, this strategy is only secondary or minor in Burger
King’s business because the company already has operations in most markets around
the world. A strategic objective for this intensive strategy is to grow Burger King by
attracting new customers in new markets based on low prices. Thus, this strategic
objective emphasizes low prices in Burger King’s pricing strategy, which is supported
through the cost leadership generic strategy.

Product Development. Product development is the least significant of Burger King’s

intensive growth strategies. This intensive strategy enables the company to grow
through the introduction of new products. Burger King only minimally implements this
intensive strategy. For example, the company introduces new products at a slow rate.
Most of Burger King’s products remain on the menu for years. A strategic objective
linked to this intensive strategy is to grow Burger King’s business through product
innovation. This intensive growth strategy supports Burger King’s generic strategy of
broad differentiation by highlighting new products that are unique compared to those of
competing firms.
Burger King’s Vision Statement & Mission
Statement
UPDATED ONUPDATED ON FEBRUARY 6, 2017 BY CHRISTINE ROWLAND

A Burger King in
Richmond Hill, Ontario, Canada. Burger King Corporation’s vision statement and
mission statement pertain to the company’s goals and operations. (Photo: Public
Domain)
Burger King’s vision statement is based on the original aims of the company’s founders.
A firm’s vision statement guides the organizational development of the business. Burger
King’s corporate vision statement emphasizes excellence and being the best in the
industry. On the other hand, Burger King’s corporate mission statement is directly linked
to the company’s operations. A firm’s mission statement specifies the activities needed
to succeed in the business. In Burger King’s case, the mission statement emphasizes
pricing, service and ambiance to attract customers. In this regard, the vision and
mission statements of Burger King are bases for developing strategies and policies to
move the organization toward long-term leadership and success in the quick service
restaurant industry.

Burger King’s mission statement and vision statement contribute to effective strategic
formulation. Such contribution ensures Burger King’s market position as one of the
biggest quick service restaurant chains in the world.

Burger King’s Vision Statement

Burger King’s vision statement is “to be the most profitable QSR business, through
a strong franchise system and great people, serving the best burgers in the
world.” This vision statement directs Burger King to achieve leadership in the global
quick service restaurant (QSR) industry or fast food industry. The vision statement has
the following main points regarding Burger King’s business:
1. Most profitable QSR business
2. Franchise system
3. Great people
4. Best burgers in the world

Burger King’s vision statement shows that the company aims to achieve the leading
position in the quick service (fast food) restaurant industry. At present, McDonald’s
holds this top position. The vision statement also indicates that Burger King uses a
franchise system to grow. Great people and the best burgers are offered to attract one
of the biggest market shares in the industry. Thus, Burger King’s vision statement
establishes the nature of the business and its direction toward global market leadership.

Burger King’s Mission Statement

Burger King’s mission statement is to “offer reasonably priced quality food, served
quickly, in attractive, clean surroundings.” This mission statement indicates the kind
of outputs expectable from the organization. With regard to Burger King’s business, this
mission statement has the following main points:

1. Reasonable prices
2. Quality food
3. Quick service
4. Attractive, clean surroundings

To achieve the top position stated in its vision statement, Burger King must follow the
points in its mission statement. The mission statement shows that the company uses
market-based pricing to entice customers. However, Burger King’s main selling point is
the quality of its food and service. The surroundings add to the ambiance that keeps
customers coming back to Burger King restaurants. These characteristics are mostly
consistent in all of the company’s restaurants around the world. Thus, Burger King’s
mission statement establishes the basics for pricing, quality, and facility design for the
business.