STRATEGIC PLAN OF BURGER KING

Presented to

Polytechnic University of the Philippines

n partial Fulfillment of the

Requirements
For the degree of Bachelor
of Science in
Business Administration
Major in Financial
Managemen
n partial Fulfillment of the
Requirements
For the degree of Bachelor
of Science in
Business Administration
Major in Financial
Managemen
n partial Fulfillment of the
Requirements
For the degree of Bachelor
of Science in
Business Administration
Major in Financial
Managemen
n partial Fulfillment of the
Requirements
For the degree of Bachelor
of Science in
Business Administration
Major in Financial
Managemen
n partial Fulfillment of the
Requirements
For the degree of Bachelor
of Science in
Business Administration
Major in Financial
Managemen
n partial Fulfillment of the
Requirements
For the degree of Bachelor
of Science in
Business Administration
Major in Financial
Managemen
n partial Fulfillment of the
Requirements
For the degree of Bachelor
of Science in
Business Administration
Major in Financial
Manageme
In partial Fulfillment of the RequirementsFor the degree of
Bachelor of Science in Tourism Management Open University

SUBMITTED TO: PROF.RONALYN JOY CANCERAN

SUUBMITTED BY : MARLON R.EDOMAY
COURSE/YR:BSTMOU 3B

BURGER KING
Company Overview and
Current Performance:
 Burger King
Corporation, restaurant
company specializing in
flame-
broiled fast food hamburgers. It
is the second largest hamburger
chain the United
States, after McDonald’s. In the
early 21st century, Burger King
claimed to have
about 14,000 stores in nearly
100 countries. Headquarters are
in Miami, Florida.
According to the company,
Burger King was started in
1954 by James W.
McLamore and David Edgerton
in Miami. Other sources,
however, trace Burger
King back to Insta-Burger King,
a venture founded in
Jacksonville, Florida, by
Keith Kramer and Matthew
Burns in 1953. McLamore and
Edgerton sold their
first franchises in 1959, and
Burger King soon became a
national chain. The
company expanded ouside the
United States in 1963 with a
store in Puerto Rico.
A large hamburger called the
Whopper is Burger King’s
signature product.
The Whopper was introduced in
1957, at a time when its
competitor McDonald’s
was still selling only small
hamburgers. The chain took a
new direction by adding
hot dogs to the menu in 2016
BURGER KING

Company Overview
 Burger King Corporation, restaurant company specializing in
flame-broiled fastfood hamburgers. It is the second largest hamburger
chain the UnitedStates, after McDonald’s. In the early 21st century, Burger
King claimed to haveabout 14,000 stores in nearly 100 countries.
Headquarters are in Miami, Florida.According to the company, Burger King
was started in 1954 by James W.McLamore and David Edgerton in Miami.
Other sources, however, trace BurgerKing back to Insta-Burger King, a
venture founded in Jacksonville, Florida, byKeith Kramer and Matthew
Burns in 1953. McLamore and Edgerton sold theirfirst franchises in 1959,
and Burger King soon became a national chain. Thecompany expanded
ouside the United States in 1963 with a store in Puerto Rico.A large
hamburger called the Whopper is Burger King’s signature produc. The
Whopper was introduced in 1957, at a time when its competitor
McDonald’swas still selling only small hamburgers. The chain took a new
direction by addinghot dogs to the menu in 2016

Number of Burger King restaurants worldwide 2009-2021

 Globally famous quick service restaurant chain Burger King operated
and franchised a total of 19,247 restaurants worldwide in 2021. The vast
majority of these were franchised- 19,196, to be precise. Only 51 units
remain company-operated as more and more were replaced with
franchised stores over the past ten years.

Growth of Burger King

Even though Burger King has
reduced its number of company-
operated
restaurants, the overall number
of locations has steadily
increased since 2009.
The worldwide expansion of
the Florida-based company has
contributed to it
being amongst the most
valuable quick service brands in
the world with a brand
value of over six billion U.S.
dollars in 2020. In accordance
with growing numbers
of locations, the revenue of
Burger King has also seen
growth in the past 4
years, after gradually
diminishing in the years before
that. However, due to the
impact of the coronavirus
(COVID-19) pandemic on
the restaurant chain's
operations, Burger King's
revenue declined in 2020
compared to the previous
year
Growth of Burger King
Even though Burger King has reduced its number of company-
operated restaurants, the overall number of locations has steadily
increased since 2009.The worldwide expansion of theFlorida-based
company has contributed to itbeing amongst the most valuable quick
service brands in the world with a brandvalue of over six billion U.S. dollars
in 2020. In accordance with growing numbersof locations, the revenue of
Burger King has also seen growth in the past 4years, after gradually
diminishing in the years before that. However, due to theimpact of the
coronavirus (COVID-19) pandemic on the restaurant
chain'soperations, Burger King'srevenue declined in 2020 compared to
the previous year.
Satisfaction remains unchanged
Despite the increase in
locations and fluctuations in
revenue, Burger
King’s score on the
American Customer
Satisfaction Index (ACSI)
remains
steady. The restaurant chain
scored 76 points out of a
possible 100 points in
2020, in overall customer
satisfaction. Comparatively,
competitor McDonald’s
only scored 70 points in the
same period
Satisfaction remains unchanged
Despite the increase in locations and fluctuations in
revenue, BurgerKing’s score on the American Customer Satisfaction
Index (ACSI) remains steady. The restaurant chain scored 76 points out of
a possible 100 points in 2020, in overall customer
satisfaction.Comparatively, competitor McDonald’sonly scored 70 points
in the same period..

Almost 50% branches of Burger

King outside the United States
This is a list of countries
with Burger King
Franchises. Burger
King (BK) itself began as a
franchise of its progenitor
company, Insta-Burger
King. It grew in the United
States using a combination of
corporate locations and
franchising, before divesting
itself of its corporate holdings
in 2013. It began its
international expansion in 1969
with a location in Canada,
followed by Australia
in 1971, and Europe in 1975.
Latin America and South
America became part of
its market later in that decade,
Asia followed in the 1980s, and
Northern Africa
and the Middle East
followed shortly thereafter.
Sub-Saharan Africa and the
former nations of the Iron
Curtain came much later,
beginning in the late 1990s
and continuing into the 2010s
Almost 50% branches of Burger King outside the United States
This is a list of countries with Burger King Franchises.
BurgerKing (BK) itself began as a franchise of its progenitor company,
Insta-BurgerKing. It grew in the United States using a combination of
corporate locations andfranchising, before divesting itself of its corporate
holdings in 2013. It began it is international expansion in 1969 with a
location in Canada, followed by Australiain 1971, and Europe in 1975. Latin
America and South America became part ofits market later in that decade,
Asia followed in the 1980s, and Northern Africaand the Middle East
followed shortly thereafter. Sub-Saharan Africa and theformer nations
of the Iron Curtain came much later, beginning in the late 1990sand
continuing into the 2010s.
As of 2014, Burger King
operates in almost every
country in the Western
Hemisphere, and most of
Europe and East Asia. It has
embarked on a plan to
base a good portion of its future
growth in the BRIC Nations of
Brazil, Russia,
India, and China, with plans to
open more than 3000 locations
in three of those
four countries. Burger King
also has a longstanding
presence at U.S.
Army and U.S. Air Force
installations worldwide, dating
back to the 1980s under
a contract with Army and Air
Force Exchange Service.
Today, while other chains
such as Taco Bell, Popeyes,
and Subway have a presence
on military bases,
virtually every major Army and
Air Force installation hosts a
BK restaurant
As of 2014, Burger King operates in almost every country in the
Western Hemisphere, and most of Europe and East Asia. It has embarked
on a plan tobase a good portion of its future growth in the BRIC Nations of
Brazil, Russia,India, and China, with plans to open more than 3000
locations in three of thosefour countries.

Revenue of Burger King worldwide 2004-2021

 Global fast food giant Burger King generated approximately 1.81
billion U.S. dollars in revenue during the 2021 financial year. This figure
reflects an increase over the previous year's total of 1.6 billion.

Burger King's whooping

success
Founded in 1954, Burger
King is a U.S.-based quick
service burger
restaurant chain that is also
known by the abbreviation
‘BK’. Since the 1950’s
Burger King evolved into
an international brand with
more than 18
thousand Burger King
restaurants worldwide. Burger
King also affirmed its
position as one of the most
valuable QSR chain worldwide
in terms of brand
value. It also ranked fifth
in terms of the leading
QSR chains with the most
number of units in the
United States.
Burger King's whooping success
Founded in 1954, Burger King is a U.S.-based quick
service burgerrestaurant chain that is also known by the abbreviation ‘BK’.
Since the 1950’s Burger King evolved into an international brand with
more than 18 thousand Burger King restaurants worldwide. Burger King
also affirmed itsposition as one of the most valuable QSR chain
worldwide in terms of brandvalue. It also ranked fifth in terms of
the leading QSR chains with the mostnumber of units in the
United States.
COVID-19's impact on the fastfood industry
The coronavirus pandemic caused unprecedented challenges in the
QSR industry across the globe. Efforts to contain the spread of the
virus causedrestaurant chains to restrict its operations to take-out orders
or delivery only, asindoor dining was not possible due to social distancing
orders. In the United States, restaurant traffic to the fastfood restaurants
experienced a nearly 20% decline in restaurant traffic during this period.

Company Mission
The mission statement for Burger King is a public document that details
the values and strategic aims of Burger King. The mission statement of
Burger King alsoidentifies the purpose of the organization existence,
highlighting the services and theproducts it offers.Further, the mission
statement also identifies the organization’soperational goals for Burger
King, the processes the company uses to achieve those,the target
customer groups, and the region where the company operates.

Nine Components of Burger King’s Mission:

Customer
15-40 years in developing nations and in developed nation's customers
ofall age groups prefers the Burger King fast-food chain Burger King had
targeting young adult marketCompare with their mainly competitor
McDonald are targeting kids andfamilies, they had a different targeting
audience.
Products or Services
Operates as a quick service restaurant business focusing on burgers asits
main product.Burger King’s main product lines are as follows:

BurgersChicken and fishSidesSalads and

veggiesBeveragesSweets/Desserts
Market
-McDonald's is Burger King's top competitor. McDonald's has 175,000
more employees vs. Burger King.
-Domino’s Pizza Inc. has been one of Burger King's top
competitors. Domino’s Pizza Inc. generates 219% the revenue of Burger
King.
-KFC is perceived as one of Burger King's biggest rivals. KFC
generates$711M more revenue than Burger King
Technology
Burger King’s new technology dubbed Whopper Wi-Fi is powered
byAT&T, and the burger chain claims that it will use the network to
createbetter in-restaurant experiences. One of the more interesting
implicationsfrom the deal is around how the burger chain could potentially
play upbranded content with Wi-Fi, similar to how Starbucks elevates its in-
store experience.

Concern for survival, growth, and profitability

Its slogan, Be Your Way, lets customers know that the chain offers
flexibleoptions. In terms of its product offering, it has a fine way of grilling
itsburger patties and offering free drink refills.Burger King also employs
intensive growth strategies by opening newstores in overseas
locations where there are no operations. Its cost leadership
strategy is particularly important when it tries to break intoemerging
markets.
Philosophy
Burger King includes “teamwork and family, excellence and
respect.”Burger King’s develops their performance, creativeness, being
pragmatic,willing to consider all suggestions and able to propose
and displayinnovative concepts to fit cozy and inspiring workplaces.
Self-Concept
- Burger King uses two generic strategies for competitive advantage:
costleadership and broad differentiation. The company’s primary
genericcompetitive strategy is cost leadership.
- Burger King also uses broad differentiation as its secondary
genericstrategy for competitive advantage. Based on Porter’s model, this
genericstrategy requires creating unique characteristics to
differentiate thebusiness from other firms. Burger King applies this generic
competitivestrategy through grilling of burger patties.
Concern for public image
- Burger King dedicated to supporting and investing in our people –
employees, franchisees, suppliers and restaurant guests – because they
are the cornerstones of our business. We do all that we can to serve
employees and guests alike. The BURGER KING McLAMORE℠
Foundation is but one way that we support our Burger King friends and
family. In addition to the foundation, along with our franchisee community,
we support numerous local and regional initiatives worldwide.
Concern for employees
- Burger King maintains an organizational culture that supports
highperformance among employees. A firm’s organizational culture is the
set of values, traditions and habits that influence the behaviors of workers.
BurgerKing’s market position as one of the biggest quick service/fastfood
restaurantchains in the world is partly based on its culture of
performance. The company keeps employees aligned to this organizational
culture to ensure aunified approach in developing human resources. Such
an approach ensuresthat Burger King leverages the synergy achievable
through unified efforts topush global business performance further
 Company Vision
Burger King’s vision statement shows that the company aims to:
- Achieve the leading position in the quick service (fast food)
restaurant industry.
- Also indicates that Burger King uses a franchise system to grow
- Great people and the best burgers are offered to attract one
of the biggestmarket shares in the industry.
- Thus, Burger King’s vision statement establishes the nature of the
business and itsdirection toward global market leadershi
Core Values
Burger King core values include
“teamwork and family, excellence and respect.” The core values have the
following components.
Teamwork and family
Excellenct
Respect

Company Objectives
- Increasing market share by increasing brand image.
- Target larger consumer segments/Generate new customers.
- To project itself as a high quality and premium brand.
- Increase brand loyalty
- Increase customer satisfaction.
- Start conversion of company/franchise ownership from 11.75% to
15% (for every100 BKs, 15 will be company owned).

Burger King Organizational Structure

Burger King’s organizational structure has changed through the
years, especially because of leadership and ownership transitions.
A company’sorganizational structure defines the composition and system
used for its businessactivities. Burger King must adjust its corporate
structure over time to address changes in its business environment. As one
of the biggest quick service/fastfood restaurant chains in the world, Burger
King has recently improved itsperformance through reforms in its
organizational structure.

GOALS
To be the most profitable QSR business, through a strong franchise system
and great people, serving the best burgers in the world.
STRATEGIC OBJECTIVE
A strategic objective for this intensive strategy is to grow Burger King by
attracting new customers in new markets based on low prices

Internal Environment Analysis

Swot Analysis

STRENGHTS WEAKNESSES

-Strong brand image. (S1) -Easily imitable business. (W1

-High market penetration. (S2) -Limited product mix. (W2)
-Moderate differentiation -Low --control on franchise model.
products.(S3) (W3

OPPORTUNITIES THREATS

-Diversification/product mix Aggressive competition. (T1)

widening. (O1)
-Market development. (O2 -Imitation. (T2
-Service quality improvement. -Healthy lifestyles trend. (T3
(O