Burger

King
Abdon Ramirez 154121069
Beatriz Rodrigues 154121013
Francisco Marques 154121077
Maria Joana Almeida 154121054
Miguel Domingos 154121007
Introduction/ Strategy Statement Presentation
Pestle Analysis Outline
5 Forces Analysis

Resources and Capabilities/VRIO

Business Strategy

Us and our Competitors

Promotion and Differentiaton

Value
 Introduction
Founded by James McLamore and David Edgerton in Miami in 1953.
Quick service hamburger restaurant chain.
Burger King has over 18,700 locations worldwide and operates in over 100 countries.
Burger King generated approximately 1.81 billion U.S. dollars in revenue during the 2021
financial year.
Burger King serves approximately 15.7 million customers per day.

“Pleasing our customers with affordable

quality food in a clean and convenient
environment and at every location.”
(Strategy Statement)
 PESTLE
POLITICAL ECONOMIC SOCIAL

Governments being Recession and increasing taxes; Healthy trends;

open to the idea of Inflation rates on different Vegan trend;
globalisation; companies and products; More awareness about
Policies restraining the Transportation is more what people eat;
consumption of meat; expensive (fuel prices); Constant growth on the
Highly exposed to Decrease in value of foreign concern of animal cruelty
country specific risks. currencies affecting revenues;
Decrease in investment due to
higher rates.
 PESTLE
TECHNOLOGY LEGAL ENVIRONMENT

Spread of information is More regulations on Concern about the

faster; unhealthy food, sanitation, environmental impact

animal rights and safety meat consumption has is
Growth of demand for
authorities. growing between people.
food delivery;
Evolution of automation Climate change.

processes.

These key external factors, give us an understanding of the business environment in which Burger King
operates. Showing us that it will face a few challenges, like the incoming recessions, but that it is also in a
market that is changing and growing at the same time, as, for example, people become more aware of what
they eat but order more food deliveries as well.
 5 Forces

Suppliers Substitutes

Don’t have much power, as Cook at home pre-prepaired

their margins are low they need meals programmes, that make
to sell a lot; cooking at home easy, however
A lot of suppliers, leads to low hold low power as they aren't
power from raw material well established and are quite
providers (Meat, vegetables, …). expensive.
 5 Forces
New
Buyers Rivalry
entrants

Large number of costumers Easy to open a restaurant High number of competitors

with low buyer power, which but hard to build a powerful and variety of firms;
means, individually, they brand name and keep However not many as
hold low bargaining power; quality through restaurants, established and of the same
Low switching costs, making which represents a barrier size. But with this, the
it so that large groups hold to entry. competition is fierce and
quite a lot of power. needs to be taken seriously.
 Strong brand image and Franchise system;

Resources Revenues from royalty obligations;

Large number of retail facilities;
Exclusive long-term contracts with
partners;
Knowledge and expertise.

Frequent innovation adding new items;

Expansion plan (International presence and
Capabilities
expansion);
Consistency throughout restaurants.
 VRIO Analysis
VALUE RARE INIMITABLE ORGANIZED

Substainable
Brand image
competitive advantage
Temporary competitive
Franchise model
advantage
Temporary competitive
Consistency
advantage

Large number of Temporary competitive

restaurants advantage
Business
strategy (Hybrid)
Cost-leadership strategy - primary
strategy;
Minimize operating costs which
leads to lower overall costs;

Broad differentiation- build a business

that is different from its competition;
Differentiation;
Promotion.
 Why do we differentiate from our competitors?

The burgers are flame-roasted, so they

put on less fat than conventional fast-
food burgers cooked on regular grills;

Unique app that allows customers to

order, check offers, make reservations
and also buy large portions for events
(catering).
 PROMOTION AND DIFFERENTIATION

BURGUER KING APP

Coupons all year:

People get encouraged
Order your food We prepare your Order sent to your to go to Burguer King.
from app. order. address.
 Value Creation:
Affordable quality food to people all
around the world with a bigger menu than
competitors at comparable prices, that are
cheaper than most of the industry;
Benefits local producers, BK customers,
and Franchisees.
Value Capture:
Locations everywhere, selling volumes of
food that are mass focused;
Lower prices achieved by agreements
with soft drink companies (Coca-cola,
etc), and offering a wide menu with clean
restaurants.
Value Configuration:
Franchise model, BK sells a license to open
a store at a flat fee, asking for percentage
of yearly revenues. BK provides and sells
furniture and necessary machines for
locations, ensuring uniformity;

BK develops the dishes, menus, promotions

and these are passed down to the
franchises to operate.
Bibliography:
https://www.mbaskool.com/pestle-analysis/companies/18143-burger-king.html

https://www.investopedia.com/articles/markets/111015/mcdonalds-vs-burger-king-comparing-
business-models.asp

https://www.vettedbiz.com/burger-king-franchise-review/

https://www.bk.com/about-bk

https://www.statista.com/statistics/266462/burger-king-revenue/