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“Burger King Beefs Up Global Operations”

Read the case study "Burger King Beefs Up Global Operations"
Incorporate into your analysis responses to the following questions. You should make sure to incorporate core concepts
from your reading assignment. use the APA format in writing course
papers. Therefore, the APA rules for formatting, quoting, paraphrasing, citing, and listing of sources are to be followed.

1. What is Burger King's core competency? How does it relate to its chosen strategy?
2. How would you explain how Burger King has decided to configure and coordinate its value chain? Which of
Burger King's value chain activities create the most value for the company?
3. Burger King globally expanded later than its main fast food competitor. What advantages and disadvantages has
this created?
4. When entering another country, discuss the advantages and disadvantages that an international restaurant
company, specifically Burger King, would have in comparison with a local company in that market.
5. About two-thirds of Burger King's restaurants and revenues are in its Americas region (United States and
Canada) and one-third elsewhere. Should this relationship change? If so, why and how?
6. The case mentions that Burger King prefers to enter countries with large numbers of youth and shopping centers.
Why do you think these conditions would be advantageous?
7. How has Burger King's headquarters location influenced its international expansion? Has this location
strengthened or weakened its global competitive position?
8. As CEO of Burger King, what tools and strategies would you use when deciding on possible future locations for
the company.
9. What do the implications of the challenges identified in the case have for Burger King's strategy today and in the
future?

Solution Preview

James McLamore and David Edgerton founded Burger King in Miami in 1954. Burger King operates 12,000 restaurants in all 50 states, and in over 70 countries and U.S. territories worldwide (Daniels, Radebaugh, & Sullivan, 2011). Daniels et, al (2011, p. 411), defined a core competency as the "unique skills and/or knowledge that it does better than its competitors; and is essential to its competitiveness and profitability". Burger King has several core competencies starting with their relationship with their franchise companies. The relationship between management and franchise is significant and key in Burger King's successes and failures. Burger King also has a unique way of cooking their burgers, flame-broiled instead of grills that fry. They also offer the customers the freedom to choose how they want their burgers - popularized by their slogan "have it your way" (Daniels, et al, 2011). Although Burger King started out selling primarily burgers, they have expanded and added more to their menu all while still keeping Burgers in their focal point. Another core competency of Burger King is their sales approach through "innovative advertising campaigns through the years, such as its use of a figure of a man who is the Burger King" Daniels et al, 2011, p. 465).

Burger King configured and coordinated its value chain through franchising. Although Burger King prefers to operate through franchising, by doing so it can initially be difficult because suppliers do not know about the company. Whenever this occurs and if the market looks positive, Burger King will enter with its owned operations. According to Daniels, et al (2011), Burger Kings owns about 12 percent of their ...

Solution Summary

1. What is Burger King's core competency? How does it relate to its chosen strategy?
2. How would you explain how Burger King has decided to configure and coordinate its value chain? Which of
Burger King's value chain activities create the most value for the company?
3. Burger King globally expanded later than its main fast food competitor. What advantages and disadvantages has
this created?
4. When entering another country, discuss the advantages and disadvantages that an international restaurant
company, specifically Burger King, would have in comparison with a local company in that market.
5. About two-thirds of Burger King's restaurants and revenues are in its Americas region (United States and
Canada) and one-third elsewhere. Should this relationship change? If so, why and how?
6. The case mentions that Burger King prefers to enter countries with large numbers of youth and shopping centers.
Why do you think these conditions would be advantageous?
7. How has Burger King's headquarters location influenced its international expansion? Has this location
strengthened or weakened its global competitive position?
8. As CEO of Burger King, what tools and strategies would you use when deciding on possible future locations for
the company.
9. What do the implications of the challenges identified in the case have for Burger King's strategy today and in the
future?

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