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.
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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***I forgot to note, anywhere in the paper that there is " " marks and no source, this is where I cited the scenario that you provided. I am not sure where this information came from. Therefore, be sure to appropriately cite the same.
1. What is Burger King's core competency?
Burger King's core competency is its flame broiled burgers that it sells and advertises on a daily basis. They are the world's largest flame broiled fast food restaurant chain and remain second in the fast food industry. The Burger King Flame broiled burger is not easy to imitate. In fact, no other fast food provider flame broils their burgers. This is a benefit both to Burger King and the consumer as Burger King has the benefit of having a different product and the consumer benefits by having other burger options.
"Burger King CEO James B. Adamson did change the overall strategy to get the company back to what he called its core competencies. Adamson simplified everything, how hamburgers were not only made and sold, but how they were advertised, as well. He also, pushed Burger Kings basic strengths, like flame broiling, the campaign, ran the company $250 million. In addition, he gave operators a bigger say over which menu items they will push with local ad dollars. Despite all of the changes Burger King remains the No. 2 burger chain in the world. Moreover, they only have 6.1% of the fast-food sales, a far cry from McDonald's 83%. Although, they are a far second, the changes in Burger King have worked. The company has posted a 28% increase in operating profits, to $77 million, for the year ended September 30, 1994. Helping performance was the sale of 211 company-owned stores during the year to franchisees, which garnered $64 million. The continued performance improvement has impressed lenders, who have committed to issuing more than $500 million in loans and credit deals to franchisees for capital investment (Nation's Restaurant News). All this has made Burger King Executives happy, but Burger King did experience another setback as James B. Adamson resigned in 1995. Robert C. Lowes former CEO of Grand Met's European food sector replaced him. Lowes is a capable replacement, but this continual change in top management continuous to hurt Burger Kings attempts to be the number one hamburger chain in the world". Source: http://www.collegetermpapers.com/TermPapers/Business/Burger_King_Loosens_Up.shtml
How does it relate to its chosen strategy?
In terms of its chosen strategy, it seems that Burger King initially chose to only sell burgers, fries, milk shakes and sodas. They have sense expanded to other items including chicken and salads. I believe that its core competencies directly relate to their chosen strategy as they have continued to place their focus on their original concept of flame broiled burgers. Furthermore, they have continued to place much focus on their signature burger, the Whopper sandwich "which is considered Burger King's signature product" (Scenario).
Burger King has tried to maintain its strategy. They have considered and tried other products but found that their flame broiled burgers are ones that are different from ...
This solution assists in providing a solution to a proposed scenario of Burger King, and what its core competency is.