SWOT analysis of Burger King PDF

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Swot analysis conducted on Burger king...

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Introduction Burger King is a global chain fast food restaurant which was founded in 1955 in United Sates in Florida owned by David Edgerton and James McLamore. By the year 2011, 12,400 outlets were opened by Burger King in 73 countries including New Zealand. Since its opening in 1955 the menu for the Burger King has evolved from basic offering of French fries, sodas, milkshakes, and burgers to more diverse and lager set of products. Between 2002 and 2010, Burger King targeted large products that carried large amounts of unhealthy fats to 18-34 male demographic. In 2011 Burger King moved away from male oriented menu to new menu items with packing and product reformulations (The Free Encyclopedia, 2012). Burger Kings franchise is one of the means of expanding its operation. Burger King acts as a franchisor laying down precisely procedures and rules for other franchisee to follow. To achieve volume growth Burger King associated itself with multinational expansion for a large saturated market place (Made Easy). Burger King is ranked second next to McDonald's in terms of size and number of stores but their brand name is the most widely-recognized brands in the world which sets them apart from their competitor. Burgers Kings innovative and more food menu choices help them to be competitive in the market and maintain the customer it has. The main menu Burger King has is French Fries, cheeseburgers, and chicken and fish sandwiches, breakfast items, hamburger, onions rings, soft drinks, salads, desserts and etc. (Made Easy). PEST Analysis PEST Analysis is at tactical planning means to evaluate the impact of the external environment like Political, Economic, Social and Technological factors on an organization (Haughey & MPM, 2002). Burger King will have to use PEST Analysis is a vital ingredient in their planning process. (P) Political is factors like trade restriction, environment regulations, tax policy, and employment laws that Burger King will have to comply. New Zealand government also has legislation that governs the dissemination and preparation of the financial information so Burger King will have to comply with legislation when preparing annual report. (E) Economic factors are inflation rate, exchange rates, interest rates, and economic growth. Burger Kings cafes survival will depend on how New Zealand economic is doing. For example people must have money to spent and they should willing spend it. (S) Social is factors like emphasis on safety, cultural aspect and population age distribution. "For example McDonalds sells soft drink made from an Amazonian beery in Brazil, milk shakes flavored with durian in Singapore and Malaysia, and in south East Asian it is aphrodisiac" (Bartol, Tein, Matthews, & Sharma, 2008, p. 79). Burger King will have to identify will menu will people of New Zealand will desire. Also any changes in socio cultural trends will shift the demand of a partially product mean. (T) Technological are technological changes that creates new processes of producing products and services. For example new coffee machine which will give Burger King a competitive edge.

SWOT analysis of Burger King Strengths -Second largest fast food industry in the world -Strong brand capital -90% restaurants owned by franchise

Weaknesses -High price -Release on franchise to execute its brand promise -Unreliable product\services

-Target audience is teenagers and men

-Customer Loyalty

Opportunities -New product development- an French breakfast menu -Healthy food -New franchise in Ukraine and Belarus -Social Marketing Concept -Lower taxes

Threats -Changing Consumer Eating Habits -Expire of Franchise Agreements -Increasing labor cost -Acrylamide in French fries -Similar range with McDonald’s -Higher taxes -New distribution Channels...