BURGER KING

Burger King Comprehensive Case Analysis Part 2



Burger King Comprehensive Case Analysis Part 2

Introduction

SWOT and BCG analysis are considered essential for the businesses and organizations in order to execute their strategic planning efficiently. The business managers or executives get a clear idea about Strengths, Weaknesses, Opportunities and Threats that associate to a particular project or venture from the SWOT analysis, while BCG analysis helps the business in determining the strategies for brand marketing and project management, from various aspects (Investopedia, 2012).

The paper presents the SWOT and BCG matrices for the Burger King, and describes the advantages and disadvantages of using alternative strategies. We also make recommendations for improving the strategies of the firm, and compare those recommendations with the existing strategies.

SWOT analysis of the firm

This part of the assignment presents the SWOT analysis for the leading food stores chain Burger King. This analysis will help the executives and decisions makers of Burger King, in analyzing the business, working environment and available resources for the firm. The managers will be able to discover that how they can compete in better ways, as SWOT analysis will conclude that what the competitors do better than themselves. In addition, the analysis will highlight the available opportunities, and whether or not the business is making the most of those opportunities. Also, the managers would be helped in their decision making process, as the analysis would reveal the methods using which they should respond to the changes occurring in the external or internal environment.

Table 1 shows the SWOT matrix for the Burger King.

Table 1: SWOT Analysis of Burger King

SWOT Analysis Matrix

Analysis Factors

Weight

Rating

Weighted Score

Strengths

Recognition and Experience

0.02

3

0.06

Range of Operation; Greater franchise mix

0.04

2

0.08

Locations and Services

0.09

4

0.36

Environment Friendliness

0.01

1

0.03

Operational Excellence

0.02

3

0.06

Weaknesses

Vulnerable to Labor and Regulations

0.04

2

0.08

Heavy Reliance on Loyal Customers (marketing teacher, 2012).

0.03

4

0.12

Opportunities

Increasing health concerns in the public

0.12

3

0.36

Global expansion of the business

0.04

2

0.08

Acquisition of other restaurants and introducing new products

0.06

1

0.06

Quality products at nominal costs

0.04

4

0.64

Discount packages and customer loyalty schemes

Threats

0.10

2

0.20

Changing eating habits of people

Slow recovering economy

0.08

1

0.08

Relationship with franchises

0.12

3

0.36

Existing competitors and new entrants

0.07

3

0.21

Anti American Sentiments

0.04

2

0.08

Increasing global recession

0.04

3

0.12

Must struggle to meet the advancing consumer demand from the perspective of health and environmental constraints

0.04

1

0.04

1

BCG Analysis of the firm

The firms involved in the businesses that belong from multi category or multi product essentially uses the BCG analysis for strategic planning. This analysis provides the executives of the firm with a clear idea of the most profitable products. Figure 1 shows the BCG matrix.

Figure 1: BCG Matrix

The most important part of the Burger King's business strategy is the fact that it has a broad target market and a wide range of product offerings. While talking about the BCG matrix, the most famous product of Burger King, the Whopper would be put in, as the cash cow range.

Advantages and Disadvantages of Using Alternative Strategies

The major advantage of using alternative strategies for the business is that the executives always have a clearly defined back plan, on which they may act if their main strategy or business plan fails. Having alternative business strategies broadens the span of managers thinking ...