BURGER KING

Burger King Beefs Up Global Operations



Burger King Beefs Up Global Operations

Question # 1

Burger King's core competency is “Have it your way”, which means you can have your burger, chicken, fish etc. any way you want it. Burger King has decided to configure and coordinate its value chain by franchising and because “Burger King is the world's largest flame-broiled fast food restaurant chain (Jargon, 2010).”

By observing the mistakes of other fast food chains, Burger King forged a strategy that has proved successful. This strategy can be summarized in five parts: (1) develop an infrastructure before putting in restaurants, (2) develop a local management team, (3) focus development on principal cities and adjacent geographies with established shopping mall location, (4) establish a local office, and (5) support continuous development and the use of local suppliers that meet Burger King's global specifications. By focusing initially on São Paulo, Brazil's largest city, Burger King was able to develop economies in its marketing and distribution (Fozo, 2004).

Question # 2

Burger King has decided to configure and coordinate its value chain by franchising, because “Burger King is the world's largest flame-broiled fast food restaurant chain.”The primary value chain activity of King Burger is Marketing and sales by identifying the customer needs and generating sales. They believed in cost advantage and differentiation by focusing on activities related to their core competencies (Daniels, 2011).

Question# 3

Overall, Burger King has expanded internationally later than its primary rival competitor, McDonald's. This has resulted in both advantages and disadvantages. On the one hand, subsequent entry is a disadvantage in very small markets because there may be few moderate suppliers. On the other hand, in larger markets, such as in the BRICs, being a later entrant may be advantageous because the earlier entrants have built demand for fast food and have created a supply infrastructure. In some later- entry markets, Burger King has been able to concentrate almost entirely on emphasizing its product (have it your way, good taste of flame- broiled burgers), without incurring the early developmental costs (Cordal, 2010).

Question # 4

A major disadvantage for any restaurant that wants to go international is that the country that they enter may be “burned out” on fast food; they may not like the taste or the company which could be catastrophic. lack of creativity and flexibility and most importantly the cost is much higher .When food chain like King Burger enter in ...