Burger King Corporation

Burger King's Domestic Environment Assessment

Burger King's Domestic Environment Assessment

Introduction

Burger King started with one restaurant in Miami in 1954 and now the corporation and its franchisees operate more than 11,400 restaurants in all 50 states and 57 countries and territories around the world, with 91% of BURGER KING(R) restaurants owned and operated by independent franchisees. Since the company's founding in Miami in 1954, the Burger King brand has become recognized for the great taste of FLAME-BROILING, HAVE IT YOUR WAY(R) and the WHOPPER(R). In fiscal year 2002, ending June 30 2002, the BURGER KING(R) organization had system-wide sales of $11.3 billion. Burger King Corporation is possessed by the equity sponsor group comprised of Texas Pacific Group, Goldman Sachs Capital Partners and Bain Capital.

POLITICAL

The operations of Burger King are affected by the government policies on the rules of fast food process. At present government are checking the marketing of fast food restaurant because of health concern such as cardiovascular and cholesterol issue plus obesity among the young as well as children in the country. Governments also manage the license given for open the fast food restaurant plus other business regulation require to follow such as for a contract business. Good association with government in giving joint benefits such as employment plus tax is a must for the company to do well in any foreign market (Chisnall, 1997). ECONOMICS

As a business entity, Burger King needs to face a lot of economic variables outside its company or its macro environment. Dealing with international sourcing for its material Burger King should be aware on the global supply and currencies exchange. Remember, Burger King import most of its raw material such as beef and potatoes due to local market cannot supply in abundant to meet the demand of its product. Any upside of currencies particularly dollar will be impacting its cost of buy (Brassington, 2000).

Working on the local country, Burger King must face government regulations on tax of profit where it gains from the operation and other tax such as entertainment and restaurant service tax. Each country may have different scale or types of tax available and Burger King should follow the regulation if it wants to continue the operation. As a franchise, Burger King should also pay certain percentage of the revenue to the parent company in United States.

The economic condition and growth of the country also is an important ...