2. Presented By:
ID Name Program
11104012 Md. Mominul Islam MBA
12104012 Rajib Bosak MBA
12104017 Dilip Chandra Ghosh MBA
12104025 Md. Kuddus MBA
12104016 Md. Abdul Al Mamun MBA
11104032 Md. Arifuzzaman Miah MBA
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4. Industry : Restaurants.
Area served: Global.
Headquarters:
5505 Blue Lagoon Drive
Miami-Dade County
Florida, United States
Key people:
Alexandre Behring Bernard Hees
Chairman CEO
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5. Current Situation
Current performance:
1957:The WHOPPER® Sandwich is launched.
1958:The First TV Advertisement for BURGER KING® Is Broadcasted.
1959:The company begins to expand through franchising.
1963:First BURGER KING® Restaurant Opens Outside of the United
States.
1967:The Pillsbury Company Purchases Burger King Corporation.
1974:The HAVE IT YOUR WAY® Marketing Campaign Is Launched.
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6. Current performance cont.…
2006:Burger King Corporation Goes Public.
2007:50th Anniversary of the WHOPPER® Sandwich.
2009:Burger King Corporation Releases “WHOPPER® Sacrifice” on
Facebook.
2010:Burger King Corporation Is Acquired by 3G Capital.
2010:BURGER KING® Launches a New Breakfast Menu.
2011:New French Fries introduce in BURGER KING® Restaurants.
2054:BK® Saves the World.
Employee: 34,248 (2011)
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7. Financial Information
Mar 2009 Mar 2010 Mar 2011
Revenues $2537.4m $2502.2m $2335.7m
Net Income $200.1m $186.8m $107m
Assets $2707.1m $2747.2m $5583.5m
Liabilities $1732.3m $1618.8m $4134.3m
Shareholder's Equity $974.8m $1128.4m $1449.2m
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8. Fast Food Services
Hamburgers
French fries
Soft drinks
Whopper Sandwich
Milkshakes
Fire Grilled Burgers
Chicken
Salads
Breakfast
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9. Top Management
Alexandre Behring
Chairman of board of directors
Jim Schwandt
Bernard Hees Daniel S. Schwartz
Director of Business
Chief Executive Officer Executive Vice President
Development
& Chief Financial Officer
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10. Vision Statement
We proudly serve the best burgers in the business, plus a variety
of real, authentic foods…all freshly prepared…just the way you
want it.
Mission Statement
"We will prepare and sell quick service food to fulfill our guest's
needs more accurately, quickly, courteously, and in a cleaner
environment than our competitors. We will conduct all our
business affairs ethically, and with the best employees in the mid-
south. We will continue to grow profitably and responsibly, and
provide career advancement opportunities for every willing
member of our organization."
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11. External Environment GENERAL
Burger king is the second largest fast food hamburger
restaurant in the world in terms of number of restaurant & sale.
It has 12174 restaurants in 76 countries including America,
Spain, Brazil, Turkey, China, Argentina, Japan, Italy etc.
Out of 12174 restaurants, only 1387 are company owned and
10787 are owned by franchisees which indicates that company‘s
capital is very low comparatively others competitor.
Their main items are hamburger, chicken, sandwiches and soft
drinks. It is very difficult for new entrants to become successful
in USA.
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12. Industry Environment
The company mainly competes against market leading McDonald’s,
Wendy’s and Hardee’s restaurant.
There is a segment of the restaurant industry that is Quick Services
Restaurant (QSR).QSR plays a great role to increase net sales. Sale
has been growing 3% over the last decade.
The Quick Services Restaurant industry appears to be less vulnerable
than other businesses. For example, during the period of 2010, due to
economic recession, Quick Services Restaurant sale decreased
only0.5% whereas other business industries decreased 3%.
The inhabitants of America are very conscious about their health.
That’s why restaurant companies are offering healthier items. Now
they emphasis on fried food and calorie related items. For example,
Burger King is now offering Pizza Burger which possessed 2530
calorie.
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13. Internal Environment
Corporate Structure
Burger King used the Matrix structure of management.
Marketing
40,000 plus employees
Business operates in 71 countries
Generated revenues from three sources
Market share 14%
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14. Marketing Mix
Product : Burger King produces Hamburgers, Chees burgers .
Price : Burger King recently joined McDonalds in offering a $1
double cheese burger.
Place : Burger King operates its business via franchises in
worldwide.
Promotion : Burger king value menu featuring six items at less
than $1.
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15. Finance
Burger King `s revenues is $2.3 bill in 2007.
Operating Profit Margin was increase in 19.19% from 17.95% in
2008 to 2007.
Return on equity is also increase in 24.28% from 23.07% in 2008 to
2007.
Return on assets is also increase in 7.28% from 5.84% in 2008 to
2007.
Receivable Turnover is decrease in 18.55% from 19.09% in
previous year.
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16. SWOT Analysis Overview
Strengths:
• Strong market position
-BKC is the world's second-largest FFHR chain as measured by the total
number of restaurants and system-wide sales.
• Greater franchise mix
-As a result of its higher franchise mix, the company is able to grow with
minimal capital expenditure and is assured of regular income in the form of
fees and royalties.
• Robust financial performance
-Revenues and Income have consistently grown providing a platform for
future growth.
Global Brand Equity.
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17. SWOT Analysis Cont.…
Weaknesses:
• Market concentration
-Though the company operates in 65 countries, its operations are heavily
concentrated in the US and Canada. About 65% of its restaurants are located
in the US and Canada
-Concentration of operations in one geographic area increases company's
exposure to local factors such as adverse economic situation, labor strikes
and changes in regulations that can affect its operations.
• Scattered Marketing Campaign
-Fail to efficiently promote products, because they are too busy trying to
promote “The King” character .
• Declining market share
• Slowed revenue and income growth
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18. SWOT Analysis Cont.…
Opportunities:
• New products development
-BK value menu featuring six items at less than $1, breakfast sandwiches, and
specialty burgers.
• New opportunities in growing economies
-India, China, Singapore, and Malaysia
• Positive outlook for restaurant industry in the US
-The year 2009, would mark the 18th consecutive year of sales growth in the
restaurant industry.
-Well positioned companies will benefit from growing foodservice sector
• Reduce cost of entry for BK franchise
• Expand in Asia market
• Reduce underperforming outlets
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19. SWOT Analysis Cont.…
Threats:
• Intense competition
-The company's competition in the broadest perspective includes restaurants, quick
service eating establishments, pizza parlors, coffee shops, street vendors,
convenience food stores, delicatessens and supermarkets.
Expiry of Franchise Agreements
-Of the 409 agreements that expired in fiscal 2006, only 47% were renewed and
28% were extended for similar periods.
• Acrylamide in French fries
-Acrylamide has been shown to cause cancer in some studies in experimental
animals although further studies are underway to better understand the
significance of these results in relation to human health.
• Mature industry
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Notes: Mattox Heads up strategy - he will be behind looking into some of the more market entry strategies Has significant experience within the company, so he knows what they are capable of and what will integrate the best with Dell's strengths Has a broader perspective than simply on current operations Cannon Will be a signficant player in the expansion into growth markets abroad Has experience with global hardware manufacturing and marketing Will also be able to give insight into better operating procedures and cost cutting initiatives Garriques New addition to the management team Comes over from Motorola where he successfully spearheaded an image makeover (Razr, etc) Will hopefully be able to complete similar makeover of the tired Dell brand