Team#1:    Anton Milukov  Ksenia Forsheneva Ekaterina Molyukova  Natalia Kolganova   Anna BadovskayaCorporation
Company background•   Burger King (NYSE: BKC) is the second largest fast food hamburger chain in the world with more than ...
“AS-IS”                              BUSINESS STRATEGY•   BUSINESS SCOPE     o Products / Services: fast food     o Custom...
“TO-BE”                               BUSINESS STRATEGY•   BUSINESS SCOPE     o Products / Services: healthy menu; diet me...
SWOT Analysis                 STRENGTHS                                             WEAKNESSES Strong international brand...
Key Stakeholders# Stakeholder          Desired     Current Role         Current State of                Desired State of  ...
Alternatives#     Description             Responsible                     Pros                                Cons        ...
RecommendationsPrioritized                    Expected                     Why Better                                  Res...
Next Steps                                                                                                Assigned        ...
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  • (BK can widen their target audience by adjusting their menu to healthy standards (ex. no GMOs))
  • Burger king corporation1

    1. 1. Team#1: Anton Milukov Ksenia Forsheneva Ekaterina Molyukova Natalia Kolganova Anna BadovskayaCorporation
    2. 2. Company background• Burger King (NYSE: BKC) is the second largest fast food hamburger chain in the world with more than 11,200 restaurants in all 50 states and 69 countries and U.S. territories worldwide. Approximately 90 percent of BURGER KING® restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades.• The first restaurant was opened in Miami, Florida in 1954 by James McLamore and David Edgerton.• In 1963 BK opened first store outside the US - in San Juan, Puerto Rico• In 1967, after eight years of private operation, the Pillsbury Company acquired Burger King and its parent company Burger King Corporation.• Other international locations: Oceania in 1971,in Europe in 1975 Madrid, Spain. Beginning in 1982, BK and its franchisees began operating stores in several East Asian countries, including Japan, Taiwan, Singapore and South Korea.• 1989 Burger King was sold to British alcoholic beverage manufacturer and distributor Grand Metropolitan PLC.• In 1997, Grand Metropolitan merged with Guinness to form a company called Diageo. Diageo maintained ownership of BKC until 2001.• In 2002 TPG Capital, L.P with associates Bain Capital and Goldman Sachs Capital Partners purchased BK from Diageo.• On May 18, 2006, Burger King began trading on the New York Stock Exchange under the ticker symbol BKC and generated $425 million in revenue, the largest IPO of a US-based restaurant chain on record.
    3. 3. “AS-IS” BUSINESS STRATEGY• BUSINESS SCOPE o Products / Services: fast food o Customers / Clients: approximately 11.4 million customers daily worldwide (children, teenagers, adults 18-34) o Competitors: McDonalds, Yum! (Taco Bell, KFC, Pizza Hut), Wendys, SubWay• DISTINCTIVE COMPETENCIES: Three-minute service standard; the Whopper sandwich; sandwich tailored to customer, a machine-paced assembly process BUSINESS GOVERNANCE• DECISION - MAKERS: Board of Directors, CEO, Regional managers• STRATEGIC PARTNERS: global (e.g. Coca-Cola) and local (e.g. Regional farms) suppliers BUSINESS INFRASTRUCTURE• ORGANIZATION STRUCTURE: headquarters and network of company-operated and franchises• KEY PROCESSES: procurement, order proceeding, sales• H/R: more than 340,000 employees worldwide (including franchisees and their staff)
    4. 4. “TO-BE” BUSINESS STRATEGY• BUSINESS SCOPE o Products / Services: healthy menu; diet menu; regionally localized menu; kids- oriented programs o Customers / Clients: adults 35+ (including pensioners) o Competitors:• DISTINCTIVE COMPETENCIES: non-bun burger; compliance with healthy standards; additional services (Wi-Fi, TV); Bluetooth headset communication device BUSINESS GOVERNANCE• DECISION - MAKERS :• STRATEGIC PARTNERS : Food Standards Agency (FSA), The American Heart Association, local communities, corporate clients BUSINESS INFRASTRUCTURE• ORGANIZATION STRUCTURE :• KEY PROCESSES : new products and services implementation control• H/R:
    5. 5. SWOT Analysis STRENGTHS WEAKNESSES Strong international brand  Lack of control over franchisees; Unique recipes (uniquely-prepared burgers and  Violence of quality standards;sandwiches);  Poor outside & inside appearance; Flame-broiled food;  Ineffective advertising and PR campaigns; Sandwich tailored to customer,  Poor service (judging by customers’ feedback) Machine-paced assembly process  Bottlenecks during rush hoursThree-minute service standard;  Narrow target audience Wide international presence;Wide chain of local suppliers (e.g. farmers) “Have It Your way” Foundation (charity) OPPORTUNITIES THREATS Increasing interest to healthy food  Decrease in consumers’ purchasing power due to Prosperous developing markets (China, Hong Kong, crisis;Russia etc.)  Increasing popularity of fitness and healthy trend; High demand for BK in Latin America  New programs (promo & new menu items) of rivals; New partnership programs (due to crisis companies  Cross-cultural differencesreconsider their marketing policies);  Loosing part of clients (unsatisfied) Raising loyal clients from childhood
    6. 6. Key Stakeholders# Stakeholder Desired Current Role Current State of Desired State of (Name) Role Affairs Affairs1 John W. Chidsey Sponsor CEO & Executive Though BK is #2 in the fast Positive business chairman food industry, company still development faces internal and external problems2 Russell B. Klein Champion President, Global BK has launched Reconsidering of current Marketing Strategy advertising and PR marketing strategy. and Innovation campaigns that proved to be Introduced changes into ineffective brand positioning strategy3 Julio A. Ramirez Champion Executive Vice Poor control over Compliance of franchisees President, Global franchisees, bottlenecks, with company’s quality Operations poor outside & inside standards. Integrated TQM appearance system. ?? Надо ж использовать теорию…4 Strategic partners Business Influence pricing High dependence of BK on Developed relationship Partners policy, key strategic partners . Not models with SP. Mutually processes, always positive influence on beneficial work with SP publicity BK’s activities5 Customers Loyal Partially loyal Company has pool of loyal Initiated and leveraged customers customers, clients, but most part of the brand loyalty, improved partially brand Target audience are brand customers patronize switchers switchers, or are not fully satisfied with BK products/service
    7. 7. Alternatives# Description Responsible Pros Cons stakeholder1 Not to prolong •John W. Chidsey • Easy implementation of  decrease in profits; franchising agreements •Russell B. Klein improvements;  still cross-cultural differences; and implement all the • better control over  risk that former franchisees will changes in company- restaurants; implement BK’s methods/approach; operated restaurants • atmosphere of exclusiveness Losing of loyal clientele in (less restaurants); communities where stores will be closed2 Implement all the John W. Chidsey  stable market position;  requires reforming of internal changes in the Russell B. Klein  pool of loyal clientele; operations; company-operated Widen customer base;  investments needed (human as restaurants and Julio A. Ramirez Refreshed image; well as capital); franchisees; widening  need to find and build relationship international presence widen international presence; with business partners  positive publicity3 Reacquire BK John W. Chidsey  easier control over the  very costly; franchises in and Russell B. Klein stores;  increased staff outside the US.  increase in profit from Investments in employees training Become vertically- company-operated companies; (to work in different cultural integrated company  ??? environments); Complicated management structure
    8. 8. RecommendationsPrioritized Expected Why Better ResponsibleRecommendations Benefits than Other Alternatives StakeholderImplement all the changes in 1. Not so huge changes in corporate John W. Chidseythe company-operated structure Russell B. Klein 2.Increase of clientelerestaurants and franchisees; 2. Requires not so huge expenses inwidening international 3.Increase in profits Julio A. Ramirez comparison with the 3rd alternativepresence 4.New image of restaurants 3. In future the profit is expected to be 5.presence in new regions increased due to wise strategy (in comparison with the1st alternative) 4. In comparison with the 1st alternative – no lose of clientele, but increasing of it
    9. 9. Next Steps Assigned Target Step Step Description Objectives/Issues/Comments and Dependencies Responsibility Completion Date Following the healthy trend, attracting the anxious clients, cross- Menu reconsideration: healthy menu, diet menu, region/season John W. Chidsey 1 year from culture differences mastering, taking advantage of prosperous tailored menu offers Russell B. Klein current state developing markets’ opportunities Development and integration of new special client-oriented John W. Chidsey Raising loyal clients from childhood (e.g. successful experience of 9 months from programs: «Jolly Sunday Mornings» for kids, discount-hours for Julio A. Ramirez partnership in association with Pokemon franchise in 1999), current state pensioners Russell B. Klein pensioners attraction (low-prices + healthy items) Strategic scope Establishing partnerships: FSA, American Heart Association, 9 months from Taking advantage of healthy trend opportunities, benefits from PepsiCo, telecom services providers (including Wi-Fi equipment John W. Chidsey current state suppliers rearrangement, attraction students and businessmen pruducers) John W. Chidsey Delivery should either be outsourced or introduced by own fleet Corporate clients relationship enhancement: breakfast and on a permanent (relatively expense item but at the same time additional advertising business-lunch sets’ delivery Julio A. Ramirez basis function as well) Hiring top brand consultants, employment of experience for Advertising campaigns: introduction of a new mascot/slogan, on a permanent Russell B. Klein mutually beneficial promotion (success with George Lucas Film Ltd. contracts with media industry majors basis In 1977 and Walt Disney Company in 1994) Julio A. Ramirez Local area network with free access to the Internet, Introducing additional internal services (Wi-Fi coverage, displays 2 years from a number of TV-sets with scheduled internal exclusive programs, within each restaurant of BK) Russell B. Klein current state improvement of poor inside appearance Debottlenecking: walk-through implementation: growth of a 2 years from Julio A. Ramirez Maintain loyalty of impatient clients number of simultaneously served clients during rush hours current stateProcess, organizational, technological scope Breakthrough in accuracy due to undistracted attention of the staff Internal staff communication: Bluetooth headsets distribution 1 year from Julio A. Ramirez in the production area(individual orders extraction), effective among BK staff and managers current state managers instrument for staff reassigning staff as volume changes Speed of services increase. Increasing the level of automation & IT-solutions standards: new John W. Chidsey Julio 2 years from versatile flexible broiler A. Ramirez current state Maintain loyalty of impatient clients. Production of innovative products Total Quality Management with respect to new menu diversity, Particular focus on franchised chains: sudden inspections practice John W. Chidsey Julio on a permanent product quality, speed of services delivery (establishment of a worldwide, regular reporting to the Quality Committee, tough A. Ramirez basis Quality Committee) policy for license withdrawal
    10. 10. Thank you for your attention!
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