Introduction:

Burger King, often abbreviated as BK, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United tates! "he company began in #$%& as 'nsta-Burger King, a (ac)sonville, Florida-based restaurant chain! *fter 'nstaBurger King ran into financial difficulties in #$%%, its t+o Miami-based franchisees, David ,dgerton and (ames Mc-amore, purchased the company and renamed it Burger King! .ver the ne/t half century the company +ould change hands four times, +ith its third set of o+ners, a partnership of "01 Capital, Bain Capital, and 1oldman achs Capital 0artners, ta)ing it public in 2332! 'n late 23#3 &1 Capital of Bra4il acquired a ma5ority sta)e in BK in a deal valued at 6&!27 billion 8U D9! "he ne+ o+ners promptly initiated a restructuring of the company to reverse its fortunes!

History of Burger King:

#$%: - David ,dgerton opens 'nsta Burger King in Miami, selling #;-cent fire-grilled hamburgers and #;-cent mil)sha)es! "hree months later, (im Mc-amore matches ,dgerton<s capital and the co-founders form a corporation called Burger King of Miami 'nc! #$7& - outh Florida =estaurants 'nc! changes its name to Burger King Corp! #$7> - "he 0illsbury Co! acquires Burger King Corp! for 6#; million! "here are 2>: restaurants in operation +ith a total of ;,333 employees! #$;; - 1rand Metropolitan 0-C acquires "he 0illsbury Co! and its subsidiaries, including Burger King, for 6%!>$ billion! #$$> - 1rand Metropolitan merges +ith 1uinness to create a ne+ company, Diageo 0-C! 2333 - Diageo announces its intention to spin off Burger King Corp! from its portfolio! 2332 - * group comprised of "e/as 0acific 1roup, Bain Capital and 1oldman achs Capital 0artners buys Burger King for 6#!% billion! 2337 - Burger King goes public! 23#3 - Burger King is acquired by &1 Capital and ta)en private! "he ne+ o+ners begin a yearlong process of reviving the ailing business +ith ne+ menu items and remodeled stores!
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23#2 - Burger King returns to the ?e+ @or) toc) ,/change after &1 Capital sells a 2$ percent sta)e in the hamburger chain for 6#!: billion in cash to (ustice Aoldings -"D, a U!K!-based entity specifically set up by investors to buy a company!

Products of Burger King:

Burgers Whopper 'ntroduced in #$%>, "he Bhopper is Burger King<s signature hamburger product! 't consists of a flame grilled quarter-pound 8##&!: g9 beef patty, sesame seed bun, mayonnaise, lettuce, tomato, pic)les, )etchup, and sliced onion! .ptional ingredients such as processed cheese, bacon, mustard, guacamole or 5alapeCo peppers may be added upon request!

BK Big King "he Big King sand+ich is a hamburger that is one of Burger King products oriented to late teen to young adult males! 't is a hamburger, consisting of t+o grilled beef patties, sesame seed bun, King auce, iceberg lettuce, onions, pic)les and t+o slices of *merican cheese!

BK Stacker

"he BK tac)er +as first introduced in the summer of 2337!"he BK tac)er sand+iches are a family of hamburgers featuring the same toppings that targets the late-teenDtoD young-adult and male-oriented demographic groups! "he BK tac)er is a hamburger consisting of any+here from one to four 2!3 ounces 8%> g9 grilled beef patties, *merican cheese, bacon and tac)er sauce served on a sesame seed bun!

BK Toppers "he BK "oppers line +as a line of cheeseburgers introduced in .ctober 23## as limited time offer! "he sand+iches featured a ne+ &!2 o4 8$# g9 chopped beef patty that features a coarser grind than the company<s 2 o4 8%> g9 hamburger patty! "he three sand+iches in the line are the Cheeseburger Delu/e, Mushroom and +iss, and Bestern BBE!

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Rodeo cheeseburger

"he =odeo Cheeseburger +as created to coincide +ith the release of the film mall oldiers in #$$>! "he =odeo Cheeseburger is a cheeseburger that is one of Burger King products targeting the value conscious demographic! 't consists of a burger patty, *merican cheese, three onion rings, and barbecue sauce served on a sesame-seed bun!

Chef's Choice burger "he Chef<s Choice +as introduced in .ctober 23## of ne+ o+ner &1 Capital<s menu restructuring! "he Chef<s Choice burger +as a cheeseburger that +as one of Burger King products targeting the FindulgentF segment of the burger mar)et! 't consisted of a burger patty made from ground chuc), *merican cheese, bacon, red onion, romaine lettuce, tomato and a Fgriller sauceF sauce served on a brioche bun!

Chicken and fish rigina! Chicken Sand"ich "he .riginal Chic)en and+ich +as introduced in #$>; as part of BKs F pecialty and+ichF line! "he rigina! Chicken Sand"ich is a chic)en sand+ich sold by Burger King, and it is the FbasicF chic)en sand+ich sold by the company! "he .riginal Chic)en and+ich consists of a breaded, deep-fried +hite-meat chic)en patty +ith mayonnaise and lettuce on a sesame seed sub-style bun!

#ri!!ed chicken sand"iches Burger King has introduced a variety of grilled chic)en sand+iches to its products portfolio since its first iteration +as introduced #$$3! .riginally )no+n as the BK Broiler, the sand+ich +as modified in 2332 as part of the forty-fifth anniversary of the Bhopper sand+ich! BK changed the name of the sand+ich to the Chic)en Bhopper and added a smaller Chic)en Bhopper (r! sand+ich along +ith a ne+ Caesar salad sand+ich topped +ith a Chic)en Bhopper patty!'n 233:, BK introduced its BK Baguette line of sand+iches that replaced the Chic)en Bhopper!

BK Big $ish

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"he original fish sand+ich sold by Burger King +as introduced in May #$>% and +as called "he Bhaler and featured the tag line "he 1enuine Burger King Fish-stea) and+ich! "he BK Big fish is a fish sand+ich! "he product is sold in ?orth *merica only, ho+ever Burger King sells a fish sand+ich in all of its mar)ets! "he BK Big Fish consists of a deep-fried +hite fish patty, "artar sauce and lettuce on a brioche bun!

Chick'n Crisp "he sand+ich +as introduced in #$$; as part of a menu e/pansion that added a value menu +hich the company dubbed the 1reat "astes Menu! "he Chic)<n Crisp is a small fried chic)en sand+ich that consists of a fried chic)en patty, lettuce and mayonnaise served on a sesame seed bun! 't is one of the company<s value oriented products! ince its introduction, there have been several variants released by the company!

%egetarian BK %eggie "he product +as first introduced in 2332, shortly before the company<s acquisition by "01 Capital, as part of a menu e/pansion that included a revamped King upreme and other products designed to better compete +ith a similar planned menu e/pansion at McDonald<s early the ne/t year! "he BK Geggie is a vegetarian soy-based meatless sand+ich that is served at Burger King restaurants!

Spicy bean burger

"he picy Bean burger is a fried sand+ich sold by the international fast-food restaurant chain Burger King in parts of the ,uropean and *sian mar)ets! 't does not contain any meat but may be fried in the same oil as the fish products!

Co&pany Su&&ary:
"ype 'ndustry 0redecessor8s9 Founded Current companyH Founder8s9 Current company founder Aeadquarters 0ublic =estaurants 8Fast food restaurant9 'nsta-Burger King 'nsta-Burger KingH (uly 2;, #$%& in (ac)sonville, Florida #$%: in Miami, Florida 'nsta-Burger KingH Kieth (! Kramer and Matthe+ Burns David ,dgerton and (ames Mc-amore %%3% Blue -agoon Drive, Miami-Dade County, Florida, United tates Page | 4

*rea served Key people =evenue .perating income ?et income "otal assets "otal equity .+ner8s9 ,mployees 0arent Company Bebsite

1lobal *le/andre Behring 8Chairman9 Bernard Aees 8C,.9 Ben K! Bells 8CF.9 U 62!&& billion 8F@ 23#39 U 6&7&!3 million 8F@ 23##9 U 6#3>!; million 8F@ 23##9 U 6%!%; billion 8F@ 23##9 U 6#!:% billion 8F@ 23##9

&1 Capital 8>#I9, (ustice Founders 8#&I9 J hareholders 8#7I9

&:,2:; 823##9 Burger King Aoldings 'nc! +++!b)!com

Current Perfor&ance:
Burger King +as the second largest fast-food hamburger restaurant chain in the +orld as measured by the total number of restaurants and system+ide sales! *s of (une &3, 23#3, the company o+ned or franchised #2,#>: restaurants in >7 countries and U! ! territories, of +hich #,&;> +ere company-o+ned and #3,>;> +ere o+ned by franchisees! .f Burger KingKs restaurant total, >,2%; or 73I +ere located in the United tates!
*ppro/imately $3I of Burger King restaurants +ere franchised, a higher percentage than other competitors in the fast-food hamburger category! Franchisees in the United tates and Canada paid an average of &!$I of sales to the company in 23#3! 'n addition, these franchisees contributed :I of gross sales per month to the advertising fund! Management touted its business strategy as gro+ing the brand, running great restaurants, investing +isely, and focusing on its people! pecifically, management planned to accelerate gro+th bet+een 23#3 and 23#% so that international restaurants +ould comprise %3I of the total number! Management +as also +or)ing to update the restaurants by implementing its ne+ 23L23 design and complementary Bhopper Bar design introduced in 233;! By 23#3, more than 233 Burger King restaurants had adopted the ne+ 23L23 design that evo)ed the industrial loo) of corrugated metal, bric), +ood, and concrete! "he ne+ design +as to be introduced in $% company-o+ned restaurants during fiscal 23##! Management continued to loo) for +ays to reduce costs and boost efficiency! By (une &3, 23#3, point-of-sale cash register systems had been installed in all company-o+ned, and %>I of franchise-o+ned, restaurants! 't had also installed a fle/ible batch broiler to ma/imi4e coo)ing

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fle/ibility and facilitate a broader menu selection +hile reducing energy costs! By (une &3, 23#3, the fle/ible broiler +as in ;$I of company-o+ned restaurants and 7;I of franchise restaurants!

Corporate go'ernance ( their contributionin the Business:

Bernardo Hees Chief )*ecuti'e fficer and +irector

Mr! Aees has served on the board of Borld+ide and Aoldings since ?ovember 23#3 and is their Chief ,/ecutive .fficer! Mr! Aees previously served as Chief ,/ecutive .fficer of *-- from (anuary 233% until eptember 23#3 and continues to serve as a member of its board of directors! Mr! Aees has e/perience as chief e/ecutive officer of BKC and for a large railroad and logistics company! Ae has )no+ledge of strategy and business development, finance, mar)eting and consumer insight, ris) assessment, leadership development and succession planning!

+anie! S, Sch"art)%P. Chief $inancia!

fficer

Mr! ch+art4 +as appointed as ,/ecutive Gice 0resident and Chief Financial .fficer of Aoldings in December 23#3, effective (anuary #, 23##! Mr! ch+art4 5oined Aoldings in .ctober 23#3 as ,/ecutive Gice 0resident, Deputy Chief Financial .fficer! ince (anuary 233;, Mr! ch+art4 has been a partner +ith &1 Capital, +here he +as responsible for managing &1 CapitalKs private equity business! Ae 5oined &1 Capital in (anuary 233% as an analyst and +or)ed +ith the firmKs public and private equity investments until ?ovember 23#3! From March 233& until (anuary 233%, Mr! ch+art4 +or)ed for *ltair Capital Management, a hedge fund located in tamford, Connecticut, and served as an analyst in the mergers and acquisitions group at Credit uisse First Boston from (une 233# to March 233&! Mr! ch+art4 is a director of &1 Capital! /onathan $it-patrick )%P. Chief Brand and

perations

fficer

Mr! Fit4patric) assumed the ne+ly created role of ,/ecutive Gice 0resident, Chief Brand and .perations .fficer of Aoldings in February 23##! Mr! Fit4patric) +as appointed as ,/ecutive Gice 0resident, 1lobal .perations of Aoldings in .ctober 23#3! Mr! Fit4patric) has +or)ed for BKC for #2 years! From *ugust 233$ to ?ovember 23#3, Mr! Fit4patric) served as enior Gice 0resident of .perations, ,urope, Middle ,ast and *frica of Aoldings! During his tenure at BKC, Mr! Fit4patric) has held several positions, including enior Gice 0resident, Development and Franchising, and Gice 0resident of the information technology team! $!a'ia $augeres )%P. #!oba! Chief 0arketing

fficer
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Ms! Faugeres +as appointed as ,/ecutive Gice 0resident, 1lobal Chief Mar)eting .fficer of Aoldings in eptember 23##! From (anuary #, 233; until (une 23##, Ms! Faugeres +as a partner at "rueh Consultoria em ?egocios -tda, a mar)eting consulting firm in Mo 0aulo, Bra4il +hich provided consulting services to Aoldings from (anuary 23## until (une 23##! From May 2337 until December 233>, Ms! Faugeres served as senior partner at ?'D,'* , a mar)eting consulting firm in ao 0aulo! From (anuary 233: until February 2337, Ms! Faugeres served as vice president of mar)et intelligence at 'nBev, a bre+ing company created in 233: from the merger of the Belgian company 'nterbre+ and the Bra4ilian company *mBev! Ste'en 0, Wiborg )%P and President of 1orth 2&erica Mr! Biborg has served as ,/ecutive Gice 0resident and 0resident of ?orth *merica of Aoldings since .ctober 23#3! Before 5oining BKC, Mr! Biborg +as 0resident and Chief ,/ecutive .fficer of Aeartland Food Corporation, one of the Burger King systemKs largest franchise operators! Ae held the position of Chief .perating .fficer from 233& to 2337 and +as then named 0resident and Chief ,/ecutive .fficer in December 2337! 0rior to 5oining Aeartland, Mr! Biborg +as an o+nerLoperator of %7 AardeeKs restaurants! /os3 ), Ci! )%P and President of )urope. 0idd!e )ast and 2frica Mr! Cil has served as ,/ecutive Gice 0resident and 0resident of ,urope, Middle ,ast and *frica of Aoldings since ?ovember 23#3! 0rior to this role, Mr! Cil +as Gice 0resident and =egional 1eneral Manager for Bal-Mart tores, 'nc! in Florida from February 23#3 to ?ovember 23#3! From eptember 233; to (anuary 23#3, Mr! Cil served as Gice 0resident of Company .perations of Aoldings and from eptember 233% to eptember 233;, he served as Division Gice 0resident, Mediterranean and ?B ,urope Divisions, ,M,* of Aoldings! Mr! Cil has been +ith BKC since 2333! /os3 +, To&as President of 4atin 2&erica ( Caribbean. )%P and Chief Peop!e

fficer

Mr! "omas +as appointed 0resident of -atin *merica J Caribbean and ,G0 and Chief 0eople .fficer of Aoldings in February 23## and served as ,/ecutive Gice 0resident and Chief 0eople .fficer since ?ovember 23#3! Mr! "omas +as previously vice president of human resources of Aoldings from *pril 2337 until ?ovember 23#3! ince 5oining BKC in ?ovember 233:, Mr! "omas has held multiple roles +ith the company! 'mmediately prior to 5oining BKC, he held human resources positions +ith =yder ystem 'nc! 0reviously, Mr! "omas held human resources positions +ith 0ubli/ uper Mar)ets! /ac5ue!ine $riesner %P. Contro!!er and Chief 2ccounting

fficer

Ms! Friesner +as appointed Gice 0resident, Controller and Chief *ccounting .fficer of Aoldings in March 23##! 0rior to her appointment, Ms! Friesner served as enior Director, 1lobal
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*ccounting and =eporting of Aoldings from December 23#3 until March 23## and as Director, 1lobal and "echnical *ccounting of Aoldings from ?ovember 233$ until December 23#3! From .ctober 2332 until December 23#3, Ms! Friesner served in positions of increasing responsibility +ith the company! Before 5oining Aoldings in .ctober 2332, Ms! Friesner +as an audit manager at 0rice+aterhouseCoopers in Miami, Florida! /i!! #ranat S%P. #enera! Counse! and Secretary Ms! 1ranat +as appointed enior Gice 0resident, 1eneral Counsel and ecretary of Aoldings in February 23##, effective in March 23##! 0rior to her appointment, Ms! 1ranat +as vice president and assistant general counsel of Aoldings from (uly 233$ until March 23##! Ms! 1ranat 5oined BKC in #$$; as a member of the legal department and served in positions of increasing responsibility +ith the company!

#enera! )n'iron&ent:
Burger King +as the second largest fast-food hamburger restaurant chain in the +orld as measured by the total number of restaurants and system+ide sales! *s of (une &3, 23#3, the company o+ned or franchised #2,#>: restaurants in >7 countries and U! ! territories, of +hich #,&;> +ere company-o+ned and #3,>;> +ere o+ned by franchisees! .f Burger KingKs restaurant total, >,2%; or 73I +ere located in the United tates! "he restaurants featured flame-broiled hamburgers, chic)en and other specialty sand+iches, french fries, soft drin)s, and other lo+priced food items! *ccording to management, the Management touted its business strategy as gro+ing the brand, running great restaurants, investing +isely, and focusing on its people! pecifically, management planned to accelerate gro+th bet+een 23#3 and 23#% so that international restaurants +ould comprise %3I of the total number! "he focus in international e/pansion +as to be in 8#9 countries +ith gro+th potential +here Burger King +as already established, such as pain, Bra4il, and "ur)eyN 829 countries +ith potential +here the firm had a small presence, such as *rgentina, Colombia, China, (apan, 'ndonesia, and 'talyN and 8&9 attractive ne+ mar)ets in the Middle ,ast, ,astern ,urope, and *sia! "he company competed against mar)et-leading McDonaldKs, BendyKs, and AardeeKs restaurants in this category and against regional competitors, such as CarlKs (r!, (ac) in the Bo/, and onic! 't also competed indirectly against a multitude of competitors in the E = restaurant segment, including "aco Bell, *rbyKs, and KFC, among others! *s the ?orth *merican mar)et became saturated, mergers occurred! For e/ample, "aco Bell, KFC, and 0i44a Aut +ere no+ part of @umO Brands! BendyKs and *rbyKs merged in 233;! *lthough the restaurant industry as a +hole had fe+ barriers to entry, mar)eting and operating economies of scale made it difficult for a ne+ entrant to challenge established U! ! chains in the FFA= category!
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Burger King could improve their sales by producing more advertisements on their products! "hey could also open ne+ branches in ma5or city all around the +orlds and some rural areas! ome of the state in Malaysia doesnKt have Burger King in their city so, Burger King could try and open ne+ outlet +hich +ill greatly improved their sales!

?e+ product development, particularly around brea)fast! Consideration of the products for 'ndia mar)et! Geteran products! Keep building its brand through ad campaign, such as the Bhopper Girgin<s ,/panding Business in developing mar)et such as 'ndia, =ussia, Bra4il @outh population in some mar)ets!

"hreatH Burger King faces threat from other ma5or burger fast food restaurant such as McDonaldKs and BendyKs! McDonaldKs produced the highest percentage sales among the three +hich is a threat for Burger King! "he cost to produce the burger during inflation and lac) of sales puts Burger King in a tough spot and other burger fast food restaurant could ta)e advantage to advertise ne+ product and hence raising their sales!

Industry )n'iron&ent: $i'e $orces 2na!ysis

Co&petition "ithin the )*isting P!ayers: BendyKs, Chec)ers, ub+ay and McDonalds are the main competitors of this fast food industry! McDonald<s is their largest competitor in fast food hamburger restaurants in terms of number of locations! BK is the second largest competitor in fast food restaurants! ub+ay is the largest single brand competitor in fast food restaurants in terms of number of locations! Bendy<s is the third largest competitor in fast food hamburger restaurants in terms of number of locations! @umO Brands is the largest company in fast food restaurants in terms of number of locations! Potentia! 1e" )ntrants: "he threat of ne+ entrants is lo+! "here are high capital requirements for doing business in fast food industry since franchises are high fi/ed cost investments that require economies of scale in order to be profitable! BK has e/isting brand loyalty to its customers and it has already obtained the most favorable store locations! "hese e/isting competitors are also more li)ely to have stronger supplier relations, +hich allo+ them to en5oy cost advantages that ne+ entrants cannot! *dditionally the entrants are unli)ely to have the same access to financial intermediaries!

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Substitutes: "he substitute in this sector is also lo+! Because BK or McDonalds or ub+ay all are ma)ing hamburgers of same type and competes in the same mar)et, so if any company tries to increase the price customers +ill s+itch to the other company! o in this case the monopoly business po+er is severely limited! Buyer6s po"er: Brand choice is typically a no compensatory process, +hich means that consumers focus on +hether a brand has one or more attributes that are important to them, rather than a compensatory process +here all attributes are traded off against each other! Aere customers are the buyers and the business depends on their evaluation of taste and price! Supp!iers: *s a global brand Burger King Corporation is committed to maintaining a diverse portfolio of suppliers! =estaurant ervices, 'nc! 8= '9, is the e/clusive purchasing agent for the vast ma5ority of products and services used by Burger KingP restaurant o+ners in the United tates and is manager of the system<s supply chain! Founded in #$$#, as an independent, member-o+ned cooperative, = ' acts on behalf of BK to achieve the best commercial terms for food, pac)aging, premiums, promotion products, supplies, equipment, distribution, and related services on behalf of its members! = ' +or)s closely +ith restaurant o+ners, Burger King Corporation, food and pac)aging suppliers, mar)eting agencies, equipment vendors, distributors, and information systems providers to streamline and improve the supply-chain efficiency of the system, ensuring a continuous and reliable supply of products and services to restaurants at the best cost and at established performance standards!

rgani-ationa! 2cti'ities 2na!ysis: 0arketing acti'ities of Burger King:

Burger )ing is one of the +orlds best )no+n fast food restaurants! "he companyQs :3,333 plase employees helped it earn over 6#$3 mill! 'n 233;! 'ts success is reflected in a 2;!:I increase in net profits in 233;!Currently Burger )ing operates in about ># countries +orld+ide, but it all began in Miami +here the first restaurant +as opened in #$%:! 0arketing 0i*: Product: *s a fast food hamburger restaurant chain, Burger )ing produces, hamburgers, cheeseburgers as +ell as Fries, alads, Aash Bro+rs, .nion rings, coffee, 5uice, ha)es etc! Price: Burger )ing recently 5oined McDonalds is offering a 6 # double cheese burger! P!ace:
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Burger King occupies primary locations! Pro&otion: Burger King is bac)ing its biggest product launch of the year, 0remium chic)en burger! Process: * burger King strategy has focused the customer segment that spends the most money at its restaurants

peration ( 4ogistics:
Burger King Aoldings is the parent company of Burger King, also )no+n as Burger King Corporation and abbreviated BKC, and is a Dela+are corporation formed on 2& (uly 2332! * privately held company, Rit derives its income from several sources, including property rental and sales through company o+ned restaurants, ho+ever a substantial portion of its revenue is dependent on franchise fees! During the transitional period after the acquisition of the company by &1 Capital, Burger King<s board of directors +as co-chaired by (ohn B! Chidsey, formerly C,. and chairman of the company, and *le/andre Behring, managing partner of &1 Capital! By *pril 23## the ne+ o+nership completed the restructuring of Burger King<s corporate management and Chidsey tendered his resignation, leaving Behring as current C,. and chair! "he company operates appro/imately :3 subsidiaries globally that oversee franchise operations, acquisitions and financial obligations such as pensions! .ne e/ample of a subsidiary is Burger King Brands, 'nc! +hich is responsible for the management of Burger King<s intellectual properties! * +holly o+ned subsidiary established in #$$3, Burger King Brands o+ns and manages all trademar)s, copyrights and domain names used by the restaurants in the United tates and Canada! 't also responsible for providing mar)eting and related services to the parent company! "he ma5ority of Burger King restaurants, appro/imately $3I, are privately held franchises! 'n ?orth *merica Burger King Corporation is responsible for licensing operators and administering of stores! 'nternationally the company often pairs +ith other parties to operate locations or it +ill outright sell the operational and administrative rights to a franchisee +hich is given the designation of master franchise for the territory! "he master franchise +ill then be e/pected to sub-license ne+ stores, provide training support and insure operational standards are maintained! 'n e/change for the oversight responsibilities, the master franchise +ill receive administrative and advertising support from Burger King Corporation to ensure a common mar)eting scheme!"he &1 Capital o+nership group announced in *pril 23## that it +ould begin divesting itself of many corporate o+ned locations +ith the intent to increase the number of privately held restaurants to $%I!

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*s the franchisor for the brand, Burger King Aoldings has several obligations and responsibilitiesN the company designs and deploys corporate training systems +hile overseeing brand standards such as building design and appearance!"he company also develops ne+ products and deploys them after presenting them to its franchises for approval per a 23#3 agreement bet+een itself and the franchise o+nership groups!Burger King has limited approval over franchise operations such as minimum hours of operation and promotional pricing! *dditionally Burger King designates approved vendors and distributors +hile ensuring safety standards at the productions facilities of its vendors!

Core Co&petencies of the fir&:

Burger King<s core competency is their main burgers and sand+iches, and fries! "hese are their core, or main items of production! .ther products such as their desserts or specialty drin)s are not their core products! Burger King is the +orldKs largest flame broiled fast food restaurant chain! *s of mid-233$, it operated about #2333 restaurants in all %3 states and in >: countries and U! ! territories +orld+ide through a combination of company-o+ned and franchised operations, +hich together employed nearly :33,333 people +orld+ide! "+o ma5or +ays in +hich Burger King differentiates itself from competitors are the +ay it coo)s hamburgers by its flame- broiled method as opposed to grills that fry and the options it offers customers as to ho+ they +ant their burgers! "hey also differentiated itself +ith some innovative advertising campaigns through the years, such as its use of a figure of a man +ho is the Burger SKingT! 'n loo)ing for ne+ countries to enter, Burger King loo)s most favourably at those +ith large populations 8especially of young people9, high consumption of beef, availability of capital to franchisees for gro+th,

2na!ysis of Strategic $actors:

Strengths:
#eographic +i'ersification Burger King has over ##,%33 fast food restaurants located in over >3 countries! >,23> of its restaurants are located in the United tates 872I9 and another :,&%; are established in international locations 8&;$I9 such as *sia, the Middle ,ast, *frica and Canada! )stab!ished 0arket Share

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*mong Fast Food restaurant chains, Burger King is second only to McDonalds and holds a #%I share of the United tates mar)et! "he companyKs profitability has also increased in recent years! 'n the period 2337-3;, its operating profit has increased from 6#>3 million in F@2337 to 6&%: million in F@233;! #!oba!!y Recogni-ed Brand Burger King is able to boast a brand that is +idely recogni4ed than)s to its flagship slogan Shave it your +ayT, the +hopper sand+ich and most recently enhanced by its mascot )no+n as Sthe KingT! "he company +as recently ran)ed >th in brand a+areness! Superior #ro"th P!an *ppro/imately $3I of Burger King =estaurants are o+ned and operated by independent franchisees, many of them family-o+ned units that have been in business for decades! "he company is able to gro+ +hile minimi4ing large capital e/penditure, mean+hile it collects fees and royalties from each franchise added! *llocation of local sources! >% Borld+ide locations Bhooper sand+ich

trong mar)et position! BKC is the +orld<s second-largest Fast Food Aamburger =estaurant 8FFA=9 chain as measured by the total number of restaurants and system-+ide sales! trong brand equity! Burger KingKs Bhopper is )no+n for its quality and it is the best )no+n brand in fast food! "he Bhopper 8and by e/tension, Burger King9 presents a +ell integrated Spac)ageT, +here product attributes, benefits, values and personality are distinctive, positive and mutually reinforcing! trong brand financial performance! Aigh quality products! Bide variety of food products!

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Weaknesses:
%u!nerabi!ity to 4abor and Regu!atory Inf!uences

*lthough the company operates in many international venues, the ma5ority of restaurants are in the United tates! "his concentration of operations in one geographic area increases company<s e/posure to local factors such as labor stri)es and the influence of regulatory changes! Re!iance on so7ca!!ed 8Super Custo&ers9

"here is some indication that Burger King may have been slo+ to transition to leaner and healthier restaurant fare in favor of pleasing its long term customers +ho are fans of the big larger portion sand+iches! Aeavily concentrated in the U H about 7%I of operations ?ot enough corporately o+ned stores means it relies heavily on franchisees to e/ecute its brand promise .ften changing o+nership! *dequate suppliers in the small mar)ets as a result of later e/panding after its rival McDonalds!

pportunities:
1e" Breakfast $ood Initiati'e

Burger King is see)ing to overhaul its brea)fast menu and +ill add tarbuc)s Corp!<s eattle<s Best Coffee to all its U! ! restaurants! 't has introduced earlier restaurant opening times in its United Kingdom locations! 1e" Hea!thier 0enu Ite&s

Burger King sponsoring its biggest ne+ product launch in years by introducing the "endercrisp, 0remium Chic)en Burger and accompanying the launch +ith a mar)eting campaign called Scheat on beefT! 1ationa! :rban Co&&unity 0arketing Initiati'e

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Burger King is see)ing to strengthen its standing in the *frican *merican Community through its ne+ Sne/t best moveT promotion +hich includes a +ell publici4ed tour of :# urban communities across the country! Brand 4icensing Pro;ect

Burger King has entered into a licensing arrangement 8bro)ered by Broad treet -icensing 1roup9 to further increase the companyKsK brand a+areness and broaden the presence of the iconic FKingF character, various licensees of Burger King Corp! +ill soon launch a line of branded "-shirts, and also an e/clusive collection of sleep+are and lounge +are! ?e+ product development, particularly around brea)fast! Keep building its brand through ad campaign, such as the Bhopper Girgin<s ,/panding Business in developing mar)et such as 'ndia, =ussia, Bra4il Burger King could improve their sales by producing more advertisements on their products! "hey could also open ne+ branches in ma5or city all around the +orlds and some rural areas! ome of the state in Malaysia doesnKt have Burger King in their city so, Burger King could try and open ne+ outlet +hich +ill greatly improved their sales!

Threats:
:nrest a&ong $ranchisees:

Burger KingsK ne+ dollar cheese burger initiative and loss leader strategy has upset some of its franchise o+ners +ho feel the pricing violates the franchise agreement! "he dispute spurred the ?ational Franchisee *ssociation to file a la+suit against the company! 'n 233$ Franchisees voted t+ice against the ne+ promotions! "he company reportedly has dropped the 6# burger promotion, but there may be bad feelings lingering for a +hile! The S!o" Reco'ering )cono&y:

"he challenging global economy continues to hamper the companyKs financial strength 8ran)ed 2&;th among its peers9! Burger King posted +ea)er-than-e/pected quarterly results in the last half of 233$, and missed stoc) analystsK e/pectations! "he decline +as driven in part by continued adverse macroeconomic conditions, including record levels of unemployed! Changing consumer habits to+ards healthier food choices 'ntense competition from McDonald<s, other restaurants and even retailers 'ncreasing labor costs putting pressure on bottom line margins

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Burger King faces threat from other ma5or burger fast food restaurant such as McDonald Iu23#$s and BendyIu23#$s! Burger King faces threat from other ma5or burger fast food restaurant such as McDonaldKs and BendyKs! McDonaldKs produced the highest percentage sales among the three +hich is a threat for Burger King! "he cost to produce the burger during inflation and lac) of sales puts Burger King in a tough spot and other burger fast food restaurant could ta)e advantage to advertise ne+ product and hence raising their sales!

Identification of strategic issue <Business Strategy=:

Burger King uses an undifferentiated mar)et coverage strategy, going after the +hole fast food mar)et +ith one brand! "hus there is one target mar)et for Burger KingH the +hole fast food mar)et! "his target mar)et has many needs and +ants, including ingredient quality, preparation style, preparation quality, service style, service quality, menu depth, menu variety, price, atmosphere, cleanliness, amenities 8e!g!, play area9, promotions, meal coverage, convenience, no smo)ing policy and satisfaction guarantees! For consumers in this target mar)et +e +ant to )no+ ho+ they go about choosing among different brands of fast food! "he goal is to position Burger King in the mind of consumers! "o do that +e can create a Buyer Behavior Flo+ Chart that depicts the decision process in a +ay that sho+s the more important evaluative dimensions at the top and the ones that any one brand can use to distinguish themselves from their main competitors at the bottom!

Strategic issues fo!!o"ed by Burger King: Burger King is the second largest fast-food hamburger restaurant chain in the +orld measured by the total number of restaurants and system +ide sales! *ccording to management, the company generated revenues from three sourcesH 8#9 =etail sales at company-o+ned restaurantsN 829 =oyalty payments on sales and franchise fees paid by franchiseesN and 8&9 0roperty income from restaurants leased to franchisees! *ppro/imately $3I of Burger King =estaurants +ere franchised, a higher percentage than other competitors in the fast-food hamburger category! *lthough such a high percentage of franchisees meant lo+er capital requirements compared to competitors, it also meant that management had limited control over franchisees! Franchisees in the United tates and Canada paid an average of &!$I of sales to the company in 23#3! 'n addition, these franchisees contributed :I of gross sales per month to the advertising fund! Franchisees +ere required to purchase food, pac)aging, and equipment from company-approved suppliers! "he management follo+s some strategies and they are Management publici4ed its business strategy as gro+ing the brand, running great restaurants, investing +isely, and focusing on its people!

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Management planned to accelerate gro+th bet+een 23#3 and 23#% so that international restaurants +ould comprise %3I of the total number! "he focus in international e/pansion +as to be in countries +ith gro+th potential +here Burger King +as already established, countries +ith potential +here the firm had a small presence, and attractive ne+ mar)ets in the Middle ,ast, ,astern ,urope, and *sia! Management +as also +or)ing to update the restaurants by implementing its ne+ 23L23 design and complementary Bhopper Bar design introduced in 233;! By 23#3, more than 233 Burger King =estaurants had adopted the ne+ 23L23 design that evo)ed the industrial loo) of corrugated metal, bric), +ood, and concrete! "he ne+ design +as to be introduced in $% company-o+ned restaurants during fiscal 23##! Management +as using a SbarbellT menu strategy to introduce ne+ products at both the premium and lo+-priced ends of the product continuum!

BK al+ays +anted a targeted mar)eting approach! o they determined that #;- to &%-year-olds +ere the right demographic for them! "he company has ability to compete internationally in an intensely competitive industryN they had the ability to successfully implement an international gro+th and development strategy and ris)s related to our international operations! Strategies to coop "ith current high cost business situation by Burger King: "he foundersK vision of providing Squality food, served quic)ly, at a reasonable priceT became a pioneering business model that helped shape the fast-food industry! *s Burger King rose in popularity, restaurants began to open across the United tates! 'n #$7&, Burger King opened its first international restaurant in 0uerto =ico! 'n #$>%, drive-thru service began, and by #$>>, Burger King had opened 2,333 restaurants on three continents! "oday the Burger King system operates more than ##,&33 restaurants in %3 states and 7$ countries! *ppro/imately $3 percent of Burger King =estaurants are o+ned and operated by independent franchisees! Burger King Corporation 8BKC9 operates and grants franchises to operate quic)-service hamburger restaurants using certain trademar)s, service mar)s and trade names, and a recogni4ed design, equipment system, color scheme and styles of buildings and facilities, signs, certain standards, specifications and procedures of operation, quality and consistency standards for products and services offered, and procedures for inventory control and management! BKC does not generally offer any direct or indirect financing to Franchisees! "o reduce the higher costing in business companies need to ta)e care of several cost related issues li)e, The operations strategy: BK encourages patrons to customi4e burgers and other menu items, uses a ma)e-to-order approach! BK can customi4e products because it builds burgers one at a
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time rather than batch-process them! 't saves time as +ell as money! BK has introduced a number of innovations that have helped ma)e the company more efficient! BK, for e/ample, +as the first to offer drive-through service 8+hich no+ accounts for %; percent of its sales9! BK +as able to cut bac) one employee per day at every one of its more than eleven thousand restaurants! Material costs also +ent do+n because customers usually fill cups +ith more ice, +hich is cheaper than a beverage! Moreover, there +ere savings on supply costs because most customers donKt bother +ith lids, and many donKt use stra+s! .n top of everything else, most customers li)ed the system 8for one thing, it allo+ed them to customi4e their o+n drin)s by mi/ing beverages9, and as a result, customer satisfaction +ent up, as +ell! .verall, the ne+ process +as a ma5or success and quic)ly became the industry standard! $aci!ities: Bhen starting or e/panding a service business, o+ners and managers invest a lot of time in selecting a location, determining its si4e and layout, and forecasting demand! * poor location or a badly designed facility can cost customers, and inaccurate estimates of demand for products can result in poor service, e/cessive costs, or both! BK planners perform a detailed analysis of demographics and traffic patterns, yet the most important factor is usually traffic countUthe number of cars or people that pass by a specific location in the course of a day! 'n the United tates, +here +e travel almost every+here by car, BK loo)s for busy intersections, interstate interchanges +ith easy off and on ramps, or such Sprimary destinationsT as shopping malls, tourist attractions, do+nto+n business areas, or movie theaters! 'n ,urope, +here public transportation is much more common, planners focus on sub+ay, train, bus, and trolley stops! Si-e and 4ayout: For its first three decades, almost all BK restaurants +ere pretty much the same! "hey all sat on one acre of land 8located Sthrough the light and to the rightT9, had about four thousand square feet of space, and held seating for seventy customers! *ll )itchens +ere roughly the same si4e! *s long as land +as cheap and sites +ere readily available, this system +or)ed +ell enough! By the early #$$3s, ho+ever, most of the prime sites had been ta)en, if not by BK itself, then by one of its fast-food competitors or other businesses needing a choice spot, including gas stations and video stores! Bith everyone bidding on the same sites, the cost of a prime acre of land had increased from 6#33,333 to over 6# million in a fe+ short years! "o continue gro+ing, BK needed to change the +ay it found and developed its locations! 0lanners decided that they had to find +ays to reduce the si4e of a typical BK restaurant! For one thing, they could reduce the number of seats, because the business at a typical outlet had shifted over time from $3 percent inside dining and #3 percent drive-through to a %3-%3 split! BK customers tended to be in a hurry, and more customers preferred the convenience of drive-through Sdining!T Capacity P!anning: ,stimating capacity needs for a service business isnKt the same thing as estimating those of a manufacturer! * manufacturer can predict overall demand, produce the product, store it in inventory, and ship it to a customer +hen itKs ordered! ervice firms have to build sufficient capacity to satisfy customersK needs on an Sas-demandedT basis! -i)e
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manufacturers, service providers must consider many variables +hen estimating demand and capacity! Burger King developed a ne+, variable speed broiler that could handle multiple items +ith different coo)ing rates and times! "hese ne+ unit began testing in #$$$ and eventually evolved into the t+o models the company deployed system-+ide in 233;D233$! *ccompanying these ne+ broilers +as ne+ food-holding equipment and a computer-based product monitoring system for its coo)ed products! "he ne+ system allo+s for more concise trac)ing of product quality, +hile giving its users a method to streamline costs by more precisely pro5ecting sales and product usage!

Reco&&endation:
'nitiative of ?e+ Brea)fast Food Discover ne+ Aealthier Menu 'tems ?ational Urban Community Mar)eting 'nitiative ,/panding Business in developing mar)et such as 'ndia, =ussia, Bra4il ?e+ product development, particularly around brea)fast! Follo+ the competitorsK advertising policy to capture specific target group!

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