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Case Analysis Bsit 2b Group 5
Case Analysis Bsit 2b Group 5
- The first problem is that Burger King is facing high competition from
McDonald’s, Wendy’s, Pizza Hut, Taco Bell, and others that are operating in
the fast food industry. The second problem issue is that the company’s
innovative products provide sales for the short term but not the long term. The
discount offers also cannot work for it. The company has, however, achieved
growth in premium drinks by 14% and the packed foods division has also
grown by 5% but the profits have declined by 12%. The third problem is the
fair price of the company, the company has received many bids, but it has to
decide which bid to accept and which to reject based on the fair price of the
company. It is necessary to get the fair price of the company first, and then
decide which arrangement to accept to sell the business. The fourth problem
is to decide which option to select, whether to issue IPO or to sell Burger King
to a private equity firm or a corporation.
- Company is facing a decline in its sales and the only solution to increase the
demand for its product is to offer innovative products, not discounted
products. The strategy can be to follow the competitors as they must see
which of the product is successful in the market then the company must copy
that product. The other option is to go for a survey and then choose the
product innovation according to the customer demand. The company’s gross
profit is declining due to the offer of the $0.99 deal which cannot generate
sufficient profits for the company. The company must not focus on discounts
but to focus on innovative products that can be sold at a premium price. The
other solution is to merge with a large company that is operating in the same
industry and that has the resources and efficiency to run the operations of
Burger King successfully.
CASE ANALYSIS CONTENT #2
- is KFC sells up to 850 million chickens a year. It does this in collaboration with
other companies that slaughter and rear the chickens for them. However, KFC
in collaboration with these companies has been accused of killing the
chickens inhumanely and subjecting them to torture. They have been accused
of standing by as chickens are crammed into cages resulting in broken bones
before they’re slaughtered. Animal rights organizations have condemned
these acts and this poses a problem for KFC if they intend to keep any
customers. KFC has also faced problems with the health experts who claim
that the oils used to make the chicken consist of Tran’s fats which result in
complicated health issues such as obesity. Nutritionists and other health
organizations have threatened to sue KFC if they do not change the kind of fat
that they use to make their chicken products. Furthermore, the company has
faced protests in India where angry farmers are against the company bringing
in ‘junk food’ to a nation that greatly suffers from malnutrition. The farmers
fear that the number of growing fast food chain restaurants could deplete the
country of their livestock and lead to deterioration of agricultural activities.
- Consumers’ desire to have a healthier diet at KFC and the humane treatment
of chickens is one of the challenges that KFC is facing today. These issues are
closely related to the sales of the company and should therefore be addressed
immediately if the company wants to maintain its customer base. A new
marketing plan has to be designed in order to improve the overall image of
KFC and attract more customers. The marketing strategy has to address the
issue of torturing chickens and thus create solid revenue for the company.