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BURGER KING’S CASE

1. Expand near its headquarters


- Trends Analysis in Domestic
market (consumption
decreasing, performance
declining…)
According to Rhee and Cheng,
‘Business wishing to begin
international expansion start
with
close and similar countries’
(2016). This is the case for BK.
Indeed, BK developed a
presence
in Latin America and Caribbean
countries before entering places
with a much bigger
population, such as China,
Russia or South Africa, because
BK’s headquarter is located in
Miami, also called “the capital
of Latin America”. Indeed,
many people from the Latin
American and Caribbean region
have already come to Miami
and they knew BK. So, it is
easier to gain brand recognition
and acceptance in these
countries. The nearness allows
also
BK managers to visit these
countries and for franchises to
visit headquarter. Moreover,
because BK’s strategy is based
on franchising, it is easier if
suppliers and prospective
franchises already know the
company. Finally, expanding
into countries with a similar
culture
eases the process of adapting
the business to the new setting.
These countries also serve as
a point of reference for future
expansions, allowing for some
trial and error experiments
when it comes to managing an
international business.
2. Reach new opportunities and
try to re-enter in some markets
Two reasons have been
prevalent in the company’s
decisions to leave markets:
- The franchise not performing
adequately, such as not making
royalty payments or
investing sufficiently in the
business
- The market being too small to
support the necessary
infrastructure, such as
slaughterhouse and beef-
grinding facilities
Let’s take the example of
Columbia: BK entered the
Colombian market in the 1980s,
but
pulled out after several years for
two main reasons:
1. Restriction on royalty
expatriation
2. Period of economic and
political turmoil in Colombia
However, BK re-entered the
market few years later because:
1. the Columbian’s cities
seemed safe for people to go
out to eat
2. The Peso was strong
3. A rise in two-income
families, which means a more
disposable income to spend on
eating out
4. New shopping centers
So, BK decided to sign an
agreement with KINGO, a well-
established Colombian
company for
franchise right to Medellin, Cali
and northern Colombia. BK
expanding in Colombia was
finally a good strategy for the
company. As claimed by
Armando Jacomino, the
president of
Latin America NK Corp.
“Colombia is a key market for
the continued growth of the
BURGER
KING® brand in Latin
America, and is an important
piece of the company’s global
development strategy”.
BURGER KING’S CASE
1. Expand near its headquarters
- Trends Analysis in Domestic
market (consumption
decreasing, performance
declining…)
According to Rhee and Cheng,
‘Business wishing to begin
international expansion start
with
close and similar countries’
(2016). This is the case for BK.
Indeed, BK developed a
presence
in Latin America and Caribbean
countries before entering places
with a much bigger
population, such as China,
Russia or South Africa, because
BK’s headquarter is located in
Miami, also called “the capital
of Latin America”. Indeed,
many people from the Latin
American and Caribbean region
have already come to Miami
and they knew BK. So, it is
easier to gain brand recognition
and acceptance in these
countries. The nearness allows
also
BK managers to visit these
countries and for franchises to
visit headquarter. Moreover,
because BK’s strategy is based
on franchising, it is easier if
suppliers and prospective
franchises already know the
company. Finally, expanding
into countries with a similar
culture
eases the process of adapting
the business to the new setting.
These countries also serve as
a point of reference for future
expansions, allowing for some
trial and error experiments
when it comes to managing an
international business.
2. Reach new opportunities and
try to re-enter in some markets
Two reasons have been
prevalent in the company’s
decisions to leave markets:
- The franchise not performing
adequately, such as not making
royalty payments or
investing sufficiently in the
business
- The market being too small to
support the necessary
infrastructure, such as
slaughterhouse and beef-
grinding facilities
Let’s take the example of
Columbia: BK entered the
Colombian market in the 1980s,
but
pulled out after several years for
two main reasons:
1. Restriction on royalty
expatriation
2. Period of economic and
political turmoil in Colombia
However, BK re-entered the
market few years later because:
1. the Columbian’s cities
seemed safe for people to go
out to eat
2. The Peso was strong
3. A rise in two-income
families, which means a more
disposable income to spend on
eating out
4. New shopping centers
So, BK decided to sign an
agreement with KINGO, a well-
established Colombian
company for
franchise right to Medellin, Cali
and northern Colombia. BK
expanding in Colombia was
finally a good strategy for the
company. As claimed by
Armando Jacomino, the
president of
Latin America NK Corp.
“Colombia is a key market for
the continued growth of the
BURGER
KING® brand in Latin
America, and is an important
piece of the company’s global
development strategy”.
BURGER KING’S CASE
1. Expand near its headquarters
- Trends Analysis in Domestic
market (consumption
decreasing, performance
declining…)
According to Rhee and Cheng,
‘Business wishing to begin
international expansion start
with
close and similar countries’
(2016). This is the case for BK.
Indeed, BK developed a
presence
in Latin America and Caribbean
countries before entering places
with a much bigger
population, such as China,
Russia or South Africa, because
BK’s headquarter is located in
Miami, also called “the capital
of Latin America”. Indeed,
many people from the Latin
American and Caribbean region
have already come to Miami
and they knew BK. So, it is
easier to gain brand recognition
and acceptance in these
countries. The nearness allows
also
BK managers to visit these
countries and for franchises to
visit headquarter. Moreover,
because BK’s strategy is based
on franchising, it is easier if
suppliers and prospective
franchises already know the
company. Finally, expanding
into countries with a similar
culture
eases the process of adapting
the business to the new setting.
These countries also serve as
a point of reference for future
expansions, allowing for some
trial and error experiments
when it comes to managing an
international business.
2. Reach new opportunities and
try to re-enter in some markets
Two reasons have been
prevalent in the company’s
decisions to leave markets:
- The franchise not performing
adequately, such as not making
royalty payments or
investing sufficiently in the
business
- The market being too small to
support the necessary
infrastructure, such as
slaughterhouse and beef-
grinding facilities
Let’s take the example of
Columbia: BK entered the
Colombian market in the 1980s,
but
pulled out after several years for
two main reasons:
1. Restriction on royalty
expatriation
2. Period of economic and
political turmoil in Colombia
However, BK re-entered the
market few years later because:
1. the Columbian’s cities
seemed safe for people to go
out to eat
2. The Peso was strong
3. A rise in two-income
families, which means a more
disposable income to spend on
eating out
4. New shopping centers
So, BK decided to sign an
agreement with KINGO, a well-
established Colombian
company for
franchise right to Medellin, Cali
and northern Colombia. BK
expanding in Colombia was
finally a good strategy for the
company. As claimed by
Armando Jacomino, the
president of
Latin America NK Corp.
“Colombia is a key market for
the continued growth of the
BURGER
KING® brand in Latin
America, and is an important
piece of the company’s global
development strategy”.
BURGER KING’S CASE

1. Expand near its headquarters - Trends Analysis in Domestic market (consumption decreasing,
performance declining…) According to Rhee and Cheng, ‘Business wishing to begin international
expansion start with close and similar countries’ (2016). This is the case for BK. Indeed, BK
developed a presence in Latin America and Caribbean countries before entering places with a
much bigger population, such as China, Russia or South Africa, because BK’s headquarter is
located in Miami, also called “the capital of Latin America”. Indeed, many people from the Latin
American and Caribbean region have already come to Miami and they knew BK. So, it is easier
to gain brand recognition and acceptance in these countries. The nearness allows also BK
managers to visit these countries and for franchises to visit headquarter. Moreover, because
BK’s strategy is based on franchising, it is easier if suppliers and prospective franchises already
know the company. Finally, expanding into countries with a similar culture eases the process of
adapting the business to the new setting. These countries also serve as a point of reference for
future expansions, allowing for some trial and error experiments when it comes to managing an
international business.

2. Reach new opportunities and try to re-enter in some markets


Two reasons have been prevalent in the company’s decisions to leave markets:- The franchise
not performing adequately, such as not making royalty payments or investing sufficiently in the
business- The market being too small to support the necessary infrastructure, such as
slaughterhouse and beef-grinding facilities
Let’s take the example of Columbia: BK entered the Colombian market in the 1980s, but pulled
out after several years for two main reasons:
1. Restriction on royalty expatriation
2. Period of economic and political turmoil in ColombiaHowever, BK re-entered the market few
years later because:
1. the Columbian’s cities seemed safe for people to go out to eat
2. The Peso was strong
3. A rise in two-income families, which means a more disposable income to spend on eating out
4. New shopping centers So, BK decided to sign an agreement with KINGO, a well-established
Colombian company for franchise right to Medellin, Cali and northern Colombia. BK expanding
in Colombia was finally a good strategy for the company. As claimed by Armando Jacomino, the
president of Latin America NK Corp. “Colombia is a key market for the continued growth of the
BURGER KING® brand in Latin America, and is an important piece of the company’s global
development strategy”.

BK has a ‘structured approach’


when entering new markets. But
in order to be a success, it
has to take into account some
factors:
- Food costs
- Government regulation on
food
- Financial system
- No accustomed to religious,
local or cultural customs
- Quality of infrastructures
- Availability if potential
franchise with experience and
resources
BK has a ‘structured approach’
when entering new markets. But
in order to be a success, it
has to take into account some
factors:
- Food costs
- Government regulation on
food
- Financial system
- No accustomed to religious,
local or cultural customs
- Quality of infrastructures
- Availability if potential
franchise with experience and
resources
BK has a ‘structured approach’
when entering new markets. But
in order to be a success, it
has to take into account some
factors:
- Food costs
- Government regulation on
food
- Financial system
- No accustomed to religious,
local or cultural customs
- Quality of infrastructures
- Availability if potential
franchise with experience and
resources
BK Bingo
BK has a ‘structured approach’ when entering new markets. But in order to be a success, it has
to take into account some factors:
- Food costs
- Government regulation on food
- Financial system
- No accustomed to religious, local or cultural customs
- Quality of infrastructures
- Availability if potential franchise with experience and resources

Burger King, however, doesn’t usually adjust its menu to local tastes across all its international markets, just offering its standard
menu, and this strategy has stunted the company’s growth in some countries – especially the emerging mar- kets.

(their super week spot compare to the others)

In Asia Western brands are trading successfully due to the local perception that the stores are more hygienic than the local chains
because health and cleanli- ness standards aren’t viewed as being enforced but foreign chains are thought to import their own
high hygiene stand- ards. However, while there’s always an initial excitement and kudos about try- ing Western menus, in the
longer term the majority of the population has more traditional tastes, so retailers benefit from offering tailored menu items; but
Burger King has trailed behind its rivals in this respect. For instance in Japan Burger King’s only ‘local’ item is Japanese beer,
but Mc- Donald’s, for example, has the Sakurater- itama burger that is made with Sakura sauce – McDonald’s’ success in these
regions shows that US-based chains can succeed with the right strategies.

well in both Germany and Turkey; Germany is its big- gest international market (for both turnover and store numbers) and
Turkey ranks seventh. In Germany, the company has positioned itself as providing higher quality food than McDonald’s.
In Turkey, Burger King has a good local franchise partner (Tab Gida) that knows the market well and has adjusted its strategies
accord- ingly – including the menu.

Основная форма БК – франшизы

Burger King’s primary intensive growth strategy is market penetration. The goal of this intensive
strategy is to grow revenues from existing customers or markets where the firm already has
operations. For example, Burger King implements this intensive growth strategy by opening new
restaurants in its current markets to get a bigger market share.

При заходе на рос.рынок миссию бренда писали:

снизу вверх, от линейного персонала на местах; самостоятельно, без привлечения консультантов

Resources used

https://www.studocu.com/fr/document/neoma-business-school/international-business/bk-
questions/48875076

https://thestrategystory.com/blog/burger-king-swot-analysis/
(good swot analysis BUT it’s strategic planning tools not tactics)

https://ivypanda.com/essays/burger-king-beefs-up-global-operations/

BURGER KING’S CASE


1. Expand near its headquarters
- Trends Analysis in Domestic
market (consumption
decreasing, performance
declining…)
According to Rhee and Cheng,
‘Business wishing to begin
international expansion start
with
close and similar countries’
(2016). This is the case for BK.
Indeed, BK developed a
presence
in Latin America and Caribbean
countries before entering places
with a much bigger
population, such as China,
Russia or South Africa, because
BK’s headquarter is located in
Miami, also called “the capital
of Latin America”. Indeed,
many people from the Latin
American and Caribbean region
have already come to Miami
and they knew BK. So, it is
easier to gain brand recognition
and acceptance in these
countries. The nearness allows
also
BK managers to visit these
countries and for franchises to
visit headquarter. Moreover,
because BK’s strategy is based
on franchising, it is easier if
suppliers and prospective
franchises already know the
company. Finally, expanding
into countries with a similar
culture
eases the process of adapting
the business to the new setting.
These countries also serve as
a point of reference for future
expansions, allowing for some
trial and error experiments
when it comes to managing an
international business.
2. Reach new opportunities and
try to re-enter in some markets
Two reasons have been
prevalent in the company’s
decisions to leave markets:
- The franchise not performing
adequately, such as not making
royalty payments or
investing sufficiently in the
business
- The market being too small to
support the necessary
infrastructure, such as
slaughterhouse and beef-
grinding facilities
Let’s take the example of
Columbia: BK entered the
Colombian market in the 1980s,
but
pulled out after several years for
two main reasons:
1. Restriction on royalty
expatriation
2. Period of economic and
political turmoil in Colombia
However, BK re-entered the
market few years later because:
1. the Columbian’s cities
seemed safe for people to go
out to eat
2. The Peso was strong
3. A rise in two-income
families, which means a more
disposable income to spend on
eating out
4. New shopping centers
So, BK decided to sign an
agreement with KINGO, a well-
established Colombian
company for
franchise right to Medellin, Cali
and northern Colombia. BK
expanding in Colombia was
finally a good strategy for the
company. As claimed by
Armando Jacomino, the
president of
Latin America NK Corp.
“Colombia is a key market for
the continued growth of the
BURGER
KING® brand in Latin
America, and is an important
piece of the company’s global
development strategy”.
https://panmore.com/burger-king-generic-intensive-growth-strategies#:~:text=Burger%20King
%20uses%20two%20generic,which%20leads%20to%20low%20prices.

BURGER KING’S CASE


1. Expand near its headquarters
- Trends Analysis in Domestic
market (consumption
decreasing, performance
declining…)
According to Rhee and Cheng,
‘Business wishing to begin
international expansion start
with
close and similar countries’
(2016). This is the case for BK.
Indeed, BK developed a
presence
in Latin America and Caribbean
countries before entering places
with a much bigger
population, such as China,
Russia or South Africa, because
BK’s headquarter is located in
Miami, also called “the capital
of Latin America”. Indeed,
many people from the Latin
American and Caribbean region
have already come to Miami
and they knew BK. So, it is
easier to gain brand recognition
and acceptance in these
countries. The nearness allows
also
BK managers to visit these
countries and for franchises to
visit headquarter. Moreover,
because BK’s strategy is based
on franchising, it is easier if
suppliers and prospective
franchises already know the
company. Finally, expanding
into countries with a similar
culture
eases the process of adapting
the business to the new setting.
These countries also serve as
a point of reference for future
expansions, allowing for some
trial and error experiments
when it comes to managing an
international business.
2. Reach new opportunities and
try to re-enter in some markets
Two reasons have been
prevalent in the company’s
decisions to leave markets:
- The franchise not performing
adequately, such as not making
royalty payments or
investing sufficiently in the
business
- The market being too small to
support the necessary
infrastructure, such as
slaughterhouse and beef-
grinding facilities
Let’s take the example of
Columbia: BK entered the
Colombian market in the 1980s,
but
pulled out after several years for
two main reasons:
1. Restriction on royalty
expatriation
2. Period of economic and
political turmoil in Colombia
However, BK re-entered the
market few years later because:
1. the Columbian’s cities
seemed safe for people to go
out to eat
2. The Peso was strong
3. A rise in two-income
families, which means a more
disposable income to spend on
eating out
4. New shopping centers
So, BK decided to sign an
agreement with KINGO, a well-
established Colombian
company for
franchise right to Medellin, Cali
and northern Colombia. BK
expanding in Colombia was
finally a good strategy for the
company. As claimed by
Armando Jacomino, the
president of
Latin America NK Corp.
“Colombia is a key market for
the continued growth of the
BURGER
KING® brand in Latin
America, and is an important
piece of the company’s global
development strategy”.
https://www.enterpriseappstoday.com/stats/burger-king-statistics.html
(just some funky stats)

https://graduateway.com/case-6-burger-king-selling-whoppers-in-japan/ essay of Japanize


market presence improvements

https://www.qsrmagazine.com/fast-food/burger-king-braces-international-boom

BURGER KING’S CASE


1. Expand near its headquarters
- Trends Analysis in Domestic
market (consumption
decreasing, performance
declining…)
According to Rhee and Cheng,
‘Business wishing to begin
international expansion start
with
close and similar countries’
(2016). This is the case for BK.
Indeed, BK developed a
presence
in Latin America and Caribbean
countries before entering places
with a much bigger
population, such as China,
Russia or South Africa, because
BK’s headquarter is located in
Miami, also called “the capital
of Latin America”. Indeed,
many people from the Latin
American and Caribbean region
have already come to Miami
and they knew BK. So, it is
easier to gain brand recognition
and acceptance in these
countries. The nearness allows
also
BK managers to visit these
countries and for franchises to
visit headquarter. Moreover,
because BK’s strategy is based
on franchising, it is easier if
suppliers and prospective
franchises already know the
company. Finally, expanding
into countries with a similar
culture
eases the process of adapting
the business to the new setting.
These countries also serve as
a point of reference for future
expansions, allowing for some
trial and error experiments
when it comes to managing an
international business.
2. Reach new opportunities and
try to re-enter in some markets
Two reasons have been
prevalent in the company’s
decisions to leave markets:
- The franchise not performing
adequately, such as not making
royalty payments or
investing sufficiently in the
business
- The market being too small to
support the necessary
infrastructure, such as
slaughterhouse and beef-
grinding facilities
Let’s take the example of
Columbia: BK entered the
Colombian market in the 1980s,
but
pulled out after several years for
two main reasons:
1. Restriction on royalty
expatriation
2. Period of economic and
political turmoil in Colombia
However, BK re-entered the
market few years later because:
1. the Columbian’s cities
seemed safe for people to go
out to eat
2. The Peso was strong
3. A rise in two-income
families, which means a more
disposable income to spend on
eating out
4. New shopping centers
So, BK decided to sign an
agreement with KINGO, a well-
established Colombian
company for
franchise right to Medellin, Cali
and northern Colombia. BK
expanding in Colombia was
finally a good strategy for the
company. As claimed by
Armando Jacomino, the
president of
Latin America NK Corp.
“Colombia is a key market for
the continued growth of the
BURGER
KING® brand in Latin
America, and is an important
piece of the company’s global
development strategy”

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