Burger King is no stranger to innovation and we will continue to push the boundaries in order to cater for our customers

ever changing needs and cravings for quality food.

Business analysis of the company

Burger King, often abbreviated as BK, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United States. The company began in 1953 as Insta-Burger King, a Jacksonville, Florida-based restaurant chain. After Insta-Burger King ran into financial difficulties in 1955, its two Miami-based franchisees, David Edgerton and James McLamore, purchased the company and renamed it Burger King. Burger King Corporation began franchising in 1959 Fast food operators in Malaysia have recorded sustainable growth in the past few years due to the high consumption of fast food products among the Generation Y that was reflected in the sales growth. () $11 billion-Burger King (BK) was also the second-largest burger chain in the world with more than 12,300 restaurants in 78 countries (BK.com) . A privately-owned company, In addition to its popular Whopper sandwich, the chain o f f e r e d a v a r i e t y o f b u r g e r s , c h i c k e n sandwiches, salads, and breakfast items. In 2004, the chain enjoyed 14.2% share of the fast food market in the world. T h e frequent c h a n g e i n management and their respective strategies had taken a toll on the company. BKs revenue had been declining steadily since 1999. The company had lost nine CEOs s i n c e 1 9 9 9 . (IBS Case Development Center, 2008) 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.

Businesses company is involved in

The fast food restaurants are now in the growing pace as it is convenience and suitsthe lifestyle of Malaysias citizens who are now having a more hectic and busy lifestyle. Fastfood outlets in Malaysia provide a wide range of products and also delivery services that suitsthe preferences of various consumers. Research also found that Malaysia is experiencing a rapid urbanization lifestyle(PricewaterhouseCoopers, 2004/2005). As the result, Malaysians are becoming more

westernized and cosmopolitan. Many Malaysians especially the younger generation patronize fast food outlets (Muthaly, Ratnatunga and Schroder, 1999). Malaysian who lives in urban areas have used to shop and dine-out in large shopping malls (The Economist Intelligence Unit, 2005). Consequently, Western food chains like McDonalds, KFC, Burger king, Pizza Hut, etc are located strategically in large shopping mall all over Malaysia. Local franchised chains such as Marry brown, Sugar Bun and Daves Deli, which offer similar menus as the 9KFC and McDonalds outlets are also expanding rapidly. Competition among these quick service restaurants (QSRs) is intensive. In addition, it is expected that the fast food sector willexperience the fastest growth of between 20% to 30% per annum. Full service restaurants willsee good growth of between 10% and 30% over the next three years. (USDA, 2005). To cater to this growing demand for convenience of eating out, pizza hut will open five more outletssoon (QSR Brands Bhd, 2005)

Market entry method

Malaysia is practically a franchise haven. Just name it, McDonalds, Burger King, Kentucky Fried Chicken, A&W, Kenny Rogers and many more international franchises are available (Kodexii.Net,, 2011).
Franchising in Malaysia is still in the early stages, with growth really starting only in1992 when the government began promoting the sector. Under the 8th Malaysian Plan (8MP), the country's economic development plan for 2001-2005, franchising has been identified as one of the growth areas for the structural change and upgrading of the distributive trade industry. The government allocated US$26.3 million (RM100 million) to the Ministry of Entrepreneur Development to promote, market, train, and finance the Franchise Development Program (FDP) with the objective of establishing 1,000 franchisees and 50 new franchisors (and hopefully, building 1,000 entrepreneurs) over the fiveyear period. (MalaysiaMission.com, 2005)

CIMB Private Equity today announced an investment in one of the leading quick service restaurant chains in the country through a Burger King franchisee. CIMB Private Equity Fund 1, completed the acquisition of up to a 60% equity stake in Cosmo Restaurants Sdn Bhd ("Cosmo"), the largest franchisee of the Burger King brand in Malaysia. (CIMB Press Release, 2007) Ekuiti Nasional Berhad (Ekuinas), the governmentlinked private equity fund management company, 15 September 2011 announced that it has undertaken an investment of RM68.2 million in the local franchise of Burger King,

Marketing strategy
April 16, 2012 Burger King Malaysia RM5 Ala Carte Burger Promotion (Mudah.co, 2012)

launches a promotional campaign "Fund Raising Feast" to raise approximately RM50,000.00 in support of Mercy Malaysia's providing medical and humanitarian assistance in crisis and noncrisis situations (Bernama, 2007). Burger King are starting a RM1 voucher event from 19th December 2011 to 8th January 2012. (everydayonsale.com, 2011)

Prints ads have already started running in four major newspaper dailies such as the Star,Kosmo, Harian Metro and the Sun and will last for 2 weeks. In addition, in-store executions such as buntings and banners are now on display with leaflets created for both indoor and outdoor distribution. Online banners go live on sports portal Stadium Astro as well as on murai.com.my at the beginning of next week and are scheduled to run for a total of four weeks. Trelo Communications is the advertising agency (Deborah Joy, 2010) In the past, the demand was for low-priced fast foods. Over time, the demand has changed. Consumer are now looking for quality and are ready to pay extra for it.

cost leadership requires a firm to develop vigorously optimally efficient scale of operation and to control tightly the firms cost in all activities.

Burger Kings Have It Your Way strategy is among the top things that differentiates it from its competitors. Burger King boasts its veggie burger, said to be one of its kind in the fast food industry.

Market development: Market development strategy involves developing new markets by duplicating the business operation, with minor adaptive changes. The firm can undertake a market expansion strategy. In market expansion, the same expertise and technology and sometimes even the same plant and operations facility can be used. There is therefore potential synergy and resulting reductions in investments and operating costs. Diversification. There is no doubt that among its competitors, Burger King offers the most diverse and perhaps the most innovative products. Burger King must continue to invest and remain committed to research and development in order to come up with more diverse and innovative products. serves a lot of burgers that is typically not available in other fast foodrestaurant. Some of the examples are, BK Mushroom Swiss which serves beef patty and topped withmushroom sauted sauce, Grilled Chicken burger which is prepared by grilling the chicken patty andothers.

Second mover: Burger King is planning to launch a menu makeover that bears a striking resemblance to its golden-arched rival. (the Malaysian insider). FACEBOOK: Fan growth speed digital/interactive media such as web sites, online campaign and banner advertisement. 114 by day 807 by week 5389 by month Almost 70,000 fans

Organizational structure
Fast-food businesses like Burger King, Pizza Hut and McDonalds use a predominantly centralised structure to ensure that control is maintained over their many thousands of outlets. A key question is whether authority should rest with senior management at the centre of a business (centralised). most large businesses necessarily involve a degree of decentralisation when it starts to operate from several locations or it adds new business units and markets. (tutor2u) Since 2001, implemented a sweeping new corporate structure which eradicates division barriers and coalesces the company's most senior leaders into a tight, single management team. (QSR Magazine, 2001) As the franchisor for the brand, Burger King Holdings has several obligations and responsibilities; the company designs and deploys corporate training systems while overseeing brand standards such as building design and appearance.[33][49][50] The company also develops new products and deploys them after presenting them to its franchises for approval per a 2010 agreement between itself and the franchise ownership groups.[46] Burger King has limited approval over franchise operations such as minimum hours of operation and promotional pricing.[51][52] Additionally Burger King designates approved vendors and distributors while ensuring safety standards at the productions facilities of its vendors. (Wikipedia)

Difficulties in the market

According to Burger King, there will not be a price war as consumers are favoring quality over price. Price is affected by the marketing decision and marketing mix strategy of Burger King. Burger King intends to differentiate its products from the products of its competitors. Therefore, it invests on developing its products and ensuring its quality. Burger King relies on the changes in consumer preference. Burger King wants to attract customers who value quality more than price. Political factors include laws, agencies and groups that influence and limit organisationsand individuals in a given society. The dimensions being evaluated include thegovernment attitude to foreign markets, the stability and financial policies of a country andgovernment

bureaucracy.Political and legal forces are highly important as they cover many aspects of companypolicy. Government policy affects industry as a whole through regulatory bodies such asthe Department of the Environment and the Department of Trade and Industry. Thesebodies develop policies on the trading, restrictions and standards within their particular field. The policies created can affect businesses in various ways; in how their products areproduced, promoted and sold The government encourages foreign investment, but maintains approval rights for individual investments, often opting to restrict foreign equity or encouraging the transfer of technology from foreign firms Moreover, Malaysia government is introducing various measures to support its people to maintain healthy lifestyles. For example, the Malaysia Health Ministry had banned the fast food operators from sponsoring television shows for children.(Ling et al., 2011)

Competitor analysis
McDonalds: We in Malaysia got our first taste of McDonald's when McDonald's Malaysia opened its first restaurant at Jalan Bukit Bintang, Kuala Lumpur on 29 April 1982. To date, McDonald's Malaysia has more than 200 restaurants located nationwide and is currently expanding at about 20-25 restaurants annually. KFC: Especially for Malaysians (55% market share) We are an establishment that is run by Malaysians and managed by Malaysians; we took it upon ourselves to create a selection of food that would make Malaysia proud on the international scene. Kentucky Nuggets, for example, was conceived in Malaysia and then found its way to KFC worldwide. Today, Kentucky Nuggets is one of KFC's successes. "Meals on Wheels" was also developed in Malaysia. It was created for the purpose of bringing great tasting chicken to places where a KFC Restaurant might not be available. So, any offices or companies can hold functions at any place and anytime! All our achievements add to our Malaysian identity. But it has only been possible because you invited us to share your lives. The first KFC restaurant was opened in 1973 on Jalan Tunku Abdul Rahman. Today there are more than 500 KFC Restaurants nationwide and still counting. Nandos: South African Nando's specialises in flame-grilled Peri-Peri chicken. The chicken is served in quarters, halves, wholes, and butterfly breasts (UK and Ireland only). Nando's also serves burgers, pitas, salads, wings and wraps.has been established since 1998 and currently[when?], there are 38 restaurants in Malaysia.

Carl Jr.: Founded by industry pioneer, Carl N Karcher, Carl's Jr. restaurants have been a U.S. favourite for more than 65 years. With more than 1200 restaurants globally, Carl's Jr. has gradually been known as the place to go for juicy, premium quality charbroiled burgers. And now, we are making our mark in Malaysia. We are located at the following locations: Midvalley - Lot T-023 - 3rd floor, next to GSC cinema Sunway Pyramid - Lot LL2.121 - LG 2, Marrakesh One Utama - Lot G 210C - Old Wing Pavilion - 1.29.03, Level 1 - next to food republic The Mines Shopping Fair - Lot L3-19A - Level 3 with drive thru Wendys: old fashioned 6,500 Wendys restaurants currently in operation in the U.S. and 27 countries and territories worldwide. Wendys in Malaysia is operated by the Berjaya Group subsidiary, Wen Berjaya Sdn Bhd. The first local Wendys restaurant was officially opened on 5 April 2008 at Sunway Pyramid, Selangor. An additional 7 outlets were subsequently opened at IOI Mall Puchong, Jaya One, Jalan Sultan Ismail, Mont Kiara, Giant Kota Damansara, Aeon AU2 and Berjaya Times Square.

Future plans
"The Burger King brand enjoys strong consumer acceptance throughout Asia Pacific and the world, and we look forward to its resurgence in Malaysia. CIMB Group and CIMB Private Equity are strong and experienced organizations, and we believe they are well-suited to successfully grow the brand in Malaysia," said Peter Tan, president of Burger King Asia Pacific. (CIMB Press Release, 2007) Cosmo Restaurants Sdn Bhd, which holds the franchise for Burger King restaurants in the country, plans to open 50 more outlets in the next five years. (The Star, 2008) The investment shall be utilised to finance capital expenditure and working capital to aggressively grow the existing BK business from its current base of 24 outlets nationwide will further strengthen our presence in the Malaysian market and make available the iconic flamegrilled Whopper to more Malaysian consumers. To date, Ekuinas has undertaken investments in high potential Malaysian companies involved in the business of fast moving consumer goods, oil and gas, logistics, education and retail. (Ekuinas Press Release, 2011)

Conclusion and suggestion for a better future for company

In December 1997, BURGER KING returns to Malaysia with a different management group that operates under a new franchisee i.e. Cosmo Restaurants Sdn. Bhd. The first restaurant was located at Overhead Bridge Sg. Buloh. It was officiated by our former Prime Minister i.e. Y.A.B Tun Dr. Mahathir Mohamad.To date there are 20 restaurants in Malaysia, look out for more outlets in the near future..

There are currently, 3 franchise holders in Malaysia. The largest operating restaurant is manage by Cosmo Restaurants Sdn. Bhd. While outlets located in KLIA are under the management of Dewina Hosts Sdn. Bhd, outlets in Sabah are operated by another franchisee, Living Bread Sdn. Bhd.

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