Burger King Company Report and Summary

This report is about the Burger king, a leading chain of fast food industry. This report is about its all strategies which they have used to carry out their business in Middle East. Burger king is considered as one of the major fast food chain in the world. Among its top competitors are McDonald¿½s and Wendy¿½s. Burger king as a multinational company expanding its business in the Middle East. The main aim of this report is to analyse its current strategies in the Middle East.

Introduction

The Burger King and the Olayan group had joined hands together to open a new fast food industry in the Saudi Arabia and the Arab Middle East since early 1990¿½s.

The olayan financing company owns and operates the following establishments:-

? HANA international Co Ltd. (HANA), the master franchisee of the Burger king in the gulf countries such as Egypt, Syria, Lebanon, Yemen and Jordan and also operates the Burger king Middle East service for the restaurants of Arab countries.

? Olayan Food Service Company (OFS), the Burger king franchisee for Saudi Arabia.

? First Food Service Company (FFS), the Burger King Franchisee for United Arab Emirates.

Olayan opened its first restaurant in Riyadh in 1992. By the end of 2003, they opened more than 120 restaurants in Kuwait, Lebanon, Bahrain, Jordan, Saudi Arabia, Qatar and UAE. They have made a commitment to Middle Eastern consumers to provide superior quality products, choice, value for money, service and convenience.

PESTEL Analysis

Political factors

In the middle east of the world, all muslim countries exist. So, burger king has special issues in the these countries regarding food etc. As burger king is very popular in these countries, but they have to pay corporation tax as a foreign corporation. Besides this, government has made a qouta of country natinals as employees in the burger king. According to government policy, they have to provide 100% halal meat and fresh supplies of vegetarian foods. So burger king is considering all these major issues and performing well.

Economical Factors

As slowdown hits all the world and inflation rate is high in all over world, burger king is trying to control its prices and focusing on packaging meals. Burger king has good oppurtunities to get good profits in middle east as fast food service is getting popular among these countries. For example, dubai is a hub is business and most of the people are busy and that is why they look for fast food services or we can say quick service restaurants.

Social Factors

Burger king is basically targetting at children and business class people. In U.A.E, they have opened all of their restaurants in the malls and near to business centres. For kids , they have specially made kids zones. Now they have introduced Back-to ¿½School promotional plan in order to attract more children an also they are giving some toys along with certain meals.

Burger king is also considering healthy food for people.

Another thing, they are also considering muslim festivals and opening their restaurants according to their timings. They also use halal meat and do not use any pork meat and fat as muslim people do not eat pork.

Technological Factors

As technological changes are increasing, burger king is also following new technologies. Retail tills and micros are used for billing. They have introduced their internet site www.burgerking-me.com/uae which can be operated in engleish as well as arabi or other languages of middle east. Through this site, people can review the menu and packages etc. Home delivery services are also provided in these countries.

Environmental Factors

Burger king has special waste management programmes for these countries as these countries emphasize on cleaning. Instead of that they have their own recycling methods.

Legal Factors

As muslim country follow sheria laws, so they did not enforce any taxes on the properties. Healthy food is a main legal issue here. 100% Halal meat is essentially considered in the food

ANNS OFF GROWTH MATRIX ON BURGER KING

Quadrant:-1) Market Penetration:-

Existing Product in the Existing Market

? Burger King is second after McDonald¿½s in competition. Burger King has 50 years experience in this field. Burger King needs to attract existing customers because it is very cheaper than attracting new ones.

? Burger King needs to promote their burgers by using advertisement in rural area. Because in Middle East people¿½s are not very conscious about eating habits of European Countries.

? Burger King must use more intensive distribution most areas like:- Egypt, Oman etc. To promote their burgers and prices should be low.

? Because of using large scale advertisement Burger King also attract non-users to eat burgers.

? Give free home delivery to their customers. Because of this sale should be increased.

Quadrant:-2) Product Development:-

New Products in the Existing Markets

? Burger King needs to utilize of excess production capacity to give new style burgers.

? Burger King wants to launch new burgers like:- Chicken- grilled burgers, Flame-grilled burgers in Middle East because in this society people eat that kinds of products.

? Menu should be changed to launch Kebab burgers, Sheep burgers and variety of Halal burgers.

? Burger King protect overall market share by giving variety of burgers to their consumers.

Quadrant:-3) Market Development:-

Existing Products in the New Markets

? Burger King launches one or two restaurants in every month in different locations to expand business.

? Burger King¿½s main matto is ¿½HAVE IT YOUR WAY¿½. Burger King launches in Dubai Mall which is largest shopping mall in the world. Like this new restaurants should be opened in different shopping malls customers will be purchased burgers during their shopping hours.

? In United Arab Emirates, Dubai, Egypt etc. Burger King should be opened in Airports. Travellers will be buy burgers.

Quadrant:-4) Diversification:-

New Products in the New Markets

? People are now more health conscious so give higher quality burgers to their customers. So give innovative products and spend more on Research and Development.

? Launched light meals, Whopper products served in oat meal bun to health conscious customers.

? Fresh and full selection of delicious salads like:- Garden salad, Grilled chicken salad with variety of dressings.

? Also launched variety of seafood like:- Shrimp Sandwich Value meal, big fish value meal etc. For their Islamic Customers in Capitals of each country of Middle East.

SWOT Analysis

Strengths

? Wide selection of products

? Fast and efficient service as they have order giving and order picking stations separately

? Innovative products like whopper a charbroiled burger, set items from breakfast menu as well.

Weaknesses

? Weak marketing campaigns

? Inconsistency in quality food standards and poor maintenance of some burger king stores.

Opportunities

Expansion in other countries or opening new restaurants in the same countries is the best opportunity for the burger king. The opportunity to expand is very promising and company is also getting benefits from expansion (Burger King annual report-2007).

Threats

? Intense competition in sense of pricing, product innovation and growth strategies

? Consumer health expectations as burger king¿½s food are not considered as healthy or diet food.

Recommendations

In order to expand more customers and to expand the business of the burger king, the company should explore further new markets in the Middle East. By exploring new markets, burger king will be able to compete with McDonald¿½s and Wendy¿½s. The company also needs to invest in research and development. One major source of differentiation is the company¿½s innovative products. In order to remain competitive and to attract new customers, burger king must focus on developing new products.

Critical Success Factors

One critical success factor for burger king is its ability to remain competitive and company should use all its resources to compete and should be able to gain competitive advantage. Differentiation is the main strategy in the restaurant industry as products and services can be copied easily.

Another factor is to expand it branches in other countries. The advertising and marketing programmes should be launched in order to attract new customers.

Conclusion

Burger king operates in a highly competitive environment in the Middle East. The number of competitors to burger king is very high and there are other factors that affect the business. While its competitors are employing almost the same strategies that burger king is employing, it is important to build a point of difference that will set burger king apart from them. Burger king is known for its innovative and quality products, high standard service and operational excellence. In order to remain competitive, burger king must differentiate itself from its competitors. This can be done through differentiation of products. It must also explore new markets and take advantage of new opportunities. Burger king must maintain its global perspective and continue with its market expansion strategies. The changing consumer preferences and demands to be satisfied. In order to do that, burger king must develop a diverse product line.

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