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Between financial year 2009 and 2010, the company experienced net negative growth in its total revenues due to the negative 4 percent dip from it’s US and Canadian businesses. The EMEA region and Latin America had 8 and 10 percent positive revenue growth within the period (Burger King Holdings 2010). Not surprisingly, within this period it is the same EMEA and Latin America regions that had 44 new restaurants opened in contrast to 24 restaurants being shut in the US and Canada region. To mitigate this trend the corporation continued to invest in a U.S. and Canada re-imaging program, deployment of new restaurant equipment and developed innovative products. The company’s worldwide sales growth has been on a general downward slope from the third quarter of 2008 and moved into negative territory from the second quarter of 2009 to date (Burger King Holdings 2010). We shall use the rest of the paper in seeking to explain why Burger King has been experiencing a decline in revenue especially in the US.
The PEST (Political, Economic, Social and Technological) factors have long being used to explain the macro environment of a business which has to be factored in the development of any corporate strategy. The political front has been favourable for the fast food industry in the US with no major legislations or regulations that would hinder growth of the industry taking place. We therefore rule this out of Burger King’s problems. In contrast, the economic environment has never been worse for major US corporations like Burger King. Costs are going up at the producer level but companies are unable to match this up with corresponding increase in prices because of the current high inflation and high unemployment i.e. economic recession. Burger King’s applied two strategies here. First it reduced its offering on its $1 menu by removing a slice of cheese and then raised the price of its double cheeseburger from
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No doubt that higher employee turnover rate is also costly for the firm. At Burger King the Management is trying to maintain the staff turnover rate while allowing new talent to come in the company (Can Employee Turnover Really Be Too Low? 2005). All organizations have people, that is, they have human resources.
The vivid kinds of business promotional activities undertaken by an organisation in order to endorse their products or services may be through advertisements, public relation, personal selling, websites, brochures, press publicity among others. These tools prove to be of immense eminence at the time of positioning a new product in the market segment.
The company differentiates its hamburger offering by cooking frame broiled meat (Broyle, 2007). The Whopper sandwich is the company’s signature product. 2. The value chain of Burger King was configured taking into consideration the location of its corporate headquarters.
Burger King is the world’s biggest and leading fast-food restaurant chain. 2011 research shows that Burger King operates restaurants in 12,300 places serving over 11 million customers daily in 76 countries and regions worldwide. The best thing about Burger King’s is there unique flame-broiled burgers.
Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization (Drucker, Peter, 1954)1.
In 1955, Insta Burger King faced many financial difficulties because of that David Edgerton and James McLamore purchased that company and changed its name it as Burger King. In between half century, the company owners have changed at four times and did
Customer and Employee interaction during the service order can be of one among three kinds [UYS12]:
In first kind of simple and to the point interaction, the employer is concerned about “What the customer need?” And then client replied for the
On the basis of burger quality it has been established that Burger King is superior to McDonalds. This is because the burgers offered at Burger King are quite juicy and they are flame boiled. On the contrary,
In this advancing world today, companies in competing industries have to be on their toes in order to keep up with the completion. With new technologies and modes of communication coming up more every other day, they have to embrace them and make use of them in order to achieve maximum advantages over their colleagues.
ces and client base, the firm has the ability to expand its service provision and accommodate the new ventures and new opportunity offered by the BCAD. In an attempt to provide quality service the firm is able to meet the markets demand within the shortest time possible. The
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