Swot of Burger King

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 including the latest restaurant opening in Taman Tasek, Jalan Tun Abdul Razak, Johor Bahru on December 20, 2007. Look out for more outlets in the near future. There are currently, 3 franchise holders in Malaysia. The largest operating restaurant is managed 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. The first interior concept was the 1960s with featured artists such as Marilyn Monroe, Elvis Presley, James Dean and vintage cars photos. The current concept in BURGER KING caters for today’s customer requirement for the trendy, modern yet tranquil. BURGER KING caters to customers who love great tasting burgers, their way. VISION We proudly serve the best burgers in the business, plus a variety of real, authentic foods all freshly prepared just the way you want it.

VALUES Fairness, diversity, respect, caring, clears accountabilities, teamwork, high standards, commitment to excellence, celebrating our successes. MISSION We will prepare and sell quick service food to fulfill our guest needs more accurately, quickly, courteously and in a cleaner environment than our competitors. We will conduct our entire business affair ethically, and with the best employees in the mid south. We will continue to grow profitability and responsibly and provide career advancement opportunities for every willing member of our organizations. OBJECTIVE 1.

We provide detailed nutrition information to our guests so they can make informed choices. 2. Our HAVE IT YOUR WAY® brand promise lets our consumers customize their menu choices to meet their individual diets and lifestyles. 3. Nutrition, quality, value and taste are all important attributes that can help our guests and their children make choices that promote healthy living. Our product innovation teams are constantly working with our trained chefs and nutritionist to develop new menu options that provide a choice of great tasting food while meeting our guests’ nutritional needs.

BURGER KING OUTLET’S IN MALAYSIA * BK Skudai  (Johor) * BK Jalan Tar (Johor) * BK Mahkota Parade (Malacca) * BK  Genting (Pahang) * BK Avenue K * BK SS15 * BK USJ Taipan * BK One Utama 1 * BK One Utama 2 * BK Mid Valley * BK Kelana Jaya * BK Masjid Jamek * BK Karak * BK Bukit Antarabangsa * BK Sungai Buloh * BK KLCC * BK Mutiara Damansara * BK Wangsa Maju * BK Shah Alam * BK Alamanda External environment of Burger King Figure 1: The basic external environment that will influence the marketing of and organization. For Burger King, the external environment factors could be:

A. Customer * Speed of delivering normal orders * Willingness to meet extraordinary needs * Merchandise delivered in good condition * Readiness to take back detective goods and resupply new goods quickly * Availability of installation and repair services and parts B. New Entrances * Wendy’s * Subway * 200 dollar burger C. Suppliers * Food – Tyson food (chicken, beef) Heinz food (potato products) Ken’s food (salad dressing) Edwards Baking food (dessert) Cadbury (dessert) Pillsbury food (breakfast products) * Beverage – Dean foods Coca cola Company Pepsi D.

Substitutes * Substitutes is another firm that offer the same service or function but through a different method. * For the Burger king the threat is came from: * Kenney Rogers Roasters * Burger stall * Pizza Hut E. Rival Firm * The strongest competitor * The Burger King rival firm is: * MacDonald * KFC * Sugar Bun * Mary Brown Strategies (Internal Environment) 1. Growth and Diversification Strategy. * As company growth, Burger King Human Resources planning to expand their business, improve their food product, quality of the service and develop new skills. For expand their business the organization planning to open new outlet in many pleases or other places, other country, cross over the country. The organization wants to be the best, the largest international fast food organization around the world. * To increase the productivity, the organization will recruit new employee. Not only recruit, the organization will trend them to make sure the new employee can perform the job and task well. Improve the employee knowledge and skills and motivate the employees. 2. Differentiation Strategy: Compete on value Added Burger King tries to create something new, unique and different from the other in their menus. * Burger king provide different kind of Burger then their competitor, with unique and special recipes. It also provides the big size burger, bigger than other fast-food organization. * Burger King also trained their employee well so the employees’ expert in all job and task. Future more the employees will not board with their task. When their expert and interested in their job, there are motivated then it will increase or improve the organization productivities and services. 3. Functional Strategy: Internal Alignment

To fulfill all the strategy in above, human resources will train the entire employee. Each employee will be trained with 35 types of skill that covers all type of task and jobs in single restaurant. The result is an employee are skillful and be trained to perform all type of job. This will help to improve the organization productivity, performance and the service. The three Cs 1. Culture * Close relationship among employee * In Burger King Organization the relationship between the employees with another employer are close. The purpose is to improve team work and cooperation among employees. . Competencies: people as a strategic resource * Burger King Organization can achieve a sustained competitive advantages through people because their employee have this criteria: * The resources must be valuable * Burger King Employee find a way to provide unique burger to their customer. For example the Original WHOPPER® Sandwich * The resources must be rare * Burger King Employee knowledge, skills and attitude are not equally available to competitors. For example the knowledge and skills to make the Original WHOPPER® Sandwich * The resources must be difficult to imitate The advantage and the knowledge and skill to provide unique burgers to customer are cannot be copied by other competitor. 3. Composition: The human capital architecture * Type of employees Burger King organization have: * Core Knowledge worker *

Burger King have specific skill employee that directly linked to the company strategy. For example is the chef, the kitchen crew. * Traditional job-based worker * Burger King have employee with the quiet valuable skill but not particular unique to the organization. For example the casher. Implementation of the strategies Taking Action: Reconciling (Supply and Demand) Through Human Resources planning, organizations strive for a proper balance between demand consideration and supply consideration. * Demand consideration is based on the forecasted trends in business activity. * Supply consideration involves determining when and how candidate with required qualification can be found to fulfill vacancy. * For Burger King Organization, basically the labor demand is stable or balance. * Burger King doesn’t need to make a new recruitment in big scale. They got enough employees to perform the jobs and task in order to achieve the organization goals. But some time the organization will hire part time worker during holiday or festival because there will be more customer will came to the restaurant during that time. SWOT Analysis for Burger King Strengths 1. Strong financial performance * Burger king have strong sales from past few years since they start the business. They start from local business (1954) until international business with high sales. * For example, the sales for the year 2007, a staggering $13. 232 billion system wide. * They have strength to raise the good reputation over the world through the stable and strong financial.. . Product differentiation * They produces different burger with McDonald such as Bigger burgers, flame broiled, curios sandwich, etc * It provides different types of burger in terms of flavor, size, creative name, etc. * They also have the chain offers a variety of burgers, chicken sandwiches, salads, and breakfast items. 3. Growing consumer appeal/ Sensitivity towards the environment * They also sensitive with the environment and scope among young and teenager group. They focus on young man market and children market which like to try the new thing.

BK gives the burger king’s crown for those customer who buy king burger. This offer may attract those children to convince their parents to come to BK. This offer is types of their strategy. 4. Proud and active member of the community * They are committed to diversity and inclusion, food safety and animal welfare and a spectrum of civic and charitable initiatives. They sometime may do some charity program, or welfare in community. It shown that all the member and employees re work together to increase the reputation of their company (burger king). 5. Strong brand equity * They have longevity and strong brand awareness.

To further boost the brand, the franchisor is remodeling units, adding a hipper, more upscale look, and is beefing up its roster of both premium and value menu items. 6. Second largest fast food hamburger restaurant (FFHR) in the world * BKC was recently recognized by Inter brand on its top 100 “Best Global Brands” list and Ad Week has named it one of the top three industry-changing advertisers within the last three decades. * Burger King Holdings operates the world’s second biggest hamburger chain (behind McDonald’s). In addition to its popular Whopper sandwich. Recommendation: 1.

Since burger king sensitive with the environment especially young people, they should provide the healthy way of eat for society. For example, do not use the polystyrene which can’t recycle and not good for health. 2. Since they have strong financial, I suggest that they can do more promotion or offer like McDonald. McDonald have a good strategy to increase their customer, they provide 12pm-3pm promotion, and even 6pm-9pm promotion when Hari Raya Puasa. Burger king lack of this kind of promotion in Malaysia, so that quite lots of customers will blame that there is too expensive and rather go to McDonald (In Shah Alam). . Create a Burger king Mascot The mascot can help in the marketing activity. By creating a unique mascot, the customer tend to remember the Burger king food when they look at the mascot. It also make people easy to recognize the brand of the burger king restaurant or the burger king restaurant when they see the mascot standing next to the burger king restaurant entrance door. Weaknesses 1. Lack in marketing strategy * In 2009, Burger King was launched a campaign through Facebook called the Whopper Sacrifice campaign. The campaign is about Burger king was offering Facebook users free hamburgers if they deleted 10 online friends. * A week after the Whopper Sacrifice application made waves for its creative and aggressive use of Facebook friend removals as a way to spread the application, Facebook has forced it to disable the application’s functionality, according to the developer. This is because the Facebook team felt the application went against what they stand for which is connecting people. * Facebook suggested changes to the application, such as not alerting people that they’d been sacrificed.

They wanted that part disabled. * But, Burger King decides to kill the campaign rather than make Facebook’s requested changes bcause the campaign was make some party dissatisfied. 2. Have a lot of legal issues * Since 1954, Burger King has been involved in several legal disputes and cases, as both plaintiff and defendant. * The issues are controversies with groups such as People for the Ethical Treatment of Animals (PETA) over the welfare of animals, governmental and social agencies over health issues and compliance with nutritional labeling laws, and unions and trade groups over labor relations laws. These situations have touched on legal and moral concepts such as animal rights, corporate responsibility, ethics, and social justice. * While the majority of the disputes did not result in lawsuits, in many of the cases the situations raised legal questions, dealt with legal compliance, or resulted in legal remedies such as changes in contractual procedure or binding agreements between parties. * The resolutions to these legal matters have often altered the way the company interacts and negotiates contracts with its suppliers and franchisees or how it does business with the public. There is also have a problem about a trademark dispute involving the owners of the identically named Burger King in Mattoon, Illinois led to a federal lawsuit, the case’s outcome helped define the scope of the Lanham act and trademark law in the United States. * Have a lots of controversies and disputes is not good for the company. There might cause the company go down and this will create bad image of the company. If the image of organization was ruin by these issues, they will lose their customer. 3. Problem with advertising Burger King has failed to establish a solid image that would differentiate it from its competitors.

* Burger King was trying to keep sales growing so they had to keep changing their advertising but it’s only make consumers confused as to what advantages Burger King offered. * Burger King was wanted to target teens with the MTV approach but also failed. This is because people found it loud and annoying. * Burger King also tried a sit in type of restaurant, which also failed because people want a fast food low price meal not a high priced, sit down meal. Burger King’s past advertising and corporate strategy failed because Burger King did the two biggest mistakes they could have done. First they didn’t listen to the customer and second they didn’t advertise their main product to maintain the target market. 4. Unhealthy menu Burger king is a popular fast food outlet almost everywhere in the world. Many people would not see actually, these fast food are not so healthy because if the calories and certain reason. Recommendation: 1. Create a good advertising * Do a big promotion whether in live or unlived to promote the menu using newspaper, internet, broacher, banner, magazine and so on. It’s good to have creative and unique advertising strategies to attract more customers in the market; Burger King should create a good image to have successful advertising. If they want to attract Facebook users, they should do campaign which add 10 online friends in order to get free hamburger rather than delete 10 online friends.

2. Create effective marketing * It can attract the customer come to the burger king restaurant or attract the other restaurant customer to the burger king restaurant. * Burger king should always listen and understand the perception of outside (customer) about their product (the price, the flavor of the burger). . Keep the product (food) at the low price * The burger king organization need to make sure the price for the food is not to expensive so the teenager like to eat fast food nowadays. If the price of the food is high, the teenagers are not affordable to buy the burger king foods. 4. Provide nutrition meal * Add more nutrition in the food so there no people going to say the burger king food is not a healthy food. Burger king can use more vege in the meal, serve more vegetarian dessert, use less fried food more grill, and introduce their own non carbonated drinks to their customer. Opportunities . Acceptance of the fast food in the Malaysia * Malaysian people don’t have problem to switch the need for food from traditional food to fast food. 2. Teenager like to eat fast food * It is a trend now a day where teenagers like to eat fast food rather than eat a traditional cook food. 3. Changing in life style * Everybody is in rush hour now a day, they rushing for the time, have limited hour to cook a meal for themselves and don’t have enough time to wait a food been cook by a chef at the restaurant, so they turn to fast food where the food is serve quickly. 4. Stabile economic condition When economic condition is good condition, it allows the burger king to improve the business by open new restaurant, create new product, create a marketing action or buy more raw material. * When economic condition is good condition, customer financial condition also good and that allow them to spend more money to buy the burger king product 5. Well known fast food restaurant * Everybody know what is burger king, what the burger king service, the food and the qualities. So the customer will not hesitate to buy the burger king product. * The customer trust the burger king brand and product. 6.

Don’t have many competitor in producing the breakfast food * This is because only few restaurants open early in the morning to serve the costumer and provide the breakfast. In that case, the competition to win the customer is low in the morning. 7. Been choose one of the place where people can have their meal * Since burger king provide the fast breakfast food, the fast food for lunch and dinner so it’s a suitable place where the people can get food every time they go to burger king restaurant. Recommendation: 1. Create good services * Make a delivery service to customer or drive through Do an order using internet or telephone for customer. 2. Create a good relationship with supplier * So the burger king restaurant don’t have a problem getting the raw material and the burger king organization can negotiate the price of the raw material with the supplier. 3. Free gift * BK can provides the free gift toy in the Burger king Kid’s meal – this will attract the kid’s to bring their parents to having their meal at BK. They also can provide free gift for every purchase at the BK restaurant – this will encourage the customer to having their meal at the BK restaurant.

The free gift plays a role in attracting the customer to come to the restaurant. 4. Add more hot drink in the menu * BK only has hot tea in the drinks menu. BK should add the hot coffee, hot Milo and any kind of hot drink in the drink menu. Future more, the burger king provide the breakfast meal, so they must provide more choose of hot drink in the menu, plus people like to go for hot drink in the morning to fuel up their body for their daily activity. 5. Add kid’s meal menu * BK only provides the cheese burger, chicken burger and beef burger in the kid’s menu.

The Burger king can add more type of burger in kid’s menu so the kids have variety type of the burger they can choose. For example the BK can add the “BK black pepper joiner burger”, the “BK mushroom Swiss joiner burger”, and all type of BK burger but in small size. **** Even they are lack of competitor in some services, they still need keep up a good relationship with customer and supplier to make sure their production cost always in lower condition compare with competitors and make sure the loyalty of customers. Threats 1.

Other fast food restaurant * Burger king restaurant have to compete with the other fast food restaurant to monopoly the market, the costumer and the supplier. * The competitors will be the MacDonald, subway, KFC, Kenny Rogers Roasters, pizza hut, and Wendy’s 2. Increasing raw material cost * Cause a problem in controlling the product food price because when the raw material cost increase, the production cost and the product price (food) also increase. When the price increase the restaurant will lose their customer 3. Increasing the labor cost Increase the cost of production that will affect the price of the product and the organization profit. 4. Halal issue * The burger king restaurant must always make sure the raw material is a halal material became it’s became a problem if the organization loss their halal status where the restaurant will lose their Muslim costumer 5. Government agency who check the cleanliness of the restaurant * Always need to make sure the restaurant is in clean condition before the restaurant listed in unclean and unsafe place restaurant.

To keep the restaurant 24/7 clean, it require some cost and that will increase the organization overhead cost. 6. The birth flu and the cow madness disease * The disease cause the customer afraid to eat the burger king product because the burger king use the cow and chicken as their product raw material * Plus, disease is uncontrollable problem Recommendation: 1. Create new product (food) that don’t use the chicken and cow as the raw material * The burger king still can sell their product or food even thou the birth flu and the cow madness disease is the main problem issue at that time 2.

Create a good cleaning system * Create a working system that every employee is responsible to make sure the restaurant cleans. * Train an employee to keep the restaurant always in clean condition by include the restaurant cleanliness is the mission statement or employee ethic rule. 3. Provide support event service * BK provides extra service to serve the customer who wants to celebrate the birthday party, anniversary party or any kind of party in the BK restaurant. Recommendation for Burger King

In General Analysis of the Burger King Restaurant concept provides readers with data and insight into this leading brand. Burger King continues to do a good job of building it brand with its menu and marketing leadership makes the most of facilities suffering from years of neglect. We like how the brand has been able to create its own unique image with out-of-the-box creativity which may not always help build refined culture but seems to resonate with the populace (when it is appropriately toned down).

In any case, all this would not be possible without a menu which features premium and indulgent food that appeals to “real” QSR eaters. If BK’s marketing comes-up short, it is in regards to this brand leadership was late to promote value while the economy continued to deteriorate during 2009. We expected BK to make up for this oversight going forward although this may be difficult because of the brands need to simultaneously promote new premium product that the systems new broiler will spit-out next year as part of its barbell menu strategy.

Also we hope that BK could use some of its creativity to innovate around value with new exciting and profitable menu items. All-the-same no suspect that BK could use marketing budget the size of McDonald’s so that it can do it all. In the mean time, we expect BK will continue to work on operations which is badly needed as we believe the chain must now focus on improving ops and facilities to the level of its menu and marketing as brand leadership (stable for the first time in memory) finishes the second phases of its so far impressive turnaround.

Conclusion Burger King (BK) Company is the one company sold a 100% original burger, Quality and quantity they performed is 100% clean and clear and saves for customer. Burger King also provide their customer service like meeting or find dining room and, birthday party or event. Otherwise they also try to improve their service and menu for customer and for to achieve the company goals, mission and vision to be the best. Burger King also tried to find he new menu especially for foods and beverage, because they won’t their customer feel bored when eat and use Burger King service, this company also care about their quantity and quality of food that their performed especially for customer healthy. In addition, Burger King tried to find out the new opportunities to ensure that, they can compete with others new brand (new entrance) in future with their own recipe and quality and quantity of foods , like try to add more new menu and try to make a variety of foods in soon.

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