1. Which fast food chain do you like most?

McDonalds
Burger King
2. Why do you like them more?

Services
Food
Convenience
Speed you get your food
Price
Other?
3. What do you dislike about the fast food restaurant that you didn't choose for the first question?
4. Which restaurant do you go to more often

McDonald's
Burger King
5. Who has better french fries

Mcdonalds
Burger King
6. Who has better burgers

Mcdonalds
Burger king
7. If you couldn't go to McDonald's or Burger king which other fast food restaurants would you go to?
8. gender ?MaleFemale

history
The McDonald family moved from Manchester, New Hampshire to Hollywood, California in the late
1930s, where brothers Richard and Maurice McDonald ("Dick" and "Mac") began working as set
movers and handymen at Motion-Picture studios.[1] In 1937, their father Patrick McDonald opened
"The Airdrome", a food stand, on Huntington Drive (Route 66) near the Monrovia Airport in the Los
Angeles County city of Monrovia, California[2] with hot dogs being one of the first items sold.
Hamburgers were later added to the menu at a cost of ten cents with all-you-can-drink orange juice
at five cents. In 1940, Maurice and Richard moved the entire building 40 miles (64 km) east, to West
14th and 1398 North E Streets in San Bernardino, California. The restaurant was renamed
"McDonald's Bar-B-Que" and had 25 menu items, mostly barbecue.
In October 1948, after the McDonald brothers realized that most of their profits came from selling
hamburgers, they closed down their successful carhop drive-in to establish a streamlined system
with a simple menu which consisted of only hamburgers, cheeseburgers, potato chips, coffee, soft
 drinks, and apple pie.[3] After the first year, potato chips and pie were swapped out for french fries
and milkshakes. The carhops were eliminated, making the new restaurant a self-service operation.
Richard and Maurice took great care in setting up their kitchen like an assembly line to ensure
maximum efficiency. The restaurant's name was changed again, this time to simply "McDonald's,"
and reopened on December 12, 1948.
e predecessor to what is now the international fast food restaurant chain Burger King was founded in
1953 in Jacksonville, Florida, as Insta-Burger King. Inspired by the McDonald brothers' original store
location in San Bernardino, California, the founders and owners, Keith J. Kramer and his wife's uncle
Matthew Burns, began searching for a concept. After purchasing the rights to two pieces of
equipment called "Insta" machines, the two opened their first stores around a cooking device known
as the Insta-Broiler. The Insta-Broiler oven proved so successful at cooking burgers, they required
all of their franchises to carry the device. After the original company began to falter in 1959, it was
purchased by its Miami, Florida, franchisees James McLamore and David R. Edgerton. The two
initiated a corporate restructuring of the chain; the first step being to rename the company Burger
King. The duo ran the company as an independent entity for eight years, eventually expanding to
over 250 locations in the United States, when they sold it to the Pillsbury Company in 1967.
Pillsbury's management made several attempts at reorganization or restructuring of the restaurant
chain in the late 1970s and early 1980s. The most prominent change came in 1978 when Burger
King hired McDonald's executive Donald N. Smith to help revamp the company. In a plan called
Operation Phoenix, Smith initiated a restructuring of corporate business practices at all levels of the
company. Changes to the company included updated franchise agreements, a broadening of the
menu, and new store designs to standardize the look and feel of the company. While these efforts
were initially effective, many of them were eventually discarded, resulting in Burger King falling into a
fiscal slump that damaged the financial performance of both Burger King and its parent. Poor
operating performance and ineffectual leadership continued to bog the company down for many
years, even after it was acquired in 1989 by the British entertainment conglomerate Grand
Metropolitan and its successor Diageo. Eventually, the institutional neglect of the brand by Diageo
damaged the company to the point where major franchises were driven out of business and its total
value was significantly decreased. Diageo eventually decided to divest itself of the loss-making chain
and put the company up for sale in 2000.

Products

When the predecessor of Burger King first opened in Jacksonville in 1953, its menu consisted
predominantly of basic hamburgers, French fries, soft drinks, milkshakes, and desserts. After being
acquired by its Miami, Florida, franchisees and renamed to its current moniker in 1954, BK began
expanding the breadth of its menu by adding the Whopper sandwich in 1957. This quarter-pound (4
oz (110 g)) hamburger was created by Burger King's new owners James McLamore and David
Edgerton as a way to differentiate BK from other burger outlets at the time.[141] Since its inception,
the Whopper has become synonymous with Burger King and has become the focus of much of its
advertising.[142] The company even named its new kiosk-style restaurants Whopper Bars.[143]
The menu component of Donald Smith's Operation Phoenix was initiated in 1978 and led to the
addition of the Burger King Specialty Sandwich line in 1979. The new product line significantly
expanded the breadth of the BK menu with many non-hamburger sandwiches, including new
chicken and fish offerings. The new Specialty Sandwich line was one of the first attempts to target a
specific demographic, in this case, adults 18–34, who would be willing to spend more on a higher
quality product.[9]:119 One of Smith's other significant contributions to the menu was the addition of a
breakfast product line, which until this time was not a market Burger King had entered.[20] Besides
the addition of the Croissan'Wich in 1983, the breakfast menu remained almost identical to the
McDonald's offerings until a menu revamp in 1985.[20] This expansion introduced BK's "Am Express"
product line, which added new products such as French toast sticks and mini-muffins.[144]

Mc donalds

McDonald's predominantly sells hamburgers, various types of chicken, chicken sandwiches, French
fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and
vegetarian items, wraps and other localized fare. On a seasonal basis, McDonald's offers the McRib
sandwich. Some speculate the seasonality of the McRib adds to its appeal.[69]
Products are offered as either "dine-in" (where the customer opts to eat in the restaurant) or "take-
out" (where the customer opts to take the food off the premises). "Dine-in" meals are provided on a
plastic tray with a paper insert on the floor of the tray. "Take-out" meals are usually delivered with the
contents enclosed in a distinctive McDonald's-branded brown paper bag. In both cases, the
individual items are wrapped or boxed as appropriate.
Since Steve Easterbrook became CEO of the company, McDonald's has streamlined the menu
which in the United States contained nearly 200 items. The company has also looked to introduce
healthier options, and removed high-fructose corn syrup from hamburger buns. The company has
also removed artificial preservatives from Chicken McNuggets,[70] replacing chicken skin, safflower
oil and citric acid found in Chicken McNuggets with pea starch, rice starch and powdered lemon
juice.[71]
In September 2018, McDonald's USA announced that they no longer use artificial preservatives,
flavors and colors entirely from seven classic burgers sold in the U.S., including the hamburger,
cheeseburger, double cheeseburger, McDouble, Quarter Pounder with Cheese, double Quarter
Pounder with Cheese and the Big Mac.[72][73] Nevertheless, the pickles will still be made with an
artificial preservative, although customers can choose to opt out of getting pickles with their burgers.
Cost
McDonald's annual/quarterly cost of goods sold history and growth rate from 2006 to 2019. Cost of goods sold
can be defined as the difference between beginning and ending inventories for tangible products resulting in an
expense that reflects production and sales costs.

● McDonald's cost of goods sold for the quarter ending June 30, 2019 was $2.512B, a 3.92% decline
year-over-year.
● McDonald's cost of goods sold for the twelve months ending June 30, 2019 was $9.945B, a 8.24%
decline year-over-year.
● McDonald's annual cost of goods sold for 2018 was $10.239B, a 16.07% decline from 2017.
● McDonald's annual cost of goods sold for 2017 was $12.2B, a 15.38% decline from 2016.
● McDonald's annual cost of goods sold for 2016 was $14.417B, a 7.72% decline from 2015.

Restaurant Brands annual/quarterly revenue history and growth rate from 2013 to 2019. Revenue can be

defined as the amount of money a company receives from its customers in exchange for the sales of goods or

services. Revenue is the top line item on an income statement from which all costs and expenses are subtracted

to arrive at net income.

● Restaurant Brands revenue for the quarter ending June 30, 2019 was $1.400B, a 4.24% increase year-
over-year.
● Restaurant Brands revenue for the twelve months ending June 30, 2019 was $5.426B, a 7.67%
increase year-over-year.
● Restaurant Brands annual revenue for 2018 was $5.357B, a 17.07% increase from 2017.
● Restaurant Brands annual revenue for 2017 was $4.576B, a 10.38% increase from 2016.
● Restaurant Brands annual revenue for 2016 was $4.146B, a 2.31% increase from 2015.

Swot

BUSINESS, MANAGEMENT
 McDonald’s SWOT Analysis &
Recommendations
UPDATED ON

UPDATED ON FEBRUARY 5, 2017 BY ROBERTA GREENSPAN

A McDonald’s in
Helsinki, Finland. McDonald’s SWOT analysis highlights global expansion and
diversification to ensure business growth. (Photo: Public Domain)

McDonald’s maintains its position as the top player in the global fast food restaurant
industry through strategies that address the internal and external factors in this SWOT
analysis. The SWOT analysis framework identifies the most relevant internal and
external business factors that determine the firm’s success. McDonald’s uses a variety
of strategies to deal with these factors. However, the company faces considerable
issues based on emerging conditions in the global market. This SWOT analysis points
out the most pressing concerns that McDonald’s must address to keep its leadership in
the industry.

This SWOT analysis of McDonald’s Corporation shows that the company must address
diversification and process flexibility, as well as business expansion and innovation.

McDonald’s Strengths (Internal Strategic Factors)

McDonald’s strengths make it a leading contender in the fast food restaurant market.
This aspect of the SWOT analysis shows the internal strategic factors that contribute to
organizational viability. McDonald’s main strengths are as follows:

1. Strong brand image

2. Moderate market diversification
3. Standardized processes

McDonald’s has a brand image that makes the business competitively strong. Another
major strength is market diversification based on the firm’s presence in most regions
around the world. This factor reduces market-based risks. In addition, McDonald’s has a
comprehensive system of standardized processes, which is a strength that contributes
to business efficiency and product consistency. This aspect of McDonald’s SWOT
analysis shows that the company has the capability to maintain effective operations.

McDonald’s Weaknesses (Internal Strategic Factors)

McDonald’s weaknesses are linked to the company’s market focus, products and
processes. This aspect of the SWOT analysis indicates the internal strategic factors that
limit firm performance. McDonald’s main weaknesses are as follows:

1. Limited process flexibility

2. Low product diversification
3. Vulnerability to Western market decline
McDonald’s standardization ensures consistency but also reduces the company’s
flexibility in responding to market variations. Low product diversification corresponds to
the firm’s focus on food and beverage products, which is a weakness that makes the
business highly vulnerable to slowdowns in the restaurant industry. In addition, majority
of McDonald’s revenues are from the U.S. and other Western economies. This is a
weakness because it makes the firm easily vulnerable to economic decline in the
Western world. This aspect of McDonald’s SWOT analysis shows that the company
needs to globally expand, improve flexibility, and widen its product mix.

Opportunities for McDonald’s (External Strategic

Factors)
McDonald’s opportunities are linked to its product mix and global growth. This aspect of
the SWOT analysis points to the external strategic factors that support business growth.
McDonald’s main opportunities are as follows:

1. Expansion in developing countries

2. Market development in the Middle East
3. Product diversification

Considering its dependence on Western markets, McDonald’s has the opportunity to

grow and expand in developing countries, such as Asian economies. The company can
also use a market development strategy to establish operations in Middle Eastern
countries that it has not yet entered. In addition, to address market-based risks,
McDonald’s has the opportunity to develop new products or enter new industries. This
aspect of McDonald’s SWOT analysis shows that the business has significant
opportunities for global growth and expansion.

Threats Facing McDonald’s (External Strategic Factors)

The threats to McDonald’s are based on competitive rivalry and sociocultural trends.
This aspect of the SWOT analysis deals with the external strategic factors that limit
business development. The main threats to McDonald’s business are as follows:

1. Aggressive competition
2. Healthy lifestyles trend
3. GMO trend and regulations
The restaurant industry is highly competitive. Aggressive competitors threaten
McDonald’s status as the market leader. Also, the healthy lifestyles trend is a threat
because it discourages consumers from eating at McDonald’s, which is often criticized
for unhealthful products. In addition, GMO regulations are a threat because they have
the potential to limit McDonald’s products. The firm currently does not have a
comprehensive policy on GMO ingredients. This aspect of the SWOT analysis shows
that McDonald’s needs to develop new policies regarding GMO ingredients, as well as
new products to attract health-conscious consumers.

McDonald’s SWOT Analysis – Recommendations

This SWOT analysis shows that McDonald’s can improve its business viability through
continued global expansion, especially in high-growth markets. Also, the company can
reduce risks by developing new products or entering new industries related to the fast
food restaurant industry. These are the most relevant actions McDonald’s can take
based on its SWOT analysis.

BUSINESS, MANAGEMENT

Burger King SWOT Analysis &

Recommendations
UPDATED ON

UPDATED ON FEBRUARY 6, 2017 BY ANDREW THOMPSON

 A Burger King at
College Street, Toronto, Canada. Burger King’s SWOT analysis shows that diversification,
service quality and innovation are the most significant concerns in the business. (Photo:
Public Domain)

Burger King’s ability to keep its position as one of the biggest players in the quick
service/fast food restaurant industry is partly based on the business strategic balance
shown in this SWOT analysis. The SWOT analysis model examines the strengths,
weaknesses, opportunities and threats most significant to the firm. As a food service
business, Burger King must use its strengths to compete against giants like
McDonald’s. In addition, the company must consider the threats and risks linked to the
global fast food restaurant market. It is expectable that Burger King will remain one of
the major players in this market.

This SWOT analysis of Burger King indicates the company’s need for product
diversification, quality enhancement, and product innovation.

Burger King’s Strengths (Internal Strategic Factors)

Burger King’s strengths are based on the company’s business capabilities. This part of
the SWOT analysis determines the internal strategic factors that create business
capacity for continued development. Burger King’s main strengths are as follows:
 1. Strong brand image
2. High market penetration
3. Moderate differentiation of products

Burger King has one of the strongest brands in the industry. This condition makes it
easier for the company to open new restaurants and introduce new products. Higher
market penetration is a strength based on the large number of Burger King restaurants
across the globe. Also, Burger King’s moderate differentiation (e.g., grilled burgers) is a
strength that allows the company to ensure uniqueness of some of its products. In this
part of the SWOT analysis, Burger King’s strengths are mainly based on branding and
market penetration.

Burger King’s Weaknesses (Internal Strategic Factors)

Burger King’s weaknesses are linked to its business model and general strategic
approaches. The internal strategic factors that reduce or limit the firm’s effectiveness
are identified in this part of the SWOT analysis. The following are Burger King’s main
weaknesses:

1. Easily imitable business

2. Limited product mix
3. Low control on franchise model

Even though Burger King has moderate differentiation, one of its weaknesses is that its
business model and products are easily imitated. For example, other firms could offer
similar grilled burgers. Also, Burger King’s limited product mix is a weakness because it
prevents the company from attracting customers looking for more options. In addition,
even though Burger King grew internationally through franchising, the franchising model
is a weakness because it limits corporate control on franchisees’ approaches to
management. In this part of the SWOT analysis, the limited product mix is the weakness
that Burger King can most easily address.

Opportunities for Burger King (External Strategic

Factors)
The opportunities for Burger King present options for business growth and
development. This part of the SWOT analysis shows the external strategic factors that
the firm can use to improve its performance. Burger King’s opportunities are as follows:

1. Diversification/product mix widening

2. Market development
3. Service quality improvement

Burger King has the opportunity to widen its product mix by adding new product lines to
attract more customers. Also, the company could establish new businesses or
subsidiaries as part of market development to gain more revenues while reducing the
effects of market risks. In addition, Burger King has the opportunity to increase service
quality as a way of differentiating its business from competitors like McDonald’s. In this
part of the SWOT analysis, Burger King’s opportunities require new strategies,
especially for diversification and market development.

Threats Facing Burger King (External Strategic Factors)

The threats against Burger King emphasize market conditions. The external strategic
factors that limit or reduce business performance are shown in this part of the SWOT
analysis. The following are the main threats against Burger King:

1. Aggressive competition
2. Imitation
3. Healthy lifestyles trend

Burger King faces the threat of aggressive competition, considering other firms like
McDonald’s and Wendy’s. The company’s business model is also imitable, leading to
the threat of imitation by new entrants. In addition, the healthy lifestyles trend is a threat
because Burger King’s products are criticized as unhealthy. In this part of the SWOT
analysis, Burger King can easily address the threats of aggressive competition and the
healthy lifestyles trend.

Burger King’s SWOT Analysis – Recommendations

Burger King’s current focus is on market penetration, with a considerable degree of
product innovation. However, based on this SWOT analysis, the company needs to
adjust some of its strategies to maintain competitiveness. Burger King can implement
the following recommended strategic adjustments to address some of its most
significant concerns:

1. Diversify/widen product mix to address current product mix limits

2. Increase service quality
3. Improve products to address the healthy lifestyle

SWOT Analysis of McDonalds

Strengths

• McDonalds is a well established and growing business. It has efficiently handled to end up huge
amount of earnings every year therefore it has adequate number of investors. The adequate number
of investors, invest largely and help McDonalds maintain its competitive advantage. McDonalds is a
well and great funded company that has the capability to cost extremely low on its products and end
up a higher benefit. Other companies that are restricted on resources cannot charge low, as they
have to fulfill their costs.

• McDonalds has a reputed name amongst competitors in the food industry because of the quality of
food and service.

• The McDonalds’s logo is one of the most recognized logo in various countries, specially amongst
children.

• McDonalds has kept the quality of its services standardized and the certain quality measures are
followed to keep its food products hygienic and service quality of high standards.

• McDonalds was the one first food outlet that provided its customers with nutritional facts on their
menus

• McDonalds engages in many projects to help people and therefore considered as a socially
responsible firm
• McDonalds along with its focus on continuously improving its food quality, also focuses on training
its employees and improving their skills, by training their staff they better cater to their customers
achieve customer satisfaction.

• McDonalds gives importance to cultural and regional barriers while deciding the food menus.
Therefore, has been successful in most of the countries.

Weakness:

• Selling junk food at low price has pulled McDonalds into negative press over the years.

McDonalds’s advertisements focus mainly on targeting kids. Other target groups are ignored in their
advertisements.

•McDonalds has outlets worldwide and due to the adequate franchising agreements they face quality
issues at times.

• McDonalds has a high initial cost.

• McDonalds’s sales largely depend on people’s disposable income. When the economy fluctuates,
people disposable income and also their spending pattern

Changes, hence McDonalds drop out on revenue.

• McDonalds often gets a lot of complaints because they provide only inorganic and processed food
products.

• McDonalds every year fire many employees from their restaurants and has a high employee
turnover.

• McDonalds spend a lot on training of employees which results in high cost and often reduces the
total profit.

Opportunities

• McDonalds can expand by providing organic food line for the people who are health conscious.

• McDonalds could expand by offering menu which caters to all the individuals.
• McDonalds could offer various discount deals to attract more customers such as promotions and
seasons discount to beat its competitors.

• McDonalds could attract attention by arranging or sponsoring various events for children and
adults.

• McDonalds’ could provide additional services, such as free internet to attract and maintain its
customers.

• McDonalds in order to become environmental friendly can use packaging material that can be
recycled later.

• McDonalds in order to maintain its image of socially responsible firm can do more to help people
around

• McDonalds could further expand by opening outlets to cover untapped areas.

THREATS

• McDonalds’ sales largely dependent on the economy of a country. Therefore, if a country’s

economy faces recession, it also tends to have a bad impact on McDonalds sales volume.

• McDonalds is facing huge competition from the new emerging restraints and organic food outlets

• If corrective measures are not taken, then the negative press could have a significant impact on
McDonalds.

• As more people are becoming health conscious they people would not want to go for junk food,
once they know its adverse effects.

• McDonalds also faces competition in various countries by the local food outlets there.

By looking at the SWOT Analysis of McDonald competitors can clearly comprehend what you are up
against. Competitors should use the analysis wisely to realize their weak areas, enhance their own
strengths accordingly, understand how to handle the threats and use the opportunities. If the SWOT
analysis is successfully done then the competitors even have the opportunity over come obtain
multinationals like PepsiCo.
Also, PEST Analysis is done to understand impact of external factors on your business. It is an
analytical tool for strategic business planning. It covers Political, Environmental, Social and
Technological factors that affect your business.

Pest analysis of McDonalds

Political Factors

In general political factors do not affect companies as much .Only the companies are obliged to pay
taxes like sales tax or payroll tax to the government. Like any other business, McDonalds is also
obliged to pay these taxes .These tax obligations are different in each country. But in countries
where there are strict consumer protection laws, companies have to make sure that the quality is
maintained and they deliver what they claim.

On countries where consumers laws are that strong McDonalds enjoys an added advantage there
but in countries like US, McDonalds has to face high cost in forms of lawsuits and litigations with a
breach of quality of a service.

Environmental Factors

Economic factors play an important role in operations of a company. If an economy of a country is

doing well, the business will flourish specially those producing luxury goods but if an economy faces
recession these business will face negative impact on their sales.

McDonalds falls in the same category. Their sale is largely dependent on economy of country. If the
economy does well, people will have more disposable income and will spend more in consuming
food items from McDonalds. Also, McDonalds imports much of its raw material from other countries.
Exchange rate fluctuations will also affect the operations of the company.

Social Factors

Social factors are very important while making strategic business decisions. Culture, values, norms
and the living style of people all affects the operations of a company.

McDonalds has various outlets in different countries. Each country has its own culture and
McDonalds makes sure that the cultural and religious barriers are kept in mind while deciding the
food menus at these different outlets. For instance the existence of meat in food menus is
considered offensive in India by some Hindu religious groups. McDonald’s has launched special
vegetarian meals to cater to that market.

Also McDonalds has the image of a socially responsible firm because of their involvements in
projects to help people like they announced backing to the rainforest Alliance. But in some countries
where there is anti American feeling among the people, McDonalds sales has been affected
because of people boycotting American goods.

Technological Factors

McDonalds mainly markets its products through television advertisements and billboards. There are
claims that McDonalds only targets children in their advertisements. This is apparent in the TV
commercials and the play spots and toys, further proves this actuality. McDonalds also uses
animated depictions of their character like Hamburglar and Grimace and to attract children.

Other advertising strategy that McDonalds use is employing popular celebrities to promote their
products. Like the McDonalds worldwide loving it campaign is endorsed by the Like .Moreover, the
operations of McDonald's have altogether been mixed with new technology. Management of value
chain and inventory system of the organization takes into account simple installments for their
suppliers and different merchants which the distinctive stores in different markets. The infusion of
technology in the operations of McDonalds adds quality to their items. The improved inventory
system as well as the supply chain enables the organization to work in a global context.

By conducting PEST Analysis; by evaluating the political, environmental, social and technological
factors, the business or its competitors can explore new opportunities and can spot the advanced
warning of threats. It reveals the possible threats that can be caused by change in business
environment which helps the business to shape accordingly rather than going against it.
Furthermore, it gives you an objective view of the new market that the business enters in and helps
you explore new areas according to the demand of the market.

Lastly, it helps the business to avoid projects that have chances to fail, for reasons beyond control
and lastly it helps business to explore new areas.

BUSINESS, MANAGEMENT

Burger King PESTEL/PESTLE Analysis

& Recommendations
UPDATED ON
UPDATED ON FEBRUARY 6, 2017 BY DANIEL KISSINGER

A Burger King
restaurant in Moscow, Russia. Burger King’s PESTEL/PESTLE analysis shows external
factors highlighting growth and expansion, technological innovation, product
improvement, and business sustainability. (Photo: Public Domain)
Burger King strives to become the top player in the quick service/fast food restaurant
industry. To do so, the company must strategically address the main issues highlighted
in this PESTEL/PESTLE analysis. The PESTEL/PESTLE analysis framework identifies
the most significant factors in the firm’s remote or macro-environment. In Burger King’s
case, these external factors include the influences of governmental and
nongovernmental organizations, as well as trends or changes in technologies, among
others. Effectiveness in addressing these issues raised in the PESTEL/PESTLE
analysis helps optimize Burger King’s global business performance in the long-term.

Burger King’s long-term performance partly depends on the company’s success in

strategically addressing the issues identified in this PESTEL/PESTLE analysis. The
external factors in the remote or macro-environment of the fast-food restaurant industry
are significant influences on Burger King’s global business.

Political Factors Affecting Burger King’s Business

Political conditions are determinants of business performance. This part of the
PESTEL/PESTLE analysis identifies governmental influence on firms’ remote or macro-
environment. In Burger King’s case, the following are the main political external factors:

1. Governmental support for globalization (opportunity)

2. Political stability in major markets (opportunity)
 3. Governmental support for e-commerce (opportunity)

Governments continually support globalization. Burger King can take advantage of this
condition through global expansion. Also, the external factor of political stability helps
reduce challenges to the company’s growth and expansion. In addition, Burger King can
improve its e-commerce capabilities. In this part of the PESTEL/PESTLE analysis, the
external factors present significant opportunities for Burger King to grow and expand
internationally.

Economic Factors Important to Burger King

Economic conditions directly affect Burger King’s remote or macro-environment. This
part of the PESTEL/PESTLE analysis outlines the economic changes and trends that
influence business performance. The following are the main economic external factors
that affect Burger King:

1. Expanding international trade agreements (opportunity)

2. Economic stability of the U.S. (opportunity)
3. High economic growth in developing markets (opportunity)

As countries implement more and expanded international trade agreements, Burger

King can grow through global supply chain enhancements. Also, U.S. economic stability
enables the company to gradually grow in the country. In relation, Burger King has the
opportunity to rapidly expand in developing economies. These conditions show that, in
the political dimension of the PESTEL/PESTLE analysis model, Burger King must focus
on external factors that present opportunities for growth and expansion, especially in
developing economies.

Social/Sociocultural Factors Influencing Burger King’s

Business Environment
Burger King must always account for sociocultural influences in its remote/macro-
environment. The social trends and changes and their effects on consumers and
employees are considered in this part of the PESTEL/PESTLE analysis. The main
sociocultural external factors affecting Burger King are as follows:
 1. Increasing consumer diversity (opportunity)
2. Higher health consciousness (threat & opportunity)
3. Increasing support for animal rights (threat & opportunity)

The increasing population diversity presents the opportunity for Burger King to innovate
its products to attract consumers of various backgrounds. Higher health consciousness
threatens demand for Burger King’s products, which are sometimes criticized as
unhealthful. However, the company has the opportunity to improve the healthfulness of
its products. Animal rights advocacy continues to attract attention, threatening the main
products of Burger King. Still, the firm can implement new supply chain policies to
address concerns on animal rights and welfare. This part of the PESTEL/PESTLE
analysis points to Burger King’s opportunities to improve despite the threats linked to
sociocultural external factors.

Technological Factors in Burger King’s Business

Burger King’s business partly relies on technologies. In this dimension of the
PESTEL/PESTLE analysis, technologies and related trends are considered in terms of
their influence on the remote or macro-environment of the firm. The following are the
major technological factors affecting Burger King:

1. Higher availability of automation technologies (opportunity)

2. Higher popularity of mobile technologies (opportunity)
3. Low R&D activity in the quick service restaurant industry (opportunity)

More automation technologies are now available for businesses. Burger King can apply
these technologies to improve operational efficiency. Also, the company can tap mobile
users to gain a bigger market share. Relative to the low R&D activity in the fast food
restaurant industry, Burger King has the opportunity to boost its R&D investments to
improve performance. In this part of the PESTEL/PESTLE analysis, Burger King has
major opportunities for performance improvements based on technological external
factors.

Ecological/Environmental Factors
The environment can impose limits to Burger King’s business. This dimension of the
PESTEL/PESTLE analysis covers the impact of ecological conditions on firms’ remote
or macro-environment. In the case of Burger King, the following are the most notable
ecological external factors:

1. Climate change (threat)

2. Emphasis on business sustainability (opportunity)
3. Increasing popularity of low-carbon lifestyles (opportunity)

Climate change threatens to reduce the stability of Burger King’s supply chain.
However, the company has the opportunity to improve its sustainability status. Also,
Burger King has the opportunity to improve efficiency to attract consumers who
advocate low-carbon lifestyles. The ecological external factors in this dimension of the
PESTEL/PESTLE analysis indicate that Burger King can realistically work on
sustainability and efficiency.

Legal Factors
Burger King must comply with legal requirements. The effects of legal systems on firms
and their remote or macro-environment are considered in this part of the
PESTEL/PESTLE analysis. The major legal external factors influencing Burger King are
as follows:

1. Import and export regulation (opportunity)

2. Environmental protection laws (opportunity)
3. GMO regulation (threat)

Burger King has the opportunity to grow based on import and export regulations that
support new international trade agreements. Also, the company can enhance its
sustainability performance to exceed expectations and requirements based on
environmental protection laws. However, GMO regulations, especially in Europe, limit
the performance of Burger King, considering the widespread availability of GMO
ingredients used in the industry. This dimension of the PESTEL/PESTLE analysis
emphasizes growth and sustainability based on legal external factors.

Burger King’s PESTEL/PESTLE Analysis –

Recommendations
Burger King’s PESTEL/PESTLE analysis raises various issues, not all of which can be
realistically addressed. With regard to the remote or macro-environment of the fast food
restaurant industry, Burger King must prioritize the following concerns:

1. Growth and expansion, especially in developing markets

2. E-commerce and mobile transactions
3. Product improvement for health-conscious consumer

Product in the Marketing mix of Burger king

When Burger king was opened, the first restaurant menu included basic hamburgers, desserts, French
fries, milk shakes and soft drinks. Later in the year 1957, it introduced “Whopper Sandwich” to its
previous menu. The hamburger that is of just a quarter pound has become synonymous with
the brand name and therefore the new restaurants were even named “Whopper Bars”.

In 1979, a special Sandwich line was introduced and later the breakfast product line was presented. In
the later years, Mini Muffins and French toast sticks were added to the menu. With the expansion of
various outlets in different regions the menus were somewhat localized to adhere to the regional tastes
and religious beliefs.

Fast-food items like Texas Double Whopper, Mushroom sandwiches and Swiss cheese have been
rotated in the menu on and off with times. At present bacon cheeseburger, hamburger, coffee, juice,
cookies, whopper junior, French fries of medium size, chicken tenders, onion rings, soft drink and
a shake are served to the customers.

Place in the Marketing mix of Burger king

Presently Burger King has an outlet almost everywhere in the global market. It has its base in nearly
seventy-nine countries with an estimated 13000 outlets. 66% of these outlets are in US with 99% of them
being operated and owned privately. Its international locations include Europe, Oceania and East- Asian
countries like Japan, Singapore, Taiwan and South Korea. It has also recently entered India.

Burger King has divided all its global operations in to three different segments. It has established various
subsidiaries and developed alliances that have proven strategically sound and profitable. In order to
maintain its expansion plans the company has been using different franchising options.

Related: Marketing mix of Panasonic - Panasonic Marketing mix

The system through which the company operates with its franchises depends on the particular region.
Some franchises with regional background are chosen and they are dealt as master franchises. These
master franchises have the responsibility of selling licenses to sub-franchises on the behalf of the main
company.

Under an agreement, it is the responsibility of the franchises to make investments in seating

arrangements, décor, equipment’s etc, while the land and the building on it is owned or leased by the
company. Thus, the distribution network of the company is woven around the main company, its
franchises and the outlets.

Price in the Marketing mix of Burger king

Burger king uses competitive pricing because the competition is very high from the likes of McDonalds.
Burger King has been closely monitoring and evaluating their pricing policy so that the consumers do not
feel burdened by the rates. Besides analyzing the amount, that a customer is willing to pay, the analyst
also determines whether their competitors are charging less or more than they are.

As the various customers belong to different income groups so does the price of food items vary from
easily accessible to high price range. The price should be high enough so that doubts are not raised
about the quality of the products and low enough so that the customers are willing to pay for it. Thus, a
combination of competitive pricing and psychological pricing is used by Burger king.

Promotions in the Marketing mix of Burger king

The firm’s promotional strategy is based around the concept of reorganizing and revitalizing its brand at
definite periods. Burger King has periodically overhauled its strategies related to menu, advertisements,
new agencies, refurbishment of the outlets and a new concept for the restaurants known as the “BK
Whopper Bar”.

Many of its successful campaigns had melodious jingles, which went on to become hits and its slogan
“Have It Your Way” has become synonymous with Burger King. Several advertisements are shown on
television and print media to popularize the various outlets and food items that have become its specialty.

Burger King has aligned themselves with organizations that sell scratch cards for $1 and the prize is
either a food product or a beverage related to BK. It also has its own charitable organizations. The first
one is “Have It Your Way Foundation” that focuses on prevention of diseases and removal of hunger from
every household. The second is the “McLamore Foundation” that is responsible for providing scholarships
to the interested and deserving students. These steps have proved to be an advertisement for the human
side of the company and have helped in uplifting and maintaining its brand image.

Related: Marketing Mix of KFC

The key factor in converting customers is also its distribution. Local advertising like hoardings, lollipops,
roadside ads and other such methods are used to get the tempo going for local customers so that they
regularly visit Burger king. The key to promotions also lies in the fact that Burger king gives more quantity
of food at a comparatively lesser price then its competitors. Thus, overall there are many ways that
Burger King promotes itself, right from the product design to the ATL and BTL strategies.

Product in the Marketing mix of McDonalds

McDonald’s places considerable emphasis on developing a menu which customers want. Market
research establishes exactly what this is. However, customers’ requirements change over time. In order
to meet these changes, McDonald’s has introduced new products and phased out old ones, and will
continue to do so.

Care is taken not to adversely affect the sales of one choice by introducing a new choice, which will
cannibalise sales from the existing one (trade off). McDonald’s knows that items on its menu will vary in
popularity.

Their ability to generate profits will vary at different points in their cycle. In India McDonalds has
a diversified product range focussing more on the vegetarian products as most consumers in India are
primarily vegetarian. The happy meal for the children is a great seller among others.

Price in the Marketing mix of McDonalds

The customer’s perception of value is an important determinant of the price charged. Customers draw
their own mental picture of what a product is worth. A product is more than a physical item, it also
has psychological connotations for the customer. The danger of using low price as a marketing tool is that
the customer may feel that quality is being compromised. It is important when deciding on price to be fully
aware of the brand and its integrity.

In India McDonalds classifies its products into 2 categories namely the branded affordability (BA) and
branded core value products (BCV). The BCV products mainly include the McVeggie and McChicken
burgers and the BA products include McAloo tikki and Chicken McGrill burgers. This has been done
to satisfy consumers which different price perceptions.
Promotions in the Marketing mix of McDonalds
The promotions aspect of the marketing mix covers all types of marketing communications One of the
methods employed is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster
sites and in the press for example in newspapers and magazines.

Related: Marketing mix of Microsoft

Other promotional methods include sales promotions, point of sale display, merchandising, direct mail,
loyalty schemes, door drops, etc. The skill in marketing communications is to develop a campaign which
uses several of these methods in a way that provides the most effective results.

For example, TV advertising makes people aware of a food item and press advertising provides more
detail. Hence, McDonalds uses many above the line marketing methods. This may be supported by in-
store promotions to get people to try the product and a collectable promotional device to encourage them
to keep on buying the item.

At McDonalds the prime focus is on targeting children. In happy meals too which are targeted at children
small toys are given along with the meal. Apart from this, various schemes for winning prices by way of
lucky draws and scratch cards are given when an order is placed on the various meal combos.

Place in the Marketing mix of McDonalds

Place, as an element of the marketing mix, is not just about the physical location or distribution points for
products. It encompasses the management of a range of processes involved in bringing products to the
end consumer. McDonald’s outlets are very evenly spread throughout the cities making them very
accessible. Drive in and drive through options make McDonald’s products further convenient to the
consumers.

People in the Marketing mix of McDonalds

The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly and
prompt service to its customers from their employees. All new franchise’s are trained in customer
management and in keeping the customers happy.

They are also trained for handling negative responses from customers and what to do when there is high
pressure on the outlet. Such kind of training is especially useful when the employee has no job
experience and is working in a McDonalds outlet which is bound to get crowded on weekends or festivals.

Conclusion
The last half of the twentieth century witnessed the development of many fast food chains,
though Burger King is the second largest hamburger fast food restaurant in the world, but it still
maximize the profit and minimize cost.

With a general environment analysis, the company can see a longer horizon of time, and be able
to clarify strategic opportunities and threats that the organization faces. By looking to the outside
environment to see the potential forces of change looming on the horizon, Burger King can take
the strategic planning process out of the arena of today and into the horizon of tomorrow.
By the strength of the company to fully utilize their on hand resources, it bring the company
growth faster. They are differentiate their products, it make the customers, suppliers can reliable
on them. By saturating nearly every market it has entered, Burger King now envisions itself as a
stabilized company, with entering new markets as they are in exploiting those markets in every
way available to them. The company is also more able to respond to consumer demands that,
earlier in its existence, would have been impossible. The best strategic options and key selection
criteria that Burger King has been using to strengthen their company business management. They
are maintaining the high profit with the low-cost products provide to the market, which can get
the higher demand and popularity from the different stages of customer.

So by overall, Burger King has the persistent business management to maintain their business no
matter on their products, promotional or business strategic, it bring the company to growth
rapidly and globalize.

Recommendations
Bases on the strategic options, to open more branches is considered inefficient strategy ,because it need a lot of
money to open the new branches ,but can implementing more other strategy to reach same goal which is increase
the market share like franchisee system and also the delivery system. By using the low cost delivery system, more
customers can enjoy the Burger King product everywhere and every time .It is considered more efficiently than open
more branches . In the franchisee system, Burger King can earn more profit from the transaction and increase the
market share, but to focus on the product quality, Burger King should put more attention on it to keep the reputation
maintain and increase in the same time. The franchisee training is very important on it .For the franchisee system,
Burger King should also control the location of the branch to avoid too many branches in the same certain place,
which can reduce the competition of all franchisee and market inefficient.

Low cost strategic is a good strategic to reach the higher profit, with a good distribution network will hit the
corporate low cost strategic. Maintain the quality and lower the production cost is a good way to increase the profit
but both element should be move in the same direction .

For the “highest income brackets” of the Burger King market segmentation, will reduce the Burger King’s customer
population, because the cheaper should be more attracted. By increase the customer population, Burger King should
do more promotion and also the advertising for the short-term. On the other hand, to increase the customers
population in the long-term, Burger King should make the product differentiation by develop more product types and
favorites which can attract more new customer. This development will increase the market shares and also the
competitive advantages for the Burger King to survive in this competition market.

Advertising is important element to reach the profit margin increase, Burger King should use the low cost advertising
which can effective and also save a huge of money .The population lifestyle is changed and the technology
improvement Burger King cannot using the traditional media to promote their product, teenagers and adults are
prefer internet more than the newspaper nowadays. Like using the website advertisement is consider as cheaper
advertising which also can filter the population to reach the market segmentation more effective than without filter it.
You will never advertising the Burger King to a 80 years old ,so we need to filter the population first to the target
customer .

ADVERTISING

Since its establishment in 1954, Burger King has utilized fluctuated publicizing programs, both fruitful and
ineffective. Amid the 1970s, yield incorporated its “Hold the pickles, hold the lettuce…” jingle, the motivation for
its present mascot the Burger King, and a few surely understood and spoofed trademarks, for example, “Have it your
way” and “It takes two hands to deal with a Whopper”. Burger King presented the principal assault promotion in the
inexpensive food industry with a pre-high schooler Sarah Michelle Gellar in 1981.

BK was a pioneer in the publicizing practice known as the “item tie-in”, with a fruitful organization with George
Lucas’ Lucasfilm, Ltd., to advance the 1977 film Star Wars in which BK sold a lot of glasses . This advancement
was one of the first in the inexpensive food industry and set the example that proceeds to the present. BK’s initial
accomplishment in the field was eclipsed by a 1982 arrangement among McDonald’s and the Walt Disney Company
to advance Disney’s enlivened movies starting in the mid-1980s and going through the mid 1990s. In 1994, Disney
changed from McDonald’s to Burger King, marking a 10-motion picture limited time contract which would
incorporate such top 10 films as Aladdin (1992), Beauty and the Beast (1991), The Lion King (1994), and Toy Story
(1995).

In February 2019, the organization propelled a promoting effort called “Eat Like Andy”. The TV spot which
debuted amid the Super Bowl LIII highlights recorded narrative film from “66 Scenes from America” by Jørgen
Leth of the pop craftsman Andy Warhol (1928-1987) unwrapping and eating a Whopper. The recording was
affirmed for use by the cheap food mammoth politeness of the Andy Warhol Foundation .

In the interim before the diversion the mass market burger affix made accessible to watchers who requested it ahead
of time by means of DoorDash an “Andy Warhol Mystery Box” which with contains among different things a
plastic jug of ketchup and a platinum wig so one.

ADVERTISING
McDonald's began operations in India in 1996. It retained Leo Burnett (India) to provide authentic Indian insights in years of study and
planning to meet local conditions with special concern regarding local favorite items, religious-based food taboos and India's strong
vegetarian tradition. Its hamburgers are made of lamb or chicken, not beef. It adapted local favorites into items such as McAloo Tikki, a
breaded potato pancake on a bun. It divided its kitchens in the vegetarian and non-vegetarian zones making sure that food did not cross the
line. Its advertising told Indians that its bright, inviting restaurants did not mean high prices. Its strategy was profits through high volume and
low prices. Locally it sponsored sports programs and donations to visible charities.[6]
Ultimately, McDonald's India has not made a profit in 22 years. The cultural clash between the American McDonald's vision and the Indian
society was too large and was not able to overcome local challenges. Firstly, although the menu was adapted for items such as "McAloo
Tikki",both high and low income households preferred to eat street food of the same type. [7]. Additionally, the McDonald's business model
relies on egalitarianism. McDonald's model of "serving your own food" and "cleaning up after yourself" was not readily accepted in a high
power distance society like India. Further, India's collectivist norms surrounding the Hindu religion and conservative nature are not intent on
eating out[8]. The McDonald's business model depends on individualistic American norms that do not necessarily align all in all societies of
the world. Advertising and marketing for McDonald's India was targeted to the younger, wealthier, urban crowds of main metropolitan cities
which did not include the family unit [9]. Finally, although McDonald's made a strong attempt to adapt to the local Indian society, it upheld too
many of their corporation values which ultimately has led them to fail in India.

Recommendations

1. Service Differentiation: McDonald’s needs to focus on service differentiation strategy in order to position the restaurant as a
superior service restaurant in the minds of the target consumers. The service differentiation strategy implies that McDonald’s shall offer superior
services at each step of the customer touch points right from the placement of order through the delivery of the products.

2. Personnel Differentiation: The availability of well-trained staff is essential for delivery of high quality service to the customers.
McDonald's should continue to invest in the training and development of its employees to ensure high service quality. Well-structured training programs
shall ensure the long term growth of the organization.
3. Integrated Promotional Mix: McDonald’s can implement an integrated promotion mix that has a balance of both traditional and
modern digital media for brand promotions. McDonald’s must recognize the importance of digital media in the promotional mix for organizations, and
should devise digital marketing strategies to engage with the online customer base.

4. Product Augmentation: McDonald’s can offer additional product and service features such as food on demand and home delivery
so as to provide convenience to customers. Product quality can be further enhanced with fresh ingredients. McDonald’s should continue to invest in
menu customization and menu standardization strategies to attract and connect with target customers in diverse geographical markets.