SSR

Institute of Management & Research, Silvassa

Empower Yourself @ IMR

301- Strategic Management

CCE 02: Small Group Project

Submitted By: Submitted To:

Aniket Jha Mrs. Diksha Swaroop
Paritosh Janathiya Assistant Professor
Roll No. 09 & 32 SSR IMR
Batch: 20-22
 INTRODUCTION (BURGER KING)

Founded in 1954, Burger King is the second largest fast food hamburger chain in the world.
The original Home of the Whopper, our commitment to premium ingredients, signature
recipes, and family-friendly dining experiences is what has defined our brand for more than
50 successful years.

Source: www.burgerking.co.in

According to the company, Burger King was started in 1954 by James W. McLamore and
David Edgerton in Miami. Other sources, however, trace Burger King back to Insta-Burger
King, a venture founded in Jacksonville, Florida, by Keith Kramer and Matthew Burns in
1953. McLamore and Edgerton sold their first franchises in 1959, and Burger King soon
became a national chain. The company expanded ouside the United States in 1963 with a
store in Puerto Rico.

Persistently lagging behind McDonald’s in sales and profitability, Burger King underwent
many changes of ownership and corporate governance. In 1967 it was sold to the Pillsbury
Company, which, in the late 1970s, brought in Donald N. Smith, a former McDonald’s
executive, who revitalized Burger King by expanding the menu and tightening control of
franchisees. Pillsbury was itself acquired by the British company Grand Metropolitan (Grand
Met) PLC in 1989. Grand Met became Diageo PLC after its merger with the Irish
brewer Guinness PLC in 1997. Diageo sold Burger King in 2002 to a consortium of
private equity financiers, namely the Texas Pacific Group, Bain Capital, and Goldman Sachs
Capital Partners. In 2010 3G Capital, an investment group controlled by the Brazilian
billionaire Jorge Paulo Lemann, took over the company in a leveraged buyout. By 2012,
Burger King shares were being sold to the public again, but 3G retained a controlling interest.
Burger King Worldwide merged with the Canadian doughnut and fast-food chain Tim
Hortons in 2014, and a new parent company called Restaurant Brands International was
formed. In what some critics saw as a tax-avoiding “corporate inversion” move, Restaurant
Brands International was headquartered in Oakville, Ontario, Canada.

A large hamburger called the Whopper is Burger King’s signature product. The Whopper was
introduced in 1957, at a time when its competitor McDonald’s was still selling only small
hamburgers. The chain took a new direction by adding hot dogs to the menu in 2016.

ETOP Analysis of Burger King

What is ETOP Analysis?
Why ETOP Analysis needed?
Figure of ETOP Analysis for Burger King:

Burger King PESTEL/PESTLE Analysis & Recommendations

What is PESTEL Analysis?

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 consumers
4. Business sustainability

Value chain