Burger King S3

Burger
King
Abdon Ramirez 154121069
Beatriz Rodrigues 154121013
Francisco Marques 154121077
Maria Joana Almeida 154121054
Miguel Domingos 154121007
Introduction/ Strategy Statement Presentation
Pestle Analysis Outline
5 Forces Analysis
Resources and Capabilities/VRIO
Business Strategy
Us and our Competitors
Promotion and Differentiaton
Value
Introduction
Founded by James McLamore and David Edgerton in Miami in 1953.
Quick service hamburger restaurant chain.
Burger King has over 18,700 locations worldwide and operates in over 100 countries.
Burger King generated approximately 1.81 billion U.S. dollars in revenue during the 2021
financial year.
Burger King serves approximately 15.7 million customers per day.
“Pleasing our customers with affordable

quality food in a clean and convenient
environment and at every location.”
(Strategy Statement)
PESTLE
POLITICAL ECONOMIC SOCIAL
Governments being Recession and increasing taxes; Healthy trends;

open to the idea of Inflation rates on different Vegan trend;
globalisation; companies and products; More awareness about
Policies restraining the Transportation is more what people eat;
consumption of meat; expensive (fuel prices); Constant growth on the
Highly exposed to Decrease in value of foreign concern of animal cruelty
country specific risks. currencies affecting revenues;
Decrease in investment due to
higher rates.
PESTLE
TECHNOLOGY LEGAL ENVIRONMENT
Spread of information is More regulations on Concern about the
faster; unhealthy food, sanitation, environmental impact

animal rights and safety meat consumption has is
Growth of demand for
authorities. growing between people.
food delivery;
Evolution of automation Climate change.
processes.
These key external factors, give us an understanding of the business environment in which Burger King
operates. Showing us that it will face a few challenges, like the incoming recessions, but that it is also in a
market that is changing and growing at the same time, as, for example, people become more aware of what
they eat but order more food deliveries as well.
5 Forces
Suppliers Substitutes
Don’t have much power, as Cook at home pre-prepaired

their margins are low they need meals programmes, that make
to sell a lot; cooking at home easy, however
A lot of suppliers, leads to low hold low power as they aren't
power from raw material well established and are quite
providers (Meat, vegetables, …). expensive.
5 Forces
New
Buyers Rivalry
entrants
Large number of costumers Easy to open a restaurant High number of competitors

with low buyer power, which but hard to build a powerful and variety of firms;
means, individually, they brand name and keep However not many as
hold low bargaining power; quality through restaurants, established and of the same
Low switching costs, making which represents a barrier size. But with this, the
it so that large groups hold to entry. competition is fierce and
quite a lot of power. needs to be taken seriously.
Strong brand image and Franchise system;
Resources Revenues from royalty obligations;

Large number of retail facilities;
Exclusive long-term contracts with
partners;
Knowledge and expertise.
Frequent innovation adding new items;

Expansion plan (International presence and
Capabilities
expansion);
Consistency throughout restaurants.
VRIO Analysis
VALUE RARE INIMITABLE ORGANIZED
Substainable
Brand image
competitive advantage
Temporary competitive
Franchise model
advantage
Temporary competitive
Consistency
advantage
Large number of Temporary competitive

restaurants advantage
Business
strategy (Hybrid)
Cost-leadership strategy - primary
strategy;
Minimize operating costs which
leads to lower overall costs;
Broad differentiation- build a business

that is different from its competition;
Differentiation;
Promotion.
Why do we differentiate from our competitors?
The burgers are flame-roasted, so they

put on less fat than conventional fast-
food burgers cooked on regular grills;
Unique app that allows customers to

order, check offers, make reservations
and also buy large portions for events
(catering).
PROMOTION AND DIFFERENTIATION
BURGUER KING APP
Coupons all year:

People get encouraged
Order your food We prepare your Order sent to your to go to Burguer King.
from app. order. address.
Value Creation: Value Capture:
Affordable quality food to people all Locations everywhere, selling volumes of
around the world with a bigger menu than food that are mass focused;
competitors at comparable prices, that are
cheaper than most of the industry; Lower prices achieved by agreements
with soft drink companies (Coca-cola,
Benefits local producers, BK customers, etc), and offering a wide menu with clean
and Franchisees. restaurants.
Value Configuration:
Franchise model, BK sells a license to open
a store at a flat fee, asking for percentage
of yearly revenues. BK provides and sells
furniture and necessary machines for
locations, ensuring uniformity;
BK develops the dishes, menus, promotions

and these are passed down to the
franchises to operate.
Bibliography:
https://www.mbaskool.com/pestle-analysis/companies/18143-burger-king.html
https://www.investopedia.com/articles/markets/111015/mcdonalds-vs-burger-king-comparing-
business-models.asp
https://www.vettedbiz.com/burger-king-franchise-review/
https://www.bk.com/about-bk
https://www.statista.com/statistics/266462/burger-king-revenue/

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Burger

Resources and Capabilities/VRIO

Us and our Competitors

Promotion and Differentiaton

“Pleasing our customers with affordable

Governments being Recession and increasing taxes; Healthy trends;

Spread of information is More regulations on Concern about the

faster; unhealthy food, sanitation, environmental impact

Don’t have much power, as Cook at home pre-prepaired

Large number of costumers Easy to open a restaurant High number of competitors

Resources Revenues from royalty obligations;

Frequent innovation adding new items;

Large number of Temporary competitive

Broad differentiation- build a business

The burgers are flame-roasted, so they

Unique app that allows customers to

BURGUER KING APP

Coupons all year:

BK develops the dishes, menus, promotions

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