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An Individual Report on Burger King to increase its operational foothold in the United Kingdom

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Individual Report- Burger King

Introduction

The following paper provides greater details onto the operational strategies that the United States based hamburger manufacturing restaurant chain Burger King must take into consideration to increase its operational foothold in the United Kingdom. As a result, a TOWS matrix has been developed following identification of the strategies based suited to the government in accordance to the information furnished by it. Furthermore, the necessary of taking into consideration the needs and demands of local population segment of the UK is elaborated along with adequate details on the relationship Burger King enjoys with the state authorities.

TOWS Matrix

The following section provides a detailed TOWS matrix of Burger King, based on the identified strengths, weaknesses, opportunities and threats.

EXTRENAL FACTORS

INTERNAL FACTORS

STRENGTHS

-              Strong brand presence and large degree of customer loyalty.

-              Competitive advantage in terms of developing attractive marketing campaigns.

-              Strong brand positioning with the use of attractive marketing campaigns (Roderick, 2017) materials required for the purpose of doing business in the fast food industry.

-              Suppliers ensures adherence to high quality standards (Bolloré Logistics, 2018).

-              Franchise method of operations has helped significantly in its rapid expansion (White, 2017).

-              Product is available in a large number of places, through the franchise mode operated restaurants.Huge supplier base to provide with the raw

 

WEAKNESSES

-              Customers switching towards other brands in search of product innovation (Deloitte, 2017).

-              Failure to cope up with varying customer demand in terms of taste, quality and affordability.

-              Product mix needs to be updated continuously to cope with the continuous change in the needs, demands, taste and preference of customers.

-              Customers often expresses dissatisfaction in relation to meeting the desired quality standards.

 

OPPORTUNITIES

-              Stable political environment in the UK.

-              Globalised business outlook of the government of UK paved the business expansion initiatives within the country (Pratap, 2017).

-              Exposed to the advantages associated with global supply chain developed due to the increased international trade agreements.

-              Economic stability prevailing within the UK marketplace is favourable to the increased growth rate (IBIS World, 2018).

-              High degree of product innovation opportunity due to diverse population of the country.

-              Increase research and development to automate the operational activities using technological advancements.

 

THREATS

-              Increase health consciousness among customers a severe threat to the product offerings (Wells, 2017).

-              Environment pollution a major issue of concern to continue operating in the UK.

-              Adherence to laws and regulations relating to environment protection, food safety and health consciousness.

-              Increase in competitive threats from McDonald’s and Wendy’s (Forbes, 2014).

-              Threat from substitute products like, fried chicken, pizza, fine dining restaurants and home cooking options (FranchiseHelp Holdings LLC., 2019).

 

Prospective Operational Strategies for Burger King

Based on the strengths, weaknesses, threats and opportunities identified in the above section, Burger King must look forward to developing strategies that are likely to enhance its operational footfall in the UK significantly. In the very first instance, the fast food service provider must gain a detailed knowledge on the food habits, needs and preference of the customers residing within the target customer segment. In doing so, Burger King will be in a better position to handle the needs and demand of the customers and also cope with the continuous change in their mindset in relation to look after brands when consuming fast food. The product innovation prospects of the organisation must look forward to ensuring that it is well coordinated with what the consumer looks forward to (Visnjic, Wiengarten and Neely, 2016). It is of immense significance for Burger King to develop strategies based on what the customers looks forward to from the organisation in it service scope. The product innovation process as well as tools used for the marketing purpose and the overall process relating to delivery of customer service must be well inculcated with the target population residing within the UK marketplace of fast food.

2.2 Potential Need to Cater to the Local Needs and Demands

The population segment residing within the UK is highly diversified, since it comprises of people from different parts of the world. As a result, the customer segment in the country looks forward to food items that are highly innovative and capable of relating themselves well to their individual taste and preference. The present of diversified people with a huge range of taste demands in the country, therefore makes it essential for Burger King to take into consideration local needs and demands. The fast food retailer must strive forward to develop a marketing mix, that is capable of gaining the attention of largest segment of target customers, amidst the presence of severe competitive forces. Furthermore, development of product and service offerings based on the local needs and demands of customers is critical to gaining high degree of competitive advantage. According to Wells (2017), the population residing in the UK is found to be largely conscious about their health and thereby prefers healthy food items. This makes it essential for Burger King to take into consideration that its food items adhere to health consciousness and of the customers significantly. Thus, it can be largely said that for an organisation to gain adequate degree of competitive advantage and brand loyalty in a competitive marketplace, high degree of concern should be exhibited in incorporating local needs and demands with that of the product and service offerings.

3.0 Role of the State and its Relationship with Burger King

For an organisation to operate in full swing, it is of immense significance to develop a good and cordial relationship with the government of the country in which it is operating. A stable political environment is critical to the success of an organisation in the globalised business environment (Child and Marinova, 2014). The government of the UK is found to be highly supportive in helping international organisations take full advantage of the operational benefits associated with globalisation. It has exhibited full support to the US based fast food restaurant chain Burger King to establish itself as a well-known brand in the UK. The high degree of stabilisation offered to the organisation in terms of the political factors impacting the business operations is a major factor taken into consideration for the rapid growth experienced by Burger King in the UK. The fast food restaurant chain severely exploited the cooperation and support exhibited by the country’s government in relation to experiencing high degree of expansion and prospective growth rates amidst severe competitive forces present within the marketplace (Pratap, 2017). Furthermore, a stable political environment and healthy relationship with the government is also essential for the organisation to successfully gain in both regional customers as well as international tourists. The UK belonging to the fist world countries of the world seems to have a stable market place, with good economic prospects. Therefore, the economic attractiveness of the country along with favourable and supportive government initiatives has made it comparatively easier for Burger King, an international brand to operate in the UK. Furthermore, the government of the UK largely helped the organisation by providing several tax benefits and relaxation in the stringent rules and regulations governing the operational aspect of the business. The rules and regulations impose by the state seems to be a major threat for the organisation to bear in the future (Merry, Davis and Kingsbury, 2015). Burger King also received full support of the government to make effective use of internet technology for the purpose of enhancing its ecommerce operational activities in the country significantly.  

4.0 Recommendations for Future Operations

Based on the information gained about the overall operational scope of Burger King in the UK, it is highly recommended that the organisation takes into consideration several new strategies. It must go ahead with taking full advantage of its strengths in relation to responding to the booming opportunities as well as overcome its weaknesses and long-term business operational threats. In this regard, Burger King must take full advantage of its good and cordial relationship with the government of UK in enhancing its operational foothold significantly. The support and assistance offered by the government in the wake of globalisation must be fully taken as an effective tool of establishing its brand supremacy in the competitive marketplace. Furthermore, the organisation must go ahead with developing relationship with its customers. In doing so, it will help the hamburger restaurant chain to develop products and service in accordance to the taste and preference of the customers. The consideration of relationship focussed marketing campaigns is also critical to increasing the advertising and promotional aspects of Burger King in the country largely. Moreover, the organisation will be largely in a position to enjoy a larger degree of customer trust and loyalty with the development of a close association with its target customers residing within the country.

5.0 Conclusion

From the above discussion, it can be largely said that Burger King on following the recommended set of actions are likely to enhance its operational activities in the UK significantly. It will be in a better position to deal with the competitive forces present within the marketplace and successfully gain high degree of competitive advantage in comparison to its counterparts.

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