SUBJECT TOPIC NAME STUDENT ID EMAIL Strategic management Final Strategic analysis assignment NAGA KRISHNA PUPPALA 75792 Puppala

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SUBJECT TOPIC NAME STUDENT ID EMAIL Strategic management Final Strategic analysis assignment NAGA KRISHNA PUPPALA 75792 Puppala.nagakrishna1@gmail.com Company Overview and Current Performance: Who is Burger King? An American worldwide chain of cheeseburger fast food eateries headquartered in unincorporated Miami- Dade County, Florida, United States Founded by David Edgerton; and James McLamore History: The organization started in 1953 as Insta-Burger King, a Jacksonville, Florida-based eatery network. After Insta.In 1954, its two Miami-based franchisees, David Edgerton and James McLamore, obtained and renamed it Burger King. End of financial year 2013, Burger King had more than 13,000 outlets in 79 nations; of these, 66 percent are in the United States and 99 percent are exclusive and worked (BK,2016). Company Mission and Company Vision: Mission: “offer reasonably priced quality food, • served quickly, • In attractive, • Clean surroundings. Vision: “to be the most profitable QSR business, through a strong franchise system and great people, serving the best burgers in the world.” • • • • Achieve the leading position in QSR business. (McDonald’s) Use a franchise system to grow. Great people and the best burgers. Establish the nature of the business. Company Objectives • • • • • • Increasing market share by increasing brand image. Target larger consumer segments/Generate new customers. To project itself as a high quality and premium brand. Increase brand loyalty. Increase customer satisfaction. Start conversion of company/franchise ownership from 11.75% to 15% (for every 100 BKs, 15 will be company owned). External Environment Analysis PESTEL ANALYSIS: Political Factors: ? ? ? ? Governmental support for globalization. Political stability in major markets. Governmental support for e-commerce. Significant opportunities for growth and international expansion. Economic Factors: ? ? ? ? Expanding international trade agreements. Economic stability of the U.S. High economic growth in developing markets. Opportunities for growth and expansion in developing economies. Social/Sociocultural Factors: ? Increasing consumer diversity. ? Higher health consciousness. ? Increasing support for animal rights. ? Opportunities to improve despite the threats. Technological Factors: ? ? ? ? Higher availability of automation technologies. Higher popularity of mobile technologies. Low R&D activity in the quick service restaurant industry. Major opportunities for performance improvements based on technological external factors Legal Factors: ? ? ? ? Import and export regulation. Environmental protection laws. GMO regulation. Legal-based opportunities for growth and sustainability. Ecological/Environmental Factors: ? ? ? ? Climate change. Emphasis on business sustainability. Increasing popularity of low-carbon lifestyles. Realistic opportunities to work on sustainability and efficiency. Five Forces Analysis Internal Environment Analysis SWOT ANALYSIS Mission Review ? ? ? ? Missing elements in the company’s mission. Emotional appeal. Target region. Increasing employee commitment and motivation. Objectives Review ? Not formulated based on SMART goals. ? Measurement is missing. ? No time frame stated. TWOS Analysis OS, TS, OW, AND TW STRATEGIES OS Strategies (MAXI-MAXI) ? Utilization of strong brand image and high market penetration to open new restaurants. ? Emphasis on diversification through moderate differentiation. TS Strategies (MAXI-MINI) ? Retaining position in the market with the help of strong brand image. ? Utilization of moderate product differentiation to address the healthy lifestyles trend & reduce risk of imitation. OW Strategies (MINI-MAXI) ? Address current product mix limits by product mix widening. ? Investing in service quality improvement for harder imitation. TW Strategies (MINI-MINI) ? BKC should focus on widening its product mix and increasing its product differentiation in order to minimize the chances of imitation. Company’s Strategies and Goals GRAND, GENERIC, AND VALUE DISCIPLINES. Generic Competitive Strategies ? ? ? ? ? ? ? Cost leadership. Primary generic strategy. Minimizing costs to offer low prices, through standardization of processes. Broad differentiation. Creating unique characteristics for differentiation. Flexible options. (“Be Your Way”) Competitive Edge ? Unrivaled differentiation of products. ? Quick service. ? The franchise strategy. Strategy Implementation: Strategy Implementation Problems o o o o Cost leadership. Broad differentiation. Market penetration in a saturated market. Product development. Structure Compatibility to Strategy o Global centralization. o Functional groups. o Geographic divisions. Strategy Compatibility to Life Cycle Stage o o o o Burger King is in maturity in its product life cycle. Increased competition. Similar product offerings. Strategy is matching the stage. Main objective is to maximize profit while defending market share. Sample of Strategy Implementation Action Plans Objective: Increasing market share by 15% by the of 2023 Actions Due date BY Comment 1. Achieving 10% growth in annual sales 1/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 Abdallah Requires annual evaluation. 2. Increasing promotional budget by 20% 1/1/2020 Ramy Emphasize the use of celebrities, influencers and social media. 3. Raising customer satisfaction by 25% 1/1/2021 Ahmed Tracking social media feedback. 4. Increase awareness by 10% 1/1/2021 Ramy 5. Increase customer retention by 20% 1/1/2023 Abdallah Focusing more on customer retention rather than acquisition. Control and Evaluation Objective Actual Corrective Actions o Raising customer satisfaction by 25% by the end of 2020 o Achieving 10% growth in annual sales o Increasing market share by 15% by the of 2023 Adjusting the promotion budget o Reducing Employee turnover by 30% by 2024 Adjusting the implementation procedure through reviewing the effectiveness of compensation programs and training. Conclusion ? Ever-changing leadership is bad for business. Stability needed. ? Less focus over goals & objectives. ? Affected brand image adversely. ? Lacked consistency in operation. ? Failed to communicate vision to franchisees. ? International presence can be further strengthened. ? Mission statement can be further improved. ? Objectives can be further improved. THANK YOU STRETEGIC MANEGEMENT FINAL ASSIGNMENT 1. Short description of the company 2. Mission and vision statement https://www.oberlo.com/blog/inspiring-mission-vision-statement-examples 3. PEST analysis https://www.mindtools.com/pages/article/newTMC_09.htm 4. 5 forces analysis https://www.business-to-you.com/porters-five-forces/ 5. Internal analysis https://www.businessmanagementideas.com/scientific-management/internal- analysis/internal-analysis-in-strategic-management-tools-importance-and-swot- analysis/18762 https://www.zippia.com/advice/internal-analysis/ 6. TOWS matrix https://getlucidity.com/strategy-resources/an-introduction-to-tows-analysis/ https://miro.com/welcomeonboard/dF973QPbhCdmpT1P3XOgPYwGERcJnVLFcjotzfp S11EXTW98qDbUHSOGPcWZkm7 7. Strategic goal Define 1-3 main strategic goals 8. General strategy What is a general concept that may help you to gain your strategic purpose?