Burger King Beefs Up Global Operations Essay Example
Running Head: Burger King 1
Burger King Beefs Up Global Operations
1
Burger King, also known as BK, is the second largest fast food hamburger chain in the world. Founded in 1954, the original “HOME OF THE WHOPPER”, now operates in more than 12,300 locations in 76 countries and territories worldwide (Burger King Corporation, 2011). According to the case study, “two major ways in which Burger King differentiates itself from competitors are the way it cooks hamburgers— by its flame- broiled method as opposed to grills that fry— and the options it offers customers as to how they want their burgers.” (Daniels, Radebaugh & Sullivan, 2011, p. 465) Although the company has expanded their original menu throughout the years, burgers remain their core competency, with the Whopper sandwich as its signature product.
When your business is successful, the thought of expansion of sales is common, as it can lead to more profits. Expanding internationally can be a profitable venture for many businesses, but just like any new investment there are pros and cons involved. The fast food industry is no different and therefore before expanding internationally the advantages and disadvantages must be consider. For instance, depending on where BK decides to expand, they may be able to take advantage of favorable government regulations, such as lower taxes. Most importantly when you expand a business into a new country and the people like your product, it creates demand which results in substantial sales. A disadvantage an international restaurant company may face when competing with a local company may be a result of cultural differences. Overcoming the cultural barriers in other countries is not that simple. Every country has its own culture and “tastes”, and BK may not be able to accurately predict what people in that culture will truly enjoy (Arthur, 2011) Thus, new products in the menu may vary by region. For example, in Puerto Rico BK offers
Burger King Beefs Up Global Operations
1
Burger King, also known as BK, is the second largest fast food hamburger chain in the world. Founded in 1954, the original “HOME OF THE WHOPPER”, now operates in more than 12,300 locations in 76 countries and territories worldwide (Burger King Corporation, 2011). According to the case study, “two major ways in which Burger King differentiates itself from competitors are the way it cooks hamburgers— by its flame- broiled method as opposed to grills that fry— and the options it offers customers as to how they want their burgers.” (Daniels, Radebaugh & Sullivan, 2011, p. 465) Although the company has expanded their original menu throughout the years, burgers remain their core competency, with the Whopper sandwich as its signature product.
When your business is successful, the thought of expansion of sales is common, as it can lead to more profits. Expanding internationally can be a profitable venture for many businesses, but just like any new investment there are pros and cons involved. The fast food industry is no different and therefore before expanding internationally the advantages and disadvantages must be consider. For instance, depending on where BK decides to expand, they may be able to take advantage of favorable government regulations, such as lower taxes. Most importantly when you expand a business into a new country and the people like your product, it creates demand which results in substantial sales. A disadvantage an international restaurant company may face when competing with a local company may be a result of cultural differences. Overcoming the cultural barriers in other countries is not that simple. Every country has its own culture and “tastes”, and BK may not be able to accurately predict what people in that culture will truly enjoy (Arthur, 2011) Thus, new products in the menu may vary by region. For example, in Puerto Rico BK offers