Burger King Beefs Up Global Operations Essay Example | Topics and Well Written Essays - 1000 words

Burger King Beefs Up Global Operations - Essay casefulThe corporate headquarters of Burger King is located in Miami, Florida. Miami is often referred to by Latinos as the capital of Latin America. The fuddleds reputation in Miami which is one of the cities in the United States with the highest population of Latinos spilled over into the placidity of Latin America (Uts, 2011). In terms of geographic considerations the proximity of Miami to the South America and the Caribbean region enhances the might of Burger Kings management to visit these countries and for franchisees to visit corporate headquarters. Marketing is the value chain action that adds greatest value to the company. The success of Burger King is highly dependent on its capability to attract grant customers. Advertising has been used by the company to build the brand value of the firm. The company finances a lot of its marting budget by charging its franchisees a 4% marketing fee on all told sales which is indepen dent of the 4.5% royalty fee it charges (About, 2011). 3. The world(prenominal) expansion of Burger King came at a laggard pace than its main competitor in the fast food industry, McDonalds. An profit of cosmos the first to the market is that first entrants create greater brand value recognition than get hitched withers (Kotler, 2003). A second advantage of entering a market first is the ability to obtain a greater market constituent. Companies that follow have to invest a lot of money in advertising to steal market share apart from the first entrant. A third advantage of being first in the market is the ability to lock up contracts with suppliers. This is very important especially in markets that have a limited heart of suppliers. The most important supplier for a hamburger chain is the slaughterhouses that provide the meat. On the other expire it is advantageous to enter the market later because the first entrant takes all the risks of the market not being suitable for th e product the company offers. Another advantage of entering later is that the first entrant spends cosmic amounts of capital to build up the demand for the product and is also responsible for cr consume the supplier network. 4. An advantage for a company such as Burger King in comparison with local merchants is that Burger King has greater purchase power than the competition. Burger King can take advantage of economies of scale and as a consequence the firm can implement a lower price structure to attract customers. The local merchants have advantages over Burger King such as having a fixed customer base and greater knowledge of the customers eating preferences. 5. Burger King has more than 2/3 of its stores located in North America. The company has to move away from this strategy due to the fact that the fast food industry in this region is very staring(a) particularly in the United States. There are over 160,000 fast food restaurants located in the United States of America (Num berof, 2010). The companys strategy must change to achieve greater international penetration. Burger King currently has a physical presence in only 40% of the 210 countries worldwide (Garabain, 2008). acclivitous economies should be the prime target of Burger King particularly the BRICS (Lukyanov, 2011). The BRICS is composed of Brazil, Russia, India, China, and South Africa. The population of China and India combine represent 36.66% of the worlds population. 6. It is advantageous to penetrate countries that have large numbers of youth and shop centers. The main consumers of fast food are teenagers, generation