CASE STUDY: BURGER KING
COURSE: MBA (2014/2015)
FACULTY: BUSINESS, ECONOMICS & ACCOUNTANCY
LECTURER: PROF. DR SYED AZIZI WAFA
NAME OF STUDENT
Ho Tian Ai
1. CASE SUMMARY
The well-known Burger King with the tag line of “Have It Your Way” has their signature burger of Whopper Burger. Burger King was previously known as Insta-Burger King which was founded firstly in Florida by Keith Kramar and Matthew Burns in 1953. 2 years later, it was purchased by James McLamore and David Edgerton and renamed in Burger King with introduced their first Whopper sandwich in 1957. It has grows over 250 locations in the United States and they sold to Pillsbury Corporation in 1967. Pillsbury was then purchased in 1989 by Grand Metropolitan which then merged with Guinness and forming Diageo, which the latest owner of Burger King.
Burger King was the second largest fast food hamburger in the world with the measure of total number of restaurant and system wide sales. The revenue of Burger King is mainly from (1) retail sales that owned by company restaurants (2) royalty payments on sales and franchise fees (3) property income from restaurants leased to franchisees. Management of Burger King planned to boost the growth with international expansion on three different categories of countries. There are countries with growth potential, countries with potential where firm has small presence and attractive new markets.
Burger King is categorized as quick service restaurant (QSR) segment of the restaurant industry. Their primary competitor is McDonald’s followed by Wendy’s and Hardee’s. Carl’s Jr, Jack in the box and Sonic are considered as their regional competitors. There are a few indirect competitors that indirectly affect their revenue which is Taco Bell, Arby’s and KFC. Across the years, the health awareness and fitness is raised...