Simulation Case

Sample Solution

Edgerton and James McLamore were the owners of big fast food industry. The first original name of global industry was Insta-Burger King. Until year 2011, Burger King opened 12,400 outlets. They were located in 73 countries including New Zealand. In 21s century there is now opened 15,000 restaurants across 100 countries. Since its opening the menu for the Burger King has evolved from French fries, milkshakes, soft drinks, sodas burgers and desserts to more upgraded and larger set of products like Whopper sandwich. Between 2002 and 2010, Burger King directed huge products that carried large quantities of unhealthy fats. After 2010 Burger King change their male oriented menu to more modest menu items with packing and product reformulations (The Free Encyclopedia, 2012). Burger Kings franchise is one of the ways of expanding their activity. Burger King is a franchisor who giving precisely procedures and rules for other franchisee to follow. To reach volume growth Burger King connected itself with multinational expansion for a huge saturated market place. The Burger King is situated on second place next to McDonald’s related to size and number of stores. Their brand name is the most recognized brands in the world which sets them apart from their competitors. Burgers Kings is still growing brand. More food menu choices help them to be modest in the market and maintain the customer it has. The main menu Burger King has is French Fries, burgers, chicken and fish sandwiches, breakfast items, onions rings, soft drinks, salads.

Pestle analysis

Pestle analysis is based on examines the macro (external) business environment forces facing a firm in 6 mains zones, Political factors, Economic factors, Social (Sociocultural) factors, Technological factor, Logical factors and Environmental factors. Proper understanding of these factors lets the organisation to indicate areas of business capabilities in combination with proper understanding of the firm’s strengths, and also possible fears to the business in combination with an appropriate understanding of the company’s weaknesses. In marketing, before a tactical plan it is central to conduct a situational analysis. For effective strategic planning, the analysis of external issues it is the fundamental step before examining interior strengths and weaknesses of the business by SWOT analysis. The PESTEL form is part of that and should be recurrent every 6 month (minimum) to recognise changes in the external environment. Organisations that effectively monitor and reply to changes in the macro-environment are able to see differences from the competition and generate a modest advantage. Impact of political factors on Burger King Issue of political factors includes political policy and stability of government, trade, fiscal and taxation policies. It is also potential changes to legislation. It says about global influences too. In Burger King’s company the main political factors are support globalization, e-commerce by government and political stability in main marketplaces. The external issue of political stability helps decrease challenges to the company’s expansion and growth. Political factors can have a big impact on profitability and business. It affects industry in a few critical areas. A business trying to grow abroad may encounter political barriers. International trade and collaborations can help businesses develop and expand overseas. Businesses may find difficulties to grow in countries where the governmental environment is unfriendly. In countries where there is lack of political stability can also give consequences in economic instability what can result in lack of income. Asian countries have a very low record in terms of ‘Red tape’- (series of complicated tasks that seems unnecessary but that a government or organisation requires you to do in order to get or do something). Political environment is very important in Asia, Burger King is trying to develop in Asian c