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Pest Analysis On Burger King -
December 3rd, 2010
Burger King, often abbreviated as BK, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United States. Burger King Holdings is the parent company of Burger King; in the United States it operates under the Burger King Brands title while internationally it operates under the Burger King Corporation banner. The company began as a Jacksonville, Florida-based restaurant chain in 1953. Originally called Insta-Burger King. After the company ran into financial difficulties in 1955, its two Miami-based franchisees, David Edgerton and James McLamore, purchased the company and rechristened it Burger King. Over the next half century the company would trade hands four times, with its third set of owners, a partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, taking the company public in 2002. The current ownership group, 3G Capital of Brazil, acquired a majority stake in the company in a deal valued at $3.26 billion (bn) in late 2010.
At the end of fiscal year 2010, Burger King reported it has more than 12,200 outlets in 73 countries; 66% are in the United States and 90% are privately owned and operated. The company has more than 38,800 employees serving approximately 11.4 million customers daily. Over the course of its history the company has used several variations of franchising to expand its operations. In North America, franchises are licensed on a per store basis, while in several international locations licenses are sold on a regional basis with franchises owning exclusive development rights for the region or country. These regional franchises are known as master franchises, and are responsible for opening new restaurants, licensing new third party operators, and performing standards oversight of all restaurant locations in these countries; the largest example of a master franchise is Hungry Jack's, which exclusively owns, operates or sub-licenses over 300 restaurants in Australia. Despite its reliance on its franchisees for the majority of its revenue, Burger King's relationship with its franchises has not always been harmonious. Occasional spats between the two have caused numerous issues, and in several instances the company's and its licensees' relations have degenerated into precedent setting court cases.
The Burger King menu has evolved from a basic offering of burgers, fries, sodas and milkshakes in 1954, to a larger, more diverse set of offerings that includes several variations of chicken, fish, salads and breakfast. The first major addition to the menu was the Whopper, a sandwich developed by McLamore in 1957; it has since become Burger King's signature product. Not all introductions have had the success of the Whopper; BK has introduced many products which failed to catch hold in the marketplace. Some products that have failed in the US have seen success in foreign markets, where BK has also tailored its menu for regional tastes. After the purchase of the company in 2002, Burger King began to aggressively target the 18-34 male demographic with larger products that often carried correspondingly large amounts of unhealthy fats and trans-fats. This tactic would eventually come to hurt the company's financial underpinnings and cast a negative pall on its earnings.
The company's "Golden Age" of Burger King advertising was during the 1970s when it introduced its mascot the Magical Burger King, a memorable jingle, and several well known and parodied slogans. Beginning in the early 1980s, the company's advertising began to lose focus; a series of less successful ad campaigns created by procession of advertising agencies continued for the next two decades. In 2003, Burger King set about resuscitating its moribund advertising with the hiring of the Miami-based advertising agency of Crispin Porter + Bogusky (CP+B). The new agency completely reorganized Burger King's advertising with a series of new campaigns centered on a redesigned Magical Burger King character accompanied with a new online presence. While highly successful, some of CP+B commercials have been derided for perceived sexism or cultural insensitivity. While growing its brand, the company has run into several trademark issues, including instances of prior use, regarding its own name and its products.
Commercial organic carrots are relatively difficult to grow compared to many other vegetables. Carrots require specialised machinery for sowing, weeding and harvesting, and usually need some hand weeding to avoid yield losses due to competition from weeds. All these elements add to their cost of production. They do, however, reward growers who overcome the difficulties and produce good, high quality crops. However, in terms of commercializing and marketing the organic products such as carrots, there is a need for an analysis to determine its competitiveness.
The paper will use the Analysis to determine the strategy development of the production.
The primary strength of the production is to support the organic sector particularly in agricultural level of the country and in the long run assist the economy. The organic carrot production can help the society in terms of income earning because it has a tradition of volunteerism, self-help and self-determination. Furthermore, the production promotes the philosophy and practices address consumers' interests in health and wellness, the environment and animal welfare. The producers of organic crops, processors and handlers belong to flexible organizations that meet their members' needs and facilitate communication within the community. The support of the government can emphasize the promotion for supply of goods that can be a great factor in the carrot production industry which adds to its size and expansion in production in the long run. New organic carrot producers continue to emerge and continue to meet ever-evolving consumer needs and together use marketing systems directly to consumers. The organic sector has multiple marketing channels that include the boxed delivery of produce, farmers' markets, packing plants, product brokers and distributors, among others.
There are identified deficiencies in infrastructure of the organic carrot production that could impede the achievement of the future goals. The ignorance or resistance of the society might affect the marketing of the organic carrots in the market and to the consumers because it is often not consistent with the principles of organic production. The agricultural sector lacks an adequate production knowledge base, or the knowledge base for organic processing is limited - even more so than the knowledge base for organic production. The other factor that might contribute to the weakness is the organic agricultural issues tend not to be addressed by the larger agricultural research institutions. Another is the lack of research and attention that happens in local government. Another is the challenge for the continuous production, which might not be satisfied if there are changes in the weather or soil degradation which proves that there is a lack of research and extension support for organic farmers, especially during the transition phase from conventional to organic systems. The issue of production capacity, product quality, and consistency presents the future demand for organic carrots that can greatly affect the ability of producers to supply products.
Opportunities identify areas that the organic products like carrots can perform according to the consumer focus. The Organic production can attract the consumers and create more on the procurement of locally grown food and associates local with organic products. The organic carrot production is socially responsible in that it supports fair labor practices which can aid both the large producers and small farmers. In addition, there is an emerging pattern of social consciousness among consumers which makes the introduction of organic carrots in the market is promising. This advantage is gained due to the raised public awareness of organic agriculture and increased support and the consumers’ fear on pesticides, and stories in the popular press continue to remind the public that pesticides can have an adverse effect on health. Because of this, the production of organic carrots is within the line of pest management that could benefit organic producers. On the other hand, the challenge on the group of producers can be answered through the programs that will teach the appropriate organic production and promote in adding strengths to the organic producer service industry.
There are issues or threats involved in the organic carrot production. One of which is the perception that organic farming methods will not provide enough food to feed the world. Another is the perception that organic food is not as safe as conventionally produced food. And lastly, the misinformation generated by those ignorant of the organic sector and what it represents. All of the three issues can attract the incompetency of the organic carrot production.
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