WEAKNESSES: COMPANY INTERNAL
a. Too dependent and heavily relying on franchisees as revenue sources, which accounted for two from its three sources of revenue.
b. The continuous leadership changes over the years may undermined its ability to establish and communicate a consistent and motivational vision to its franchisees. For example, when Diageo’s management took over Burger King business, the performance was poor to the point that major franchises went out of business and the total value of the firm declined.
c. Its high percentage of franchisees also cause Burger King to have limited management control.
d. Its restaurant mostly concentrated in the United States (60%). And has a small or less presence internationally as compared to McDonald’s.
e. Failure to adapt to more suitable marketing strategy during the fiscal years and marketing to the wrong target market. For example, While McDonald’s strategy is to put more emphasis on women and older group by offering healthier salads and upgraded its already good coffee, Burger King continued to market to young men offering high calorie burgers and advertisement featuring dancing chickens and a “creepy looking” king. This marketing concept not only promotes an unhealthy diet but also targeting the wrong target market, which was the men, that having difficulties and was hit hard on employment and such during the fiscal year.
f. Cannibalized its existing sales by putting too much emphasis on value meals, which they sell it in lower price compared to its production cost. Thus, causing them to lose money.
g. Some food items, for example Pizza Burger, contains 2530-calorie. This served as a concern as Americans opt for a more healthy living.