CASE SUMMARY
Burger King previously known as insta-burger king, currently was the second largest hamburger franchise chain in the world after Mc Donald. This fast food chain was established by Keith Kramer and Matthew burns on 1953. In 1955, after facing financial difficulty this company was sold to Miami based franchised and being renamed Burger King by its new owner called James Mclamore and David Edgerton. In 1989, this company bought by diego a British Spirit company. Under Diego management BK has fall off in the business because of poor performance. To avoid from further loses, Diego has sell it to a partnership private equity firm led by TPG capital in 2002.
As per June 2010, it is recorded that Burger king has 12 174 outlets in 76 countries, which is 66 percent of them are in the US and 90 percent are privately owned and operated worldwide. Burger King is the second largest chain of hamburger fast food restaurants in terms of global locations, behind industry bellwether McDonald’s. Based on resourced, company income was generated mainly from three sources that is retail sales at company owned restaurant, royalty payment from sales and fee from franchises and also property income from restaurant leases to franchisees. Management has used a business strategy that can help boost sales and production performance and investing on promoting the brand. The company also specifically plan on growing its chain and focus on international expansions. Expansions are done only at selected market for example countries that has potential on positive growth and attractive new market for instants the middle east or Asia markets.
According to industry analysis, burger king’s share price had fallen by half from 2008 to 2010, this is according to them burger king is having significant management problem. In this study case we will recommend several strategic management in other to solve its problem.