Burger King Essay

1121 WordsNov 10, 20135 Pages
Burger king Burger King's core competency is its signature product, the flame broiled burger that it sells and advertises on a daily basis. It is the world's largest flame broiled fast food restaurant chain and remains second in the fast food hamburger market. After Burger King’s headquarters were destroyed in 1992 to Hurricane Andrew, CEO James B. Adamson saw an opportunity to change the overall strategy of the company to get Burger King back to what he called its core competencies. Adamson felt that the best way to do this was by simplifying how the hamburgers were made and sold, as well as how they were advertised. His strategy was to monopolize on the company’s basic strengths such as the flame broiling method, unique to Burger King. In addition, he gave operators a bigger say over which menu items they will push with local advertising dollars (Radenbaugh & Sullivan, 2011). Although Burger King remained second in sales to McDonalds, the strategy to grow based on its core competency was successful. The company saw a 28% increase in profits for the fiscal year 1994. Aiding in this growth was the sale of 211 company-owned stores during the year to franchisees, which garnered $64 million. The continued performance improvement has impressed lenders, who have committed to issuing more than $500 million in loans and credit deals to franchisees for capital investment (Radenbaugh & Sullivan, 2011). As Burger King started out selling burgers, fries, milk shakes and sodas only, the shift of focus back to the flame broiled burger relates directly to the strength of the company’s core competency. Even though over the years they have sense expanded to other items including chicken and salads, it is the marketing of the original burger that continues to lend success to the company overall. The continued focus on their signature burger, the Whopper,

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