Business HL: Burger King

Burger forces planetary magnification plays a key role in the employment hopes in overtaking McDonalds prestigious position in the profitable fast-food world. Currently maintaining its spot as the second- deepst global fast-food mug in the world, Burger indexs senior officials sack that they moldiness effectively strategize their global merchandising skills. As a global titan in the fast-food world, it is app atomic number 18nt that Burger big businessmans investment approximation skills move over paid off. Through this report, I testament aim to react the question Should Burger queen regnant equal to(p) a franchise in Pakistan?The initiative portion of my report provide be the look for overlook. This forget precis my entire report. I get out take on a rationale, theoretical framework, and methodology. These will briefly overview the basis of my report.The second portion of my report will entangle my research findings, my analysis, and my calculations. mug up a nd PEST will be amongst the analytical tools that will be shown. My research will be mainly secondary precisely I will show a hint of primary findings. My decision will answer my question from a financial and non-financial perspective.The numerical set used in the Calculations and Main Results and Findings sections argon estimates. The price obtained for the value of a 500 real meter plot in a commercialized bea was given by Pakistani real e allege companies. The yearly gold flow is a forecast based on the keep down of cash McDonalds generates annually in Pakistan and the average amount of cash a fast food restaurant generates per year.IntroductionBurger Kings embarrassment of notorious legal lie withs has resulted in a loss of money and reputation. Although their embody cuts have resulted in higher earnings, their revenues continue to fall along with their carry on prices. In order to restore their reputation and higher their revenues, it is important for the brand to t ackle international expansion opportunities, especially in regions where their sphere of ascertain is low.When deciding whether to open an international franchise, a number of financial and non-financial aspects must be taken into card. The political articulate, consumer preferences, and cultural distinctions in Pakistan must be considered. On top of this, it is important to assess the profitability and desirability of the expansion (i.e. Investment appraisal). Burger King is not very prominent in the tocopherol and so building their prominence in sub-continental Asia will be a milestone in their global influence.This has therefore led me to research the succeeding(a) question Should Burger King open a franchise in Pakistan? investigate Question Should Burger open a franchise in Pakistan? Procedure/MethodMy research was in full gained through secondary resources. Online sources were used to provide interviews with Burger King Officials, add financial statistics, and gather i nformation on Burger Kings marketing strategies. My information was collected from online databases that specialize in marketing and financial monitoring. I obtained my balance sheets from these databases in any case. I discovered an interview in QSR Magazine. This interview was as well as used in my research and findings. Possible problems I could face are the biased in the interview I found and the reliability of my number (credibility of my sources). The research I obtained was very useful. I am fortunate to have found a large number of sources to choose from. My non-financial data is fully based on my research. I did not face any problems during this report.If I could do this report again, I would explore more financial aspects of the issue being explored. This is because numerical research is more reliable than non-financial findings. Non-financial findings give get on for bias. All in all, I feel like this was a boffo report.AnalysisSWOT AnalysisThe estimated payback gu npoint is about six and a half long time this relatively low payback period. This is because the franchise will be profitable. The address of labor in Pakistan is low collectible to the minimum wage laws in the country. Furthermore, there is a high rate on unemployment. Although the unemployment rates are decreasing, the amount of working-aged citizens that are unemployed is still high. Weaknesses presented by this appraisal include expensive body politic, expensive food products, place shortages, and political instability.The political state of Pakistan is extremely volatile, especially this year. Elections are being held this year and so tensions amongst opponent supporters is high. Atop this, constant riots and protests shake the stability of the nation. A political excitement could result in vandalism and our destruction of property. The largely anti-Ameri merchant ship placement in Pakistan is also a problem due to the fact that Burger King is an American fast-food chain. This problem can be potentially decreased however, with indemnity and an extensive contingency plan. Moving on, the political state of Pakistan has resulted in a high price for fruits and vegetables. Vegetables are necessary in order for this business to strive.In addition to a high cost for vegetables, the cost of 500 square meters of land is also relatively high ($350,000). This is not too large of an issuehowever. This is because the land will be bought and not rented. Thus, the cost of the land was included in the calculations for the payback period, which turned out to be low. Lastly, power shortages are abundant. Load shedding is very consistent. Thus, the cost of a author must be taken into account. The threats presented by this investment have already been mentioned safety, power shortages, and the year of elections). The opportunities presented by this investment are vast. First and foremost, this will be the first Burger King franchise in Pakistan.As mentioned in my intr oduction, Burger King, unconnected its completion (McDonalds) lacks Asiatic franchises. The success of this franchise may lead to the commencing of more franchises around the region. The cheap labor makes it attractive and profitable. Furthermore, there will be a larger range of consumers. Because Burger King has a very limit amount of franchises present in sub-continental Asia, its notice is not fit to assemble Pakistanis. New customers and new flavor preferences will likely result in the production of new food items. These may be popular on a global scale. In addition to new products, Burger King will strengthen its fan base.PEST AnalysisExternal political factors have already been mentioned in the previous(prenominal) sub-section (SWOT Analysis). Civil unrest is extremely unpredictable due to the hostile state of the government and citizens. Unrest could potentially cause result in lasting, hurtful effects. Mediocre health and safety laws may also be an issue. optimum hygi ene factors influence the performance of the business employees. Also, it is vital to have optimum hygiene in order to attract customers. In addition to health and safety laws, minimum wage laws are also low. This is seen as a pro rather than a con as it ensures cheaper labor.Economic issues are also abundant in Pakistan. The weak currency is one example. The rupee is forever dropping and so exchange rates will be high. However, due to Pakistans Islamic form of banking, there is no interest. This is a persuade quality of the location. Moreover, economic growth in Pakistan is very mediocre. Moving on, pork/ham is illegal in Pakistan. Ham makes up much of the Burger King menu and so they must be willing to modify the menu in order for optimal effectiveness. Also, the culture in Pakistan is highly patriarchal.Women are expected tostay home and cook. Families usually eat home cooked meals together, at home. This may be an issue as this can result in a smaller customer count. However, the Pakistani population is growing eternally and so there are many more children from newer generations. Teenagers are Burger Kings most loyal customers. Furthermore, there is a sense of anti-Americanism in Pakistan. This brings up many red flags. Burger King is an American fast-food chain and so boycott and/or vandalism must be taken into account when developing a contingency plan. This problem may not be such a big deal however. Pakistan is constantly modernizing.Views on the fall in States and American corporations are becoming more supportive and/or indifferent. indigence may be the largest obstacle. Pakistan has an extremely high rate of illiteracy and poverty. This can negatively affect the franchise as many citizens will be incapable of affording fast-food. Contrastingly, Burger King can host fundraisers and/or other kind-heartedness events to benefit the poor. This is one way in which they can bring up their reputation as a global brand. Lastly, the cost of packaging is high.ConclusionAccording to the SWOT analysis, the opportunities presented by this investment are far greater than the threats and the weaknesses. Furthermore, the payback period presented by this investment is relatively low and a franchise in Pakistan could majorly impact Burger Kings global sphere of influence. Opening a franchise in Pakistan will also add more compartmentalisation to their flavor and potentially better their reputation. Their balance sheets and income statements would not show solid changes and so they were not mentioned (because this would be 1 of 11,000 franchises).In my opinion, opening a Burger King franchise in Pakistan is a swell idea. The opportunities and strengths outweigh the negatives. The franchise should open after elections to lessen the risk of political unrest.