Social And Cultural Issue Business Essay

Introduction

Burger king is a fast food restaurant all over the globe. David Edgerton and James McLamore is the founder of burger king in United States in 1955. Burger king opened 12,400 outlets in 73 countries in 2011 including New Zealand. They are also known as Bk. From 2002 to 2011 burger king targeted large number of product that carried larger amounts of unhealthy fats to 18-34 male demographic.

Burger king franchise is one of the mean of increasing its operation. In the starting of 1970 was the golden age of burger king advertising. But in 1980 advertising began to lose focus

The first major addition to menu was Whopper in 1957. The main menu burger king has is breakfast items fish, French fries ,sandwiches, cheeseburger and hamburger and soft drinks, chicken salad ,

Onion rings, and etc. IN 1970 burger king‘s franchise system became progressively challenging for Pillsbury.

Political and Legal Issue

There are many political and legal issues for open burger king such as in their restaurant they will have to comply with food act 1981 rules and regulation like food and safety regulation and food feed charges regulation .The global fast food restaurant chain burger king always shortened BK has complex disputes and cases plaintiff and defendant in the years since its establishing 1954. In the feature of the company’s operation these many legal topics have affected. The political and legal

Forces that will affect the burger king for their marketing strategies will be the monetary and fiscal policies of the government where interest rates tax legislation affecting the marketing system, a good will be Gst.There should be safety in the food safety in restaurant so people will more like the food. The privacy act 1993 will requires burger king to advice their customers of the intend purpose of information held about them market survey.

Ethical issue

Ethical is moral conduct of the business what is right or wrong in the ethical issue burger king will be the collective social responsibility of towards culture and require itself in the code to inspire diversity among employees, business sources ,and avoid insight within the company .

There should be neat and clean food in burger king so that people will not get affect on their health. Helping ethical culture that values and respect all people. In the ethical issue burger king defiance with all laws and company policies .Burger king will also have provide to customers car park space to stand their car in safe place .burger king should provide fair and full sensible in the financial report with agreement to the law .there should be providing sponsorship local sporting teams and helping young people in need.

Social and Cultural issue

Burger king will also have to reflect the beliefs, lifestyle, behaviors, social values, buying favorites of the people. as we know new Zealand is a small country it has many different culture; norms and values determine what is suitable and what is not .Burger king also will have to know the food necessities for each ethnic group .As we know Sikh and Hindu people are mostly vegetarian so the will prefer to eat from burger king which does not contain eggs and meat .But when we talk .on the other side Muslim people eat only halal meat so burger kind will have to deliberate these things before opening the café. Burger king will also have to consider about people‘s like and dislike .For example some people prefer good quality of foods rather than quantity .They buy good product for their safety durability and value .burger king will have to mention about people‘s health because some people eat for increase their power so they can take part in sports which they like and some eat for satisfaction and to full their stomach. Burger king will also have to take account of men and women within the household for their purchasing power because every gender likes different taste which will influence their buying.

Swot Analysis

There are many swot analyses for burger king as weakness, strength, opportunity and threat these all will summarize the current situation of Burger king.

Strength: - burger king is the second largest fast food hamburgers restaurant in the world .burger king has 11500 fast food restaurants in the world. burger is prepared in burger king by properly grilling them over fire .burger king also serve many types of dishes as mozzarella sticks, apple pie ,Hershey ‘s pie etc .burger king has a strong brand items ,fast and efficient service .

Weakness: - Advertise is not done of product in more rate by burger king as other competitor does. The sales of burger king are also less than McDonald’s .If burger king has weak marketing campaigns then they will not able to join with their customers. Muslim would vacillate to try out their burger as they are not sure whether it is halal or not because they are not familiar with burger king.

Opportunities:-BY giving more advertising of product burger king could improve their sales .New branches also could be opened by burger king in major and rural areas. Many famous countries do not have burger king like Malaysia does not have burger king in their city so burger king could open their branch in that city which will increase sales of burger king.

Threats:-Threat is faces by burger king from other major fast food restaurant like McDonald’s and Wendy’s .The threat for burger king is McDonalds’s created highest rate in sales among the three. Other threat burger king will face is consumers changing outlook and behaviors to eating healthier food choices. The sales of burger king declined nova 2006 to nova 2009 because people who were between 18 to34 cut their consumption of fast food meals according to marketing research firm ndp group.

PESTEL ANALYSIS

Pastel analysis shows political, economic, social and technological factors on an organization. Burger king will have to use postal analysis is a dynamic ingredient in their planning process.

Political-: In the political burger king will have to mention government laws such as labor law, environmental law, trade restriction, tariffs and political stability .In political government wants that the service should be good which will not affect on the health of people.

Economic-: factors are exchange rate, inflation rate, interest rate, and economic growth. These are the major factor and these are major influence

That how to operate and make decision by business. For example exchange rate effect on the port and export of goods.

Social-: factor are career attitudes , age distributors and health consciousness .In this factor company give more importance to old workers .social factor also affect on demand that which type of product company wants and how to operates .

Technological -: technological change makes new methods of producing goods and service. Cost, quality and lead to innovation could be affected by technology shifts.

Environment analysis -: are whether, climate and climate change. Industries, tourism, farming and insurance might be affected by these factors.

Legal analysis -: this factor includes health and safety law, employment law, and consumer law .Burger king should follow and run these factors.

Porters and five forces

Porters industry structure and generic strategies models could be used by burger king .Porter five forces development by Michal E Porter of Harvard business school in 1979 .porters and five ports are listed below .

Threat of new entrants

Starting cost

Government policy

Economic of scale

Board identity

Buyer’s power

Bargaining leverage

Brand image

Threat of backward integration

Switching cost

Buyer volume information

Supplier power

Volume

Cost

Switching cost

Substitutes possible

Supplier concentration

Impacts of inputs on cost product

Substitute product

Inclination

Switching cost

Rivalry

Cost leadership

Switching cost

Brand identity

Segmentation

Product differentiation

>Threat of new entrants-: If any strong probability new firm enter in burger king’s market. It will impact on burger king that how they will operate this situation. If the of any industry increase we would except to additional firm to enter the market for taking advantages of high profit level .If profit decline then we would except to exit some firms from the market thus we may except that the future price will fall .

> Substitute product -: Today’s global economy provides more alternative for customers. It means the customers will avail more than 1200 option .If the products of burger king are simply substituted by other products that is the similar satisfaction with low cost will mean control profit for burger king . The customer of burger king may also decrease.

>Buyer power-: The people who order food by telephone, internet, paying are called buyers .If burger king has petite number on individually strong buyers then it will impact on the profit of burger king. The demand of buyers could be low price and very high level of service.

>Suppliers’ powers -: Try to put physically in the shoes of franchise owner of vast burger chain, like burger king. Price could be controlled and increase by suppliers.

> Rivalry-: In the industry rivalry is the major determinant of the competitiveness .The level of advertising is expense in rivalry. Rivalry is the powerful competitive strategy .Rivalry makes competition between online and offline companies.

Conclusion

Burger king has a good brand name at present but burger king has very high threat competitor. In order to be successful between the competitors burger has to must build a differentiation strategy. Today burger king is famous for its quality and standard service and innovative ideas. Burger king must produce innovative products in order to meet the competitors. Burger king must be exploring new opportunity ideas in order to develop strategy.