Strategic managemnet of burger king Essay Example | Topics and Well Written Essays - 750 words

Strategic managemnet of burger king - Essay ExampleBetween financial year 2009 and 2010, the company experienced net negative growth in its total revenues due to the negative 4 percent dip from its US and Canadian businesses. The EMEA region and Latin America had 8 and 10 percent positive revenue growth within the close (Burger King Holdings 2010). Not surprisingly, within this period it is the same EMEA and Latin America regions that had 44 new restaurants opened in contrast to 24 restaurants cosmos shut in the US and Canada region. To mitigate this trend the corporation continued to invest in a U.S. and Canada re-imaging program, deployment of new restaurant equipment and developed innovative products. The companys worldwide sales growth has been on a general downward slope from the third quarter of 2008 and moved into negative territory from the heartbeat quarter of 2009 to date (Burger King Holdings 2010). We shall use the rest of the paper in seeking to explain why Burger Ki ng has been experiencing a decline in revenue especially in the US.The PEST (Political, Economic, Social and Technological) factors soak up long being used to explain the macro environment of a business which has to be factored in the development of any corporate strategy. The political front has been favourable for the fast food industry in the US with no major legislations or regulations that would hinder growth of the industry taking place. We therefore predominate this out of Burger Kings problems. In contrast, the economic environment has never been worse for major US corporations like Burger King. Costs atomic number 18 going up at the producer level but companies are unable to match this up with corresponding increase in prices because of the current utmost inflation and high unemployment i.e. economic recession. Burger Kings applied two strategies here. First it reduced its offering on its $1 menu by removing a slice of cheese and then raised the price of its double chee seburger from