Table of content

Introduction 1
History 2
Burger Kings Vision statement 3
Burger Kings mission statement 4
Introduction of Burger King Pakistan 5
Production 6
Product line 7
Promotion & advertisement of BK 8
CSR 9
Profits of burger king 10
Decline of burger king 11
Recent issues BK is facing 12
Suggestions 13
Conclusion 14
 Introduction
BURGER KING which is also known as BK is the second largest fast food hamburger
chain in the world. The original HOME OF THE WHOPPER, our commitment to
premium ingredients, signature recipes, and family-friendly dining experiences is what
has defined our brand for more than 50 successful years. Burger king is having franchises
more than 14000 restaurants and owns about 1,000 for a chain wide total exceeding
15000, with locations in all 50 states and 56 countries. The company serves 15.7 million
customers each day and over 2.4 billion Burger King Ham burgers are sold each year
across the globe. In start BK known as Insta-Burguer king after some time it got change
and it is known as Burger King.

History
The predecessor to Burger King was founded in 1953 in Jacksonville, Florida, as Insta-
Burger King. After visiting the McDonald brothers' original store location in San
Bernardino, California, the founders and owners Keith J. Kramer and his wife's uncle
Matthew Burns, who had purchased the rights to two pieces of equipment called "Insta"
machines, opened their first restaurants. Their production model was based on one of the
machines they had acquired, an oven called the "Insta-Broiler". This strategy proved so
successful that they later required all of their franchises to use the device. After the
company faltered in 1959, it was purchased by its Miami, Florida franchisees, James
McLamore and David R. Edgerton. They initiated a corporate restructuring of the chain,
first renaming the company Burger King. They ran the company as an independent entity
for eight years before selling it to the Pillsbury Company in 1967.
Pillsbury management tried several times to restructure Burger King in the late 1970s and
early 1980s. The most prominent change came in 1978, when Burger King
hired McDonald's executive Donald N. Smith to help revamp the company. In a plan
called Operation Phoenix Smith restructured corporate business practices at all levels of
the company. Changes included updated franchise agreements a broader menu, and
new, standardized restaurant designs. Smith left Burger King for PepsiCo in 1980 shortly
before a system-wide decline in sales. Pillsbury Executive Vice President of Restaurant
Operations Norman E. Brinker was tasked with turning the brand around and
strengthening its position against its main rival, McDonald's. One of his initiatives was a
new advertising campaign featuring a series of attack ads against its major competitors.
This campaign started a competitive period between the top burger chains, known as
the Burger Wars. Brinker left Burger King in 1984, to take over Dallas-based gourmet
burger chain Chili's.
Smith and Brinker's efforts were initially effective, but, after their respective departures,
Pillsbury relaxed or discarded many of their changes and scaled back on construction of
new locations. These actions stalled corporate growth and sales declined again,
eventually resulting in a damaging fiscal slump for Burger King and Pillsbury. Poor
operation and ineffectual leadership continued to bog down the company for many years
Pillsbury was acquired by the British entertainment conglomerate Grand Metropolitan in
1989.
Initially, Grand Met attempted to bring the chain top profitability under newly minted CEO
Barry Gibbons, the changes he initiated during his two-year tenure were hit or miss.
Successful new product introductions and product tie-ins with the Walt Disney Company
were offset by continuing image problems and ineffectual advertising programs.
Additionally, Gibbons sold off several of the company's assets in attempt to profit from
their sale and terminated many staff members. After Gibbon's departure, a series of CEO
each tried to repair the brand by changing the menu, bringing in new ad agencies and
other changes.
The parental disregard of the Burger King brand continued through Grand Metropolitan's
merger with Guinness in 1997, when the two organizations formed the new holding
company Diageo. Eventually, the ongoing, systematic institutional neglect of the brand
through the string of owners damaged the company to the point where major franchises
were driven out of business and its total value was significantly decreased. Diageo
eventually decided to divest itself of the money-losing chain and put the company up for
sale in 2000.
The twenty-first century saw the company return to independence when it was purchased
from Diageo by a group of investment firms led by TPG Capital for US$1.5 billion in 2002.
The new owners rapidly moved to revitalize and reorganize the company, culminating
with the company being taken public in 2006 with a highly successful initial public offering.
The firms' strategy for turning the chain around included a new advertising agency and
new ad campaigns, a revamped menu strategy, a series of programs designed to revamp
individual stores, a new restaurant concept called the BK Whopper Bar, and a new design
format called 20/20. These changes successfully re-energized the company, leading to a
score of profitable quarters. Yet, despite the successes of the new owners, the effects of
the financial crisis of 20072010 weakened the company's financial outlooks while those
of its immediate competitor McDonald's grew. The falling value of Burger King eventually
led to TPG and its partners divesting their interest in the chain in a US$3.26 billion sale
to 3G Capital of Brazil. Analysts from financial firms UBS and Stifle Nicolaus agreed that
3G would have to invest heavily in the company to help reverse its fortunes. After the deal
was completed, the company's stock was removed from the New York Stock Exchange,
ending a four-year period as a public company. The delisting of its stock was designed to
help the company repair its fundamental business structures and continue working to
close the gap with McDonald's without having to worry about pleasing shareholders. In
the United States domestic market, the chain has fallen to third place in terms of same
store sales behind Ohio-based Wendy's. The decline is the result of 11 consecutive
quarters of same store sales decline.
Burger Kings Vision Statement:
Burger Kings vision statement is to be the most profitable QSR business, through a
strong franchise system and great people, serving the best burgers in the world. This
vision statement directs Burger King to achieve leadership in the global quick service
restaurant (QSR) industry or fast food industry. The vision statement has the following
main points regarding Burger Kings business:
1. Most profitable QSR business
2. Franchise system
3. Great people
4. Best burgers in the world
Burger Kings vision statement shows that the company aims to achieve the leading
position in the quick service (fast food) restaurant industry. At present, McDonalds holds
this top position. The vision statement also indicates that Burger King uses a franchise
system to grow. Great people and the best burgers are offered to attract one of the biggest
market shares in the industry. Thus, Burger Kings vision statement establishes the nature
of the business and its direction toward global market leadership.

Burger Kings Mission Statement:

Burger Kings mission statement is to offer reasonably priced quality food, served quickly,
in attractive, clean surroundings. This mission statement indicates the kind of outputs
expectable from the organization. With regard to Burger Kings business, this mission
statement has the following main points:
1. Reasonable prices
2. Quality food
3. Quick service
4. Attractive, clean surroundings
To achieve the top position stated in its vision statement, Burger King must follow the
points in its mission statement. The mission statement shows that the company uses
market-based pricing to entice customers. However, Burger Kings main selling point is
the quality of its food and service. The surroundings add to the ambiance that keeps
customers coming back to Burger King Restaurants. These characteristics are mostly
consistent in all of the companys restaurants around the world. Thus, Burger Kings
mission statement establishes the basics for pricing, quality, and facility design for the
business.
Introduction of Burger King Pakistan:
Burger King started its operations recently in Pakistan, in 2014, and has had great
success straight away. Within a short span of time, Burger King has branches all over
Pakistan, covering every major urban center in the country. It has outlets in Karachi (the
city of lights and economic hub of Pakistan) Lahore (the heart of Pakistan), Islamabad
(the highly modern and beautiful state capital) and many other cities. Burger King
Pakistan serves completely halal food and is already a market leader in the local food
industry. Its popularity and customer base continues to increase and is giving tough time
to other local and International market players. Burger King Pakistan along with its core
world famous menu has also introduced some innovative products specially designed for
Pakistan. The quality, taste and service are all as per Burger Kings international
standards.

Production:
Burger buns:
Burger king is having their own bread production unit they collect the wheat and other
ingredients which are needed for the production of burger buns from the farmers which
they hire on contract. After that the ingredients are mixed with right quantity and after that
they put it in the baking unit.
Meat production:
Berger king have its own cattle farms for meeting the required need of beef for their
burgers. The burger king also keeping care of Halal meat for Muslims for this purpose
they have trained their butchers or hire Muslim butchers for the slaughtering because they
have to expend there business in to Muslim countries also

Product line:
When the predecessor of international fast food restaurant chain Burger King (BK) first
opened in 1953, its menu predominantly consisted of hamburgers, French fries, soft
drinks, milkshakes, and desserts. After being acquired by its Miami, Florida franchisees
and renamed in 1954, BK began expanding its menu by adding the Whopper. The
company did not add another permanent hamburger to its menu until the introduction of
the Big King sandwich in 1996 in response to McDonald's Big Mac sandwich.
The products of burger king are
Whopper:
The Whopper sandwich is the signature hamburger product sold by the
international fast-food restaurant chain Burger King and its Australian franchise Hungry
Jack's. Introduced in 1957, it has undergone several reformulations including re-sizing
and bread changes. The burger is one of the best known products in the fast food industry;
it is so well known that Burger King bills itself as the Home of the Whopper in
its advertising and signage. Additionally, the company uses the name in its high-end
concept, the BK Whopper Bar. Due to its place in the marketplace, the Whopper has
prompted Burger King's competitors, mainly McDonald's with at least six different
products and Wendy's with its Big Classic, to try to develop similar products designed to
compete with it.

Big King:
The Big King sandwich is one of the major hamburger products sold by the
international fast-food restaurant chain Burger King, and has been part of its menu for
more than twenty years. During its testing phase in 1996-1997, it was originally called
the Double Supreme and was configured similarly to the McDonald's Big Macincluding
a three piece roll.[16] It was later reformulated as a more standard double burger during
the latter part of product testing in 1997. It was given its current name when the product
was formally introduced in September 1997, but maintained the more conventional double
cheeseburger format. Its introduction capped a period of sales success for Burger King,
where the company successfully took on its rival McDonald's. The product was
renamed King Supreme in 2001 when it was slightly reformulated as part of a menu
restructuring during a period of corporate decline for the company in which its corporate
parent, Diageo, was trying to sell the company. When a TPG Capital-led team of investors
took over the company in 2002, the new management team again restructured the menu,
eliminating the King Supreme in favor of its new BK Stacker line of sandwiches. The
sandwiches were part of a line of controversial sandwiches high in fat and calories which
several groups protested. A limited time offering (LTO) sandwich line known as BK
Toppers accompanied the Stacker line briefly in 2012, including one sandwich known as
the Deluxe topper a virtual clone of the Big King in its formulation. The Stacker and
Topper lines were discontinued in United States shortly after, and the Big King returned
to said market in November 2013 as a permanent product after the company was again
sold, this time to 3G Capital of Brazil.
Premium burgers:
As far back as the 1970s, international fast food restaurant chain Burger King has
attempted to introduce a premium line of burgers. These sandwiches are part of a system
which eventually became known as the barbell strategy.

BK Stackers:
The BK Stacker sandwiches were a family of hamburgers featuring the same
toppings that targets the late-teentoyoung-adult and male-oriented demographic
groups. It is a cheeseburger consisting of anywhere from one to four 1.7 oz
(48 g) grilled beef patties, American cheese, bacon and Stacker sauce served on
a sesame seed bun.
Grilled chicken sandwiches:
International fast-food restaurant chain Burger King and its Australian
franchise Hungry Jack's have introduced a variety of grilled chicken sandwiches to its
products portfolio since 1990. The BK Broiler was the first iteration, and was one of the
most successful product introductions in the fast food industry to that point in time.

Fish Sandwiches:
International fast-food restaurant chain Burger King and its Australian
franchise Hungry Jack's have had a variety of fish sandwiches in their product portfolio
since 1975.
Other products are
BK Chicken Fries Chicken nuggets
Turkey burger Chicken burger
Crispy Chicken Jr BK Veggie
Spicy bean burger Mac n' Cheetos

Promotion & advertisement of BK:

Burger king is the first food chain company which have started TV ads. Burger King
introduced the first attack ad in the fast food industry with a pre-teen Sarah Michelle
Gellar in 1981. The television spot, which claimed BK burgers were larger and better
tasting than competitor McDonald's.
Promoting movies:
Burger King was a pioneer in the advertising practice known as the "product tie-
in", with a successful partnership with George Lucas' Lucas film, Ltd., to promote the 1977
film Star Wars in which BK sold a set of glasses featuring the main characters from the
movie. This promotion was one of the first in the fast food industry and set the pattern
that continues to the present. BK's early success in the field was overshadowed by a
1982 deal between McDonald's and the Walt Disney Company to promote Disney's
animated films beginning in the mid-1980s and running through the early 1990s. In 1994,
Disney switched from McDonald's to Burger King, signing a 10-movie promotional
contract which would include such top 10 films as Aladdin (1992), Beauty and the
Beast (1991), The Lion King (1994), and Toy Story(1995). A partnership in association
with the Pokmon franchise at the height of its popularity in 1999 was tremendously
successful for the company, with many locations rapidly selling out of the toys and the
replacements.

Celebrity endorsement by burger king:

Burger king has also use the technique of celebrity endorsement they have hired
almost celebrity from every field from sports to showbiz.
 The celebrity which are involved are

Nick Van Eede:

Nick Van Eede is an English musician, producer, and songwriter. He is best known for
singing and writing the 1986 U.S. #1 power ballad hit " Died in Your Arms" for his band
Cutting Crew.

Mary J. Blige:
Mary Jane Blige is an American singer, songwriter, model, record producer and actress.
Starting her career as a background singer on Uptown Records in 1989.

David Beckham:
David Robert Joseph Beckham, OBE is an English former professional footballer. He
played for Manchester United.

Tony Stewart:
"Tony" Stewart is an American professional stock car racing driver and NASCAR team
owner. He is a three-time Sprint Cup Series champion as a driver.

CSR:
Burger King has two of its own in-house national charitable organizations and programs.
One is the Have It Your Way Foundation, a US-based non-profit corporation with multiple
focuses on hunger alleviation, disease prevention and community education through
scholarship programs at colleges in the US. The other charitable organization is the
McLamore Foundation, also a non-profit, corporation that provides scholarships to
students in the US and its territories.
In various regions across the United States, Burger King and its franchises have aligned
themselves with several charitable organizations that support research and treatment of
juvenile cancer. Each year, these coalitions hold a fund raising drive called "A Chance for
Kids", in which Burger King Restaurants sell lottery-style scratch cards for $1. Each card
produces a winning prize that is usually a food or beverage product, but includes items
such as shopping sprees or trips. In the Northeast, BK has affiliated itself with the Major
League Baseball team the Boston Red Sox and its charitable foundation, the Jimmy
Fund. The group runs the contest in Boston. In the New York City area, it operates the
contest in association with the Burger King Children's Charities of Metro New York and
the New York Yankees. Funds raised in these areas go to support the Dana-Farber
Cancer Institute, located in Boston. In Nebraska, the company is affiliated with the Liz's
Legacy Cancer Fund "BK Beat Cancer for Kids" program at the UNMC Eppley Cancer
Center at the University of Nebraska Medical Center in Omaha. In the Pittsburgh region,
it funded the establishment of the Burger King Cancer Caring Center, a support
organization for the families and friends of cancer patients.

Profits of burger king:

Every day, more than 11 million guests visit BURGER KING restaurants around the
world. And they do so because our restaurants are known for serving high-quality, great-
tasting, and affordable food

Billion $
3

2.5

1.5

0.5

0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Billion $

Decline of burger king:

Burger King have been continuously facing decline and troubles after some time
till now.
1980s:
Smith left Burger King in June 1980 to try to introduce the same kind of fast-food
management techniques at Pizza Hut. By following in Smiths general direction, Burger
King reached its number-two position within two years of his departure, but frequent
changes at the top for the next several years meant inconsistent management for the
company. Which led company into a huge loss and decline in the sales.

Problems Declined Sale: 1999 and Beyond

The Pokmon ball:
Burger Kings success however, proved to be short-lived. In 1999, the company was
forced to recall a promotional toy, the Pokmon ball, after it was discovered to be
potentially dangerous for children. A class-action suit followed, claiming the company
acted in a negligent fashion when it distributed the toy in its kids meals. Due to this the
consumer thought that the going at the BK is harm full for their children so they stopped
going to BK restaurants. Which cost them low sales.

2013-2015:
Due to inconsistency of top management burger king again faced decline in 2013,
2014&2015. It was the point where there was the record decline of the revenue of burger
king which was just because of the continuous change in the policies and structure of
company. It affect the behavior of consumers in a way they lost their trust on BK. Another
reason is that the BK is not providing fresh food which affected the behavior of the
consumers in a way that they switch to the competitors.

Recent issues BK is facing:

Horse meat scandal:
The 2013 horse meat scandal was a scandal in Europe; foods advertised as
containing beef were found to contain undeclared or improperly declared horse meat
as much as 100% of the meat content in some cases. A smaller number of products also
contained other undeclared meats, such as pork. The issue came to light on 15 January
2013, when it was reported that horse DNA had been discovered in frozen beef
burgers sold in several Irish and British supermarkets. Horse meat is not harmful to health
and is eaten in many countries.
The analysis stated that 23 out of 27 samples of beef burgers also contained pig DNA;
pork is a taboo food in the Muslim and Jewish communities.
While the presence of undeclared meat was not a health issue, the scandal revealed a
major breakdown in the traceability of the food supply chain, and the risk that harmful
ingredients could have been included as well. Sports horses, for example, could have
entered the food supply chain, and with them the veterinary drug phenylbutazone which
is banned in food animals. The scandal has since spread to 13 other European countries,
and European authorities have decided to find an EU-wide solution. They initiated meat
testing of about 4,000 horse meat samples for the veterinary drug. The European
Union (EU) Recommendation on Labelling the Origin of Processed Meat will be published
in due course. On this many consumers have stopped taking burger king products.
Competitors food quality:
According to a research conducted in the upper, middle upper and middle class of local
area by the opening of the best rival of BK the consumers moved to them. According to
consumers BK is not providing fresh food and good quality in the comparison of the
competitors. In result consumer left using the product of BK.

Suggestions:
BK should bring the consistency in the management, policies and structure so the
consumer could know what the policies of company are so they can trust on it.
The BK should clearly define the source of the meat so they can avoid
investigations they should show transparency of meat collection so the trust of
consumers can be regained.
BK should open its kitchen for consumer so they can visit the kitchen and they can
see that how the food is being prepared for them and its fresh or not.
 Conclusion

Although BK is world know 2nd largest fast food chain restaurant but due to
its internal problems and inconsistency in top management BK is facing lots
of troubles. It should bring consistency in management and policies so they
can move on one track. It should not promote the things which can be harm
full for consumers and BK name. The BK should make sure that they would
provide the best quality and fresh food than its competitors. By applying
these things BK can regain the position and the trust of consumers they have
lost since 2013.
 Question of case study
q.no.1
What is the cause of the decline of BK in every era?
Ans.
Burger King have been continuously facing decline and troubles after some time till now.
Smith left Burger King in June 1980 to try to introduce the same kind of fast-food
management techniques at Pizza Hut. By following in Smiths general direction, Burger
King reached its number-two position within two years of his departure, but frequent
changes at the top for the next several years meant inconsistent management for the
company. Which led company into a huge loss and decline in the sales. The scenario is
not been changed yet. BK top management policies and system is still inconsistent. Due
to internal conflicts and controversies BK is not been able to stick with any police or
management of a long time this is the cause of decline of BK in every era.

q.no.2
Why the revenue of BK is too low since 2013 to now?
Ans.
The 2013 horse meat scandal was a scandal in Europe; foods advertised as
containing beef were found to contain undeclared or improperly declared horse meat
as much as 100% of the meat content in some cases. A smaller number of products also
contained other undeclared meats, such as pork. The issue came to light on 15 January
2013, when it was reported that horse DNA had been discovered in frozen beef
burgers sold in several Irish and British supermarkets. Horse meat is not harmful to health
and is eaten in many countries. This is the one of the reasons due to which the costumers
trust on BK is been decline so much and they have stopped purchasing BKs beef
products. According to a research conducted in the upper, middle upper and middle class
of local area by the opening of the best rival of BK the consumers moved to them.
According to consumers BK is not providing fresh food and good quality in the comparison
of the competitors. In result consumer left using the product of BK. Because of these
issues the revenue of BK has decline mover ten ever from 2013.

q.no.3
What should BK do to regain the trust of its costumers?
Ans.
Although BK is world know 2nd largest fast food chain restaurant but due to its internal
problems and inconsistency in top management BK is facing lots of troubles. It should
bring consistency in management and policies so they can move on one track. It should
not promote the things which can be harm full for consumers and BK name. The BK
should make sure that they would provide the best quality and fresh food than its
competitors. By applying these things BK can regain the position and the trust of
consumers they have lost since 2013.