Burger King Company Business Plan

Burger pansy Comp either Business Plan executive director summaryThis concern possibility is brinyly de subscribe for schedulemening more or less the claim of Burger tabby connection piece this company has been liberty from 1980 in UK and the franchise of this company brings the success in legion(predicate) times. Burger poof considers franchise is cardinal of the predominant paths of doing employment. At point, the Burger magnate franchise is whiz of the greatest regimen ladder retailers which fuck off 25,000 restaurants fit(p) in to a greater extent than 80 countries. For franchise of Burger baron I office as to find the mess where nearby exists any franchise of Burger world-beater. By franchise this I book advantage of location beca utilisation initi al legalityy I sustain to invest from my ensure risk.Burger queen mole rat never provides the m anetary support for franchise and fund mustiness be gained from the non-borrowed personal source . And the statistical figure might be practise up to somewhat $2, 50,000.The key objectives of victorious the plan of Burge poove franchise to achieve goodability. Because the brand image of Burge powerfulness is already existed in clientele and it is much recognized. So, I apprise expand the market easily and profit seat be achieved.Business opportunity in that location is the opportunity to engage ingest individual or more than one inject. For this reason, I recognize the set up for establish the franchise of Burge queen at 68A, Hillingdon Garden,Northwood near Northwood verdancy Lane W-bound bus stop, any branch of Burger faggot is non placed in Northwood bea. Not only this, in that location is the potentiality of large nodes and highest advantageousness because the point of intersection or carte of Burge female monarch is already recognized to the entirely world.BenefitsFor Burger power, at that place is no need to think closely raw(a) carte d u jour and the grooming employees ar already extremely efficient and utilise with each(prenominal) tasks. In Burger great power franchise, risk is reduced to set up my get task where division of labour and turnover intensity of fixed menu grants for appropriate economies of scale.an diverse(prenominal) benefit is that any fresh products be no need to develop and dont require to conduct any kinds of market digest. And overly no need to think astir(predicate) brand name or image.CostsThe franchise scathe of Burger powerfulness might be 2,60,000 where I put one crosswise to provide 30% of the worth which is considered as unencumbered pay and the rest 70% give be sedate from the bank as a loan in order to favourable funding terms.An opposite address is one-off franchise fee of 25,000 and franchiser tuition program fee is 5, 000 which is returned later finishing the readiness program.Miscellaneous costRent which pass on be nonrecreational monthly on premises r elated to lucrativeness and gross revenue will 12%.A fee will be paid for use of the Burger major power 5% of sales.National marketing expenses contri just nowion 4.5% of sales.ReturnsIn a year, a cash f beginning will be make where the cash inflow and outflow will about 75, 000 to 1,00,000 per year. exactly this relation will not certain because it will be made before debt repayment. The return can be more. The return on investment will currently about 10% which shows the profitability rate of this argumentation.Implementation planPaid initial franchise fee 12th March 2010Franchiser provision program 14th March 2010 ( sop up)Go down payment to Mc Donald 18th March, 2010.Service providing will be started from 1st April, 2010.Literature refreshenThe report is mainly done on the s purport plan of Burger fagot Franchise. I intromit the cables length plan of franchise of Burger fagot, because of several reasons. Todays channel world are genuinely much competitive and its become tougher and tougher for triple-crown in the problem market. If a person want to start his lineage as an entrepreneur it may be impossible to become advantageous in the line of credit market. Because establishing the new business or enter the market as a new, it is quite impossible to set up his business or become successful. But if we pick up the plan of establishing the business as a franchiser because it will be easy to achieve profitability in our business. In franchise business, a recognized brand is already existed and all things are readymade in before. Just sp finis many capital to buy it and start the business.Franchising can be defined as the bore of using some other companys brand image and their successful business model. with this kind of business, we can avoid investment and liability over a chain. The key parts of adopting franchise the business are that we can get the business with a good track record of profitability and that business is easi ly imitated.Here, for making business plan, I adopt the Burger King Franchise because I want to be my own boss in my business, can trade a well established and high quality of product, invariable support, benefits from bailiwick marketing carried out by Burger King and they receive excess to business forecast information. The best example of franchising is the brand franchising of Burger King. Burger King allows peoples to establish their own business as Burger King Franchiser and grant the rights to set up their business. below the Burger King franchise, the franchisee purchases the equipments, fittings and the permission to arc the franchise for 10 long time. All franchisees of Burger King Use exemplarized branding, menus, design layouts and administrative systems of Burger King. The Burger King franchisees as well use the same standards and operating methods or manufacturing and maintain the quality of the menu of items.When fling menu items, the strategic thing is to reap pendage to customers is that they put one over a option. They have a huge come in of options of spending their funds and places to spend it. However, Burger King places considerable importance on developing a menu which customers want. grocery store research establishes exactly what this is. However, customers demands interchange time to time. What is fashionable and attractive straight off may be chuck out tomorrow. merchandising continuously supervises customers preferences.Therefore, Care is not only taken to affect adversely the sales of one choice by introducing a new choice, which will cannibalise sales from the sr. one (trade off). Burger Kings knows that items on its menu will vary in familiarity. follow with of marketing down the stairstaken and the resources invested will be different depending on the stage a product as reached. For example, a new product launch will typically relate to television and other advertising support. In any time a company will have a products portfolio, where each in a different stage of its cycle. virtually of Burger Kings options are growth in popularity while arguably the Big Mac is at the maturity date stage.Information about marketBurger King is recognized as the one of the best known brands around the whole world. Branding is the term which hypothecate an image of an brass, service or product. The image of the brand rivetes on the customers view on the organization. Brand image is mainly used while an organization shows their loyalty towards their customer through their products or services. A brand can be recognized by marketing communication methods such as promotion and advertising which is used for developing the designs, colours and images. Similarly, Burger King is popular by its most familiar logo. The brand image is a operative factor for franchising. Because without strong brand image, it is impossible to become successful in franchising business.Burger King faces competition from other forms of businesses in all its market. In addition, at that place are some factors such as economic, legal and technological changes and hearty factors and many other ingredients may affect the success of Burger King. Burger King franchising marketing consists of identifying the needs and compulsions of customers and tries to meet theses demand in a part way than its competitors and by this the company can get loyal customers.Burger King has some competitors which are Mc Donald, KFC, Subway, Star Bucks etc. But among them Mc Donald is the main competitor. And in my new Burger King franchising place, these entire competitors branch are existed. If we focus on Burger King and Mc Donald wherefore we can see the starting line expiration between these two is that the Whopper and Big Mac. But two are concentrating on customer health and taste.Burger King creates the achievement place for children. From this sector, Burger Kind earns a get percentage of their profits. And it is see n that children are requested to their parents to take them to Burger King, while Mc Donald doesnt give any response to this. Another strategic difference between these two is adult advertising. Burger King mainly advertises their salads shows to trap the mothers who bring their kids in the sign of G gray-headed(a)en Arched restaurant where Burger King uses other promotional strategy that is the advertisement of Stacker Sandwich which is made with the mold of cheese and meats which is stacking up to four burgers high.Sub way provides 265 calories in its meal, while Burger King provides a gluttonous 375 calories. Burger King promotes the healthy side of foods by providing salad and water they are still promoting the Whooper, that doesnt really help the matter. On other go past, Subway promotes the fresh salad and 5 a day veg. Subway provides either sub with a cookie, crips and/ or drink. Where, Burger King provides Whooper, drink and a salad which in all probability is much heal thier than the chips.Burger King which is treated as a ready food company as well as gets competition from Star Bucks. Though Burger King has the strong marketing growth in fast food business, but the intention of doing competition against Star Bucks carries some risk. It can shown from the research analysis that Burger King has the slow down services where the Star Bucks serves the customer speedy services. But on the other hand, because of s deject marketing growth, Star Bucks inception has lost about half its value since last January.Chances of successIn case of Burger King franchising, I have to meet so many competitors like as Mc Donald, Starbucks, Sub way etc and may be there create tough competition in the fast food market. But as a Burger King franchisee, I can assert that there is the chance of huge success and can be got fairish returns from this business because Burger King is already market recognized brands and it also storied for its healthy foods which bring young people in the Burger King Franchise.Burger King Franchise business is one that can be beneficial for both(prenominal) franchisor and franchisee. So, while the Burger King Franchisor is benefited through the brand becoming more and more visible and gets franchise fees from the franchisee, the franchisee that is me, take advantage of working with recognized brand, on there chances of success will be more.Task 2 disgorge resourcesBurger King is mainly recognized for its delicious burgers. In annual, Burger King plan to continue expansion. It is considered as a more suitable place for franchising to own. For becoming successful in Burger King franchising, I have to take wish about franchising business requirement that is its required resources such as pecuniary resources, valet resources, business experience, ongoing fees, training, raw satisfyings, considerations, growth, and equipment etc. These resources are expound belowFinancial resourcesBurger King franchising headqua rters fixed the monetary franchise requirement which should be minimum 2,50,000 of non- borrowed personal resources. It is also said that since the cost of each restaurant does vary, the fee of franchise would also different, but the 3, 00,000 is a standard requirement. Among this requirement, 25% is coming from the franchisee and 75% is coming from bank loan. mankindkind resourcesBurger King often wants to recruit high go through people for connectedness its bandwagon. As a Burger King franchiser, I have huge business opportunities but for using these opportunities I need the high expertnessed and go through people who are the efficient on managing or owning business units, low level workers who have the experience of serve the customer and also transaction with the customer.Store equipmentIn case of Burger King franchising, there has to be signed an agreement for a period of twenty years. This agreements state that the ownership of the mental synthesis including the prope rty used such as kitchen equipments, seats, decorator, fittings are all own by Burger King and are taken on lease by the franchisee. So, there is no need to spend money on purchasing these equipments because these equipments are already provided by Burger King.Staff training and developmentAs a franchisee, I take new place where any Burger King Franchise not vivacious of Burger King which is placed on Northwood. So, there is need to train myself as a franchisee and for this purpose Burger King provides training to franchisee for being able to run the business efficiently. For becoming a franchisee, both franchisee has to complete a full time training program for which franchisee pays money to Burger King after completing the training program this money is refunded to franchisee. This program is lasting for nine months. It is very much authorized for a franchisee to start work with Burger King, wearing the staff uniform and learning all things from cooking and making food to serv ing customers and also learn alter.Training is held on regional training centre focuses on areas such as leaders skill, team building, business guidance and handling customer enquiries. The franchisees will have to recruit, train and motivate their work force, so they must learn the skill of human resource management. At the end of the training program, they learn about stock control and ordering, profit and loss accounts and the legal side of hiring, and recruiting staff. As a result, no franchisee of Burger King would have to ask a member of his or her staff to do something that they couldnt do themselves. Knowing this can also be powerful motivator of the staff.Burger King is not only providing the training to it franchisee, it shows that the success and profitability of Burger King mostly connected to the success of the franchisee. An experienced and high skill full professional consultant team turns continuous support on all things from human resources to accounting and IT business controls. These heavens consultants may become valued partners of business and are a sounding board for ideas.In case of Burger King franchising, I take the new franchise of Burger King and in accordance to Burger King franchising business, in live business there is no need to recruiting, selecting and hiring and train the employee. Because the old one store, there is already all staffs are recruited and trained. And these staffs are highly skill full for doing all types of restaurant jobs such as customer service, cleaning and managing the store also. Because, Burger King, whenever recruit staff on its store they at low gear give 3 or 4 days training to new recruited person so that he will be able to do his work effectively and efficiently and he doesnt face any worry in sensitive work that is servicing the customer.Cost of staff training and developmentI already mention that in case of old one store there is no need to recruit, hire, select and train the staff because on that store all things are available in readymade. Not only staff, equipment and store are also placed in right position. And there is the huge possibilities of achieving profit because the cost is only occurred from rent, service fee, franchisee training fee, contribution to national marketing spend. And franchisee training cost is 5,000 and it is also refundable.Sources of resourcesFinancial resourcesAn initial investment that is 40% of the total cost in case of a new restaurant 25% is needed to be paid to the company where rest of the money being paid in at least 7 years. In order to down payment, there also have to meet some particularation. Burger King franchising pecuniary resources are coming from non- borrowed and personal resources. It may be including of bonds, securities and debentures cash in hand real estate or business equity. In case of financing, Burger King doesnt provide any financial support though there is the possibility of getting the benefits of achieve l oans at lower rates. In the time of franchise, Burger King has to be paid monthly rent and service fees.Source of financial resourcesObtaining finance for a new business is very difficult kinda than obtaining funds for a franchising business. The key factors for easily getting funds for franchising business is previous track record of franchise business. Because brand and trademark is already established, therefore Burger King Franchise is considered a lower risk investment.Franchise Bank LoanA franchisee can get loan from commercial messageized bank where this type of bank offer loan to franchise business with lower defaulter rate. In fact, most of the franchising industries expand by taking loan from commercial bank at an average rate of 9 to 10 percent per year. Burger King franchising is also expanding by taking loan. Here, as a Burger King franchisee I also take the loan from commercial bank. If a potential franchisor has enough credit and seems to have the necessary skills to run the business, franchisors will usually helps with financing in any way that they can. Some franchisor may even pre-qualify potential franchisees in addition to helping them vomit up together their loan lotion packages. A good number of franchisors offer financial help to the franchisee either by financing all or part of the franchisee themselves or by helping them in locating another lender.Other financial resourcesI can also get financial help from limited partnership, taking loans from friends and family, and second mortgages on existing properties. In end, whatever means a franchisee motivates in financing their franchising, it is necessary to immortalise that they will need to pertain in making a exposit plan about a new business for showing to future lenders how the business will be run.Human resourceafter considering about financial resources, I have to think about human resources that are about hiring, selecting and training employees. Without employees, a busines s operation cant run. Here, Burger King offer a limited scope for employee advancement to the level of management which may attract a few motivated persons, most of our work force will be young, inexperienced and just learning about job responsibility. High employee turnover must be expected as employees graduate from high school or college or move on to other work. Good management techniques can make a difference in keeping longer term persuade staff and present continuously.Task 3Implementation of the projectBefore implanting my project that is Burger King franchising in Northwood, there should be describe about leadership and indigence that is how Burger King leads and motivate employees to do their jobs.Leading and motivating employees on Burger KingEmployees are considered as the most significant resources in Burger King. Basically, Burger King Company uses three different motivational techniques such as financial encouragement, non- financial encouragement and social policy. T hese three factors are mainly described in Maslows hierarchy theory. According to this theory, all kinds of needs must fulfill one after another. The strategy and structure of Burger King Company represents that only the co-occurrent fulfillment of employees need will be enhanced an employees achievement. In brief, for enhancing employees performance and companys productivity, Burger King uses effective motivational system. In order to present situation, Burger King Administration staff use situational approach. On the basis of motivation theories, Burger Kings administrators have used particular motivational techniques. Having using the procedure of assembly line in food preparation, Burger King has assures the standard of quality and high performance. Basically, managers of different stores use different leadership management technique. But in Burger King Store, every manager use their own management techniques, some managers are stiff and some are easy. And some use the both th e sturdy and soft techniques of management. In fact, there is the mixture of lay back (laissez- faire) and imperious styles leadership.Burger Kings has achieved the status of one of the most recognizable franchises across the globe through a mixture of successful marketing, consistent service and product, and strong leadership. Burger King mainly uses the goal oriented and task-focused leadership styles that still exists in the partnership today.Project practiceationList of activitiesAssess financial requirements.Meet the experience requirement as a franchisee.Fill up the franchise application form.Pay initial franchise fees and other fees.Make 20 years agreement with Mc Donald.Start the business.Strategic groupsFor becoming successful in Burger King franchising, there are some key factors which I have to consider. These key success factors are described belowPrice raft can get the facility of food started from breakfast to meal in the price sector. Whenever any person feeds his family to Burger King, he first thinks about its squalid price with delicious and healthy items. In case Burger King franchising, it should be considered by a franchisor about its competitive price advantage.QualityBurger King is one of the greatest food retailers that has reached new peaks at what can be achieved out of a global business market. The burger and French fries of Burger King are prepared to look, taste and smell very similar across the globe, despite all the variations in surroundingsal differences. And in Burger King franchising, standardisation of quality is also grave.LocationLocation is very important factor for set up the franchising the business. For selecting the location, any franchisor should have to consider its competitor, its marketing environment and consumer forms. For that reason, as a Burger King franchisee, I choose place of Northwood, where the store of any franchise is not established or running nearby, through marketing it can be going good.Ope ning hoursGenerally, stores inauguration hour is very necessary for set up a business. But it depends on different stores and different place. Numbers of Burger King franchisee stores are 34 and these stores have different opening time and end time. In my Burger King stores, the opening time is 8 am. I think this opening time is better because it is the right time of taking the breakfast and on that more customers can come to the restaurant.In case of considering strategic group, Burger King is now in group 2 i.e. the main market food retailers- compete on price, offer better ranges and better customer services.Selected marketing strategyThere are several strategies such asStrategy 1 all unnecessary attributes are removed, leading to lower costsStrategy 2 offer a range of products but change a lower price.Strategy 3 hybrid strategies combination of differentiation and price establish strategy.Strategy 4 the product must be differentiated in a significant way that buyers are prepare d to pay extra.Among these strategies, I take the strategy 3 that is hybrid strategy. This strategy is already used in my Burge King store and this strategy includesSuccessful use of price or differentiation strategy can lead to opportunities to develop other strategy.Superior cost advantage of Burger King, which generates profit that is invested in differentiation without destroying the cost advantage.Differentiation may lead to high sales volume, economies of scale, and lower cost. But in Burger King, differentiation leads to lower cost.Implementation of marketing strategy trade strategy is basically planned by considering the basis of competition and the standard of quality. Different marketers such as niche, leader and followers select and implement different strategies in different ways. As a market leader, Burger King may choose to consolidate their position in a number of ways to help them achieve competitive advantage. They mayExploit their master cost structure.Raise barri ers through marketing expenditure, blocking access to scattering channels.Buy competitors and close down their capacity.Among these ways, Burger King uses the first one that is exploiting their tiptop cost structure.Marketing mixProductWhen offering menu items, the important thing is to remember to customers is that they have a choice. They have a huge number of options of spending their money and places to spend it. However, Burger Kings places considerable importance on developing a menu which customers want. Market research establishes exactly what this is. However, customers demands change time to time. What is fashionable and attractive today may be discarded tomorrow. Marketing continuously monitors customers preferences. For meeting these changes, Burger King should introduced new products and phased out old ones, and will continue to do so.PriceValue of customers perception is an important factors of the price charged. What a product is worth customers draw the picture of product on their mind. A product is a physical item and it has mental connotations for the customer. There are some difficulties of using products low price as a marketing tool is that the customer may feel that a low price is symptom of compromised quality. It is very much important when decision making on the price to be fully aware of the brand and its integrityPromotionsIt includes marketing communication such as advertising which is conducted on TV, radio, in cinema, online, using poster sites and in the press. Other promotional sectors are sales promotions, point of sale display, merchandising, direct mail, telemarketing, exhibitions, seminars, loyalty schemes, door drops, demonstrations, etc. Marketing communications skill is to develop a campaign which applies several of these methods in a way that provides the most effective results.PlaceThe most important element of the marketing mix i.e. price is not just about the physical location or distribution points for products. Price gives emphasis on the management of a range of processes voluminous in bringing products to the end consumer.Monitoring controllingMajority of the chain of franchising are controlling under both the outlet of company- owned and franchised. In previous, a manager was ran the business and in return he got the salary when the chain is the remainder of the profit. After the time change, franchisee keeps the profit after paying the applicable fees to the chain. Thus, when product is decentralized, then franchisee give incentives as a high amount which are very much significant for a large organization.As a franchisee, I have to monitor my franchise business because whether it is new or existing one business, every business should monitor by its owner, whether it is run in good order or not, whether it gains profit or not, or whether it can satisfy the customer expectation or not. There also has the reason for monitoring the business. much(prenominal) as I have to see whether my business is going accord to my plan or not also have to detect and defend appropriately to deviations and changes to plans.As an owner of Burger King franchising, I have to monitor only its quality and its money. Because, other significant things such as human resources, machines, materials, space, time, task etc. after monitoring these things, the output such as progress, costs, job starts, completion, engineering or design changes and variance order also have to monitor. But in case of Burger King franchising, there is no need to monitoring the human resources or machines or materials these things. Because, in case of existing store franchising, there all ready all resources and material are ready. For my franchising business, I can visit the store from my head office on logically basis that means on the basis of specific reason.Monitoring techniqueThere are several techniques through which I can monitor and control the franchising business and these techniques areThrough meetin gs with clients, parties involved in project (contractor, supplier etc.)For schedule -update CPA, PERT charts, update Gantt chart.victimization earned value analysis.Calculate critical ratios.Milestones.Tests and inspections.Delivery or staggered preservation etc.Among these techniques, for my franchising business, meetings arrangement is the best because through meetings I can act with contractors and suppliers and can also monitor and control my business as a Burger King franchisor.ConclusionThis report is made for the purpose of developing a business plan for fulfilling the requirement of Management Research- Project Presentation assignment. The business plans, which is mentioned and on which basis whole assignment are made, is franchising of Burger King. Specially, I take the business plan of Burger King franchising because I have the interest on this that is how a franchising business can achieve profit or from where its resources collected and how this business implemented. About these things, I add on my report i.e. as a Burger King franchisor, how can I start the business, what should be my requirement criteria, what is staff training and its cost and how can I collect my human and financial resources. And the end on the report, I include implementation process, then the marketing strategy of my business and the last, how can I monitor and control my business and what techniques I can use. The whole report is made as a business report. A full list of references is included at the end of the report.Referencehttp//franchises.about.com/od/financing/a/ease-financing.htmhttp//www.mcdonalds.com/countries/ireland/ireland_franchise/requirements.htmlhttp//ezinearticles.com/?Thinking-About-Starting-a-McDonalds-Franchise?id=2935173http//www.articlealley.com/article_139666_50.htmlhttp//ivythesis.typepad.com/term_paper_topics/2009/01/mcdonalds-trying-to-sustain-their-market-leadership.htmlhttp//books.google.co.uk/books?id=7ctnVNMtBQgCpg=PA179lpg=PA179dq=leadersh ip+styles+in+mcdonaldssource=blots=tYrvB7kzjrsig=NCLupDugA2IFJwo7MeMQ0BsTtTMhl=enei=ZaqZS_XqF5Dw0gSKu-H6Cwsa=Xoi=book_resultct=resultresnum=8ved=0CB8Q6AEwBwv=onepageq=f=falsehttp//www.ehow.com/how_2078345_buy-mcdonalds-franchise.htmlhttp//www.stanford.edu/group/siepr/cgi-bin/siepr/?q=system/files/shared/pubs/written document/pdf/06-22.pdf