Burger King Company Scenario Analysis

Burger King Company Scenario Analysis

The blue ocean strategy for a business denotes creation of demand making rivalry among competitors and competition itself insignificant, unlike the red ocean strategy where the competition is stiff for supremacy (Kim, 2014, p.56). Thus, the Burger King business using the blue ocean strategy has to implement critical notions in its operation. These include innovating value (achieved by differentiating its products and lowering its cost of production). The business also observes four critical elements that help it avoid trade-off involving differentiating its products and significant reduction of its operational costs. The four elements include:

Raising critical factors: this shows the objects that need improving within Burger King business about their burgers and other delicacies, their prices and the standards of their services.

Exclude costly operations: these shows the branches of Burger King Company that need to be excluded to reduce operational costs and initiate demand in the market.

Reduction: these shows the areas of Burger King Company that are not important but are significant for the organization. For instance, the expense of producing a certain element needed in making burgers or servicing can be minimized instead of complete elimination.

Creation of new products: these shows the areas the company that need to implement and practice innovation. The Burger King achieves this by innovating on its burgers and other delicacies or by differentiating their services from other companies. This enables them to have their position in the industry.

Scenario analysis for Burger King Company

Scenario analysis depicts an analytical process that prioritizes on likely future occurrences by looking at probable outcomes (Jenkins, 2015, p.34). It’s a form of future projection which tries to bring out a broader perspective of a situation. For the Burger King, the outcomes may relate to cost reduction, product and service differentiation and widening of their operational base in the industry. The company needs to prioritize the following processes to enhance efficiency in its operation and positive future outcome using the below described steps.

Denoting the issue: the company must begin by deciding on their objective. They need to prioritize the time factor as this will be based on the company’s strategic plan. Therefore, they need to look at various future events likely to occur in the future in their operations.

Collecting data: the Burger King needs to prioritize the problems of external environment that are likely to impact the company, that is, economic, political, technological and socio-cultural issues. For instance, the Burger King needs to look at the economic position. Will their products sell at both economic boom and recession? They also need to consider the sustainability of their products in the market. Will they be able to maintain their position in the industry? Furthermore, their personnel should be also taken into account. Can they train and employ professional individuals for their consultations?

Differentiating likely occurrences from uncertainties: the Burger King Company may have confidence and complete belief in their denotation and it may have certainty that various activities will be successful. Uncertainties refer to activities likely to have no consequences or issues stringent to dynamism. The uncertainties should be arranged from the most to the least significant.

Scenario Initiation

The Burger King should begin by looking at the topmost uncertainty. They should extract an averagely positive and negative outcome to initiate the planning for both of them. They need to avoid analyzing many scenarios at this point. For instance, they may decide to create a basis for the below scenarios. If everything goes well, the economic situation may be steady over a certain period will little inconsistencies, so the company will move into market leadership. In case of a slowdown in the economy, the product price may force the economy into recession at the end of the period.

Implementing the Scenarios in Strategic Planning

The company should use the scenarios in initiating strategic plans.  The Burger King knows the risks in a certain period of operation having analyzed the scenarios. The company needs to look at the operations of other companies entering the market and if the new entrants pose a threat to their operation.

Burger Kings Strategic Risk Management

Strategic risk management is one of the most significant factors to be considered in operation. The company needs to prioritize it, as it is a continuous process of examining the most expected challenges for the company. The company’s stakeholders need to revise their action plans regularly with the same goal (Sadgrove 2016, p.215). The company’s board should thus follow the following risk management process to ensure effectiveness in operation:

Understanding Risk Management Strategies of the Burger King Company

The company’s board needs to understand the organization’s key action plans and objectives.  The assessment needs to place priority on the strategies as it enables generation of probable perils. It also generates a basis for bringing together risk management and organizational strategy. This step aims to aid Burger King Management generating a framework for their operation.

Gathering Information on Strategic Risks

The Burger King needs to pick data and views involving the company’s strategic risks. This can be achieved by interviewing the senior executives, managers and directors, data analysis, that is, financial information and presentations from the investors. The company needs to involve both internal and external auditors in the process to weigh their view on the possible risks.

Profile and Validate the Strategic Risks

The company should analyze the data gathered in the previous steps and generate an efficient risk profile. The details should be based on the company’s culture and outline the major perils, their rating and magnitude. Sufficient agreement between the management needs to be carried out to eliminate a conflict of interests.

Initiating a Strategic Risk Management Strategy

The Burger King company needs to generate an operational strategy to enabling them to evaluate perils and manage actions related to them. This process will thus aid the company manage and assess the major predicted risk.

Communication of the Strategic Risk Management Strategy

The company’s management needs to communicate all the top risks and the generated action plans across all levels to create a common understanding of the possible perils and the best modes of management. Personnel will thus get a better overview of the risks and their magnitude. It will enlighten the roles they need to play in risk management. In turn, this will enhance performance and level of integrity in the company.

Implementing the Action Plans

The Burger King needs to put into action the strategies generated to curb the probable risks. They require regular review as risks continuously change. This will involve constant customization of the organizational framework, management, and control to ensure the success of the whole process.


In case the company carries out the situation analysis, it will achieve desired future outcomes. For proper operation, a correct strategy in risk management needs to be implemented. This can be accomplished through coordination of all the levels of management. In the long run, this will reduce the risks associated with production, cost, and operation in the industry. It will help the company survive in the unpredictable economy and manage its operation by safeguarding its resources.

Works cited

Jenkins, W., and Williamson, D. (2015). Strategic management and business analysis. Routledge.

Kim, W.C., and Mauborgne, R.A. (2014). Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard Business Review Press.

Sadgrove, K. (2016). The complete guide to business risk management. Routledge.


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