Burger King Company

Burger King Company

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). Thus, the burger king business operating 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 rising 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 or erased to reduce operational costs and initiate demand in the market.

Reduction; these shows the areas of Burger King Company that servicing and production 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 needs to implement and practice innovation. 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. In their operation, the Burger King Company minimize their risks of planning by creating action plans, initiating demand, observing costs and initiating easy ways of combating adoption obstacles.

Scenario analysis for Burger King Company

Scenario analysis depicts an analytical process that prioritizes on likely future occurrences by looking at likely outcomes (Jenkins, 2015). It’s a form of future projection and tries to bring out a broader perspective of a situation. It does this by bringing out different alternatives about an outcome. It also shows the pathways that lead to the outcome. About Burger King, the outcomes may relate to cost reduction, product and service differentiation and widening of their operational base in the industry. Burger king company should not place priority or create any basis on historical events but rather form roots on future events. The outcomes may be positive, negative or have higher or low probability of occurring.  For Burger King Company to enhance effectiveness and efficiency in its operation and has a positive future outcome, it needs to lay priority on the following processes:

Denoting the issue; Burger king company must begin by deciding on their objective. They need to prioritize on the time factor as this will be based on the company’s strategic plan. For instance, the company is in the business of selling buggers and other delicacies to its clients. The company’s stakeholders need the company to develop and expand in the future. Therefore, they need to look at various future events likely to occur in the future in their operations.

Collecting data; Burger king company needs to note the significant issues and risks likely to impact the company’s strategic plan. They need to lay priority on the problems of external environment likely to impact the company, that is, economic, political, technological and social-cultural issues. For instance, Burger King needs to look at the economic position. Will their products sell at both boom and recession? They also need to look at the sustainability of their products in the market. Will they be able to maintain their position in the industry? They also need to look at their personnel. Can they train and employ professional individuals for their consultations.

Differentiating likely occurrences from uncertainties; Burger King Company may have confidence and complete belief in their denotations. They may have certainty that various activities will be successful in a certain way. On critical analysis of the activities, Burger King Company needs to place the activities as their certainties and differentiate them from uncertainties. Uncertainties refer to activities likely to have no significance or issues stringent to dynamism. The uncertainties should be arranged from the most significant to the least significant. For instance, the company may have confidence on placing priority on training and employing that an ample amount of workforce could be realized. However, the company may have a fear of displacement in the industry by other companies due to lack of proper product sustainability in the market.

Scenario initiation; Burger king should begin by looking at the topmost uncertainty. They need to extract an averagely positive outcome and averagely negative outcome and initiate a basis of the future on each that bonds with the chosen outcome. They need to do this for the second uncertainty and should avoid analyzing many scenarios at this point. For instance, burger king may decide to create a basis for the following scenarios. If everything goes well, here, the economic situation may be steady over a certain period will little inconsistencies. The company will move into market leadership. In the case of a slowdown in the economy, the product price may force the economy into recession at the end of the period. Where product differentiation occurs, some clients may choose to conflict with the differentiation until the economy recovers.

Implementing the scenarios in strategic planning; The Company should use the scenarios in initiating strategic plans for the company.  Burger king company having analyzed the scenarios knows the risks in a certain period of operation. 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’s stakeholders need to revise their action plans regularly about the possible risks (Sadgrove, 2016). The company needs to prioritize on a strategic risk assessment which is a continuous process of looking at the most likely risks facing a company. Management should be critically involved in the risk assessment to come to a common agreement on the risks facing Burger King Company. The company’s board should thus follow the following risk management process to ensure effectiveness in operation:

Understanding risk management strategies of 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 generates a framework for their operation.

Gathering information on strategic risks; 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 and data analysis, that is, financial information and presentations from the investors. The company needs to involve both the internal and external auditors in the process to weigh their view on the possible risks.

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

Initiating a strategic risk management strategy; Burger king company needs to generate an operational strategy to enable them in evaluating perils and managing actions related to the observed strategic perils. This process will thus aid the company manage and evaluate the major risk its likely to face.

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 aid it to create a common understanding on the perils likely to be faced and the best modes of management. Personnel will thus get a better understanding of the risks and their magnitude. It will thus enlighten on the roles they need to play in risk management. This will thus enhance performance and level of integrity in Burger King Company.

Implementing the action plans; Burger King needs to put into action the strategies generated to curb the probable risks. They need to observe regular review as risk continuously changes in the company. This will involve continued 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 have the probable, likely future outcomes. For proper operation, a proper strategy in risk management needs to be carried out. This can be achieved through coordination from all levels of management. This will, in the long run, 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.

Work 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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