1.

0 INTRODUCTION AND COMPANY VIEW

Burger King also known as BK (see Diagram 1 in Appendix for logo of Burger King), is the
second largest fast food restaurant around the world behind McDonald's with more than $2
billion in annual revenue. BK is founded by David Edgerton and James McLamore in Miami in
1954[CITATION DON18 \l 1033 ]. The company has over 18 838 restaurants in 97 different
countries globally in 2019 [ CITATION Smi20 \l 1033 ]. In 1997, the first BK restaurant in Malaysia
is at Sungai Buloh Overhead Bridge [ CITATION Bur16 \l 1033 ]. Vision of BK is to be the most
profitable quick service restaurant business through strong franchise system and great people
serve the best burgers in the world [ CITATION Ama18 \l 1033 ]. They serve products like Whopper
sandwich, chicken tenders, salads, desserts and so on. Their commitment to signature recipes,
premium ingredients and friendly dining experiences which defined the brand for more than 60
years sucessfully [ CITATION Bur16 \l 1033 ].

2.0 MACROENVIRONMENT

2.1 DEMOGRPAHIC

BK determine different variables of their customers such as age, gender, race, income, lifestyle
and geographic region [ CITATION Mic19 \l 1033 ] . As age and gender factor, the target market of
BK initially is youth, but they realized it is a narrow target market, so now they also approached
each age group and gender which include children, women and youth majorly via advertising
and campaigns. Thus, BK offers special kiddy menu and for teenager and women will focus on
chicken burgers, sandwiches and salads [ CITATION kasnd \l 1033 ]. As income factor, BK target
middle and upper middle-class customers. BK offers a long list BK Value Menu for people
easily satisfy their appetite with filling and inexpensive menu items [ CITATION Ama13 \l 1033 ].
As lifestyle factor, the service and atmosphere of BK restaurant attract people to visit and relax.
They aim family that enjoy meal together, so BK started “HAVE IT YOUR WAY” marketing
campaign to encourage customers to customize the ingredients of all BK® sandwiches to fit the
family members’ need [ CITATION Ahm16 \l 1033 ] . People who busy to work and have no enough
time to cook can buy BK's products conveniently via drive-thru service [ CITATION UKE18 \l
1033 ]. As geographic factor, BK opens many restaurants to serve every customer worldwide.
According to the Star news on 28 January 2020, Ng Lee Tieng, BK Malaysia’s CEO aims to
open 50 outlets nationwide in next 2 years [ CITATION The20 \l 1033 ].

2.2 ECONOMIC

When economy recession, BK forced to cut down costs and lay off employees. People lost their
jobs and buying power reduced greatly, so BK offer products at fair price to deal with buying
power of customers[ CITATION Kat10 \l 1033 ] . For example, economic growth of Malaysia expect
to decrease to 3.7% this year because of the pandemic, Covid-19 (Nur Hanani Azman, 2020).
The stock price of Restaurant Brands International, owner of BK is down more than 10% from
11 March close of $47.80 per share (see Diagram 2 in Appendix for the list of stock price of
company drop) [ CITATION Jef20 \l 1033 ]. If economic activity level and employment level is high,
people can spend freely on BK because their purchasing power increase (Abhijeet Pratap, 2018).
Besides, when Ringgit Malaysia depreciates, cost of goods and service increase, people reduce
purchasing power and change buying pattern and the sales may drop [ CITATION Cal15 \l 1033 ] .
Rising of petrol price in Malaysia cause the transportation cost higher as BK provide delivery
service and suppliers who bring raw materials will charge BK more [ CITATION UKE182 \l 1033 ]. If
inflation is long term in a country, higher commodity prices cause BK’s products increase and
consumers have to pay more for menu items[ CITATION Kat10 \l 1033 ].

2.3 NATURAL

BK launch a new restaurant design called Return on Capital (ROC) building (see Diagram 3 in
Appendix for ROC building) that has smaller footprint to reduce energy and lower heating and
cooling costs because it features high-efficiency air conditioners, T8 lighting and ENERGY
STAR ice machines. Flexible Batch Broiler in BK broiling system reduces 52% gas consumption
and almost 90% electricity consumption [ CITATION ETEnd \l 1033 ] . All ink used by BK for
packaging and printing are non-toxic and use cups and papers that have the lightest weight
available. For example, the weight of BK’s sandwich packaging is much less than the boxes and
wraps used in other quick service restaurants [ CITATION Sus16 \l 1033 ]. For recycling, BK’s kid
meal bags are made from 100% recycled materials (see Diagram 4 in Appendix for BK’s kid
meal bag). BK also separate their grease and residual waste in recycling facilities [ CITATION
Sus16 \l 1033 ]. For emission, BK tested a catalytic converter to reduce more than 80% of volatile
organic compounds [ CITATION Barnd \l 1033 ]. BK also concern animal welfare. They offer meat,
poultry and egg products that are high quality and safe. For instance, BK use the fish in the
healthiest fisheries, Bering Sea to make BK BIG FISH sandwich and the sbeef are not come
from deforested tropical rainforests [ CITATION Way12 \l 1033 ].

2.4 TECHONOLOGICAL

BK introduces “Burger King of Tomorrow” image that replace restaurants with tech-savvy
which features double drive-thru, digital menu boards, kiosks and brand-new exterior (see
Diagram 5 in Appendix for features of ‘Burger King of Tomorrow’). Double drive-thru improves
throughput and speed of service. Kiosks makes restaurants more efficient and builds digitally
integrated experience for customers [ CITATION Dan19 \l 1033 ]. BK launched BURGER KING
App for food ordering and delivery service. Customer can review food quality and service and
use reward system for e-coupons (see Diagram 6 in Appendix for example of BK’s e-coupon)
[ CITATION Tor18 \l 1033 ]. It strengthens relationships with young and mobile-savvy consumers.
BK have social media like Facebook and Twitter to market themselves (see Diagram 7 in
Appendix for total number of people follow Twitter). People can get the latest information of BK
on social media (Abhijeet Pratap, 2018). BK use new device called Kytch that update their
broken soft-serve units and shake machines (see Diagram 8 in Appendix for Kytch). The
device’s technology can correct unnecessary malfunctions of old machine and helps users
understand what is happening internally [CITATION Sho20 \l 1033 ].

2.5 POLITICAL AND SOCIAL

In Malaysia, BK control their food quality and safety under Food Act 1983 and Food Regulation
1985 includes food standards and hygiene, food import and export, food advertisement and
laboratories accreditation and the licensing of specified food substances required [ CITATION
Loh11 \l 1033 ]. BK has Halal certification provided by Malaysia organisation have halal logo at
restaurant and menu to prove the food is halal and entire processing of food is halal to obey food
policy (see Diagram 9 and 10 in Appendix for halal logo in BK restaurant and menu) [ CITATION
Rus18 \l 1033 ]. Tax policy set by government like SST in 2018 also affect BK’s marketing
system and the sales [CITATION Com18 \l 1033 ]. For social factor, a corporate responsibility
program of BK, The BURGER KING McLAMORE Foundation, make positive impact to
society by providing hardship assistance to members of the BK family and helping children’s
education for brighter future which includes BURGER KING Scholarship program, Literacy
Programs and Community Learning Center (see Diagram 11 in Appendix for CSR activities of
McLamore Foundation in 2016) [ CITATION Bur17 \l 1033 ] . BK also launched a cause-related
marketing campaign called #FeelYourWay on 1 May 2019 for Mental Health Awareness Month
for a new product: Real Meals (see Diagram 12 in Appendix for Real Meals). This program is to
help raise awareness of mental health issue to everyone. In 2015, BK promoted Peace One Day
with its Peace Day burger with other companies (see Diagram 13 in Appendix for Peace Day
Burger) [ CITATION Jes19 \l 1033 ].

2.6 CULTURAL

BK have to know the food necessities for each ethnic group. Sikh and Hindu people are mostly
vegetarian. Thus, BK offers vegan-friendly menu such as BK VEGGIE® Sandwich which does
not contain eggs and meat [ CITATION Kri19 \l 1033 ]. Muslim people eat only halal food.
Therefore, all BK Malaysia serve beef and chicken patties that 100% certified as Halal food and
they use vegetables that sourced from Malaysia [ CITATION kllnd \l 1033 ]. Nowadays people have
high health consciousness which threatens demand for BK’s products that criticized as
unhealthy. Hence, BK improve the healthfulness of its products by developing new nutritionally
balanced products for kids and adults. For example, they reduce the sodium content of some
menu such as 40% sodium reduction in ham, no added artificial flavouring and serve balanced
meal portion sizes and limit total fat in their products. Animal rights advocacy is an issue
concerned by society and threatening BK’s products, so they conduct new supply chain policies
to address concerns on animal rights [ CITATION Sus16 \l 1033 ]. BK consider people who emphasis
on quality of food rather than the quantity. They buy product for their safety durability and value,
so BK have more environmentally friendly products and introduction of recyclable packaging
[ CITATION UKE181 \l 1033 ].