Enterprise Skill Assignment

CONTENT LIST:

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Number 2................................................................ 7 - 11

Number 3.................................................................... 12 - 15

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Reference List.............................................................. 28

Question 1

Choose any fast-food industry and examine critically the key macro-environmental and micro-environmental factors affecting the success of its business.

BURGER KING

This company started with one restaurant in Miami in 1954 and now has grown to more than 11,100 restaurants in more than 65 countries worldwide. 75% of Burger King's outlets are located in the United States. In fiscal year 2002, the firm had US $11.3 billion in total sales. Around 58% of its business is drive-through, and 20% is take-out. It has more than 340,000 employees and sells about 2.4 billion hamburgers a year. Burger King is the world's second largest Quick Service Restaurant system and now Burger King is on the third place of the biggest burger chain behind McDonald's and Wendy's in the world but this company is on the 1st place of the biggest burger chain in Singapore.

Macro-environmental factors:

1. Political and regulatory factors

Political and regulatory environment include laws, government agencies, levels of taxation, safety regulation and pollution control regulation that influence and limit organizations/individuals in a given society. This factor is linked to laws and every country has different laws.

Singapore is not an Islamic country like Indonesia or Malaysia; it gives profit to Burger King who sells burger. Burger is included meat when it is served and some of burgers are using pork meat, in Islamic country every food industry cannot use pork in the foods but in Singapore there is no law about it. In Singapore there are many people who come from different country and some of them do not like to eat pork but some other like to eat pork, it means the Burger King available to take get all of consumer and get maximum profits. In the other hand, Singapore has a big level of taxation and it also uses GST, everything is expensive in Singapore. Burger King should get the maximum profits to balance it.

2. Economic factors

Economic factors are the factor which effect consumer purchasing power and spending patterns. It includes level of unemployment, rate of inflation and interest rates fluctuations. Economic factors affect the companies because the companies get profits from the consumers and the company cannot get it if the consumers do not have good economics.

Singapore has good economics, in Singapore the level of unemployment is very low because almost all of the people have jobs and most of the people who live in Singapore have good economics and the interest rates fluctuations are good. It was a right decision from Burger King to open their business in Singapore because most of people in Singapore are able to buy Burger King's foods and because the economic is stable the company should not worry about its business if the economic of Singapore goes down.

3. Social and Demographic factors

Social and demographic environment are about populations in terms of size, density, location, age, gender, race, occupation and distribution of wealth. These factors influences on business vary from country to country. It is very important that such factors are considered. It also includes about the dominant religion, the language, the role of man and woman within society.

Singapore has many cultures and the dominant culture come from china, Burger King in this case has a good strategy, on last Chinese New Year Burger King gave promotion coupons during the Chinese New Year. Singapore has a high density as we know Singapore is a small country; Burger King puts its counter in many places so the consumer is easy to find it. Singapore uses English for its main language and English as international language make us easy to communicate and the Burger King uses English for everything in this company. If we see the distribution of wealth in Singapore is very good, most of people in Singapore live on high standard of living that is why in Singapore there are many people prefer fast food for their lunch or dinner even for breakfast.

4. Technological factors

Technological factors forces that create new technologies, creating new product, market opportunities, handle information and communication. These factors are including to make a better quality of some product and also to make it easier if the consumers want to buy the product.

The technology in Singapore is highly developed and the transportation system in Singapore is very good, such as MRT, there are so many MRT line and it is easy to go to anywhere in Singapore and they use EZ-Link the multi function card. In Burger King we can pay the bill by using EZ-Link, we just tab the card to the machine and the credit will move automatically, this technology system makes the consumers easier to buy Burger King's product if they do not have or do not want to use cash money. Burger King also has a delivery service but it is normal if the fast food companies have delivery services. Burger King gets their main ingredient and their stuffs to make the products direct from their main factory in Miami, USA. Every Burger King use the original stuffs from it main factory in USA, this company try to give their best quality to the consumers.

Micro-environmental factors:

1. Customer

The basis of meeting the needs, wants and gives benefits for customers are the keys for a company