Environmental Analysis of Burger King in Myanmar

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[pic 3]Title: Environmental Analysis of Burger King in Myanmar

Name: May Thin Khaing

Student ID: CT - 0230162

Date: January 27, 2015

1) Introduction

This report provides the description about the environmental analysis of Burger King, based on the country named, Republic of the Union of Myanmar. The report is prepared with the aim of suggesting Burger King to launch its operation in this developing country. At the very beginning, this report will illustrate the background of chosen company and the country. Then, it will present the PESTLE analysis of Myanmar and Porter’s Five Forces. Lastly, the report will describe recommendations on the report and conclusion will be provided.

2) Company’s background

Burger King, also known as BK, is a global fast food company headquartered in unincorporated Miami-Dade Country, Florida, United States and it is ranked as the second largest organization in hamburger food chain, launching over 12,000 outlets all in over the world including U.S territories. This company is tremendously famous for fantastic taste of its products; service excellency and operating structures of the restaurants, as well as its convenient delivery service. It is assumed to be successful for over 50 years with the evidence of welcoming more than 11 million customers daily.

3) Country’s Background

After the introducing of reforms under the new Civilian Government since 2011, Myanmar, also known as Burma, has gradually become an open industry to international investors. The government collaborates with international organizations to improve the country’s infrastructures and many businesses are welcomed to invest in this country. The economic growth has increased continuously within three years with the dramatic changes and progresses. Moreover, this is the country with abundant natural resources and natural beauty. For these reasons, many business investors from all parts of the world find it attractive to do business in Myanmar.

4) Definition of PESTLE analysis

        A PESTEL analysis is a framework that strategy consultants use to scan the external macro-environment in which a firm operates. PESTLE is an acronym for Political, Economic, Social, Technology, Legal and Eco-Environment. (Pradhan, 2009)

4.1) Importance of PESTLE analysis

• PESTLE helps the organization to identify how these external factors might affects to the business at the present time as well as in the future.
• It determines opportunities and threats that can impact on the organization and assists managers to come out with strategic planning and decision.
• This analysis reveals potential environment changes of the country and helps the company to decide whether the company should spend money on the projects of expansion or launching an operation in that country.

PESTLE analysis conducted on Myanmar is analyzed in Table (1)

4.2) Table (1) PESTLE analysis of Myanmar

4.2.1) Explanation of creating better international relations (Political)