Restaurant Brands International (RBI) Inc. was created on December 4, 2014, when Burger King Worldwide acquired Tim Hortons Inc., a Canadian coffee-and-doughnut retailer for $11.4 billion. RBI has since become the world’s second-largest global quick service restaurant. The combined company, RBI has its headquarters in Oakville, outside of Toronto Canada. The restaurant has expanded in various countries across the world. By 2015, the firm had already opened over 19,000 restaurants in approximately 100 countries across the world This paper explores the company’s vision, mission, objectives, and strategies; proposal for a new vision and mission for the company; conducting SWOT analysis of the company’s operation in the internal and external environments; recommendations on strategic directions for the company; and rationalization for its adoption of these recommendations.
Firm’s Vision, Mission, Objectives, and Strategies
Vision Statement
Restaurant Brands International’s (RBI) vision statement is based on the original aims of its founders. A vision statement guides the development of a particular firm (Rowland, 2017). According to Rowland (2017), the company’s vision statement is to be the most profitable fast-food restaurant, build it operations around a franchise system, employee the best employees, and offer the best experience to the consumers across the world by distributing quality burgers. The vision statement various key points, including the company being the most profitable fast-food restaurant, franchise system, best employees, and the quality burgers in the world. From the vision statement, the company is aiming at achieving a leadership position in the fast-food industry across the world. However, McDonald’s currently holds the position. According to Rowland (2017), the firm’s vision statement shows that the company is using the franchise system to expand its operations across the world. Rowland (2017) contends that RBI depends on skilled employees to make and distribute high quality burgers to its consumers within the global market. Thus, the vision statement demonstrates the company’s nature of operations and its objective to maintain a competitive advantage over other firms in the fast-food industry.
Mission Statement
The company’s mission statement is directly linked to its operations. Restaurant Brands International’s mission statement is to associate its product with affordable prices, offer consumers the best experience whenever they associate with the brand, and offer quick services. David and David (2017) argue that the company tries to entice consumers to purchase its products by using market-based pricing. Attractive and clean surroundings outlined in the company’s mission statement tend to enhance the consumers’ experience and entice them to keep coming back to the firm’s restaurants.
Objectives
Restaurant Brands International Inc. has objectives that it looks forward to achieving in the course of its operations. Some of the firm’s objectives include increasing customer satisfaction increasing brand loyalty, protecting itself as a high quality and premium brand, and starting the conversion of franchise ownership from 11.75 % to 15% (Lewis, 2019). The company also aims to increase its market share by increasing brand image and increasing sales of its products by attracting many new customers.
Strategies
RBI set up various strategies to guide its operations. Some of the firm’s strategies include driving sales in the United States and Canada and accelerating international development (Lewis, 2019). Other strategies that the company has come up with include maintaining a strong focus on corporate level-cost structure and pursuing franchising opportunities.
Proposal for a New Vision and Mission Statement
I would propose the company’s vision statement to outline the company’s focus on producing and distributing high-quality products, outstanding services, cleanliness, and offering value for a customer’s money. RBI’s mission should be to become a better place for its customers, where they can enjoy eating and drinking with their families and friends.
Assessment
The company’s ability to maintain its position as one of the biggest players in the fast-food industry is partly based on its strategic balance, as demonstrated in the SWOT analysis discussed below.
Strengths
RBI has one of the strongest brands in the quick-service restaurant industry. The company can easily open new restaurants in various parts of the world and introduce new products at any time and still get a better market for those products (Bhasin, 2019). The company can easily penetrate other markets, considering that it is well-known across the world, unlike emerging brands (Bhasin, 2019). Restaurant Brands Interantional has incorporated a product differentiation approach, allowing it to distribute unique products.
Weaknesses
One of the firm’s weaknesses is that its business model and products are often easily imitated. For instance, other firms often tend to produce similar grilled burgers (Bhasin, 2019). Restaurant International Inc. has a limited product mix, preventing the attraction of consumers who desire to associate themselves with firms that offer a wide range of options for similar products available in the market (Bhasin, 2019). The company’s franchising model limits corporate control on franchisees’ approach to management.
Opportunities
Restaurant Brands International Inc. has the opportunity to make a wide range of products to attract consumers who desire to associate themselves with firms that offer different options that they can choose from, especially when there are similar products in the global market. Restaurant Brands International Inc. has the opportunity to open new restaurants across the world to increase its profit margins and its revenue collections (Thompson, 2017). The company also has the opportunity to improve its service quality as a way of differentiating itself from other firms within the fast-food industry, especially McDonald’s.
Threats
One of the threats that the company faces is stiff competition from other firms, such as McDonald’s and Wendy’s. RBI faces threats from healthy lifestyle trends. Some criticize the company for making and distributing unhealthy products to consumers (Thompson, 2017). Besides, its business model can be easily copied by new market entrants.
Recommendations
SPACE Matrix
Incorporating the use of the SPACE matrix helps organizational management to make strategic choices and decisions related to a business plan. The matrix focuses on four areas, including environmental stability, industry attractiveness, competitive advantage, and financial strength. I will use the SPACE analysis to make recommendations on strategic directions for the Restaurant Brands International. Regarding environmental stability (external environment), I would recommend that the company maintains stiff competition in the fast-food industry. Regarding industry attractiveness (external environment), I would recommend that Restaurant Brand International penetrates markets that other firms have been unable to penetrate. Regarding competitive advantage (internal environment), I would recommend Restaurant Brand International to improve the quality of its products. Concerning financial strength (internal environment), I would recommend Restaurant Brand International to increase the sales of its products.
IE Matrix
By utilizing the IE matrix, I would recommend that the company should work on some aspects of its internal and external environments. In the internal environment, I would recommend Restaurant Brand International to maintain leadership stability. In the external environment, I would recommend the company to incorporate new marketing campaigns for healthier products.
Reasons for Recommendations
SPACE Matrix
I recommend that the company should maintain the stiff competition, as that is what will enable it to survive in the global market. I recommend that the company should penetrate new markets that other firms, such as Wendy’s, might not have penetrated to attract new customers. I recommend that the company should improve the quality of its products to ensure consumer loyalty and attract more customers. I also recommend that the company should increase sales of its products to generate more revenue to maintain its financial stability.
EI Matrix
Restaurant Brand International should maintain leadership stability in its internal environment because, over the past years, constant changes in its leadership and management have contributed to consumers being confused about the company’s image. Consumers argue that constant changes in leadership demonstrate that the company lacks strategic direction. I recommend that the company should incorporate new marketing campaigns to inform consumers that it is distributing healthier products, rather than how others claim that it is distributing unhealthier products
Restaurant Brand International is one of the largest companies in the fast-food industry. The company has a history that it was created in 2014 through Burger King Worldwide acquiring Tim Hortons Inc. The company is the second-largest fast-food restaurant across the world and it operates in approximately 100 countries. RBI’s operations have been guided by its vision and mission statements. The company has improved in various areas. However, it has also experienced some challenges in the process. It should increase the quality of its products, and distribute a wide range of unique products to attract many new customers to ensure that the company remains competitive in the global market. The approach will help the company to increase its profit margins.
References
Bhasin, H. (2019, February 6). SWOT analysis of Burger King – Burger King SWOT analysis. Retrieved from https://www.marketing91.com/swot-analysis-of-burger-king/
David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts & cases (16th ed.). Don Mills, Canada: Pearson Education Inc.
Lewis, R. (2019, April 2). Burger King Corporation. Retrieved from https://www.britannica.com/topic/Burger-King-Corporation
Rowland, C. (2017, February 6). Burger King’s Vision Statement & Mission Statement. Retrieved from http://panmore.com/burger-king-vision-statement-mission-statement
Thompson, A. (2017, February 6). Burger King SWOT Analysis & Recommendations. Retrieved from http://panmore.com/burger-king-swot-analysis-recommendations