International Expansion of Burger King into France Case Study

International Expansion of Burger King into France - Case Study Example Among the different factors identified by this model, we have singled out three that have a particular impact on the success of Burger King. Further PESTLE information is available in Appendix 1. 1. The most critical is the socio-cultural factor. France is a country with a long culinary tradition. French people who consume fast food show preferences guided by considerations of health and nutritional variety (Steele). French ex-employees of foreign fast-food chains have identified such preferences and successfully set up their own fast-food restaurants better aligned to French tastes (Rosenberg). Burger King will therefore need to adapt its cultural approach by extending the menu range beyond the basic burger-soda combination to produce meals to appeal both to the customer who is interested in novelty and fashion and to the one who seeks reassurance from tried and trusted classics. In general, culture occupies an important place in French life and extends beyond eating habits. Literature, art, lifestyle, values and traditions are all watched over and influenced by various French institutions as well as the government. As a nation, France seeks to develop and export its culture: "promoting cultural influence has been national policy for centuries" (Morrison). As such, a certain cultural protectionism exists in the French domestic market. For this reason, standardisation of Burger King operations extended to France must also be tempered by intelligent adaptation to the cultural norms that are deeply rooted in the market (Briscoe). 2. The legal environment and a number of governmental components are also specific to France. While to some degree harmonised with European policy, laws are still largely based on the Napoleonic Code, which has certain significant differences to anglo-saxon law. The french government has also recently begun a national awareness campaign for fitness and healthy eating, typified by its promotional web site (www.mangerbouger.fr). While this has no legal weight, it is an indication of the french government's wish to influence eating habits and therefore food market offerings. This represents both a challenge and an opportunity to Burger King. For example, if the company can adapt its promotional material correctly, Burger King meals can be positioned as the "healthy fast-food alternative" (Rosenberg). 3. Economic factors including exchange rates and inflation will also be important considerations. Exchange rates are based on the euro, which is currently strong against the US dollar. Revenue flowing back to the parent company from Burger King in France will therefore be enhanced, but operating expenses will be higher as well. France has one of the highest numbers of public holidays in Europe and almost double the amount of paid vacation for a salaried employee compared to the US. The french working week was redefined some years ago by the government as 37 hours per week. Where possible, the response of companies in France was to become more efficient in their working practices. However for restaurants such as those of Burger King, the repercussion is on higher staffing expenses. Adaptation of restaurant operating procedures may be required. Competitors of Burger King such as McDonald's (Briscoe) and