Burger King is the second largest fast food hamburger restaurant in the world. The company mainly competes against market leading Mc Donald’s restaurant and also Wendy’s rastaurant. The purpose of an external audit is to develope a finite list of opportunities that could benefit a firm and threats that should be adoided. (Business Policy & Strategy, 2010).
External Forces also known as General Environment of a country can be separated into five divisions:1.Economic forces2.Social, cultural, demographic, and environmental forces3.Political, legal, governmental forces4.Technological forces5.Competitive forcesECONOMIC FORCESSimilarly to all other industries, the food industry is threatened by slow economic recovery.
The economic downturn hinders financial strength of Burger King. Increasing unemployment levels also account for decreased sales and market share of the company eventhough food is a need of human. Short term the effects of on-going budgetary and debt ceiling crises in Washington may be uncertain, unpleasant and unhelpful, especially to an economy still in recovery mode. The fact that the unemployment rate is still so high.
(http://allaboutalpha.com/blog/2013/01/22/the-global-economy-in-2013-5-key-economic-trends/)There are still opportunities for the company because the cheaper gas price which is lower the cost including: supplies cost, delivery sevices, and others. However, it is also a threat because other competitors also take this advantage to serve better to consumers. This year will see a relocation of energy intensive industries from around the world to the US, to take advantage of far cheaper gas prices (e.g. Gas in Japan is four times as expensive).
This will result in trade disputes with its allies who will resent having important parts of their heavy industry move to America, while they are trying to come out of recession.(http://allaboutalpha.com/blog/2013/01/22/the-global-economy-in-2013-5-key-economic-trends/)Corporate tax rates tableNorth America average38.0538.0536.7536.535.5343333Latin America average29.0728.327.9627.9627.5229.0228.327.61 United