Case study: Burger Vegan (BV)
BV is a public limited company that owns over 100 restaurants in the US. Each restaurant sells a range of vegan burgers and wraps. BV does not sell any products derived from animals.
BV also has franchise agreements for entrepreneurs to operate their own restaurants using the BV brand. There are currently 50 franchised BV restaurants in the US.
Timeline of BV:
2009 – The first BV restaurant opens as a private limited company. The company is owned by Rohit who is the Managing Director.
2010 – Rohit is named Entrepreneur of the Year by a business magazine in an article which highlights his emotional intelligence. Rohit sets a long-term aim to transform BV into a major brand in every US city.
2011 – BV opens two more restaurants. Rohit sells 45% of BV to a venture capitalist for $1m. The capital raised is used to finance growth.
2011–2014 – BV opens 13 more restaurants.
2015 – BV becomes a public limited company. Rohit and the venture capitalist retain 5% of the shares each. BV starts to market its franchise model (see Appendix 1) and sells its first franchise in New York.
2016 – A new organisational structure is implemented (see Appendix 2).
2017–2018 – BV opens 15 more restaurants and 12 more franchises.
2020–2021 – Most BV restaurants are closed due to a global pandemic. Rohit decides to pay BV's employees throughout the closure. BV makes a loss for the first time. BV starts a joint venture with a delivery business to offer a takeaway service.
2021–2022 – BV continues to grow in the US with a focus on selling franchises.
Developing a global business: The directors of BV want to enter the international market. They have chosen to open the first restaurants in country X. Rohit has provided the board with some strategic management information.
Appendix 1: Extract from a 2015 BV advertisement for potential franchisees
'As a franchisee you must show that you have the adaptability and intelligence to lead a dynamic business. You are the public face of BV and must work within our distinct corporate culture to give your business the best chance of success. As a customer-focused entrepreneur you will need great social skills and a love of people.'
Appendix 4 (extract): Core competencies of BV – clear corporate identity as an ethical business; consistent high-quality across the product portfolio; excellent customer service.
Evaluate the extent to which leadership contributed to BV's effective strategic management between 2009 and 2022.
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Suggested time: 30 min