Business Strategy for Hungry Jack's: Cost Leadership, Differentiation and Focus

Running head: Business strategy
Business strategy
2018

Business strategy
Table of Contents
Executive summary.....................................................................................................................................3
Background of the company........................................................................................................................3
Business level strategies..............................................................................................................................4
Suitability of the business level strategies...................................................................................................5
Evaluation of business level strategy by using McKinsey 7 S model..........................................................6
Key issues and recommendations................................................................................................................9
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
Appendices................................................................................................................................................12
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Business strategy
Executive summary
Business level strategy is an effective tool to analyze and measure the position of the
rivals. Hungry Jack’s which is the biggest fast food brands has been taken in the task to discuss
the significance of business level strategy. Hungry Jack’s launched its first store in Innaloo in
1971.The firm believes in promoting innovative and unique vision among the customers by
initiating four key values such as ensuring safety, giving maximum importance to customers,
improving and enhancing its performance and enabling integrity. The main objective of this
report is to outline and discuss the business level strategies such as cost leadership,
differentiation and focus. By implementing these strategies, the company has an option to boost
profitability and revenue globally. The paper further explains that how business level strategy is
suitable for Hungry Jack’s Company as it also explains that how this strategy can be evaluated
and analyzed by using McKinsey 7S model. At the end, some key issues that are being faced by
Hungry Jack’s have been discussed in the paper. More detail of the task has been drawn below.
Background of the company
Hungry Jack’s Pty Ltd. is a franchise of burger king Corporation. The company was
incorporated in 1971 as a wholly owned subsidiary of competitive foods Australia, privately held
firm owned by Jack Cowin (HungryJacks, 2018). The company is having more than 420
restaurants that serve various customers in the country; the firm employs approx 19,000 people
in Australia. The organization has been making fresh and good quality of burger for providing
satisfaction to the customers around the globe. The main mission of the corporation is to render
excellent quality of fast food products to the key target audience globally. Hungry Jack’s is the
second biggest franchise of burger king across the world. It is reported that organization offers
various fast food products and services including biscuits, sandwiches, french-fries, hamburgers
and chicken sandwiches to the customers in the market. Hungry Jack’s manages and operates
restaurants throughout Australia (Bloomberg, 2018). The company serves its products in more
than 390 locations across Australia. The market size of the firm is larger and wider to gain
competitive benefits globally. In today’s era, the company is maximizing profitability and
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Business strategy
outcomes for improving its scope for making a dynamic and unique brand image in the market.
The vision of Hungry Jack’s is to be a leader in fast food industry by rendering fast food
products internationally.
Business level strategies
It is noted that business level strategies are being used by Hungry Jack’s to compete with
rivals in the international market. The business level strategies that help in maximizing profit
have been discussed below.
Cost leadership strategy: Hungry Jack’s uses this strategy to beat the rivals in the global
market. Market price is a vital and significant factor in selling the products and services. It is
elucidated that Hungry Jack’s offers products at reasonable prices to attract maximum target
audience in the market. The pricing of Hungry Jack’s products lines is done in an effective and
cost effective manner (Mishra, Sharma, Kumar & Dubey, 2016). Hungry Jack’s struggles with
major and unique fast food leaders including Wendy’s and McDonald’s. The firm uses market
based pricing approach to stand out over the rivals internationally. It is stated that the firm also
uses bundle pricing strategy to earn greater revenue and profitability (Rothaermel, 2015). The
company uses cost leadership strategy to attain operational efficiency and effectiveness by
purchasing the best quality of raw material and ingredients from the most effective and reliable
suppliers and using them in manufacturing excellent quality of fast food and desserts in the
global market (Leonard, 2018).
Differentiation strategy: It has been analyzed that differentiation is one of the significant and
fundamental strategies that used by the company while initiating the business globally. The firm
uses differentiation strategy to distinguish its products from their rivals’ fast food products
(Wright & Clarke, 2009). The motive behind using this strategy is to build and develop a unique
and effective brand reputation in the minds of potential and effective customers. To differentiate
the products, Hungry Jack’s is trying to keep an eye on the performance, product, policies and
strategies of the competitors (Scully et al, 2012).
Focus strategy: It is noted that focus strategy is unique and similar to cost leadership; the firm is
trying to strive with rivals by using this strategy. Hungry Jack’s focuses on its marketing efforts
in an effective manner to maximize revenue and returns (Verhoef, Lemon, Parasuraman,
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