Five Guys Macro and Micro Factors - Assignment
17 Pages4809 Words351 Views
Added on 2020-10-22
Five Guys Macro and Micro Factors - Assignment
Added on 2020-10-22
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Strategic management
EXECUTIVE SUMMARYThe assignment describes in detail about macro and micro factors that is affecting FiveGuys in expanding in Italy. Also, it is discussed about how pestle and porter analysis identifiesfactor which impact growth of company. The report described about what strategies can beimplemented by Five Guys to expand in Italy. Also, some recommendations are made that can betaken into consideration.
Table of ContentsINTRODUCTION...........................................................................................................................11) What is the current strategic positioning of Five Guys in the EU market?.............................1EXTERNAL ANALYSIS...........................................................................................................2INTERNAL ANALYSIS.............................................................................................................42) What strategic recommendations can Five Guys follow to strengthen its current position inthe EU Market?............................................................................................................................7IDENTIFICATION OF COMPETITIVE STRATEGIES...........................................................8STRATEGIC DIRECTIONS.......................................................................................................9Conclusion.....................................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONIn present era, it is very difficult to do business in such a changing environment. It isbecause of frequent change in external factors. This is impacting on operation and strategies.Food companies are finding it difficult to expand their operation. Businesses is surrounded bymacro and micro factors (Wheelen and et.al., 2017). They have to analyze them to enter in newmarket. Also, there are many other things which has to be thoroughly evaluated in order to selectan appropriate strategy for expansion.Since last few years a new segment in fast food has emerged. It is known as quick servicerestaurants (QSR). There has been high growth in this sector. It accounts for more than 50% oftotal sales in restaurant sector. Also, the fast food industry is growing at rapid rate. many newand small size companies have entered in this sector and providing different products andservices. This has led to stiff competition among them. Due to this they are finding it hard tosurvive for long term. Hence, they are focusing on expanding in Italy. The major impact ofcompetition is on big organizations. They are facing intense competition from local companies.Furthermore, government has imposed some restrictions on use of some ingredients that are usedin making fast foods. Thus, it has restricted companies to operate in different nations. Similarly, Five Guys is also facing some challenges regarding expansion. In recent times,there is downfall in sales and profits of company (Ethiraj, Gambardella and Helfat, 2017). it hasenforced them to focus on Italy to attract more customers. the change in external and internalfactors has created a great impact on their growth. Moreover, due to new entrants in localmarket, firm is not able to retain their customers. there are issues regarding quality of services.Due to change in social factors Five Guys has to close down their outlets in many countries. Thishas affected their growth and development. Therefore, it is essential for them to analyzesurrounding factors so that expansion strategies can be developed. History of five guysFive Guys is fast casual restaurant chain headquartered in Lorton, Virginia. It wasfounded in 1986. It operates in fast food sector. The company is having over 300 franchise in1500 locations. They provide variety of fast food products such as hamburgers, French fries, hotdogs, soft drinks, etc. 1
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