Strategic Issues and Challenges Faced by Honest Burgers Ltd.

COURSEWORK REPORT

TABLE OF CONTENT
SUMMARY.....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
4.1 Strategic Issues-.....................................................................................................................3
4.2 Challenges of Honest Burgers Ltd.-.......................................................................................5
4.3 Solutions................................................................................................................................7
4.4 Implementations.....................................................................................................................9
6.0 RECOMMENDATION.......................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

SUMMARY
This report will discuss about the strategic issues of Honest Burgers which the company
is facing and a brief definition of strategic issues. One of the issue that will be discussed in this
report is, Honest Burgers is having issue in managing the rising labour costs as they are facing
many challenges in controlling this. Along with this, it will also discuss about the solutions of
these challenges as well as how these solutions can be implemented in the organization. Further,
report includes the recommendation for Honest Burgers for applying in the organization to
overcome from these challenges.
INTRODUCTION
In this present era, it is very difficult for every organization to survive in the market.
There is much competition in the market as well as the organizations also face many strategic
issues and challenges. Strategic issues are the issues which the organization is facing while
achieving the objectives and goals. It has major impact on the direction of the businesses. It is
very important for the organization to identify these issues for achievement of the goals and
objectives. This report will discuss the strategic issues of Honest Burgers Ltd. It faces the issues
of managing the rising labour costs of the market, in meeting the changing consumer trends like
hygienic food, fresh food, healthy food. Further, it also discusses that what challenges Honest
Burgers is facing with the issues. This report stated the solutions like Lewis change model, The
McKinsey 7s model to understand and evaluate the problems of these issues and challenges as
well as ways to implement them in the organization. It has also suggested the recommendation
which can be taken for overcoming these issues.
MAIN BODY
4.1 Strategic Issues-
Strategic issues are the long term issue which hinders the achievement of the
organization. It is the issue which requires the clarification and these have direct impact on the
direction of the organization. It is very important to identify the strategic issues as these become
threats when not taken care of. It should be addressed and resolved for achieving the goals and
objectives of the organization. Honest Burgers Ltd. Faces some strategic issues which are-
1. Management in rising labour costs- Instead of the digitalization, this organization has
to employee the staff for work. There can be many such work liker serving food to the

customers as well as providing them the quality services for the customers' satisfaction.
To keep maximum productivity of both human labour and of machines is highly costs.
Minimum wage, payroll taxes, overtime pay, hiring subsidies are the few policies which
impacts the labour costs. It is very crucial to manage these rising costs of labours as they
have to pay them the wages as well. Higher labour costs increases the productivity of
Honest Burgers Ltd, but it also reduces the profits of the company. So to remain
profitable it is very important for this organization to manage the labour costs.
2. Meeting changing consumer trends- The consumers needs and wants are rapidly
changing. Nowadays, the trend in food industry is of hygienic and fresh food. Along with
this, they also take care of the environment and ethical policies of the food they consume.
People gain information about how the product is made, where it has been made, whether
it had harmed the environment or not, is the packaging is recyclable etc. So it has become
very difficult for Honest Burgers to manage up with these trends of the consumer. The
consumers are very conscious about these things nowadays. It is issue faced by the
Honest Burgers as they are not able to meet up with these consumer trends.
3. Management of waste and food loss- According to several studies, it has been stated
that food industry wastes(Bilska, Tomaszewska and Kołożyn-Krajewska 2020) the many
tonnes of food which is not suitable for consumption. It is the biggest issue faced by
Honest Burgers as they are not managing the food wastage which is causing harm to the
environment. This organization should ensure that food is not wasted because this
reduces the potential revenue of the organization. This strategic issue should be given the
first priority to be tackled. In short, wasting food causes increase in greenhouse gas
emissions and promotes more the climatic change,
4. Sustainability- It is maintaining the balance between the economy, ecology as well as
the social issues. Sustainability(Brown, et.al. 2020) is the process of producing the food
by using non-polluting processes. It is very difficult to maintain sustainability in the
Honest Burgers as every food cannot have the equal contribution in the problems of
climate. Consumers are paying more attention towards how the food is affecting the
environment. In context of the food industry, sustainability has the broad spectrum.
Plastic use has been much eliminated as this harms the nature. Honest Burgers is trying to
meet up the issue of sustainability but facing many problems in acquiring it.