Business in Global Context

This report discusses the country and industry analysis of Hungry Jacks, a fast food franchise of Burger King Corporation, and its plan to expand business in New Zealand market. It includes 2x2 matrixes of international strategies, market entry mode, appropriateness of country choice, and concentrated/decentralized strategy.

Running Head: GLOBAL BUSINESS 1
Business in Global Context

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Table of Contents
Introduction.................................................................................................................................................3
Country and Industry Analysis.....................................................................................................................3
Company Description..................................................................................................................................4
Goods and Service Offerings....................................................................................................................4
2x2 matrixes of international strategies......................................................................................................4
Market Entry Mode.....................................................................................................................................6
Appropriateness of Country Choice.............................................................................................................7
Political/Legal factors..............................................................................................................................7
Economic Factors.....................................................................................................................................7
Social Factors...........................................................................................................................................8
Technological Factors..............................................................................................................................8
Pros and Cons of Entering into New Zealand Market..................................................................................8
Concentrated/Decentralized Strategy.........................................................................................................9
HR Approach................................................................................................................................................9
Conclusion...................................................................................................................................................9
References.................................................................................................................................................11

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Introduction
Nowadays, businesses are seeing changes in the economic and country settings. The local market
is not able to fulfill the needs and demands of globalized population. Businesses have emerged to
make sure that it thrives in the era of globalization. This emergence has made various local
businesses become a popular name all over the world (Bastié, Cussy & Le Nadant, 2016). In
order to get success, a multinational company is expected to follow the rules and regulations,
policies, business practices and customer preferences. The major objective of this report is to
conduct a country research of New Zealand in context of Hungry Jacks.
Hungry Jacks is an Australian fast food franchise of Burger King Corporation. This organization
is planning to invest in New Zealand market for which it needs to analyze the market and
establish trade links with the foreign country. This report includes a wide description about the
country and industry of Hungry Jacks. There is the discussion about 2x2 matrixes of
international strategies which are the best suitable to the organization’s operations. Moreover, it
discusses about the market entry modes which can be used by Hungry Jacks while expanding the
business in New Zealand. The rightness of country’s choice is identified by using PESTLE
analysis framework. Manufacturing strategy of this company is recognized and some aspects are
taken into considerations in context of choosing the most appropriate location for subsidiaries. At
the end, there is the discussion about the HR approach that can be used by the chosen
organization to find workforce in new market.
Country and Industry Analysis
Hungry Jacks is running its business operations in Australian fast food industry. In Australia,
consumer awareness about health has transformed the fast food dining and takeaway services
industry over past few years. This enhanced awareness of nutritional ingredients of fast food and
sensible effort by the customers to select healthier alternatives which have impacted the industry
demands. The players in Australian fast food sector are responding by launching a wide variety
of healthier and premium options with less sugar, salt and fat. Changes in the market trends and
customers preferences have directed the industry to entry of new companies providing excellent
quality fast food options. The revenues are raised at a yearly rate of 3.7% through 2017-18 to

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$19.7 billion. However, this revenue figure is expected to decrease by 0.4% because of decrease
in disposable income of Australian population. As per Statista Report, a survey organized
between April 2017 and March 2018 to know about the share of Australian customers who take
the food from quick service food outlets in six months. It indicates that 52.7% of Australian
customers consumed food from McDonalds. The major reason behind the growth of these
industry players is the developed economy of the country. Moreover, it can be stated that this
industry in Australia is totally focused on standardization. It implies that food outlets are very
particular about the maintenance that outlets will be having (Schaper & Buchan, 2014).
Company Description
Hungry Jack, officially known as Hungry jack Pty Ltd. is an Australia based fast food franchise
that works under Burger King Corporation. It was established in the year 1971 and it is operating
its business as wholly owned subsidiary of Competitive Foods Australia that is owned by Jack
Cowin. This organization runs and owns or sub-licenses all the Australian restaurants of Hungary
Jack and Burger King. As the chief franchise for the nation, Hungry Jack is liable for licensing
new entrants, establishing its own stores and executing new standards of franchised locations in
that nation. With more than 390 locations all over Australia, Hungry Jack has become the 2nd
largest franchisee of Burger King across the world (Hungry Jacks, 2018).
Goods and Service Offerings
Currently, Hungry Jacks offers a wide range of products to its targeted customers in Australia.
The main products of the company are such as chicken products, hamburgers, onion rings,
French fries, salads, cold beverages, breakfast items, chips, desserts and kids’ meals. In addition
to fast food products, it offers a functional breakfast menu for a limited time in morning that is
very famous among Australian population. The primary trademarks of Burger King which are
sold via Hungry Jacks include TenderGrill and Whopper sandwiches. The organization believes
to run its business as large scale operations with limited product line that help in generating more
revenues and profits (Hungry Jacks, 2018).

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2x2 matrixes of international strategies
In order to expand and run business in New Zealand market, Hungry Jacks will formulate and
implement effective strategies by using 2x2 matrices. Under strategic management, 2x2 matrix
defines two different variables, which are relevant to give simple description of 4 alternatives
which can be explored and arranged when making significant decisions for businesses. There are
two major 2x2 matrixes i.e. BCG Matrix and Ansoff Matrix. While expanding business in
international market, it is very important for the organizations to adopt one of these matrixes.
In order to expand business in New Zealand, Hungry Jacks will use the strategies under Ansoff
Matrix which will help the company to establish the business in this new market. This matrix
includes two dimensions i.e. market and product. These strategies for Hungry Jacks are discussed
below:
Market Development
Market development is the most suitable strategy in the business expansion of Hungry Jacks
Company in New Zealand. By using this strategy, this company will introduce its well-
developed fast food products among New Zealand’s population. In Australian market, company
is successfully offering different food products like chicken products, hamburgers, onion rings,
French fries, salads, cold beverages, breakfast items, chips, desserts and kids’ meals. Company

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believes that its most popular products are hamburger and chicken products which sales are the
major reason behind its sales and revenues (Kelsey, 2015). Under this strategy, Hungry Jacks
will offer its popular products among its targeted customers by identifying their needs and
demands towards fast food products and beverages. It will be able to attract more customers
while New Zealanders will find that Hungry Jacks is offering more quality products to them.
This will assist the organization to increase its value.
Diversification
Additionally, diversification is another strategy that can be used by Hungry Jacks in new
international market. Under this strategy, the company can grow its business by using new
products in new market. While entering into New Zealand, the company can diversify its
business by introducing some new products. It is analyzed that the population in New Zealand is
very conscious towards health and nutrition. Considering the preferences of customers, the
organization will introduce a new range of healthy and nutritious products in this country. It will
include juices, salads, healthy breakfast items etc. in its product range. However, the company
may have risk and challenge under this strategy but it will be profitable for the establishment and
growth of Hungry Jacks (Scott, Cavana & Cameron, 2016).
Thus, these two strategies will be the best suitable to the business and global expansion of
Hungry Jacks in New Zealand.
Market Entry Mode
When any company plans to expand its business operations in another international market, it
needs to make a decision on its market entry mode. Market entry mode is the strategy that is
adopted by a company which determines how to enter in a foreign market (Aktaş & Yeasmin,
2015). There are various strategies which an organization uses all over the world. In the process
of entering into New Zealand, Hungry Jacks will look for the most appropriate mode that will
have significant effect on the results. The recommended market entry mode for Hungry Jacks is
stated below:
Franchising as a model for Foreign Direct Investment (FDI) in New Zealand

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About the market entry mode of Hungry Jacks, it can be stated that Hungry Jacks can use
franchising strategy as a model for foreign direct investment in the chosen country. In this new
market, this organization can invest the funds by opening more franchises and stores. It can
exercise more supervision and control over the franchises (Chan, 2015). Under FDI, franchising
will be the best suitable model in the business environment of New Zealand. The country has not
significant laws and regulations which regulate the franchisee business (Thomsen & Willerslev,
2015). As an outcome of this, franchise can be established by Hungry Jacks without the concern
for registration, regulations and authorization. If company will use this mode, it needs to get a
fixed amount and royalty on the basis of sales as the revenues from franchisee. The firm should
use this mode as it will have various advantages for its business expansion. One of the biggest
advantages is that it will minimize the risks and relevant operating costs on the franchisor as a
huge portion of burdens which are put on franchisee. Moreover, this approach will help the
organization to know about the culture and market customs of New Zealand market that will be
very tough for Hungry Jacks to get if it will solely utilize FDI to enter in this market (Dalgic &
Bloemen, 2015).
Thus, it is hereby recommended that Hungry Jacks should use franchising with FDI to make
entry into New Zealand market.
Appropriateness of Country Choice
Before expansion, it is very important to conduct the market research and analyze that whether
this country’s market is right to enter. Here, the appropriateness of New Zealand country can be
analyzed by using a strategic theory/framework i.e. PEST analysis. In context of Hungry Jacks,
the market of New Zealand is analyzed below:
Political/Legal factors
The business operations of Hungry Jacks will be affected by the policies enforced by New
Zealand government. The country does not have more laws and regulations for franchising
business that can provide a profitable market for the company. The political system of this
country is very strong and it provides equal opportunities to both males and female employees.
In New Zealand, the stores of Hungry Jacks have to deal with the employment policies and tax
obligations (Holler, 2015).

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Economic Factors
In New Zealand market, economic position and unemployment rate can influence the fast food
companies. There are various healthier options which are costlier than fast food which cannot be
afforded by New Zealanders. Currently, economy of this country is emerging that may have
many positive impacts on Hungry Jacks’ business. Moreover, it is analyzed that disposable
income of New Zealanders is increasing that enables them to consume fast food. It can also have
positive effect on Hungry’s business (Farrell, Warin, Moore & Street, 2016). Economic state of
this market will offer various benefits and business opportunities to Hungry Jacks.
Social Factors
As mentioned above, there is an increase in the disposable income of New Zealand’s population.
People love to consume food outside their house and they are not much concerned about their
health. This can increase the sales and revenues of Hungry Jacks. In this market, it is very
important for the company to provide quality fast food products so that it can entice more
customers. Moreover, it is important for this organization to target the younger crowd in New
Zealand as they like to eat fast food like burgers, French fries, chicken products etc. They will
show loyalty to the customers (Devi, et al, 2014).
Technological Factors
It is one of the important factors which can have negative impact on the business operations of
Hungry Jacks. Till now, the country has not upgraded its technologies used in the food market.
For the business of Hungry Jacks, it is very important to have new technologies to connect and
manage the suppliers of raw materials. This factor may affect its business adversely (Food &
Council, 2014).
Pros and Cons of Entering into New Zealand Market
From the above country analysis, it is found that there are both pros and cons of expanding the
business in New Zealand market (Turner, Klerkx, Rijswijk, Williams & Barnard, 2016). It is
identified that one of the major pros of this expansion is that it offers an emerging economy to
Hungry Jacks where it can establish a larger customer base. Political environment of the country
is very strong that is also profitable for the growth of this business. Most of the people in this
country like to eat fast food that can increase its sales. As mentioned above, the organization will
be operating the business by using market development and diversification strategies which will

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help the organization to create a new customer base of healthy food lovers (Jell-Ojobor &
Windsperger, 2017). Apart from this, one of the cons is that the country is not technologically
developed and it lacks in the context of infrastructure. This can impact the business of Hungry
Jacks adversely. However, the pros are very strong as compared to cons so it will be good to
expand business in this international market.
Concentrated/Decentralized Strategy
By looking at the operations of Hungry Jacks, it can be stated that in the beginning stage of
expansion, it should adopt centralized strategy of manufacturing. The firm should establish a
single facility which will produce and offer the food products to final consumers. With this, it
can provide its customers with the option of home delivery in which its delivery partners will
deliver the products to end consumers (Luo, Shi & Venkatesh, 2018). After successful
establishment, the organization should go with the decentralized manufacturing strategy and it
should open more outlets for food offering. It will assist the organization to increase its sales and
customer base in New Zealand.
There are various considerations which Hungry Jacks will take while opening its subsidiaries in
New Zealand. One of the major considerations will be that it will search for the most crowded
areas and shopping centers where more population visit for different purposes like shopping or
other entertainment purpose. Moreover, it needs to identify the neighboring competitors so that it
can differentiate its services and products. Additionally, other factors are such as sufficient
space, accessibility, affordability, safety, parking and visibility (Lees-Marshment, Elder, Chant,
Osborne, Savoie, & van der Linden, 2018).
HR Approach
Apart from strategies and market entry modes, Hungry Jacks will pursue an effective HR
approach so that they can find a talented and skilled workforce for its business in New Zealand
(Xi, Block, Lasch, Robert & Thurik, 2018). The organization will use effective processes and
approaches of recruitment and selection to hire restaurant staff. One of the best approaches is the
use of digital sources like online job portals, social media sites etc. Nowadays, people are very
much updated on these job portals and online sites which can provide the information about
candidates with the required skills and capabilities. On these online portals, Hungry Jacks will

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post its job advertisement and job description where candidates will be aware about jobs
(Madanoglu, Alon & Shoham, 2017). This approach will assist Hungry Jacks to find the most
appropriate workforce for its business.
Conclusion
From the above analysis, it can be concluded that the country environment of New Zealand can
provide a profitable business environment to Hungry Jacks. It can be recommended that this
organization should expand its business in this country by using franchising entry mode with
FDI. The above report states a research about New Zealand market where Hungry Jacks is
planning to expand its business. There are various factors which will be beneficial for the future
growth of this organization. There are both pros and cons of expanding its business but it can use
pros to overcome the cons in this country.

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Vandevijvere, S. (2014). Nutritional quality, labelling and promotion of breakfast cereals
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Farrell, L. C., Warin, M. J., Moore, V. M., & Street, J. M. (2016). Socio-economic divergence in
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https://www.hungryjacks.com.au/home
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networks. Handbook of Research on Franchising, 317.

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