Business in Global Context

Running Head: GLOBAL BUSINESS 1
Business in Global Context

GLOBAL BUSINESS 2
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

GLOBAL BUSINESS 3
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

GLOBAL BUSINESS 4
$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).