Analysis of Global Marketing and Business

This assignment requires students to analyze and discuss various topics related to global marketing and business, including international market research, global marketing strategies, and cultural differences in marketing. Students will also be expected to provide examples from real-world companies and case studies. The assignment aims to develop critical thinking and problem-solving skills in the context of globalization.

INTERNATIONAL MARKETING
A report over the prospects of global expansion for the five guys’ burger
restaurant
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Executive summary
This report will focus over the prospects of global expansion for the Five Guys Burgers
international restaurant. It is one of the large restaurants in United States of America. Main
purpose of this report is to present a scenario of some potential market where this business
enterprise can expand their operation including their other successful international ventures.
External and internal assessment has been done to presents a clear picture of the company and
the targeted international markets.
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Table of Contents
Executive summary.........................................................................................................................2
Introduction:....................................................................................................................................4
Analysis of the macro and competitive factors which impact global fast-food Industry................4
International competitive factors.....................................................................................................7
Analysis of internal business environment of Five Guys Burgers international.............................8
Summative statements over the SWOT analysis on Five Guys using Porter's value chain:...........8
SWOT Analysis based on the above-mentioned points of the five guys burger international
restaurant:........................................................................................................................................9
Summary of the findings:..............................................................................................................10
Evaluation of the potentiality target markets of Japan:.................................................................11
Evaluation of the potentiality target markets of India:..................................................................12
Evaluation of the potentiality target markets of Singapore:..........................................................12
Evaluation of the potentiality target markets of China:.................................................................12
Recommendation to Five Guys Burgers international for an appropriate global market: Japan
will be the proper place for expanding their business ventures successfully. The socio- economic
structure will be favorable for this establishment..........................................................................13
Analysis and justification for the chosen country:........................................................................13
Conclusion.....................................................................................................................................13
Reference List:...............................................................................................................................14
Bibliography..................................................................................................................................15
Appendix........................................................................................................................................17
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Introduction:
The five guys’ burger international is a well renowned burger company which has been serving
their service in different countries since 1986. This is a fast casual restaurant situated in
Arlington, USA. In today's competitive business environment this restaurant needs to expand
their service in some dominant and large food market oriented countries like Singapore, Japan,
India etc for gaining more revenues and to provide strength to the brand value. This report will
present the business environment of those targeted countries and will provide a clear concept
about its socio-economic factors for running the food company in successful way.
Consultancy brief:
Mc Ginger is a well renowned company for providing solutions to its clients regarding
international business expansion. This consultancy mainly dealing with the food or restaurant
based companies. Mc Ginger started their venture in the year of 2006, till then to present time
most of the clients are satisfied with the fruitful results for consulting with Mc Ginger regarding
their business expansion in international domain. The main objective of this establishment is to
provide one stop solution to reflect their efforts in front of the world.
Analysis of the macro and competitive factors which impact global fast-food
Industry
Global macro factors for fast food industry by using the PESTLE analysis tool:
The global fast food industry is growing day by day in all over the world (Cateora et al. 2009).
In order to expand a business in international domain a company needs to scrutinize about the
various factors of external environments of business (Gillespie and Hennessey, 2011). This
report will present such kinds of external macro environmental factors. To complete the analysis
PESTLE tool will be used in structural process. The analysis tool PESTLE is an acronym form
of some important Political aspects, economical aspects, social aspects, and technological
aspects, legal and environmental aspects. These all factors is quite helpful to understand the
external business environment, specifically this type of analysis benefited business owners to
expands their trade function in overseas area in with some certain positive attributes. The Five
guy international is aiming to enlarge their operation in some selected countries; Japan, India,
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Singapore and China. Therefore in jumping into the direct analysis it is important to mention the
macro and competitor factors related with the overall fast food industry.
Cultural forces:
The cultural forces have greater impact on the global fast food industry; different kinds of forces
are involved with the cultural factor.
● Demographic Forces: This force helps any industry too study of people, who are the
pillars of strong economy and their area of their living place to understand the situation of
the market (Ghauri and Cateora, 2010). Therefore it is important for the food industry to
analyze the demographic forces of the area where they want to expands their service or
already existing with their business venture.
● Changing the age structure of the population: One of the important changes in the age
structure of the population is another vital factor for analyses to expand business
operation by any industry.
● Changing family structure: Another important factor is the trend of changing of family
structure. In present time the nuclear families have evoked day by day, and it has a great
impact over the business, like ways the psychological pattern and the purchasing
behavior also changed on basis of the structure of any family (Hollensen, 2012).
Therefore it is also a major part for any business enterprize to keep in concern before
stated a venture in a news place or to carry their business operation in existing place.
● Education: The fast food industry also impacted by the level of education of the society.
As the medium of communication is now changed its way in drastically manner.
Maximum business enterprises are using the Digital communication, so in order to access
all those tools the service user need to be enough educate (Keegan and Green, 2013).
Economic Forces: The forces of economic field have kept a major impact over this fast food
industry; as because the level of economy of the people is main thing for any kind of trading
operation. The manufactured product or service need to be consumed by the people, otherwise
the company in low per capita income nation will face many critical challenges with their loss
accounts (Lee and Carter, 2012).
Natural Forces: The global fast food industry is also impacted by the natural forces. The natural
forces are required to carry out the business successfully. Adequate amount of water and the
quality of the soil are necessary for carrying the others function of any trading operation.
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● Shortage of raw materials: Shortage of raw materials is a threatening issues for the
factory of any industry. Therefore it can be understood those issues any also impact the
global fast food industry.
Technical forces: The technical factors are other vital points for analysis before starts any
business venture. As because the world has become globalized now a day’s business operation
need to adopt the most updated technology in their operation. Therefore it can be stated that fast
food industry also impacted by these technical forces.
Political Forces:
● Enforcement: Enforcement of government is determined various kinds of legal
implications in any society, Like some government has banned the use of plastics bag.
These kinds of situation is directly impact the fast food industry in perspective of giving
delivery of take away food item to the customers.
● Concern for ethics: The ethics set by the government impact all kind of industry
including the global fast food industry in terms of quality and healthy food serving to the
people.
● Legislation: Different kind of rules and legislation is in force for the Global fast food
industry. They need to maintain a minimum numbers of staff , customer service, hygiene
quality of food items.
International competitive factors
Some of the competitive factors related with the global fast food industry are mentioned by
using the porter's five porter’s model. The main five elements of this model are need to be
applied by the fast food industry owners. Those are competitive rivalry, threats of substitutes,
threat of new entry, buyer’s power, and supplier’s power.
● Competitive rivalry: The competitive rivalry of the fast food industry is increasing now
days. The fast food industry needs to analyze all these factors in order to carry out their
venture in successful manner.
● Threat of substitute: the fast food industry is also facing some threats from its other rival
companies from same industry.
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The above mentioned factors are the external factors which need to be analyzed by the fast food
industries to gain the advantages from the competitive business environment.
In order to carry out the internal assessments by the fast food industry in their global
competitive domain are mentioned below:
● Threat of new entry: The threats of the new entrants from the same field occurs some
challenges for the global fast food industry, As different kinds of new entrants are
emerging in the industry then it is a vital task for the global fast food industry to knowing
about the new competitors entrants in the market (Usunier and Lee, 2012).
● Buyer’s power: The power of the buyers is also important to get the competitive
advantage. The porter’s five forces model is emphasized over the power of the buyers for
every type of company. Buyers have the power to determine the cost of the product.
These things must have to analyze by the fast food industry to get the advantage in
competitive arena.
● Supplier’s power: Suppliers are the pillar of the fast food industry as because the raw
materials like the bread and the others staffs required for carrying the fast food industry.
In this prospect the importance of suppliers can be understated. In order to carry out the
venture in smooth way the owners of the fast food companies need to do negotiation with
the suppliers with some diplomatic strategies.
Analysis of internal business environment of Five Guys Burgers international
Summative statements over the SWOT analysis on Five Guys using Porter's
value chain:
Porter's value chain is emphasis over the inbound and outbound logistics, marketing, sales and
other kinds of operations, which are related with the quality service offering by a firm. Here the
internal business environment of the five guys’ burgers international will be presented by doing
analysis with the porter value chain. The main elements of this model are infrastructure of the
firm, human resource management, technology, procurement, which are considered as the main
activities of the five guys burgers international.
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Firm infrastructure: The infrastructure of the firm is well structured. The inter-departmental
communication is strong enough to carry out the functions in systematic way. The functional
process of the departments is improving day by day for its modern technological advancement.
Human resource management: Management of staffs by standard procedures is a strong base
for the five guys’ burgers international. All the employees are treated with equality and the
amount of wages is same for each and every single employee appointed for same task. On other
parts the psychological factors of the employee also asses by the administration of the Five guys
international restaurant.
Technology: All the system of this organization are based on the digital technologies. The
process is stated with the billing process to communicate with the external stakeholders are
depending on the various kinds of digital technologies.
Service quality: The service quality of this restaurant is appraised by its service users. As
because this company has already established a strong brand image in the area where they are
operating their service, this advantage attracts more customers. The service quality is one of the
positive traits of the five guys burger international restaurant.
Inter departmental operations: Interdepartmental communication among its all department
can be considered as the backbone of its sustainability. Various kinds of departments are
presents in this particular restaurants to carrying their ventures in successful and satisfied way.
SWOT Analysis based on the above-mentioned points of the five guys burger
international restaurant:
Strength ● Inter- departmental communication
● Quality service
● Upgraded technology
● Good human resource management
● Good infrastructure
● Sufficient logistics support
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Weakness ● Emerging competitors in the market
● Less money acquired by the target
group of consumer, like students
● Training to the staffs by a good team
leader
● The relationship management by the
staffs
Strength and weakness of the five guys’ burger international
Opportunity ● Test of the burger
● Hygienic quality of the food items
● Good testimonies from the great
personalities
● Less price in comparison with the
other rival brands
Threats ● Propaganda by the competitors
● Negative news spread by some leading
journals
Opportunity and threats of the five guys Burgers
Summary of the findings:
All the above mentioned factors here depicted about the quality service by the five guys burgers
restaurant. By using different kinds of analytical tool like PESTLE for analyze the external
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macro factors of business and the SWOT has been used for the internal business environment
analysis. The performance of this fast food industry is above average on compare with the others
rival industries of this same industry. Moreover by presenting the assessment over the global fast
food industry’s macro environmental factors it is easy to understands that what kinds of actions
should be taken by the five guy’s restaurant in order to abide all the constraints related with the
external business environments. This all analyses will helps this company to expand their
business ventures in the below mentioned countries.
The potentiality for expanding the business in international domain by a company required some
pre-venture works. Those things need to analyze with twelve c’s of market expansion. The below
mentioned part is analysis of four countries socio- economic culture by using this 12c’s
framework for international marketing.
Evaluation of the potentiality target markets of Japan:
Japan is one of developing country of the East Asia. This is located in the bank of pacific oceans.
Japan has been considered as the most developing countries. It is the fast growing country in
perspective of development. This country is well known for its rapid cope-up techniques to
overcome from the crisis situation because of its upgraded technological advancement. If the
target market of the five guys’ restaurant is Japan country, then it is quite possible for them to
run their business enterprise in very successive manner. The socio-economic structure of the
Japan country is standard. The lifestyle of the citizen is much improved and the per capita
income ratio of the people is high. In simple way it can be suggested that the Japan is a country
with most upgraded technology will facilitate the five guys restaurant service in profitable way.
The high income of the citizen of this country is also a positive side for each and every business
enterprise to run their business venture in successive way. Different parts of the twelve cs of
international market are the culture/consumer behavior, country, channels, concentration,
choices, consumption, commitment, currency, choices, communication, contractual obligation,
captivity to pay, caveats. These all factors are not matched with the socio-economic structure if
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this country but some of the factors are important among those, like the currency, and cultures.
The cultures are matched with the requirements of the five guys’ restaurant.
Evaluation of the potentiality target markets of India:
After evaluating the twelve C’s of the international market, the scope for enhancing the business
ventures in the India is responsive in positive manner. The socioeconomic structure of this
country is not much higher by comparing with the developed country like the Japan. Although
the cafe culture now emerging in this country because of the mass culture evoked by various
kinds of media. Teenager to mid aged people all can be the target audience for the five guys’
international burger restaurant.
Evaluation of the potentiality target markets of Singapore:
Capacity to pay, currency and the means of communication are such kinds of factors of these
twelve c’s frameworks that are matched with the requirements of this restaurant
Evaluation of the potentiality target markets of China:
China is one of the largest developing economies. All households of this country are engaged
with the industrialization. There is no scope for the agriculture but that is not the requirements
o0f this restaurant. After matching the criterion of the twelve cs it can be understood that the
chine will not be the proper place for expanding the business operation.
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Recommendation to Five Guys Burgers international for an appropriate
global market: Japan will be the proper place for expanding their business
ventures successfully. The socio- economic structure will be favorable for this
establishment.
Analysis and justification for the chosen country:
As per the above discussed details it can suggest that the socio-economic structure of Japan will
help this organization to run their venture in successive way. The requirements for the five guys
restaurant will match with the culture of Japan.
Conclusion
As a conclusion it can be stated that the overall report has emphasized on some important
factors related with the international business expansion of the Five guys restaurant. Different
kinds of internal and external analysis have done for shedding light on the opportunities to find
out the appropriate market for the global expansion.
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Reference List:
Cateora, P. R., Gilly, M. C. and Graham, J. L. (2009) International Marketing, 14th ed.
(International Student Edition), New York: McGraw Hill
Gillespie, K. and Hennessey, D. (2011) Global Marketing, 3rd ed., Canada: South-Western,
Cengage Learning
Ghauri, P. N. and Cateora, P. (2010) International Markerting, 3rd ed., Maidenhead: McGraw-
Hill
Ghauri , P.N., Cateora, P.R. (2014) International Marketing., 4thEdn, McGraw-Hill Education /
Europe, Middle East & Africa
Hollensen S, (2012) Essentials of Global Marketing, Pearson. 6th Edition
Hollensen S. (2016) Global Marketing , 7THEdn, Pearson
Keegan, W. J. and Green, M. C. (2013) Global Marketing, 7th ed. (Global Edition), New Jersey:
Pearson Education
Keegan,W.J. (2013) Global Marketing Management , 8thEdn , Pearson
Kotler, P., Keller, K. L., Brady, M, Goodman, M. Hansen, T. (2012) Euro Marketing
Management, 2nd ed., Pearson Ed.
Lee, K. and Carter, S. (2012) Global Marketing Management, 3rd ed., New York: Oxford
University Press
Mead, R. and Andrews, T. G. (2009) International Marketing, 4th ed. Chichester: John Willey
Ritzer, G. (2013) The McDonaldisation of Society, 7th ed. London: Sage.
Hackley, C. (2009), Marketing: A Critical Introduction, SAGE
Usunier, J-C. and Lee, J. A. (2012) Marketing Across Cultures, 6th ed., Harlow: Pearson
Education
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Appendix
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