Grill'd SWOT Analysis & External Factors

This assignment analyzes the external factors affecting Grill'd, an Australian burger chain. It delves into a SWOT analysis, identifying strengths, weaknesses, opportunities, and threats. Key external factors discussed include legal and regulatory issues, competition from giants like McDonald's and Burger Jack, and the potential for market expansion. The analysis helps understand the challenges and opportunities Grill'd faces in its growth journey.

Marketing and Management

Executive summary
The century is changing and with the change, in the century the competition in the market is
increasing as maximum numbers of businesses are getting involved in the businesses. In the
competitive world, each and every company is willing to form the strategies that can help the
company in achieving the objective and success. This is the reason most of the companies
perform the activity of external environment analysis that helps in making effective strategies.
The report reflects the external analysis, opportunities, and threats on an Australian company,
Grill’d.

Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................2
Case background..............................................................................................................................3
External environment.......................................................................................................................3
Environmental factors..................................................................................................................4
Political trends.........................................................................................................................4
Economic growth and stability................................................................................................4
Social-cultural trends...............................................................................................................5
Technology advancement........................................................................................................5
Legal and regulatory issues.....................................................................................................5
Competition.............................................................................................................................5
Summary of opportunity and threats...............................................................................................6
Opportunities...............................................................................................................................6
Threats.........................................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
The business environment is a marketing term and it defines as a factors or forces that affect a
firm's ability to build and maintain a successful relationship. The external environment factors
are those outside factors that create the impact on the organization ability to conduct the
function. The report reflects the external factors that affect the working of the Australian based
company. The company selected for the analysis is Grill’d, an Australian food chain that is
specialist in burgers.

Case background
The company came into the existence in the year 2004 by Simon Crowe. The company opened 5
restaurants by the year 2005 and from there the company started opening more and more outlets.
There were 35 restaurants in the year 2010 and the number increased in the year 2013 with 125
restaurants. The company provides the burgers of different variety in vegetarians and non-
vegetarians. The company falls in the food and beverage industry which is continuously growing
from past few years. The company is not having the international outlets as the company is
available in the local regions of Australia (Grill’d, 2017).
Grill’d targeted the youth, teenagers, family, and adults who like to consume healthy burgers and
this is the competitive advantage of the company. The company target both male and female.
Along with this, the company provides the products and services at the moderate prices and this
is the reason the company believes in targeting the middle and high-income group people.
External environment
Every business doesn’t matter big or small operates in the marketing environment. The
marketing environment includes the internal and external environment (Lamb, Hair & Daniel,
2012). The external factors create the direct or indirect impact on the working and can influence
the decision-making of the company. It is essential for the business to conduct the external
environment analysis as this can affect the profit, image, positioning, future and present
existence (Wheelen and Hunger, 2017). After considering the external analysis the company can
bring the changes in the strategies.

Environmental factors
PESTLE is a framework of macro-environmental analysis used for the purpose of the
environmental scanning components of strategic management (Heizer, 2016). Some of the
Grill’d external environmental factors are discussed below: -
Political trends
The political factors include the government obligations, policies and plans along with this it
includes the tax law, employment law, and licenses (Rastogi & Trivedi, 2016). Grill’d have to
follow all the government regulations and policies. The company makes use of the beef for their
dishes and they claim that they make use of good quality beef which directly comes from their
farms. Still, the company has to face some of the restrictions from the government side that
impact the working of the company and influence their decision for growth.
Economic growth and stability
The major economic factors include inflations rate, deflation, the purchasing power of
customers, unemployment rate and many others. Economic growth and stability create the
impact on business. The fast-food industry has a good presence in the market of Australia and
this is the reason company achieved the growth in the market. The GDP per capita of the country
is $56,135 which shows that the purchasing power of the country is moderate and there is growth
in the GDP of the country which shows that the living standard of the people is continuously
increasing. The change in the living standard affected the company wage slabs, the company
have to pay more amounts to the employees.

Social-cultural trends
The demand of the fast food is increasing but on the other hand, people are becoming educated
so they like to consume only healthy food with this the sale of the product increases because
Grill’d promise that they provide the healthy food. The change in the preference of the customer
can affect as the company only provide burger which might force the customers to switch. The
change in the weather might also affect in summers the customer mostly like to consume drinks
instead of a burger.
Technology advancement
Grill'd utilize the benefit of technology for marketing the products as the company take the
benefit of the internet for advertising the products and services offered on YouTube, Facebook,
and LinkedIn. This helps the company in enhancing the sales and revenue along with this the
company should make use of technology in manufacturing different dishes which enhance the
growth, sales and become the competitive advantage (Sun, 2016).
Legal and regulatory issues
The legal and regulatory issues affect the growth and expansion of the company. Grill'd is
looking to expand the business in the potential market but due to the legal issues, the company
has to rethink the expansion plan. The company has to deals with some obligation as they are
making the use of non-biodegradable substances for offering the product to the customers.
Competition
The major competitors of Grill’d are Burger jack and McDonald’s. These companies are the
leading and multination companies along with that these companies acquire the largest market
share. These companies affect the Grill’d in expansion, growth and in acquiring the market.

Summary of opportunity and threats
Opportunities and threats come under the external environment analysis. Grill'd is growing in the
market of Australia but now the company should grab the opportunities and take steps to
safeguard the company from a threat (Krishnaswamy, 2017).
Opportunities
 Grill'd have an opportunity to bring the diversification of the products that they are
offering to their customer and potential customers. The company can add new flavors to
their menu that are going to attract new customers for the company.
 The opportunity to bring improvement in the service quality of Grill’d is still present. The
company should ask for the feedback and suggestions from the customers so that they can
bring the modification in the products according to the needs of the customers.
 The company has a vast opportunity of the market development as the company is
operating the business in Australia and it is high time that the company should expand the
business outside the boundaries (Grant, 2016).
Threats
 The company is facing threat from the competitors (McDonald's and burger jack) as these
competitors make use of the innovative technology which is becoming a threat to the
company. The competitors of the company have good market share due to this the
competition became aggressive.
 The new entrances in the market are one of the threats that might affect the company.

Conclusion
The report talks about the external factors that affect the working of the company. The company
on which the analysis is done is Grill’d. The company should make use of the innovative
technology to face the competitors. The discussion reflects that the company should grab the
opportunity to achieve the growth and success.

References
Grill’d, 2017, Grill’d, viewed on 6th January 2018, https://www.grilld.com.au
Lamb, WC, Hair, FJ & Daniel, 2012, Essentials of marketing, Seventh Edition, America.
Rastogi, N & Trivedi, MK 2016, “PESTLE technique”- A tool to identify external risks in
construction projects, Journal of engineering and technology, vol.3, no.1.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Sun, D.W. ed., 2016. Computer vision technology for food quality evaluation. Academic Press.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Krishnaswamy, S., 2017. Sources of Sustainable competitive Advantage: A Study & Industry
Outlook. St. Theresa Journal of Humanities and Social Sciences, 3(1).