Economics and Finance for Business: A Case Study of McDonald’s and Hungry Jack

Running head: ECONOMICS AND FINANCE FOR BUSINESS
ECONOMICS AND FINANCE FOR BUSINESS
A case study of McDonald’s and Hungry Jack
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ECONOMICS AND FINANCE FOR BUSINESS 1
Abstract
The two selected organisations as case studies for this particular study are McDonald’s and
Hungry Jacks belonging to the fast food industry. The aim of the report is to carry out a
comparative analysis of the strategies undertaken by the organisations. It has been observed
that both McDonald’s and Hungry Jack also concentrated on this strategy and has largely
depended on product diversification or the new product development or product
diversification. With a detailed evaluation from the various secondary sources, it has been
found that McDonald’s attained an increase in the market share not only by the means of
offering different kinds of food but also by other factors like building a true leadership within
the organisation and transforming the in-store product offerings to its customers. The suitable
growth strategies of McDonald’s include better promotional technique of the brand that
implies the fact that why the particular brand is better than other brands in the business. it is
recommended that Hungry Jack could come up with a kind of membership car that would
directly or indirectly help to increase the customer base. The company has to come up with
the idea of product diversification and can provide the option of other fast food and not only
being limited to the burger family. The scope of this report is to provide ample information to
the companies in the fast food industry to understand the present situation of the business and
at the same time to derive a better picture of the industry in the recent time.

ECONOMICS AND FINANCE FOR BUSINESS 2
Table of Contents
1. Introduction:...........................................................................................................................3
2. Market structure in the fast food industry:.............................................................................4
3. Growth Strategies:..................................................................................................................6
3.1 Expansion strategies of McDonald’s and Hungry Jack:..................................................6
3.2 Opportunities for growing the business:..........................................................................7
4. Pricing and non-price strategies:............................................................................................8
4.1 A contrast of the pricing strategies of the selected organisations:...................................8
4.2 Non pricing strategies of the selected organisations:.......................................................8
4.3 Opportunities to be exploited by Hungry Jack:................................................................9
5. Conclusion:..........................................................................................................................10
Reference list:...........................................................................................................................11
Appendices:..............................................................................................................................13

ECONOMICS AND FINANCE FOR BUSINESS 3
1. Introduction:
The aim of the report is to carry out a comparative analysis of the strategies
undertaken by the organisations in a market in order to differentiate itself from the other
existing competitors in the market. The two selected organisations as case studies for this
particular study are McDonald’s and Hungry Jacks belonging to the fast food industry. Both
these companies are famous for their burgers and have captured the markets effectively
among its other competitors. McDonald’s has been known to be the second largest fast food
restaurant and has established its market all over the globe with over 37, 000 stores and has
been serving hamburgers to its customer base (Mcdonalds.com.au, 2018). Established in
Innaloo, Perth in 1971, Hungry Jack’s is the Australia owned company and has more than
420 restaurants in the country (Hungryjacks.com.au., 2018). The company has the vision of
serving the best quality food to its serving community with all real integrity.
In order to carry out the research, the major focus of methodology was made on the
secondary research and the detailed literature review and the secondary data collection have
been done with the help of the secondary data available over the internet and from the library
database. It has to be included in this context that although regular visits to the chosen fast
food organisations are being made but no such primary data has been collected to support the
analysis of this study.
The report provides an overview of the market structure of the selected organisations
in the fast food industry will be given. In the next section, the growth strategies of the
business organisation will be discussed along with the pricing and the non-pricing strategies.
In addition to this, the present opportunities for the organisations to explore in the recent
market will also be discussed.