Economics and Finance for Business

The report investigates, the comparison between McDonalds and Hungry Jacks. Due to increasing competition in the current food market, it has become important for the experts to examine the business opportunities and market structure of the organizations for the future development.

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Economics and Finance for Business
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1ECONOMICS AND FINANCE FOR BUSINESS
Abstract
The report investigates, the comparison between McDonalds and Hungry Jacks. Due to
increasing competition in the current food market, it has become important for the experts to
examine the business opportunities and market structure of the organizations for the future
development. After the introduction of globalization in the current industry, the availability of
technological and economic opportunities have brought the huge changes in economic and
social situation of the customers. With the increasing business opportunities, the organizations
have started expanding the business in international market so that with the increasing rate of
profitability strong brand image can be developed. Analyzing the market structure of both the
organizations, it has been identified that McDonalds has adopted the strong market structure
compared to Hungry Jacks. On the other hand, it is true that from the last 5 years the company
is maintaining its constant position in the fast food industry. The major dissimilarity regarding
the food products is hungry Jacks provides vegan, which is not available in McDonalds. In case
of developing the strong market structure of Hungry Jacks it needs to focus on developing the
strong market structure.

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Table of contents
1.0 Introduction..........................................................................................................................................3
2.0 Market structure...................................................................................................................................3
Growth strategies.......................................................................................................................................5
Pricing and non-pricing strategies..............................................................................................................7
5.0 Conclusion.............................................................................................................................................8
6.0 Reference list......................................................................................................................................10

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1.0 Introduction
As stated by Kuan (2018), in case of evaluating the emerging market structure of an
industry, the strategic analysis plays an effective role. Using the effective strategic analysis
initiative, it becomes easier for the organizations to grab the attention of large number of
customers. After the introduction of globalization in the current industry, the availability of
technological and economic opportunities have brought the huge changes in economic and
social situation of the customers. With the increasing business opportunities, the organizations
have started expanding the business in international market so that with the increasing rate of
profitability strong brand image can be developed. The purpose of this study is to introduce
beneficial marketing strategies so that the organizations will be able to survive in the
international market. By analyzing the business environment, the growth strategy of two
organizations have been examined. By highlighting the famous companies namely McDonals
and hungry jacks, the marketing strategies and marketing structure of these organizations have
been discussed.
In the year 1955, Macdonald was established in US as a food selling company. Within
few years it has become the fastest growing organization in the fast food industry. With the
increasing market demand, market price of the company has reached
US$163.82(Mcdonalds.com, 2018). It can be assumed that if the company will be able to
maintain its constant growth, it will be easier for the organization to establish its strong position
in the global market. Total numbers of 37200 stores have been introduced in international
market by McDonalds.
Hungry Jack’s is the chain of Burger King Corporation that established in 1971 on 18th
April in Australia (Hungryjacks.com.au, 2018). Within few years the company has established a
competitive image in the fast-food selling industry in Australia. In the year 2017, the market
share reached $37.8 million.
2.0 Market structure
It cannot be denied that using the effective market structure the company has gained its
popularity in the market. With the help of effective delivery service, it has developed strong
customer base. With the increasing customer base, it has reached near about 52 million
customers in international market (Mcdonalds.com, 2018). In case of gaining the loyal
customers, it has recruited a customer support team, where all the needs and quarries of the
customers are being solved. It has been identified that the market structure of the company has
been classified into different competitiveness as well as pricing. There are large numbers
organizations in the market, which are trying to create tough position for the company called
McDonalds. However, in case of maintaining the monopoly business in the global food industry,
it has decided to increase its market power by introducing diversified products in the market. It

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has been identified that McDonalds operates the oligopoly market type. In case of analyzing the
international market strategy of the company, it can be said that it has employed 1.5 million
people in 117 countries. The global sales of the company was $22 billion in 2009
(Mcdonalds.com, 2018). Differebt restaurant brands such as Donatos pizza, Pret A manger,
Boston Market and Aroma Café are being operated by the company. The global products of
Mcdonalds are chicken veggie burger, veg pizza, mozzarella dipper, Burbur Ayam McD and
many more.
Figure: McDonalds Maharaja Burger
(Source: Mcdonalds.com, 2018)
Although, the company has developed its strong brand image in the market, but it
cannot be denied that in the burger selling industry, KFC is an important competitor of
McDonalds. It case of maintaining the strong competitive position in the market, McDonalds
has launched “Maharaja Burger” to give the competition to the ‘Burger King’ of KFC.
Figure: Global market share
(Source: Mcdonalds.com, 2018)
In the above diagram the global market share of McDonalds has been highlighted. it has
been identified from the above diagram organizations like 7-Eleven, KFC, Subway, and Burger
King, McDonalds is keeping its holding position from the year 2009.

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Figure: Hungry Jacks Combo offer
(Source: Hungryjacks.com.au 2018)
Hungry Jack’s Pty Ltd. is being considered as one of the popular fast food organization in
the Burger King Corporation. As the US food chain Burger King will not be able to launch own
brand in the Australian food market, due to this reason in the year 1971 on 18th April hungry
jacks was launched in the Australian market. It has been identified that depending on the
market growth of the company it has been identified that in the year 2017, the market share of
the company reached $37.8 million. Analyzing the product popularity of the company, it has
been identified that it has introduced different types of combos for the Chicken lovers.
In the growth comparison of both the organizations, it has been identified that both the
organizations have established strong positions in the market, however, in case of market
structure, McDonalds has performed well. As it has developed large numbers of stores in the
market and by introducing diversified products, it has grabbed large numbers of customers’
attention. It has helped McDonalds to maintain the competitive position in the market. On the
other hand, in case of hungry jacks, it has been identified that due to lack of diversified
products in the market, the company can face the tough situation. Bringing the diversified
products in the market the company Hungry Jacks will be able to maintain its competitive
position in the foreign market. It is also true that introducing the effective market structure, it
will be able to maintain its sustainable position in the market.
Growth strategies
The food market is one of the most competitive market in all the sector of the global basis. This
is evident from the secondary research which is done using the secondary data for the growth and
development strategies of the company.
3.1 What the business have done or are doing for the growth or expansion
Both the companies have their own share of growth strategies which have helped them to
access the profit and market share of the firm in the span of time. Grant, (2016) states that both Mc
Donald’s and Hungry Jacks are trying to grow their business shares by the using their own company’s
growth strategies (Morley et al. 2012). Mc Donald’s has implemented the Velocity Growth Plan in which

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they have accessed to their pillars of growth to retain, regain, convert their strategies and customers for
better exchange of ideas and to strengthen the customer base in the span of time. The digital growth
and the growth of the delivery experience are one of the chief growth factors for Mc Donald’s.
Rumelt, (2012) states that the growth strategies of Hungry jacks includes the implementation of
a better tagline as well as the inclusion of more items in the menu including organic beef. The overall
strategies of the Hungry Jacks is very basic that does not do much to the growth of the company in
terms of business
The business are actually hoping for an organic growth in the overall business of the firm by the
use of different growth strategies for the development of the new product or achieving the level of
vertical growth in the overall strategies (Kumar, 2016). The competency of the firm are being assessed
with the diversification in the business which is achieved in the case of Mc Donald’s but not that much in
the case of Hungry Jacks.
However, these strategies could be anti-competitive according to the Australian Competition
and Consumer Commission (Australian Federal Government, 2018) because one of the firms has global
presence and caters to a large number of consumers whereas the other is a national based company
with limited presence. The whole of the competition between two companies is unequal (Kumar, 2016).
3.2 Opportunities for growing of business
Johnston & Bate, (2013) states that Mc Donald’s is in a position to capture greater market share
since it is one of the greatest and most booming fast food companies operating on a global basis. The
overall business opportunities in the span of Mc Donald’s is greater than Hungry Jacks. It could grow its
business better by implementing more strategies as well as the greater inclination towards the
expansion of business.

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Figure – Increase in the growth of Mc Donald’s
(source - Rumelt, 2012)
The amount of innovation as well as the strategies involved in the evolvement of the business arenas is
one of the major sectors in which the increase of the business opportunities of business is being
conducted. The overall element of increase in the business of the sector is being done in contrast to
Hungry Jacks which is one of the premium national based companies of the times. The rate of increase is
greater in the case of Mc Donald’s due to their overall market presence and good development and
innovation strategies.
Pricing and non-pricing strategies
4.1 A contrasting pricing strategy for McDonald’s and Hungry Jacks
The products offered by Mc Donald’s as well as Hungry Jacks are similar in nature as they both
cater to the fast food genre and also adhere to the youth of the countries. Mc Donald’s sells burger as
well as other junk items including the beverages that have been a favorite for the people in the longest
time. However, Hungry Tides is specialized in the production of burgers as well as the other forms of
food items that are fast in nature. The overall organization is based upon the manufacture of burgers
and normal junk food which has the taste for the local people of the Australian origin. The company
being one of the natives of the premises knows the taste of the people and therefore majorly focusses
on the needs and demands of the people who are the residents of the nation.
Phillipov, (2013) states that Hungry Tides provides something extra for the customers which are
not provided by Mc Donald’s namely the regional taste in their food as well as the organic beef that is
being used by the company in the recent times.
Both the sectors and companies are under the same umbrella of fast food manufacturing brands
however, both have their own levels of strategies for the growth of the industries and to have the
reasonable pricing for catering to the maximum number of people.
Product Pricing and strategy of Mc
Donald’s
Pricing and strategy of Hungry
Jacks
Burgers $5.85 $6.20
Meal (Large) $11.30 $11.60
Chicken Meal (Large) $10.35 $10.60
Family Boxes $27.95 Null
Figure – Comparison of prices of the various meals and burgers
(Source – Nagle & Müller, 2017)

8ECONOMICS AND FINANCE FOR BUSINESS
The pricing strategy of Pizza Hut on the affordable side in comparison to the Hungry Jacks and
also the fact that they both have their own loyal customers that do more good to them. In addition, they
provide more business opportunities and ventures to the overall facets of the company and to make
sure that the pricing strategy that is being followed by Mc Donald’s has both access to the individual and
family means of the company.
Tassey, (2012) states that Mc Donald’s focusses on the pricing and products that are anchored
to the people who are best for the people who want to enjoy the food and also have their pricing level
set in terms of the pricing that is being adjusted for the pricing of Hungry Jacks. However, in contrast to
Hungry Jacks the pricing of Mc Donald’s has a contrast to its level of freshness and quality which
according to customers is better for the national company.
Jones, Gregory & Kervin, (2012) states that in USA has also experimented this kind of a pricing
strategy where the national companies have fared better in the minds of the customers due to their
fresh food and also catering to the fact that both of them have similar food items and are advantageous
to one another.
4.2 Non-price strategies used by Mc Donald’s and Hungry Jacks are similar but distinct
Product – McDonald’s has a large number of veg and non-veg Ala carte and combo items whereas
Hungry jacks has all the items in addition to the breakfast menu and vegan food items menu.
Promotion – The promotion of McDonald’s is done on a global basis with prominent adherence to both
the offline and online mode in terms of their promotional strategy (Goodman & Robison, 2013). The
overall strategy of promotion is greater in terms of McDonald’s due to their online and offline presence
and Hungry Tides has limited access to it as it is a national based brand.
Place – The place of service is worldwide in case of McDonald’s whereas it is national in the case of
Hungry Tides
4.3 opportunities that can be used by McDonald’s
 It can manufacture some vegan items to cater to the vegan population and give tough
competition to Hungry Jack
 The regional flavors and items can be included to give the natives a taste of their own
culture in an American cuisine.
 Organic food items can be included in the overall cuisine of the time and also help to
have the customers a better health and sustainability.
 The regional population customer base can be taken away from Hungry Tides when fed
with the right kind of food and promotional strategies.
5.0 Conclusion
In the above study, it can be concluded that both the organizations namely McDonalds
and Hungry jacks have developed its strong business impression on the customers mind,
however, in case of analyzing the strong market structure and growth strategy of the company,

9ECONOMICS AND FINANCE FOR BUSINESS
McDonalds has performed pretty well. In the market structure it has been identified that with
large geographic area, McDonalds serves large number of customers in the global market.
growth trend of both the organizations have been examined in this study, where it has been
identified that from the year 2007 McDonalds is maintaining its constant growth, however due
to smaller customer base and lack of diversified products, slower growth has been shown in
Hungry jacks. Analyzing the pricing strategy of both the organizations, it has been identified
that the product range of Hungry Jacks is little high compared to the price of McDonalds. Both
the organizations aim to provide standard quality of food in the lower ranges, however, due to
the pricing strategy, McDonalds has got the higher level of appreciation from the market. On
the other hand, non-pricing strategies of both the organizations have been highlighted through
the study. In this comparison, it has been identified that in case of products McDonalds
provides non-veg and veg products. Similarly Hungry also provides non-veg and veg foods. The
major dissimilarity is hungry Jacks provide vegan, which is not available in McDonalds.
Comparing the geographic area, McDonalds is a global brand where Hungry jacks is the
nationalized brand. It has been identified that Hungry Jacks provide the breakfast option which
is not available in McDonalds. However, depending on the entire comparison, it has been
identified that McDonalds is in far better position than Hungry jacks in the market and due to its
strong market structure and growth strategies, it is being able to maintain monopoly structure
in the market.

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6.0 Reference list
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revolution. Routledge.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
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Johnston, R. E., & Bate, J. D. (2013). The power of strategy innovation: a new way of linking creativity
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Jones, S. C., Gregory, P., & Kervin, L. (2012). Branded food references in children's
magazines:‘advertisements’ are the tip of the iceberg. Pediatric obesity, 7(3), 220-229.
Kuan, J. (2018, July). Strategic Analysis of Nonprofit Production. In Academy of Management
Proceedings (Vol. 2018, No. 1, p. 17926). Briarcliff Manor, NY 10510: Academy of Management.
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Moutinho, L., & Phillips, P. (2018). Strategic analysis. In Contemporary Issues in Strategic
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Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more profitably .
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Phillipov, M. (2013). Resisting health: Extreme food and the culinary abject. Critical Studies in Media
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Rumelt, R. P. (2012). Good strategy/bad strategy: The difference and why it matters. Strategic
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