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To conduct a strategic assessment of Five Guys in terms of their external and internal environment, and to identify strategic options and recommendations in which Five Guys can strengthen their Europe market position.
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Added on 2020-10-05
(Doc) Strategic Management Assignment Solved
To conduct a strategic assessment of Five Guys in terms of their external and internal environment, and to identify strategic options and recommendations in which Five Guys can strengthen their Europe market position.
Added on 2020-10-05
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STRATEGIC MANAGEMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1EXTERNAL ANALYSIS................................................................................................................1PESTLE analysis.........................................................................................................................1Five forces...................................................................................................................................3INTERNAL ANALYSIS.................................................................................................................4IDENTIFICATION OF COMPETITIVE STRATEGIES...............................................................6STRATEGIC DIRECTIONS...........................................................................................................6CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
INTRODUCTIONStrategic management is referred as continuous planning, analysing, monitoring andassessment is necessary for organization to accomplish its objectives and goals. The presentreport will discuss about external and internal opportunities and threats which are faced by FiveGuys. This enterprise is an American fast casual restaurant chain laid focus on hot dogs,hamburgers and French fries which is headquartered in Lorton, Virgania in United states. It willarticulate about current positioning of this organization with application of external macro andmicro environment. This report will provide strategic recommendation which could be proposedfor business and it will determine competitive strategies with application of Porter's Genericstrategies. There will be consideration of future methods of strategic directions and expansionavailable to business.EXTERNAL ANALYSISPESTLE analysisPolitical factors: The political factors has huge impact on fast food industry wheregovernment has desire of huge influence over the business and announcement of differentregulations for taking care of people's health. There is requirement of checking standards ofcleanliness in restaurant along with following rules such as tax rates and labour laws as well. Inthe same series, government will check food and ingredients quality which are used for foodpreparation as cholesterol could impact people's health. Simultaneously, they will suffer fromobesity and other stomach issues as well. There are various restaurants which does not takeproper care of kitchen where food is cooked and dishes are washed. The preservation of food isnecessary through keeping place very clean and tidy (Teece, 2019). The Belgium governmenthad imposes employment law for safety rights of employees along with environmentalregulations for adhering with environmental policy and following restrictions of trade withcontext of tariffs and political stability for maintaining food standard.Economic factors: The economic factor is fully concerned with availability ofpurchasing power in economy as food is very essential part of everyday lives where trends areimpacting purchasing power could have strong impact on products are essential for food whichmight be perceived as luxury items. The government fiscal policies could impact business of thisparticular industry. In case, tax is imposed on consumer items then this restaurant would enhancerate of items of food. The fluctuations in inflation rate could impact Five guys as ingredient's1
price could be raised and with context of this outcome, this restaurant would have increment inrate of food items which could directly minimise profit margin. With presence of economicalterations in other countries, this could provide bad impact on restaurants as it has variousoutlets in other countries as well along with risky economic market could be referred as majorthreat for this particular industry (Ansoff and et.al., 2019). Within Europe, economic situation isstable so business of this Five guys is strong as it would flourish in rapid aspect.Social factors: In social sector, people are educated as in present era, people are veryhealth conscious related to food products. They observe for food quality along with growth rateof population is referred as major factors for business with increment in population andincrement in restaurants. In the present scenario, people are aware about food products and theycheck each of them which are used for preparing food. As this is fast food restaurant but thismarket comprises people who are health conscious and health food is offered through restaurantbut people get attracted towards high fat food (Köksal and İlkuçan, 2019). With thisconsideration, food is prepared as per choice as this has opportunity to attain growth with contextto purchase fast food rather than cooking at home.Technological factors: There are various famous restaurants which uses IT technologyand television for purpose of publicity. The TV channel is very expensive so websitedevelopment and specifying each detail of food products online and to attain information withfood availability (Huth and Düerkop, 2019). Simultaneously, this will improve inventory systemfor appropriate updation of clients as Five guys will use cellphones through sharing SMS relatedto this franchisee and offering incentives to its clients. The activities of research anddevelopment would be carried and increment in business automation.Legal factors: There are different agencies of government which are operating for dailysupply along with food product's quality. There is implementation of particular regulations andrules for controlling provision and supply of food products in market. The restaurant has need toface multiple regulations not only related to food along with welfare and wages of theiremployees. Furthermore, there is requirement of following every rule which could create lawfulatmosphere in particular area where food quality must be high and healthful for people and onewho undertakes employees welfare. Environmental factors: There are various ecological factors which are implied onconsumers of restaurant along with referring to environmental issues. There are multiple2
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