Strategic Management Assignment - Five Guys
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Added on 2021-01-02
Strategic Management Assignment - Five Guys
Added on 2021-01-02
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Strategic Management
Executive SummaryThis report discusses about Five Guys which is an American fast food restaurant which mainlyfocuses on selling of hot dogs, French fries and hamburgers in various countries. Five Guys wasfounded by Jerry and Janie Murrel in 1986. The key challenges that Five Guys has to face whileentering the in the Italian markets. This will discuss about the factors which exists in theenvironment as a whole rather than in a particular segment or a region. To study the Macroenvironmental factors Five Guys uses PESTLE analysis to determine the opportunities andthreats available in the macro environment of any organization. To study the microenvironmental factors of Five Guys uses Porters five forces to determine the number of forcespresent in the Italian food markets. This report will also discuss about the Value chain analysisthat will provide a tool for Five Guys in identification of the activities within and around the firmand these activities will also assess the organizations competitive strength. Food value chain willprovide Five Guys a sequence of activities in creating and building the value from the stage ofproduction to distribution through processing of food and beverages. In this Five Guys goes forvarious competitive strategies to face the competition in Italy, but the best competitive strategythat will help Five Guys to face and stay competitive is Porter's Generic Strategy. Porter'sgeneric strategies describes how would a company could achieve its competitive advantagewithin a chosen market. Five Guys could use four generic strategies like cost leadership,differentiation, cost focus, and differentiation focus to achieve its competitive advantage and facethe tough competition in Italian food market. This report will also shed light on the variousmethods of expansion of Five Guy's business in Italy.
Table of ContentsINTRODUCTION...........................................................................................................................1External Environmental Analysis:...................................................................................................1Internal Environmental Analysis: ...................................................................................................3Competitive Strategies.....................................................................................................................5Strategic Directions: .......................................................................................................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONFive Guys is an American fast food restaurant which mainly focuses on selling of hotdogs, French fries and hamburgers in various countries. Five Guys was founded by Jerry andJanie Murrel in 1986. Its headquarter is in Lorton, Virginia, United States. It serves more than15,00 locations across the world. Five Guys serves in the food industry. Food industry is one ofthe largest industry in the world, the businesses or organizations that produce, manage, organize,regulate and distribute food and beverages comprises the food industry. Before the industrialrevolution there were only few companies that were dealing food and beverages and nonalcoholic bevarege products. An important development in the food industry took place with theprocessing and preservation took place through canning process in 1810 by Persian Chef NicolasAppert. But after world War 1st there had been a huge growth in food industry especially in U.S.The key challenges that Five Guys have to face are minimal menu, poor quality and errors arethe challenges which are faced by Five guys. Now Five Guys is willing to expand the business inItaly. This report discusses about the current strategic position of the organization and thestrategic recommendations for expanding the Five Guys business in Italy.External Environmental Analysis:Macro environmental factors: These are the factors which exists in the environment asa whole rather than in a particular segment or a region. To study the Macro environmentalfactors PESTLE analysis is the best way to determine the opportunities and threats available inthe macro environment of any organization (Barney., 2016). Political factors: The political conditions of Italy is not good because economy is shaken totallyin Italy and Italian government is trying their best to grow their economy and this resulted in thepolitical instability in Italy. Italy was known as the one of the richest country in past and wasalso a renowned nation of Europe but has suffered a lot due to economic downturn and thisresulted in the high unemployment rate in Italy. A hamstrung in the finances of the governmentdue to Euro crisis made the situation more worse for Italy,but the conditions are improvingbecause of the active participations of the citizens in the political process of the Italy and peoplehave gained trust in the government.Economic factors: Italy is one of the richest country in the world as it owns highest Grossdomestic as well as capitalist economy per capita. Italy was named as the 7th largest economiccountry of the world in 2008, but in recent years Italy has suffered from the irregular economic1
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