Strategic Management: Analysis of Internal and External Issues

This project focuses on internal and external forces which can affect the business environment. Also it covers various types of stakeholders present in the Hungry Jacks organisation and how the strategic changes can affect them.

Strategic Management
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EXECUTIVE SUMMARY
This project focuses on internal and external forces which can affect the business
environment. Also it covers various types of stakeholders present in the Hungry Jacks
organisation and how the strategic changes can affect them. Then competitive advantage
strategies are mentioned there. As Hungry jacks uses differentiation strategy to gain competitive
advantage. Then there are various issues related to applying this strategy. At last strategic
implications is discussed below.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Analysis of Internal and external issues.................................................................................4
Stakeholders Discussion.........................................................................................................6
Competitive Advantage and Strategic issues.........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9
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INTRODUCTION
This topic about strategic management. As strategic management is the process of
planning, organising, setting objectives , thinking critically and strategically, implementing and
evaluation of outcomes. Strategic management considers that performance in the organisation is
affected by the characteristic and business environment(AnsoffI and et.al., 2018). Hungry Jack's
Ltd. Is the Australian fast food company which is a franchise of Burger King corporation. There
are approx. 16,500 employees are working in the company. It operates and owns the sub-licence
of Burgher king corporation in Australia. Company is operating in more than 400 locations of all
over Australia. It is responsible for giving license to new branches and opens new stores and
performs there functions. This report covers various topics regarding strategic management like
analyses of internal and external forces which affects the business. Stakeholders holders in the
company, companies competitive advantage. This report also covers evaluation of issues of the
strategy.
MAIN BODY
Analysis of Internal and external issues
Strategic management is the process of setting strategies for long term plans for the size,
activities and developed structure of the organisation. It focuses on keeping the organisation up
to date and dealing with unexpected change. It includes 5P's which are plan, ploy, pattern,
position and perspective. Also it helps in planning, organising, implementing and evaluating the
outcomes(Evans., 2015).
There are various internal and external issues which affect the business. There is is
SWOT analysis which is done for the organisation to analysis business strength, weaknesses,
opportunity and threats which can affect the business. SWOT analysis of Hungry Jacks
organisation helps them to companies need for a product, innovation which is required and
quality enhancement etc. Let discuss about these elements in detail:
Strength:
 High market penetration: As Hungry Jack is one of the strongest brand in the country.
This makes company to introduce itself into the new market and introducing new stores
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and restaurants. High market penetration is the companies strength as it has large number
of branches across the globe(Frynas and Mellahi, 2015).
 Strong brand image: Hungry Jack has a strong brand image because it provide quality
of food service to its customers. And this helps the company in building strong brand
image.
 Differentiation of products: It has differentiation of products like grilled Burgers.
Which create a strength that ensures company to become unique among its competitors.
Weakness: There are also some weaknesses linked to the business which are :
 Hungry Jack main weakness is that it has a limited product mix because it prevents
business to attract more customers who looks for a different options.
 The next weakness is the company is that business model and its products are easily
imitable.
Opportunity:
 The main opportunity which can help company is to improve its service quality so that it
can give competition to its competitors like McDonald.
 The next is company has diversified and wide its product mix so that it can attract new
customers and this will increase their sales and profits both.
Threat:
 Hungry Jacks faces many threats of its competitors. As there is many competitions of fast
food industry.
 Also there are many new firms are coming in the market to give them competitions
coming with unique strategies.
 Now a days some people moves towards healthy diets and not eating these fast foods.
This creates loss of the company.
To identify external issues of the company Hungry jacks do PESTLE analysis of the external
environment.
 Political: Political factors like government support for expanding the business can
creates a opportunity to the Hungry jack. Also political stability helps in reducing
challenges to the business growth(Guidry and et.al ., 2015).
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 Economical: In economical factors expanding internally trade and agreements creates an
opportunity for company. Also it has an opportunity to expand itself in high economic
growth.
 Social: People now a days become health conscious so can be a threat to the company.
And people also become aware about animal rights this may create a threat to an
organisation.
 Technological: high use of modern technologies can affect the company in making
opportunity for them. Mobile technologies are very good for the company as customer
can order their food online also.
 Legal: Government supports new international trade agreements. this can create an
opportunity for the company.
 Environmental: climate change can become as a threat or opportunity both for the
organisation. Company has also opportunity to increase attraction of customers by prefers
low-carbon lifestyles.
Stakeholders Discussion
Stakeholders are the group, community who are all impacted by the actions taken in the
organisation. Stakeholders are of two types internal or external stakeholders. Internal
stakeholders are those who are directly or financially affects in the organisational operations.
External stakeholders are those who indirectly influenced by the actions if
organisation(Hanaysha., 2016). Hungry Jack has following stakeholders:
 Employees: Employees are the assets of the organisation. As these are primary internal
stakeholders. As they have significant financial and time role in the company. They
carried all the activities.
 Customers: Customers are the most important external stakeholders in every company.
Hungry jack makes decisions according to them so that company can fulfils customers
needs and satisfaction. Hungry jack coordinate with the customers in listening their
complaints and feedbacks through emails, telephone, online websites chat etc. this
increases a chance of company to gain more customer satisfaction.
 Managers : Mangers the other internal stakeholders who play very crucial role in the
company. As these are only one who maintains budget and mange whole company. They
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are considered as a mediator between board of directors and employees(Hanson and
et.al., 2016).
 Owners: Owners are the one who brings capital for the company. They comes in internal
stakeholders. They make companies policies and strategic decisions which all needs to
follow.
 Government: They can be considered as primary external stakeholders. They make
certain tax policies, which company needs to follows. They also provide ethical practises,
legal concerns, regulatory oversight etc.
 Suppliers: Suppliers are the one who contributes to the success of the company. Timely
payments, communication and shipments are the important key to make relationship with
the suppliers.
Strategic changes that affect these stakeholders:
 Re-engineering: Re-engineering means redesigning of any product in the company.
These changes in business could include poor financial performance, emerging market
opportunity, increasing market share and external competitors. This can affect the
stakeholders like employees who are the daily worker in the organisation(Guidry and
et.al ., 2015). Then customers who will buy that product. And the suppliers who sell this
product to the company. As customer experience can be favourable or unfavourable.
 Restructuring: It is the another type of strategic change which managers of Hungry
jacks does to improve the performance of the product. For example- if company brings
new type of burger in the market like Garlic Burger to improve its performance. Then this
will affects customers, employees working there who daily make these products and
mangers in evaluating the performance.
 Innovation: innovation is the another strategic change which is done in the Hungry Jacks
organisation. It can be with the product or customer service. As company continuously
innovate sometimes which can be suitable for the organisation. Innovation can affects the
customers if they like the product or services not, employees need to change there routine
of work, government permission is needed to introduce something in the market,
managers need to evaluate and lastly if customer is satisfied or not then it results in
increased or decreased sales which can affect the owners in profitability of the business.
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Competitive Advantage and Strategic issues
Competitive advantage is the action in which company needs to perform in front of its
competitors to attract more customers. This allows the company to perform better from its
competitors and generate value among its customers and stakeholders(Hitt., Ireland and
Hoskisson., 2016).
There are three types of strategies used in competitive advantage:
 Cost leadership: This is the first strategy in which company become minimum cost
producer. This can be achieved on the projects of large scale where business can exploit
economies of scale. Lower-cost can result in lowest price of the product or service which
can attract more customers and can be a competitive advantage.
 Differentiation strategy: this is a strategy in which company differentiate its product or
services from its competitors. They make unique products. This can be done by using
high quality of materials. If company could be able to differentiate itself then it make
charge premium price of that product.
 Focus strategy: in this strategy company focuses on target market segment. This strategy
is successful if the organisation successfully create products and services that can attract
more customers.
Hungry Jacks uses differentiation strategy of the competitive advantage. As it makes
products uniquely which attracts more customers. Like when company introduces Grilled
Burger. Which is liked by the customers and its prices are also premium.
Issues of using Differentiation strategy in Hungry Jacks:
 Risks issue: Differentiation strategy has a major element that is risk issue. As if Hungry
jack introduce new product which is not acceptable by the customers. Or customers don't
buy that product, then this make create a loss to the company.
 Revenue increase: If company makes any differentiate product then it may charge
premium price because it is a unique one and not other competitors have that product. So
if this is acceptable by the customers, they will give increase in sales and profits to the
company.
 Customer satisfaction: As company introduces new product and set premium price. So
if customer didn't accept or satisfy with the product then company may face losses. So for
this company needs to gain customer satisfaction.
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Strategic implication
These are the consequences that arise from not understanding of the impact of forces on the
organisation(Jenkins and Williamson., 2015). These can occur from the various angle like
political and legal, economical, social and environment factors.
CONCLUSION
From the above report it has been concluded that company uses strategic management
which is very effective. But there are certain issues or forces that can affect the company's
performance. That is included in PESTLE analysis. Then companies has some forces which it
can turn into opportunity and threats. Various stakeholders are performing in the company which
can directly or indirectly influenced by the companies performance. To make successful of the
company's vision, mission, objectives , then it needs to make effective strategic plan which is
made by mangers or owners. So that they can achieve their standard goals and objective and
increase sales. This can only be done by providing customer satisfaction and considering internal
and external factors which affects the business.
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REFERENCES
Ansoff, H.I and et.al., 2018. Implanting strategic management. Springer.
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Guidry, J.D and et.al., 2015. From# mcdonaldsfail to# dominossucks. Corporate
Communications: An International Journal.
Hanaysha, J., 2016. Testing the effects of food quality, price fairness, and physical environment
on customer satisfaction in fast food restaurant industry. Journal of Asian Business
Strategy. 6(2). pp.31-40.
Hanson, D and et.al., 2016. Strategic management: Competitiveness and globalisation. Cengage
AU.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
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