Strategic Management of Five Guys

Running head: STRATEGIC MANAGEMENT OF FIVE GUYS
Strategic Management of Five Guys
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STRATEGIC MANAGEMENT OF FIVE GUYS
Executive Summary
This paper focuses on the development of strategic management of the Five Guys enterprise
to expand its business in Italy. It develops the strategies in terms of external and internal
environmental analysis. Using porter’s five force model and pestle analysis it analyses the
impact of external factors that can impact the economy of the firm. To minimize the cost and
increase the productivity the strategic plan is developed. The porter’s five force model
analyses bargaining power of supplier which is a weak force and bargaining power of buyer
which is a strong force, also new entrants and industrial competitors give a tough competition
for food segment, and the substitutes as a strong force results in low switching cost. The
value chain analysis which recognizes the strength and weakness of the firm states that the
cost strategy and product differentiation for better competition in the fast food segment. The
strategic directions shows the opportunity to be expanded in different field (market, product,
service). The paper analyses the strategic plan of implementation in the fast food segment of
Five Guys and states the threats and weakness to be minimized.

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STRATEGIC MANAGEMENT OF FIVE GUYS
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
External Environmental analysis for identifying opportunities and threats...............................5
Internal environment analysis for identifying strengths and weakness:..................................11
Identification of competitive strategies....................................................................................13
Conclusion................................................................................................................................15
References................................................................................................................................16

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STRATEGIC MANAGEMENT OF FIVE GUYS
Introduction
The purpose of this paper is to analyse and develop a strategic plan for Five Guys
enterprise in Italy. They started a restaurant with two advisors Jerry and Janie in the year
2003. Five Guys Enterprise are now expanding their business in Italy. In a short span they
started their business with a huge profit by selling more than 300 units within 18 months of
initiation of business. Starting a new business franchise in Italy by developing new strategic
management will lead to competitive success. The new strategy for Five Guys will help to
analyse the internal and external opportunities and threats facing which helps to expand and
increase the market position of the franchise.
The strategic management includes the study of external macro environment using
PESTEL framework and external micro environment using porter’s five force framework.
External environment also affects the business which includes factors like political,
economic, social, technological, legal and environmental. The internal analysis in the
franchise is also needed for creating and sustaining business performance using Michael
Porter’s value chain analysis. The value chain as a decision support tool which performs a set
of activities to deliver best valuable product and service for the market. To meet the
competitive advantage there is a need of analysis which recognises the strength of the
franchise in terms of growth and focuses on reducing the weakness by effective strategic
plan. The challenges of five guys in a new market area need to be analysed to compete with
other competitors in same segment. The Five Guys enterprise needs to analyse the customer’s
interest in food industry which helps in directing the franchise to choose specific product and
service to be provided to the customers. This paper aims at developing a unique strategy
which helps Five Guys Enterprise in growth and sustainability in Italy market (Mutunga and
Minja 2014).