Strategic Management in the Fast Food Industry

This report discusses the importance of strategic management in the fast food industry, focusing on Hungary Jack's, a franchise of Burger King. It provides a factual description of the business, analyzes the current strategy, and proposes a clear plan for change. The report also highlights the reassurance and challenges of implementing strategic management. Read more on Desklib.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAINBODY....................................................................................................................................1
1).Factual description of the business:........................................................................................1
2).Analysis of the current strategy of the business drawing on the frameworks........................2
3).Clear proposal for change.......................................................................................................4
4).Reassurance............................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic management relates with the ongoing process of planning, monitoring and
involves with policies and practises. Analysis and assessment of all requirement and necessities
relates with an organisation by attaining all the objectives through proper strategic formulation.
Its basically involve with implementation and formulation of prior goals and activities which will
be done by the top managers on behalf of their owners(Ketchen and Craighead, 2020). By
analysing the internal as well as external factor an organisation will going to plan for proper
strategic approach to deal with them. These process includes practise, tactics and policies which
are necessary in managing the business operation in large and with quite effective manner. The
basic principle which is considered under strategic management is that by creating valuable and
unique position into market through achieving the organisation objectives in regular manner.
This process of developing the strategic planning completely based on organisation operations.
The below report is based on Hungary Jack's Ltd is an Australian company of fast food which is
a franchise of burger king corporation. This fast food company is fully owned subsidiary of
competitive foods Australia. Having an industry type is restaurant,numbers of employees
working in this food corporation is approx 16,500 with appropriate website handling. Below
report considered with topic description of this fast food corporation, current strategies of this
food industry, proposal for strategy change.
MAINBODY
1).Factual description of the business:
Hungary Jack's is basically an Australian fast food company which is the franchise of
burger king corporation (Leiblein and Reuer, 2019). Its completely a owned subsidiary of
Australia competitive food, this fast food company having the aspect of restaurant industry type
and the founder is Jack Cowin. This food company owns and operates or having the sub-
licensing of all of the Burger king restaurant in Australia. They are operating in approx 400
locations across the Australia, this fast food industry is considered with second largest franchise
of Burger king. This fast food company is responsible for licensing of new operators who
operates their own stores and operating all the activity related to standards. Having their
headquarter in Sydney, New South Wales, Australia, CEO of this food restaurant is Chris Green.
As this food industry deals internationally they are attaining the value of proving the quality
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products to their customers and the channels in which they are operating their fast food business
is both online and offline in catering their customers on platform like online Hungary Jack's fast
food website www.Hungaryjacks.com.au and physical outlets which are considered to be
important business factor for this fast food internationally. Products in which this food company
deals is Hamburgers, chicken products, meals related with kids, cold and hot beverages,
breakfast, onion rings. The product which is introduce by this food company in Australia is
Jack's bacon deluxe combo meal strong unique menu option to the Australian market. They are
founded in 19 June 1971 around 49 years ago Perth in western Australia. Hungary Jack's
provides variety of food items from Hamburger to Deserts, They are dealing in the total equity of
1.289 Billion A$. Hungary Jack's are operating their business from last 49 years with a motive to
attain the customers and enhancing their brand value by reaching to other Untouched market
across the country. They operates in objectives to deliver the best quality food product to its
customers by maintaining the quality of services and cleanliness. As this industry works in fats
food industry they are relatively stronger through their brand image in the international market in
providing with quality food services to the customers along side they are much focus on
delivering with proper interaction with them in knowing their demands what customers really
wants in their services and food offerings.
They are operating their business in different countries too, they are continuously trying to
improve their service quality with a view to compete with its competitors like McDonald as they
both have same industry type. This fast food industry are more focused on there operations
relates with dealing in market by properly implement the promotional activities through social
media processes they will generate effectiveness in this industry type of restaurant. They will
even introduce themselves with new market as they are quite strong in respect of their branding it
will be easy for fast food company like Hungary Jack's.
2).Analysis of the current strategy of the business drawing on the frameworks
This industry deals in promotional and advertising strategies with a view to promote itself
amongst consumers. Hungary Jack's they are mostly rely on their advertisement for means to
generate revenues and margins by they will get the potential customers responses too
(Phillips,and Moutinho., 2018). There are several marketing strategies like product/Service
innovation, by dealing in Customer experience which help this industry to grow more, as this
industry totally work on their quality aspects of serving with best quality products in respect of
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fast food like innovative burgers through generating sources by customers by gathering of
information related to their services. They are dealing in the product like veg and non-veg
options in according to the customer preferences. Hungary Jack's are promoting their business by
advertisement on television , social media they are also having strategies like pricing of the food
through offering small, medium and large meals to their customers . This categorization leads to
provide benefits in catering the customers with quite ease formations. They are providing
necessary learnings to their employees regarding how to deal with customers so here are some of
the levels of strategy in which this fast food industry works are as follows:
Business level strategy: This relates with marketing strategies which are basically involves with
marketing mix strategies as this industry deals in food products is that fast food, so large
competitors are exist in their industry type. Business level strategies are completely depend upon
the operations, marketing strategies helps company to achieve its targets and goals. Hungary
Jack's is basically the fast food chain of burgers and other products related with foods. The main
burger king trademarks that relates and sold through Hungary Jack's which includes with
whopper and TenderGrill sandwiches. They are adopting pricing strategies through taking care
of demand and supply in market along with competitive similar products pricing. Hungary Jack's
is considered to be the largest franchises of Burger king, having the aspect of operating in
different modes of provision of products to their customers. They takes orders on the basis of
quick service restaurants, application and official website. This fast food chain delivers various
variety of food meals through gift offering to the kids, basically targeting the kids groups in
relation to their business strategies
Business model: Its private limited company that deals and having specialization in fast food
services. They are dealing in large branding image by being a franchise of burger king. They are
dealing in large customers from various part of the country, they are offerings best quality food
in relation to their burgers to the clients. Having the business model which is completely depends
upon the standard policies of the burger King as they are operating their market through branding
of their franchise(Schilling and Shankar,2019).They are the franchise of burger king corporation.
This fast food chain employs over 19000 Australians, they commits to have a great bonding form
the younger crew member to their senior regional manager they shares learning new things in
this food industry.
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Corporate level strategy: This fast food industry deals in corporate level strategy through
maintaining the value of working with different related company like they are franchise of
Burger king so all the policies that burger king establish in their business. They have to inculcate
to their franchise department as well to formulate the operations without any incomplete
information, corporate strategy relates with four different types of approach which works on
growth strategy that aims to achieve the business goals and objectives on corporate level.
Stability Strategies of Hungary Jack's are depends upon the branding image of their own cause
they are dealing currently in 400 location across the Australia(Moutinho and Vargas-Sanchez,
2018). This fast food industry maintains the quality retrenchment strategies by properly
executing the process of servicing across the country and in last re-invention process depends
upon the formulation of new technique through which they are generating something extra for
their customer in relation to food products.
International level strategy: They are operating in different countries to serve the customers by
adopting internationally which includes global market, multi domestic and transnational . So this
fast food industry works on global platform by deliver quality product to their customer whose
having with different taste and preferences by adding the strategy of provides with veg and non-
veg food item they are catering both customer groups as well.
3).Clear proposal for change
It has been recommended that hungry jack's company can use corporate level strategy
which is an instrumental that outlines company's goal on annual basis. In which company, layout
all the steps which make it clear to the employees the path they have to take in order to achieve
desirable goals and objectives(Burlov and et. al, 2018). There are various type of corporate
strategy that hungryjack's can use and in which a company select might be indicator of the
company's financial success and the method which a company choose to generate profit. Such as
stability strategy, this means company is doing well under its current business model. Along
with this, expansion strategy can be used when a company is planning to new product and to
reaching out new audience. Retrenchment strategy has been used in order to switch business
model and combination strategy is hybrid of previous three strategy which can hungry jack's
company can use to create new business model which that can provide better outcomes. There
are various changes which a company implement while using this strategy:
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Diversification: This strategy allow hungry jacks company to move into new market and to
create new business opportunities with targeted audience.
Divestment: With the use of retrenchment strategy, company will resolve the problems and
enhance business results. Through financial position of the company will change completely.
Concentration: Hungry jack's company will start expansing it business operations and adds
more market share. Through which company started getting high rewards and profit.
4).Reassurance
Allocate company resources: corporate strategy is defined as a tool that a company utilised to
limit the allocation of resources for the best available investment opportunity for the business.
Through which Hungry Jack's company, allocate resource as per the desirability which help in to
reduce cost and increase in proficiency (Teece, 2019).
Establish expectations: this has been established expectations of internal and external
stakeholders and has a ficus on key areas such as market standing, productivity and profitability.
This will ensures longer sustainability and growth of hungry Jacks.
Improve competitive performance: corporate strategy has been concerned with a company's
growth and profit performance. With this hungry jacks company ensures how the business units
structure and manage their activities in order to improve company's competitive position.
Challenges:
Lack of resources: This is most common barrier a company face while effectively
implementing corporate strategy. Hungry Jack's can also face this problem do for this, execute
should plan in a proper manner along with effective research so that this problem can be
eliminated.
Ineffective training: Implementing new strategy has been initiated change within the
organisation which need proper training and development programme to employees as to get
favourable outcomes. Ineffective training to employee can lead to failure of plan.
CONCLUSION
It has been concluded with above report is that fast food industry should manage their business
operation with particular marketing strategy which will having the value of effectiveness in
serving their customer. Food industry will adopts the policy of proper strategy which will set in
the international market by analysing demand and customer taste as fast food industry are
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depending more on customer they have to set the proper business level strategy. By adopting
necessary change in catering their customer if required will definitely going to be effective for
food industry. By determining the key issues which are vary in international fast food market,
Businesses will serve in quality products and services to their customers.
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REFERENCES
Books and Journals
Burlov and et. al., 2018. The methodological basis for the strategic management of territory
development.International Multidisciplinary Scientific GeConference Surveying
Geology and Mining Ecology Management, SGEM, Bulgaria.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018.The strategic management of health care
organizations. John Wiley & Sons.
Ketchen Jr, D.J. and Craighead, C.W., 2020. Research at the intersection of entrepreneurship,
supply chain management, and strategic management: Opportunities highlighted by
COVID-19.Journal of Management.46(8). pp.1330-1341.
Leiblein, M.J. and Reuer, J., 2019. Foundations and futures of strategic management.Available at
SSRN 3396754.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018.Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Phillips, P. and Moutinho, L., 2018.Contemporary issues in strategic management. Routledge.
Schilling, M.A. and Shankar, R., 2019.Strategic management of technological innovation.
McGraw-Hill Education.
Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management
perspective.New Zealand Economic Papers.53(1). pp.1-43.
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