Strategic Information System for Grill'd: Analysis and Recommendations

This report provides a strategic analysis of Grill'd, an Australian fast-food chain specializing in burgers. It includes an overview of the company and its industry, followed by an external analysis encompassing general environmental factors (political, economic, social-cultural, technological, physical, global, demographic, and legal) and industry environment analysis using Porter's Five Forces. The report also examines the competitive environment, identifying opportunities and threats faced by Grill'd. An internal analysis assesses the company's tangible, intangible, and human resources, along with its core competencies. The report concludes with recommendations for improving Grill'd's organizational strategy and information systems, emphasizing the need for innovation and enhanced customer service to maintain a competitive edge in the Australian market. Desklib is a platform where students can find similar solved assignments and study resources.

Strategic Information System
Grill’d
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Contents
Introduction......................................................................................................................................3
Overview of company..................................................................................................................3
Industry of company........................................................................................................................3
General environment analysis..........................................................................................................4
Political factors............................................................................................................................4
Economic factors.........................................................................................................................4
Social-Cultural factors.................................................................................................................5
Technological factors...................................................................................................................5
Physical........................................................................................................................................5
Global..........................................................................................................................................6
Demographic................................................................................................................................6
Legal issues..................................................................................................................................6
Industry environment.......................................................................................................................6
Porter’s five forces.......................................................................................................................6
Competitive environment................................................................................................................8
Opportunities and threats to the company.......................................................................................8
Opportunities...............................................................................................................................8
Threats.........................................................................................................................................9
Internal analysis...............................................................................................................................9

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Resources.....................................................................................................................................9
Capabilities................................................................................................................................10
Core Competency..........................................................................................................................11
Information system solution..........................................................................................................11
Recommendations..........................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Bibliography..................................................................................................................................17

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Introduction
Strategic analysis is referred to as the process of conducting the research on the company for
operating its environment and to formulate the strategy. In the current era, each company need to
conduct the strategic analysis in which they can actually evaluate that the strategies formed by
the company are appropriate or not. The strategic analysis will take place on the local company
and thus the company that has been selected for this report is Grill’d. The company was founded
in the year 2004 in Hawthorn, Melbourne. The report includes external analysis and internal
analysis with the proposal of the company. The external analysis includes the environmental
analysis, industry environment, competitive environment with the analysis of the opportunities
and threats of the company. Along with this, the internal analysis includes the firm’s resources,
tangible and intangible with the core competency analysis of the company. In the end, the
recommendations are proposed to the company related to the changes that they should bring in
their organisational strategy.
Overview of company
The company is Australian food chain specialising in burgers and it was founded by Simon
Crowe. Grill’d offer the wide range of the burgers of different variety in the market which
includes the vegetarians and non-vegetarians. According to the analysis, this is found that there
were 35 restaurants in the year 2010 and the number of the restaurant outlets increase in the year
2013 with approx. 125 restaurants (Grill’d, 2018).

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Industry of company
The industry of the Grill’d company is the fast food industry which is continuously increasing or
growing in the market of Australia. Along with this, the company is not having any international
contract as of now as the company is operating their business in the local regions of Australia
only.
General environment analysis
The general environment of an organisation includes the range of factors that can influence the
working of an organization (Wheelen and Hunger, 2017). The below given is the analysis of the
general environmental factors that can affect the Grill’d company.
Political factors
The political factors that affect the working of Grill’d company include the change in the
regulations, policies and plans (Grant, 2016). In Australia, the company is following all the
regulations imposed by the government. The government introduce the restrictions related to the
sourcing of the beef as the company make use of beef for their farms. The sourcing of beef is
done from their own farms due to which they can give surety for the quality beef. The company
is dealing with the risk of an increase in the amount of taxes.
Economic factors
The economic analysis includes the factors like inflation rate, GDP, the purchasing power of the
company that can affect the operations. The fast-food industry has a well-known presence in the
market of Australia and it is growing due to which the company is able to meet the objectives.
The GDP per capita of Australia is approx. $56,135 which reflects that there is a rise in the

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purchasing power of the people (Trading Economics, 2018). The rise in the GDP also brings the
improvement in the living standard of people.
Social-Cultural factors
The social and cultural factors include the preference of the customer and their buying behaviour
towards the products that are offered by the company. The company might face the change in the
preference of the customers as maximum people are getting aware of the health factors due to
which they consume healthy products. Grill’d company offers the products but they ensure that
their burgers are healthy with low sugar, no carb, green veggies and others (Grill’d, 2018). The
company should start offering the drinks along with the burgers which will attract the customers
in some or other way.
Technological factors
The company get positively affected due to changes or up gradation in the technology. Grill’d
company make use of advanced technology for adverting the products. The use of social media is
effectively done by the company which include YouTube, Facebook and LinkedIn (Chernev,
2018). This marketing activity is performed by the company for enhancing the sales and revenue
with this they can generate their competitive advantage.
Physical
Grill’d company is working the fast food industry which directly affects the environmental
factors because the company makes use of vegetables and natural resources for offering the
financial products to the customers. The company ensure that they make use of the paper instead
of plastic which reduce the effect on the environment. Along with this, the company make

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effective use of the resources which offer numerous benefits which include reductions in waste
and many others.
Global
The changes that take place in the global environment are rapid due to which they are obliged to
follow the changes on the frequent basis. The government allow the new companies to expand
their operations in Australia which can make the environment competitive for Grill’d company.
Demographic
Australia population is increasing and register approx. 1.8% in the year 2012 and most of them
live in the urban areas. Grill’d company offer its products to people with the different age group
present in the market including both male and female with the different income groups.
Legal issues
The legal and regulatory issues by the government influence the working of the company across
the border which is one of the reason due to which Grill’d company is still serving its products in
the local market. Legal issues hurdle the expansion of the business in the other markets.
Industry environment
Porter’s five forces
This model is used by the company for analysing the competitiveness of the Australian market.
Grill’d company can actually be able to analyse or evaluate the steps they need to take in the near
future for achieving the goals effectively (Hill, Jones and Schilling, 2014).
Forces Description

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Bargaining power of
customers
Grill’d face high bargaining power of the customers because in the
market there is the presence of a large number of providers in the
market due to which the buyers have the low switching cost.
Moreover, the customers are price and quality sensitive due to which
they shift to those who offer the healthy and affordable food (Wellard,
et al 2017).
Bargaining power of
suppliers
The bargaining power of the suppliers is moderate because in the
Australian market there are numerous suppliers who can offer the raw
material. Though, these suppliers can ask about the high prices if they
supply any material in the small quantity.
The threat of New
Entrants
The threat of new entrants is moderate in Australia as there is a huge
opportunity in the market due to which companies expand their
business operations. Though, the expansion of the companies require
the huge amount of funds as it is difficult for them to give competition
to Grill’d who is already holding more than 125 outlets in the market.
Threat of Substitutes The company faces the high threat of substitutes because apart from
Grill’d the company have the option of cooking their food by
themselves or through any other vendor who can offer the healthy
products (David, 2011).
Intense Rivalry Grill’d company faces the high rivalry intensity in the market because
there are numerous companies who offer similar products and
services. The major competitors of the company include the
McDonald’s and Burger King who give tough competition in the

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market.
Competitive environment
The company has an intense competitive rivalry in the market due to which they have to bring
the new strategies which are must to stay in the Australian market. The major competitors of the
company are Burger Jack and McDonald’s. Both the companies are leading with a good
reputation in the market. The company mainly need to take care of these two groups. The rivalry
that is present in this group is that they capture the large market share. Along with this, both the
companies have the capability of attracting the customer by offering the variety of options
(Madsen and Walker, 2015). For instance; McDonald's company offer both veg and a non-veg
burger with this they also offer Sandwiches, puff, wraps, cold drinks, fries and many others. This
shows that the McDonald’s company make use of the differentiation marketing strategy (Macca,
2018). Along with this, McDonald's have opened their numerous stores at prime locations which
is one of the major strategies. The changes in the menu of the company according to the
customer needs and the improvement in the customer service is one of the biggest threats. These
changes can make the company to attract more and more customers which affect Grill’d.
Opportunities and threats to the company
Opportunities
 Grill’d company has an opportunity to introduce a new product in their menu as this is
the way through which they can attract maximum potential and new customers.

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 The company has the opportunity to work more on their customer services for which they
need to take the suggestions and feedback from the customers. In addition, the company
can easily customize the services offered by them (Day and Schoemaker, 2016).
 Grill’d company has an opportunity in other markets as presently they are operating the
business in Australia but they should expand in the New Zealand market.
Threats
 The major threat is faced by the company from the competitors that are McDonald’s
and burger jack who make use of innovative technology and occupy a large market
share.
 The entry of new entrants in the market is another threat which is faced by the
company because Australia has a vast potential market.
Internal analysis
Resources
Grill’d company make use of different types of resources which include tangible, intangible and
human resources which are discussed below: -
Tangible resources
 Physical: - The physical resources include the number of outlets that the company is
maintaining in Australia as they are maintaining 125 outlets. The physical infrastructure
in the outlets is impressive in terms of their interior features which include armchairs,
sofa, modern lighting with good colour combination with the soothing music. All these

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elements are effectively used by the company which helps them in making the
environment good (Glavas and Mish, 2015).
Intangible
 Reputation: - Grill’d have good image or reputation in the market of Australia as a
healthy hamburger provider with this they are effective in offering the value-added
services to their customers. The reason behind the opening of new outlets is that the
company is able to maintain the good reputation in the market. In addition to this, the
company bring the improvement in their reputation by using the promotional tools in
which they can generate the awareness for the products and services that they offer.
 Trademarks: - Grill’d company make use of the trademarks through which they can
prevent the unfair competition by protecting the use of symbol, word, logo, design and
others (Azevedo, et al 2015).
Human resources
Grill’d have currently employed more than 700 employees and still there are numerous
opportunities for employees are available. The workers of the company are divided into the
restaurant staff and corporate employees (Grill’d, 2018). The company offer the effective
training to their employees which help them in upgrading their skills which can be used by them
in performing the activities. HR of the company also ensures that they hire those people who can
actually understand the culture and are skilled in the work allocated to them.
Capabilities
Grill’d capability is that they make use of all the resources effectively to run the business and to
meet the organisational goals. The employees of the company are equipped with the leadership

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skills which is essential for the effective management of the business. Along with this, the
company ensure that they offer the healthy range of products which is required because this will
attract maximum customers as most of the people are becoming health conscious. The company
put efforts in maintaining the standard of food and quality equality in every outlet. This is
possible because of the effective training to the employees which is offered by the company.
Grill’d make use of the on-job training program due to which their employees learn the things
effectively and quickly.
Core Competency
Grill’d maintain the core competency not only in terms of the products but also for the services.
The biggest core competency of the company is that they listen to their customers who all visit
the outlets as this shows that they believe in offering the personalised services to their customers.
This is the way through which they can build the customer loyalty which is essential in the
market. In addition to this, the company listens to their customers who help them in
understanding the taste of the customers for the products and they can easily bring the same. This
helps the company in offering the healthy products with effective prices. This shows that the
company meet the test of the significant value to the customers.
Information system solution
The analysis reflects that the company face several issues in the market and it is still growing due
to which they need an information system that can help in meeting the goals effectively. It is
proposed to the company to make use of the decision support systems which helps the company
to make the decisions by working and analysing the data. This supports and brings the