MOD003463: Honest Burgers Ltd Strategic Issues and Solutions

This report provides a comprehensive analysis of the strategic issues facing Honest Burgers Ltd., including rising labor costs, changing consumer trends, waste management, sustainability, supply chain challenges, and increasing technology adoption. It delves into the challenges associated with each issue, such as decreasing productivity impacting labor costs and the difficulty in balancing organic food production costs with affordability. The report proposes solutions using models like Lewis change model and McKinsey 7s model, emphasizing creative problem-solving through expert advice and strategic approaches. Recommendations are provided for overcoming these challenges and ensuring the company's continued success in a competitive market. Desklib offers more solved assignments for students.

COURSEWORK REPORT

TABLE OF CONTENT
SUMMARY.....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
4.1 Strategic Issues-.....................................................................................................................3
4.2 Challenges of Honest Burgers Ltd.-.......................................................................................5
4.3 Solutions................................................................................................................................7
4.4 Implementations.....................................................................................................................9
6.0 RECOMMENDATION.......................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

SUMMARY
This report will discuss about the strategic issues of Honest Burgers which the company
is facing and a brief definition of strategic issues. One of the issue that will be discussed in this
report is, Honest Burgers is having issue in managing the rising labour costs as they are facing
many challenges in controlling this. Along with this, it will also discuss about the solutions of
these challenges as well as how these solutions can be implemented in the organization. Further,
report includes the recommendation for Honest Burgers for applying in the organization to
overcome from these challenges.
INTRODUCTION
In this present era, it is very difficult for every organization to survive in the market.
There is much competition in the market as well as the organizations also face many strategic
issues and challenges. Strategic issues are the issues which the organization is facing while
achieving the objectives and goals. It has major impact on the direction of the businesses. It is
very important for the organization to identify these issues for achievement of the goals and
objectives. This report will discuss the strategic issues of Honest Burgers Ltd. It faces the issues
of managing the rising labour costs of the market, in meeting the changing consumer trends like
hygienic food, fresh food, healthy food. Further, it also discusses that what challenges Honest
Burgers is facing with the issues. This report stated the solutions like Lewis change model, The
McKinsey 7s model to understand and evaluate the problems of these issues and challenges as
well as ways to implement them in the organization. It has also suggested the recommendation
which can be taken for overcoming these issues.
MAIN BODY
4.1 Strategic Issues-
Strategic issues are the long term issue which hinders the achievement of the
organization. It is the issue which requires the clarification and these have direct impact on the
direction of the organization. It is very important to identify the strategic issues as these become
threats when not taken care of. It should be addressed and resolved for achieving the goals and
objectives of the organization. Honest Burgers Ltd. Faces some strategic issues which are-
1. Management in rising labour costs- Instead of the digitalization, this organization has
to employee the staff for work. There can be many such work liker serving food to the

customers as well as providing them the quality services for the customers' satisfaction.
To keep maximum productivity of both human labour and of machines is highly costs.
Minimum wage, payroll taxes, overtime pay, hiring subsidies are the few policies which
impacts the labour costs. It is very crucial to manage these rising costs of labours as they
have to pay them the wages as well. Higher labour costs increases the productivity of
Honest Burgers Ltd, but it also reduces the profits of the company. So to remain
profitable it is very important for this organization to manage the labour costs.
2. Meeting changing consumer trends- The consumers needs and wants are rapidly
changing. Nowadays, the trend in food industry is of hygienic and fresh food. Along with
this, they also take care of the environment and ethical policies of the food they consume.
People gain information about how the product is made, where it has been made, whether
it had harmed the environment or not, is the packaging is recyclable etc. So it has become
very difficult for Honest Burgers to manage up with these trends of the consumer. The
consumers are very conscious about these things nowadays. It is issue faced by the
Honest Burgers as they are not able to meet up with these consumer trends.
3. Management of waste and food loss- According to several studies, it has been stated
that food industry wastes(Bilska, Tomaszewska and Kołożyn-Krajewska 2020) the many
tonnes of food which is not suitable for consumption. It is the biggest issue faced by
Honest Burgers as they are not managing the food wastage which is causing harm to the
environment. This organization should ensure that food is not wasted because this
reduces the potential revenue of the organization. This strategic issue should be given the
first priority to be tackled. In short, wasting food causes increase in greenhouse gas
emissions and promotes more the climatic change,
4. Sustainability- It is maintaining the balance between the economy, ecology as well as
the social issues. Sustainability(Brown, et.al. 2020) is the process of producing the food
by using non-polluting processes. It is very difficult to maintain sustainability in the
Honest Burgers as every food cannot have the equal contribution in the problems of
climate. Consumers are paying more attention towards how the food is affecting the
environment. In context of the food industry, sustainability has the broad spectrum.
Plastic use has been much eliminated as this harms the nature. Honest Burgers is trying to
meet up the issue of sustainability but facing many problems in acquiring it.

5. Backlog of supply chain- This was the impact which was caused by the Covid-19
pandemic in the world. Supply chain has been divided into two parts one is by using the
laws and regulations of the standards which are inspected by the state agencies. And
other is using the voluntary standards given by market laws. Due to the pandemic(Aday
and Aday, 2020), the government made restrictions in transportation because there was
decline in the food distribution. Lack of workers in the regions where seasonal
employment is done due to this the supply chain was affected.
6. Increasing technology- Nowadays, consumers want everything online. The technology
has increased so much that everything has been found online so this has raised the
expectation of the consumers. Honest Burger is facing this issue as its product line is not
found online. The trends of technology have been increasing day by day so to combat this
issue it is very high time to adapt the latest technology. Consumers need the food
products online, so they can order online, and they can enjoy the food at home. However,
adapting the advanced technology will have positive impact on the organization as it will
increase the productivity.
These are the strategic issues which the Honest Burgers is facing.
4.2 Challenges of Honest Burgers Ltd.-
1. Increase in Labour costs- The main reason behind increase in labour costs is decreasing
in productivity. This happens because of increase in idle time as well as increase in
turnover of employees. Idle time is the non-productive time which is spent by the
employees in the normal working hours. The another main reason is Honest Burger pays
higher wages to its employees due to the regulations set by the government of paying
wages to the employees. Honest Burger requires the skilled labours in the organization
which are very less. The demand of the skilled labour is more and the number of skilled
labours are less this leads to increase in the costs of the labours. Honest Burgers often
hires the union employees which means they have higher employee wages. Honest
Burgers wants its labours to have job satisfaction by paying high wages rates to them.
These are all major challenges due to which there is rise in labour costs of this
organization.
2. Meeting consumer trends- The changing consumer needs has been the challenge for the
Honest Burgers because people are focusing more towards the organic food or healthy

food. People think that eating burgers or food at Honest burgers will affect their health as
it is junk food which can affect their health. The reason of meeting up with the
consumers' expectation(Lusk and McCluskey, 2018) is organic food requires more
production cost and with that they also have to keep the prices of the food products
affordable which is very crucial to balance both of these together. It is very clear that
changing the food products is very difficult for the organization as every food product
does not meet the problems of climate. These are the challenges due to which Honest
Burger is facing problems in meeting up with consumer needs.
3. Management of food waste- There are many reasons by which Honest Burger is facing
in management of food waste(Kennard, 2020). Reducing food loss and managing the
waste has become very important nowadays as it is continuously harming the
environment. Honest Burgers is trying much to reduce the food wastage but facing some
challenges. Measuring and controlling food waste is very hard because if focus will be
given on sustainability policy then they will focus on food loss and end use of physical
quantities but if focus will be given on food security then food which is not used for
consumption will be seen as waste. So it is very crucial in deciding the policy of the food
waste.
4. Sustainability- Honest Burgers facing challenges in sustainability of food because they
have to maintain a balance between people, profit and planet as well. Untraceable(Charan
and Panghal, 2018) foods from complex chain is the biggest challenge faced by this
organization. This organization is not able to trace the item so by this it has no guarantee
that the product is sustainably produced. Another challenge faced is the packaging that is
the packaging of the food should also be eco-friendly. In this, the organization is
sacrificing the innovative package which has plastic use on it.
5. Supply chain- The major challenge faced by the Honest Burgers is that it there is poor
communication between the food supply chain partners which causes delay in the
transportation of food item. This affects the quality of the food item. Honesty risk is
another challenge which is faced by the Honest Burgers as while supplying the food item
suppliers can add some additives injections to it without the organization knowledge. It
also faces Brexit related challenges as in this Honest Burgers has to trade according to the
World Trade Organization which incurs higher cost by exporting the food items.

6. Increasing technology- Artificial intelligence has been adopted by many organizations
but Honest Burgers is facing challenges in adopting the advanced technology. Focusing
on artificial intelligence, machine learning and deep learning will lead to cultural shift in
the organization. It requires much skilled labours to work as well as the employees who
have the knowledge of advanced technology.
4.3 Solutions
Creative problem soling can easily possible when business management prefer proper
steps, methods, involvement of experts advises, experience individual for problem solution.
Application of multiple practices, models and theories has power to resolve issues and challenges
of company which faced by company (Lee and et.al., 2019). Almost individual business face
multiple issues and risk within development of business and continuity of business. Idea of this
term its import that organization seniors department, team members, employee develop higher
consideration towards with the application and involvement of appropriate strategic approaches
which can be easily resolved complexities. From the above study it's been identified that which
type of strategic issues and challenge face by Honest Burgers Ltd organization. So next term is
essential to define and explain solutions of issues are as follows.
Structure the problem:
From the above study its clearly identified that rising labour costs, changes in customer
requirement or needs, wastage and food lost, business sustainability, supply chain and continues
changes in technology higher influence different range of risk, conflicts and issue within
business activities (Garbuio and Lin, 2019). Proper identification of this term its easier to resolve
specific issues with application of some essential steps, process and theories.
Define desired results:
Customer requirement or needs can resolve with the continues market research, supply
chain management is the biggest issues in food and brave-rage supplier industry because food
making process properly requires appropriate and sustainable flow of raw material because it
impacts on delivery of food to customer. Strategic Issue of labour cost can be managed with the
application of desired results development which means application of these tools can resolve
conflicts like labour cost can be satisfied when company provides some extra benefits with
continues motivation.
Gathering data and evaluate it:

Collection of data in context of restaurant services its easier to communicant and take
experience from regular customer with feedback, questioner (Safar and et.al., 2018). Because
application of this term provide idea or knowledge to management team that which new facilities
they do have to add on for customer benefits, restaurant service effectiveness, labour cost
management and many more. So this step is useful for overall business sustainability.
Brainstorming ideas:
From the different individual reviews, ideas or information collection from market
research and customer experience, its very important term to develop brainstorming like for the
labour cost business management has duty to evaluate how business can provide more salary for
improvement in their satisfaction.
New decision-making:
Honest Burgers Ltd industry manger has duty to reduce other expense, and they maintain
positive relation with labour and provide them good salary for their satisfaction. Also in term of
customer attraction its important that management develop concern on effective food supply
process for customer satisfaction and long term business efficiency.
Change management model
This model is beneficial for resolve multiple type of conflicts within business practices. It
provides knowledge that how restaurant can maintain good position ad resolve labour issue,
customer demand issues and may more with easier manner.
Lewin's change management model
Unfreeze: This step mainly explains and provides focuses towards with which changes mainly
requires in business. From the issues identification its clear that labour cost, competitive
industries influence customer attraction (Whysall, Owtram and Brittain, 2019). So information of
major two issues or challenges of Honest Burgers Ltd, its easier to proceed into next step which
is change development.
Change: On the basis of this study and from the customer reviews its clear determine that
change can be easily possible when industry manager engage new food products with reasonable
price and provide specific amount or salary to labour, so they can reduce turnover issue.
Refreeze: This term or step mainly refers to specified individual ideas or solution. Therefore,
when its clear that labour cost issue and customer trends can be resolved with the application of
new decision-making so its important term to add on specific practise which has power to

diversify risk. And consumer trend issues also resolve with the application of continues market
research, young people demand identification, lower price of food and many more. Expansion of
this strategy defiantly attracts audience attraction with great manner.
The McKinsey 7-s model
This model mainly divided into 7 steps which provides better ideas for the solution
development.
 Change strategy: Strategy helps to give most effective foundation of new change. So
Honest Burgers Ltd industry management team or manager has duty to analyse specific
change because utilization of appropriate change is the key of overall practices of business
efficiency.
 Structure: Prepare new division, framework, roles, duties for new variation. This company
has duty to involve suitable and sustainable structure includes with labour cot, consumer
trend identification and many more (Woodhead, Stephenson and Morrey, 2018). Structure of
all these aspects useful for development of new decision.
 Systems: New system addition like new budget decision process for labour satisfaction and
technology advancement addition for continues consumer trends or market trends
identification.
 Style: Final evaluation that this specific department or area not require any changes. Like in
this company quality of food is very effective and employee maintain cleanliness in food
processing as well.
 Staff involved: Analyse that staff members perform their task with well manner or not. And
this company staff perform well but from the low salary they decide to leave their jobs from
organization (Olszak and Mach-Król, 2018). Thus, its important term to involve employees
for managing their performance and activities.
 Skills: Asses work to employee as per their knowledge and skills. This term effectively
manage business performance with great manner. Proper work distribution like marketing
specialist add on into restaurant develop continues information of customer demands and
which methods many has to involve for new opportunity expansion.
4.4 Implementations
Strategic issues solution mainly require appropriate application of theories and models
because it provided clarity in terms of how business manager can resolve issues with application

of system approaches addition in organization. Its determine that Honest Burgers Ltd industry
provide wide range of services to customer with good quality but this company mainly faces
issues from the continuous variation consumer trends or demand and faster changes in
technology (Rialti and et.al., 2019). So they get suffer issues from their industry activities
continuity and follow of cash because youngster have multiple options. Also in terms of
restaurant multiple entrepreneurs develop new food products with home delivery this term badly
affects on income generation or development. Information of all this term application of change
management models is the best approach because it develops clear understanding that how to
resolve any type of conflicts with great manner.
Throughout the utilization of Lewin's change management model its important to
implement and engage proper changes which situated by business directors, restaurant manager
and their team members (Benabdellah and et.al., 2021). Because, change farmworker
implementation is not easier. So idea of this term make sure business develop higher
consideration and focuses towards with the specific change involvement in business practices are
as follows,
Like management decides to develop new strategies for change expansion in issue
resolution on rising labour cost, so this term its important aspect that business manager when
decide into change management model that they develop new financial approach, so they can
satisfy labour needs and manage their salary flow. Therefore, when its clear to manager that they
do have to do new change in labour cost, thus they can easily manage with new decisions
expansion.
Similarly in term of changing consumer trends or demands issues also can be resolved
when manage or expert impediment and use change management model because unfreeze
activity specific that his change is mainly required so in the next activity create and refreezing
process makes better understanding and create proper change. Also, supply chain issues and
increasing marketing issues require proper strategic approach like when manager implement and
engage new supplier who deliver raw material at good price and maintain good relation with
employee, supplier so it can easily resolve supply chain management issue.
Correspondingly increasing marketing issues from new advancement addition in business
activities is one the biggest issue so this issue can be also resolved with the utilization change
management model and in terms of marketing issues McKinsey 7-s model very beneficial and

when management implements this specific change management model they defiantly resolve
this issues with great manner (Kraus and et.al., 2021). Consideration and identification of change
management model within business activities develop higher effectiveness in management
decision-making and solution of any type of issues. Rising labour cost will be effectively
managed with the application of financial budget variation, new plan and communicate and
discussion creation with labours that they can perform their task with specific salary or not.
Proper evaluation and discussion with client makes more effective results and it resolves any
type of conflicts with great manner. So manager has major duty to continuously resolve conflicts
to it can easily resolve complexities with implementation of new strategies. Also, entrepreneurs
when starts new business they do have duty to engage appropriate employee or experts which
has great idea for evaluation of future risk. Because, risk manager has power to resolve conflicts
with implementation of great manner.
Implementation of change management model mainly provide and develop information
that this specific risk can be resile by this specific structure, method or approaches. Therefore,
idea of this term make sure that business management team directors, risk manager, manager ad
others develop higher consideration and focuses towards with the addition proper structure
analysis which helps to develop better ides or information for managing multiple conflicts
(Palmié, and et.al., 2021). Because its not very difficult to develop customer attraction its can be
easily developed by application of appropriate solution like new services add on, home delivery
of goods, social media communication, reviews, feedbacks from customer and many more.
Throughout the change management model its very clear and consist that Honest Burgers Ltd
industry which face multiple issues, it can easily manage and resolve with implementation of
McKinsey 7-s model and Lewin's change management model.
6.0 RECOMMENDATION
From above study it's been identified that Honest Burgers Ltd industry who mainly
provide services to young people who mainly interest in eating food from restaurant and unique
interior restaurant at reasonable price. Company manager has duty that when they evaluate any
small issues which affects on business activities, its important term that they implement best
practices and resolve issues. Also, one of the major term which requires within in food
distributors industry that they do have duty to engage new food products which attract audience
attraction and throughout the social media application they do have to develop marketing.

Expansion of marketing activity is one of the most attractive tool for resolution of consumer
trend and marketing issues.
Individual has idea that technology change require cost but application of social media
application which mainly uses by almost every individual into recent market trend. Thus, idea or
knowledge of this term make sure that business manager resolve complexities with the help and
utilization of appropriate social media tools and create page on websites, Instagram, Facebook
which mainly used by audience (Miceli and et.al., 2021). So application of this strategy is best
and most effective process to develop continues attraction of audience. Having appropriate
methods or applications of marketing tools is very important term to add on into business
according to recent market trend because throughout the customer feedbacks, reviews makes
better understanding that which type of food burgers they want from this specific business. And
they get satisfy from the services of employees or not.
On the basis or current market trends its clearly analyse that almost young people when
decides to take food from restaurant they mainly analyse how many people prefer this specific
restaurant food, likes, comments on social media sites. Because it provides effective information
that which type of services is best of this specific organization. From the social media comments
young people decide that they do have to buy food from this specific industry or not. So
resolution multiple challenges and conflict of Honest Burgers Ltd industry can be easily
managed with the application and utilization of appropriate tools and techniques of digital sites.
CONCLUSION
The above report has discussed about the strategic issues which Honest Burgers is facing.
Issues like managing the rising labour costs, management of food waste and the loss meeting the
changing consumer trends, advancement of the technology. It is very important to address and
analyse these issues as they are becoming barriers between achieving the goals and objectives for
Honest Burgers Ltd. This report has also stated the solutions by using the Lewis change
management model and McKinsey 7s model to analyse these issues and challenges and how can
these solutions be implemented in Honest Burgers to increase the efficiency of the organization.
Along with this, this report has suggested the ways which Honest Burgers can use to overcome
these issues and challenges of the organization.

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