MOD003463 - Honest Burgers: Analysis of Challenges and Solutions

This report examines the strategic issues confronting Honest Burgers, a restaurant chain operating in England and Wales. It highlights the significant impact of the COVID-19 pandemic and Brexit on the company's operations, leading to decreased productivity and performance. The report employs PESTLE analysis to identify external business factors and their influence on Honest Burgers. Furthermore, it utilizes SWOT analysis to pinpoint the company's strengths and opportunities, and how these can be leveraged to address weaknesses and threats related to external market challenges. The report also evaluates the implementation of solutions to enhance organizational performance and provides actionable recommendations for overcoming operational issues. The conclusion summarizes the key points of the report in a structured manner.

Undergraduate Major
Project – Integrated
Case Study
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SUMMARY:
The report focuses on the strategic issues that are faced by the organisation of Honest
Burgers that is established in England and Wales. The report focuses on highlighting how the
situation of COVID – 19 pandemic along with BREXIT has majorly influenced the operations of
the business and led in low levels of productivity as well as performance. In addition to this, the
report consists of various challenges that are determined through the utilization of PESTLE
analyses as it helps in identifying external business factors and how the influence the business of
Honest Burgers. Furthermore, the report involves the utilization of SWOT analyses that helps in
identifying the strengths and opportunities of Honest Burger along with how they can be utilized
in order to overcome its weakness and threats which are linked with the external challenges in
the market. Moreover, the report involves evaluation of the implementation of solution relative
to the organization that helps in understanding how the solution will help the business to attain
high level of performance in the market. At last the report consist of suitable recommendation
that the business can use in order to further enhance its ability to overcome issues within its
business operations along with a conclusion that summarizes all the poitns of the report in a
structured manner.
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Table of Contents
SUMMARY:....................................................................................................................................2
INTRODUCTION...........................................................................................................................5
MAINBODY....................................................................................................................................5
Discussing strategic issues..........................................................................................................5
Evaluating challenges..................................................................................................................7
Analysing solution....................................................................................................................13
Evaluating implementation.......................................................................................................15
COCNLUSION..............................................................................................................................16
RECOMMENDATIONS...............................................................................................................16
REFERENCES..............................................................................................................................19
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INTRODUCTION
The hospitality industry is a broad category of fields within the service industry that
consists of lodging, foods and drink service along with event planning. It consist of hotels,
tourism agencies, restaurants and bars. The hospitality industry has taken major hits due to
various external element sin the market. The following report is based on Honest Burger
restaurant based in England and Wales. The report will highlight and discuss strategic issues
along with challenges relative to the chosen organization. In addition to this, the report will
further provide solution to overcome challenges along with their implementation. At last the
report will consist of suitable recommendation for the organization in order to enhance its
performance and productivity in the market.
MAINBODY
Discussing strategic issues.
The strategic issues are those fundamental policy choices or challenges that are required
to be addresses in order to for the organization to achieve its overall set goals and objectives. The
strategic issues serve as a foundation on which business strategies are developed. In context to
Honest Burgers, it has encountered various strategic issues in recent time due to various factors.
This has greatly impacted the performance and productivity of the organisation in order to
proved high level of customer service and satisfaction to its customers. In addition to this, the
strategic issues have been a contributing factor for the organization in develop counter strategies
in order to overcome issues. Given below are some strategic issues encountered by the
organization:
COVID – 19 Pandemic:
The situation of COVID-19 pandemic has had a major impact on the restaurants in the
UK which has negatively influenced their operations within the market. The situation of the
pandemic has introduced elements such as low market share, decreased profitability and an
increase in the concern related to employee and customers safety. In addition to this, it has
infused the operations of the organization as they are no long able to function in a tradition
manner and have to adopt new techniques as well as methods in order to overcome the pandemic
situation. Furthermore, the rules and regulation set by the government do not allow the business
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to operate in an optimal manner due to restriction such as lock down and limited occupancy
within the restaurants. This has lead to major losses within the restaurant industry in the UK.
(Year-over-year daily change in seated restaurant diners due to the coronavirus (COVID-19)
pandemic in the United Kingdom (UK) from February 24, 2020 to December 6, 2021)
From the above graph it can be observed that the COVID – 19 pandemic has caused the
UK's restaurant industry to take a huge hit. This has primarily been the result of measures such
as social distancing and general caution in public places along with customers being force to dine
out less. The graph proves the information that shares a comparison between 2019 and
November 23, 2021 which is a -7 percent drop. In context to Honest Burgers, the organization
encountered various issues due to the situation of COVID – 19 pandemic as it saw a huge dip in
its customer base as well as its ability to generate profitability. In addition to this, it influenced it
overall ability to provide customers with high level of satisfaction through their customer service
which further decreased its customer base in the market. This made it necessary for the
management at Honest Burger to develop suitable and appropriate strategies that will help them
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overcome with the issues of COVID – 19 pandemic in an efficient manner and allow the
business to stay productive as well as performance well in the market.
BREXIT:
The situations of BREXIT has had a negative influence on the restaurant industry within
the UK. It has causes major issues for organisation specific to the food industry as there has been
disturbances in elements such as the supply chain and employees issues. This has forced the
organisation to face strategic issues within their organisation that impact its operations and
influence its performance as well as productivity in a negative way. In addition to this, the
constricted supply chin has caused an increase in the overall raw material acquired by restaurants
which has been reflected in the prices of products serves in the organisation. This has negativity
impacted the behaviours of their customer base and reduced market share as well. In context to
Honest Burgers, the organization encountered various issues due to BRXIT that developed
strategic issues for the organization. The decline in the value of pound increased the raw material
cost for the business (Rosie.,2019) . In addition to this, the overall cost of import foods and
resulted in the decline of customer spending. This has resulted in low generation of profitability
for the organization. Moreover, according to the Bank of England Governor Mark Carney the
price of food could increase between 5 to 10 percent due to BREXIT. The overall increase in
price of due to decline value of pound, imposed tariffs and increased cost at the border as imports
will have to be checked. All these are aspects that have a major impact on the operations of
Honest Burgers and reduce their capabilities to perform in an efficient manner within the market
(Whitney., 2021).
Evaluating challenges.
There are various challenges that an organization has to encounter due to external and
internal factors. These factors negatively influence the operations of a business and hinder its
business operation in the market resulting in low level of productivity as well as performance. In
context to Honest Burgers, there are various challenges that the organization has to encounter
due to external factors that have major impact on its performance along with the ability to
provide its customers with a high level of satisfaction. In order to analyses the challenges that
Honest Burger encounters, PESTLE analysis can be utilized in order to identify and analyses the
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external challenges that impact the operations of the organization (Ritesh.,2020). Given below is
the PESTLE analyses of Honest Burgers:
PESTLE Analysis:
It is an effective tool that can be utilized by an organization in order to identify and
analyses various external factors that have an influence on the operation of the organization.
Given below is the PESTLE Analyses in context to Honest Burgers:
Political:
This factor is concerned with how government policies and actions intervene in the
economy and other facts that impact the operations of the business and consist of tax policies,
trade restrictions, tariffs along with bureaucracy. In context to Honest Burgers, the situation of
BREXT along with the changes made in the laws regarding importing of goods and their tariff
have negatively impacted the operations of the organization (Erik.,2020). This has caused
inefficiency within the supply chain of Honest Burgers resulting in low level of productivity as
well as performance. In addition to this, it has also impacted the price of its products which have
increased due to lack of availability for raw material.
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(The British Pound, Brexit and the Pandemic)
Economical:
This external factor takes into account various aspects of the economy and how the
outlook or each particular are can impact the business. This factor consists of economic growth
rate, interest rates, exchange rates along with inflations and unemployment rates. In context to
Honest Burgers, the economy of the UK has taken a major hit due to the situation of COVID –
19 pandemic as well as BREXIT. This has resulted in an increase in unemployment rates as well
as decrease the purchasing power of customers due to lack of jobs. In addition to this, the
situation of BREXIT has reduced the value of pound further impacting the profitability of the
organization. The negative aspect of the external economic factor has reduced the capability of
Honest Burgers to generate high amount of probability within the market.
(The economic effects of coronavirus in the UK)
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Social:
The social external factors is related to the culture and demographics trends of society. It
consists of social norms and pressures which are the key to determine consumer behaviour. This
factors consists of cultural aspects, health consciousness, population growth rate along with age
distribution. In context to Honest Burgers, the impact of COVID – 19 has directly influenced the
social behaviour of their customers as its has decreased their purchasing power. This is a direct
result of decrease in the value of pound along with an increase in the unemployment rates. Due
to this situation the organization has observe a decree in the customer base along with market
share. This has directly influenced their ability to generate high levels of profits along with their
ability to attract customers
(Percentage Change in life-for-like sales of pub, bar and restaurants groups prior to the COVID
– 19 lock-down in Great Britain in March 2020)
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Technological:
The technological factor is linked with the aspect of innovation within the industry as
well innovation in the overall economy. This is vital as not being up-to date with latest trends in
a particular industry can cause hindrance in operations. In context to Honest Burgers, the
organization and its management are not able to interoperate advance technology within their
supply chain which has been negatively impacted by the situation of BREXIT. This has caused
an increase in the cost of their products and service resulting in reduced customer engagement
along with profitability. In addition to this, the organization has not been able to use technology
within its processing operations that can help the business to keep the price of its products low in
order to attract more customers in the competitive market.
Legal:
This factor is based on legal forces that define what actions a business is allowed to
perform. It involves a relationship between the business and the government relative to
organizational operations. The factor consists of industry regulation, licenses and permits along
with labour laws and intellectual property. In context to Honest Burgers, there have been various
legal aspects such as safety of employees that has raised as challenge due to the COVID - 19
pandemic. The organization has encountered challenges in motivating its employees to work
along with ensuring that they are safe from the pandemic while working for their organization. In
addition to this, it has impacted their hiring operations as well. Furthermore, the organization has
faced the challenges to operate their business according to the set regulation by the government
in the pandemic restriction. This has greatly reduced the productivity of the business and
impacted its performance in the market.
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(What impact do you think Brexit will have on your business in the following areas)
Environmental:
This factor is concerned about the ecological impact of business operations on the
surrounding environment. It included weather conditions, temperate, climate change along with
pollution. In context to Honest Burgers, the organization is focused on fulfilling its
environmental responsibility in an effective manner by utilizing natural resources from reliable
supplies in order to minimize their impact on the environment. Although due to BREXIT the
organization has encountered the challenge of souring its products from the reliable supplier to
an hike import tariffs (Felix.,2020). This has lead to a challenges where the business is not able
to balance the overall price of their products relative to the satisfaction of customers. This has
decreased their customer base as well as market share.
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(Restaurant Industry Collapses Due to Widespread Shutdowns)
Analysing solution.
It is crucial for an organization to develop effective strategies as well as solution in order
to overcome issues within the business. This allows a bushiness to ensure that it is able to
maintain a high level of productivity as well as performance within the market. In addition to this
it helps a business to be proactive. In context to Honest Burgers, it is vital top develop and
analyses solution that will help the organization to overcome challenges and strategic issues in an
optimal manner. In order to develop solution the organization can utilize SWOT analyses as it
will helps the business to identify its strengths and opportunists that will help them to overcome
its weakness and threats in an efficient manner (Skye.,2021). It will allow Honest Burgers to
develop subtitle solutions and strategies based on their strengths which will provide them with
high level of market performance. Given below is the SWOT analysis of Honest Burgers:
SWOT Analysis:
Strength Weaknesses
 The organization is well know in the
market and has established an optimal
reputation through its high level of
customer service along with product
 The organization is not able to reduce
the price of its products due to the
situation of BREXIT that has majorly
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