Strategic Management Report: Analysis of Hungry Jack's Business

This report provides a strategic management analysis of Hungry Jack's, examining its internal and external factors. The report includes a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. It also utilizes a Five Forces analysis to understand the competitive landscape. Furthermore, the report explores strategies at functional, business, corporate, and international levels to gain a competitive advantage. Finally, it offers recommendations for future strategic directions, covering aspects like product diversification and service quality improvement. The analysis considers factors such as brand image, market penetration, product mix, and competitive rivalry within the fast-food industry, emphasizing the importance of adapting to consumer preferences and market trends.

Running head: STRATEGIC MANAGEMENT
Strategic Management: Hungry Jack’s
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Brief Description of Hungry Jack’s.................................................................................2
2.2 Analyses of Internal and External Factors of Hungry Jack’s...........................................3
2.3 Proper Explanation of the Strategies to be used at Functional, Business, Corporate and
International Levels for gaining Competitive Advantages....................................................7
2.4 Suitable Recommendations for Future Strategies to be adopted by Hungry Jack’s......10
3. Conclusion............................................................................................................................11
References................................................................................................................................12

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1. Introduction
Strategic management refers to the constant preparation, monitoring, analyses and
even evaluation of every significant feature, which is needed for an organization to fulfil the
major goals or objectives (Rothaermel 2017). The major changes within the environment of
the business require these organizations to continuously evaluate the strategies for gaining
high success. It also needs a subsequent commitment towards strategic planning for involving
the organizational capability of setting the long term or short term objectives and even
planning all of strategic decisions, resource allocations or activities, needed to achieve the
goals (Ansoff et al. 2018). It is the process to control various organizational strategies for
making subsequent logical decision and even developing new objectives promptly to keep
speed with the evolving technologies, business or market conditions. The following report
outlines the strategic management case report of a popular food franchise, Hungry Jack’s
with proper details like analysis of internal as well as external factors and suitable
suggestions for their futuristic strategies.
2. Discussion
2.1 Brief Description of Hungry Jack’s
Hungry Jack’s Pty Ltd. is one of the major and the most significant fast food franchise
of the Burger King Corporation in Australia. This particular organization is owned by Jack
Cowin. Hungry Jack’s eventually operates and sub licences the major restaurants within
entire Australia (Hungry Jacks.com.au. 2020). Since the master franchise for this country, the
organization is responsible for providing licenses to the new operators and also performing
new standards oversight of the franchised location. The organization was founded in the year
of 1971 and the headquarters is in Sydney, Australia. The total revenue of this organization

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was 1.043 billion Australian dollars in the year of 2010 and gradually they are increasing
their business.
They have been getting high success in their business for the last few years and have
always considered customer satisfaction on top priority. However, for better achievement of
the strategies, it is required to complete analysis of the internal and external factors of Hungry
Jack’s and provide suitable recommendations regarding their futuristic strategic management.
The mission of this significant organization is to ensure that their guests would return after
getting great food through the highest standard of cleanliness, services and quality every time
in the business (Hungry Jacks.com.au. 2020). The vision of this organization is to keep
serving good food, employment of greater people, serving the stronger communities and then
doing their job with high integrity.
2.2 Analyses of Internal and External Factors of Hungry Jack’s
The internal analysis of an organization is the proper exploration of the organizational
competencies, cost positions as well as competitive viabilities within the respective market
place. Hence, conduction of the internal analyses eventually incorporates different measures,
which ensure subsequent information about organizational strength, weakness, opportunity
and threat (Hill, Jones and Schilling 2014). These data are generated by the internal analysis
and are being utilized for the purpose of developing various objectives of strategic planning
for the purpose of sustaining and growing the business. A detailed SWOT analysis of Hungry
Jack’s for identifying the internal factors is as follows:
i) Strengths: Hungry Jack’s has been providing services to its customers for more
than 48 years and have become extremely popular and significant, in terms of business
strategy execution (Moutinho and Vargas-Sanchez 2018). The major strengths of this specific
organization is on the basis of the organizational business capabilities and the strategic

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factors are required to be determined for creating business capacity and continuous
development. The first and the foremost strength of Hungry Jack’s would be its strong brand
image. It is required to keep a strong brand image for bringing success in the business. An
effective branding could eventually build up the reputation and make stand from the
competition as well as project the values for attraction of their ideal customers. High market
penetration is the second significant strength of this specific company, by which the
organization gets the idea about organizational investment and reason for making the product
an established one, as compared to others (Noe et al. 2017). Moreover, Hungry Jack’s has
moderate differentiation of products and this is responsible for better execution of
organizational strategies and objectives in the most effective manner.
ii) Weaknesses: In spite of having several distinct and vital strengths, Hungry Jack’s
does comprises of few weaknesses that are extremely noteworthy and should be considered
on top priority. These weaknesses are mainly linked to business model as well as general
strategic approaches (Lasserre 2017). Moreover, these weaknesses are responsible for
reducing or limiting the organizational effectiveness to a high level. The first major weakness
of this organization is its easily imitable business. Since they are into the fast food business, it
becomes quite easy to become a high competition in the existing market by decreasing costs
and increasing marketing. Another significant weakness of this specific organization is its
limited product mix (Hill 2017). This particular weakness is responsible for preventing the
organization from attracting different customers looking for better options. Furthermore,
although Hungry Jack’s has grown popular in the entire Australia through franchising, the
subsequent model is weak as it restricts corporate control over the approaches to
management.
iii) Opportunities: The next vital internal factor is opportunity in the SWOT analysis.
These opportunities are responsible for presenting options regarding business growth and

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development (Stead and Stead 2014). The first significant opportunity of this organization is
diversification and product mix widening. They can easily add new product lined to their
product mix for attracting more customers. Moreover, the organization can also establish new
businesses as the major part of market development for obtaining more revenues and
reducing the impact of market risks. Hungry Jack’s even has the opportunity of increasing
service quality as the method of differentiating its business from its distinct competitors
(Morschett, Schramm-Klein and Zentes 2015). Another vital opportunity of the organization
is that they can improve their service quality for requiring new strategies, majorly for market
development and diversification.
iv) Threats: The threats against Hungry Jack’s majorly focus on the market
conditions and these external strategic factors, which reduce or limit the business
performances are referred to as the major threats (Goetsch and Davis 2014). High
competition with different similar fast food companies is referred to as the most significant
threat for this organization, after considering the organizations such as Wendy’s and
McDonald’s. There is a chance of imitating the business model and it could lead to the threat
of imitation by the new entrants. Moreover, in today’s world, most of the youth generation is
following a trend of healthy lifestyle (Gamble, Peteraf and Thompson 2014). The products of
the organization are often criticized as unhealthy and should be modified according to the
health factors, under every circumstance. These threats are required to be eradicated on top
priority.
External analysis, on the other hand, is the objective assessment of the entire changing
world, where an enterprise is working for having a major warning system to identify the
external potential opportunities and threats. A detailed Five Forces analysis of Hungry Jack’s
for understanding its external factors are as follows:

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i) Competitive Rivalry: The first and the foremost force of these five forces analysis is
competitive rivalry. This particular force is considered as a strong force for the organization
of Hungry Jack’s and few factors are needed to be taken into consideration for this purpose
(Meyer, Neck and Meeks 2017). These three distinct factors to understand organizational
competitive rivalry include higher number of various competitors, higher diversity of firms
and finally lower switching cost. This quick service restaurant is being saturated with various
firms of different size and is required to be considered on top priority for ensuring that the
force is stronger and would be providing maximum success to the business.
ii) Bargaining Power of Buyers: The second important and significant force of
Hungry Jack’s to learn about the external analysis is bargaining power of buyers. The
consumers impact the performances and overall environment of this company and it also
discovers the overall customers’ influence over the firm (Frynas and Mellahi 2015). The most
significant external factors include lower switching cost, higher substitute availabilities and
even moderate presence of consumer businesses. This particular force of bargaining power of
buyers is a stronger force. The condition empowers the clients in making proper decisions,
which impact on the business.
iii) Bargaining Power of Suppliers: Another vital and noteworthy force of Hungry
Jack’s to learn about the external analysis is the bargaining power of suppliers. These
suppliers is responsible for affecting the quick service restaurant via several variables such as
supply control and pricing (Morden 2016). This particular impact of the suppliers over the
organization of Hungry Jack’s is a weak force. The factors include higher number of
suppliers, higher overall supplies and lower forward integrations. Several suppliers are
present for competing to provide the products to the organization. Moreover, there exists a
reduction of supply of different ingredients and raw materials.

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iv) Threat of Substitutes: Another strong force of this specific organization is the
threat of substitutes. This particular force is responsible for determining the overall influence
of the substitution within their fast food restaurant (Hubbard, Rice and Galvin 2014). The
main factors of this strong force include lower switching cost, higher availabilities of the
substitute and even satisfactory performances of the substitutes. The major clients could
easily and promptly transfer from Hungry Jack’s to the substitutes. Several substitutes are
present like fine dining restaurants as well as home cooking and the conditions could easily
make strong chance of this substitution threat against the restaurant. The various conditions
include taste, cost and all other criteria.
v) Threat of New Entrants: The final significant force of Hungry Jack’s is the threat
of the new entrant. The new entrant could interrupt the overall performances of the company.
The major impacts of this new entry over the fast food restaurant are being evaluated after
analysing the environment properly (David and David 2019). The most significant factors of
this force include lower switching cost, moderate expense disadvantages and even moderate
costs of doing businesses. It is a moderate force for understanding the financial challenge of
the new entrant. It is a considerable issue for the organization and should be considered on
top priority.
2.3 Proper Explanation of the Strategies to be used at Functional, Business, Corporate
and International Levels for gaining Competitive Advantages
The organizational strategy can be referred to as the summation of the actions that any
organization has the intention of taking to obtain the long term objectives. These distinct
actions eventually make up the strategic plan of the respective organization (Bryce 2017).
The top management can create a large organizational strategy and the middle or low
management adopt distinct goal as well as plan for fulfilling the entire strategy sequentially.
This entire procedure of this strategic management would be extremely helpful for the

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organization to undertake stock of the present situation, find out the strategies, implement
them and also complete analysis of the overall effectiveness of the deployed management
strategies (Bettis et al. 2014). It is eventually predicted over the organizational clear
understanding of their mission and purpose for existence as well as its subsequent vision for
where it expects to be in the future and even the respective values that would guide their
relevant action.
This type of strategy is being taken from the organizational mission that explains the
reason of business growth. Each and every activity within the business should seek for filling
the purpose and undertaking strategic decisions. Functional objectives are obtained
eventually and the short term plans and goals are being converted to proper strategies (Simon,
Fischbach and Schoder 2014). Hungry Jack’s has been using different distinct and
noteworthy strategies for separate levels of functional, business, corporate and international.
Each of these strategies are being made by the strategic analysts of the company and they
have been getting high success for this purpose. Since it is the franchise of Burger King, they
are following the similar organizational structure of centralized functional structure and are
following three significant characteristics of globalized centralization, functional groups and
finally geographic divisions (Trigeorgis and Reuer 2017). With the implementation of global
centralization, they are able to maintain a major management team, which takes maximum
decisions in their business. The second aspect of functional group is responsible for spanning
the global organization.
i) Functional Strategies: The various business functions such as legal, information
technology and human resource management are being executed by the respective business
easily and promptly and they are getting high success without much complexity (Steiss
2019). They have involved suitable management for the organization like Senior Vice
President for the Global Operations and EVP for Global Chief Marketing Officer and Finance

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Department. The major functional strategies of Hungry Jack’s include functional strategies
for purchasing and material management and strategies for operations and production of the
company. As a result, they are able to improve the quality of purchase at low costs,
negotiation practice with vendor as well as analysis of the performances of the purchasing
staff (Hanson et al. 2016). Moreover, Hungry Jack’s has also included marketing concepts,
management of the product life cycle and refining product mix. Hence, the functional
strategies of the organization are extremely effective and they are bringing profit to the
organization.
ii) Business Strategies: The organization is following 2 distinct generic strategies for
obtaining competitive benefits easily and promptly, which involve cost leadership as well as
broad differentiation. These intensive business growth strategies are considered as the main
contributors to the global growth of the organization (Hitt, Ireland and Hoskisson 2016). A
proper amalgamation as well as deployment of intensive and generic strategies could
eventually lead to the competitive advantages in their business of Hungry Jack’s. Moreover,
the generic strategy supports the competitive advantages on the basis of pricing, product
features and costs. The incrementing market share is major thrust of their intensive growth
strategies. Hence, it refers to the fact that Hungry Jack’s is extremely effective in
understanding their generic competitive strategies.
iii) Corporate Strategies: This type of strategy is the method, by which a specific
business is able to create values, develop a unique selling benefit as well as capture the
maximum market shares (Meyer, Neck and Meeks 2017). Hungry Jack’s has implemented
different business activities for ensuring better strategies in the growth platform. It involves
proper formulation and deployment of the most significant goals and objectives that are being
undertaken by the organizational top management on the behalf of their owners, on the basis
of consideration of resources or even a proper evaluation of different internal as well as

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external factors. The major types of the corporate growth strategies include horizontal
integration, market penetration, diversification and vertical integration (Morschett, Schramm-
Klein and Zentes 2015). They have involved corporate strategies in their business for dealing
with the complexities and issues effectiveness and hence have achieved high success in the
business.
iv) International Strategies: Currently, Hungry Jack’s is doing business in domestic
market only, i.e. in Australia, however they will be entering into the international market by
incorporation of different strategies. Strategic management ensures overall direction to the
enterprise and also includes specification of different organizational goals, development of
plans and policies for achievement of the objectives and finally allocation of the resources for
deployment of the plans (Moutinho and Vargas-Sanchez 2018). The global aspect of this
business is higher integration and low responsiveness. The standardization strategy is also
considered by the organization to ensure that better effectiveness and efficiency is gained
under every circumstance.
2.4 Suitable Recommendations for Future Strategies to be adopted by Hungry Jack’s
Suitable recommendations for the future strategies that should be adopted by Hungry
Jack’s are as follows:
i) Implementation of Better Marketing: The first and the foremost recommendation
for future strategies in the organization would be deployment of better marketing. Since, this
organization is doing business in Australia, they would have to increase their marketing skills
for ensuring that better effectiveness and efficiency is being obtained under every
circumstance (Ansoff et al. 2018). It would help them in addressing the force of competition
and also improve the business strategies easily.

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ii) Improvement of Product Quality: The second important and significant
recommendation for future strategies in the organization of Hungry Jack’s would be
improvement of the product quality. It would help them in attracting and retaining the
customers in the most effective manner and the organization would be in a strong position in
the existing market. As a result, the youth generation would be able to improve their brand
image for maintenance of higher performance, in spite of saturation in the fast food restaurant
(Hill, Jones and Schilling 2014). This organization would be counteracting the threat of new
entrants and they would be achieving success to a high level.
iii) Making Business Internationally: The final suitable and effective
recommendation for future strategies would be making the business internationally.
Currently, they are doing business only in the host country, i.e. in Australia. It is highly
recommended for them to expand their business to other parts of the world, like in Asian
countries, US and Africa. It would be effective for them to understand the current position of
the international market and they would get high success by competing with other popular
fast food companies like KFC, Mc Donald’s without much complexity and issue.
3. Conclusion
Therefore, a proper conclusion can be drawn that this strategic management helps a
company in gaining competitive advantages, improvement of market shares and also planning
for the future. The five vital phases of the strategic management process involve evaluation
of the organizational current strategic directions, recognition as well as analyses of various
internal or external strength and weakness, proper formulations of action plan and
accomplishment of action plans. Three unique and significant principles of the strategic
management involve creation of a unique and valuable market position, creating subsequent
trade-offs after choosing the factors and also creation of the proper aspect by alignment of the