HI5019 Strategic Analysis of Grill'd Burgers in Australian Market

This report conducts a strategic analysis of Grill'd Burgers, an Australian food chain operating in the fast-food industry. It includes an external analysis covering the general environment (political, economic, social, technological, physical, demographic, global, and legal factors), industry environment (Porter's five forces), and competitive environment, identifying opportunities and threats. The internal analysis examines Grill'd's tangible, intangible, and human resources, capabilities, and core competencies. Finally, the report offers recommendations for strategic improvements, emphasizing adapting to changing customer preferences and maintaining a competitive edge in the Australian market. This analysis aims to provide a comprehensive understanding of Grill'd's strategic position and potential for growth.

Strategic Information System
1/15/2019

Strategic Analysis 1
Contents
Introduction......................................................................................................................................3
About Grill’d Burgers..................................................................................................................3
Company’s Industry.....................................................................................................................4
General environment analysis..........................................................................................................5
Political factors............................................................................................................................5
Economic factors.........................................................................................................................5
Social factors...............................................................................................................................5
Technological factors...................................................................................................................6
Physical........................................................................................................................................6
Demographic................................................................................................................................6
Global..........................................................................................................................................7
Legal factors................................................................................................................................7
Industry environment.......................................................................................................................7
Porter’s five forces.......................................................................................................................7
Competitive environment................................................................................................................8
Opportunities and threats.................................................................................................................9
Opportunities...............................................................................................................................9
Threats.........................................................................................................................................9
Internal analysis.............................................................................................................................10

Strategic Analysis 2
Resources...................................................................................................................................10
Tangible resources.................................................................................................................10
Intangible resources...............................................................................................................10
Human resource.....................................................................................................................11
Capabilities................................................................................................................................11
Core Competency..........................................................................................................................11
Information system solution..........................................................................................................12
Recommendations..........................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Bibliography..................................................................................................................................17

Strategic Analysis 3
Introduction
The aim of the report is to conduct the strategic analysis of the local organisation that is
operating their business in the market of Australia. Strategic analysis is referred to as the process
of conducting the research based on the organisations operating in the environment and to
implement the strategy. The company that has been selected for the strategic analysis is Grill’d
Burgers who is operating their business in Australia. This has been found that the Australian
market is evolving due to that the competition among the companies is increasing in the market.
This makes the company form different strategies after considering the changes in the external
environment of the company.
The report majorly focuses on the external as well as the internal analysis for the company that
helps them in making effective strategies. The study of the external analysis includes
environmental analysis, industry analysis, competitive environment with analysis of the threat
and opportunities that the company has in the Australian market. In addition to this, the internal
analysis is also discussed in related to the company that includes the firm's resources, tangible
and intangible with the core competency analysis. In the end, the recommendations are proposed
to the company that is linked to the changes that the company should bring in the strategy of the
organisation.
About Grill’d Burgers
Grill’d Burger is one of the well-known Australian food chains that is specialist in burgers and
company was established by Simon Crowe. The company majorly offers burgers as their core
products in the market that include both vegetarian and non-vegetarian products. Further, this has

Strategic Analysis 4
been found the company opened approx. 35 restaurants in the year 2010 and the number
increased by the year 2013 with approx. 125 restaurants (Grill’d, 2018).
Company’s Industry
The industry in that Grill’d company is operating their business is fast food industry that is
rapidly increasing and growing in the market of Australia. Further, this has been found that the
industry in that the company is operating is growing and expanding across Australia.

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General environment analysis
The general environmental analysis includes the different factors that affect the working of the
business in the Australian market (Baker, 2014). These factors are discussed below: -
Political factors
Political factors include different elements that affect the working of company that majorly
include regulations, policies and plans (Chernev, 2018). Grill’s Burgers is following all the
regulations that are imposed by the Australian government. This has been found that the
Australian government introduced new restrictions and regulations for the sourcing and
procurement of beef that is majorly used by the company in their products. Though, the company
ensure that they abide by all regulations and company source major products from their farms
that surely give rise to the quality of products.
Economic factors
Economic factors are considered as the essential factors that majorly include the effect on the
inflation rate, GDP, purchasing power that affect the working of company. In Australia, the GDP
is growing as the per capita of Australia is approx. $56,135 that shows that there is increase in
the purchasing power that will contribute to increasing profit and sales of the company (Trading
Economics, 2018).
Social factors
The cultural and social factors are also considered because this shows the preference of
customers with their buying behaviour for the products (David, 2011). The change in the
preference of the customers shows that they are becoming more focused on healthy products.

Strategic Analysis 6
This might be threat for the Grill’d burgers that make the company ensure that they are offering
healthy and quality products with low sugar, no carb, green veggies and many others. According
to the changes, the customer’s needs are expanding due to that they should start offering the
drinks along with snacks.
Technological factors
Grill’d Burgers get affected due to the numerous changes or up-gradation that take place in
technology. The company use advanced technology for promoting their products in the
Australian market (Dawson, 2014). This includes the use of YouTube, Facebook, LinkedIn and
many others and these channels contribute in improving the sales and revenue. Further, the use
of advanced technology helps the company to maintain a competitive advantage effectively.
Further, the technology is bringing the new ways of producing the products.
Physical
Grill’d company is performing the operations in the Australian market fast food industry due to
that it directly creates an impact on the environmental factors (Frynas and Mellahi, 2015). The
company majorly make use of natural resources and vegetables for providing financial products
to customers. Grill’d company understand their role towards the environment due to that they
make use of the paper instead of plastics that contribute in reducing the effect on the
environment. Moreover, Grill’d burger company make use of resources that provide the different
benefits that include elimination or reduction in waste and others.
Demographic
Demographic majorly include the population with the diverse age group, the population of the
country is increasing and register approx. 1.8% in the year 2012 and most of the people live in

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the urban areas of Australia. The company ensure that they are able to meet the needs of the
different income group’s members.
Global
Global factors are essential to be considered by the Grill’d company while making the strategies
(Ho, 2014). The global environment includes rapid changes that make the company obliged to
follow the same. Currently, the global environment shows the promotion to the companies for
expanding their business in countries that leads to the rise in competitive of Grill’d company.
Legal factors
The legal element brings the changes in regulations and obligations that affect the company. This
influence remains not only in Australia but across the border that is one of the reason due to that
Grill’d company is offering their products in the Australian market only.
Industry environment
Porter’s five forces
The model of Porter's five forces helps the company in evaluating the competitiveness in the
Australian market (Wheeler and Hunger, 2017). This section includes analysis of the Grill’d
Burger competitiveness in Australia: -
Bargaining power of suppliers: - Grill’d company finds the huge availability of the suppliers in
the market from that they can source the goods but generally the company source it from their
own farms due to that they need some raw material in small quantity. This makes the bargaining
power of suppliers as moderate.

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The threat of new entrants: - The Australian market offers a huge opportunity to the fast food
industry that allows the company to expand the business. Though the expansion of companies
needs huge funds for setting up the operations in Australia and it is difficult for new companies
to expand due to high competition.
Bargaining power of customers: - The power of customers is generally high in the fast food
industry because there are different companies that are performing operations in this industry.
Thus, Grill’d company find that buyers have low switching cost and they switch when they find
changes in price and quality with the healthy products.
The threat of substitutes: - In the Australian market, there is a high threat of substitutes as
Australian people can cook the food by themselves and can also visit the rivalry companies like
McDonald’s, Pizza Hut and many others.
Intense rivalry: - Grill’d company deals with the high rivalry in the Australian market because
there are different companies (McDonald’s and Burger King) who offer products to the
customers and leads to tough competition.
Competitive environment
The Australian market is considered as an intensely competitive environment that makes the
Grill’d burgers to form the new strategies that help them to face the competition. The major
competitors that are present in the market include Burger King and McDonald's as they offer
wide range of products and capture the large market share. These companies have the skills and
capabilities that are used by them to attract maximum customers by offering a different variety of
products. This is evident with the menu of McDonald’s company that include veg and a non-

Strategic Analysis 9
veg burger with Sandwiches, puffs, cold drinks, wraps and many others (Macca, 2018). This
reflects that the company make use of the differentiation marketing strategy. In addition, this has
been found that McDonald’s have opened different stores at the prime locations that are one of
the major strategies. These companies are giving tough competition because they make the
changes in strategy and menu according to the needs of customers that is a threat (Rothaermel,
2015). Thus, the analysis shows that Grill’d get affected due to the rise in competition.
Opportunities and threats
Opportunities
 Grill’d have the opportunity to bring new products in the menu that makes them attract
maximum potential and new customers.
 Grill’d have the opportunity to understand the changing needs by taking the suggestions
and feedback from customers.
 The company has opportunity to customize the services.
 Grill’d have the opportunity to expand the business in other foreign markets.
Threats
 Grill’d company major threat is their competitors that include McDonald’s and burger
king as these company acquire large market share.
 The rise in the number of new companies in Australian market is one of the leading threat
that is faced by Grill’d burgers.

Strategic Analysis 10
Internal analysis
Resources
The internal analysis majorly includes the resources that Grill’d company is able to manage that
include tangible, intangible and human resources (Hill, Jones and Schilling, 2014). The detail
description is given below: -
Tangible resources
The physical resources majorly include 125 outlets of Grill’d company in the Australian market
(Grill’d, 2018). The infrastructure of the company's outlets is impressive interior features such as
modern lighting with a good colour combination, armchairs and soothing music. The physical
resources help the Grill’d company to make effective environment.
Intangible resources
Reputation
Grill’d reputation and image is increasing and improving in the market of Australia. Most of the
people know that the company offers healthy hamburgers effectively as value added services to
the customers. This reputation of the company supports them to improve business operations and
to open the new stores.
Trademarks
Grill’d company ensure that they use trademark that works as resources that prevent the unfair
competition by offering the use of word, logo, design and symbol (Grill’d, 2018).

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Human resource
Human resource is considered as one of the effective resources for the company that helps them
to effectively manage the business operations. Grill’d company provide the employment to more
than 700 employees and further, the company provide wide range of opportunities to the
employees (Grill’d, 2018). Training and development activities are conducted by the company
with the motive to enhance the skills that help in performing the activities.
Capabilities
Grill’d capability include the effective use of the resources that help them to meet the goals and
objectives of the organisation (Kotler, 2015). The employees of the company include different
skills related to leadership that are effective for management. Grill’d company ensure that they
offer a wide range of healthy products that attract a maximum number of people. Further, the
company ensure that they offer healthy products that make them health conscious. In addition,
the managers and leaders of the company put efforts in maintaining the standard in the taste of
the food that is possible with the effective implementation of the standardised strategy. Grill’d
company make use of the on-job training programs that shows the value towards employees and
lead to the improvement in organisations work.
Core Competency
Grill’d maintain the core competencies with the help of the products and services. The
company’s core competency is that they value their customers due to that who’s ever visit the
store the manager listens to them and ensure that offer personalised and effective services to
customers (Chernev, 2018). Core competency contributes effectively in building customer
loyalty by offering the relative discounts and informing them proactively. All these efforts from