Wil’s Grill is an initiative by John Christ and Karl Shilhanek in the year 2014. John Christ, who was highly influenced by his parents’ food service and catering business, initially conceived the idea of this fast food business. The duo have research had on the target market and have noticed that the fast food business can have a potentially significant future if it is introduced as a mobile food business. Moreover, Wil’s Grill focuses on providing the customers with quality food products. The ingredients that they use are primarily locally harvested and organic. Wil’s Grill also aims at producing versatile food items that satisfy the desires of the customers. In this regard, the organization aims at prioritizing their customers. After its initial success, Wil’s Grill is presently aiming at expansion. The present report hence will focus on the various internal as well as external factors that can play influential roles in the future expansion. Moreover, a detailed analysis has been done to identify the suitable action for the organization, in order to move forward.
In order to analyze the future prospects for the organization, analyzing the internal and external factors, which play influential roles, are highly important. As I have noticed from the case study, that the organization has gained significant recognition within a short span of time (Piekkari, Welch & Welch, 2014). Hence, internal and external analysis will be done in order to identify the strengths and future opportunities of the organization.
In order to identify the internal factors that are influencing or affecting the organization, I have performed a SWOT analysis of Wil’s Grill.
Business expansions are not only influenced by the internal factors, but they are also highly influenced and at times affected by the external factors as well. In order to support the process of Wil’s Grill’s expansion, a thorough analysis of the external factors is also important.
The political factors cannot affect the expansion process of Wil’s Grill. It is known that the organization is focused on producing and delivering foods that are healthier and has nutritious values. It has been noticed that the political regulations urge the organizations involved in the food service sectors to reveal the number of calories present in the food items (Thomas, 2015). Moreover, I think that the government is also influencing the citizens to opt for healthier food options. For Wil’s Grill this should not pose as threats as they primary aim of the organization has been to provide the consumers with healthier and hygienic food options.
For Wil’s Grill, environmental factors are not to be regarded as having high influence. The organization has already gained the efficiency in assessing the needs of the target market and produce foods that contains locally grown and organic ingredients. However, I feel that Wil’s Grill needs to focus on the environmental issues related to the process of food preparing (Kowalkowski et al., 2015). Moreover, a well-constructed waste management method should be employed.
The trends and tastes of the consumer base shifts continuously. In this regard, it can be said that Wil’s Grill needs to keep pace with the changing demands. Moreover, from the case study I have noticed that the choice of catering services and specialties were varied amongst the customers. Hence, the organization needs to keep up with the demands of the potential consumers.
Adopting new and effective technologies are always crucial for business expansion. From the market survey, it has been noticed that 72% of the respondents have not heard about the organization (Thomas, 2015). Hence, I think Wil’s Grill should focus on marketing on social media. Moreover, in order to expand to the catering service, Wil’s Grill needs to take up new technologies in order to support the process of establishment.
For any expansion, legal constraints play vital roles. For Wil’s Grill as well stepping to a new market will come up new legal issues. Hence, according to me John should be aware of all the necessary legal constraints and work in order to reduce them.
Economic scenario of the country plays influential roles in business expansion. Coming up with cost effective options are important in this regard (Kowalkowski et al., 2015). Moreover, I feel that the interest rates, changing taxation policies and the buying capacities of the consumers are some of the factors that can affect any expansion.
From the major issues that have been identified by the internal and external analysis of the organization, several factors can be identified that are affecting the expansion.
In order to decide the appropriate alternative for the business expansion, analyses of the possible strategies are to be done. In this regard, it can be said that the expansion strategies mostly depend on five different types (Banalieva & Dhanaraj, 2013). Expansion through concentration, diversification, integration, cooperation and internationalization are the prominent strategies that are followed by organizations in order to support expansion. For Wil’s Grill, the strategy of expansion through diversification and integration can be regarded as effective ones.
Expansion through diversification is a strategy that includes the strategy of bringing a new product to the market. In addition to that, the strategy also involves expanding to a new market. The primary advantage of this strategy is that the organizations adopting it become capable of overcome the possible economic downturns (García-Herrero & Vazquez, 2013).
Advantages
In the context of Wil’s Grill, it can be said that adopting this strategy can be helpful in supporting the huge expenses that are needed in order to expand (Banalieva & Dhanaraj, 2013). Moreover, I think that the strategy will also be helpful in gaining financial advantages. As per my assumption, the diversification strategy will alos be helpful for the organization in gaining risk protection.
Disadvantages
However, it can be said that taking up the strategy might be difficult for Wil’s Grill as it includes both options of including adopting new market as well as introducing new products.
Another effective strategy is expansion through integration. The strategy combines present operations without changing the customer groups (Hutzschenreuter & Horstkotte, 2013).
Advantages
In the context of Wil’s Grill, it can be said that integration strategy may help in widening the scope of the future expansion.
Disadvantages
However, integration strategy primarily focuses on the needs of the existing customers. However, according to me the strategy will not be effective for the organization as it may hamper the value of the organization. In addition to this, I think that the organization is aiming at expanding the business to a completely new market (García-Herrero & Vazquez, 2013). Hence, it will be crucial for them to understand the legal repercussions that can be heightened by the failure of integration strategy.
In the context of Wil’s Grill, I think that expansion through diversification will be the most effective strategy to be implemented. The organization is aiming at capturing a new target market and adding a new segment of catering service to the business. In this regard, it can be said that in order capture a new target market, the organization needs to introduce new items and food products. Hence, the diversification strategy will be the most effective one.
In order to implement the strategy effectively, the organization needs to take up few actions. As per my analysis, Wil’s Grill needs to take up employee training programs as one of the most important aspects of implementing diversification strategy (Hitt, Li & Xu, 2016). The organization needs to prepare proper marketing and advertising strategies to support the expansion process. As Wil’s Grill is entering into a new market segment, creating brand awareness and grabbing attention of the potential consumers are highly important. In addition to this, I think Wil’s, Grill needs to revamp the organizational strategy as well as the vision statement of the organization (O’Brien et al., 2014). From the case study, it has been noticed that the initial motto of the organization was perfectly fit for the street food segment. However, it does not sit well with the present expansion aim of the organization. In addition to this, Wil’s Grill needs to take up cost effective methods of expansion and overcome the make effective financial planning to overcome the debt that will occur during the expansion process. Moreover, Wil’s Grill needs a structured organizational functioning and management that will ensure the roles and responsibilities of individual employees. This will ensure smooth functioning of the organization.
References
Banalieva, E. R., & Dhanaraj, C. (2013). Home-region orientation in international expansion strategies. Journal of International Business Studies, 44(2), 89-116.
Banalieva, E. R., & Dhanaraj, C. (2013). Home-region orientation in international expansion strategies. Journal of International Business Studies, 44(2), 89-116.
Bordo, M. D., & Haubrich, J. G. (2017). Deep recessions, fast recoveries, and financial crises: Evidence from the American record. Economic Inquiry, 55(1), 527-541.
Carayannis, E. G., Sindakis, S., & Walter, C. (2015). Business model innovation as lever of organizational sustainability. The Journal of Technology Transfer, 40(1), 85-104.
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