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.
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 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).
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.
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 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 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).
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. 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.
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.
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 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 the urban areas of Australia. The company ensure that they are able to meet the needs of the different income group’s members.
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.
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.
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.
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.
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-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.
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: –
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.
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).
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.
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.
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 the company side make the customers visit again the store for the quality services. Thus, this reflects that the company fulfil the test of the important value to customers. Moreover, the quality products that are offered by the company improve the number of visitors in Australia that works as a core competency.
This has been found from the analysis that Grill’d company deals with the different issues present in the market. These issues include identification of the needs and demand of the customers that are present in the market which can be fulfilled with the effective use of the information system. The company should make use of the decision support system that helps the company to make effective decisions. The company can get the information from the market but with the support of the decision support system, they can make effective decisions that work for the company. Moreover, the company need to take strong decisions for expanding the business and also for fulfilling the goals. The external data use in the Grill’d company will help them in enhancing the skills and improving the operations.
At the end from the analysis, this has been suggested to the Grill’d company to bring the diversification strategy. The strategy shows that the company need to bring wide range of products and services in the market according to the needs of the customers. This diversification means that company should expand their category of fast food from burgers to other snacks available in Australian market.
In addition, it is suggested to the company to take the steps for expanding the business in the international market across the borders that the motive to attain the maximum profit for the company. This is possible when the company will make use of the global strategy that includes the offering of products across the world with the same standard.
Conclusion
In the end, this can be concluded from the above analysis that Grill’d company is one of the local company in Australia who makes use of the strategic analysis to deal with the competition present in the fast food industry because they are dealing with the different issues in the market. This includes legal obligations that are faced by the company that work as huddle for the future expansion of the business in the market. This has been found that the company abide by all rules and regulations so that they can effectively manage their fast food business. Further, the issue that is faced by company is changing in preference of customers to identify the decrease in sales and to recover the same. The findings of the report include the internal and external analysis that helps them in making the strategies. The analysis found that the company have threats from the companies including McDonald’s and Burger King in the market of Australia. The analysis shows that the company have enough capabilities to compete in the market with the optimum utilization of the resources effectively.
References
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David, F.R. (2011) Strategic management: Concepts and cases. India: Pearson/Prentice Hall.
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