Gone are the days, when businesses focus only on the conventional strategies for establishing its presence in the market. In fact, innovation has become the keyword for the organizations for sustaining itself for longer timeframe. Many studies have emphasized on analyzing both internal and external market for developing effective strategies in an effective manner. Burger Fuel is a New Zealand based restaurant chain that provides that provide high quality foods and drinks. Presently, Burger Fuel is located around 88 destinations, which increases the convenience level of the customers. Burger Fuel provides different types of food items like French fries, hamburgers, ice cream, milkshakes and soft drinks for grabbing the major share of the market.
The revenue of the Burger Fuel is estimated around 82.8 million USD, which emphasizes the market presence of the organization (burgerfuel.com, 2017). However, the fast food market is extremely competitive that includes Burger Fuel to face competition from both top players like McDonalds and McCafe and also small size organizations. For that reason, the study will focus on evaluating internal and external environment of the market. It would help Burger Fuel to identify the present and future challenges in an effective way. It would also focus on identifying the best competitive strategies for positioning all the products effectively in the market. It would also focus on evaluating the way Burger Fuel can use different capabilities, resources and competency for gaining competitive advantage in the market.
The business organisation Burger Fuel Worldwide Limited is a restaurant located in United States of America and is known for its good quality burgers and other food items like fries, bottled soft drinks, own brand ice cream and juices. It was originated in New Zealand with more than 50 locations, but slowly gained pace in spreading all over the world and opened a large number of its restaurant outlets in USA and other countries. The internal and external environments of Burger Fuel Worldwide have been assessed for gaining an in-depth analysis and ensure successful functioning of the company. The internal environment is analysed with the help of SWOT analysis while the external environment is assessed with the use of PESTEL analysis (Barney¸2014).
The strategic SWOT analysis of the business operations and processes of Burger Fuel Worldwide Limited has been provided for determining the company’s strengths, weaknesses, opportunities and threats faced in business. This will help in analysing the useful components of business processes and furthermore gain competitive advantage by sustaining within the business environment. It is also important for establishing a good business strategy for positioning the organization in accordance with the competition level and monitor the external and internal environment with ease and effectiveness (Eden & Ackermann, 2013).
The major strengths of the organization include good sales network and existing distribution of products and services in various locations all over the world. The workforce consists of very skilful and knowledgeable staffs, because of which the growth rate is high as well as the level of production within Burger Fuel Worldwide Limited in USA. Based on the strengths of the company, the corporate strategy has been developed for analyzing the financial data and gain proper insight about the company (Evans., 2012).
One of the major weaknesses could be the lack of proper structure of cost, which had resulted in setting improper prices for the products and services offered at USA by Burger Fuel Worldwide Limited. There is huge amount of investment done for the research and development purposes, which is considered as one of the areas where the company is weak.
The company has grabbed the various scopes and opportunities, which has lead to delivery of new products and services for the customers and ensure growth in economy. There is also need to capture global market and start international business by attracting more customers from everywhere (Hair et al., 2012). There had also been mergers and acquisition, which favoured the increase in production level and furthermore provided products and services according to the growing demands and preferences of customers in USA.
The cost of labour and raw materials used for the production process is high, and it poses to be a major threat for the organization. There is huge competition in the market with the presence of McDonalds and other take away restaurants. The increasing rate of interest and introduction of GST would further enhance the prices of products and it might be the cause of many customers’ dissatisfaction (Hill et al., 2014).
The PESTEL analysis is done for analysing the political, economic, social, technological, environmental and legal factors, which have influenced business decisions and lead to the strategic management of business processes within Burger Fuel Worldwide Limited.
The political factors include various policies implemented by the Government like the GST which can create an impact on the marketing strategies. With the implementation of GST, there would be enhancement in prices of products and services offered by Burger Fuel. There are other tax legislations, labour laws and trade restrictions, which are needed to be followed by Burger Fuel for ensuring successful business functioning within the business environment. According to the future legislations, the marketing policies are adjusted and products are made available at good prices within various segments of market (Hitt et al., 2013). The Government of USA’s supports for e-commerce has helped in managing online business and allow customers to make online orders with ease and effectiveness.
The international trade agreements have created new horizons for the company to expand business globally. It has helped Burger Fuel to expand its business operations outside New Zealand to United States of America through enhancement of global supply chain.
According to the PESTEL analysis, the company has expanded its operations in developing economies, and this has resulted in high production value and better financial stability, furthermore ensuring growth in economy too (Keupp et al., 2012).
The changes in customers’ tastes and preferences and increased customer diversity have allowed Burger Fuel to develop good marketing strategies and innovate its products for attracting the consumers from different market segments. The company also needs to identify the needs of people in USA and understand any changes in socio-cultural trends that can increase the demand for products. The higher consciousness about health has often created threats for the products of Burger Fuel, as it is believed that these kinds of fast foods are unhealthy. The company has implemented new supply chain policies for ensuring maintenance of animal rights and welfare (Lasserre, 2012).
With the advancement in technology and communication, the new automation system has improved the business operations’ effectiveness and has lead to research and development activities. This has helped in gaining good share of market and ensured improvement in its business performance within the restaurant industry. The mobile technologies have become popular and have allowed Burger Fuel to create an online presence and make people order online and get food items delivered at their doorstep within quick time. Installing a new coffee machine in every outlets would help the company to gain a competitive edge.
The PESTEL analysis covers up the ecological factors that have influenced the company’s macro environment. The changes in climatic conditions can deteriorate the stability of Burger Fuel’s supply chain requirements (Peppard & Ward, 2016). The new machineries and equipments could manage low carbon products that would create lesser harmful impact on environment as well as create a positive mindset among the customers easily.
One of the major legislation is the Fair Trading Act, when an employee if found to carry out any misinterpretation or inappropriate claim regarding the product, then it should be considered as breaching of act. The company has considered the Food Act and all the rules and regulations are followed for maintaining good food and standards and ensure that the customers are kept satisfied and safe.
The legal factors also include implementation of Privacy Act, which allows keeping information obtained from customers safe and secure. It is essential for conducting market surveys and determines the needs and preferences of customers in markets segments, based on which, products and services will be delivered by Burger Fuel Worldwide Limited (Rothaermel, 2015).
A particular socio- demographic group for Burger Fuel Worldwide Limited is the group of young adults. The marketing manager played a vital role in understanding the needs and preferences of customers in the USA market and this helped in targeting the various market segments with ease and effectiveness. The franchise has delivered amazingly tasty food items with a funky feel that has not only attracted the customers of USA but also has created a positive mindset among them regarding the consideration of their tastes and preferences by the company.
A new range of food items is available, which has further appealed the young adults, to try out the new tastes. Thus, the socio-demographic group is the young adults though the focus has been on the core market consisting of individuals aged between 18 and 35. This has established a sense of brand loyalty and trust among the customers, thus influencing their behaviour and making them purchase the products and services on a consistent manner (Slack, 2015). The targeted socio-economic group consists of young individuals, as they follow recent trends quite consistently and enjoy a fun environment, which is exactly what Burger Fuel Worldwide Limited has managed to offer.
USA currently experiences the highest economy and due to its most technologically powerful economy and a gross domestic product or GDP of $46,900, the growth rate rangers around 1.1 percent and the rate of inflation is 3.8 percent. The company has managed to deliver exceptional services and has expanded its range of products in USA with the introduction of food items such as Doofer, new cardboard burger, etc. These are recent innovations, which cope up with the marketing mix elements in an effective manner too. As it is a new entrant in the USA market, so has been a price taker. The cost of production has decreased with the implementation of new and advanced technologies, and new food products such as various wheat and gluten free items are offered too.
The pricing is an important element of market mix and so Burger Fuel has followed both market oriented pricing strategy and bundle price strategy. In order to sustain in the USA market, the company has set prices low according to the conditions of market and supply and demand in the market (Swayne et al., 2012). This has helped in influencing the buying behavior of consumers largely while the bindle pricing strategy has created value meals for customers available at lesser prices when compared to buying of foods separately. Thus, Burger fuel has assessed the market conditions for setting the prices of products and services delivered. This creates good brand image among the young adults who are part of the socio-demographic group and influences them to buy products from Burger fuel rather than from anywhere else.
The first Burger Fuel restaurant in established in Midwest, USA and it has drawn huge numbers of customers and lead to the success of brand as well. There were previous strategic partnerships with Subway, LSS that have strengthened the relationship with other brands and created a sustainable place of the company in the market place. The organic certification has helped in ensuring that good quality ingredients are used for developing the food items and so that the customers who consume those remain safe and healthy (Wheelen & Hunger, 2017). Each of the items of Burger Fuel are 100 percent halal and this has enabled positive changes within the company by developing good quality gourmet burgers for fulfilling the needs and requirements of customers.
The Halal Certification has also enabled the company to ensure that the non-halal foods and halal foods are kept separate. Burger Fuel delivers good quality food items consisting of food components, which are halal certified such as chicken and beef patties. The halal approved suppliers provide raw materials and resources of good quality for maintaining the food quality standards and keep the customers satisfied (Barney, 2014).
There are many competitors in the US market including McDonalds, Burger King, Butcher Burger, etc. butcher Burger offers 21 different types of sandwiches including variety of beef sandwiches and chicken sandwiches. The competitors have been monitored and according to that, the company has differentiated its products and services in the market. The company has positioned its products and services properly and made good quality halal food items available, that created a stir among the US market segments and influenced the customers to buy those too.
As per the article by Kang, Tang and Fiore (2014) core competency reflects as the combination of multiple skills that allows an organization to distinguish itself from all the other competitors. Now, as Burger Fuel is facing immense competition in order to sustain in the market, it will have to focus on utilizing all the core competency factors appropriately. For instance, Burger Fuel has extremely strong distribution and sales network for providing all the raw materials and final products towards the destinations. Therefore, it would definitely help Burger Fuel to expand its reach to all parts of the present economy (Hill, 2012). As a result, more people will get the opportunity to purchase and consume the offered products of the organization.
On the other hand, Burger Fuel has always focused on maintaining high skill based labour force for performing all the requirements associated with the operational procedure. As a result, it will allow Burger Fuel to maintain high quality services, which will definitely distinguish from all other competitors (Laroche & Park, 2013). Moreover, Burger Fuel has focused on providing different offers on products and services in order to grab the attention of the customers. For instance, it regularly rotates promotion sides and special promotion burgers for developing a separate position in the market.
As stated by Leonidou et al., (2013) businesses need to differentiate all the offered products from the competitors for keeping the revenue level at the optimum order. For instance, Burger Fuel has maintained secret recipe format in order to provide unique taste to all the offered products. Therefore, the organization maintain strict confidential contract with the cook and other associates for maintaining the uniqueness of the products. As a result, Burger Fuel has able to maintain differentiation with the products offered by McDonalds and other organization. On the other hand, Burger Fuel has also focused on extending their product line as much as possible for capturing customers from different geographical and cultural background. However, different prime competitors do possess greater product line. Still, Burger Fuel has able to position itself uniquely in the targeted market (Baran & Galka, 2013).
Thirdly, Burger Fuel is primarily focusing on capturing major portion of the New Zealand market. Therefore, it has able to open store in almost all the prime locations in New Zealand. As a result, it has able to create more convenience for the customers in purchasing the offered products and services. Moreover, Burger Fuel has gained in-depth knowledge about the taste and preferences of the customers, which has allowed making certain necessary changes in the operational procedure for accomplishing all the business objectives in an effective way (Schmidt, Spann & Zeithammer, 2014). On the other hand, prime fast food restaurants like McDonalds and McCafe have focused on establishing its presence all over the global market. Therefore, these organizations might not have provided as much importance of the New Zealand market compared to Burger Fuel. For that reason, it can be state that the mentioned factors are extremely critical for the business enhancement perspectives.
The present market trend for the fast food restaurant market has highlighted the fact that competition level will increase even further in future as well. As a result, Burger Fuel will have to utilize all the mentioned core competency factors appropriately for sustaining its position in the market (Seo & Jang, 2013). For instance, Burger Fuel will have to focus on adding more products in the catalogue for the customers for fulfilling the needs of all type of customers. Moreover, adding products to the offered product line will allow Burger Fuel to include people to purchase products from their outlets. As a result, customers will not focus too much on alternative options at the time of purchasing different fast food options.
Secondly, Burger Fuel will also have to focus on enhancing the provided quality of the services. Recent survey has highlighted the fact that service excellence is an extremely critical factor that determines overall revenue of the organizations. For that reason, all the prime fast food restaurants have focused on providing high quality services in order to enhance the loyalty level of the customers (Ramaseshan, Ishak & Rabbanee, 2013). Moreover, Burger Fuel will have to focus on enhancing its reach in the global market, which will require proper understanding of the market needs and wants. Hence, it will have to utilize their highly skilled professionals for understanding the needs and wants of the market.
According to Kumar and Rajan (2012), development of effective marketing strategy is critical for the success of the organization. For that reason, Burger Fuel will also have to utilize all its positive and strong factors for the development of effective strategies. For instance, Burger Fuel will have to focus on developing strong relation with all the suppliers and distributors for expanding its reach in different parts of the economy. For instance, Burger Fuel has recently opened a new outlet in United States. Similarly, it will also have to focus on utilizing its present network to gather information about the needs and wants of the other market as well; it will help the organization to expand their reach in different parts of the globe (Park & Vargo, 2012).
For that reason, Burger Fuel will have to focus on providing different promotional offers or schemes to all potential customers. It will also have to utilize different marketing platforms like television, radio, website and social media for providing the required level of information to all potential customers. Moreover, Burger Fuel will also have to use its unique taste of the foods for positioning itself in the new market effectively. It will help to create separate market for accomplishing all the business aims and objectives in an effective manner. According to Solomon (2014) development of strong relationship with all potential customers is essential for getting desired level of revenue. For that reason, Burger Fuel will also have to focus on developing strategies regarding the best possible way to collect feedback from the customers. Hence, it will have to utilize different communication platforms like Facebook and Twitter to identify the area for possible improvements. In addition, collection of feedback will help Burger Fuel to enhance the satisfaction level of the customers in a major way.
Conclusion:
The above discussion has highlighted the fact that proper understanding of market is essential for developing effective strategies. It helps businesses to understand the kind of future challenges it will have to face in near future. Here, Burger Fuel has primarily focused on enhancing its reach in the New Zealand market. It has established its reach in different parts of the country for fulfilling all the needs and wants of the customers.
Still, it will have to focus on initiating different alternative strategies for handling future challenges in an effective way. Now, the study highlighted that development of effective strategies require proper understanding of the core competency factors. For instance, utilization of different marketing media platforms would allow Burger Fuel to communicate with the potential customers on regular basis. It will help to develop bonding between the people and organization in a major way. As a result, it would help Burger Fuel to keep the potential customers for longer timeframe. Therefore, it will eventually help to achieve sustainable growth in the market.
References:
Baran, R. J., & Galka, R. J. (2013). CRM: the foundation of contemporary marketing strategy. Routledge.
Barney, J. B. (2014). Gaining and sustaining competitive advantage. Pearson Higher Ed.
burgerfuel.com (2017). BurgerFuel. Retrieved 30 June 2017, from https://www.burgerfuel.com
Eden, C., & Ackermann, F. (2013). Making strategy: The journey of strategic management. Sage.
Evans, N., Stonehouse, G., & Campbell, D. (2012). Strategic management for travel and tourism. Taylor & Francis.
Hair, J. F., Sarstedt, M., Pieper, T. M., & Ringle, C. M. (2012). The use of partial least squares structural equation modeling in strategic management research: a review of past practices and recommendations for future applications. Long range planning, 45(5), 320-340.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Hill, M. E. (2012). Marketing strategy: the thinking involved. Sage.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.
Kang, J., Tang, L., & Fiore, A. M. (2014). Enhancing consumer–brand relationships on restaurant Facebook fan pages: Maximizing consumer benefits and increasing active participation. International Journal of Hospitality Management, 36, 145-155.
Keupp, M. M., Palmié, M., & Gassmann, O. (2012). The strategic management of innovation: A systematic review and paths for future research. International Journal of Management Reviews, 14(4), 367-390.
Kumar, V., & Rajan, B. (2012). Social coupons as a marketing strategy: a multifaceted perspective. Journal of the Academy of Marketing Science, 40(1), 120-136.
Laroche, M., & Park, S. Y. (2013). Recent advances in globalization, culture and marketing strategy: Introduction to the special issue.
Lasserre, P. (2012). Global strategic management. Palgrave Macmillan.
Leonidou, L. C., Leonidou, C. N., Fotiadis, T. A., & Zeriti, A. (2013). Resources and capabilities as drivers of hotel environmental marketing strategy: Implications for competitive advantage and performance. Tourism Management, 35, 94-110.
Park, S. Y., & Vargo, S. L. (2012). The service-dominant logic approach to tourism marketing strategy. Strategic marketing in tourism services, 231, 231-246.
Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a digital strategy. John Wiley & Sons.
Ramaseshan, B., Ishak, A., & Rabbanee, F. K. (2013). The role of marketing managers’ commitment and involvement in marketing strategy implementation. Journal of Strategic Marketing, 21(6), 465-483.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Schmidt, K. M., Spann, M., & Zeithammer, R. (2014). Pay what you want as a marketing strategy in monopolistic and competitive markets. Management Science, 61(6), 1217-1236.
Seo, S., & Jang, S. S. (2013). The roles of brand equity and branding strategy: a study of restaurant food crises. International Journal of Hospitality Management, 34, 192-201.
Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.
Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.
Swayne, L. E., Duncan, W. J., & Ginter, P. M. (2012). Strategic management of health care organizations. John Wiley & Sons.
Wheelen, T. L., & Hunger, J. D. (2017). Strategic management and business policy. pearson.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download