Business level strategies
Hungry Jack’s Pty Ltd. is a franchise of burger king Corporation. The company was incorporated in 1971 as a wholly owned subsidiary of competitive foods Australia, privately held firm owned by Jack Cowin (HungryJacks, 2018). The company is having more than 420 restaurants that serve various customers in the country; the firm employs approx 19,000 people in Australia. The organization has been making fresh and good quality of burger for providing satisfaction to the customers around the globe. The main mission of the corporation is to render excellent quality of fast food products to the key target audience globally. Hungry Jack’s is the second biggest franchise of burger king across the world. It is reported that organization offers various fast food products and services including biscuits, sandwiches, french-fries, hamburgers and chicken sandwiches to the customers in the market. Hungry Jack’s manages and operates restaurants throughout Australia (Bloomberg, 2018). The company serves its products in more than 390 locations across Australia. The market size of the firm is larger and wider to gain competitive benefits globally. In today’s era, the company is maximizing profitability and outcomes for improving its scope for making a dynamic and unique brand image in the market. The vision of Hungry Jack’s is to be a leader in fast food industry by rendering fast food products internationally.
It is noted that business level strategies are being used by Hungry Jack’s to compete with rivals in the international market. The business level strategies that help in maximizing profit have been discussed below.
Cost leadership strategy: Hungry Jack’s uses this strategy to beat the rivals in the global market. Market price is a vital and significant factor in selling the products and services. It is elucidated that Hungry Jack’s offers products at reasonable prices to attract maximum target audience in the market. The pricing of Hungry Jack’s products lines is done in an effective and cost effective manner (Mishra, Sharma, Kumar & Dubey, 2016). Hungry Jack’s struggles with major and unique fast food leaders including Wendy’s and McDonald’s. The firm uses market based pricing approach to stand out over the rivals internationally. It is stated that the firm also uses bundle pricing strategy to earn greater revenue and profitability (Rothaermel, 2015). The company uses cost leadership strategy to attain operational efficiency and effectiveness by purchasing the best quality of raw material and ingredients from the most effective and reliable suppliers and using them in manufacturing excellent quality of fast food and desserts in the global market (Leonard, 2018).
Suitability of the business level strategies
Differentiation strategy: It has been analyzed that differentiation is one of the significant and fundamental strategies that used by the company while initiating the business globally. The firm uses differentiation strategy to distinguish its products from their rivals’ fast food products (Wright & Clarke, 2009). The motive behind using this strategy is to build and develop a unique and effective brand reputation in the minds of potential and effective customers. To differentiate the products, Hungry Jack’s is trying to keep an eye on the performance, product, policies and strategies of the competitors (Scully et al, 2012).
Focus strategy: It is noted that focus strategy is unique and similar to cost leadership; the firm is trying to strive with rivals by using this strategy. Hungry Jack’s focuses on its marketing efforts in an effective manner to maximize revenue and returns (Verhoef, Lemon, Parasuraman, Roggeveen, Tsiros & Schlesinger, 2009). Focus strategy is significant and vital to focus on the low cost leadership and differentiation in an effective way. For example, Hungry Jack’s uses focused low cost strategy to monitor and control the marketing cost and heavy manufacturing of its top selling brands. This strategy further emphasizes on the marketing improvements and variations in the quality, aspects, flavors and ingredients for a particular product line instead of differentiating all the fast food products and beverages in the recently rendered brands (Leonard, 2018).
The business level strategies help the company to overcome the competitors in the market. Business level strategies may work toward the satisfying the consumers by generating strategies that have ample of values to the company and the consumers as well. A successful and effective business level strategy helps the company by providing ample of information, experience and knowledge about the competitors, products and customers across the globe (Roberts, Pettigrew, Chapman, Quester & Miller, 2013).
The business level strategies are suitable and fit for Hungry Jack’s to reach at top level in the marketplace. The company attains desired objectives and targets by using this strategy in a hassle free manner. Evaluation of the business level strategies helps Hungry jacks to stay in the competitive market. The business level strategies further help the company to reach their goals and objectives effectively. By using business level strategies, the company could able to identify and analyze the needs, preferences and choices of the customers to attain maximum returns globally. It is seen that business level strategies are considered detail actions and steps taken to render value to the customers and attain a competitive benefit by exploiting the core values and competencies in an effective manner. This strategy is a concerned with a company’s position and image in an industry, relative to rivals and to the five force of the competition. It is a strategy to be dynamic and effective; it cannot be internally inconsistent as it also helps in attain various benefits internationally. By implementing this strategy, the company could able to reduce and eliminate the conflicts and challenges in the workplace (Rumelt, 2012).
Evaluation of business level strategy by using McKinsey 7 S model
Business level strategies further help in setting the unique and effective prices of fast food products. These are the strategies which have to match its external environment in the market. The organizations present in the global market that includes competitors, customers, and regulatory bodies (Demil & Lecocq, 2010). Business level strategies further helps in delivering benefits and values to the customers globally. Along with this, the evaluation analyzes and identifies to what extent the business level strategy addresses various factors in a hassle free manner. It is reported that business level strategies are fit for the internal and external environment to beat the rivals. The company has a scope to improve and enhance the quality of products by initiating the business level strategy at the workplace. Therefore, marketing risks and challenges can be reduced with the help of this strategy. Hungry Jack’s is a franchise thus, business level strategy helps to increase and enhance the sale of fast food products widely (Santos-Vijande, López-Sánchez & Trespalacios, 2012). Predicting the needs, and wants of the customers and answering these wants and needs can give a business a benefit over the rivals. The company can work towards satisfying the customers by generating strategies that have value to the company and customers as well. An effective business level strategy further is needed to provide information and knowledge about the key target audience and customers as well (Nandakumar, Ghobadian & O’Regan, 2010). This knowledge and information can lead to higher profitability and revenue for the company. The business level strategies also provide sustainable cost advantages to the customers across the globe. Apart from this, business level strategies further are essential to cope up with McDonalds and Burger king globally. This strategy is also helpful to global player in fast food industry in Australia (Markgraf, 2018).
It is evaluated that McKinsey model help in evaluating the business level strategies globally. Hungry Jack’s evaluates the business level strategy by using Mckinsey model 7 S model. This model is divided into 7 factors including soft and hard factors (Jurevicius, 2013). The McKinsey 7 S model has been discussed below.
(Source: Jurevicius, 2013).
Strategy: It is noted that strategy is a plan built and used by a company to attain sustained competitive benefits and effective compete in the international market. It is one of the significant strategies that articulated to achieve rivals advantages globally. Thus, this model can be used to evaluate and analyze the competitive benefits, strong mission and vision internationally. It has been found that business level strategy is hard to measure and identify the challenges and concerns. Along with this, McKinsey model helps in setting the mission, vision and values. The strategy is aligned and associated with other factors when analyzed alone. Therefore, McKinsey 7 S model finds the great strategy, system, and structure to hit the rivals in the competitive market. It is seen that McKinsey model is effective and dynamic to provide better results and outputs by analyzing the business level strategy.
Structure: It is noted that structure shows the way and manner business units and divisions are formulated and includes the information and facts who is responsible to whom. In other words, structure is an organizational chart of the company. It is one of fundamental and easy to change factors of this framework. The structure is needed to identify and measure the business level strategy internationally. If a company maintains unique and effective framework or structure then it will help to provide ample of benefits to the customers and employees as well. The success and growth of Hungry Jack’s is dependent on its structure (Singh, 2013).
Systems: The systems are the procedures and processes of the firm, which explains the business daily actions, activities and how decisions are made. Systems are the area of Hungry Jack’s that evaluates and determines how the company uses business level strategy and it must be the major focus for the leaders and managers during managerial change.
Skills: The skills are the capabilities that the company’s employee performs very well and effective. They further include competencies and capabilities to use innovative business level strategies effectively. Capabilities and skills are needed to implement the business level strategies in the organization. If the company possesses innovative and skilled team at the workplace then it can easily initiate the business level strategies to overcome the rivals globally. Cost leadership is effective strategy that can be evaluated by using innovative and unique skills and talents internationally (Singh, 2013).
Staff: This factor is concerned with what type and how many workers Hungry Jack’s would need and how they would be trained, recruited, rewarded and motivated to implement business level strategies at the workplace. The trained and skilled employees can easily distinguish company‘s fast food products from the rivals in the international market. Without innovative and potential employees, the company cannot exercise business level strategies within the organization (Letaifa, 2015).
Style: It is stated that style shows the manner the firm is managed and controlled by top level management, how they interact, and what steps do they take and their symbolic and unique values. It is an effective management leadership style that help in using business level strategies in Hungry Jack’s effectively. The company follows chaotic management style to implement business level strategies such as cost leadership, focus and differentiation strategy.
Shared values: It is noted that shared values are the core part of Hungry Jack’s. They are the standards, norms and values that assist worker behavior and actions, therefore are the foundation or framework of every company. By using innovative values, standards and core values Hungry Jack’s can evaluate and identify the benefits and significance of business level strategies.
McKinsey 7S model is used by the company to evaluate and measure the effectiveness and efficiency of business level strategies (Jurevicius, 2013).
It is noted that various issues are being entertained by Hungry Jack’s while functioning in the global market. Due to lack of potential and capable leaders, the company is unable to provide training and development coaching to the workers. Apart from this, it does not provide satisfactory wages and pay to the employees for performing roles and responsibilities effectively. As a result, it may affect the working capacity and efficiency of the workers in a large extent. Due to poor labor force, the firm could fail to keep an eye on the productivity, policies, products and approaches of the competitors. Thus, it affects the long term sustainability and objectives of Hungry Jack’s in the market. Due to lack of training, the employees do not follow code of conducts and other norms in the organization.
It is recommended that the company should focus on the human resource management to carry out the business activities and functions successfully and effectively. Ethics is a significant part of better function of the company. Thus, Hungry Jack’s should focus on the code of conducts and ethics in the workplace. Hungry Jack’s further must focus on the leadership styles to guide and assist the workers effectively and smoothly. They provide guidance to implement the business level strategies in Hungry Jack’s successfully. Advertisement and promotion strategy must be used by the firm to promote its products in the international market.
It is stated that if current strategy like business level strategy is not working then the company can use corporate level business strategy and global strategy in the international market. The corporate level strategy helps Hungry Jack’s to maximize outputs and maintain its financial success and growth in near future. Along with this, the company can use global strategy, international strategy, multidomestic strategy and transnational strategy to explore and flourish the business activities in the foreign market.
Conclusion
On the above mentioned analysis it is evaluated that Hungry Jack’s is one of the biggest brands in Australia that provides fast food products such as burger, french-fries and biscuits to the customers around the globe. The major intention of the report is to discuss and analyze the business level strategy in the context of Hungry Jack’s. The mission of the firm is to ensure that customers visiting at their place are rendered with quality cleanliness and food. This strategy is suitable for the company to cope up with rivals in the competitive market. Apart from this, McKinsey 7 model helps in implementing or using business level strategy in Hungry Jack’s to face and handle the challenges and risks.
References
Bloomberg.,(2018). Hungry Jack’s Pty Ltd[Online], Retrieved from https://www.bloomberg.com/profiles/companies/0366109D:AU-hungry-jack’s-pty-ltd
Demil, B., & Lecocq, X. (2010). Business model evolution: in search of dynamic consistency. Long range planning, 43(2-3), 227-246.
HungryJacks.,(2018). About Hungry Jack’s [Online], Retrieved from https://www.hungryjacks.com.au/about-hj-s
Jurevicius.O.,(2013). McKinsey 7S model[Online], Retrieved from https://www.strategicmanagementinsight.com/tools/mckinsey-7s-model-framework.html
Leonard.K.,(2018). Five types of business level strategies [Online], Retrieved from https://smallbusiness.chron.com/five-types-business-level-strategies-781.html
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