1. Analysis of the organization
The analysis which will be made in the report will be based on the ways by which an organization named 1901 Hot Dog is planning to improve its operations. The international expansion based activities of the organization is an important part of the analysis. The strategy which is used by the organization in order to enter the new market area will be analysed in the report. The areas which have been chosen for increasing the international presence of 1901 Hot Dog are different countries in the Middle East. The analysis will thereby be based on the external environment of the countries (June & Abdul-Talib, 2011).
The organization was quite successful in its operations in the home country with the help of its effective range of products that are presented to the customers in Malaysia. The company has been operating in the country in a profitable manner with the help of effective amounts of revenues. However, the owner of the company was highly concerned about the levels of competition which had started rising in the industry. The management of the organization thereby aims at increasing the levels of cost-effectiveness in an effective manner with the help pf international expansion. The company has followed the franchising based entry mode in order to establish its business operations in Malaysia (Abdulla, Naser & Saeid, 2014).
The franchise based stores of the company which have been developed all over the country have thereby proved a major part of the success of the organization in the food sector. However, the rise in competition has proved to be a major concern for the effective operations of the company. The increase of international presence is thereby significant for the ways by which the company is able to maintain its operations in the country. Franchising has proved to be an effective strategy for the operations of the company in the food sector of Malaysia. The company has however faced some major challenges in maintaining its position in the industry with the help of its franchise based stores (Adegbite et al., 2018).
The product which has been considered for the analysis and expansion of 1901 Hot Dog and the future operations of the company. The organization further aims at developing an effective position in the industry with the help of international expansion based activities. The decision that was made by the management of the organization related to the franchising based model had proved to be effective for the product (Albrecht et al., 2015). The analysis of the strategic position of the company in the food sector can be done in an active way with the help of SWOT framework,
Strengths – The franchise based model has been a major strength of the firm which has been able to play a key part in the growth in its home country. The set up based costs of the business operations were also quite low and business model was also manageable in an easy manner. The levels of simplicity which has been depicted in the operations of the company are strengths that have been able to increase the profitability of 1901 Hot Dog (Azhar, 2014). The process which is used by the company in order to manufacture the products is smoke free in nature. This acts as an advantage in the effective operations of the company in Malaysia. The company has also implemented huge amount of resources in the research and development based activities has also proved to be an effective resource of 1901 Hot Dog (June & Abdul-Talib, 2011).
2. Analysis of the product
Weaknesses – The lack of the development of effective identity in the food industry by the company is a major weakness. The organization has increased its operations in different areas of the country with the help of its franchises. This has led to the ways by which the company is able to retain its position in the industry without awareness of the products. 1901 Hot Dog has thereby not been able to progress an identity in the food based industry (Biygautane, Hodge & Gerber, 2018).
Opportunities – The development and research based investment made by the company is a major opportunity based on growth of the company. The fast development of franchises in the country has been able to lead to effective growth in the food sector. The organization can further increase its revenues in the industry with the help of international expansion in different countries (Davcik & Sharma, 2016). The revenues of the company and its awareness among the consumers can be increased in an effective way with the help of its products. The creativity based levels of the company are important for the ways by which 1901 Hot Dog can increase its growth. The success which has been gained by the company in the country is able to play a key part in the ways by which 1901 Hot Dog can further increase its revenues and profitability in the food sector (June & Abdul-Talib, 2011).
Threats – The organization has started facing major threats due to increase in levels of competition in the food industry. This has been able to increase the levels of prices of the raw materials that are required for development of services and products. The uncertainties which have been seen in the economy of the country is an important threat to the company (Denrell & Powell, 2016). The company has tried to face the threats with the help of effective levels of advertising and promotions. 1901 Hot Dog has started facing major threats from the different international organizations which operate in the country. The lack of awareness of the organization in the international areas is able to pose a major threat to its operations and profitability in the industry (June & Abdul-Talib, 2011).
The expansion the company in other countries like Indonesia, Singapore, China, India has been able to play a key part in the methods by which the 1901 Hot Dog is able to increase its awareness. The company has also made plans to expand its operations in an effective manner in different countries of the Middle East (Gerges et al., 2016).
The levels of competition which have been faced by 1901 Hot Dog in the food industry are high as international organizations have started making entry in the countries. The international expansion based activities which have been planned by the company in the food sector of Indonesia and Singapore have been affected in a huge manner by international organizations (June & Abdul-Talib, 2011). The economic conditions in different countries have also been able to play a key role in the effectiveness of the operations of 1901 Hot Dog. The growth of competition which is thereby faced by the company is based on the different organizations which are able to provide products and services to the customers (Jakob, 2015).
3. Analysis of the competitors in the market
The organization has thereby started making more investments in promotions and advertising in order to retain the customers. The major levels of competition are thereby provided to 1901 Hot Dog by an organization named A&W, who had their operations in Malaysia before 1901 Hot Dog. The major market based force which is able to affect the company is based on the ways by which the huge organizations provide tough competition (Jones, Harrison & Felps, 2018). The other major organizations which provide tough competition to 1901 Hot Dog mainly include, KFC, Dunkin’ Donuts, Pizza Hut, McDonalds, Auntie Anne. These organizations are thereby able to affect the ways by which 1901 Hot Dog is able to provide tough competition to the current levels of operations. This has been able to cause changes in the ways by which the company is able to operate in the food based sector (Kaleka & Morgan, 2017).
1901 Hot Dog has planned to increase its operations in different areas of the world which include, emerging areas like, China, India, Singapore and Indonesia. The company has however made major plans in order to expand its operations immediately to the different areas of the Middle East. The external environment based factors of the Middle based countries will thereby be able to play an important role in the ways by which 1901 Hot Dog can set up its operations (June & Abdul-Talib, 2011).
Political environment – The political environment of the Middle East is able to play a key part in the methods by which 1901 Hot Dog can set up the operations effectively. The different political factors that are present in the country can facilitate the expansion based operations of the company. The stable political conditions are thereby able to affect the ways by which 1901 Hot Dog can increase its revenues in the industry (Kotabe & Kothari, 2016). The cutting edge and the customary structures of the country are able to affect the setting up of operations of the organization. The political soundness will thereby help in the expansion in different countries. The entire value of business based operations in the Middle East and annual growth rates of the food sector are able to affect the operations of the company (June & Abdul-Talib, 2011).
Regulatory environment – The regulations that are a part of the food based sector of the Middle East can act as a huge magnet for the franchising based model of the company. The potential of the growth of food industry is thereby an significant part of the external factors that are able to affect the revenues and profitability of the company (Mahdi & Almsafir, 2014).
Economic environment – The economic environment of the Middle East is highly stable and favourable in nature. The growth operations of the company can provide effective levels of opportunities that are provided to 1901 Hot Dog. The franchise based model of the company is thereby important for the effective levels of growth of the company in its future Middle East based operations (Meyer, Neck & Meeks, 2017).
4. Analysis of key environmental factors
Cultural and social environment – The demands based on different products that are presented by the company are based on the ways by which 1901 Hot Dog can maintain its growth and operations. The quality of products that are offered by the company can further have an important effect on the ways by which 1901 Hot Dog is able to increase the awareness of the products. The number of consumers who are thereby present in the upper market based areas of the Middle East can increase the demands of different products (Michael, Storey & Thomas, 2017).
Demographic environment – The income and age based levels of the consumers can also be considered by the company in order to offer the products and services in an effective way. The company can thereby offer the products based on the different age groups and the products which are effective for these age groups (Morschett, Schramm-Klein & Zentes, 2015).
Technological environment – The technology based environment which has been developed in the Middle East based countries is an important part of the effective levels of operations of 1901 Hot Dog. The high speed internet based facilities have thereby been able to play an important role for different organizations. The global organizations have thereby been able to develop their position in the country in an effective manner. These facilities have affected the setting up of the operations (Saeidi et al., 2015).
Natural environment – The climatic issues which are thereby faced by the countries in the Middle East have affected various organizations that have their operations in these areas. The production related operations that are thereby conducted by the 1901 can be affected in a huge manner by the natural factors and environment. The company has been operating in an environment-friendly manner in its home country. This can be a key opportunity for the operations of the firm in the Middle East (Sikora et al., 2016).
Physical environment – 1901 Hot Dog will thereby be provided with effective levels of opportunities in order to operate in the industry in the Middle East. The infrastructure that has thereby been developed by the country based on effective economy and the high speed internet based facilities (June & Abdul-Talib, 2011). 1901 Hot Dog can thereby take effective levels of advantage in the ways by which the firm is able to offer the services to its consumers in an effective way. The speed of services can also be increased with the help of the infrastructure that is thereby provided by the Middle Eastern countries (Wagner III & Hollenbeck, 2014).
The major challenge which is faced by 1901 Hot Dog is based on the competition that has been developed in the food sector. The company thereby needs to expand its operations in an effective manner with the help of international growth (June & Abdul-Talib, 2011). The international growth of the company is based on increasing its awareness in the food based industry. The company is thereby facing a huge challenge in staying relevant in the food sector. The relevance is thereby based on the process of re-branding the organization and further providing the products in an effective way (Michael, Storey & Thomas, 2017).
5. Conclusion
The rise which has been experienced in the protests against fast food is also highly effective challenge that has been faced by the company. The demands for fast food have started decreasing in the industry which has affected the revenues and the profitability of the company. The organization thereby needs to take effective steps in the process of staying relevant in the food industry (June & Abdul-Talib, 2011). The image which has been developed by the company based on unhealthy fast food producing activities is able to affect the revenues of 1901 Hot Dog. The expansion of operations is thereby important for the effective maintenance of revenues in the industry (Biygautane, Hodge & Gerber, 2018).
Conclusion
The report can thereby be settled by stating that the expansion based opportunities of 1901 Hot Dog can play a major part in the methods by which the firm can increase its awareness in the industry. The company is thereby able to increase its revenues in the industry with the help of its strengths and opportunities. The area which has been chosen for the analysis is the Middle East, which can further increase the operations of the company in different areas of the world.
Recommendations – The company can thereby be recommended to start its operations in the food industry with the help of its expansion in the Middle East. The environment in the country is thereby able to affect the levels of revenues of 1901 Hot Dog. The levels of profitability of the company is thereby increased in an effective way with the help of proper products which are offered to the consumers. The major challenge which is thereby faced by the company in the food industry based on increasing levels of competition is an important factor. The protests that have started based on unhealthy products in the fast food industry is thereby a major challenge that needs to mitigated by the company with the help of effective expansion in different countries.
References
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