Table of Contents
Impact of internal and external environment on Burger Fuel Worldwide. 3
Business Strategies for a Competitive Position. 11
Gaining Sustainable Competitive Advantage in the Expansion Plan to USA.. 17
Figure 1: Sales competition Shares. 22
Table 1: Burger Outlets Share and Spending. 22
Appendix 1: Need for Healthy Foods. 26
Appendix 2: Fast Food Industry Statistics. 26
Strategic Management
Executive summary
Burger Fuel is one of the first leading international burger restaurants that were founded in the year 1995 by Manson Chris. Currently the foundation is working in six different countries and the idea behind the establishment of the initial restaurant was to provide consumers with fresher burger gourmet that are made of natural and fresh ingredients. The idea was well accepted by consumers which led to the establishment of a second burger store within the first two years of operation. The corporation added the name worldwide to its title in the year 2007 thus developing the title Burger Fuel Worldwide. Burger Fuel worldwide is a title that depicts the corporation’s ambition in filling its presence in the global environment. Despite the issues and the high competition that is in the food industry Burger Fuel worldwide has maintained a stronger position which will provide a better group in designing competitive marketing approaches. Burger Fuel holds a good product development strategy that meets the needs of the modern consumers but it flaw lies on its incapability to develop a strong product perception in all its locations (NZME, 2017). For the corporation, the idea of expanding in the American market is useful as it will expose the possibility of attracting millennial consumers who desires to consumer quality, tasty and healthy burgers. The objective of the corporation is to offer premium, fresh and natural foods but this objective requires being equipped with a strategic plan. This report is objected at providing overall strategies utilized by Burger Fuel and recommendations of the best positioning strategies in the global market which is characterized by high competition.
Situational AnalysisBurger Fuel worldwide operates as a franchising company with the operation of fast foods burger restaurant with the product name as Burger Fuel. The corporation’s main is particularly focused on several position areas such as vegetarian foods, Halal, organic product food, and free range and gluten free products. The corporation has since its origin attempted to sustain its vision of providing healthier food menu as compared to their competitors (NZME, 2017). Burger Fuel is particularly known for its unique menu and branded drinks which some are made by the corporation. This therefore shows the focus of the corporation in offering diversified yet healthier and unique foods which ranges from burger, soda, milk shakes and so much more. The revenue of the corporation is achieved from three different sources which are income property which is attained from franchises leasing , retail sales and franchise revenue (NZME, 2017). The corporation has established 56 locations in its 20 years operation and it has the goal of establishing at least one thousand fresh outlet within the next eight years. Given the time period it has been in operation and the sites it has managed to establish its target seems to be beyond its current power and therefore strategic approaches must be adopted sooner.
The highest strength held by the corporation is geographic and healthier and diversified menu in its location in six countries which are primarily leading in economic development. The corporation is constantly focused on market expansion, penetration, and market share increase as well as product development. The corporation holds a strong offering of its unique products which has increased its ability to retain consumers (NZME, 2017). Its culture has additionally been useful in increasing employee’s morale and satisfaction thus increasing the rate of retention. Despite the opportunities held by the corporation is faced with stiff competition from corporations such as McDonald, burger king, and subway (Schlosser, 2012). The competitors are well established in the global market based on their strategic approaches which necessitate the corporation to be more equipped in gaining a more appealing position in the market.
In the modern society today the fast food industry is gaining popularity rapidly due to the continuous life style changes. However, even with the rising acceptance of the market individuals are highly concerned of what they consume based on the fact that despite the convenience the fast meals are characterized normally by negativity (Amos, 2008). High consumption of unhealthy meals in the modern society is characterized by the rise of diseases such as heart illness, obesity, diabetes and so much more. Despite the fact that the demand and the consumption of fast foods are on the rise for some individuals and particularly the millennial generation which incorporates young adults, children and teenagers they are forced to consider what they take. Convince, affordability, quality, and healthiness are the major factors that determine fast foods consumption (Schlosser, 2012). Burger Fuel is however strategically designed as its products are based on the mentions features. As the corporation aims at penetrating overseas and also expanding its presence in the united states the internal and external aspects that affects the corporation must be analyzed.
Impact of internal and external environment on Burger Fuel WorldwideCommercial industries are normally open to challenges which may either be external or internal and at times they can be controlled and not avoided (Schlosser, 2012). This section will utilize SWOT as well as Pestle analysis in the proposition of a better market plan. The external environment that affects Burger Fuel includes economic, social cultural, technology, legal issues, and environmental issues.
Political Environment
Due to the increased development of the fast food market the industry is highly targeted by governmental programs that are aimed at developing the general health of the community as well obesity reducing which occurs mainly in the western nations. In the early 21st century the European scientific committee released a report on the link amid preservatives and the rise of diseases such as heart illness (Schlosser, 2012). This meant that most of the fast food products had to reduce the amount of salt for the wellness of the community. Burger Fuel, in particular, decreased the level of salt since most of its menu has no preservatives. Most of the European nations are indicated to be strict on a number of preservatives that are placed on foods (Schlosser, 2012).
However, the United States market for the fast food can best be described as self-regulated since the government is lowly involved despite the rising report on the association amid modern fast food with obesity, diabetes as well as heart issues (NZME, 2017). This is driven by two main aspects in that to begin with the political system in America is less committed as compared to the European nations to the economics of laissez-faire. This therefore shows that for success to be achieved in the market more there is more politically based inactivity to handle. To add, the united states fast food sector is characterized by aggression and there is the political ability of avoiding the developed regulations. The lobbies of the industry has thus permitted the defeat of the proposed restrictions on the policies that are aimed at handling salt, fat as well as sugar in fast meals. This has therefore, been essential to increasing and sustaining the profits for corporations such as McDonald in America as compared to those states with strict policies that have been imposed (NZME, 2017). Burger Fuel should therefore focus on the preferences of the consumers’ rather than navigating the policies like the competitions which will earn it a competitive position.
Economic Environment
American provides the biggest market economy globally and thus the corporation is particularly right on expanding its presence in the market. In regard to technological and development authority America stands at the first position. The country has a high population that offers an attractive market share for corporations and particularly those in the fast food industry. Given that it has a busy economy most individuals prefers to consumer fast foods throughout the day in order to save time. In addition the income distribution is higher as compared to other states. However, the population requires to be offered with unique and healthier diets contrary to what competitors in the region do (Hitt, Ireland & Hoskisson, 2007). From this it s clear that the market is characterized by intense competition by corporations such as subway, McDonald and burger king which holds the largest market shares globally. Based on the stable economic wealth in America and the many competitors that operates globally this can pose a challenge for the Burger Fuel to engage penetrate and expand its market. However, if the corporation will attain the capability of breaking into the American market it is clear that there will be increased demand for the products since majority of the people will mainly be focusing on a search for quality, healthier and affordable products (NZME, 2017).
Socio-Cultural Environment
Similarly to Australia, the united state is a country with diversified cultures. Burger Fuel has however done well in the Middle Eastern states such as Dubai and Saudi Arabia which are characterized by high cultural conservation. When selecting a market it is essential for the corporation to make an account of religion and cultural beliefs which may act for or even against the business (Schlosser, 2012). The corporation can fully beat the hindrances of culture and religion as it is based on foods without preservatives that are mostly natural and healthily which respects the standards of almost every culture today. In succeeding in the international market the corporation is necessitated to recognize is that they should customize their products based on the preferences, taste and the market culture in every state. Offering the same products in all the markets is not suitable for all the cultures and therefore modification in form of differentiation should be made (Schlosser, 2012).
Technological Environment
Among the states that the burger Fuel is located in US is the most advanced state technologically. In the present society technological development and adoption is very essential in determining how the business performs. In order to increase efficiency and convenience the corporation can adopt an online selling system to gather most of the unexploited spots. in addition the restaurants should provide services such as free bowing which will increase is popularity. For instance, the strategy is utilized my McDonald corporation in its American as well as Australian market (Schlosser, 2012). Offering such services together with a differentiated menu for different times is an effective way of attracting consumers, particularly working, university students and teenagers who are involved in extensive utilization of the internet during their day period especially when they are free (Schlosser, 2012).
Environment
Environment problems can be described as those matters that are highly notable in the society today because of the growing awareness on issues such as emissions of the green houses, pollution and global warming (Schlosser, 2012). This, therefore, requires the corporation to package their products in a friendly manner which will account on their social responsibility. The United States holds a strict legislative and policies regarding the conservation of the environment. Considering its high economic engagement and population it contributes to approximately 21 percent of the worldwide emission and thus the corporation should focus on addressing the need of the residents to be environmentally responsible. Social and especially environment responsibility is bound to earn the corporation a good reputation thus attracting loyal consumers (Schlosser, 2012). This will result in the growth of its general market share in the local as well as global market.
Legal Environment
The particular legal surrounding where Burger Fuel corporation operates depends highly on the country and the specific market being addressed based on that it is located in six different countries. However, all the markets that the corporation operates in holds a certain degree of safety as well as health regulations which are mainly based on the general preparation. Hygiene training in all the states is a necessity for the staff engaged in handling meals whose expenses are charged from the corporation. The corporation is highly committed to healthiness and quality and it ensures that all its products and particular those from animal products are checked (Sharma, 2009).
In different market there are distinct employment policies which involves working standards, working period, taxes and benefits. Burger Fuel from its record has been established to having adhered to all the legal standards in the different markets that it is involved in even those markets that holds less concentrated laws in regard to the preparation and the components engaged in developing the foods (NZME, 2017).
Burger Fuel is faced with numerous challenges that are located in the external surrounding which includes the general food concern that is held socially, failure of marketing strategies, restrictions from entering and progressing in some markets such as the Iran market, negative publicity and a negative perception in regard to the corporation’s environmental responsibility (NZME, 2017). However, the corporation has maintained its objectivity through ensuring that consumers are given products that are safe and natural. The corporation has additionally been fully committed to affordability, quality as well as healthiness which can be utilized in the creation of better and reliable opportunities for the corporation generally. The fast food industry is engaged in the sale of ready drinks and food for immediate use which may either take place at the corporation’s location or on other locations based on the preferences of the consumers (Sharma, 2009).
SWOT AnalysisBurger Fuel is basically grounded on culture. Through the operation with the right culture the corporation has for years retained its staff and acquired loyal consumers. The CEO of the corporation believes that doing business cannot be termed as an easy task and therefore the ability to retain employees can only be achieved through engaging satisfaction, freedom and confidence. The internal environment impact on the corporation can best be analyzed using a SWOT analysis.
Strengths
Burger Fuel holds an authoritative reputation globally and particularly in the six nations that it is involved in. The corporation is considered to be in the first position in regard to offering healthier and natural meals both domestically and internationally. The corporation holds a strong management system that believes in the employees and places the consumer first. The strong management has helped in sustaining it and penetrating in fresh market despite the challenges that it has encountered generally. The corporation offers unique products that are highly preferred by the millennial generation or individuals with diseases concern (Sengupta, 2005). This therefore places it at a unique position since its differentiation has not been adopted by the competitors which may be essential in attracting a wider range of consumers (Sengupta, 2005).
In addition the corporation utilizes scale of economy in ensuring that it operates in low cost. This implies that the corporation is entitled to a higher profit since the cost risk is diversified across its economic market (Sharma, 2009). The corporation offers a wide range of food to choose from which are carefully designed and developed to suit the needs of the consumers. Funds sources are not an issue to the corporation since it utilizes asset leverage which permits it to operate with minimal debts and without affecting activities. The corporation’s supply chain is particularly one of the strongest which is associated with consistency thus permitting the management to focus on market as well as performance. Its abilities therefore distinguish the corporation from the competitors based on its uniqueness. The company highly prioritizes the wellness of the consumers, their safety as well as being socially responsible which has earned it a good reputation. The rate of low employees turnover has helped it in consistency and high performance throughout the years which has been influenced by its favorable culture (Sharma, 2009).
Weaknesses
However the corporation lacks a high brand perception based on the fact that its ability to create awareness in regard to its product is low. This therefore hinders its ability to penetrate in more markets and to expand in the existing ones (NZME, 2017). There is therefore a necessity to create a good brand with a positive perception. In addition, the presence of price competition results in the generation of low revenue. The corporation lacks innovations while offering its organic and natural products which would be essential in the creation of a better brand image. To top it up, the corporation’s marketing is ineffective based on the fact that it is not strategically developed (NZME, 2017).
Opportunities
Since the corporation is focused on the needs and wellness of the society it can adopt innovativeness in developing its product line. In addition social and environment responsibility can be attained through green packaging and getting involved in development programs in the society. Fresh product offering can best be achieved through improved consumer services and additional services (NZME, 2017). This may include the introduction of online ordering, and development of products that best suits the target market’s culture. Fresh products will work in securing the corporation a wider market that has not yet been exploited by the consumers. The restaurant’s structures can also be upgraded to suit luxurious and a comfortable setting to best appeal to the consumers. The corporation can reduce its expansion rate in order to reduce the concentration and increase the general profitability from all the markets (NZME, 2017).
Threats
The primary threat for Burger Fuel Corporation is stiff competition in the global setting as well as in the food industry. The industry is growing fast which is particularly being facilitated by economic freedom and markets expansion. With easy penetration into the fast food market more restaurants are being established offering products at decreased prices. This therefore increases the consumer’s choice and demand for affordability. In addition major fast food corporations have emerged such as Burge King, Taco and Starbucks thus enhancing competition in the local as well as the international market (Schlosser, 2012). The other threat is based on the fluctuation of currency in the foreign market thus threatening its ability to maximize profit. Despite the fact that the corporation generates its funds from a more diversified sources it is faced with recession which affects its ability to be innovate and expand to the different markets. Moreover, the corporation incurs heavy costs based on the fact that it invests highly on marketing campaigns which have less to offer the corporation based on their inappropriate structuring (Schlosser, 2012). The high expansion target of the corporation is bound to affect its ability to grow based on the diversified attention that it will have to handle.
Business Strategies for a Competitive PositionThe United States offers the most intensifying competition among the fast food operators like McDonald, Wendy’s, burger king, subway and Starbucks. The competition for the introduction of fresh meals has risen in the recent and every operator is struggling to offer products that are characterized by low prices (Schlosser, 2012). By the end of last year Burger king was leading in offering products of high quality and yet characterized by affordability. The chains in the united states fast food market have make the claim that they are all attempting to attract consumers who are conscious about value who are basically in search of lowly priced meals (Magretta, 2012). However the operators are less focused on quality and healthiness which provides Burger Fuel with a great opportunity to work against the intensifying completion in the American market. The other advantage is that the American market is characterized by a wide range of consumers based on its modernized lifestyle as well as high population. While the corporation are competing to lead in the value position the corporation can focus on ensuring that it maximizes its sales through offering healthy, quality and yet affordable products that best suits the modernized culture in America (Magretta, 2012). For a corporation to create a quality market and also attain products success there is a need to understand the approach of being at a competitive advantage with a given market. Being at a competitive advantage generates the opportunities for establishing fresh products and markets which offers disruption n within a competitive market thus helping in the creation of better defense against the influences of high competition (Singh, 2008).
For Burger Fuel there is a great need to get into the United States market via the utilization of differentiation, cost leadership as well as focus in attaining a competitive advantage. In simple terms competitive advantage can be described as the general position that a corporation acquires in association with that of other corporations that are in a similar sector. There are different and numerous effective strategies through which competition can be handled. Having a more focused approach implies that the ability of the products to do well in the market is high since its ability has already been drawn (Kabst & Matiaske, 2005). To begin with the cost leadership approach is a description of when a corporation has made the primary decision of offering the cheapest products within the markets that it operates in. The approach requires the customization of goods in order to boost the capability of taking advantage of the scales economy. In real sense there is only a single cost leader who normally offers the least product prices within a given market. The corporation can utilize this strategy in expanding its presence after penetration into the American market but it has to ensure that its product ranges meets all the necessities of the market since this may require it to transform them even further beyond the minimal prices thus resulting to loss. In other words the corporation should be offering similar services to those offered by other firms but at reduced prices (Valentine, Mathis & Jackson, 2013).
On the other hand, differentiation normally refers to offering premium products at close prices to the low quality products that the competitors are giving. This is ensuring that the products are unique to allow the consumers to perceive them as superior. The fact that the corporation will be developing different products generally means that the consumers will think that they are much higher as compared to the rest. The utilization of this strategy is where the corporation willfully selects a specific product characteristic which they will priorities to develop (Ireland, Hoskisson & Hitt, 2012). This feature cannot be selected for the sake without establishing whether it will be relevant in the market. Since the market in the discussion is the American market the corporation can best focus on branding. Contrarily the cost leader approach, a differentiation strategy is more flexible since it allows the coexistence of products given that they offer the differentiation effect (Ireland, Hoskisson & Hitt, 2012). In addition to branding the products in a different way, the corporation can also offer price as well as the differentiation of prices.
The last strategy is referred to as focus. This means that the corporation has to divide its attention within a narrow market segment through reducing the rate of expansion to permit development. This will permit the corporation to be speculates in the narrow market and try to impress the consumers within (Truss, Mankin & Kelliher, 2012). Burger Fuel should have a specific set of those advantages that they should gain. In this case, the advantages involves, a stable market, maximize profit and attain a higher consumer segment within the two years in operation. The corporation should, therefore, be focused on offering foods at the lowest possible prices which their competitors cannot be able to attain. This cannot be attained with the efficiency of the stores and ensuring that the daily operations are conducted at reduced prices. This will be effective in permitting superiority of the stores as compared to the current offering in the market given that the corporation will be offering food at prices that are lower as compared to all the other firms that exists in the industry (Truss, Mankin & Kelliher, 2012).
In addition, the other advantage that the corporation should adopt is high delivery speed to consumers. This is useful in ensuring that the consumers are fully satisfied with the services. However this cannot be obtained without the implementation of simple and fast preparations of food to the employees (Hoskisson & Hoskisson, 2013). This additionally necessitates providing the employees with an environment that is favorable and relaxed. When employees are highly motivated this means that their ability to perform fast and effectively is enhanced. In addition the employees are able o serve the consumers accordingly because they feel valued. The preparations and recipes should be those that are easy to understand and execute with reduced potential for failure which will , in turn, impact the production and delivery speed positively. Both strategies are directly in compliance with the corporation’s vision which is to become a leading provider of healthy and quality foods. In order to be at the leading position, the corporation is necessitated to offer premium quality, cleanliness, safe, healthy, high value and quality services so that the expectation of all the consumers can be met without fail (Valentine, Mathis & Jackson, 2013).
Product differentiation can particularly be defined as the strategy of market that is utilized by businesses in distinguishing their products from the ones offered on the market under a similar category. For a fresh market venture into the American market, this strategy will be beneficial to burger Fuel in offering a competitive advantage in a market that is fully dominated by extensive corporations (Magretta, 2012). The differentiation approach that the corporation should utilize should be targeting a specific group in order to different its perception to those of similar products in the market. When a corporation utilizes the strategy of differentiating its services as well as products on a particular market it develops a high value among its customers and the willing consumers in the market. An approach that is directly objected on the generation value is crucial in highlighting the long-term sustainability of the product in the market. Differentiation is a form of non-competition without the utilization of prices in being competitive (Hoskisson & Hoskisson, 2013). This is because the strategy opens grounds for the corporation to participate in competition without the engagement of prices. For instance, the company can differentiate its menu through offering a distinct taste as well as improve on quality.
However, in the American market price differentiation is a major approach since individuals are currently demanding products that are characterized by less cost. This approach is effective since it increases the ability of the corporation to attract more consumers as well to increase sales through affordability. In addition this is the most appropriate strategy for Burger Fuel since the corporation lacks a positive brand perception. With the need to develop brand loyalty a successful differentiation approach will work best. This particular strategy is effective in the creation of a higher market share via the anticipated cost, safety and quality through gaining loyalty from the market (Magretta, 2012). The corporation must therefore sustain the development the delivering value as well as quality to all its consumers so that loyalty can be maintained. In a market that is characterized by high competition like the fast food sector in the united states if a product fails in maintaining its effectiveness in quality consumers are likely to shift directly to substitutes that are produced similarly by the other firms. In addition the differentiation strategy is never effective if it is based on what the competitors are engaged in. this means that the corporation must fully focus on customization that has no substitute in the market to create a much firmer perception. The approach should therefore be based on an innovative design that is not present in other foods. After the corporation has attained an advantage in the American market it will not be necessary to try to impress the consumers since they will automatically perceive the foods as unique (Hoskisson & Hoskisson, 2013).
Differentiation as an approach of competitive position offers corporations with uniqueness that is required to survive in a given market through accounting for the tastes, need and preferences of the consumers (Griffin, 2012). In the particular case of the American market, the preference would be affordability, healthy as well as high quality. Consumers are highly willing to spend more on quality, affordable as well as healthy foods. This is driven by the changes in the living, expensive living thus the necessity to increase savings as well as the rise of diseases which are mainly encouraged by unhealthy eating habits. A generic focus that the corporation should adopt lies on focusing on the millennial generation which is widely established to be highly concerned in regard to intakes. The group is highly knowledgeable about natural, organic and healthy foods which meet their necessity to maintain physical structure and wellness for the future (Griffin, 2012).
If the attractiveness and the effectiveness of an organization to generate profit, positioning is highly required. When a corporation is positioned at a market will low profitability positioning holds the capability of creating higher returns (Freeman, 2010). Competitive advantage in the American and the rest of the market can best be attained with the utilization of cost advantage and distinguishing. The three strategies by Porter which are leadership cost, focus and distinction should be utilized in all the levels of the business since they are highly dependent on one another and therefore should be aligned (Zoephel, 2011). The success of the cost leading approach is determined by skills that are required in developing unique products, distribution efficiency, adequate capital access that is necessary for important investments to take part as well as high level of expertise to generate knowledge needed to understand the changes in the market and design fresh and effective solutions. However this approach is characterized by different risks and mainly low cost operation since affordability makes it hard to maximize generation. In addition the advantage can be eliminated quickly with changes and advances in the economic market. In addition when it is accompanied by a focus strategy cost becomes a necessity in order for the market to generate adequate revenue and a higher market share that supports escalation (Freeman, 2010).
The differentiation strategy should be accompanied by a high reputation through the establishment of innovativeness and quality. In addition, the corporation should focus on locating skilled and highly creative staffs as the market requires consistent development (Ercetin & Bağcı, 2016). Despite the fact that different is highly effective and suitable for Burger Fuel in penetrating and growing in the particular market it is associated with risks such as imitation as the competitors may not waste time in adopting the strategy as well as the continuous changes in consumers’ needs, preferences as well as taste. This, therefore, necessitates a full study of the market without fail. In addition since the corporation will also be incorporating the focused approach, this implies that it may have a high potential of achieving higher differentiation in all the structured segments. Focus strategy is additionally characterized by rapid changes as well as high ability to be copied (Ercetin & Bağcı, 2016). However, this strategy presents a more open ground for adopting low cost in operation and maintaining affordability. Moreover, the strategies will benefit the form as it will be able to separate its market from the rest that permitting it to concentrate narrowly on less competition (Ercetin & Bağcı, 2016).
Gaining Sustainable Competitive Advantage in the Expansion Plan to USASustainable competitive advantage can best be described as the corporation’s attributes, capabilities and assets that becomes challenging to overcome or copy and they also offer an authoritative long-term position over all the competitors in the market (Militello & Schwalberg, 2002). These forms of advantages are required by a corporation in thriving in the international economic surrounding today. For investors they are mainly interested in purchasing value and this is best analyzed through the advantages that the corporation has. Without the presence of a single or more it becomes impossible for a corporation from a shortage or a challenge that affected its general ability to perform in the market. Sustainable advantages are primary to the growth of any business. These are the forces that permits the business to achieve increased priority, increase sales, increase profit, consumer growth and maintaining a much higher retention ability as compared to the competitors (Ercetin & Bağcı, 2016). Without these it means that the business will mainly be operating in an environment that has less benefits in terms of consumers satisfaction. Sustainable advantage exists in three distinct forms which are value, cost and focus advantage. To begin with cost advantage is the approach where the business is involved in the competition of using prices. On the other hand, the advantage of value is where the offerings are distinguished in order to attain superiority. Focus means prioritizing a particular market which makes it easy to identify threats as well as business chances with customized offering that best suits the specific market (Ercetin & Bağcı, 2016).
Competing in a fresh market is more better to establish sustainable advantages since the business lacks a market share as well as buying authority for its product in the United States market. Since the business will be targeting mainly the millennial generation these advantages would be essential in serving the group in a more improved way. In this case Burger Fuel can best be achieved through the following. First the corporation is required to have an understanding of its segments and the market in general (Drejer, 2002). This will involve establishing those positions that are not concentrated in the competing firms which is healthier and natural offering and target to generate maximum sales. The corporation will then focus on understanding the needs of the consumers by establishing their actual value and wants proposition to gather their attention more quickly. The corporation will also work on improving its services levels, branding, affordability and quality in order to deliver more value that the consumer’s proposed. The company is well equipped with adequate resources and high capabilities ranging from human resource and this will therefore be utilize in an innovative manner in giving worth to the selected market without fail. The business approach of the corporation will also be designed and developed in support of the targeted Value to best grab the consumers attention (Drejer, 2002).
This plan will enable the corporation to define its consumers, suppliers, and competitors in the American market. Without the establishment of the key things that are required in consistent progress, it would be challenging for the corporation to stabilize in the market. The utilization of sustainable advantages in making sales and well as marketing will make it easier for the segment market understands the benefits of being part of Burger Fuel rather than the competing operators. This will additionally ease the employee’s effort on delivering quality services and products since the consumers will be willing to commit (Drejer, 2002).
Sustainable advantages have specific criteria that can utilize in the establishment of capabilities. The use of value analysis is useful in creating value that is supposed to be upgraded to suit the needs of the corporation (Armstrong & Armstrong, 2011). In order for sustainable advantage for the Burger Fuel to be achieved it has to create non-substitute, expensive to copy, rare as well as valuable capabilities. Valuable capabilities are useful for the corporation in distribution and neutralization of risks and business opportunities within the particular market. Rare capabilities are never owned by the other operators which make it hard and costly to copy thus most will opt to develop their own (Armstrong & Armstrong, 2011). This implies that the capabilities should be unique with a positive brand and cultural perception. Social complexity should never be eliminated in the case since better relations are required among all those involved for effective performance in the market. Sustainable advantage is only in existence if the competing operators cannot copy the firm’s approach or when they have less resources to utilize in copying the innovation (Armstrong & Armstrong, 2011). In addition after they have accomplished to copy the approach then sustainability is never in existence and the strategy can last even longer given that the prime criteria’s are observed and satisfied fully. Burger Fuel should only be focused on the abilities that generates a high degree of competitive strength which may either be for the long term or temporary.
Understanding the company’s core competencies is useful in focusing on the abilities thus creating a more developed competitive advantage. Core practices are defined as the general combination of knowledge, unique skills , technical and experience abilities , cultural value, market connections and intellectual property which gives the company the opportunity to grow as well as create increased worth (Armstrong & Armstrong, 2011). Core competencies of an organization are mainly based on those sectors where the corporation is necessitated to dominate, offer unique value to the consumers and have the capability to administer the business. Through aiming and the sectors where the firm is best situated can be useful for the corporation in reducing risks and shortening the general cycle period thus generating improved responsibility to all the available opportunities in the market. Burger Fuel’s core competencies are leveraged by the utilization of core abilities. The strategies that influence the core practices f the organization is the concentration of delivering value as well as quality which boosts its abilities to serve its specific market. Value, cost and quality strategies are very effective in securing the best positions for the corporation and increasing its markets segments (Armstrong & Armstrong, 2011).
The United States fast food sector is characterized by stiff competition that is posed by established and extensive organizations such as McDonald which has a strong attendance in the global industry. Competitive advantage can thus be termed as something that equips the firm in a better way in the minds of consumers better than other operators (Drejer, 2002). Before attaining a competitive advantage in the American market the corporation has to understand what it produces, its competitors and the targeted segment. Understanding these basic concepts offers a more comfortable ground for the corporation to benefit. Competitive leading position in the USA fast food sector is never durable for any organization based on the lack of developing sustainable and unique approaches (Drejer, 2002). For the corporation, the reduction of prices can work best after the penetration into the fresh market to gather a favorable share of the market in a short run. However, this position may be eliminated by the restoration of prices similar to those of competitors as the consumers may feel betrayed.
Burger Fuel is thus required to generate clear objectives, plans, approaches as well as operations so that the competitive advantage can be sustained fully. The organization works on a favorable culture that aligns the needs and values of the staffs with the particular goals of the organization without fail. However, all these strategies cannot be aligned at once since it the ability to be efficient may be affected. The comparative advantage of operating in the US market is that it’s based on high innovation (Dhar, 2008). The American market are well known for generating products that are highly innovative to the general market at a high speed as compared to other states (Dhar, 2008). This is particularly Fueled by high competition and the necessity to be superior by offering distinguished products. In addition America offers a wealthy and enormous domestic customer’s bottom. This normally makes it easier for the corporation to test their products and handle the associated issues at the home market which has a greater voice when it comes to consumption. With success the ability to market and increase sales in the global market is made easy.
Figures and Tables Figure 1: Sales competition SharesTable 1: Burger Outlets Share and Spending
Burger Outlet |
Share |
Annual spending approximation |
McDonalds |
40 percent |
23, 902,000 |
KFC |
23 percent |
23,412,000 |
Burger king |
19 percent |
20,534,000 |
Burger Fuel |
6 percent |
208,000 |
Wendy |
5 percent |
2, 787,000 |
Other Burgers |
4 percent |
297,000 |
Oporto |
1 percent |
28,000 |
Carls Jr. |
3 Percent |
2,884,000 |
Summary |
|
74,059,000 Dollars |
The best strategies to utilize in the US hamburger market in attaining sustainable and competitive advantage are Michael porter’s approaches which are a focus, differentiation as well as cost leading (Dhar, 2008). This implies that the corporation is supposed to lead to the provision of reasonable value that is offered at a decreased price which will help in improving the general efficiency in operation (Dhar, 2008). The corporation has to work on less cost in order to enhance products affordability as a major marketing strategy. The corporation can additionally focus on the needs of the consumers through providing unique, premium products and speedy delivery. The servicing has to be quality to give the consumers the best experiences that are enhanced with innovativeness (Dhar, 2008). The corporation will, therefore, begin with concentrating on a small segment that is not well handled by the established operators through offering healthy and natural products with high quality at reduced prices.
RecommendationsBurger Fuel’s primary focus is based on the concentration into different markets and particularly on expanding into the American fast food sector. This must, therefore, be accomplished with a high degree of product and services innovation. Based on the external and the intrinsic factors that were demonstrated by the Pestle and the firm’s SWOT analysis it is very clear that there is a need of making some modifications on some of the approaches being utilized by the corporation in order to boost its ability to sustaining its competitiveness. In order, some of the important issues regarding the potential of the corporation can be addressed adequately the following are some of the recommended modifications that require being handled.
The corporation should begin by distinguishing, branding and diversifying its product mix which will address the issue of products range limitation. Diversification of the menu will be useful in providing the consumers with improved grounds to operate on. This is in that the corporation is required to incorporate different foods, preferences as well as tastes to address the needs of the differing consumers. A branding strategy will help in marketing its products through creating a positive perception in the consumer’s mind without fail. In addition, the corporation should be socially and environmentally responsible through transforming its branding to be friendly to the society and the environment which will earn it a positive reputation. Not evading policies as most corporations do in America due to the loose regulation will also contribute to building a reputation. Moreover, the corporation should improve its services quality to provide the consumers with the best experiences. This may also be useful in the creation of loyalty through accounting for healthiness to suit the modern changes. Finally, the corporation can narrow down the objective of extensive expansion in order to focus on a less market and learn quickly.
ConclusionBurger Fuel worldwide operates in an environment that is characterized by high competition due to innovation advancement and high demand for fast foods. In the particular surrounding the threat of competitors is consistent and thus the implementation of effective strategies is required. The company is objected at making more ventures to fresh market and particularly the American market. This market is essential for growth since it is characterized by high innovation and demand for foods from the huge market. However, competition will be the primary challenge of the firm since most of the firms in the market are well grounded globally. To overcome this kind of competition Burger Fuel is necessitated to build a differentiation position that will make it an automatic part of the intensifying competition since most of its strategies are already adopted. However, the millennial group which holds the need for healthy, safe, affordable and quality products is not being concentrated on.
The corporation has built a good image due to quality, healthy excellence and quality services. Therefore in order for the firm to retain its competitiveness in the new expansions, burger Fuel should adopt differentiation to be superior to other operators within the markets. Burger Fuel must possess the capability to sustain an international perception, expand into fresh markets and utilize of all the economic changes that will support its approaches on expanding its market segments. Operating in the fast food sector requires high knowledge in understanding the changing trends and preferences which will enable the firm in satisfying the needs adequately. So that this can be achieved and diversify its menu the corporation is required to adopt focus, costing leading and differentiation approaches that best suits its marketing needs and the necessity to decrease operation cost.
AppendicesAppendix 1: Need for Healthy Foods
Appendix 2: Fast Food Industry Statistics
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