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Burger Fuel

Table of Contents

Strategic Management. 1

Situational Analysis. 2

Impact of internal and external environment on Burger Fuel Worldwide. 3

Political Environment 4

Economic Environment 5

Socio-Cultural Environment 5

Technological Environment 6

Environment 6

Legal Environment 7

SWOT Analysis. 8

Strengths. 8

Weaknesses. 9

Opportunities. 10

Threats. 10

Business Strategies for a Competitive Position. 11

Gaining Sustainable Competitive Advantage in the Expansion Plan to USA.. 17

Figures and Tables. 22

Figure 1: Sales competition Shares. 22

Table 1: Burger Outlets Share and Spending. 22

Recommendations. 23

Conclusion. 24

Appendices. 25

Appendix 1: Need for Healthy Foods. 26

Appendix 2: Fast Food Industry Statistics. 26

References. 27

 

    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 Analysis

Burger 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 Worldwide

Commercial 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 Analysis

Burger 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 Position

The 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 USA

Sustainable  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 Shares

Table 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.

Recommendations

Burger 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.

Conclusion

Burger 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.

Appendices

Appendix 1: Need for Healthy Foods

Appendix 2: Fast Food Industry Statistics

                      

 

 

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