Macro Environment Analysis Of Red Rooster Company Essay.

Brief Background of Red Rooster

Businesses are of different types and can be perceived from different parameters: national and international. Marketing on a national basis is an attempt of the companies and organizations to cater to the needs, demands and requirements of the local people. Attaching the parameter of international in this perspective reflects the attempt to move beyond the comfort zone to an entirely different sphere, which is known as foreign market penetration, according the business terminology (Wagner & Svensson, 2014). This report attempts to provide an insight into the macro environment of Red Rooster Company, which is an indication of the dynamics of business practiced for penetrating into foreign markets.

Fast foods have occupied a large share in the Australian food market. As a matter of specification, there has been an increase of 30% in the demand for fast foods as compared to the traditional foods, which has projected an increase of a mere 5%. This is due to the change in the lifestyle of the people. In this situation, Red Rooster is a name, which serves readymade food to the people in a short time. Since 1972, Red Rooster has been catering to the appetites of the people across the globe. As a matter of specification, the company serves wide range of roasts, wraps, burgers, salads and desserts to bring happiness in the lives of the customers (Redrooster.com.au, 2017).
 

Figure 1: Logo of Red Rooster Company

Chicken is the common ingredient, which is innovatively served to the customers. The company envisions serving quality foods to the customers for attaining their satisfaction. Along with quality, ensuring the health and wellbeing of the customers makes the company stand out from the contemporary brands, aiming to win the rat race for attaining better placement amidst the competitive ambience of the Australian market.

The company has emerged successful in opening over 360 restaurants within the Australian threshold. Along with this, the company possesses the support of 7500 employees, which makes Red Rooster one of the companies having the largest market share in Australia. This is assistance in terms of serving lip smacking chicken delicacies to the people, with innovation as one of the main themes (Redrooster.com.au, 2017).

There is an exquisite range of chicken preparations that the company offers to the customers. Typical examples of these are whole roast, Big Feast, wholesome roast, Classic quarter and the list goes on. Along with these, there are rolls, wraps and burgers, which are filled with spicy sauce. The creamy and chocolaty ice creams add smiles in the face of the customers from the age of 8 years to 80 years. The mega boxes add entertainment within the family discussions, parties and other celebrations (Redrooster.com.au, 2017).  

Country Analysis of Red Rooster

For upgrading the quality of the services, the personnel conducted a market research regarding the requirements of the native as well as the foreigners. The result was of this research was diversification of the Australian food market for serving healthy foods to the people. The major drive behind this was half of the population being overweight. In order to cater to the health needs of these obese people, Red Rooster introduced D’Lish burger. The richness of tomato, onion, lettuce and avocado restricts high calorie intake. Apart from this, the skinless chicken breast provides protein that is required for the boosting the immunity power (Canberratimes.com.au, 2017). The other healthy foods offered by Red Rooster are chicken wraps, salads and classic roast, which, filled with the goodness of vegetables is a perfect meal for the people intending of have a healthy yet tasty meal.

Fast food Industry has attained widespread popularity in the countries, highways, shopping malls, and outskirts almost everywhere. As compared to the earlier times, noticeable variations have come within the menus and tapestry of the restaurants. This reflects the attempts undertaken by the brands to lure the purchasing power of the buyers.

Pondering upon the industry statistics from a global perspective, the industry generates overall revenue of $570 million. This is unusual figure in terms of the economic value generated by a country (Smh.com.au, 2017). The fast casual food industry generates 50% revenue as compared to the other segments of the industry. Musical and simplistic ambience in each of the location lures the attention of the customers. According to the statistical records, the chicken restaurants have 8% accumulation of the market shares. In view of these statistics, Red Rooster attains a significant position.

The company originated in the western region of Australia. Maintenance of consistency in offering franchises has expanded the business of Red Rooster. This kind of support has influenced the purchasing power of the investors such as Big Booster chain, Australian Fast Foods among others (Redrooster.com.au, 2017). It is these franchises, which took Red Rooster to Queensland and Perth. It was the period between 1992- 2002, when roasted chicken became an integral part of the fast food industry. In April 2007, the company went into the charge of a consortium, which was known as the Quadrant capital. The capital firm was a subsidy of Westpac. The charge recorded for this was A$180 million. This was the initiation of crisis period for Red Rooster. In April 2009, the company personnel were compelled to close down their outlet in New Zealand. In the following year, 2010, the company took assistance from the franchisees for carrying out the business activities (Redrooster.com.au, 2017). The selling of Quick Service restaurants to Archer capital for A$450 millions reflects the tragic fate of Red Rooster in terms of sustaining their hard earned profit.

Macro Environment of Red Rooster

One of the outlets of Red Rooster is located at Spencer Street in Melbourne, the eastern most region of Australia. The store offers roasted chicken, salads, burgers and chips to the local as well as the outsiders. The store is a spacious one with mesmerizing scenic beauty. Opposite to this, one of the other stores of Red Rooster is situated at Karrinyup, the western coast of Australia. The menu is the same as that of the one served at Melbourne. The only difference is in the type of the restaurant (Redrooster.com.au, 2017). The one situated at Melbourne is specialized in all types of fast foods, demanded by the people, whereas the one at Karrinyup is specialized only in chicken preparations.

The Red Rooster store settled at Casuarina Square Medical centre, the northern most point of Australia.  The menu is the same as that of the outlets at Melbourne and Karrinyup. Red Rooster Fairfield Waters is situated at Idalia. The store has online ordering facilities, which reflects the popularity in the northern region of Australia. The outlet of Red Rooster situated as Peppermint Grove is located almost on the verge of The Great Australian Bight. This is assistance in terms of serving fish rolls and wraps to the customers (Redrooster.com.au,2017). The store established at Milton QLD 4064 is on the easternmost point of Australia. The scenic beauty of the Tasman Sea bestows delicious fish preparations to the customers.

In all of the mentioned outlets, the delicacies are the burgers, chicken, salads and wraps, which satisfies the adrenaline rush of the customers belonging to the age group of 8 to 80.  

Australia is one such country, which attains stability from the influence of political and social spheres. In this perspective, PESTLE analysis for Red Rooster is as follows:

Political Factors

Introduction of Goods and Service Tax (GST) in place of Whole Sales Tax (WST) has aggravated the complexities of the company in terms of setting the prices of the products. This introduction has resulted in the fluctuation of prices, which adversely affects the purchasing power of the customers (Wild, Wild & Han 2014). Along with this, the Free Trade Agreement is an opportunity for Red Rooster in terms of expanding their business through the means of importing and exporting activities.

Economic Factors

Lifting up the trade policies has provided the company with the opportunity to invest in the foreign markets and achieve growth in the business. This is due to the firmness of the Free Trade Agreement (FTA). Credit for this goes to the Australian economists, who, through their persevered approach have maintained the stability in spite of SARS epidemic, Political unrest in Iraq and economic collapse within Asia and the threshold of United States (Qsrmedia.com.au, 2017). Along with this, apps such as MySmart Money has helped the company personnel in terms of developing the budget.

Socio-Cultural Factors

The company has adopted certain changes with the changing needs, demands and requirements of the customers. Typical example in this direction is the introduction of healthy meal boxes. Other examples include altering the tapestry of the restaurants to make the foreign customers aware of the cultural heritage. One of the mentionable acts of the company is attaining the sponsorship for competition of the racing cars. This step has made the company more approachable to the customers. Viewing it from the other perspective, organizing these activities has enabled the company to provide thrilling experience to the customers, which enhances the corporate social responsibility of Red Rooster (Redrooster.com.au, 2017).

Technological Factors

Adoption of technologically advanced machines has enabled the company personnel to reach to a large mass of audience. Herein lays the effectiveness of the social media marketing. Putting the news of the newly launched products and services on the social networking sites with attractive phrases and languages escalates the trafficking of the audience towards the brand. Along with this, special discounts on online orders through mobile applications reflect the technological advancement for the company, Red Rooster. The major drive behind this is the adherence and compliance to the IT legislations (Forsgren & Johanson, 2014).

Legal Factors

In all of the business procedures, the company abides by the market legislations. This is assistance in terms of reducing the instances of conflicts, discriminations and harassments, which spoil the sanctity of the workplace. Typical example in this direction is the adherence to the competition policies, which helps the personnel to indulge into fair trade with the contemporary brands. This transparency is the agent for attaining trust, reliance and dependence from the customers (Beamish, 2013).  

Environmental Factors

The chicken and the other raw materials for making burgers and other items are brought fresh from the market (Jackson et al. 2014). After this, they are thoroughly washed under the running water twice: once before peeling and after peeling. This kills the bacteria and germs, which are harmful for the customers. The maintenance of hygiene in the kitchen as well as in the eating places reflects the conscious attitude of the personnel towards the health conditions of the customers. The waste disposal and management techniques adopted by the company staffs are highly recommendable (Redrooster.com.au, 2017). Segregation of the waste according to their types maintains the freshness and quality of the food products.

Red Rooster has travelled much distance for penetrating into the foreign markets. The evidence for this fact is the social media marketing. This parameter has bestowed the tag of wider network within Australia. As a matter of specification, the facilities of home delivery and online ordering have made Red Rooster a common name amongst the customers. Maintaining a strategic vision in this direction would prove beneficial for the company in terms of globalizing its reputation (Dunning, 2013).

The influence of the Foods Standards code is heavily increasing around the world, which might act as an obstacle in the export and import activities of the company. Exposure of negligent attitude in this direction would deprive the customers of their love for chicken. Carrying out market research regarding the demand for fast foods among the customers would make the personnel aware of their needs, demands and requirements (Vandevijvere, Swinburn & International Network for Food and Obesity/non-communicable diseases (NCDs) Research, Monitoring and Action Support INFORMAS, 2014). From this, identifying a particular segment for expanding the business would prove fruitful for Red Rooster in terms of enhancing the productivity and adding value to the profit margin (Jenkins, 2013). For this, reducing the current costs and adding value to the items would attract large number of customers, especially the middle class. Along with this, if more outlets are opened in close proximity to the customers, there would be an escalation in the sales revenue, which would add to the profit margin. This would enable the company personnel to enter into the foreign markets. If the customers are served with quality products, they would give high ratings to the company products and services. This valuation would act assistance in terms of setting the prices of the food items (Picciotto & Mayne, 2016).

As per the arguments of Hamilton & Webster (2015), mere creation of the strategies would not help the company, Red Rooster to enter into the foreign markets. Financial flexibility needs to be assessed for recruiting more staffs if needed for upgrading the quality of the products and services. Herein, maintenance of a functional organizational structure is crucial for preservation of stability in the relationship between the internal and external environment. Emerging successful in this direction would add value to the corporate attitude of the company personnel (Collings, 2014). Along with this, the company needs to possess strong and flexible methods for dealing the intense competition from the contemporary brands such as KFC. As the food market in Australia is weaker, therefore the company can be best assured that there would be less threat in terms of the startup companies trying to establish their brand. This is owing to a mere annual growth of 1.5% (Canberratimes.com.au, 2017). However, creation of innovative fusion foods might Red Rooster to sustain its market position within the competitive ambience. The strategic vision for carrying out the business operations along with the structural management would qualify Red Rooster as capable for mitigating the intense pressure of the market forces (Caprar et al., 2015).

 
Figure 2: Strategic fit formula

Many steps have been taken by Red Rooster for upgradation of the products and services. The adoption of social media marketing has made the company easily approachable in terms of satisfying the food needs of the people. One click and the order is delivered at the home of the customers. This has added to the recreation and luxury of the people, making them obese. Red Rooster possesses solution for this (Okazaki & Taylor, 2013). The answer is the introduction of D’Lish burgers, whose vegetable filings helps the people to consume fewer calories at one go.

According to Kelly et al., (2015), market research is one of an efficient means for upgrading the quality of the existing services. Taking help regarding the items produced by the contemporary brands might add to the stock of products for Red Rooster. However, bringing innovation within the items would help the personnel to lure large number of customers. For example, if multigrain flour used for making the base of the pizza and burgers, then the item would itself be healthy. Along with this, if more and more green leafy vegetables are used in the fillings of the burgers, then the obese people can also indulge themselves into a glutten free meal (Ellison & Boyd, 2013). In case of the chicken meals, using skinless breasts would help the chefs to prepare fat free chicken dishes.

Maintenance of hygiene would attract more customers. Keeping in mind the diseases of bird flu, organizing conferences, campaigns and free health checkups would help the company personnel to restore the trust, reliance and dependence from the customers. Involving experienced doctors and the chefs in these meetings, campaigns and conferences for making the customers assured of the freshness of the raw materials and the chicken would prove fruitful for the personnel in terms of increasing the sales revenue (Zarkada & Fraser, 2015). Apart from this, using the social networking sites for advertising the freshness of the raw ingredients would reflect the attempt of the Red Rooster personnel to ensure the wellbeing of public domain as a whole (Othman & Rahman, 2014).

Taking into consideration the value chain analysis would help the personnel to maintain the equilibrium between the internal and the external environment. Adopting technologically advanced technologies would systematize the business operations, which would bring infrastructural development. This development would automatically enhance the related and supportive activities, which would qualify Red Rooster for entering into the foreign markets (Brindal et al., 2014). Financial flexibility would help the company to buy new technologies, which would cater to the needs, demands and requirements of the customers. Maintenance of stability in this direction would simultaneously bring stability in the supply and demand of the company. Technology acts as an agent between demands the supply (Dant & Grünhagen, 2014).

Possession of a strategic vision proves helpful for the companies and organizations in terms of fulfilling the identified and the specified objectives. This proves true even for the company, Red Rooster. The employees are skilled and efficient enough, the evidence of this lies in the fact that they know each and every sphere of the local market (Malhan, Dalal & Khatri, 2016). Herein, lays the importance of training, which would enhance and upgrade their preconceived experience. Inclusion of communication skills within the training programs would polish the communicative skills of the employees. Providing the chance to give presentations would help the managers to assess the capability of the employees in luring the investors.

The absence of added colors, preservatives is also an indication of opting for healthy food options. In spite of taking this step, the favorite menus of the people are intact. They haven’t undergone any change (Adekola & Sergi, 2016). Seasoning of the chicken by the hands of the chefs reflects the focus on quality and freshness of the chicken prior to the preparation. Washing the hands properly, before and after the preparation, relates to the steps undertaken by the chefs for maintaining cleanliness and hygiene of the kitchen. This reflects a strategic vision to the management of the human resources (Lang & Heasman, 2015).

Supplying quality raw materials to the chefs would result in the production of mouth watering chicken delicacies. The maintenance of quality in the supply of raw materials would be an agent in luring the suppliers. Exporting these items to the neighboring countries would cater to the needs of the customers. High ratings in this direction would pave the way of foreign market penetration for Red Rooster (Crane & Matten, 2016).

Overall, introducing healthy yet tasty foods for the customers would enable the company personnel to lure large number of customers, which is one of the main agents for entering into foreign markets. Emerging successful in this direction would reflect globalization phase for Red Rooster. This joint venture would reflect the stability in the relationship between the managers, staffs and the associate partners (Ronit & Jensen, 2014).

Conclusion

This report emerges successful in providing an insight into the ways and means for penetrating into the foreign market. The infrastructural development of the companies and organizations are the indicators, which project foreign market penetration. The example of Red Rooster enlivens the process adopted for experimenting with the gathered experience in the foreign lands. Marketing mix and target segmentation are some of the recommendations, which would help the company to globalize its business. Apart from this, consistent evaluation after every step would make the personnel aware of the drawbacks. Conscious and rationalistic approach towards these drawbacks would enhance and upgrade the quality of the company products and services. Moreover, this motive would help the company in attaining a better placement and reputational status within the Australian market.

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