Strategic analysis is referred to as the process of conducting the research on the company for operating its environment and to formulate the strategy. In the current era, each company need to conduct the strategic analysis in which they can actually evaluate that the strategies formed by the company are appropriate or not. The strategic analysis will take place on the local company and thus the company that has been selected for this report is Grill’d. The company was founded in the year 2004 in Hawthorn, Melbourne. The report includes external analysis and internal analysis with the proposal of the company. The external analysis includes the environmental analysis, industry environment, competitive environment with the analysis of the opportunities and threats of the company. Along with this, the internal analysis includes the firm’s resources, tangible and intangible with the core competency analysis of the company. In the end, the recommendations are proposed to the company related to the changes that they should bring in their organisational strategy.
Overview of company
The company is Australian food chain specialising in burgers and it was founded by Simon Crowe. Grill’d offer the wide range of the burgers of different variety in the market which includes the vegetarians and non-vegetarians. According to the analysis, this is found that there were 35 restaurants in the year 2010 and the number of the restaurant outlets increase in the year 2013 with approx. 125 restaurants (Grill’d, 2018).
Industry of company
The industry of the Grill’d company is the fast food industry which is continuously increasing or growing in the market of Australia. Along with this, the company is not having any international contract as of now as the company is operating their business in the local regions of Australia only.
General environment analysis
The general environment of an organisation includes the range of factors that can influence the working of an organization (Wheelen and Hunger, 2017). The below given is the analysis of the general environmental factors that can affect the Grill’d company.
The political factors that affect the working of Grill’d company include the change in the regulations, policies and plans (Grant, 2016). In Australia, the company is following all the regulations imposed by the government. The government introduce the restrictions related to the sourcing of the beef as the company make use of beef for their farms. The sourcing of beef is done from their own farms due to which they can give surety for the quality beef. The company is dealing with the risk of an increase in the amount of taxes.
The economic analysis includes the factors like inflation rate, GDP, the purchasing power of the company that can affect the operations. The fast-food industry has a well-known presence in the market of Australia and it is growing due to which the company is able to meet the objectives. The GDP per capita of Australia is approx. $56,135 which reflects that there is a rise in the purchasing power of the people (Trading Economics, 2018). The rise in the GDP also brings the improvement in the living standard of people.
The social and cultural factors include the preference of the customer and their buying behaviour towards the products that are offered by the company. The company might face the change in the preference of the customers as maximum people are getting aware of the health factors due to which they consume healthy products. Grill’d company offers the products but they ensure that their burgers are healthy with low sugar, no carb, green veggies and others (Grill’d, 2018). The company should start offering the drinks along with the burgers which will attract the customers in some or other way.
The company get positively affected due to changes or up gradation in the technology. Grill’d company make use of advanced technology for adverting the products. The use of social media is effectively done by the company which include YouTube, Facebook and LinkedIn (Chernev, 2018). This marketing activity is performed by the company for enhancing the sales and revenue with this they can generate their competitive advantage.
Grill’d company is working the fast food industry which directly affects the environmental factors because the company makes use of vegetables and natural resources for offering the financial products to the customers. The company ensure that they make use of the paper instead of plastic which reduce the effect on the environment. Along with this, the company make effective use of the resources which offer numerous benefits which include reductions in waste and many others.
The changes that take place in the global environment are rapid due to which they are obliged to follow the changes on the frequent basis. The government allow the new companies to expand their operations in Australia which can make the environment competitive for Grill’d company.
Australia population is increasing and register approx. 1.8% in the year 2012 and most of them live in the urban areas. Grill’d company offer its products to people with the different age group present in the market including both male and female with the different income groups.
The legal and regulatory issues by the government influence the working of the company across the border which is one of the reason due to which Grill’d company is still serving its products in the local market. Legal issues hurdle the expansion of the business in the other markets.
Porter’s five forces
This model is used by the company for analysing the competitiveness of the Australian market. Grill’d company can actually be able to analyse or evaluate the steps they need to take in the near future for achieving the goals effectively (Hill, Jones and Schilling, 2014).
Bargaining power of customers
Grill’d face high bargaining power of the customers because in the market there is the presence of a large number of providers in the market due to which the buyers have the low switching cost. Moreover, the customers are price and quality sensitive due to which they shift to those who offer the healthy and affordable food (Wellard, et al 2017).
Bargaining power of suppliers
The bargaining power of the suppliers is moderate because in the Australian market there are numerous suppliers who can offer the raw material. Though, these suppliers can ask about the high prices if they supply any material in the small quantity.
The threat of New Entrants
The threat of new entrants is moderate in Australia as there is a huge opportunity in the market due to which companies expand their business operations. Though, the expansion of the companies require the huge amount of funds as it is difficult for them to give competition to Grill’d who is already holding more than 125 outlets in the market.
Threat of Substitutes
The company faces the high threat of substitutes because apart from Grill’d the company have the option of cooking their food by themselves or through any other vendor who can offer the healthy products (David, 2011).
Grill’d company faces the high rivalry intensity in the market because there are numerous companies who offer similar products and services. The major competitors of the company include the McDonald’s and Burger King who give tough competition in the market.
The company has an intense competitive rivalry in the market due to which they have to bring the new strategies which are must to stay in the Australian market. The major competitors of the company are Burger Jack and McDonald’s. Both the companies are leading with a good reputation in the market. The company mainly need to take care of these two groups. The rivalry that is present in this group is that they capture the large market share. Along with this, both the companies have the capability of attracting the customer by offering the variety of options (Madsen and Walker, 2015). For instance; McDonald's company offer both veg and a non-veg burger with this they also offer Sandwiches, puff, wraps, cold drinks, fries and many others. This shows that the McDonald’s company make use of the differentiation marketing strategy (Macca, 2018). Along with this, McDonald's have opened their numerous stores at prime locations which is one of the major strategies. The changes in the menu of the company according to the customer needs and the improvement in the customer service is one of the biggest threats. These changes can make the company to attract more and more customers which affect Grill’d.
Opportunities and threats to the company
- Grill’d company has an opportunity to introduce a new product in their menu as this is the way through which they can attract maximum potential and new customers.
- The company has the opportunity to work more on their customer services for which they need to take the suggestions and feedback from the customers. In addition, the company can easily customize the services offered by them (Day and Schoemaker, 2016).
- Grill’d company has an opportunity in other markets as presently they are operating the business in Australia but they should expand in the New Zealand market.
- The major threat is faced by the company from the competitors that are McDonald’s and burger jack who make use of innovative technology and occupy a large market share.
- The entry of new entrants in the market is another threat which is faced by the company because Australia has a vast potential market.
Grill’d company make use of different types of resources which include tangible, intangible and human resources which are discussed below: -
- Physical: - The physical resources include the number of outlets that the company is maintaining in Australia as they are maintaining 125 outlets. The physical infrastructure in the outlets is impressive in terms of their interior features which include armchairs, sofa, modern lighting with good colour combination with the soothing music. All these elements are effectively used by the company which helps them in making the environment good (Glavas and Mish, 2015).
- Reputation: - Grill’d have good image or reputation in the market of Australia as a healthy hamburger provider with this they are effective in offering the value-added services to their customers. The reason behind the opening of new outlets is that the company is able to maintain the good reputation in the market. In addition to this, the company bring the improvement in their reputation by using the promotional tools in which they can generate the awareness for the products and services that they offer.
- Trademarks: - Grill’d company make use of the trademarks through which they can prevent the unfair competition by protecting the use of symbol, word, logo, design and others (Azevedo, et al 2015).
Grill’d have currently employed more than 700 employees and still there are numerous opportunities for employees are available. The workers of the company are divided into the restaurant staff and corporate employees (Grill’d, 2018). The company offer the effective training to their employees which help them in upgrading their skills which can be used by them in performing the activities. HR of the company also ensures that they hire those people who can actually understand the culture and are skilled in the work allocated to them.
Grill’d capability is that they make use of all the resources effectively to run the business and to meet the organisational goals. The employees of the company are equipped with the leadership skills which is essential for the effective management of the business. Along with this, the company ensure that they offer the healthy range of products which is required because this will attract maximum customers as most of the people are becoming health conscious. The company put efforts in maintaining the standard of food and quality equality in every outlet. This is possible because of the effective training to the employees which is offered by the company. Grill’d make use of the on-job training program due to which their employees learn the things effectively and quickly.
Grill’d maintain the core competency not only in terms of the products but also for the services. The biggest core competency of the company is that they listen to their customers who all visit the outlets as this shows that they believe in offering the personalised services to their customers. This is the way through which they can build the customer loyalty which is essential in the market. In addition to this, the company listens to their customers who help them in understanding the taste of the customers for the products and they can easily bring the same. This helps the company in offering the healthy products with effective prices. This shows that the company meet the test of the significant value to the customers.
Information system solution
The analysis reflects that the company face several issues in the market and it is still growing due to which they need an information system that can help in meeting the goals effectively. It is proposed to the company to make use of the decision support systems which helps the company to make the decisions by working and analysing the data. This supports and brings the improvement in the decision taken by the manager which is required to meet the goals that are to expand the business operations (Laudon and Laudon, 2016). The expansion of the business across the border is not easy for the company as there is a need to take the strong decisions which are essential for meeting the goals. In this system, the manager will learn the ways through which they can make use of the external data.
It is recommended to the Grill’d company to bring the diversification strategy which will help them in offering the wide range of the products to the customers. This will help them in grabbing the attention of the customers in the present market. Along with this, it is suggested to the company at it is high time when the company need to take the major steps to expand their business in different international markets which will meet the objective of the maximum profit of the company. In addition, they will be able to enhance their market presence in other markets.
In the end, it can be concluded that Grill’d company is one of the leading local companies in Australia who is offering the effective services to their customers. Though, the company face the legal obligation due to which they are not able to manage their working effectively but still they are obliged to follow all the rules which are done by them effectively in the current market. In addition to this, due to the changes in preference of customers the company finds a decrease in sales but to recover the same they should understand the needs of the customers effectively. The internal and external analysis reflects that the company is able to give competition to other company but they do have threats from the companies like McDonald’s and Hungry Jack. The core competencies of the company reflect that they are capable enough in offering the value to the customers with the optimum utilization of resources and capabilities.
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