Fwd_ Nintzz 2nd jan.edited

docx

School

Egerton University *

*We aren’t endorsed by this school

Course

1112

Subject

Business

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by CaptainViper3543

FIVE GUYS-Burger and Fries Business Strategy 2024 – 2029 International Strategy Name: Student Number:

Executive Summary

1.0 Introduction A strategic plan is essential for boosting growth and securing business agility in the global business or trading environment (Bryson & George, 2020). This assignment will continue task one, enhancing the discussion of a national strategy by including an international market development strategy. This assignment aims to analyze three countries and demonstrate the market's potential. It Identifies the key opportunities that moving into that country would provide for "Five Guys" and the likely threats in the current business environment. Hence, this report will design a strategic international development plan for the chosen country. The selected country will be analyzed by conducting a Pestle analysis, and a brief justification for Five Guys's global expansion will be critically evaluated in this assignment. 2.0 National Strategic Plan Review The existing strategic plan recommended in assignment one needs particular modification and development for securing sustainability in the national strategic plan. According to Petera & Šoljaková (2020), implementing strategic management accounting techniques is essential for starting a business and ensuring international expansion. The strategic plan recommended in assignment one is to develop products by introducing a new alternative to meat. Another strategy is introducing vegan products and enhancing product diversification options in the menu. However, for market expansion into Asian countries, vegan options should be present to attain market growth. Another strategy for ensuring strategic expansion was to follow the procedure of dry meal preparation. According to Perreault Jr, Cannon & McCarthy (2021), analyzing consumer demand is a significant attribute of developing a productive marketing plan. As Five Guys belong to the fast food industry, they must assess market demand and ensure sustainable trading or business opportunities (Five Guys, 2023 (b). Another strategy recommended in the first assignment was to allow customers to choose their ingredients, types of buns, and condiments and make their own recipes. This marketing strategy can attract consumers, but it shall include pre-cooked products and take them home to cook themselves. Otherwise, they can use the items from the menu with their twists and have fine dining in the restaurant. According to Brewer & Sebby (2021), assessing consumer purchase intentions significantly improves business in restaurants or fast food sections. However, Nuratirah et al. (2020) argue that self-cooking can attract consumers, but it can enhance the chance of causing accidents or increase cost management in the firm. Hence, Five Guys has to maintain adequate business resources and capabilities to allow consumers to prepare dry meals. The strategic management theory ensures HR resources, capabilities, and organizational resources for maintaining business agility (Bryson & George, 2020). Hence, these are the reviewed National Strategic Plan discussed in assignment one for conducting business in the United Kingdom. 2.1 Internal Analysis of Five Guys Five Guys was founded in 1986 by the Murrell Family, and it introduced its new outlet in Virginia, USA (FIVE GUYS, 2023). The strength or purpose of the chosen organization is to Utilize high-quality ingredients to present unique and premium menu items. Secondly, the firm should Leverage a customizable menu to cater to diverse customer preferences and strengthen its

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

digital presence for marketing (Five Guys, 2023 (a). The core elements that improve strategic management in the selected areas are evaluated in the following section. The first assignment used the VRIO framework to assess Five Guys' essential resources and competencies. 2.1.1 Resources & core competencies The company uses High-quality ingredients to improve food quality (FIVE GUYS, 2023). Five Guys has been consistent with its greater quality product, and its delivery method is appropriate for attaining consumer satisfaction (FIVE GUYS, 2023). Thirdly, the company provides the opportunity for customization to consumers, which can attract the company to get suitable and desired results in the fast food industry (Five Guys, 2023 (a). Five Guys provides Peanuts as complementary snacks, but their primary business is Focused on improving the quality of burgers and fries (Five Guys, 2023 (a). They focused on word-of-mouth advertisement to attract consumers, but a more integrated and beneficial approach is required for international expansion to attain business sustainability. Their wonderful customer services are beneficial for securing adequate customer satisfaction and attaining sustainable business outcomes in the UK fast food industry (Five Guys, 2023 (b). Hence, these are the strengths that Five Guys enjoy in attaining sustainable business outcomes in the fast food industry. Higher price points are considered one of the strongest attributes of Five Guys. 2.1.2 Organisational performance Due to its effective consumer service and product quality, the company has grown dramatically in the UK's fast food industry. Five Guys UK saw its full-year revenue climb 45% to over £237m in the 12 months to 31 December 2021 (The MBS Group, 2022). The Use of fresh ingredients acted as an imitable resource, which has helped the organization enhance the quality of its products (Five Guys, 2023 (b). However, the Open kitchen concept has attracted consumers as they liked the transparency factor with consumers (FIVE GUYS, 2023). Fuertes et al. (2020) have stated that transparency is an effective tool for boosting strategic management and attaining sustainble business in the business environment. The company follows practical Employee training to improve productivity and business agility in the fast food industry. The company’s customer-focused culture is also essential for attracting consumers and attaining business growth in the UK's fast food industry (FIVE GUYS, 2023). Hence, the company is associated with the following effective business services, facilitating its growth in the UK. 2.1.3 Product/Service Evaluation The products are made up of fresh ingredients, and consumers are happy with Five Guys' consumer service and product quality (Five Guys, 2023 (b). Their integrated product and service portfolio utilizes high-quality ingredients to introduce unique and premium menu items and leverage customizable menus to cater to diverse customer preferences (Five Guys, 2023 (b). Additionally, Five Guys has strengthened its digital presence for marketing, which has helped the company attain a nationwide presence (FIVE GUYS, 2023). However, one weakness of the organization is the use of peanut oil, an allergy to some consumers, and limited accessibility to health choices (Five Guys, 2023 (b). Hence, these are key strengths and weaknesses about Five Guys in the UK's fast food industry. 3.0 Key drivers for international strategy

The essential market drivers, opportunities, growth, and push and pull factors are evaluated in this section. Push factors Pull factors Market drivers Fresh ingredients acted as an imitable resource, which has helped the organization enhance the quality of its products (Five Guys, 2023 (b). The fast food market amounted to 21.37 billion British pounds in 2022 (Statista Research Department, 2023). The global fast-food market size was USD 862.05 billion in 2020 (Fortune Business Insights, 2021). Five Guys has successfully maintained more excellent quality products to attain consumer satisfaction. The UK's fast-food market is forecasted to reach 22.04 billion (Statista Research Department, 2023). The global fast-food market is expected to grow from USD 972.74 billion in 2021 to USD 1,467.04 billion by 2028 Five Guys’s Employee training has transformed business agility (Five Guys, 2023 (b). The fast-food industry has experienced unprecedented growth. The need and demand for fast food are increasing in the European and Asian regions (Fortune Business Insights, 2021). The company’s customer- focused culture has attained business growth in the UK's fast food industry (FIVE GUYS, 2023). The fast food industry is a global phenomenon that has attained a competitive landscape in the food service sector. Cost drivers are economic outputs, favourable logistics, and country-specific differences. These attributes should be evaluated by Five Guys. Table 1: Push or pull factors for internationalization in Five Guys (Source: Multiple) Five Guys should keep an integrated record and analysis of their organizational resources to attain a smooth international expansion. Collins (2021) suggests that the Resource-Based View theory (RBV) emphasizes an organization's resources and capabilities in delivering competitive advantage. Hence, Five Guys should evaluate their internal resources and competencies to attain international growth. However, Freeman, Dmytriyev & Phillips (2021) argued that organizations should focus on appropriate stakeholder engagement to ensure sustainable outcomes in providing internationalization. Hence, these are the push and pull factors of internationalization in Five Guys. 3.1 Rationale for International Option Using fresh ingredients, more excellent quality products, employee training, and a customer-focused culture, business growth has been attained in the UK's fast food industry. These factors can help the organization capture business growth in the global business environment. According to Freeman, Dmytriyev & Phillips (2021), the firm's resource-based view should be acknowledged to achieve appropriate consumer satisfaction. Analyzing resources

in a firm is essential for sustaining competitive advantage and assessing valuable, rare, inimitable, and non-substitutable resources. The primary strengths of Five Guys include fresh ingredients, Generosity and customization, Word-of-mouth promotion, and Wonderful customer service (Five Guys, 2023 (b). Hence, these strengths can help the organization attain the desired outcomes of internationalization. The capability of firms should be assessed by analyzing the resources required for business performance and competitiveness over their competitors (Freeman, Dmytriyev & Phillips, 2021). Hence, strengths are significant for helping the company in attaining internationalization. The primary weaknesses of the company include the use of peanut oil, an allergy to some consumers, and limited accessibility to health choices (Five Guys, 2023 (b). For example, the consumers' knowledge and improved awareness of health products can cause difficulties in the international expansion of Five Guys. Hence, Five Guys needs to improve these aspects to attain growth in the global business market. Choosing a health option for marketing can help the company stay ahead of competitors (Collins, 2021). According to Fuertes et al. (2020), strategic framework theory is essential for ensuring market growth and capturing business opportunities. However, Nuratirah et al. (2020) argue that sensory marketing elements should be followed by organizations to attract customers to return to restaurants. Therefore, practical employee training, consumer culture, and better food products can help Five Guys attain international growth (FIVE GUYS, 2023). However, the company should assess consumer trends, needs, and demands to overcome business challenges and become successful internationally. 4.0 Choosing an International Destination The three countries that Five Guys will try to expand in are India, Nigeria, and Sweden. The following section will evaluate the countries' justification, reason, or critical market insights. Name of Country Description/Justification Possibility of success India The fast-food market in India reached 70 billion U.S dollars in 2023 (Statista Research Department, 2023 (a). The forecasted revenue will increase to 125 billion U.S dollars in 2029 (Statista Research Department, 2023 (a). The operational presence of Five Guys can achieve sustainability in the Indian market Medium to higher Nigeria The Nigerian food market's revenue was US$262.50 billion in 2024 (Statista, 2023). The selected fast-food market is expected to grow annually by 12.59% (CAGR 2024-2028) (Statista, 2023). The Nigerian fast-food industry is estimated to be worth $600 billion in 2022 (Statista, 2023). Medium Sweden The Swedish fast food market has generated a net revenue of approximately 111 billion Swedish Medium to higher

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

kronor (Ana López,2023). There's no shortage of fast-food restaurants in Sweden. Table 2: Justification for Choosing International Destination for Five Guys (Source: Multiple) The countries selected for international expansion are illustrated in table (2). The products of Five Guys are suitable for the countries mentioned above because of their similar characteristics and the fact that they can have an operational presence by expanding into foreign nations. Brewer & Sebby (2021) state that organizations should follow appropriate purchase intentions to improve restaurant business and attain customer satisfaction. However, Collins (2021) argues that organizations should follow a resource-based view model of strategic human resource management to enhance international expansion. The following context has provided a brief comparison of the shortlisted countries for facilitating global expansion. 4.1 Country Comparison Table The international presence of business expansion is evaluated in the following section: Countries Factors India Nigeria Sweden Population size The population will reach 140.76 crores in 2021 (MoSPI, 2023). The population of Nigeria reached 223,804,632 in 2023, an excellent increase of 2.41% from 2022 (National Bureau of Statistics, 2023). Sweden's 2023 population have reached 10,612,086 in 2023 (Statistics Sweden, 2023). GDP The country’s GDP was $13.119 trillion in 2023 (MoSPI, 2023). The country’s GDP was $1.117 trillion at the end of 2023. (National Bureau of Statistics, 2023). Sweden's GDP was $570 billion at the end of 2023 (Statistics Sweden, 2023). Employment rate It is forecasted to reach 51.60% in The country’s employment rate The country’s employment rate

2024 (MoSPI, 2023). reached 86.52% in 2023 (National Bureau of Statistics, 2023). reached 69.20% in 2023 (Statistics Sweden, 2023). Corruption index (as per Corruption Perceptions Index by Transparency International) The country’s corruption rank is 40 (Transparency International, 2023). The country’s corruption rank is 55 (Transparency International, 2023). The country’s corruption rank is 83 (Transparency International, 2023). Revenue in the fast- food industry It reached 70 billion U.S dollars in 2023 (Statista Research Department, 2023 (a). Nigerian revenue from fast food will reach US$262.50 billion in 2024 (Statista, 2023). It has reached 111 billion Swedish kronor (Ana López,2023). Average Salary Minimum of INR 8,000 monthly to a maximum of INR 1,43,000 (MoSPI, 2023). Nigeria's average salary was 2,140 U.S. dollars (National Bureau of Statistics, 2023). The average salary in Sweden is around SEK 481,200 per year or SEK 40,100 per month (Statistics Sweden, 2023). Unemployment 8.11% (MoSPI, 2023). 5.76% (National Bureau of Statistics, 2023). 7.9% (Statistics Sweden, 2023). Inflation rate 5.13% (MoSPI, 2023). 22.96% (National Bureau of Statistics, 2023). 3.6% (Statistics Sweden, 2023). Cost of manufacturing or Medium Low High

lower Table 3: Country comparison table for choosing the International Destination for Five Guys (Source: Multiple) Table (3) illustrates detailed information that produced an integrated comparison between the three countries. From all perspectives, India and Sweden have shown significant growth in the last five years. However, the cost of manufacturing or labour is higher in Sweden. Nigeria is developing, but the revenue of the fast food industry is maximum for the Indian market (refer to Table 3). Due to its vast market value and demand, this report will choose India to facilitate market expansion. Consumer needs and demands are essential attributes that help an organization attain sustainable and productive outcomes (Perreault Jr, Cannon & McCarthy, 2021). Similarly, changes in market need and demand are necessary attributes that Five Guys should evaluate to secure sustainable business opportunities in the Indian fast-food industry. 4.2 PESTLE Analysis of India The PESTEL framework is significant because it uses a wide range of data and sources to Identify critical business opportunities for expanding into the country. It will analyze the threats to conducting business in the selected nation or international market. The Pestle framework is evaluated in the following section. 4.2.1 Political environment The government of India empowers and motivates the growth of foreign companies. The fast-food industry is expected to grow 25% to 30% annually (Statista Research Department, 2023 (a). Global brands like McDonald’s and KFC have entered the Indian market, improving India's quality and market attributes. The consumers are aware of these companies, and the political condition is stable to achieve growth in the country. The government of India has introduced newer techniques and a recycling initiative to reduce environmental waste (Frederick & Parappagoudar, 2021). Adopting new technology has enabled more customers to order their food online and allowed the industry to engage with customers. Hence, the political condition of India possesses a positive impact on attracting companies to conduct business in the Indian subcontinent. 4.2.2 Economic environment The revenue and growth from India's fast food industry have been depicted in the comparison table (table 3). Higher-income and consumer demand can help companies conduct business in the selected country. The fast food market in India is considered a Sustainable business industry that can attract foreign companies to expand their business (Frederick & Parappagoudar, 2021). the government has imposed lesser taxes as goods and services tax (GST) on food is 5% (Statista Research Department, 2023 (a). A diversified supply chain and improved cost competitiveness are required to attain business agility. The reduced inflation rate (5.13%) has enhanced business opportunities in the Indian food market. 4.2.3 Socio-cultural environment

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

The higher income and GDP of Indian consumers have motivated customers to eat and enjoy delicious fast foods. India has a culturally diverse population; hence, the marketing strategy should be different and unique by following demographic characteristics. For example, foods like Beef or Pork should be avoided to improve consumer sentiments. The Indian government has imposed integrated public health policies to reduce childhood obesity and increase awareness of healthy lifestyles (Banerjee, 2021). Hence, Five Guys has to provide foods of better quality to ensure better revenue and sales in the country. However, low-calorie food options are not that popular among Indian consumers. The diverse cultural population can pose challenges in conducting business in the Indian subcontinent. Hence, it has dramatically impacted Five Guys in expanding their business in India. 4.2.4 Technological environment Digital technologies, accounting software, and Online ordering have also changed the style of customer service in the Indian food market. Banerjee (2021) researched that the economic status of the Indian fast-food industry has reached a supreme position. Many restaurants and retail outlets have been set up to meet the increasing consumer need and demand. Hence, using technology has helped the industry grow positively and ensure sustainability. For example, McDonald's has implemented a self-checkout screen at fast food venues, which can motivate them to approach the company. 4.2.5 Environmental factors The government of India has introduced newer techniques and a recycling initiative to reduce environmental waste (MoSPI, 2023). Most companies are associated with reducing carbon emissions and avoiding unethical gestures in the industry. The environmental impact of operations remains competitive because it satisfies the needs of environmentally conscious consumers. 4.2.6 Legal environment These factors have a significant impact on influencing the business environment. For example, the Indian government has imposed strict food safety and quality regulations. The growth of social media has made it riskier because consumers report unhealthy or unhygienic events on social media, which can impose strict actions on the firm. Hence, the organization must follow superior quality ingredients and preservatives to avoid lawful suits. 4.3 Competitor Analysis The competitive forces of the Indian Food industry are evaluated by following the Porter Five Forces model: Forces Description Impact Threat of New Entrants The availability and presence of diverse companies are advantageous in the fast-food outlet (Frederick & Parappagoudar, 2021). High Bargaining power of buyers The presence of highly aware consumers High

enhances the risk of getting replaced. Bargaining Power of Suppliers The Presence of suppliers is necessary for attaining growth and securing consumer needs and demands. Medium Competitive rivalry among competitors The presence of McDonald's, Burger King, Domino, KFC, and Tata Starbucks. They are top competitors in the Indian fast-food industry (Banerjee, 2021). High Threat of Substitute Products Competition grounds can increase the chance of getting replaced by the companies mentioned above' products. High Table 4: Porter's Five Forces of the Indian fast-food Industry (Source: Multiple) Five Guys' local business will be more competitive than the Indian fast food market. Hence, competitive rivalry can impact revenue and profit. However, Fuertes et al. (2020) argue that integrated strategic management principles are necessary for attaining sustainable outcomes and benefits in a highly competitive industry. Hence, the identified competitors can cause adverse outcomes in achieving success in the Indian fast food sector. 4.4 Target Market Availability The details about the target market of the Indian fast fashion industry are evaluated in the following section: ● Millennials ● People aged 18-44 ● Social Class B, C1 ● Empty Nesters ● Older married couples with children at home. Five Guys should follow demographic segmentation to target the potential consumer. However, the company should follow a competitive pricing strategy to reach the maximum potential consumers in the Indian fast food market. The marketing and promotional measures should be integrated to incorporate proper revenue in the global business environment. 4.5 Adaptations to Product Service in the Indian Fast Food Market There are no required changes for international expansion in the Indian fast food market. As mentioned earlier, India is a culture-sensitive country. Hence, Five Guys has to follow consumer sentiments to make sustainable changes in the brand. Frederick & Parappagoudar (2021) suggest that organizations follow an effective, sustainable Business Strategy to attain sustainability in the Online Food Service Industry. Therefore, the brand needs to focus more on assessing the local sentiments and develop integrated marketing attributes to ensure competitiveness in the Indian food market. Appropriate Food marketing expertise is essential for

building customer relationships, raising brand awareness, and developing new products in the foreign business environment. 5.0 International Strategy Overview 5.1 Mode of Entry The Market entry strategy is considered one of the most effective options for ensuring business agility and development. Tien et al. (2020) have found that McDonald's entry strategy into the Vietnamese market has helped them attain a sustainable position in the business market. The joint venture is the selected market entry strategy that Five Guys should follow to achieve desired outcomes and benefits in the global business market. According to He et al. (2020), Joint ventures share legal ownership and contribute resources to pursue the business opportunity. A joint venture is significant for enhancing flexibility and managing risks like changes in the local market or improving relationships between partners. However, Sestu & Majocchi (2020) argue that Joint venture combines marketing resources to expand their respective market shares. For example, Starbucks has followed a strategic partnership with Tata Group to attain a sustainable market share in the Indian food industry. Hence, a Joint venture is the ideal strategic option to help the organization ensure marketing and resource implications. 5.2 Strategic Implementation The key steps Five Guys will need to make for strategic implementation are evaluated in the following section: ● Planning the international expansion is necessary for avoiding any issues ● Communication with project stakeholders is essential for ensuring the global expansion (Sestu & Majocchi, 2020) ● Building trust with the local company (Indian or another firm) will be necessary for an integrated Jjoint venture(He et al. 2020). ● The following steps are to Draft a joint venture agreement, Pay taxes, and follow other applicable regulations. The agreement is essential for ensuring appropriate business investment and revenue. The critical resources required by Five Guys are to follow the environmental, legal, and economic factors for ensuring a sustainable business in the Indian foreign industry. According to Shirodkar & Shete (2021), the impact of domestic CSR helps organizations secure internationalization and ensure productive outputs in emerging-market multinational enterprises. However, developing organizational resources and capabilities like HR, marketing, and finance is essential for securing sustainable outputs. Wei et al. (2020) suggest that organizations should follow effective business policies for Managing corporate-government relationships in a multicultural setting. Therefore, CSR branding and appropriate resource implications are essential for driving positive outputs and benefits in the Indian fast-food industry. 6. Conclusion Five Guys can enjoy integrated business abilities and marketing outputs essential to attaining sustainable business outputs in the Indian fast-food industry. The findings of the report state that Five Guys possesses a significant opportunity to secure an integrated market share in the Indian fast-food sector. With the help of appropriate marketing strategies, the selected

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

organization can gain a competitive advantage in the Indian fast-food industry. Joint ventures with local firms can help the organization secure growth and profitable outcomes. However, the availability of appropriate resources and capabilities is essential for ensuring growth and business in the Indian fast-food industry.

Fwd_ Nintzz 2nd jan.edited

Related Documents