Critical Evaluation of Entrepreneurial Australian Business - Case Study Example

Hungry Jack’s Name: Institution: Date: Critical evaluation of entrepreneurial Australian Business Introduction Fast Foods business enterprises have grown tremendously in Australia with McDonalds leading the pack. Fast foods have become popular since they provide a quick way of satisfying the needs of customers within a short time. Hungry Jack’s offers a perfect example of the growth of fast foods businesses in Australia and the world. Formulation of business strategies and timely implementation is responsible tremendous growth in business. The path followed by Hungry Jack’s in its branding and trademark has ensured growth and independence from the parent company. Its establishment in Australian market and the world at large has not occurred without challenges and obstacles that have been overcome (Pollan, 2009). This paper presents the analysis of Hungry Jack’s of Australia as entrepreneurial business and provides recommendations for further growth. Back ground of the Business Hungry Jack’s Ltd is an Australian master of fast food which is a franchise of Burger King Corporation. It is a subsidiary of Competitive Foods Australia which is a company owned privately by Jack Cowin. Hungry Jack’s operates and owns Hungry Jack’s restaurants in Australia. The company has over 300 stores across Australia making it the second largest franchise belonging to Burger King Corporation. Carrols Corporate is the largest franchise. Burger King used the trademark Hungry Jack’s on its entry to Australia found out that its name was already patented as a takeaway food shop in Adelaide hence the trademark Hungry Jack’s was chosen (Wheelen & Hunger, 2012). The first restaurant was in Innaloo, Perth and from there is gradually moved to other states. Hungry Jack’s Ltd renewed its franchise in 1991 with Burger King Corporation and therefore being able to license third party franchisee. Hungry Jack’s restaurants maintain a 1950s theme. This era music is played in these restaurants with related contemporary pictures as well as memorabilia used as décor. The tables and seats are laid out in the style of 1950s style in the sit-down type of restaurants. By the end of 2011 Hungry Jack’s promised an overhaul of its restaurants, menus, advertising and uniforms. The slogan that goes ‘Burgers are Better’ was replaced by ‘Hungry Jack’s makes it better’ (Chalpat, 2010). The company has restaurants across Australia and globally. It comes second to McDonalds. Challenges and business operations Hungry Jacks operations are not viewed in the market to be superior to other competitors in the market. Hungry Jack’s is regarded as second placed after McDonalds that is rated as the market leader. Being a follower does not allow the Hungry Jack to set the trends like pricing and new product development. Market leader take this coveted role. The supply chain of the restaurant is not very elaborate in Australia and there are some bottlenecks in distribution that have to be dealt with. The restaurant has been unable to penetrate to other new markets owing to the high cost of entry. This is not the case for other international companies like McDonalds. Due to limitation of resources the company is unable to nationally achieve equal share of voice as compared to its competitors. The distribution of the company has to grow strong in order to counter the threat by McDonalds (Parker, Parker & Craig, 2008). The company penetrated into the Australian market as a franchise and has grown to be a reputable company. The supply chain of the company is still expanding and the company increases is service delivery. The company has penetrated into international market and increased its customer base. Flexibility in service delivery and prices can ensure that Hungry Jack’s remains on the path to success. Recommendations The CEO of Hungry Jack should be aware of the threat being posed by McDonalds when it comes to competition. The company can deal with competition by stepping up service delivery quality and applying affordable prices. The employees have to be trained to be courteous and always maintain a genuine warn smile while serving customers. The workers should be proud serving customers and enjoy what they do on everyday basis. As long as the company’s restaurants provide what the customers want, they will always come. Being a follower, high prices will drive customers to market leaders (Ferrell & Hartline, 2007). The company management should value treatment of their customers and avoid any negative incidents that might cost its reputation. The different menus have to expand the products being offered by the company. Special offers on public holidays have to be promoted widely in Australia and penetration into the regional market is important. Groups and families can be given discounts to encourage many people to continue trooping into Hungry Jack’s restaurants. There is a chance of expansion in the fast foods market since the burger market has continued to be strong over time. Interesting ways of attracting customers can be found through market research and analysis to discover the unmet needs. Flexibility in hours of working can help Hungry Jack’s to cut an important niche in the market that is profitable. Convenience to customers can be achieved if they feel that their needs are being addressed in the manner that they like (Smith, 2006). Hungry Jack’s has to break out from the monotony of having a similar concept with other fast foods stores. It is important to be original and creative while providing room for customers to feel at home in the restaurants. Preparing delicious products and delivering them in the best way possible to the customers encourage people to purchase the products of the company. Operation costs can be cut down through efficient service delivery and effective programs. The budget for promotion and advertising has to be increased to promote the company stores in Australia. The company has to tap into the leisure time of Australians and encourage the consumption of its fast foods. The products of the company have to be vigorously promoted in order to increase the market share and create a competitive advantage. Advertising has to be designed to appeal across many ages and encourage first time customers to try Hungry Jack’s restaurant. Additional services have to be provided in order to lure customers into the company’s stores. A place for holding pets or offering car wash services can attract more customers to the company’s stores. The company has also to increase its product range and wage off competition from chicken chain operators that have expanded their product range. Price wars with market leaders cannot be won unless the company increases its market share through superior product delivery (Adams, 2007). Discounts can increase sales and encourage customers to make repeat sales. Home delivery service is undermining the expansion of the company’s restaurants. The restaurants can also prepare products that can be carried home by customers. The company can also provide dietary advice that will help Australian to consume fast foods without becoming obese or compromising their health. Awareness about the importance of physical fitness has made some customers to keep away from fast foods. The company has to explain how safely one can consume fast foods without jeopardizing their health. Corporate social responsibility can appeal the company to the immediate community. The company has to be involved in cleaning services, sponsoring charity events, taking part in national building activities, and helping disadvantaged people in the society. The company has to stick to its promise of renovating its restaurants in order to give them a new look. The company has to strive to appeal to all ages of customers. Organic beef options and new Asian styled meals have been added to the menu and new mobile application and website have also been created. This positive move has to be maintained and more adjustments made to ensure that the restaurants appeals to customers. Feedback from customers has to be used to improve the services and products being offered by the company (Charmaine, 2006). Uniqueness in service delivery and responding to customers’ complaints can help the company to expand its customer loyalty and increase its productivity. Continuous research and development will also ensure that the company keeps with the trend in the market and cater for changing needs of customers. Conclusion In order for Hungry Jack’s to remain a force to reckon with in the Fast Foods’ industry, there should continuous improvement of its product range and delivery. High quality service delivery combined with flexibility and variety of menus makes it convenient for shoppers who love it when their needs are met. Strategies formulated have to be implemented timely and ensure bad-timing does not ruin business. The fast foods market is very competitive and any business enterprise has to remain steadfast in order not to lose its customers to competitors. Hungry Jack’s has tried to grow its market share and expand its supply chain. References Adams, C. (2007), Reframing the Obesity Debate: McDonald’s Role May Surprise You, Journal of Law, Medicine, and Ethics 35: 154-157.  Chalpat, S. (2010) "The burgers sell better at Hungry Jack's", WAToday.com. Charmaine, S., 2006, The Complete Asian Cookbook, Seoul: Tuttle Publishing. Ferrell, O.C., & Hartline, M. (2007), Marketing Strategy, New York: Cengage Learning. Parker, D., Parker, D.W., & Craig, M.A. (2008) Managing Projects, Managing People, Melbourne: Macmillan Education AU.  Terry, A. & Forrest, H. (2008) Where's the Beef? Why Burger King Is Hungry Jack's in Australia and Other Complications in Building a Global Franchise Brand, Northwestern Journal of International Law and Business, 28 (2): 171–214. Pollan, M. (2009), In Defense of Food: an Eater's Manifesto. New York City: Penguin Smith, A.F. (2006). Encyclopedia of Junk Food and Fast Food, Toronto: Greenwood Publishing Group. Wheelen, T.L., & Hunger, D.J. (2012). Strategic Management and Business Policy: Toward Global Sustainability, Sydney: Pearson Prentice Hall. Read More