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Straight Six Burger: Internal and External Environment Analysis

Task Assessment 2 – Situation Analysis

The task is now to develop a situation analysis for the enterprise or organisation that you selected for your project proposal. The situation analysis will make up the first half of your completed marketing plan (Assessment 3).

In formulating the situation analysis provide:

1. An executive summary of the report’s findings and recommendations for key areas for the final marketing plan.

2. An introduction – provide a brief introduction/overview of your enterprise or organisation, the aims of the report and the structure of the report.

Structural components such as: A Table of Contents, Table of Figures & Tables, Reference List, Appendices (where appropriate) referenced according to APA referencing requirements (See the APA Guide provided in Moodle).

3. Internal Environment analysis

·         Company background and history, description of the enterprise or organisation based on any feedback received from your project brief, mission statement, corporate objectives (where these are available), brand identity, product or service portfolio overview; and the scope of the marketing plan – all this information is from your project brief and should take into account any feedback you have received for corrections, etc.

·         Internal resources assessment – Human Resources, Financial, Management and Operational capabilities that will support (or hinder) your marketing activities. Assess the internal resources (financial, human and operational) of the company and current or future strengths and weaknesses. Information must be current and accurate to ensure the final draft is feasible.

·         Overview of current (or previous) marketing mix strategies (4Ps or 7Ps) – consider everything from yellow pages activity; use of corporate logo on stationery and uniforms; internet activity; traditional marketing communications (TV, radio, etc); product range; pricing; and distribution activities. Look for strengths and weaknesses.

4. External Environment analysis

·         This is the PESTN analysis – includes a focused discussion of the political, economic, socio-cultural issues (trends), technological and natural environments associated with the company’s market environments.

Consider shifts in market activity and identify possible current or future opportunities or threats.

5. A detailed customer analysis

·         Include target market segmentation (demographics, psychographics, and so forth). Look at the basis of transactions and exchanges with the firm. Who buys, where, when and how, what is bought, to what level, and reasons for purchase. Do purchases relate to discretionary spending or not? Identify any opportunities or threats such as changes in customer demographics.

6. A detailed competitor analysis

·         Identify local, direct and indirect competition. Determine relative (or estimated) market share for your principal competitors. Identify the basis of competition. Develop a matrix where possible to compare the features and benefits of products/product lines between your selected entity and at least 3 primary (main) competitors. Again, identify any opportunities or threats such as changes in competitors, new competition, changes in market share.

7. A SWOT analysis – briefly and concisely summarise the strengths and weaknesses from within the company and any opportunities and threats from the external environment, competitor and customer analyses.

8. Conclusion – introduces no new content

Include (attach) the signed (original) letter from senior management as required.

NOTE: This assessment requires a great deal of time and effort and you will need to critically analyse, interpret and incorporate a large amount of information. Consider very carefully how best to display your information in tables, charts, graphs etc. Don’t simply rely on narratives, sentences and paragraphs!!! You need to be concise and put your information forward in meaningful and visually useful ways so your readers (clients) can quickly and effectively understand your discussion without adding to your word count!!!

Answer

Executive Summary:

The below mentioned article has conducted a thorough research on Straight Six Burger, which is a newly founded company of Australia. The report has articulated the details of the internal environment of the organization. A detail analysis of the external environment has been conducted. The article has analyzed the customer segments of the organization and the giant competitors of the industry. Therefore, the strengths, weaknesses, opportunities and threats have also been identified through SWOT analysis. Lastly some recommendations have been presented to stimulate the organizational growth.

Introduction:

Straight Six is one of the renowned burger joint of Australia that has started its journey on 2017. The organization is committed to create amusing burgers to satisfy the taste buds of their consumers. Before starting this burger joint, the leaders of the organization has conducted research within the industry. According to the management of Straight Six, this is the key secret of their success, as this research work has guided them towards the right direction (straightsix.com.au. 2018). 

The following article has conducted a research on the internal and external environment of Straight Six. Therefore, a customer analysis and competitor analysis has been conducted. It has articulated the strengths, weaknesses, opportunities and threats of Straight Six. Some recommendations have been presented to improve the organizational structure.  

Internal Environment Analysis:

McKinsey 7-S:

internal environment analysis


Fig: McKinsey 7-S Framework

Source: (Ravanfar, 2015)

McKinsey has designed this framework to analyze the internal environment of every organization (Ravanfar, 2015). By using this tool the internal resources of Straight Six Burger can be identified.

Shared Values: The goal of this organization is to achieve the leading position in the industry by satisfying the requirement of large number of food lovers. The organization always tries to adopt new techniques and styles, so they can make a mark in the industry (straightsix.com.au. 2018).

Staff: the organization preserves best employees of the industry that are willing to work hard for the growth of their organization. According to the management, they have almost 575 employees in the organization including the chefs (straightsix.com.au. 2018). They have hired these staffs on the basis of their skills and experiences to make sure that the service that will be provided to their consumers are quality assured.

Style: The organization always follows the market trend. They always offer those products that are preferred by their consumers.  It makes the organization the updated and trendy. They are recently working on more items like- The Swiss Ace, The Nutella Donut Burger, A Low-Cal Lettuce Bun and so on (straightsix.com.au. 2018). They have paid close attention to all the section of their target market. From health conscious buyers to chocolate lover kids, Straight Six has something to offer for everyone.  

Skills: As discussed earlier one of the best and hard working employees are hired within the organization, which signifies that these employee preserve high skills and potential to support the organizational goal. The employees of Straight Six are willing to give their tireless effort for the organization, which helps the organizational management to serve the consumers 7 days in a week. On the other hand, the workforce of the organization is flexible enough to adopt modern techniques and policies (straightsix.com.au. 2018). This has led the authority of Straight Six to experiment with their product structure. According to the manager of the organization, the chefs of Straight Six always play major role in designing the product structure of organization. They show their creativity to guide the authority towards the right direction.  

Strategy: The organizational management of Straight Six has implemented some key and simple strategies within the organizational structure. Some of them are as follows:

  • Straight Six uses all natural ingredients in their food products (straightsix.com.au. 2018).
  • It uses meets that are available in the Australian market; it means they use fresh meets in their products.
  • Straight Six is open 7 days in a week. Thus, consumers can choose their organization instead of those burger centers that are closed on weekends (straightsix.com.au. 2018). 
  • The research team of Straight Six always conducts research to identify the new developments of the industry and the preference of the consumers.

Structure: The organizational structure of Straight Six is designed according to the modern market trend. The organization is highly active on the social media, like – Face Book, Twitter, and Instagram to grab the attention of large number of consumers.  They provide services through Zomato, Tripavisor and so on (straightsix.com.au. 2018). Moreover, the organization is ready to take orders online as well, so consumers can place orders from anywhere at any time. 

System: The organization has some key systems within the organizational structure that are followed by every member of the organization. These systems are considered as the base of Straight Six. According to the leader of this organization, as straight forward is operating within a competitive era, these systems are designed to allow the organization to achieve ist goal properly. These systems are as follows:

  • The human resource management system of the organization plays major role in the organizational activity. The organization always maintains a healthy and transparent relation with the internal stakeholders, as they are assets of the organization. The organizational management always interacts with their staffs to identify their issues and act accordingly (straightsix.com.au. 2018).
  • In order to maintain the profit margin, the organizational leaders of Straight Six have appointed responsible financial management team that maintains stability in the financial structure of the organization (straightsix.com.au. 2018).
  • The performance management system of this organization is also very crucial. The organizational management always monitors the activities of the employees and provides constructive feedback to them, so they can work on their weakness and improve their performance (straightsix.com.au. 2018).

4Ps of Marketing:

Products: The products of Straight Six are various kinds of burgers that are staffed with juicy patties, various kinds of natural sauces, fries and fresh veggies (straightsix.com.au. 2018). 

Price: The prices of Straight Six burgers are affordable for lower and middle class people of the society. The cost of a standard size burger is around $16.50, which is easily available for the people from all income groups (straightsix.com.au. 2018). 

Promotion: The organization use social media platform to promote their business, such as- Face Book, Twitter and Instagram. Online promotional events help the organization to grab the attention of large number of consumers (straightsix.com.au. 2018).

Place: The organization often organizes promotional events on local malls, colleges, and offices to reach to their consumers. The online promotional campaigns also help the organization to promote their brand image (straightsix.com.au. 2018).

 External Environment Analysis:

PESTN Analysis:

Political Factors:

Australia is known as one of the most politically stable country of the world. The educated natives and growing economy is the reason for stable political environment within the country that helps every business organization to function (Colomer, 2016). This scenario has attracted the business organization from entire world to enter into Australian market. 

Economic Factors:

The economic infrastructure of Australia is also stable. The economy of this country is mainly based on manufacturing sector, fast food sector and tourism. The number of working people is huge. The educated workforce of the country is appointed in various working sectors that support the growth of the economy of the country (Hennes et al., 2016). Eventually, it acts as a benefit for the emerging and existing business organizations of the country.

Social Factors:

The business organizations that operate in Australia do not face many obstacles from the local society. As large numbers of local people are highly educated and working, they consider the development of new business organizations as an opportunity for them. The local population of Australia preserves modern thinking and it is superstitious free as well that protects the organizational management from social barriers. The population is diversified as well. Various kinds of people from different cultural background stay together in the country. Thus, cultural obstacles do not play major role within this country (Sallis, J. F., Owen, N., & Fisher, 2015).

Technological Factors:

Technological infrastructure of the country is strong and stable. Thus, it provides sufficient support to the emerging business organization (Hwang et al., 2015). This has led the Straight Six authority to adopt modern technologies within the organization. 

Natural Environment:

Global warming has affected the natural environment of Australia. This large island has become the victim of wildfire, earthquake for several times (Li et al., 2016). Thus, it is important for the business leaders to consider this aspect while designing the organizational structure for their organization. 

Customer Analysis:

Market Segmentation:

Geographic: As per the feedback of the leader of Straight Six, maximum number of consumers that buy products from the organization belongs to urban area. People from cities and towns mainly consume these burgers, as the outlet of the center is close from their residence ()straightsix.com.au. 2018. However, people from the rural areas may also want to consume burger, which must be considered by the leaders of Straight Six.

The rate of burger consumption among Rural and Urban people.

Fig: The rate of burger consumption among Rural and Urban people.

Created by: Author

Demographic: 

Age: It has been witnessed that among the total buyers of Straight Six, 67% people from young generation and middle aged people of the society (straightsix.com.au. 2018). It signifies that the consumption rate of Straight Six burger is higher among the youth and middle aged people.

Consumption rate among various age groups

Fig: Consumption rate among various age groups

Created by: Author

Occupation: Working people and school and college goers enjoy the Straight Six burgers highly, as they stay away from their home for a long time. It leads them to consume this product (straightsix.com.au. 2018).

Psychographic: People who love to eat and who prefer to experiment with the taste buds often rely on Straight Six to satisfy their hungry stomach (straightsix.com.au. 2018). Thus, the psychology of those consumers plays major role in this scenario.

Behavioral: There are many people consumes the burgers of Straight Six who are habituated to consume junk foods, especially burgers. Now a days people often go outside with their friends and enjoy food there to spend some free time, so they can escape from their busy schedule. Hence, this has also affected the market demand of Straight Six (straightsix.com.au. 2018).

Competitor Analysis:

It is not easy for the Straight Six owners to enter and function within the Australian fast food industry. There are many giant players in the industry that have put significant impact on the local as well as global context through high quality performance (De Vogli, Kouvonen and Gimeno, 2014). Two major competitors of Straight Six are- The Local Burger Co. and Johnny’s Burger Joint. The organizational management needs face several challenges due to these two organizations. As these organizations belong to the fast food industry of Australia since a long time and they have gained the attention of large number of consumers. By evaluating the obtained data from the owner of Straight Six, the data of these three organizations can be compared. The comparison is as follows:

Name of the Burger JointsStraight SixThe Local Burger Co.Johnny’s Burger Joint
Important Sections
Sales Per Day200050003500
RevenueA$1 billion/ per yearA$5 billion/ per yearA$3 billion/ per year
No. of working days7 days7 days7days
Number of Employees5751000725
Regular Customer306056


SWOT Analysis:

strengthsWeaknesses
  • The use of natural and fresh ingredients is strength of the organization (straightsix.com.au. 2018).
  • The hard working employees and experienced team of leaders (straightsix.com.au. 2018).
  • The 7 working days strategy is another major strength of the organization (straightsix.com.au. 2018).
  • Strong research team (straightsix.com.au. 2018).
  • It is a new and emerging company of the industry. It does not have a strong background (Boyland, Kavanagh-Safran & Halford, 2015).
  • Being a new member of the industry, it does not have strong financial background (Boyland, Kavanagh-Safran & Halford, 2015).
  • Lack of global presence is a weakness of the organization (Richards et al., 2015).
  • Lack of presence in the rural areas (Richards et al., 2015).
OpportunitiesThreats
  • Fast food industry is one of the fastest growing industries of the world (Garcia et al., 2014).
  • The emergence of modern technologies can be beneficial to reach to the final destination (De Vogli, Kouvonen and Gimeno, 2014).
  • The huge number of working people of Australian society can be helpful for the organization to increase its sales margin (Hennes et al., 2016).
  • Intense market competition (Richards et al., 2015).
  • Globalization has helped the foreign competitors to enter into the country that has increased the threats for Straight Six (Boyland, Kavanagh-Safran & Halford, 2015).
  • The emergence of social media has reduced the privacy level of the organization, as rival companies can easily keep their eye on the competitive advantages of the organization.
  • The emerging health consciousness among the people can be a major threat for the organization (Boyland, Kavanagh-Safran and Halford, 2015).

Conclusion and Recommendations:

As per the previous discussion, it can be concluded that the authority of Straight forward are able to operate the organizational functions in an appropriate manner. However, there are some areas where the organizational management needs to pay close attention while designing the organizational structure:

  • 7 working days in a week can be tiring for the employees. Thus, the organizational management must introduce some motivational techniques within the organizational structure that will motivate the employees to work hard, such as- bonus, incentives and holiday packages and so on. Moreover, they must make sure that all the employees are getting equal breaks and leaves.
  • The organizational management must adopt sponsorship strategy for the betterment of the organization. They can sponsor social event to come into the limelight.
  • The organizational management must consider the demand of the rural consumers and expand their business in the rural areas. It will increase the sales margin of the organization.
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