E-commerces: business case analysis Essay Example
8BUSINESS CASE ANALYSIS OF HUNGRY JACK’S
Business case analysis of Hungry Jack’s
Current business model and use of information technology
Use of information technology
Hungry Jacks business model is based on the concept of attracting and retaining clients with the aid of information technology. The business has successfully installed a WiFi system throughout its 344 stores across the country with an aim of enhancing customer experience and efficient delivery of services. Apart from that, the entity also rolled out its emerging systems, which assisted in customization of services, offering internal training, registration of guests and staff access. Lastly, in 2012, the Hungry Jacks launched a unique application meant to involve customers and increase awareness and demand for its products. Its Shake & Win App was termed as a huge technological advancement that might take quite some time before competitors can find an equivalent invention.
Within the Australian market, there are huge multinational players with excellent management systems and top-notch information systems. Nonetheless, Hungry Jack’s has been able to present salubrious results by pursuing its business objectives seriously in a bid to create a competitive edge. The internal environment of Hungry Jack’s is made up of excellent personnel who are sourced from local communities. Many employees have confessed that Hungry Jack’s is their first choice employer because of excellent training provided and general employment experience. Apart from employing various technological tools, the company largely invests in its employees. The culture of the entity is pegged on the assumption that happy employees produce the best results. Within the organization, employees are given vast opportunities for career development and promotion. Surprisingly, the organization set up an employee foundation for the sake of offering financial support to its members together with their families, especially in times of need.
Currently, the Hungry Jack’s operates 340 stores across Australia. In addition, the organization employs 900 managers and approximately 18,000 crewmembers. The organization attaches great importance on training and development, particularly on new staff. Training and development is applied as an instrumental strategy for imparting business, leadership, teamwork and communication skills. Hungry Jacks operates on a decentralized organizational system where personnel are given an opportunity to undertake various duties, while in the process make decisions on their own.
Since the Hungry Jack’s operate in an industry characterized by high-level competition, tough regulations, demanding clients and dynamism, its business objectives have led to adoption of numerous technological products. Over the years, the organization has greatly embraced technology as an instrument for cultivating quality of services, reducing costs and attracting clients. Although it is yet to achieve its ultimate technological objectives, great strides have been taken.
The Hungry Jack’s is associated with numerous strengths. To begin with, all of its products are widely believed to be better than what is offered by competitors in terms of value for money, shorter holding times, cooking method, fresher ingredients, taste and size. Besides, the organization prides itself in provision of a wider range of food as compared with its competitors. In terms of environment, the organization has built a mature environment within the range of 18-39. Since its inauguration, the group has managed to gain ownership of distinctive brands, like WHOPPER (wix.com, 2014). Other areas of strength associated with the organization are the growing market share, its Australian image and customization of food delivery process.
Most of Hungry Jack’s operations are not thought to be loftier than competition. The organization also experiences a weakness because it is considered as the second best to McDonalds. Over the years, the organization has failed to achieve equal prominence to competition. Lastly, the organization experienced high cost of entry and poor distribution.
The Hungry Jack’s has numerous opportunities to improve its business and achieve all its business objectives. The country has been undergoing a surge in leisure activities, which consequently led to increased demand for fast foods. In the recent years, the burger market has also been enlarging continuously. Changes in the labor market have also been favorable for expansion of business. Notably, the job industry has been enhancing flexibility in working hours, thereby creating business opportunities in previously dormant parts of the day.
Within the Australian market there are numerous threats facing the organization. McDonald’s has been building competitive pressure, especially in terms of distribution of stores. Business threats also emanate from the fact that various chicken chain operators have been rapidly enhancing their product range. At homes, convenient food range has been expanding, leading to decrease of market for fast foods. Home delivery services for fresh, customized foods have been increasing, creating threats on existing market for fast foods. Citizens of the country have been increasingly favoring light foods, meaning that in future, there is a high chance that demand for beef based products will greatly decrease (wix.com, 2014). Lastly, all major players within the Australian food industry have been developing new stores.
How business needs are being met or not met
The core business need of the Hungry Jack’s is to ensure that guests return because they experience delivery of superior food based on highest standards of cleanliness, service and quality. The organization has greatly been successful in using e-commerce strategies and theory to improve integrity, safety, consistency and handle various quest matters. The wide use of internet resources in the postmodern society has seen creation of numerous business opportunities. The Hungry Jack’s has been at the forefront in investing in technology to attract and retain more clients. For instance, in 2012, the organization launched a wireless internet system in all its 348 stores with an aim of improving market outreach and store’s appeal (Polites, 2014). The system was meant to improve customer experience by giving them a chance to make orders via online platform. The system enabled customers to make online orders and pay for them using a barcode on their phone. Besides, electronic commerce system enabled the organization to market its new offers by dealing directly with customers through their mobile devices.
As part of its electronic commerce strategy, the Hungry Jacks launched the Shake & Win APP. The application was termed as one of the most creative mobile marketing ever used within the Australian food and beverage industry (Australian Mobile Awards, 2013). The organization realized the need to involve its clients in a competition designed to expand knowledge concerning products and services offered. By using the new App, the organization managed to engage its clients, thereby increasing demand for the products and services. The application was solution-oriented because it had been designed to expand demand, increase competitive edge and act as a revenue driver (Australian Mobile Awards, 2013).
The Shake & Win App was created to solve age-long problems that had been experienced by the organization. For many years, the organization had failed to achieve its targets because it had been outspent and outnumbered by McDonalds in terms of number of employees and stores. The e-commerce solution was also meant to cover commercialization of social media opportunities and attain dynamism in engaging with clients.
Gap between current situation and business objectives
Operations in McDonalds differ greatly as compared with Hungry Jack’s because at McDonalds, the concept of Fordism is widely applied. Fordism involves division of tasks into smaller portions, which are then taken up by different staff members. Implementation of the concept of Fordism led to employment of more staff at McDonalds as well as improvement of services because staff is not strained. On the other hand, Hungry Jack’s always fail to achieve its ultimate objectives because it operates on a multi-skilling model where workers are forced to handle various tasks at a time (Atkinson, 2005). It has been noted that multi-skilling has been a source of challenges because workers are often stressed leading to poor customer services. A major problem experienced by the Hungry Jack’s, also emanate from substandard care of dining area. The organization has often been accused of falling cleanliness standards because dirt and garbage everywhere.
Key issues that limit the business’s ability to achieve its goals with respect to information systems
Assumptions and constraints
Most activities and processes undertaken by the Hungry Jacks are pegged on the assumption that the market is highly competitive. For instance, the launch of wireless system was meant to introduce use of technology in ordering and delivery, thereby creating a competitive edge over other market players (Healey, 2012).
The organization assumes that potential clients are technology savvy. The Shake & Win Application was designed to work on smartphones. Smartphone users are engaged by use of maps and chance to share their success with friends via social sites, such as Twitter and Facebook. In addition, the organization hoped to create a platform where swift communication can be achieved. High level of participation of clients can provide the organization with an opportunity to advertise their services and products. Exchange of information can also assist in solving various customer concerns and acquiring ideas for improvement.
Achievement of Hungry Jacks objectives is constraint by certain aspects including weak just in time system. Just-in-time system is partly weakened by the fact that employees are made to handle numerous tasks at a time. Under such a circumstances, the just in time system may not deliver its core objectives (Terry, 2008). If just-in-time system is to operate effectively, then work structures have to be overhauled to give room for efficiency and delivery of client’s needs.
Currently, Hungry Jacks quest expand its technological platform is constraint by absence of efficient payment method, such as mobile money transfer. Absence of an effective payment system leads to inability to reap full benefits of existing business opportunities. Potential clients may not access the organization’s products and services because of effective payment system. A strategic payment method could greatly boost the scope of its operation since thousands of clients could be making and paying for orders online.
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Australian Mobile Awards. (2013). Hungry Jack’s Shake & Win App. Retrieved from http://mobileawards.com.au/ma2013/entry_details.asp?ID=11694&Category_ID=5442
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Hungry Jacks. (2014). Careers. Retrieved from http://www.hungryjacks.com.au/careers
Polites, H. (2014). Hungry Jacks launches new in-store wireless system. Retrieved from http://www.businessspectator.com.au/news/2012/3/27/technology/hungry-jacks-launches-new-store-wireless-system
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