Business Critical Analysis Report

Guojing Liu

BA 3101-712

05-26-2019

Taco Bell Luring Londoners with Beer

Introduction/History

The fast food industry in the United Kingdom has been growing rapidly in recent years as

several international brands establish their presence in major cities such as London. The industry

has evolved significantly over the years in terms of consumer preferences and needs as well as

major developments and improvements in service delivery by the leading companies. London, as

the most multicultural and diverse community in the region, has attracted several major fast food

restaurant chains from different parts of the world offering different cuisines and products that

cater for different population segments.

However, Taco Bell is not entirely new in the UK. The restaurant had established its

presence in London in the late 1980s before quitting the market in the early 1990s (Burke, 2018).

Nevertheless, as it returns to the UK, there is belief that its current strategy will succeed as it

eyes the greater European market (Burke, 2018). London is considered a good base for the

company’s European strategy. However, the imminent exit of the UK from the European Union

after the Brexit vote has ushered in a moment of uncertainty for taco bell and other similar

business that are spreading out to the rest of Europe, or which depend on the rest of European

countries for raw materials as well as the larger market for their products.

Problem Statement

Taco Bell must redefine its business strategy in the wake of the Brexit vote in order to

ensure it remains profitable by offering the best quality services at competitive prices (Burke,

2018).

Alternative Strategies

One way of addressing the imminent Brexit problem is by Taco Bell considering moving

out of The UK and finding another major city within the European Union. With France

remaining in the European Union, Paris has emerged as a favorable city for businesses that are

seeking to rapidly expand across Europe (Joseph, 2019). Some of the challenges that the

company is set to experience by remaining in London include access to employees, the declining

power of the pound, and food shortages (Lintott, 2019). Once the UK leaves the EU, it will

become difficult for Taco Bell to recruited talented and qualified personnel from within the EU

(Joseph, 2019). Furthermore, the uncertainty it created by Brexit has affected the value of the

Sterling Pound, thereby affecting the profitability of British businesses that operate or depend on

the rest of Europe (Maze, 2018). Food shortages are also expected to be experienced in the fast

food industry as most restaurants depend of raw materials such as ingredients that are imported

from European nations.

The other solution for consideration is remaining in London and hoping for a better deal

by the British government. This will ensure that the company continues to have a strong presence

in London and other major cities across the UK. The UK has a unique fast food culture that is

quickly growing (Joseph, 2019). This opens up new opportunities for the company to continue

exploiting despite the Brexit anxiety.

Finally, Taco Bell can also consider rebranding itself as a British firm. This strategy will

ensure the company continues to remain in the UK by localizing its products and services to

appeal to the local market. This will involve recruiting from the UK, sourcing raw materials form

the UK and producing foods and services that resonate with the UK population.

Recommendation

Based on the alternative strategies available for Taco Bell, the recommended strategy for

the business is the company localizing itself and rebranding to become a British company. This

strategy will endear the restaurant to the local market and will position it better to compete with

other local and international restaurants (Lintott, 2019).

Tracking Metrics

Some of the important metrics to consider include the post Brexit legal framework in the

UK, which will ultimately affect the business environment in the country. The new laws together

with the Brexit deal can be used to judge or evaluate the success of taco Bell.

Similarly, the company can also evaluate bits success based on the number of

relationships it creates within the British make. This includes new suppliers and strategic

partners that will help it in the localization process.

What I have learned from this Critical Analysis Exercise

This exercise has been quite informative and I have gained a lot based on the information

I have read and understood. One of the points that stand out for me from this exercise is how

organizations can manage the challenges they encounter in their business environment. For

instance, Taco Bell has to explore a wide range of alternatives and settle on the most appropriate

alternative for the company to drive its agenda and business strategy in the region. Also, taco bell

should focus on redefining its strategies to suite the new business environment where the UK is

no longer part of the European Union. Furthermore, this analysis has helped me develop

analytical skills that I can use to analyze different scenarios that a business may be faced with

from time to time.

References

Burke, S. (2018). Taco Bell luring Londoners with beer. Retrieved from

https://edition.cnn.com/2018/11/23/business/taco-bell-uk/index.html

Joseph, S. (2019). Taco Bell to take bigger bite of UK market with high street push – Marketing

Week. Retrieved from https://www.marketingweek.com/2014/09/25/taco-bell-to-take-

bigger-bite-of-uk-market-with-high-street-push/

Lintott, R. (2019). Impact of Brexit on the foodservice industry: three key factors. Retrieved

from https://www.verdictfoodservice.com/features/impact-of-brexit-on-the-foodservice-

industry/

Maze, J. (2018). Taco Bell takes on London. Retrieved from

https://www.restaurantbusinessonline.com/marketing/taco-bell-takes-london