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Final Report

In the first part of the assignment the researcher went ahead to identify the company that would serve as client for the consultation process. The selected firm was Burger King owing to the fact that the researcher had previously worked in this establishment and was aware of its approaches as well as activities. This was largely instrumental because it would assist the researcher through background information of the firm and enable the identification of a problem that was occurring. This section of the assignment is dedicated to identifying such and further elaborating on it with the objective of providing solutions to the firm through a process of consultation.

The researcher relying on both primary information sourced from both the historical knowledge of the firm as well as a recent visit and talks with one of the managers inquired heavily on the possible problems that the company would be experiencing. Several had come up but it was imperative to select one major one and then focus on how this would be addressed. After proper deliberation the paper decided to focus on critical issues that Burger King was facing, which had impeded its growth and performance over the years. This was the problem of fierce competition creating challenges in strategy formulation and implementation. The fast food industry has had intense competition both locally and globally especially with rise of corporate giants such as McDonalds, Subway, Dunkin’ Donuts, and many others (The Economist, 2010). With more as well as stronger competitors existing firms have to adjust to these issues and some of the methods that they have resulted to have given negative outcomes further worsening their state in the larger industry.

In the case of Burger King the last few years has seen the company face stiff competition and diminishing consumer growth rates all because other firms in the industry are coming up with better approaches that rival that of the firm (Jargon, 2010). The manager from both an outlet point of view has pointed out that each year it gets tougher to operate considering that consumers are not growing as they previously were. Other firms have also taken up expansionary approaches that have seen the level of competition in the locality and this keeps worsening business for the Burger King Outlet. One of the key examples that reveals how intense competition has been a large problem both for the outlet and the larger firm was seen a few years ago when McDonalds one of the leading fast food chains increased competition as well as came with a variety of strategies that sought to see it acquire a larger market share than its competitors (Jargon, 2010). Price cuts and intense marketing done by the company had started to negatively affect firms such as Burger King who took to reactive measures (The Economist, 2010). Some of the responses or strategies formulated to counter the intense competition were not well thought out and brought further challenges to the company instead of solutions.

An example, as both narrated by the manager as well as evidenced from secondary data was that of the top company management going ahead to carry out promotions that were based on price rates not carefully thought of (The Economist, 2010). The head of the company had not well consulted the franchisees who run the day to day to operations of the many outlets in the country and the actions taken by the company in marketing new and lower prices of the meals offered put the outlets operators in jeopardy since they were below the cost of producing. This meant that the outlets would be operating at a loss if they were to sell the dishes at the advertised prices (The Economist, 2010). This brought a big issue between the company and its franchisees and ended up in a legal suit which the latter won. However, this was not an end to the problem and the company was and is still facing stiff competitions from some of the leading fast food companies in the country.

There are various aspects that can be noted as contributory factors to why the company is lagging behind as a result of the stiff competition and this is where the researcher comes in as a consultant. For instance, other leading fast food firms are increasingly spending on advertising, research and development, global expansion, diversifying menus to meet client expectations, and health consciousness among other critical issues that need to be addressed if firms are to not only survive but excel in the industry (The Economist, 2010). There is a dire need for more cohesion between the company management and the franchise operators for effective strategy formulation, and implementation. This is because a disconnect such as that witnessed by the company results in misguided strategy that do more harm than good to the firm in both the short and long run.

Thus, in conclusion the major problem that the researcher has identified and would like to look into in depth is that of fierce competition in the industry from the leading companies and the adverse effects it is having on Burger King. Some of the contributions of the manager of the select outlet that the researcher has chosen as well as secondary data have led to the identification of this problem. It also allows the researcher to put their consultative skills into this matter and see how best it can be resolved. The company while facing this stiff competition has continued to exhibit great potential and with the proper approaches could overcome this in the most effective manner.

Discussing Client Needs

In the previous section, the researcher identified that the client, which in this case is the Burger King Franchisee outlet, had revealed that its largest problem is facing stiff competition from other Fast Food operators. This was coupled with the fact that some of the responsive strategies taken up had proven ineffective in addressing the stiff competition posed by the company’s counter parts. This section of the assignment focuses on discussing the client needs in light with the problem identified. This implies a further expounding of the problem for further understanding and this will be done by some of the approaches pointed out in the course material. Therefore, there is a dire need to further understand this problem before proceeding to identifying the solutions required to solve it.

A thorough understanding of the problem always requires in depth analysis of all the surrounding factors. Without doing so, one cannot expect to reach an effective solution probably because they may overlook some critical factors. Hence, it is always vital to analyze the problem thoroughly. One of the renowned methods for problem identification and understanding takes a unique approach of starting from top and going towards the bottom (Clark, 2014). It simply looks at the desired end result and starts to question why it is not being achieved which then points to the problem being experienced. If this is placed in the context of Burger King, then the probable outlook of the approach would first point out the desired objective which is the consumer as well as markets share growth. This is an objective of not just only Burger King but majority of the business that exist because an attributable outcome of both consumer and market share growth is rising profits, therefore this can be understood to be a major objective of the client both at the outlet as well as the organization level.

Now that the desired end result has been identified, it is then compared with the actual results and if a deviation is identified between the two, then it is clear that there is an issue (Rouda, & Kusy, Jr., 1996). This information was pointed out in the previous section where Burger King seems far from achieving this objective of growth in consumers, market share and profits. This clearly indicates that there is a problem or an inhibiting factor that is causing the problem (Rouda, & Kusy, Jr., 1996). Therefore, the function of the researcher is to conduct a thorough analysis of the company and all the key factors, processes, approaches and any other factor that could be resulting to the experienced problem. The issue could be with the strategy, processes, outside factors among many other possibilities (Berry, 2011). Nevertheless, one possible factor that was pointed earlier in this assignment is that Burger King has been very poor at responsive strategies, which are meant to address the stiff completion problem. Some of the strategies it has taken to respond to competition from companies like McDonalds have proven ineffective and actually costly to some of the internal stakeholders such as the Franchise operators. Therefore, this can be identified as a major cause of the company’s problematic situation.

To further, understand the client’s needs, it is imperative to continue looking at the problem and possibly uncovering more facts or crucial information that can lead to the proper understanding of the issue (Berry, 2011). For instance, it is logical to assume that properly structured strategies produce positive results and the contrary applies to those that are poorly made up and executed. This is important because it now reveals the link between the company’s performance and its strategies. It is also important to mention that the nature of the problem has both external and internal factors. This is demonstrated by the fact that while the company is coming up with ineffective strategies that are supposed to improve its performance in the industry, its competitors are taking up effective approaches and this will automatically lead to the worsening of the problem on the part of Burger King. The researcher largely points out that the primary need that the client needs to focus on is a proper strategy formulation.

Strategy formulation is a complex process however, placed in the context of the already identified problem it does simplify to some degree. Knowing clearly that issue is that of stiff completion which worsens the performance of the company and is also adversely affected when the response strategies are effective helps build the foundation for proper approaches (Clark, 2014). In this case the company needs to carry out a thorough analysis of the industry, the large players, their approaches, resources, activities among other essential factors that will lead to the formation of an effective strategy (Berry, 2011). This has been identified by the researcher who can do this as part of their consultancy services.

In conclusion, this section has identified the major need of the client as well as the factors surrounding this matter. This was crucial owing to the fact that problem which involves both internal and external factors is complex and may require a lot of effort by the involved parties if a solution is to be derived. Burger King seems to be facing stiff completion from the leading fast food players and this is further worsened by the fact that the responsive strategies have proved ineffective. Identifying this brings the researcher closer to the solution and also provides a clear understanding of the client’s needs.

Discussing Solutions

In the earlier sections of this assignment, the researcher has identified the client as well as the problems that face them. This was a rigorous process that involved length discussions with one of the Franchisee of Burger King and a lot of secondary data collection all with the effort of trying to substantiate and understand the problem. Eventually the issues identified were two main factors. The first is that the company is facing stiff competition from its counterparts the likes of McDonalds and KFC and this has had a negative effect on its performance. This problem was made worse by the fact that the responsive strategy taken up by the company had proven ineffective and actually caused more harm than good on the part of the franchise owners who operated the company outlets. The researcher is supposed to take up a consultative role and try point out solutions that would help address the problem. This is the objective of this paper and below are the proposed solutions.

One of issue that complicates this factor is that the franchise owners who operate the outlets of Burger King are limited in terms of their strategic contribution to the company as per what the client divulged. This makes it highly difficult owing to the fact that the strategy which then controls company processes play a vital role in the success or failure of a company (Clark, 2010). Therefore, it is vital to point out that a key solution not only for the franchisee outlet but for the entire company is increased involvement of outlet operators in decision making, particularly contributing the framework of some of the major strategies that the company decides to take up. However, since this is a challenging matter considering the complexities brought about by the Franchise business model there are other solutions that can be recommended both at the outlet level as well as the company level to address the current problems.

One of the common approaches known is that of using the Continuous Process Improvement model or CPI. This model focuses on continuous adjustment of company processes all in the effort of ensuring the quality of both activities and company output is on an upward trend. Therefore, in the case of the client one plausible approach that can address the current challenges being experienced is that employing CPI and applying it to the day to day activities and processes. For instance, a key aspect of quality when it comes to processes is that of efficiency (Clark, 2010). By minimizing wastage through effective resource utilization the outlet can save on costs and this can reflect well when it comes to profitability. This could also lead to the saved resourced going on to improve the products that the company offers. For instance, extra resources could now cover the proposed revenue margin that was brought about by lowering prices. This then makes it plausible for the company to use price as a competing factor and this could help the company gain advantage over its counterparts who seem to be employing the same process.

CPI can also be linked to increased customer satisfaction and this could be a strong factor in addressing the company’s problem (Clark, 2010). Due to the fact that decreasing customer levels attributed to the company’s competitors is a large part of the problem, a solution to this would be counteractive measures such as those of promoting consumer satisfaction to enhance loyalty. CPI assists this by going ahead to improve the company processes and outcomes. One way in which the outlet can do this is by conducting consumer surveys on some of the dissatisfying factors that can be attributed to either their products or processes. It can also carry out an internal assessment of some areas that need improving with respect to customer satisfaction. This can be a major aspect of the framework making up the overall solution for the company.

The last proposed solution that the researcher would like to point out, which may also address the issue of the problem being at the organizational and not the outlet level only is that of organizational development (OD). Organizational development, which is more applicable on a larger scale which is at the company level focuses on change that is meant to improve the performance of the company (Rouda, & Kusy, Jnr, 1996). As mentioned the company seems inefficient on terms of strategy formation and this simply requires change in terms of their approach to this process. Therefore, some of the fundamentals of OD such as planning, interventions, and benchmarking among others can greatly improve this process and this may lead to positive outcomes such as better strategy formulation (Waddell, Creed, Cummings, & Worley, 2013).

In conclusion, there are other approaches that can be employed both at the outlet level as well as the firm level. However, one that covers both could provide a unifying solution that may shape the performance of the company positively. These must be well assessed as they are only recommendations. Nevertheless, the researcher has strived within the limits of the information provided to give industry approved solution models such as CPI and OD. These are tried and tested approaches and have continuously proven effective in tackling such problems. Therefore, the organisation, which seems to be in dire need of solutions to its current problems must consider the recommendations offered above. These may help it gain competitive advantage and possibly change its current predicament.

Risks and Rewards of Proposed Solution

As earlier mentioned the key problems that the client is facing are that of poor responsive strategy formulation that can be an attributable to stiff competition in the market. Therefore, the solutions will focus on this issue and find out the best way of ensuring that the new approach taken up is effective in addressing the problem at hand. These seem to focus on a revision of how the company carries out the strategy formulation process as well as identifying approaches that will help it deal with the issue of stiff completion. However, before doing so, that is pointing out and suggesting the proposed solutions to be implemented. It is important to look at the possible risks and rewards that they have. This is highly beneficial as it points the viability of the proposed solutions and can help in the decision-making process of whether or not to adopt them and if so what would be the appropriate way to go about this process. This section looks at the associated risks and rewards of the proposed solutions and provides in depth analysis and information on this matter.

One of the main solutions that has been pointed out to the client is that of revising the approach used in strategy formulation. This is a key factor considering that the company namely Burger King has implemented strategies that have adverse consequences on its performance. A prime example being that of lowering product prices to try and counter competition and in the process incurring a lawsuit from franchisees who showed that the approach was resulting in huge losses on their parts due to negative margins. Thus, one would easily conclude that the company, in its process of strategy formulation negated to look at the risks of the proposed approaches and in so doing ended up with negative outcomes. Max Wideman (2002) points out to a key process called Risk Assessment and Management for Projects (RAMP), which can be a beneficial factor when placed in strategy formulation as it quantifies risks and thus assists in decision-making.

Nevertheless, the purpose of this paper was look to at the possible risk and rewards when the company goes ahead to revise its strategy formulation process. It is imperative to first point out that the client is just one of the many franchisees that the company has and therefore, there is a huge risk when it comes to them proposing such a solution to the main company Burger King. In the past franchisees and business owners have been known to disagree on various aspect of strategy and operation, hence there is a possibility that proposing a revision of the strategy formulation process may not work out especially if the business itself Burger King and those who manage it disagree with this solution. However, on the other side if they do accept this solution, especially because it will be backed up with strong evidence as to why the revision should take place they should also benefit from certain rewards. It is clear that the current approach is ineffective considering the experienced results. Thus, a revision that would employ more contemporary approaches to this process such as increased stakeholder involvement and increased strategy evaluation will be effective in responding to the current challenges the company is facing.

Doing so would bring about the benefit of a more unified company and this as (Marken, 2000) points out will improve the performance of the company in many ways. Franchisees in this context can be viewed as employees and by using methods that improve employee performance, trust and overall cohesion the company through the strategy revision process will incur these benefits (Dunn, 2001). It should also be mentioned that the proposed solution does have an effect on how the company will address the issue of stiff competition in the market. This is a major challenge that Burger King is facing both at the franchisee level as well as at the company level. Therefore, a key benefit of revising their approach to strategy formulation is coming up with the effective plan that will help it address the current issue of stiff competition. For instance, if the company changes its approach to the pricing model but still finds a way to ensure franchisee margins remain stable the it can effectively compete with the other companies such as McDonalds who use price and product variety to outperform their counter parts.

However, the process of revising the current company strategies does also pose several risks. First, it is a time consuming process, hence the company must be being of this and understand the consequences that may come about. For example, they would have to engage in long sessions with external parties such as consultants and internal stakeholders such as franchisees and suppliers and this has the effect of consuming a lot of precious time that could be directed at other activities. Secondly, the process could be expensive considering that first it could disrupt normal business process as well as cost the company money when it comes to consultancy, renegotiation among other processes that will take place during the revision period. Thus, the solution as seen above does have its fair share of risks as well as reward. However, the researcher would like to point out that the rewards do seem to outweigh the possible risks mentioned. This is because a solution will still have to be formulated by the company and the one provided is highly viable. The client must understand that the key function of an entrepreneur is to minimize risk as per Kent (2001), and so focus on doing so by implementing the solution proposed.

Impact Assessment

Considering the problems and the proposed solutions for the client there are various possible impacts that may be experienced by the client. In the previous section, the consultant looked at the possible risks and it is from such risks that one is able to assess the possible impacts that the client will face. In most cases, the solutions should have a positive impact, however, there are possibilities that negative impacts will arise from this situation as well. In addition, the problems if they go unattended, all the possible impact will be negative. It is imperative to point out these facts before proceeding to carry out and impact assessment for the client. This section focuses on the matter and its objective is to point out using impact assessment techniques information concerning this issue to the client to make them aware.

Business Impact Analysis (BIA)

There are various factors to consider when performing this function and each is critical to the proper understanding of the possible implications of certain business decisions, changes, or actions. For instance, looking at the stakeholders involved in any business process is critical to identifying the possible impact to be felt by the change in business processes (Ready, n, d). In the case of the client, which is a Burger King franchisee the problem identified as well as the solutions proposed will have several possible impacts not only on this party but several other stakeholders that are involved. To identify the possible impacts, it is imperative to look at the problem as well as recommended solutions for the client. The problem as earlier mentioned by the researcher consists of two parts the first being an internal issue, while the second external. The internal issue consists of the fact that the strategy formulation process seems ineffective in the company and this seems to negatively affect business process as well as internal stakeholders such as the Franchisees to which the client belongs to. The external aspect of the problem is that the poor strategy formulation seems to negatively affect the company’s response to stiff competition from its counterparts. Clarifying this does, help in pointing out the possible impacts of the problem as well as the solution.

Starting with the Problem

It is obvious that if the company does not revise its strategy formulation process then there is a possibility of negative impacts on the company as well as its stakeholders. For instance, part of the problem is the lack of stakeholder consultation during the strategy formulation process (Hill, Jones, & Schilling, 2014). This is what went ahead to cause the lawsuit that existed between the company and its franchisees. Thus, a continuation of this problem will have a negative impact on the franchisee to company relationship. It will also worsen their situation and possibly lead to a decrease in its market share due to a poor response to the stiff competition by other firms such as McDonalds in the fast food industry. Narrowing down to the client, possible impacts include reduced earnings due to loss of customers to more competitive fast food brands, increased expenses as a result of reduced earnings and finally a possibility of closing down the outlet. Those are the possible impacts associated with the problem.

Possible Impacts

The next step is to also consider the possible impacts of the solutions if the client goes ahead to try to implement them. Under BIA, there are key business processes as well as stakeholders that must be looked at when carrying out this assessment (Ready, n, d). For instance, in the case of the client going ahead to propose to the main company a revision of the strategy formulation process creates two possible impacts. First possible impact takes place when the main company that is Burger King accepts this proposition on the account of the current approach being inefficient. This means improved strategy formulation practices such as more stakeholder involvement, increased evaluation and revision of strategies among other improved approaches (Torabi, Soufi, & Sahebjamnia, 2014). What will possibly happen when this takes place is a possible improvement of the company’s performance through better revenues, enhanced cohesiveness among stakeholders among other positive impacts (Hill, Jones, & Schilling, 2014). On the other hand, if the solution proposed to the main company is rejected then there is a possibility of negative impacts such as reduced cooperation between stakeholders, continued poor performance, loss of franchisees among many others.

Therefore, in consultancy process such as this, it is always important to present the client with the possible impacts as this helps them assess or weigh out their decision. This process must look at the proposed solution and its possible impacts to both processes and stakeholders with the latter being an important consideration (Family Impact Institute, n, d). The implementation of the solution will have many possible outcomes or impacts, however, if it will well-structured it should minimize negative outcomes while increasing positive results (Torabi, Soufi, & Sahebjamnia, 2014). For instance, examples of possible impacts include business process disruption, or delayed revenues (Ready, n, d). However, in this solution provided these negative factors are minimized as the revised strategy formulation and implementation process will look to cut down on these issues and the entire process will focus on avoiding these outcomes as much as possible. For instance, during this process it is only franchisees and maybe outlet managers that will be involved. Submission and ideas or views can be done online with possibly one or several meeting finalizing the process. Therefore, it is now up to the client to look at the possible outcomes of both the problem and solution and determine the way forward.

Understanding the Change Process

Organizational change though necessary is a complex process. For it to be carried out effectively, there are several factors that must be present. Considering the case of the client, namely the Burger King franchisee for the recommended solution to be implemented there, there has to be some form of change in the company processes as well as policies. The problem identified was the ineffectiveness in the current strategy formulation approach and the decision recommended to address was a revision of this to a much more effective method. Therefore, in the eventuality that this recommendation is accepted, one has to consider the fact that it will cause a change in the organization. Hence, for it to be fully accepted, it must ensure that the change process can be effectively carried out. This paper carries a reassessment and possible readjustment of the recommended solution on the basis of the anticipated organizational change process.

Reassessing the Solution

The core aspect of the solution proposed by the consultant was a revision of the strategy formulation process with key considerations to franchisee involvement in this process. This is because a significant part of the problem resulted from the lack of stakeholder participation. Therefore, with the organizational change process in mind, the researcher would like to point out that very little adjustment is required considering this solution. This can be supported by various organizational change factors. For example, the need for improvement in the company is important owing to the fact that intense competition is driving down company revenue as well as market share. In addition to this, organizations that effectively carry out change processes in most cases involve all the primary stakeholders in the process for this to be achieved (Kent, 2001). This is why such a solution was recommended. Stakeholder involvement will also increase the quality of strategy formulation and implementation and this makes the change process have higher chances of success. This demonstrates that the recommended solution is highly viable and requires a little adjustment.

Reassessing the Risks

Considering the risks that were highlighted by the consultant in the previous section and the issues that surround an organizational change process, there could be a few adjustments to made. For instance, one key factor pointed out in the organizational change presence is the requisite need for a proper plan (Clemmer, 2001). Therefore, a new risk arises here that the client should be informed about. This is the fact that if the company cannot come up with a good plan to implement the solution, then there is a high risk for adverse outcomes on the side of the company. An example could be finding out how to effectively implement stakeholder involvement in the organizational change process. Another risk is that of whether the change process and new approach can be fully implemented as well as be sustained in the company (Kent, 2001). If an ineffective implementation does occur then, there are several adverse outcomes to be experienced. Thus, reanalysing the possible risks in light of organization change process only adds new risks to the client.

Reassessing the Impact

Finally, on the issue of the possible impact that the company should experience, one item that had been brought up was the certain factors associated with organizational change. For instance, the client should be aware that all the stakeholders both primary and secondary will be affected by this process. Owing to this, there may be positive and negative outcomes depending on how the change process has an impact on a particular party. For example, organizational leaders may have to increase their commitment as this is a necessary factor for efficient company change (Clemmer, 2001). Another is the fact that a small period of turbulence in the company’s operations will be experienced during the change process. These are some of the adjustments to be factored in consideration of organizational change.

References

Berry, J. R. (2011). Management: A General Theory. Discoverer.