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Business Report For Hungry Jacks Franchise


Task: The Hungry Jacks franchise wants to launch in India ( Mumbai ). Discuss and compare the differences in business models in Australia and India?


Globalization ushers the path to various successful organizations to consider overseas expansion of their businesses. Going overseas for business can be done only by identifying best and appropriate mode to enter into the foreign land to perform its activity. In this report, the emphasis is on necessary and crucial aspects or strategies to be carried out for the primary stage while planning the operational business activities overseas. For international business, one of the crucial factors that need to be primarily taken into account for is an investment. If proper strategies have been made then there are greater possibilities that a company’s performance can go higher while performing operations. This report is specially made for Hungry Jacks franchise who has offered to open a franchise in India. While offering the plan, Hungry Jacks franchise is supposed to identify the basic things like cultural differences, challenges that a company can face while setting up a business of food items and can affect their sales that are offered to the customers. Akin to that, a proper survey is also required to understand the political factors that have a direct impact on the sales. These surveys can assist better in making policies that can serve in a better way to its customers (Beamish, and Kachra, 2004).

About the Company
Hungry Jacks is situated in Australia. It is a private limited company. Hungry Jacks specialization is in fast food services and it holds the franchise of the Burger King. In Australia, Hungry Jacks has its customer from various parts of the country and it offers best quality burgers to the clients. To expand the business, the company gives licenses to the operators who are new from national and international markets. In this course, the company makes sure that the quality set by the company is met by Hungry Jacks franchise. Presently, in 300 different locations, Hungry Jacks franchise is offering or successfully serving its services to the customers. Now its management wishes to open its stores in India and offering to cater its services in India by opening new fast food stores. For this matter, Hungry Jacks franchise in India appears to be an eligible company to offer its franchise in India. In this regard, the management of Hungry Jacks franchise has to assess overall investment and methodology to take place to perform these activities in setting up business. It is a fact that India is considered one of the fastest developing countries across the world. India is the choice of many countries for expanding their businesses because of its steady economic condition and its people who welcome and always eager to taste varied type of food. (Goldman, 2007).

Business Culture in India
India is amongst those developing countries whose customers have highest purchasing power parity (PPP). It is imperative to study the business culture and processes, which will play a vital role in the negotiations. This is the most crucial factor where Hungry Jacks franchise can put, right expectations and be in the agreement to perform their business operations as per the decided grounded rules. In business culture, hierarchy holds the significant role. The roles of the managers and others are well defined. Their roles are decided after an extensive analysis in the meetings with the delegates. All the decisions related to business are well taken by top management and the delegates of Hungry Jacks, who are assigned to do it. A proper draft of strategies should be made while doing any business with any Indian company so that long lasting and constructive relations can be maintained. This is a part of the Indian business culture. In any business where two parties are involved trust plays a crucial role that assists better in negotiating in any lucrative deal. A proper relationship and a good operational deal must be developed and executed. (Voreacos, 2011).

Negotiation is a process that takes place between two or more parties having own objectives, needs and reaching to common ground by agreeing with mutual consent. If there is no trust gained by any of the party then business dealings could slow down the pace as it was anticipated. It is must that in all critical business decision-making, all the top management should be present. It is important for Hungry Jacks to know that most of the Indian companies do not enter into any sort of business agreement just on the basis of the statistical or pragmatic data. The establishment also acts as per the instinct and faith, they reach a decision the regarding benefits or success of the offer made on the basis of the trust and mutual confidence on each other. It is highly advisable to evade any kind of tactics, which is associated with pressure. This can severely affect the negotiation process. During the conversation, it is better to stay prepared in order to handle criticism and disagreements (Brouthers, & Werner, 2000).

Indian companies’ delegates choose to pursue any business deal by following a formal method of negotiation to finalize the business terms. A formal method of business meetings involves a formal handshake, addressing another party by title Mr. and Ms. During planning process of setting up a business these are considered as vital parts of the cultural aspect. Every small to big details related to the contract are supposed to be in a detailed and structured form. It is done in such a manner so that performance of the business is not adversely affected due to any vagueness left in the contract. For any sort of communication, the English language is preferred over any other language. For carrying out any business activity all, the experts and professionals are supposed to be formal and polite. There are various factors involved in the contract that are explained in length. It helps in the decision-making process and eliminates any kind of confusion that can hamper the decision (Brouthers, and Bamossy, 2006).

The Political and Economic Situation of the Country
For the betterment of the economic condition of the country since 1991, the government has been working on and implementing the various strategies. During this process, various rules were regularized that were related to international trading operations. The purpose behind this was to attract foreign investors in the country. Along with that, the country started working on improvising infrastructure condition as it also plays an important feature in attracting foreign investors For fast transportation proper link has been made between roadways and waterways. This also helped in getting the foreign investment that increased the income of the educated employees of the country. Over the time there is a vast improvement in country’s education system which has resulted in providing well- qualified people to get a job with good earning. It has increased the rate of savings of the individual. In India, the buyers of all the age group are keen in purchasing products from international companies. This is also the reason for the interest behind opening Hungry Jacks franchise in the Indian market. Fast food like burgers, pizzas, pasta etc. has become so popular amongst the youngsters of the country. There are other reasons as well that of benefits that are involved in carrying out business operations in India and they are discussed as below:-

  • Labour abundant market (Bryman & Bell, 2003).
  • The rate of investment to set-up a business is relatively low. The fund required to control the operational expenses is low.
  • Buyers of the country are keen to buy new and improved products.

The global companies, who are looking for better profit margin without increasing the operational costs, consider India as a preferred market because of its economics. Other than, this India is full of the market, which welcomes different and new eatable products. It is very easy for an international company to expand its business in the country by adopting the strategies formed and implemented by the country’s authorities. To attract various foreign investors international investment has de-regularized many rules. This process has facilitated an exponential growth in the employment, which has always been an area of concern for them. By following such methods and processes, it was ensured that the country and its people are enabled to deal with the challenges related to development. The whole process was kept quite easy and simple to open any company in the country. There were some changes that got implemented by the country are as follows:-

  • With the help of online, there is easy and quick accessibility to the required information.
  • In the country, the process of registration of a new company is implied with less paperwork (Canabal and White, 2008)
  • The biggest concern of regularizing the taxation process is resolved. It is a big relief, for the companies intend to start trade with the country.
  • Regularizing diverse markets is an essential factor to attract new investors from varied markets, is successfully done.
  • A clear policy of maintaining transparency with the foreign company while sharing the related information is maintained.

Many countries get attracted towards India for expanding their businesses because of its high population rate. (Rava, 2011)

Role of Political Parties
In the country, there are various political parties present.
The political parties wish to formulate the strategies to make and implement the developmental plan for the nation. The focus of the ruling and the opposition parties are in making such rules that can attract more and more foreign investors. They try to reach a consensus that is needed for the implementation of the plan. The plan with the changes required for the development and growth of the company (Chen, 2007).

Following plans are to be ensured by the political parties ;

  • Improvement in the transportation facility of the country
  • Required changes for the betterment of the telecommunication system in the country
  • To attract foreign investors, analyze the existing challenges in the present rules

Changes with the Rules
There are some changes made by federal authorities are as follows:-

  1. . Introducing new rules or changes in the existing ones to enhance the labor laws.
  2. Inflation rates should be controlled to gain the confidence of foreign investors so that their performance would not get affected due to rapid variation in inflation rates.
  3. Identify the shortcomings that could affect the performance of the company.

Along with that, make proper strategies by which such challenges can overcome.

Business System
Hungry Jacks is a successful brand in Australia that is successfully offering quality food to its customers. It is one of the top brands in fast food services. Hungry Jacks management focuses on analyzing and developing strategies and policies as per Indian market with the intent to cater the best services. After analyzing the related factors, changes are made by Hungry Jacks franchise management are as follows:-

  • Labor market
  • Availability of resources including competent labs and infrastructure
  • Feasible rules and regulations to promote and cooperate foreign investors in carrying out their business operations.

Along with this, shortcomings related to policies making are also analyzed. The policies are made so that such issues can be identified which can affect the performance of Hungry Jacks franchise. Some of the major factors that must be analyzed by Hungry Jacks franchise are the leadership style and the management process to be adopted to attract the clients (Child, 2006).

Leadership Style
In India, effective leadership plays a vital role in working out the business plans effectively. The appropriate leadership style adopted by the mangers of Hungry Jacks franchise will boost the performance and production of the company. The additional responsibilities imposed on the mangers of Hungry Jacks franchise may help in encouraging the employees to perform to the best of their capacity and capabilities. The participative leadership style is considered the best leadership style through which the mangers of Hungry Jacks franchise can successfully motivate the employees to perform exceptionally in the workplace. This makes it easier for the managers to increase the productivity and meet the targets in the most effective manner. This also reduces the chances of failure or mistakes in the project that can affect the productivity of Hungry Jacks franchise. A serious effort should be made, in order to ensure an increase in the quality of the services, which are to be offered to the customers of Hungry Jacks franchise (Child &Tse., 2001).

HRM Policies
All the labor laws in India are timely reviewed and regularized. Such labor laws ensure proper working environment and better work opportunities for the workers of the company. HRM policies are made in relation to employees’ benefit. Hungry Jacks franchise must adopt such welfare policies to encourage workers to work in the conducive environment. There is the difference in cultural practices of Australia comparatively to India. It is essential for Hungry Jacks to carry out a proper study in this area as well. This is one of the prominent reasons; the company identifies the shortcomings in concern with the Human Resource Management and makes the policies that could serve the needs of employees. For smooth functioning, Hungry Jacks franchise should have clear communication system by which required changes can be communicated well to its workers and other people who are associated with the company. This is in the betterment of Hungry Jacks franchise to adopt the best strategies, which enables the company to ensure the best use of the available resources, information, and knowledge that can boost the productivity (Clegg, Kornberger, and Pitsis, 2008).

Introducing the Best Change Management System
The success of Hungry Jacks franchise depends upon the policies and strategies that are adopted by the management. The principles related to the change management system should be analyzed. The changes are required to introduce so that production can be improved and attract clients. There are several other fast food joints that successfully carrying out their operations within the country. During this process, it is important to properly analyze the cultural facets and other factors. The management of Hungry Jacks has to come up with the suggestion of introducing an entirely new way of the processing method of placing an order. This method also includes getting feedback about the food quality and services being offered to the customers. Cultural factors are very crucial and should be closely analyzed and studied to understand the belief systems of the customers. It will facilitate the management of Hungry Jacks franchise to formulate strategies to introduce the products that are in accordance with their belief system. This will help Hungry Jacks franchise in attracting a maximum number of customers. This study will also assist in adopting and implementing innovative strategies that can ensure the stronghold in the market. This is an exhaustive and lengthy process that involves various steps and regular analyses of these steps. It assists the management in developing and adopting the best strategies that are in the favor of the company to boost its sales. The management is supposed to communicate the formulated strategies to the various members. It will help in identifying the challenges, which can affect the execution of these policies (Demirbaga, Glaister, and Tatoglu, 2007).

An analysis of such factors facilitates the authorities to reach an appropriate decision concerning the implementation of the strategies to carry out business successfully on the foreign land. It is wise for Hungry Jacks franchise to have a backup plan, in case of need; as it will let the company have a read to implement new strategies in case of failure of the existing ones.

Finance System
It is must to identify the present financial system followed in India. For business expansion, funds are required and only this can assist in preparing best policies so that funds can be raised for the growth of the business. For continuous improvement of business activities, federal authorities make decisions that can have a good impact on foreign investment and other concerned aspects in the interest of the foreign company. RBI has taken some decisions that are discussed below:-

  • Determination of interest rates
  • Promoting foreign business operations by regulating strategies and policies
  • Formulating policies and strategies to decide living taxes or collecting taxes from foreign investments
  • Ensuring the accurate amount is remitted to the clients (Filatotchev et al., 2007).

It is essential to analyze what fluctuations are taking place in foreign exchange rates. This is done to ensure the best interest of the company and people associated with it. There are rules, which are simple to follow and help in attaining changes that are required to attract international investors in the country. The objective of identifying and analyzing the rules and regulations is to ensure which different aspects can arise that have impacts over the proposal offered to the country. As per the Apex banks drafts, there are various nationalized banks that operate according to that. During this process, the required changes that are occurred by the company is prepared and well- communicated to the related people and banks. (Ferraro and Briody, 2012).

Reserve bank of Australia is an apex bank of Australia. The apex bank of Australia is formed in 1960, named the Reserve Bank of Australia. Since its inception, it is working in the direction of formulating beneficial policies, which can improve and enhance the performance of the country’s financial sectors. In the different tasks performed by the bank, few of the major ones are the issuance of currency notes, analysis of transaction between the banks, etc. These functions help in the formulation of the best policies for the betterment of the financial sector. The other functions performed by the bank are :

  1. Monitoring flow of money (Forsgren, 2008)
  2. Formulating the best policies for banking

The activities carried out by both the countries’ apex banks are alike in nature or action. This assists the top management to prepare the policies that can affect the performance of the company.

Law Differences
There are differences in the legal system of Australian and Indian policies. Australian legal system is comparatively strict to India. The Indian government has enforced various rules on international companies to carry out any operational activities in India. India develops policies and implements them in accordance with improvising the performance and growth of the company. The company follows the process of continual changes. The company ensures to make appropriate strategies for growing it better in all business activities. Along with that, timely review of rules and regulations is done to make sure company is on the right track of having transparency in process and rules to carry out business. Both the parties should enter into legal contracts to ensure benefits of both the companies and people associated with them. Involvement of law in any venture motivates each party to work in good faith and follow a best practice that can enrich their long-lasting professional association. The RBI plays a vital role, as companies have to abide by the policies made by the bank. There are following steps of laws that are supposed to be followed:-

  1. Funds transfer out of the country
  2. Tax payment (Gaspar, 2014)
  3. Declaration of tax and audits

If any change is made in the process that needs to be well- intimated to the top authorities. This facilitates concerned authorities to analyze the actual situation and performance of the company. This also helps the authority to keep an eye on activities that do not involve any illegal practice, which could adversely affect the performance of the company.

Australia also makes sure that company is following the proper course of action to match the criteria of the foreign company. In this process there are rules, the methods or steps to be followed, are well- stated for entering into any contract with the international company. It is must to reveal clearly the profits and earnings in illustrated form. Along with that, the company is supposed to provide and get correct information with the concerned authorities and people who are attached to them.

Ethical Practices
In the business world, ethics is a vital part of the better function of it. It should be ensured that everyone or each party is following ethical practices by sharing correct information so that it does not affect productivity. Let us discuss ethical practices in detail:-

  1. Exchange of right information.
  2. To keep an eye on the overall performance of the company it is necessary to Identify and analyze the changes.
  3. Analyze what kind of challenges can occur when it comes to customer satisfaction and serving the best quality.

It should be ensured whether the countries that are entering into the deal have same ethical practices or not. This is done to make sure proper ways are being adopted and followed for accurate sharing of information and smallest details related to business. It is essential to have a proper and correct exchange of details with the clients and all the authorities. The major area of concern of authorities is to serve its customers at its best. For which management makes and follows top strategies that can assist in rendering the best services to them (Hanif, 2011).

Hungry Jacks franchise should make and implement the right type of strategies through which it can expand its business overseas. India is the world’s one of the fastest developing countries having the steady economic condition. There are certain things that to be identified and ensured before entering into the foreign land like what kind of challenges are involved, what strategies to be followed etc. Proper law and process must be followed by Hungry Jacks franchise during the implementation of the policies, strategies etc. Every country has its own set of rules, policies and these must be analyzed much before entering into any such type of venture in the international market.


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