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Carl's Jr. : Strategic Management Process

Essay by   •  February 11, 2019  •  Essay  •  3,362 Words (14 Pages)  •  7 Views

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1.Introduction

Carl's Jr. is an American-based fast food restaurant chain operated by CKE Restaurants Holdings, Inc., with locations primarily in the Western and Southwestern United States which founded on July 17,1941 (75 years ago).

That is in 1941, Carl Karcher and his wife founded the predecessor of Carl’s Jr. In 1945 Karchers moved the short distance to Anaheim, California, and opened their first full-service restaurant, Carl's Drive-In Barbeque and the restaurant became successful. In 1956, Carl Karcher expanded his business by opening the first two Carl's Jr. restaurants in Anaheim and Brea. In 1960, 24 restaurant has opened in Southern California. Since now, Carl’s Jr already expended their business at these county which is Australia, Brazil, China, Japan, Mexico, Canada, Indonesia, Malaysia, Vietnam, Philippines, Singapore, Thailand, New Zealand and other countries also the total number of locations are 1385.

In 2016, Entrepreneur listed Carl's Jr. as #54 on their Top Franchise 500 list, which ranks the overall financial strength, stability, and growth rate for the top 500 franchisees in any field across the United States. Carl,s Jr has a total of 3,664 franchised or company-operated restaurants in 44 states and 38 foreign countries and U.S. Territories.

2. Planning and Strategic Management

2.1 Basic strategies used to respond to uncertainty

Carl’s Jr. is a burger restaurant that acts as a prospector when responding to uncertainty. The definition for prospector is a company which focuses on developing new markets or services and in seeking out new markets, rather than waiting for things to happen. Carl’s Jr. has produced many types of burgers to satisfy consumer’s different needs. Below are some list of the top selling burgers :

1) Famous Star

2) Guacamole Bacon Angus Burger

3) Low Carb Six Dollar Burger

4) Turkey Burgers

5) Portobello Mushroom Burger

6) Western Bacon Cheeseburger

Hand scooped ice cream shake and malts had been introduced by the company in the year 2005 as a new product. The product is known as an ideal complement to the charbroiled burgers of the restaurant. This combination is known as a method to develop the quality of the fast food restaurant.

In year 2014, there was strong competition between the fast food companies. The company had created ‘Big Chicken Filet Sandwich’ that has bigger chicken meat compared to burgers from other fast food restaurants . Moreover, promotion was made and campaigns were launched to prove that the company’s bread is fresh-baked.

The thick burger patty which contains a variety of ingredients with high calories was also created by the company too. The purpose for creating the thick burger patty is to appeal to young guys and also construction workers as the protein can provide energy for them because this group of people burn a lot of calories in their daily life. By creating the thick burger patty, it can bring convenience to the group and also provide enough protein and energy for them.

As a way to seek new market, Carl’s Jr had chosen to expand its business worldwide. As a result, as of 2016, a total of 3664 franchised restaurants have been operating in 38 foreign countries.

2.2 Mission and Vision

At Carl’s Jr, success for each of our employees is possible with good ideas, hard work and determination – all traits we look for when we interview people like you. If hired, you’ll bring a great work ethic as you go about your daily job and you can expect a menu of great tasting choices you’ll be proud to serve. That combo of good people serving great food makes the Carl’s Jr experience one that keeps our customers coming back for more.

Carl’s Jr’s mission is to offer delicious and fantastic food, meeting the highest standards of quality, health and fresh products. They provide our guests with excellent service by demonstrating friendly and professional work.

Carl’s Jr is committed to providing every employee with a workplace that offers respect, training and the opportunity to succeed. Our company is committed to a policy of equal employment opportunity.

Carl’s Jr’s vision is to be the most delicious fast-food company in the world, and to provide outstanding service. Carl’s Jr. Restaurants LLC was built on the fundamental belief that success is possible with vision, hard work, and determination. Each year, we award thousands of dollars in college scholarships that recognize both academic excellence and community leadership. We work closely with food banks and other groups to support families in need. Our work with local charities allows us to witness firsthand the positive impact of our endeavors.

2.3 SWOT Analysis

Strengths

Among the strengths of Carl’s Jr. as a business is it’s wide variety of products offered in all categories. While the company specializes in burgers, they offer many other products in their restaurants. Some examples are a variety of breakfast foods, desserts, salads, sandwiches and side dishes. This large range of products can satisfy a larger number of customers, as well as increasing the existing loyalty and likability of the brand. The fact that they chose to not only focus on burgers but also on other food items can help them capture new audiences and expand into previously untapped market niches.

Another strength is the brand’s presence with 3664 franchised restaurants that have been operating in 38 foreign countries. This eliminates the need for middlemen as they can sell their products directly through their restaurant. There is also a division of risk. If any of the restaurant’s multiple locations performs poorly in sales, it can be compensated from the income of the sales earned by their other locations.

Carl’s Jr also has the advantage of being a subsidiary of a well-known company such as CKE Restaurants, they have the advantage of and increased brand value due to the successful company image. Being a subsidiary company can also be beneficial as the parent company provides the subsidiary company with buying power, research and development funds, marketing money and know-how, employees, technical and other features which otherwise it could not afford or accomplish alone.

Carl’s

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