We are going to be the biggest burger chain in the world MAX® (image: Max Burgers 2019) BUS30024: Advanced Innovative Business Practice Max Burgers Assessment 4 - Report Team A Submission 1 1 J
Stefania Costa 102337991 Aaron Smith 101193707 EXECUTIVE SUMMARY Adam Jory 100841856 Shantell Soars 101144433 Kirsty Mason 101029187 Kirsten Taylor 4936620 Max Burgers (Max) is Sweden's most profitable restaurant business, generating an annual turnover of 220 million euro each year. The still family-owned restaurant chain consistently outperforms McDonald's and Burger King in Sweden, Norway and now the UAE and currently operates 120 franchise businesses within these markets. They are a premium fast food offering that considers health and sustainability as core elements of their reason to be. The purpose of this report is to 1) consider if Max can achieve the same commercial success in the Australian market and 2) provide market research, financial analysis and general information for investors in order to raise capital for a pilot store slated for opening in Melbourne. The study has consisted of an analysis of management tools, marketing and financial information to draw its conclusion. The initial business justification was based on a Porters, PESTEL and SWOT analysis of Max key strengths and weakness, specific to the Australian Market. The second consideration was a detailed marketing analysis, where the market position was compared and contrasted to demographics, potential and existing competitors, in-depth analysis of the product offerings and culminating in the design of a successful launch strategy. Finally, the critical financials of the business have been analysed to demonstrate profitability for the first five years of operation. Data was sourced from a variety of industry research reports, census data and freely available market research. This data and analysis has been used to assess commercial viability and concludes that if Max was to open in Melbourne that ultimately, the elements exist for a successful investment. Financial analysis suggests an ROI of 66.45% and the initial 880K investment be recouped in five years. The report also indicates that there is scope to open a second store in the second year of trading due to positive growth 2.2% year on year on the initial investment. 2 J
Several recommendations have been made concerning the opening of the first Australian store. It has identified that the business must provide for the target millennial demographic who are conscious of health and community and that it must be proactive in the digital space. Marketing using social media needs to take a considered approach and strategy should account for disruptive technologies that are increasingly important to the overall success of any business. TABLE OF CONTENTS BUSINESS DESCRIPTION. 5 JUSTIFICATION OF BUSINESS CHOICE AND SOCIAL IMPACT 5 PORTERS FIVE FORCES 6 PESTEL ANALYSIS 8 SWOT ANALYSIS. 10 PROPOSED STRATEGY AND JUSTIFICATION. 10 COMPETITOR ANALYSIS. 12 MARKET POTENTIAL AND MARKETING MIX STRATEGY 15 4Ps 19 LAUNCH STRATEGY 21 PITCH OF PROFITABILITY 23 STAKEHOLDER CHARTER 28 CONCLUSION. 31 REFERENCES. 32 APPENDIX 1 - PORTERS 36 APPENDIX 2 - PESTEL 37