MT140 Introduction to Management
Companies have many environments they are part of. Companies have many things to worry about in order to stay competitive in the marketplace where they seek to make money and conduct business. Not only does the company have its face as a company that deals with the greater citizenry that are potential clients, but their employees also act (whether knowingly or unknowingly) as representatives of the company when they are out in public wearing clothing that identifies them as members of that organization. One of the most competitive markets is fast food. In Texas, a local fast food chain called Whataburger Restaurants, LLC navigates the competitive field so that it remains a Texas favorite with the white and orange roof. Whataburger Restaurants, LLC is a regional fast food chain with “800 outlets in Texas and about 10 other states in the South and Southwest” (Whataburger restaurants LLC, 2019).
The fast food industry is one of the most competitive industries in this country. They all vie for the patronage of consumers who are looking for a place to get quality food quickly and for a low price. Whataburger Restaurants competes with all other quick-service places in the country. Having many competitors makes for an unattractive competitive environment (Bateman, 2017). The top competitors for Whataburger Restaurants, according to Hoover’s Company Records are national chains that aggregate their sales from across the entire country. McDonald’s, Sonic, Jack-in-the-Box, Burger King, and Wendy’s are fast-food chains that offer similar food products for comparable prices. Other companies like Chick-fil-A, Church’s Chicken, Popeye’s, and Raising Cain’s Chicken Fingers are competitors. However, these companies specialize in fried chicken, rather than hamburgers.
In order to keep up with the competition, Whataburger Restaurants must reexamine their menu from time to time. They do this to attract customers who might substitute an eating option from home. When people consider options for lunch or dinner and sought out healthier options, the company branched out from their staples of hamburgers and French fries. Whataburger offers a variety of hamburgers, chicken burgers and strips, and now salads. Their company slogan, regarding their food is: “just like you like it (Taylor, 2017)”. They allow for their customers to customize almost everything about their hamburger from the standard: mustard, lettuce, tomato, pickles, and onions to adding cheese (four varieties), (grilled) jalapenos, mushrooms, or avocado. They capitalize on the desire of their potential customers have for a delicious meal, so they can save the lunch they brought from home in favor of a hot and fresh hamburger, chicken burger, or salad.
The macroenvironment that Whataburger Restaurants belongs to deals with many different segments of law and regulations. As a business, it must function within the laws of the business world. This involves paying taxes of various kinds: payroll, business, sales, healthcare, etc. These are paid to the city, county, state and federal governments. When laws changed most recently about the placing calorie counts about their food items on the menu boards, Whataburger Restaurants had to spend an enormous amount of money to comply with the laws.
Other regulations that the company must comply with involves health codes. These codes are designed protect the customers from eating at an establishment that is likely to cause illnesses. The results of the inspection by the health inspector are available upon request in each location. Employees are trained in how to maintain cleanliness of the public areas as well as the food-preparation areas. A food-service company that does not follow these regulations faces heavy fines and having their businesses closed until they meet the standards.
The combination of factors having to do with the business and health code regulations can be large barriers to entry for a quick-service fast food company like Whataburger Restaurants. In addition to those regulations, overcoming the competition through quality and force of will on the part of Whataburger has made it a force to be reckoned with in the American South and Southwest. It remains a Texas treasure because it has largely by “sticking to what it does best and remaining a folksy brand that caters to working, practical peoples (Whataburger Restaurants, LLC, 2019).”
Bateman, T., Snell, S., Konopaske, R. (02/2017). M: Management, 5th Edition [VitalSource Bookshelf version]. Retrieved from vbk://1260149749
Taylor, K. (2017, June 10). A regional cult favorite that most Americans have never heard of is now the most popular ‘better burger’ chain in the US. Retrieved October 22, 2019, from https://www.businessinsider.com/whataburger-most-popular-better-burger-chain-2017-6.