Nguyen Jack in the Box Pete Nguyen MT140 Purdue Global 1 Nguyen 2 Jack in the Box is a restaurant chain that offers standard fast-food fare at their 2,250 locations spread out between California, Texas, and 20 other states. Jack in the Box is open anywhere from 18 to 24 hours a day, depending on location, and is well known for pioneering the use of the drive-thru system. With such a large company, all levels of management at Jack in the Box have many different variables that they deal with on a daily basis. These variables range from new and different competitors, laws and regulations, and substitute products are to name a few. These variables are what additionally make up the company’s macroenvironment, competitive environment, and internal environment. An environment, in regards to the business world, can be defined as any relevant forces that can influence a company but may not be a part of the organization (Bateman, 2019). An environment can be broken down into three different categories: the macroenvironment, the competitive environment, and the internal environment. The macroenvironment consists of the general factors that can affect all organizations such as laws and regulations, economic conditions, technology, demographics and social values (Bateman, 2019); variables within the macroenvironment may be uncontrollable. The competitive environment is the immediate variables that a company faces. Variables within the competitive environment consist of rivals, new and upcoming competitors, customers, substitute services or products, and suppliers (Bateman, 2019). The third environment from a business organizational standpoint, is the internal environment. The internal environment is the relevant forces within the company, such as the employees, manages, resources, and the culture within the organization (Bateman, 2019). Through these three environments, one can see what kind of industry a company is in, the competitors within that field, and overall how a company is ran and how successful a company is. Nguyen 3 Due to the oversaturated fast-food industry, Jack in the Box’s different environments are hyper competitive and complex. The most important macroenvironment factors for Jack in the Box, are laws and regulations, the economy, and technology. As one of the top fast-food chains in the United States, Jack in the box employs around 5,200 whose work is regulated by the Occupational Safety and Health Administration (OSHA) (Hoovers, 2020). Laws and regulation standards set by the Food and Drug Agency (FDA) and the Department of Agriculture (USDA) are extremely important for Jack in the Box to abide to considering the company and its employees are handling food. Jack in the Box’s success is heavily reliant on the general economy and how well the company markets through ever advancing technology. Technology for companies in the food industry, like Jack in the Box, is used largely for marketing. Advertising on television, radio, print media, digital, and social media, Jack in the Box and corporate partners spend a budget of $20 million. With an estimated revenue of $950.1 million in 2019, Jack in the Box, like any other for-profit business, can be seen to rely heavily on how well the general economy is going. With more money in people’s hands the more likely they will spend it on fastfood chains. Being in the food industry there are hundreds, if not thousands of competitors. Jack in the Box’s competitive environment is made up of house-hold names such as McDonalds Corporation, Burger King Worldwide INC, and Chick-Fil-A (Hoovers, 2020). Along with these house-hold fast-food chains, Jack in the Box also competes with restaurants for customers. To set themselves apart Jack in the Box offers a more diverse menu including items such as breakfast foods, tacos, and salads. Jack in the Box also has an edge on competitors that are not open 18 to 24 hours a day, as Jack in the Box is, depending on location. These variables make up Jack in the Nguyen 4 Box’s current competitive environment, but like any other industry new and upcoming fast-food chains and restaurants will always be an imposing threat. To be successful organizations and businesses in any industry have to be aware of their environments and work towards distinguishing themselves from competitors. Jack in the Box has been open since 1951 and has consistently been a top competitor since then, first being a pioneer with the drive-thru concept and now offering a diverse menu available 18 to 24 hours a day, depending on location. Jack in the Box over the years has proven its self to remain competitive within its environments through abiding to laws and regulations while also pioneering new and fresh ideas. Nguyen References Bateman, T. (2019). M: Management. [Purdue University Global Bookshelf]. Retrieved from https://purdueuniversityglobal.vitalsource.com/#/books/9781260485301/ Jack in the box inc. (2020). (). Fort Mill: Mergent. Retrieved from ProQuest Central Retrieved from https://libauth.purdueglobal.edu/login?url=https://www-proquestcom.libauth.purdueglobal.edu/reports/jack-box-inc/docview/1860762234/se2?accountid=34544 5
