The Five Guys Burgers and Fries has survived the recent recession and even prospered because of its philosophy that makes it outstanding from the other fast foods. Foremost, Five Guys has concentrated on food which gives it competitive advantage over others. More specifically, it has stuck to its old model of producing only fries and burgers enabling it specialize and perfect in that concern. The meat used is often lean and fresh. This makes the product the best for consumption and a favourite among customers.
The fast food determine the price of the burgers according to the ingredients used in production. This enables them cost their products fairly in a balance for the customers and the business interests. In that context, it similarly uses the demand and supply in the market for a particular product to vary the prices paid to the suppliers. For the products with high demand, it offers a higher price for the products with lower demand get lower prices. The company is committed to an ethical and social practise that is cognizant of the business interests without sacrificing fundamental ethical norms and practices. In that regard, their prices are often fair and their products fresh and healthy for human consumption. Five Guys is committed not to sacrifice the community interests in preference for pursuing profits.
It is instructive to note that the success of the Five Guys can be attributed to its philosophical foundation based on ethics and social practises, its commitment and dedication to serve in the food industry assuming a specialization in food products only and its holistic management that is premised on modern managerial theory and practise. On the overall, it ought to be appreciated that the food industry falls under the necessities. In that vein, the industry does not suffer from the dynamics of the market such as recessions or booms as the demand for food is often assured and high. This has cushioned Five Guys from any potential recession effects in the market.
The private enterprise systems operates on the premise of free entry and exit and perfect competition. In this system, business have had the pressure of performance through strategic decision making and implementation of processes. Some of the key drivers of change include the increased use of scientific models and techniques in operation, the highly empowered and informed employee belonging to the Y generation of employees and the increased ethical awareness of the government and the communities consequently aggressively demanding accountability and transparency. However, even with the increased competition, there are a number of ethical and social responsibilities placed on the businesses. Some of the ethical responsibilities include the need for accountability, transparency and fair play in the operations of businesses. In addition, regulators and governments have been compelled to ensure that business operations are not conducted contrary to the community and public interests. In that vein, health and safety standards have been given preference over pursuit of profits.
Success in modern business environment requires a number of factors including strategic decision making, modern scientific models of analysis and applications such as external competition analysis, competition analytics, among others and the practise of modern managerial theory such as just in time model, lean and flatter hierarchies, open door policy, among others. The market structures in a free enterprise system include the oligopolies, monopolies, monopolistic market structures. The differences in this structure relate to the free entry and exit and the knowledge level of the suppliers and buyers.
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