Strategic Management
For an industry of your choice identify and analyze the most important drivers and barriers affecting the development of your industry around the world. Use appropriate, researched models and examples to explain your ideas.FAST FOOD INDUSTRY Name: Zaw Win Hlaing ID: 16443361 Batch: BAM-02-2016, Cohort-6Module: Strategic Management IntroductionStrategic Management is the highest level of management activity generally performed by the chief executive officer (CEO) of an organization. It is used to specify organization’s objectives by planning and developing policies to reach the organization’s goals. Apart from setting objectives, strategic management helps to analyze the competitive environment, analyze the internal organization, evaluates strategies. Strategic management helps identify the opportunities and threats that an organization faces. Mainly, it helps to compare the organization to its competitors. It is very important for an organization especially the one that is operating on a high and competitive level. Strategic management not only helps a company to obtain high profit but also to keep the company running for a long period of time, maintaining the standard or even improving by differentiating the different barriers and overcome with the drivers they strategically constructed.
Fast food has changed the lifestyle of people around the world. Being the food, which can be grabbed and ate easily, it has saved time for people all around the world. The fast food industry has growth rapidly in the 20th century having the annual growth of 2.7% in the 21st century with the revenue over $227 billion dollars (IBISworld, 2016). The biggest fast food chain companies are expanding as much as they can by giving franchise but those franchises have to work on the same structure. They face different barriers due to the differences in cultural, policies, economic background of a country or even the taste of food. To improve and to influence with their food, fast food companies such as McDonald’s, KFC and subway have overcome those barriers and use their tools as drivers to become what they have become today.Using CAGE distance framework and YIP model of drivers of globalization, the company can identify these barriers and drivers. CAGE Distance FrameworkCAGE distance framework is a tool useful to identify and access the impact of distance on different countries. Managers can identify and access on cultural distance, administrative distance, geographical distance, and economical distance (Kapil, 2010). Automobile industry will have to operate different in different countries due to the different aspects and dimensions.