Essay About Local Growth And Growth Potential

Strategic Management Case Analysis Guide
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Strategic Management Case Analysis Guide
Introduction
Situation synopsis:
No more local growth for NFY
Growth Potential in China + India
3 days to make decision
Problem statement:
What is the growth strategy for NFY + SSBC that allows the brands to expand while maintaining their brand integrity
Companys strategy:
Locations in top tier mall
Premium burger + fries concept
Focus on quality
Slow and steady progress
External Analvsis
Industry Structure: (Fast Food)
Franchising as method to expand
Focus on fast service
Growth rate Western world – Slow result of saturation
Developing World – potential for growth
Elements of the demand side of the market
Developed world
Fast, quick service
Affordable price
Quality
Healthy choice
Developing world
Western Experience
Brand Image
Taste
Industry Directions and trends: In which direction is the industry headed?
What are the causes?
Key success Factors:
Brand Image
Low cost
Good relationship with franchisee
Differentiation
Which aspects of external and operations are most crucial?
Getting quality supplies at right price
Franchisee who understand the concept of the owners
Strategic Issues in the Industry
Opportunities
Growth potential in developing world
Demand for western experience
Developed world focus on healthy eating
Threats
Getting similar quality supplies to every franchise all over the world
Market downturn
Difference in taste (India no beef
Government
Barga Sup – Mod
Barg Buyer – High
Threat Substitution : low – mod
What are the degrees of risk and uncertainty in the industry
Might not be suitable to
Competitive forces: What are the fuorces driving competition in the industry?
Five forces model
What are the strategies, positions, competitive strengths of markets leaders
Affordable price
Wendys Quality
Taco- Differentiation
Convenience
Brand recognition
Changing menu to local taste
Advertising
Internal Analysis
Financial Analysis: – steady cash flow
Loan from banks Finance through leverage
What is its profitability
22% for the company owned store (High)
35 % poutine + Fries
5 – 7 Stores need
3 need
64 mn total sales
Bad management by Franchise will create bad image for the whole franchise