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Introduction
The phrase Small and medium enterprises is used to refer to those business organizations with certain limits of labour turnover. They are majorly found in the European countries, at most times with employee’s number ranging between one and a hundred. Pizza Time Food Company is an SME founded by Nolan Bushnel in 1977 as a Chuck E. cheese restaurant.
It is a type of restaurant that integrates food services, indoor mall, as well as lively entertainments. The chicken cottage is a large organization found in the United Kingdom that deals with food products. It is the producer of the cottage products that are distributed in all places in United Kingdom, and has one hundred and fifteen outlets in the United Kingdom.
The main objective of this report is to provide a detailed analysis of the two companies that are operational in the retail industry of the United Kingdom. On the other hand, it aims at establishing the similarities and differences between the two companies. Furthermore, it will give an overview of the strategic position of each company, the structure as well as the businesses’ operation coverage (Narongchai, 1988).
How governance informs business
An overview of the governance structure of the pizza time company reveals the existence of an excellent management system. It includes very vital keys to the management, a factor that majorly contributes to its continuity and stability.
They apply clearly defined policies within the organization, to which all employees and other involved individuals have to comply with. They include well spelt laws and acts that act as a constitution to the running of the company, and whose violation results in disciplinary actions being taken by the necessary authorities in the firm.
Laws are very important in all organizations, thus the company at hand is no exception and all employees are mandated to stick to the set laws and acts for the maximum achievement as per the company goals. Good governance in the company has been characterized by keeping of records, for every business operation regardless of the nature of the business.
Records keeping is a vital tool that measures business performance as well as productivity, thus the company has been successful in its operations. More over, the company has some officials specifically selected to work as record managers, whose duties are to keep the recorded transactions for future reference (Feedstuffs, 1995).
The earlier records enhance the running of the business by providing evidence of earlier performance trends, thus the company’s management can compare them with the current ones and come up with better strategies for the management. The company is characterized by a small number of employees, mostly below a hundred; therefore, the management is relatively easy, especially for the employees.
Furthermore, due to the small size of the business, it is possible to monitor the employee movement and performances, enforce the business code of conduct and top apply policies. On the other hand, the chicken cottage company is a large organization, thus having a wide scope of operation.
Its structure is characterized by a larger number of employees, which is a hundred and above, therefore relatively harder to manage them, than in the case of the pizza company. The governance is led by a bit complicated policies due to a large area of business, a large number of employees, and the additional products number. These characteristics are a clear indication of organizational management complexity, as compared to the smaller company.
Record keeping is an important characteristic that is given a first priority in the organization, which should be more demanding than that of the pizza company since the company operates internationally. Thus, the governance structure of the chicken cottage industry, though both are food industries is a bit complex and the excellent the management, the excellent the company’s productivity.
Governance informs the trend in which the business operates, whether positive or negative trends. For the pizza, the business remains a small retail because the set policies and acts have not provided a ground for a wider scope. The small scope is an indication of compact operations that can easily enhance productivity. For the larger one, unless the management takes a strategic position, management is not always very easy, thus, in order to make maximum profits, the company needs to be outstanding in its principles and goals (Anon, 2009).
Influence of structure on business
The structure of an industry is defined by some characteristics, for instance legal structures, marketing structures, management etc. The chicken cottage industry is a food franchise industry that operates internationally and expanding everyday as a global industry in exporting food substances.
It is evidenced by a wide market structure where its products are consumed even abroad, for instance in Canada. The wide marketing structure suggests a large-scale selling, maximized profits, higher labour turnover, as well as complex form of business organization.
On the other hand, the pizza time company is a restaurant that operates from only one country, and mainly caters for family needs through the integration of certain services. This suggests a minimized market structure, lower labour turnover, simpler organizational structure, and small scale selling. Chances for the company becoming a food franchise are limited; however, appropriate management would lead to maximized profits since it is easier to manage such businesses (Anon, 2009).
Business characteristics
The two industries in this case are privately owned food companies in the UK. This type of ownership is characterized by either one-person ownership or partnership form of business. The chicken cottage industry was initiated as a partnership form of business and up to date operates in that form, though has now expanded to become one that is known publicly.
Private ownership type of business operation is a symbol of continuity since the owners carry the company’s burden responsibly rather than in a public sector where individuals do not own the business, thus it is possible for such franchises to quickly establish themselves in a wide scope.
The partnership form in the chicken cottage suggests a positive move for the industry in the existing market. It is easier for the industry to conquer a large market than other sectors, thus it has been possible for the company to capture a larger market. The pizza time is a small company which is solely owned since was founded as a restaurant by Nolan Bushnel.
This type of ownership suggests effective management due to a small number, a small market of operation and integration of major services. Analysis of the size and overall employee turnover suggests that the possibility of such businesses to implement major changes are limited, thus they always prefer to operate on their already established structures as compared to the partnership or limited companies.
The food industry has remained concentrated in one region because of this reason. Such an ownership is subjected to more threats than are the opportunities as compared to the chicken cottage that is subjected to larger opportunities. However, every organization has its challenges but overcoming of these depends on the strategic position of these businesses (Anon, 2009).
More over, the chicken cottage industry differs from the pizza time company in terms of production structure. The chicken cottage is a manufacturer ad supplier of many products, which are even exported to other regions, including food flavors. This informs the business strategies to become a national supplier of such and even more manufactured products.
There is a high demand for change strategies and new strategies to be implemented. On the other hand, pizza time is a supplier of already made products to families; a group etc, and hence operates on low range of products and services. This characteristic enables them to concentrate on the established market more in trying to maximize the field in order to make maximum profits.
The simple structure enhances good relations between clients and the company, and among the employees and management as compared to large firms. It is also a suggestion of a centralized management system, which is easier to run and operate. Therefore, the chicken cottage can be defined as a medium business enterprise while the pizza time company can be considered as a small business enterprise (Henry and Rothwell, 1995).
Furthermore, the chicken cottage being a manufacturer and supplier of the various local and exported products, it is categorized as a secondary sector. This is an implication that it takes part in manufacturing / producing certain products, therefore is part of the manufacturing industry.
It also falls in the category of the tertially sectors since it provides restaurant services to its clients locally, for instance the fried chicken. This is an indication that the company is large, and stability is a key to its operations, thus has complex structure and complex operations (Henry and Rothwell, 1995).
On the other hand, the pizza time company can be grouped as a tertially industry. This indicates that it provides products and sevices but does not produce the goods itself. The tertially industry according to statistics do not have a wide operational or organizational area since it is not easy to manage the international tertially industry as it is for the secondary and primary sectors.
At the same time, considering the number of employees who work in the two industries, statistics define the size of the company by the number of employees as either constructive our manufacturing industries. Therefore, the chicken cottage industry can be concluded to be as a manufacturing since it has over a hundred but less than 200 employees in each sub-sector. On the other hand, the pizza time company can be defined as a constructive industry considering the fact that it has less than 25 employees in number (Anon, 2009).
Strategic position
Strategic position of an organization reflects on how well the business has been set up in order to achieve its laid down goals. It is a sum-total of all the strategies, both old and new that are implemented to help in the running of the business by the management as well as the employees.
For the chicken cottage industry, it has managed to set strategies that aid into the expansion to other companies, thus their Customer relationship management (CRM) is well implemented. Additionally, they manufacture a wide range of products apart from readily consumable food that they export to other neighboring countries.
The company also has made an excellent move in branding their products competitively to attract more customers. All the above and factors are a symbol of a strategically placed organization that is ready to maximize its opportunities as they also counteract the incoming threats. On the other hand, the Pizza Time Food Industry embarks on a competitive management system by employing a small number of the workforce.
The number coincides with the employee relationship model, which concludes that small numbers are manageable as compared to the large employee numbers as are found in the cottage industry. Their strategies have enabled them to open other similar outlets in other regions, and analytically that is a sign of an expanding business. From the growth rate of the enterprise over the years, analysis results conclude that the business is well set to accomplish its goals.
In addition, targeting a small number of specific customers in certain regions contributes to business success, thus the strategic position of the business is well set for maximum attainments.
The cottage chicken industry products reflect on the strategic position in that they are a wide range of them, competitively branded and of high quality. Similarly, the products of the pizza time are of good quality, and their services are so competitive, thus attracting a large number of customers, hence reflects on the strategic position excellently (Judge, et al., 2008).
Competition
It is clear from the description of the two companies that they are food industries, i.e., offering restaurant foods and services; therefore, competition is a very pronounced feature in them. Pizza is restaurant that offers food products to its customers, entertainments and other competitive restaurant services, manly in the local regions of the country.
Similarly, the chicken cottage offers alike services to its clients, but on international basis. The form of competition is stiff between the two, since the one that deals with local regions has a higher possibility of winning a large number of customers in its area of operation while the cottage one, owing to its international scope has higher chances of winning all customers, both internationally and locally.
For the purpose of statistics, the organizational model indicated such a kind of competition to take a direct form due to trade that focuses on identical products. The fact that they are based in the same region also can be used to conclude that the competition must be stiff between the two regardless of their sizes and characteristics (Judge, et al., 2008).
The competition between the two may take several forms; however, they are characterized by the differences in the strategies that have been laid by the two industries. One, performance competition is highly evident where each company works towards perfecting its performance to outdo the other.
The chicken cottage, being an international company has the ability to brand its products differently in order to attract more customers. The pizza in tries to integrate all activities including classic entertainments to attract more, hence, both are strategically set to achieve their prominence goals.
They both input a lot in advertising activities, product distribution, controlling supplies and other strategies that may deem important in counteracting competitors. These characteristics, statistically according to the theory of macroeconomics can suggest that each of the two wants to have the largest market share as a way of ensuring that their Boston group matrix reflects normal but competitive business trends (Stigler, 2008).
Differences in characteristics of the two industries
However, there are very outstanding characteristics between the two companies, despite the fact that they are both food industries. First, the chicken cottage in its structure and governance can be classified as a medium business enterprise while the pizza time industry’s description may place it in the category of small-scale enterprises, but both are generally placed in the S.M.E’S group of business enterprises.
Secondly, the cottage industry operates internationally while the pizza has its pronounced outlets in the mother country, the UK. More so, the cottage would be considered a partnership form of business while pizza would be considered as a solely owned business, though both are private sectors. In terms of products, the cottage industry is a manufacturing industry and produces them both for local and international consumption as compared to the pizza one which would highly be considered as a tertially industry.
Furthermore, the cottage’s workforce size fits it to be a secondary industry while the pizza’s size fits it to be a constructive type of industry (Anon, 2009).
Conclusion
The two businesses are strategically positioned depending on their concrete description, thus, they are prone to continuity and sustainability. The chicken cottage operates internationally, deals with a wide product range and has competitive brands. Therefore, its characteristics suggest a high level of business sustainability. The pizza time company is strategically placed in its operations in all its localities, thus is very competitive regardless of its size. The management level is also very effective, a characteristic of high sustainability.
The food industries, regardless of their sizes as SME’S are effective forms of businesses organizations. I would recommend that the most current, competitive and effective strategies are carefully implemented to improve the business operations in the stated S.M.E’S. Additionally, effective change management programmes should be put in place by each of the company’s to enhance attainment of their objectives (Anon, 2009).
Reference List
Anon. 2009. CEC Entertainment Reports Financial Results for the First Quarter of Fiscal 2009; Revises Previously Scheduled Date for Investor Conference Call. Press release. Web.
Henry, R. and Rothwell, G., 1995. The world poultry industry. Geneva: World Bank Publications. Web.
Judge, T. et al. 2008. Culinary Delights of the Great Southern Beaches. Dawes Journal of Fine Foods. Sydney: New London publishing Inc.
Narongchai, A., 1988. Small and medium business improvement in the Asian region: marketing factors. Singapore: Institute of southeast Asian.
Prewitt, M., 2010. Showbiz Parent Merges Concepts Into One Big Pie. Nation’s Restaurant News: pp. 12-3. Web.
Stigler, G. J., 2008. Competition. The New Palgrave Dictionary of Economics. Hampshire: Palgrave Macmillan.
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