Category: Business 11471

Introduction

Tim Hortons struggled to successfully expand internationally since the brand and its products were synonymous with its Canadian identity and were less known globally. Consequently, it faced stiff competition internationally and domestically from such multinational brands as Dunkin Donuts, McDonalds, and Starbucks. The major challenge with Tim Hortons is that although its robust integration with the Canadian identity contributed to its domestic success, it impeded its ability to expand and compete globally. This paper addresses menu innovation, inconsistent economic growth, acquisition by G3, and global reach as the critical strategic issues to be resolved.

Analysis of the Case Problems

Among the significant problems with Tim Hortons is that it had saturated the domestic market and developing an internal expansion strategy was necessary. The successful business struggled to penetrate the international market since the company had a strong Canadian identity (Hitt et al., 2019). Additionally, Tim Hortons brand and products were not widely known outside Canada, which further complicated their international expansion plans. According to do Nascimento et al. (2020), penetrating global markets is a challenging endeavor, especially for firms with a low brand and product awareness. Despite this challenge, Tim Hortons had to venture into the international market segment since it needed to improve its growth rates in the face of rising domestic competition.

Additionally, Tim Hortons was experiencing challenges in venturing into the international market due to low brand awareness. As a result, it was imperative for the organization to consider acquisition and vertical integration as strategic approaches to entering foreign markets and expanding its global reach. For instance, Tim Hortons had to agree to be acquired by 3G Capital, a Brazilian shareholder of the successful multinational fast-food chain, Burger King. According to Hitt et al. (2019), such strategic alliances are critical when an organization is considering international investment since it exposes the management to international experience. Therefore, the acquisition of Tim Hortons was a strategic decision that allowed the firm to leverage the global reputation of Burger King, which facilitated easier entry into the international market.

Further, Tim Hortons had to continually refresh its menu to reflect the evolving consumer tastes and create products that would be recognized by a global customer base. Notably, most of its products were less known beyond the Canadian borders and would experience challenges selling outside the country. Since Tim Hortons faced stiff competition internationally and domestically, it was imperative to reinvent its menu to enhance its competitiveness and capitalize on the changing consumer needs. For instance, there was a growing demand for non-wheat and gluten-free offerings, necessitating the firm to reinvent its menu and eliminate such dishes with declining demand.

Solutions to the Identified Case Problems

Tim Hortons had saturated the Canadian market and faced stiff competition on the domestic and international fronts. As a result, international expansion was a necessary strategic decision for the long-term growth of a firm. According to Ref et al. (2021), expanding internationally enables organizations to access new markets and a broader consumer base. Osano (2019) corroborates this view and posits that a company that has saturated the market experiences no customer growth. In this regard, it was imperative for Tim Hortons to explore new markets outside Canada and stay competitive. Therefore, venturing into multiple countries would promote the firms growth rate by accessing new markets and expanding its customer base.

Tim Hortons low brand awareness outside Canada resulted in low entry potential into the international markets. Switala et al. (2018) contend that brand awareness is a significant predictor of a successful global expansion. This implies that organizations with limited brand awareness experience challenges in their quest to expand globally and are compelled to utilize such other market entry strategies as vertical integration and acquisition by widely known brands. In this regard, the acquisition of Tim Hortons by Burger King was a strategic decision that facilitated the latters easier entry into the international markets. Notably, brand awareness is a fundamental consideration in customers purchase decisions and directly influences market performance (Hitt et al., 2019). This implies that consumers are more likely to buy a commodity from a brand they recognize than from a newly formed entity. Therefore, the acquisition of Tim Hortons by Burger was a strategic market entry strategy that allowed the firm to successfully venture into markets outside Canada.

Innovative menu designs and continuous refreshment are integral in staying competitive and enhancing an organizations ability to satisfy customer needs. With increasing domestic and international competition, it was critical for Tim Hortons to progressively redesign its offerings to stay competitive. Hitt et al. (2019) contend that such internal innovations ensure that organization keeps the ever-evolving needs of the customers fulfilled. Moreover, continuous additions of new products on the menu allow restaurants to earn above-average returns, which is a critical consideration in an industry characterized by small margins (Hitt et al., 2019). Additionally, such innovations enabled Tim Hortons to start offering products that were known outside the Canadian borders, thereby enhancing its global entry. In this regard, menu innovation and refreshments were integral in facilitating international expansion and strengthening the domestic and global competitiveness of Tim Hortons.

Justification of the Solutions

In an increasingly competitive restaurant business, global expansion ranks among the most effective ways an organization can improve its growth and create new revenue streams. After exhausting growth opportunities in the domestic market, organizations pursue international expansion as a strategic decision to access new markets and increase revenues Ahi et al., 2017). For instance, Tim Hortons had saturated the Canadian market, and opportunities for expansion and revenue generation were diminishing.

Additionally, the acquisition of the organization by Burger King as an international expansion strategy was an effective global market entry approach due to the organizations low brand awareness. Notably, the acquisition as Tim Hortons expansion strategy significantly reduced entry barriers into the markets where Burger King was already operating and benefited from the experience and perspectives of the acquiring entity (Islami et al., 2019). Additionally, the strategy eliminated such incidental costs as aggressive advertising to promote brand awareness.

Menu innovation and refreshment were an integral consideration for Tim Hortons to ensure that its products reflected the continuously changing consumer needs. Additionally, in the face of stiff domestic and international competition, it was critical for the organization to reinvent its menu to have a global appeal and mirror the evolving consumer dynamics. For instance, the behavioral and demographic changes in the North American population influenced their purchasing habits, particularly reducing their frequency of eating in restaurants. More specifically, there was a rising demand for non-wheat and gluten-free meals as the public became more inclined towards healthier food options.

Summary

Tim Hortons, a Canadian fast-service restaurant, had saturated the domestic market and was facing stiff competition from locally and internationally. It sought to expand its operations globally but faced challenges since it was a less known brand on the international scene. Besides, its product offerings were synonymous with Canada and would struggle selling outside the domestic market. Consequently, it was imperative for Tim Hortons to enhance its competitiveness and business growth through international expansion. The most effective expansion strategy was through the acquisition by Burger King since the firm had low brand awareness. Additionally, the organization had to reinvent its menu to have a global appeal and reflect the changing consumer demands.

Additional

As Tim Hortons continued to implement its strategic plan, there were other menu innovations that it should have considered to drive customer traffic to its outlets. For instance, the restaurant should have developed full-service products to cater for the aging and wealthier population whose demand for sit-down meals was growing. Additionally, Tim Hortons ought to have integrated gluten-free cuisines, non-wheat-based noodles and pasta, and healthier food options for children to cater for the growing demand for these market segments. As Tim Hortons considered geographical expansion, it should prioritize the U.S expansion then utilize the acquired global reputation to penetrate the Canadian domestic market. Additionally, the organization should not cede the European market despite the presence of its competitors. This implies that Tim Hortons should explore ways of differentiating itself from its rivals. In this regard, the company should not formulate a uniform positioning strategy but should customize its marketing, pricing, and menu to reflect the needs and characteristics of the markets. The partnership with Burger King would benefit Tim Hortons with the international experience and easier entry into those markets since the former was already operating there. Such emerging trends as food trucks provided avenues through which Tim Hortons could generate additional revenue, reach new markets, and promote brand awareness. In this regard, this was an alternative store format that the organization should recognize as long as the operators or franchisees did not violate the franchising stipulations. The shared trademark would make it easier for the franchisees to compete with other established brands that were already accessing such new markets as college campuses and universities through such innovative approaches. Tim Hortons partnership with Burger King would facilitate easier entry into the international market segment. However, that association alone would not be sufficient to create a competitive advantage for Tim Hortons on a global scale. For instance, the organization should consider glocalizing its menu offerings to ensure the products accommodate the preferences of the local market. This would help differentiate the companys products and create a sustainable competitive edge over the competitors.

References

Ahi, A., Baronchelli, G., Kuivalainen, O., & Piantoni, M. (2017). International market entry: How do small and medium-sized enterprises make decisions? Journal of International Marketing, 25(1), 1-21. Web.

do Nascimento, R., Santos, K., Júnior, J., de Souza, D., & Paixão, A. (2020). The importance of the brand in the internationalization of exporting companies. International Journal for Innovation Education and Research, 8(5), 162-171. Web.

Hitt, M. A., Ireland, R. D., & Hoskission, R. E. (2019). Strategic management competitiveness & Globalization: Concepts and cases (12th ed). Cengage Publishing

Islami, X., Islami, V., Topuzovska Latkovikj, M., & Mulloli, E. (2019). Barriers hindering the entry of new firms to the competitive market and profitability of incumbents. Management, 24(2), 121-143. Web.

Osano, H. (2019). Global expansion of SMEs: Role of global market strategy for Kenyan SMEs. Journal of Innovation and Entrepreneurship, 8(13), 1-31. Web.

Ref, O., Feldman, N., Iyer, D., & Shapira, Z. (2021). Entry into new foreign markets: Performance feedback and opportunity costs. Journal of World Business, 56(6), 101258. Web.

ZwitaBa, M., Gamrot, W., Reformat, B., & BiliDska-Reformat, K. (2018). The influence of brand awareness and brand image on brand equity  an empirical study of logistics service providers. Journal of Economics and Management, 33(3), 96-119. Web.

Exporters, importers, and shipping companies should put into consideration a number of factors before deciding the type of containers to use for delivering goods. For instance, the strength of the goods being transported is a pertinent factor to bear in mind. If a product is quite robust, it definitely requires an equally strong delivery container in order to withstand the pressure.

The weight of the product is yet another important consideration. Containers made from relatively delicate materials cannot be used to transport heavy goods. Other factors to bear in mind include the prevalence of adverse weather conditions, exposure to moisture, and the value of the product.

A stronger shipping container should be chosen by an organization that thinks that additional protection is required for the product being transported or when the uncertainty level is high. When supply chain distribution is used to ship a firms product, choosing the most appropriate container is a crucial undertaking that cannot be ignored. The merits and demerits of each of these methods of shipping containers have been explored in this essay.

To begin with, shipping containers have been manufactured using wood for several centuries. Containers that are bound by wires, crates, pallet boxes, and pallets have been manufactured using wood as the main raw material. Similar to other materials used to make shipping containers, wood has its own merits and demerits. The first advantage of wood is that it can be used to make shipping containers using both power-driven tools and hands. The latter is used to resize or reshape wood in the process of making shipping containers.

In other words, wood provides the opportunity for container makers to devise various shapes and sizes for different compartments within a shipping container. This positive attribute of wood as a raw material for shipping containers makes it more appealing for artisans who prefer different designs and shapes.

The fact that wood can be reshaped using hand is yet another merit over other raw materials such as plastic and paper. Wood makes the process cheap or costs effective even in cases where power-driven tools are not available or costly. This implies that wood can be used to make shipping containers with the least possible investment.

Besides, wood is comparatively more durable than plastic or paper. It is crucial to mention that unlike paper or plastic, wood is made up of natural fiber components that are extremely strong. Plastics and paper are made up of inorganic materials that are weaker or more delicate than wood. Hence, wood can be used to make the strongest shipping containers for transporting heavy goods. It is also crucial to mention that wood cannot be corroded by either acidic or basic chemicals. Some paper materials can be corroded (charred) by chemicals even though plastics stand out as an alternative to wood when it comes to resistance towards corrosion.

The insulating capacity of wood is also a major advantage when used as a material for shipping containers. Wood contains a significant amount of trapped air owing to its high level of the fibrous structure. Needless to say, myriads of goods transported by ships are supposed to be well insulated in order to avoid the possibility of electric shock.

Since wood is the best insulator out of the three types of materials, it provides the much-needed insulated environment for metallic goods or products that can conduct electricity. Plastics are also good insulators even though they lack the tensile strength required in the transportation of heavy goods. On the same note, paper-based materials can offer adequate insulation in spite of the fact that weighty products may not be comfortably and securely transported using containers made from paper.

Both plastic and paper materials can slightly bend when used to make shipping containers. This might not be a desirable characteristic, especially when transporting goods that require surplus protection.

However, plastic and paper materials are less bulky than wood. This implies that minimal space is occupied by shipping containers made of plastic and paper. Extra space is taken up by wood. This is apparently a major disadvantage of using wood as a raw material for shipping containers. Besides, wood requires more storage space than either plastic or paper materials.

When it comes to moisture sensitivity, plastic-based shipping containers are apparently the best when compared to wood and paper. Any slight change in humidity may cause the warping of the wood. The latter refers to changing shape.

Warping may interfere with the actual size of a container. However, plastic shipping containers can never be affected by a change in atmospheric moisture content since they do not absorb water at all. Paper-based containers are also vulnerable to moist environments. Therefore, paper-based containers are not preferable for transporting goods that may be damaged by humid environments.

In terms of technology, paper, and plastic-based shipping containers are easier to build because the materials are already available in different sizes and shapes. The only task is to cut the materials into the desired lengths and join them together. In other words, it is relatively swift to build paper and plastic-based shipping containers.

Contrary to wood, there are no complex and technical skills required to construct paper and plastic-based shipping containers. In most instances, wood-based shipping containers are built and assembled using highly skilled laborers. This brings in the issue of cost. In spite of the durable nature of wood, it is quite costly to construct its shipping containers.

Plastic materials can be reused or recycled compared to wood. Hence, cost savings are readily achieved when plastic is used to make shipping containers. Not all paper-based materials can be recycled after use. On the other hand, wood cannot be used again or recycled. In the long run, wood does not save the cost of building containers. A firms packaging costs cannot be lowered when the wood is used as a packaging material.

On a final note, plastic and paper materials have been extensively used to build reusable shipping containers owing to the benefits associated with the same. The disadvantage of wood at this point is that it cannot be used to make reusable shipping containers.

As already mentioned, the bulky and solid-state nature of wood does not permit easy bending or flexibility of the destined shape. Although it is an advantage in one area, it works against the desire to build shipping containers that can be used for multiple purposes. Storage, handling, and shipping can be easily facilitated by plastic or paper-based containers owing to the following features:

• Stackability-plastic and paper shipping containers may be adjusted to provide greater stacking height when both the upper and lower sections lock into one another.
• Nestability Empty-plastic and paper-based materials allow swift storage of containers inside each other.
• Collapsibility-when plastic and paper-based containers are collapsed downwards; they can be easily folded.

The above features cannot be realized when wooden materials are used to build shipping containers.

A contract is defined as an institution which guides the behavior and conduct of those who enter into it. It usually occurs when two or more people, organizations or even companies make an agreement that can be enforced through a court of law and penalties may follow if the guidelines are breached (Goodchild, Herring& Milosevic, n.d). Laws about contracts vary and depend on the field which the contract involves.

Parties within an agreement need only to follow the principles or the guidelines as arranged in the contract and everything else works out as planned. In some respects, the players in the contract can create their own laws in which they are supposed or obliged to follow most of the times in front of a lawyer. To have a valid contract, an offer and acceptance to the offer are vital in making the contract work thus when the conditions of the offer are agreeable to the parties involved, then an agreement is reached.

Among the components which tend to make the law binding are the agreement and the consideration (Wald, n.d). The agreement entails discussing and then reaching to a consensus where a consideration which most of the times is the price as agreed upon.

What makes most of the agreements not qualify to be contracts is the lack of a law that binds and enforces them. For instance, this is what distinguishes a contract and an agreement. In case of any misunderstanding, the aggrieved party should always obtain relief from the law that enforced the contract (Steinberger, 2007).

In line with the given case study, there exists no contract between Rita and the collector since the collector just informed Rita of how much the necklace could have been worth but we are not told anywhere that the two sat down and wrote an agreement in which they agreed to fulfill.

The promise to do or not to do from an act is called consideration; every contract contains the promise and consideration. A promise is often made in return for a consideration and in our case the price of the necklace was the consideration. To most people, consideration is described as the key aspect of a contract but what many fails to understand is the fact that there being no binding factor, any player in an agreement can walk out at will since there are no repercussions or penalties which would follow the breach. In our case there was consideration that the necklace was worth 200£ and thus the only thing lacking was the law binding the collector to honor his pledge. The two just had an agreement but writing and registration was not there nor was there a law that could have forced the collector not to breach the agreement. The collector could still have demanded for the necklace at a lower price than the agreed since there was no evidence to show that they had agreed that the necklace was that worth. The terms of the agreement were also not certain since there is nowhere in the case study we are informed about the certainty of the collector paying the amount thus the contract still stood vague since either party could have refused to enforce it.

A contract is only valid if there exists a law that binds the players. It is the law aspect that distinguishes a contract from an ordinary agreement thus we can say that there being no a law binding the two parties, there was no way the agreement between the collector and Rita could have been valid.

Reference List

Goodchild, A; Herring, C., & Milosevic, Z. (Not Dated). Business Contracts For B2B: University Of Queensland. Web.

Steinberger, J. (2007). Is This Contract Valid?

Wald, H. M. (Not Dated). Requirements of a Valid Contract. Web.

Case Study: Root Causes

Milestone Two Analysis

The organizational issues that have arisen in Engstrom can be characterized based on the cognitive approach. It proceeds from the recognition of the primacy of human mental activity (Luthans et al., 2021). This approach has found the most significant application in developing motivation theory. Expectation, attribution (attribute, affiliation), locus (direction) of control, and goal setting characterize the purposefulness of organizational behavior (Luthans et al., 2021). This approach uses the connections between the process of cognition and organizational behavior.

The fact is that the company has made attempts to create a motivation system based on the activity of employees regarding their suggestions for improving the company. However, in this case, the problem is that the Scanlon method used by the company does not allow to motivate employees at unstable times competently. In this case, the main problems are that the company has no opportunity to pay the bonus after the decline in economic indicators (Luthans et al., 2021). From the employees point of view, only what concerns them directly is important to them. They lose the opportunity to receive bonuses, and their productivity and initiative respectively decrease. This is due to the fact that they no longer have the opportunities to realize their potential as before.

Case Study: Solutions

Milestone Two Analysis

In addition to the systematic perception of the workforce, the situational approach requires considering the managerial situation and the influence of situational factors on the behavior of people in the organization. This approach to management proclaimed that due to the uncertainty existing in the organization and its environment. The multiplicity of possible solutions to management tasks is generated by a variety of situations; there is not and cannot be a single universal approach to management in general (Thompson & Glasø, 2018). To predict peoples behavior, it is necessary to consider the situation and its perception by the system, that is, by the team and the organization.

Engstrom needs to change and modify the current employee incentive system and focus on increasing trust. The reward system should be transparent and understandable, based on quantitative assessments. It is necessary to use clear evaluation criteria common to most employees. It is essential to ensure the information availability of the incentive system; information about them should be distributed promptly at all levels (Thompson & Glasø, 2018). Employees should receive incentives immediately after positive results. The size of salaries and bonuses should not be tied to the positions held  if an employee consistently shows good results, their remuneration should be significant.

Case Study: Strategic Actions

Milestone Two Analysis

It should be noted that Engstrom is entirely dependent on the motivation of its employees, so it is necessary to develop strategies that will allow the company to change its approach to management. One of the prerequisites for proactive management in business is analyzing market behavior and trends (Escrig-Tena et al., 2018). The use of intelligent technologies helps to predict the behavior of the business system to the head of the corporation based on analyzed and created models of the development of the situation (Escrig-Tena et al., 2018). It can be done by taking into account previously accumulated and current data. The intelligent, proactive management complex includes various software and hardware platforms, and universal and specialized applications that can be integrated into a single information system to solve a unique task for Engstrom. Thus, with the use of a human-machine system and a tool to support the effective intellectual predictive activity of the company, it will be possible to make the necessary changes without losing the companys efficiency.

Case Study: Description, Understanding, Prediction, and Control

Milestone Two Analysis

With a well-chosen strategy and its optimal implementation, the movement of the participating elements is transformed from a chaotic state into an ordered one. It is worth noting that this significantly increases the effectiveness of the planned actions of the organization. The goal of the strategy is to hold the points of the present and the future simultaneously and implement a consistent and gradual transition of actions on these ideas (Olkiewicz, 2018). Forecasting plays a special role in developing the strategic image of the organization. Ideas about the future of a company can be very diverse. However, without them, the organization loses its development guidelines and the meaning of its existence (Olkiewicz, 2018). The importance of describing and understanding the situation in which the company is economically and financially located is manifested.

In the ever-changing conditions of the modern world, timely implementation of changes in an organization plays a significant role. This aspect is depicted in its existence as an integral structure and in determining the financial and social status of its employees (Olkiewicz, 2018). If global and long-term perspectives prevail when making a particular management decision, they are likely to be divorced from reality, and only general answers will be received to specific problems. If local organizational problems are solved without understanding broader relationships at the strategy level, then such decisions will not be properly prospectively justified; they will be focused only on the organizations present situation. Therefore, it is essential to control many aspects of the functioning of all company systems.

References

Escrig-Tena, A. B., Segarra-Ciprés, M., García-Juan, B., & Beltrán-Martín, I. (2018). The impact of hard and soft quality management and proactive behavior in determining innovation performance. International Journal of Production Economics, 200, 114.

Luthans, K. W., Luthans, B. C., & Luthans, K. W. (2021). Organizational behavior. Van Haren Publishing.

Olkiewicz, M. (2018). Quality improvement through foresight methodology as a direction to increase the effectiveness of an organization. Contemporary Economics, 12(1), 69-81. Web.

Thompson, G., & Glasø, L. (2018). Situational leadership theory: A test from a leader-follower congruence approach. Leadership & Organization Development Journal, 39(5), 574591.

MPI Factors

Seeing that the Market Potential Indicator (MPI) must provide a precise analysis of the opportunities that a certain market has for an average company, the need to incorporate not only basic economic factors but also the ones concerning the population of the market in question, the commercial infrastructure, etc., into the development of the MPI emerges. According to the information provided by the MPI developers, eight key indicators were used in designing the tool. Particularly, market size, intensity, growth rate, capacity, and receptivity, as well as commercial infrastructure, economic freedom, and country risk (Market Potential Indicator, 2015) must be mentioned. The dimensions of the target market help identify the approach that a company needs to undertake in order to find its niche in the given economic environment. The demographics of the market is an especially important factor, as it determines the advertising tools and the marketing strategy to be used in order to cater to the needs of the target population (Daniels, Radebaugh, & Sullivan, 2011). The commercial infrastructure and the economic freedom rates, in their turn, define the pace of the companys progress. Finally, country risk defines the chances for a company to survive within a specific economic environment.

Factors Affecting a Laptop Company

A company producing and selling laptops is primarily interested in the average annual income of the market demographics since a laptop is a rather expensive piece of equipment. Therefore, it is essential for an organization selling laptops to identify the consumption capacity of the market that the organization is trying to enter. Allowing the location of both the average annual income share of a middle-class family (Market Potential Indicator, 2015) and the rates of consumer expenditure within the specified market, consumption capacity is a crucial factor in the choice of a market for a laptop company.

Another important parameter, the market receptivity of the target economic environment, is to be added to the analysis. Helping learn the per capita imports from the U.S. to the market in question (Market Potential Indicator, 2015), this factor displays the chances for the laptop company to reach success and sell the number of laptops required for gaining the planned revenue. Specifically, market receptivity may point at the product saturation rates within the target market and identify the possible competitors.

Finally, the market size is also of great significance for a firm producing laptops. As long as the number of target customers remains high, the organization will be capable of keeping its income high.

MPI Analysis for a Laptop Company

As far as a perfect country for the company under analysis to enter is concerned, the MPI tool suggests that the French laptop market should be viewed as an option. Though the state is technologically advanced, its laptop market has not yet experienced the pinnacle of its saturation yet based on the market receptivity rates (Market Potential Indicator, 2015). Moreover, the size of the market is quite large; the rate reaching 10 (Market Potential Indicator, 2015). While one might argue that there are states with greater market size scores, France is one of the few states that have their market size and receptivity comparatively high (10 and 12 correspondingly) (MPI data, 2015). Moreover, the consumption capacity of the target market reaches 72, which is another impressive score. Therefore, France should be viewed as an option for a company producing and selling laptops.

Reference List

Daniels, J., Radebaugh, L., & Sullivan, D. (2011). The economic environments facing business. In J. Daniels, L. Radebaugh, & D. Sullivan, International business (pp. 131174). 13th ed. Upper Saddle River, NJ: Pearson.

Market Potential Indicator. (2015). Michigan State University. Web.

MPI data. (2015). Michigan State University. Web.

As evidently, known, Ruths Chris is an American entity that is going global in an endeavor to expand. Globalization will involve opening up branches he is in various countries. London is one of the lucrative cities due to its large population and tourist number. The company aims at making the best out of any investment the opportunity thus facilitating growth.

To enter a foreign market, we will embrace partnership with designated companies or entrepreneurs. Ruths Chris entry into the London hotel industry will not only augment the competition but will increase the variety of cuisine offered in London. This will also serve as an avenue to market American cuisine and illustrate the constituents. Furthermore, the entity will aid in meeting Londons necessities for American delicacies.

London is preferred due to its dynamic nature; it serves as the economic center in Western Europe. It is also a cultural center and has a good business environment. This is an invitation to all companies and entrepreneurs that are willing to work with Ruths Chris in franchising it in London and the rest of the world. Interested parties should come up with concrete strategies to help Ruths Chris break into the London hotel industry.

All interested parties will receive due to cooperation in the course of working on their proposed strategies. Ruths Chris is willing to set up meetings if need be. The firm or entrepreneur who will enter into a partnership with Ruths Chris will derive many benefits. Considering the exploits that this brand has made in the US, then this partnership will enhance goodwill for the strategic partner.

Given the success, the management of Ruths Chris has experienced, some of the business tactics employed by Ruths Chris may pass on to the partner uplifting the business. Entry into the hotel industry will encompass the use of well-researched information to determine trends in this industry. A lot of careful planning is required for a venture of this magnitude.

To create awareness of the entry of this hotel in London, a well-coordinated advertisement is imperative. It would be vital that any entity trying to partner should be a well-established brand in London. Establishment of the facility ought to be done, expeditiously to facilitate immediate commencement of operation.

Ruths Chris operates in an industry that is susceptible to the slight change in politics, security threats and economic time it will be in the interest of Ruths Chris that the strategic partner should have a strong financial foundation. The partner should be operating in the hotel industry or related one to enable them to work synergistically.

Established over fifty years ago as a small hotel, Ruths Chris has steadily grown and cut a niche for itself in the American hotel Industry. Ruths Chris is composed of a chain of branches in many urban areas in the US. This has indeed helped in its strategic positioning and enabling it to tap the highly profitable American market.

Existence of this brand up to date is a sign of its resilience and the capability of its management staff to deal with the various economic challenges. Ruths Chris was a victim of Hurricane Katrina and Betsy and the devastating economic meltdown that brought down significant proportions of companies in the globe. The ability of such a business to withstand such hard economic times makes it a worthy investment venture.

Executive Summary

The new business will appeal to travelers who consider pets as a part of their families and would like to present gifts to them after being away. It will exploit opportunities emerging from new regulations that require hotels to have pet parks and the need to present gifts to pets.

Location

3316 West 78^th Place, Los Angeles, California in a home office.

Products and Services

The companys products include doggie tee shirts, doggie bandannas, pet travel cases and catnip toys considered as souvenir gifts for global travelers.

Product pricing will account for both high-end consumers and other market segment (Havinal 67).

The Market and its Potential

This is a new market opportunity, which has not been explored before based on pet products. Hence, the market has potential. Pet owners who travel or tour other regions would like to take presents to their pets once they are back.

The great products and services offered by strategic partners, such as Action Bags, DXE Corporation, Hire Fishbrain, The Fresh Pet Club and BC would ensure the growth of the market niche.

The US Department of Transportation has introduced regulations that require airports to have pet parks, whereas selected hotels such as Hilton, Kimpton, Loews, Indigo Hotels, Marriots and Starwood Hotel Group.

Business Purpose

The purpose of this business to offer pet products to pet owners with the aim of satisfying pet owners guilt after being away from their pets for considerable periods. Generally, the target customers consider their pets a part of the family.

Opportunities

Pet owners find it difficult to give their pets gifts once they are back from tours. A wide range of pet products and service offered by these partners would offer suitable solutions to pet owners.

Currently, there are no pet collections at the airports and this is a good opportunity for the company.

The company will also use its two characters, Woodmere, a dog and Holly, a cat to develop its company videos for children. Children would use such videos to learn about dogs and cats. Small, printed videos and storybooks about cats and dogs would provide additional revenue stream to the company and create other jobs.

Competition

The company anticipates limited competition because such products and services are not available at the airports and hotels. The company expects some minimal competitions from souvenir markets, but it the advantage of meeting customers at the airports and hotels.

One major challenge is that the market for these products and services is still at nascent stage. The company will overcome these challenges through effective marketing and promotional strategies (Kuratko 32).

The company will create competitive advantage from its human resources team who understand pets and souvenir markets (Schermerhorn and Wright 98).

Finance

The business will generate revenues from product and service sales. It expects venture capital of $65,000 with 25% stake of ownership. So far, a pitch has been well received by potential investors.

Additional revenues will be generated from sales of storybooks and videos.

Entry and Marketing Strategies

The company intends to use a concession group with several outlets in the US. It will use Fast Pitch present the proposal to potential partners.

The distribution channels around selected locations would ensure that the company penetrates the market faster.

It will acquire contracts with airport concessionaires such as Paradies, World Duty Free and the Hudson Group among others.

There would be bi-monthly newsletter, constant contact e-mails and network marketing.

Future Growth and Expansion Strategies

The company shall expand to other continents such as South America, Europe, Asia, Africa and Australia.

Works Cited

Havinal, Veerabhadrappa. Management and Entrepreneurship. New Delhi: New Age International Publishers, 2009. Print.

Kuratko, Donald. The Entrepreneurial Decision. Indiana: Ball State University, 2000. Print.

Schermerhorn, John R. and Barry Wright. Management, Second Canadian Edition. Toronto, Canada: John Wiley& Sons, 2011. Print.

Introduction

Bed Bath & Beyond (BBBY) is a retail chain operating in the US, Canada, and Mexico. The main products that the company sells are furniture and other household goods. Over the past few years, BBBY has been gradually losing its profitability, which could result in the companys final bankruptcy. At the same time, the latest quarterly report indicates that the company has significant losses in all areas of its activities and growing long-term debt. Therefore, it is necessary to develop strategies to help the company stabilize its position in the market and increase its financial performance.

Current Financial Plan

According to the latest quarterly report, Bed Bath & Beyond merchandise sales dropped significantly, resulting in a decline in the companys assets. While in February 2022, the companys total assets were $5.1 billion, in August 2022, this figure dropped to $4.6 billion (EDGAR, 2022). Moreover, in August, the company had only $135 million in cash and cash equivalents; in February 2022, this figure was $439 million (Figure 1). Thus, there has been a noticeable decrease in the companys financial resources and assets over the past six months.

In addition, the companys long-term debt increased in proportion to the decrease in its assets. In February, the debt was $1.2 billion, while in August, this figure rose to $1.8 billion (EDGAR, 2022). Therefore, one of the main aspects of the companys financial stabilization should be the repayment of long-term debt, or at least not allowing it to increase. Moreover, the assessment of the companys assets shows that, at the moment, the company has specific resources that can be transformed into cash and cash equivalents and used to pay off debt. For example, according to the report, the estimated value of property and equipment has increased. In the long run, this resource can be used to pay off debt and avoid company bankruptcy.

Furthermore, it is worth noting that sales in the company have declined significantly. For example, in August 2022, 6 months ended sales were $2.9 billion, while in 2021, the exact figure was $3.9 billion (EDGAR, 2022). At the same time, restructuring and transformation initiative expenses continue to grow. Although these figures are low, it is worth considering that the total liabilities of Bed Bath & Beyond in August 2022 amounted to $5.2 billion (EDGAR, 2022). In this scenario, it becomes evident that more than the companys sales is needed to maintain its activities.

Thus, a decrease in the companys sales revenue demonstrates that the company is losing the loyalty of its customers. The field of activity of the company has relatively high competition. In addition, the goods sold by the company, such as furniture and other household goods, are in a reasonably high price segment. This forces buyers to choose other retailers who can provide similar products at a more affordable price. Therefore, developing and implementing strategies for achieving a sustainable competitive advantage in the marketplace and increasing financial performance is necessary.

Strategies

Applying specific strategies can help a company strengthen its position in the market and increase its revenue. The companys management has developed a reorganization plan that includes reducing the number of stores, laying off employees, and attracting investments that can be used to pay off the companys debt (Bed Bath & Beyond Inc., 2022). However, after careful analysis of the proposed plan, certain weaknesses and flows of the developed strategy become apparent.

First, the reduction of 20% of the staff will increase the burden on the remaining employees, increase working hours, and, as a result, the need to raise wages. Savings on employees salaries, which the companys management has incorporated into its plan, may not be realized in natural conditions. On the other hand, if a company increases the burden on employees and does not provide adequate wages, there is a greater likelihood of complaints and lawsuits regarding working conditions. In this case, the company may suffer even more significant losses.

Secondly, the complete closure of stores implies losing a certain number of customers who retained their loyalty to the company. It threatens to worsen the companys reputation and, as a result, significant financial losses due to lower sales. However, one possible strategy to help prevent these adverse effects could be adopting the buy-online-and-pick-up-in-store (BOPS) strategy (Shi et al., 2018). The emphasis on online sales can reduce the staff of offline stores without a significant burden on other employees.

In addition, using such a strategy will help prevent the company from exiting the market in some cities. Stores that can be expensive to maintain can be replaced with warehouses where online shoppers can pick up their merchandise. Shi et al. (2018) note that in some cases, using such a strategy may have an adverse reaction among customers since BOPS deprives buyers of the opportunity to evaluate the product in person. However, e-commerce services are already being used by the company. Therefore, the main task is to focus the attention of buyers on online services through, for example, marketing and sales strategies.

Implementation

Implementation of this strategy demands a thorough analysis of the companys current online sales. It will help to analyze the model of customer behavior, as well as to identify shortcomings and shortcomings in the online sales system. After that, you can stick to the plan developed by the companys management to close stores and reduce the number of employees. The financial resources saved from this can be rationally invested in improving online sales services.

Outsourcing companies can be used to regulate the operation of technologies and the online sales system. Often the services of such companies are cheaper than wages for full-time employees. Therefore, this could be another savings item for Bed Bath & Beyond. In addition to developing and implementing new technologies, the saved financial resources must be used to pay off the companys debt. Full or partial repayment of long-term debt is one of the key aspects to which the companys activities should be directed at the moment. As long as the amount of the companys assets does not exceed its total liabilities, the companys bankruptcy is inevitable.

In addition, to increase the companys profitability and maintain its competitiveness, it is necessary to understand the needs and demands of customers. Shi et al. (2018) believe that the BOPS strategy allows companies to offer discounts to customers and create a price advantage for the company in the market. Since the companys field of activity has a reasonably high level of competition, the ability to buy the necessary product at a more affordable price can be a decisive factor for the buyer.

Conclusion

Hence, Bed Bath & Beyond is currently experiencing severe financial difficulties that require immediate solutions. One of the possible strategies could be a partial transformation of the companys activities with an emphasis on online sales. It will reduce the expenses for maintaining offline stores work and employees wages. In addition, the buy-online-and-pick-up-in-store strategy allows you to get a cost advantage and consolidate customer loyalty in the market.

References

Bed Bath & Beyond Inc. (2022). Business & Strategy Update. Web.

EDGAR (2022). Quarterly report: Bed Bath & Beyond Inc. Web.

Shi, X., Dong, C., & Cheng, T.C.E. (2018). Does the buy-online-and-pick-up-in-store strategy with pre-orders benefit a retailer with the consideration of returns? International Journal of Production Economics, 206, 134-145.

Introduction

Strategic information systems (SIS) are structures developed in response to the business initiative of a given company. The networks play a number of roles in contemporary organisations. According to Newman (2006), the primary purpose of the system is to give organisations a competitive advantage over its rivals in the market. Gallaugher (2010) is of the view that SISs are computer applications that help companies in the implementation of their business strategies.

They are put in place in a manner that will make them have a positive impact on the corporations products and business operations. The concept was introduced in 1982 by Dr. Charles Wiseman. Over the years, a number of information systems have been developed to suit the needs of modern firms. According to Hussain et al. (2008), most SISs act as support activities for organisations. The reason for this is that they improve the efficiency and effectiveness of the firm. In addition, they are used to control operations. Due to these capabilities, information systems have become a fundamental part of companies today.

In this paper, the author will critically evaluate the ways in which strategic information systems generate value for contemporary organisations. To provide a detailed and comprehensive analysis of the SISs, the writer will use Accenture Consulting Services Company as an example of a corporation that uses the applications to gain a competitive advantage. The paper will also provide relevant information about the company. Such data will include its purpose, mission, objectives, trading value, strategies, and products offered. In addition, information regarding the list of systems used, the names of chief officers, and future direction for the organisation will be provided.

An Overview of Accenture Consulting Services Company

Accenture is an international management consultancy services company. It has its headquarters in Dublin, Ireland. The organisation is the largest consulting firm in the world based on annual revenues. In terms of branches and workforce, the corporation operates in more than 200 cities in 120 countries. It also has an estimated 373,000 employees (Long, Jacques & Kepos 2006). Since its formation, the company has recorded significant success in its operations. It has managed to maintain a competitive edge over its rivals in the global market. As a result, the firm has received numerous awards and honours. For example, in 2014, Accenture was ranked number one in the provision of Worldwide Cloud Professional Services. Products offered by the company:

• Business Process Outsourcing (BPO);
• Application Outsourcing;
• Oracle Solutions;
• Consulting;
• Outsourcing Services;
• Software as a Service.

A number of factors are associated with the companys success. One of them is the firms optimisation of its potentials. In addition, Accenture makes use of different resources, such as SISs, in its operations. Over the years, Accenture has managed to interconnect its resources and capabilities as an organisation to create new value (Newman 2006).

The firms trading value and share capital

Valuation measures

Financial highlights

A Review of the Strategic Information Systems used by Accenture Company

Overview

The operations of Accenture are based on sound purpose, mission, and objectives guidelines. Consequently, the company has managed to maintain its leadership position in the industry. The guidelines also help the management to uphold consistency in professional outsourcing services as a brand. The corporation has invested a lot of resources in efforts to ensure that its employees understand and meet the set goals and objectives (Newman 2006). To mechanise operations and help employees address the demands of the clients, Accenture incorporates a number of strategic information systems into its operations.

• Purpose/Objective: To fulfil the vision of improving the way the world works and lives.
• Mission: To become one of the leading Corporations in the world.

Digital Outsourcing

For a long time, Accenture used conventional consulting, technology, and outsourcing means of operation. However, the company rebranded in 2013 and incorporated modern digital outsourcing system into its business activities. The new mode of information system helps companies gain a higher competitive advantage over their rivals by ensuring that they capture more opportunities online (Pearlson & Saunders 2013).

The figure below is an illustration of a conventional digital outsourcing network:

Through the use of the digital outsourcing platform, Accenture has been able to effectively implement Porters competitive forces model and strategy. In their framework, Porter identifies the primary types of competitive advantages. They include differentiation, focused strategy, and low-cost production. By adopting the digital outsourcing platform as a strategic information system, Accenture delivers low-cost services with higher value to its clients (Investor relations 2016). Consequently, the company manages to stay ahead of its rivals in the business. Long, Jacques and Kepos (2014) note that the digital platform is operated by more than 27,000 IT staff. The workforce and the online podium ensure that services are readily available to clients all over the world.

Digital Follower and Transformer

Accenture has expanded and shaped its business operations by focusing on different digital strategies. The approach has helped the customers served by the company to target and evaluate the value opportunities that a digital interference can generate in the industry. According to Newman (2006), the information technology approaches employed by Accenture are aligned with the companys business strategies. As a result, the company can effectively attain the set organisational goals.

Strategies adopted by Accenture:

1. Working by combining business insights with the understanding of how technology affects industry and business models.
2. Focusing on digital disruption, global operating models, redefining competitiveness, and talent and leadership.

The two primary strategic information systems employed by Accenture to help in the realisation of its corporate goals and generate value are digital transformer and follower. The main function of the digital transformer is to capitalise on the opportunities made available through digital interference (Hunter 2010). On its part, the follower is designed to optimise the activities of the corporation. Integration of the two strategic information systems enables Accenture to gauge the connection between its competitive position and company activities. In addition, the systems help the firm to analyse the value that each operation carried out by the organisation adds to the service line (Investor relations 2016).

Application Programming Interface

Application Programming Interface (API) is an information system developed through a partnership between Accenture and Apigee (Saunders 2015). The primary function of the software is to help the clients create mobile platforms with apps. The figure below illustrates the use of a conventional API:

By adopting the information system, Accenture has been able to enhance its relationship with customers. In addition, the organisation has developed a stronger global alliance to provide solutions that help customers build applications and connect to enterprise systems.

Piccoli (2012) is of the opinion that APIs are gaining popularity in the world. The reason is that they allow corporations to simplify the integration of mobile applications. In addition, the systems hasten the conception of digital services. As a result of the APIs, Accenture has managed to expand its services and take advantage of the fast-growing market. Consequently, the company has been able to generate more value and maintain a competitive edge in the industry (Rainey 2006).

Accenture Interactive

Accenture Interactive is a strategic information system that enables the company to generate value through the effective delivery of digital services. It also helps the company to improve its customer care and sales (Velte, Velte & Elsenpeter 2008). By adopting the system, the company is able to provide clients with cutting edge and first-class digital solutions. In addition, the organisation applies the system to handle and manage the extensive growth of its digital content. The process enhances the production and distribution activities, adding more value to the corporation (Poniatowski 2010).

Guilt Factor

Guilt Factor is a strategic information system used to reduce travel expenses and enhance organisational productivity through the optimisation of human resource (Saunders 2015). The system produces a travel summary Accentures employees at the personal portal home page of every travelling member of staff. The software provides the organisation with information regarding expenditure on, among others, airfare.

For example, the system shows the details of aeroplane tickets booked without taking into consideration the set policies (Corporate development & growth: service overview 2016). The capabilities of the software have helped the company to eradicate first-class international travels paid for against the organisations guidelines. At Accenture, workers below the senior manager and executive grade are required to fly economy class.

The guilt factor has increased the value of the organisation. For example, the company has been able to cut down on training costs and increase productivity and agility (Cassidy 1998).

SAP HANA

SAP HANA is a strategic information system used by Accenture for a number of purposes. It is applied to enhance business analytics, compel standardisation, and increase the efficiency of operations across the globe. In addition, the system accelerates the speed of reporting and lays the foundation for better decision making processes. To remain competitive and relevant in the business world, companies should use modern integrated systems that facilitate the effective use of data (Tomlinson 2010). SAP HANA is easy to maintain. It provides Accenture with additional business insights. As such, the system helps the company to generate value and maintain a competitive edge in the industry.

The Use of Technology and the Future Direction of Accenture

The management team at Accenture considers strategic planning and the use of information systems to be important to the firms business processes. In addition, the company believes in the improvement of traditional strategies and processes. Over the years, Accenture has used technology to develop inclusive methodologies of strategy formulation that ensure organisational success (Corporate development & growth: service overview 2016).

Systems used by Accenture:

1. Digital Outsourcing;
2. Digital follower and transformer;
3. API;
4. Accenture Interactive;
5. Guilt Factor;
6. SAP HANA.

The future direction of Accenture entails the development of SISs through the adoption of traditional wargaming theories and scenario planning. The aim is to help the company develop better competitive strategies with a wide range of alternatives.

A press release

Corporate development & growth: Service overview

Accenture helps senior executives develop and implement sustainable competitive strategies successfully.

Overview

At Accenture, we still believe that strategic planning is important, however, refinements to traditional strategy processes are needed in light of the current business environment.

Our new global economic reality has important business implications in several key areas; customer values and buying behaviour has changed substantially, power dynamics in the value chain continue to shift, and the competitive landscape is also different. In addition, new financial and environmental regulations threaten to distort existing markets.

While there have been dramatic shifts in the normal operating environment, we believe the fundamentals of strategic planning still apply. Tactical decisions should always be aligned with a high-level strategic plan based on clear objectives. While reactive strategies might work in the short-term, it is the long-term strategies that will generate, and ensure sustainable value creation well into the future.

Why Accenture

We help companies develop a more comprehensive approach to strategy formulation that accounts for their ambition and risk tolerance, helping them to choose among the wide range of options they face, enabling them to align their organizations with their chosen strategy and allowing them to measure their performance against their strategic goals and make adjustments as needed.

Our rigorous approachwhich includes our next generation wargaming methodology: a combination of traditional wargaming theory and scenario planninghelps to ensure management develops and implements an agile, actionable and outcomes-oriented competitive strategy which takes into account a wide range of future alternatives. Our experience shows organizations will implement a much higher proportion of competitive recommendations resulting from our approach to corporate development in contrast to more traditional approaches.

Our deep skills and broad experience across strategy, coupled with our ability to deliver on a global scale, provide you with practical solutions that will help you to shape and execute your corporate direction  balancing risk with reward and opportunity with uncertainty  ensuring that you have the right strategy and the right planning mechanisms in place to allow you to compete successfully in a volatile marketplace.

Conclusion

It is noted that SISs help companies realise their set goals and generate value. The systems enable organisations to change their goals, modes of operation, and products. In addition, SISs are essential in the development and enhancement of environmental relationships. Accenture uses a number of SISs to increase its value by customising products, improving reliability, and modifying business strategies and structures.

References

Cassidy, A 1998, A practical guide to information systems strategic planning, St. Lucie Press, Boca Raton, FL.

Corporate development & growth: service overview. 2016. Web.

Gallaugher, J 2010, Information systems, Flat World Knowledge, Nyack, NY.

Hunter, M 2010, Strategic information systems: concepts, methodologies, tools, and applications, Information Science Reference, Hershey, PA.

Hussain, Z, Greasley, A, Laudon, K & Chaffey, D. 2008. Strategic information systems, Pearson, Harlow.

Investor relations. 2016. Web.

Long, S, Jacques, D & Kepos, P 2014, International directory of company histories, St. James Press, Detroit, MI.

Newman, N 2006, Vault guide to the top 50 management and strategy consulting firms, Vault, New York, NY.

Pearlson, K & Saunders, C 2013, Managing and using information systems: a strategic approach, John Wiley & Sons, Hoboken, NJ.

Piccoli, G 2012, Essentials of information systems for managers, John Wiley & Sons, Hoboken, NJ.

Poniatowski, M 2010, Foundation of green IT: consolidation, virtualisation, efficiency, and ROI in the data centre, Prentice Hall, Upper Saddle River, NJ.

Rainey, D 2006, Sustainable business development: inventing the future through strategy, innovation, and leadership, Cambridge University Press, Cambridge.

Saunders, C 2015, Business development with information systems, Wiley & Sons, New York.

Tomlinson, B 2010, Greening through IT: information technology for environmental sustainability, MIT Press, Cambridge, MA.

Velte, T, Velte, A & Elsenpeter, R 2008, Green IT: reduce your information systems environmental impact while adding to the bottom line, McGraw-Hill, New York.

As a rule, a group goes through five stages of development before becoming a team, each of which implies its functions and goals. The dynamics of the groups behavior and development changes as it moves from one stage to another, and it requires different actions for greater efficiency. The team development stage model was first introduced by Tuckman, who published four stages of team development, including forming, storming, norming, and performing in 1965 (Tang, 2019). Consequently, he also added an adjourning stage that completed the process.

At the forming stage, participants get acquainted with each other and become familiar with the scope of the project. According to Tang (2019), at this point, team members are anxious and adopt wait-and-see attitude (p. 38). They begin to set the rules of work, try to determine the role each of them should play, and the expectations regarding the quality of the project. At this stage, interpersonal relationships, norms of responsibility, and perceptions of ultimate goals are established. This stage ends when the participants start to feel that they are part of the group. The storming stage is characterized by internal contradictions in the team.

Participants agree that they are part of the project team, but resist the limitations that the project and the team impose on their individuality. At this stage, the regulatory function of a leader who consolidates the teams efforts and creates a framework for work is crucial. When these disputes are resolved, the project managers leadership is recognized, and the team moves to the next stage.

Close relationships develop at the norming stage, and the team achieves cohesion. The sense of community and shared responsibility for the project is growing. As a result, the team structure is strengthened, and the team develops a conventional system of expectations and criteria on how its members should work together. According to Tang (2019), at performing stage, team members are trained, competent and able to solve their own problems (p. 39). The team achieves full synchronization, which contributes to successful functioning. This is the stage at which participants work and results are progressing, and the central part of the project is being executed. The adjourning stage aims to progressively complete the project, maintain the deadlines, and bring the project details to the best possible state.

Reference

Tang, K. N. (2019). Team development. In Leadership and change management (pp. 37-46). Singapore: Springer.