Making a decision on which business to start is often a tedious task due to all the research that is involved and the necessary groundwork that has to be undertaken before the business takes off. However, the choice of a fast-food franchise looks bright especially considering the encouraging trends in the world food industry and particularly Canada.
The food industry is a global business that is dependent on economic trends and dynamics that are mainly determined by individual national markets. Fast-food franchising, while well developed in Canada still has a lot of potential for growth in the country. The future of this franchising business venture therefore is secure but, it highly depends on the effective execution of the business plan.
Expansion to other cities like Montreal, Vancouver, Calgary and Ottawa
As our business plan stipulates, the company plans to open franchise stores in cities like Montreal, Vancouver, Calgary and Ottawa. It is important to note that opening of new franchise stores is a crucial part of our plan and will greatly impact the liquidity and net worth of the whole business operation.
While care will be taken in the licensing of new franchise stores, it is important to point out that the one-time entry fee that will be paid by new franchisers will complement the company in its marketing, training and support efforts in order break-even within the given timeline.
One of the most important growth initiatives that the company will capitalize on is the lack of recognizable fast-food brands in the small urban places of the country. The company understands that sustained economic growth in the country in the next ten years will transform these small towns to major urban centers with high populations.
Company status in ten years
One of the companys main goals is to have at least two franchise stores in every major urban center in Canada. Most small and medium franchise stores break-even within one year after being set up. In ten years, it is expected that the company will be running numerous franchise stores that will be operating to full profit.
Additionally, there are plans to expand the franchise operation beyond Canada with the primary target being the United States and the UK. While the feasibility study of a possible expansion beyond the countrys borders is yet to be finalized, it is hoped that the growth rate of the business in ten years will be fast enough to fuel such an expansion. Mergers and acquisitions are some of the ways that will be explored at the time in the quest for expansion of the business.
Control of the fast-food market
The Canadian food market is the second biggest in the world with a total worth of US$100 billion. The Canadian fast-food market on the hand is approximately worth C$ 20 billion. In the Canadian fast-food franchise market, Tim Hortons is the market leader and even trumps McDonalds.
In ten years when the company goes global, it is hoped that the company will post sales in excess of C$ 100 million equivalent to 1% of the current total fast food market in Canada. The company anticipates new entrants into the Canadian fast-food market hence the cautious optimism of setting our target at 1%. Ultimately, the company hopes and is capable of controlling a sizable share of up to 5% in ten years or less.
South East Queensland is located in Australia. It is a major economic hub. Business, tourism and agriculture are some of the economic processes within the region. It has an adequate transport network. There are busy towns within the area. Because the area is a rich tourism destination, there are spontaneous food and wine festivals.
These have potential economic gains for the area. Michael Porter provides an analytical business tool. Porters five forces model is applicable in the examination of business environments (Lamont, 2009). This report uses the Porters five forces to analyze the South East Queenslands food and wine festivals task environments.
Potential Entrants
The food and wine festivals have grown popularity. New entrants are likely to venture into this operation. Ideally, this might interfere with the smooth business processes. It might also interfere with the revenues gained by the task environment. The popularity of the events might lead to the influx of different festivals in the same area. New entrants break the observable monotony.
This process might equally affect the task environment. Increased globalization enhances the rate of information sharing (Franklin & Martin, 2008). This might speed up the rate of invasion into the area by other external festivals. Notably, this process might impair the capacity of government agencies to offer critical services.
However, the suppliers are more likely to benefit due to increased demand. Competition may increase. Indicatively, the influx also leads to high numbers of clients. The investors have to venture more into innovative services. Evidently, this force has a very high effect. This is because it influences many factors
Suppliers
Suppliers influence the business processes within Queensland area. However, they face significant manipulations from the effects of demand. The possibility of new entrants into the food and wine festivals dictate demand levels. The suppliers can dictate the type of food product or wine to avail for the festivals (Lamont, 2009).
Consequently, this determines the rate of influx and the presence of newcomers. The supply trends are also likely to dictate the periods of holding these festivals. For instance, food material from the farm may only be available during certain times.
The suppliers also have the capacity to dwindle the success of the festivals. Such cases may emanate from lack of necessary goods in the market. The supplier force is medium. This is because in a typical market, buyers access perfect substitutes.
Substitutes
Substitutes have potential threats on businesses. This applies both to the festivals and to the task environments. There is high probability for the rise of other important festivals within the area. Indicatively, this is likely to interfere with the festivals. This negative trend may adversely affect the consumers, suppliers and the surrounding community.
The possibility of product or service substitute may also bear negative impacts. This might be observable in the business community within the South East Queensland area. The substitutes influence the goods present within the market (Kliman, 2010). Consequently, this might dictate the kind of festival to hold within the South East Queensland. Analytically, this process might either have a negative or constructive point.
This observation is applicable to all the task environments. The coincidence of likely events during the festivals might be disastrous to all stakeholders. Suppliers are likely to realize reduced sales. In addition, investors within the sector may also suffer low-income revenues. The substitute force is medium. It is largely dependent on the likelihood of occurrence of a substitute.
Customers
Customers are important in shaping the market and business environments. The presence of customers in South East Queensland is important. It enables the occurrence of the festivals.
Notably, without customers, these events cannot occur. Their bargaining capacity is crucial in diverse ways. For instance, they might lower the prices within the market. Consequently, this creates an eminent loss to the suppliers.
Investors may also lose their profit due to low market prices. There are certain customer-related factors that might be very detrimental (Lamont, 2009). Particularly, this might be applicable when these factors act in synergy with other substitute elements.
The customer force is medium. This is because effective firms or market dealers have the competency to employ transformative strategies in winning customer loyalty.
Industry Competitors
All business units harbour stiff competition. South East Queensland may face stiff competition from other hospitality events. The application of high quality food and wine services from new entrants depicts a potential source of threat. Competition may also affect all the stakeholders involved in the events. However, it may not be possible to have these events occur within one day or in a season.
The festival organizers have to implement more innovative and strategic plans to counteract any form of competition. The force is low due to many reasons. Foremost, competition is an ongoing process. There is no business environment without competition (Connell & McManus, 2011).
Therefore, adequate preparation is appropriate. Notably, there might be instances when the business operations become redundant. The festival organizers must be keen to note some of these important factors.
References
Connell, J. & McManus, P. (2011). Rural revival?: Place marketing, tree change an regional migration in Australia. Farnham: Ashgate.
Franklin, M. & Martin, B. K. (2008). My brilliant career. Peterborough, Ont: Broadview Press.
Kliman, T. (2010). The wild vine: A forgotten grape and the untold story of American wine. New York: Broadway Paperbacks.
Lamont, K. (2009). Wine and food. Crawley, W.A: University of Western Australia Press.
Management careers offered by the National Restaurant Association (NRA) are those of Banquet Manager, Bartender, Beverage manager, catering manager, counter server, dining room manager, executive chef, food and beverage director, human resources manager, kitchen manager, public relations manager, Sous Chef, wine steward, server, pastry chef, and pantry cook.
Responsibilities of the baker are limited to bakeshop, which is found within the food service establishment, while banquet manager, on the other hand, plans and oversees parties, banquets, and conventions, which the restaurant s/he works for hosts (Stensson & Salabes, 2012, Para. 8).
S/he solicits banquet business and ensures that customers are satisfied. His/her main duty is that of ensuring that clients specifications are strictly met. Bartender mixes ingredients for cocktail. S/he also takes orders from the patrons coupled with washing and sterilizing glassware. Beverage managers on their part oversee smooth management of the bars. They have to ensure that the bar is profitable.
The catering manager is responsible for catering functions. S/he also works with sales personnel with a view to generating new business together with handling customer complaints and ensuring that such complaints are remedied.
The dining room manager coordinates foodservice activities coupled with supervising and training of employees as well as planning menus and related activities, while executive chef is responsible for all activities that take place in the kitchen (NRA, 2012, p.8).. S/he ensures that safe and sanitary conditions are observed in the kitchen establishment.
Management careers offered within Lodging and Food and Beverage Association (AH&LA) include accounting and finance, administration, airline staff, catering, chef, consultancy, corporate office, cruise ship staff, customer service, event manager, director of operations, warehousing, education, maintenance, entertainment, food and beverage, gaming and healthcare.
Others include hotel manager, human resources, kitchen manager, maintenance manager, marketing/public relations, management information systems, operations manager, planning, purchasing, restaurant manager, revenue management, rooms, sales, security, spa management, transportation, travel counselor, and unit manager.
The unit manager can be in-charge of operations or perform any other duty as defined within his/her job description. Individuals with managerial duties confined to the rooms can discharge duties related to front office/guest services, housekeeping, and reservations. Some can be rooms directors.
Food and beverage managers can be in-charge of beverages, catering, convention services, and kitchen and restaurant management. There are myriad categories of chefs including Sous chef, pastry/baker chef, executive chef, Chef de Partie, and Banquet (AH&LA, 2012).
The National Restaurants Association is an umbrella body of all Americas restaurants whereas American Hotel and Lodging Association (AH&LA) represents all sectors and stakeholders in the lodging industry (AH&LA, 2012, p.6).
The general management positions within AH&LA, as earlier mentioned, broadly cover the areas of club management, financial management, food and beverage the front office, guest service, housekeeping, human resources, maintenance and engineering, risk management, sales and marketing, and spa (AH&LA, 2012).
The general management positions within the National Restaurants Association are those of general manager/unit manager (full service) and general manager/unit manager (quick service). The former coordinates food service activities of the restaurant. S/he estimates food and beverage costs, requisitions, equipment, and food and beverages.
S/he facilitates cleaning and maintenance of equipment and facilities coupled with ensuring that health and safety regulations are maintained (NRA, 2012, p.4). In addition, s/he can direct hiring, training, motivation, and termination of services rendered by the employees together with developing marketing strategies to increase business.
The later nevertheless maintains overall management responsibilities for food service unit. S/he directs, coordinates, and participates in preparation, cooking, wrapping or packaging of food prepared by the establishment where s/he works (NRA, 2012, p.5). S/he also assembles food orders.
The National Restaurants Association core mandate is limited to research, education, and training of their members about different aspects of management through their manage first program . The program is tailored for colleges, universities, restaurants, and food service companies.
Participants taking part in these programs are trained on aspects of controlling food service costs, management practice leadership, shift management, training and development, staffing, hiring, recruiting, and selection, administration of human resources and employee relations.
Participants are also trained on food safety and sanitation, facilities and equipment management, customer service, food quality, inventory, and purchasing. Managerial accounting and budgeting is normally offered to those with managerial accounting background. Other competencies passed on to trainees include nutritional issues, business promotions, marketing, and advertising.
According to the American Hotel and Lodging Association records, out of the 1.6 million jobs that were created during 2011, over 7 per cent came from the travel industry. The travel industry has so far expanded its employment base by 119, 000 positions. The jobs that were created in travel and tourism industry were double that of construction and real estate industries combined.
The department of labor records point to a sixth consecutive quarter of travel and tourism employment growth. These records clarify that the trend would be positive for the next ten years. Employment in the lodging industry has risen by 3.4 per cent in the most recent report, which is the largest rate of growth ever witnessed this year.
The travel industry gets $759 billion in sales and spends $ 188 billion in wage bills of its 7.4 million employees (AH&LA, 2012). The travel industry boasts of a capacity to employ even more people hence a positive path to Americas economic recovery. The travel industry generates $ 118 billion in federal, state, and local taxes. The lodging industry is among the top ten employers in 48 out of 50 states within the United States.
Given that the lodging industry is interlinked with transportation, restaurants, agriculture, manufacturing, and retail sectors, these sectors of the economy also generously gain from it in terms of revenue generation and job creation. Approximately, for every 35 international tourists who come to the United States, one American job is created (AH&LA, 2012, p.8). This aspect benefits the national economy and the local communities.
The National Restaurants Association new analysis, on the other hand, indicates that the restaurant industry is the leading creator of job opportunities in the United States. The drinking place employment, according to NRA, moved up to 2.7 per cent in June 2012. It doubled the U.S. employment rate at that time, which was at 1.3 per cent with restaurants creating 116, 000 more job opportunities in the first half of 2012.
Since the rolling out of employment recovery in March 2010, the restaurant sector alone has created 575, 000 jobs. The restaurant industry, despite having slowed down during the second quarter of 2012, is still the net contributor to economic recovery as it is the second largest private sector employer.
Its workforce is almost ten percent of the U.S. workforce. The National Restaurants Association projects that, in the next ten years, it will have created 1.4 million positions (Stensson & Salabes, 2012).
This scenario will make the total number of Americans employed in this sector 14.3 million. Some of the fastest emerging positions are those of supervisors and food and beverage serving workers Stensson & Salabes, 2012, Para. 9)
For the National Restaurant Association and American Lodging and Hotel Association to recruit and retain management talents efficiently, it has to develop clear job descriptions so that it may know the skills of the potential employees. Only employees having superior potential should qualify for the selection process.
Employees who successfully pass the interview should then undergo on-going coaching and mentoring coupled with the creation of a system of getting feedback on their progress. The management of these companies must also conduct quarterly performance development planning, and design a proper and effective compensation and recognition systems.
Appreciated employees will always concentrate on doing their work, and will not contemplate leaving their current job for greener pastures in other rival industries. The NRA and AHLA should consider paying talented employees above market rates.
These two organizations can also provide promotional and career development opportunities for their employees other than the on going coaching and mentoring programs. They should also consider holding exit interviews to understand why some of their valued employees decide to leave.
This interview will help employers put in place systems that can help in retain talented management employees. In conclusion, these two bodies should centralize their HR efforts, allow innovation around key functions like workforce by developing specialized practices within recruiting, and engage in focused recruiting.
Reference List
AH&LA. (2012). The 2012 Issue Briefs. Web.
NRA. (2012). Whos Who: Job and Career Possibilities in the Restaurant Business. Web.
Stensson, A., & Salabes, R. (2012). National Restaurant Association Reports Continued Restaurant Job Growth Outpaces Overall Job Growth Rate by Two to One. Web.
Pepsi Cola was established in the late 19th century by Caleb Bradham, a druggist who invented the first Pepsi-Cola formula. Today, the company is divided into four main segments: PepsiCo Americas Beverages, PepsiCo Middle East and Africa, PepsiCo Europe, Pepsi Co Americas Foods.
Currently, the companys portfolio brands is made up of isotonic sports drinks, enhanced water, coffee drinks, carbonated soft drinks and ready-to-drink teas. Some of the popular brands produced by PepsiCo Americas Beverages are Propel, Aquafina water, Diet Pepsi, Sierra Mist, Tropicana juice drinks, Tropicana Seasons Best, Slice and Tropicana Twister (PepsiCo Family 2).
The Coca-Cola Company and Pepsi Cola are among the biggest and most profitable firms in the world. The world head quarter of the Coca-Cola Company is located in Atlanta, Georgia while the head office of Pepsi Cola is in New York.
The global operations of the two firms are as a result of the enormous investments they have made in their worldwide marketing strategies. Although both companies target the same market, their marketing policies are quite diverse (InfoRefuge 1).
Coca-Cola and Pepsi Cola have implemented several business strategies to maintain a competitive edge in the market. For example, the Coca-Cola FEMSA is a joint venture that seeks to implement multi-segmentation policies in the firms critical markets.
The partnership also seeks to introduce pricing and packaging strategies via channel distribution and attaining operational competencies throughout the firm (Coca-Cola FEMSA 1).
Coca-Cola and PEPSI are currently collaborating to develop an innovative business model that will enable them capitalize on growth opportunities (such as the apparent prospects in the non carbonated beverage sector in Latin America).
Through the joint venture, Coca-Cola Company and Coca-Cola FEMSA acquired Jugos de Valle, a prominent juice producer firm in Brazil and Mexico. The acquisition of this company will undoubtedly increase the firms presence in the Latin Americas beverage market which is currently non-carbonated (Coca-Cola FEMSA 6).
As a joint venture, the firm seeks to enhance its relationship with consumers. For instance, in Mexico, the Coca-Cola FEMSA company is collaborating with some of its partners to improve its relationships with consumers from diverse cultures.
Some of the firms programs include modifying its pricing model and repackaging its portfolio products on the basis of the socio-economic features of the local market (Coca-Cola FEMSA 7).
In order to satisfy consumers diverse tastes, Coca-Cola FEMSA has introduced one-stop retail stores for its consumers in Brazil by presenting an entire set of beverage assortment that include bottled water, carbonated soft drinks, beer and juices (Coca-Cola FEMSA 8).
One of the early problems that Coca-cola and Pepsi Cola faced was the declining demand for sugar-laced beverages. As a result, the volume of sales for their brands began to shrink in the United States, their largest and most profitable market.
Faced with numerous challenges, PepsiCo decided to acquire two biggest anchor bottlers: PepsiAmericas, based in Minneapolis; and Pepsi Bottling group, based in New York.
The merger will thus enable PepsiCo Company to implement its much publicized Power of One business plan to achieve competitive advantages in the market (Kaplan 4).
Over the years, PepsiCo has been experiencing inconsistencies in consumer demands occasioned by the economic crisis in 2008. The firms direct store delivery scheme may be appropriate when moving beverages with a limited shelf life.
However, warehouse delivery is more suitable for the purposes of introducing new categories. The presence of combined beverage system will thus enable PepsiCo attain flexibility in its business operations and satisfy its low-end consumers (Kaplan 18).
PepsiCo and Coca-Cola are currently using internet to market their products. Consumer relationship management (CRM) is one of the business strategies that both firms have adopted in their websites.
The CRM concept is used by these companies to create and sustain long-term associations with consumers by offering exceptional customer products and services.
Telephone numbers and e-mail links are provided to enable their costumers to make inquiries about the companys products. Moreover, both websites have a Frequently Asked Question (FAQ) page where customers can access answers to many queries about the company.
This strategy aims to expand the customer base and boost sales revenues of the two companies in the future (InfoRefuge 12). Demand management is also another crucial strategy employed by Coca-Cola and PepsiCo in their websites.
The strategy entails creating demand for their beverage merchandises by allowing customers to modify the website page after registering. While modifying the site, the customer is allowed to select and save icons that are available on the web page.
As a result, this method enables both firms to advertise their merchandise to a particular segment of its customers, thereby increasing demand for their products (InfoRefuge 13).
Social media offers a new platform of communication between customers and marketers. Given that advertisers are in dire need of inventing ways to track their target market, social media thus offers an ideal opportunity to markers to achieve their goal (Miller & Lammas 1).
According to current statistics, the number of advertisers using the social media to promote their products is on the rise. This is due to the fact that many consumers, especially the youth, use social media as a platform for communication.
For example, over 140 million in the United States, about 30 million Brazilians and approximately 45 million Japanese used blogs and social networks to communicate (Miller & Lammas 2).
Indeed, it has been suggested that the conversion of social media to a major advertising platform is as a result of a combination of several factors.
These include: economic factors for example users ability to create User Generated Content; technological factors such as bandwidth; and social factors for example the recent emergence of techno savvy youth consumers with considerable financial powers.
It is thus evident that marketers such as Coca-cola and PepsiCo have employed social media to track consumers and market their products successfully.
As a matter of fact, the impact of social media promises to bring about a revolution in the marketing strategies. For example, PepsiCo did not market its Pepsi merchandize during the 2010 Super Bowl but rather opted to use a digital social media platform.
Thus, when customers browse the internet for information about a brand, they are also able to read opinions and reviews about a product from other customers (Miller & Lammas 3).
The significance of social network to marketing strategies is one that cannot be ignored. Since many consumers are using social network as a platform for communication, it is critical that Coca-Cola and Pepsi Cola employ this new mode of communication to woo more consumers.
One major advantage of using social media in marketing strategies is that it is more affordable if compared to the conventional means of advertising. Furthermore, the marketers are able to assess and respond to consumers feedbacks about a product.
Works Cited
Coca-Cola FEMSA. Competitive Advantages . Company Strategy and Competitive Advantages. Web.
InfoRefuge. Coca-Cola and Pepsi Cola . A Web Marketing Comparison. Web.
Kaplan, Andrew. The Power of One. With the merger of its two largest bottlers behind it, PepsiCo sets its sights on reaping the benefits from the deal . PepsiCo Inc. 2010. Web.
Miller, Rohan and Lammas, Natalie. Social Media and its implications for viral marketing . Asia Pacific Public Relations Journal 11 (2010): 1-9.
PepsiCo Family. The PepsiCo Americas Beverages. PepsiCo Inc. Web.
Headquartered in Austin, Texas, Whole Foods Market Inc. is a publicly traded American food supermarket chain, which specializes in the sale of natural as well as organic foods. The firm was established in 1980. Specifically, the incorporation trades in grocery, meat, poultry, bakery, beer, wine as well as body, floral and pet products.
Over the years, maintenance and adherence to quality standards in the industry have formed the cornerstone of the firms operation. The firm operates in over 300 stores in the United States, Canada and the United Kingdom (Whole Foods Market, 2012).
Values of the Firm
Whole Foods Market Inc. conducts and operations are based on the provision of the highest quality natural as well as organic produce. Besides, gratification and captivation of consumers through meeting the expectation of clients are also core values of the firm. Additionally, wealth creation through profits and growth via voluntary exchanges with guests is a significant value of the firm.
Moreover, the corporation engages in environmental stewardship through supporting sustainable agriculture, participating in recycling programs along with encouraging environmentally sound cleaning programs.
The philosophy of mutual dynamism and the abilities of team members are essential for the success of the firm (Whole Foods Market, 2012). As such, Whole Foods Market Inc. inspires contentment and distinction of the team members.
Mission and Vision
The firms mission is centered on the stimulation of liveliness along with the comfort of every individual by offering the highest quality, least processed, most flavorful and naturally preserved foods. On the other hand, the vision of the enterprise entails becoming the nationwide trademark, which is indistinguishable with natural and organic foods in addition to growing into the finest food chain store.
The definition of the firms mission encompasses the slogan of Whole Foods, Whole People and Whole Planet. In principle, Whole Foods indicate that the firm obtains products both locally and internationally from small and distinctively committed food specialists. Whole People entails that the firms team is made up of qualified individuals.
Regarding Whole Planet, the corporation acknowledges the existence of an association amongst individual lives, communities along with the environment. Essentially, ensuring a sustainable future characterized by human resourcefulness, multiplicity along with individual choice forms the basis of the firms vision (Whole Foods Market, 2012).
Current Set of Strategic Goals
Provision of Healthy Products to Clients
The fundamental tactical goal of operations encompasses the provision of products that have no additives, oil and sugar as well as other chemical elements, which are normally present in treated foods. In other words, the firm aims to offer natural foods that have low calorie levels. Over the last two decades, the firm has continued to encourage naturally raised meat along with poultry products.
The corporation has also been involved in enlightening clients on the side effects of added hormones and antibiotics in products. As such, the firm in conjunction with ranchers and farm producers undertakes the development of hormone and antibiotic-free products for clients to purchase.
In fact, the enterprise ensures that manufacturers deliver goods that meet the quality standards of the firm (Hill & Jones, 2012). Whole Foods Market Inc. recognizes that healthy products are significant in enhancing individuals well-being as well as lifespans thereby attracting more clients.
Strategic Acquisitions
Undeniably, the success of Whole Foods Market, Inc. can be attributed to the purchases of various enterprises that the firm has earned over the past. For instance, the corporation continues to buy different similar entities in order to increase its market base and remain competitive.
For example, in the 1990s, the firm bought several natural food stores including Wellspring Grocery, Natures Heartland, Fresh Fields Markets and the Merchant of Vino.
Such acquisitions have enabled the firm to expand operations thereby accruing increased proceeds. More importantly, the merger between Whole Foods Market Inc. and Wild Oats Markets in 2007 enabled the former to assume over 100 stores of the latter in the US, British Columbia and Canada.
Critical Assessment of the Competition and the Competitive Environment
Competition
Whole Foods Market, Inc. faces intense competition from established grocery food chains including Trader Joes, Wal-Mart and the Safeway Lifestyle. First, Trader Joes, a Monrovia-based grocery firm dealing in private label staple foods, organic foods and specialty products.
Additionally, the firm boasts of over 400 stores in the US. Second, Wal-Mart Stores Inc. is an international retail corporation with over 11,000 discount department and warehouse stores. The establishment trades in footwear specialty, warehouse club, discount stores and supermarkets. Last, Safeway Lifestyle is a supermarket chain headquartered in Pleasanton, California.
The firm deals in bakery, grocery, lottery, pharmacy, photographic processing, seafood, snack food, liquor and flowers. Moreover, the corporation boasts of over 1330 stores in the US.
Such firms offer intense competition to Whole Foods Market in terms of market share since the firms offer similar products to clients. The competitors are significant in enhancing the quality of products offered in the market in order to attract consumers (Hill & Jones, 2012).
Competitive Environment
The analysis of remote and operating environments of Whole Foods Market Inc. utilizes PESTEL and Porters five forces as well as SWOT analyses.
PESTEL Analysis
A PESTEL analysis encompasses the political, economic, social, technological, environmental and legal factors affecting the firms operations. Regarding political factors, Whole Foods Markets Inc. sells products within and without the US. As such, the macro-operations of the firm are affected by tariffs imposed on products.
On the economic front, the pecuniary downturn experienced in the US negatively affected the firms profits and growth. The effect was decreased rate of turnover. Besides, on sociocultural factors, the firm makes sure that the requirements of clients who are currently concentrating on natural and healthy food are met.
Concerning the technological factors, Whole Foods Market Inc. utilizes the innovative expertise that enhances customers contentment. Specifically, the firm uses cheaper and environmentally efficient technologies, which improve the operations of the enterprise. On the environment front, the corporations operations adhere to environmental practices and regulations touching on the green and safe environment (Hill & Jones, 2012).
Legally, the firm had to deal with an antitrust suit by the Federation Trade Commission of the US due to the acquisition of Wild Oats because of the possibility of losing competitiveness within the market. In other words, the firm experiences legal constraints in its operations.
Porters Five Forces
Threat of new entry
Given the elevated outlays in addition to a low-margin environment of the grocery industry, the competitive landscape is skewed towards great establishments, which function proficiently and offer goods for sale in large volumes. In this regard, the entrance of new firms into the grocery industry is truncated.
Bargaining power of suppliers
Large firms within the grocery chain trade control higher proportion of the market. Additionally, the control of larger segments of the market gives power to the World Foods Market Inc. since the firm can create scarce strategies to the suppliers by switching to potential vendors that abide by its strict quality standards effortlessly and cheaply (Bamford & West, 2010).
In principle, the suppliers in the grocery industry enjoy low bargaining power.
Bargaining power of buyers
Consumers can effortlessly surrogate the products and services offered by the firm in the grocery industry through purchasing the products provided by other companies in the industry. As a result, the organizations share of the market can be abated. Therefore, the buyers have high bargaining power in the industry.
Competitive rivalry
Companies operating in the grocery industry are very aggressive. However, due to the market leadership capabilities of Whole Foods Market Inc. in the industry, establishment of operations of the firm is uncomplicated (Bamford & West, 2010).
In other words, the firm utilizes its technological advancements as well as financial strengths to increase its competitive edge over other firms. In this regard, the rate of competition in the industry is high.
Threat of substitute products
Companies in the grocery industry offer diverse and similar products. The existing firms in the industry offer convenience and low prices where clients can obtain healthy products thereby augmenting substitute threats. In principle, the level of threat of substitution is high due to increased competition in the grocery industry.
SWOT Analysis
Strengths
The fact that World Foods Markets Inc. holds the largest grocery chains in terms of value enables the firm to benefit from the leading competitor positioning. In addition, the firms broad geographical reach increases the capabilities of broadening the customer base.
Moreover, the firm has a diverse brand portfolio, which consists of various trademarks of organic and natural foods. The firm also offers excellent and high quality services to customers (Whole Foods Market, 2012).
Weaknesses
The brand image of the firms products is often affected by product recalls. In fact, recurrent product recalls due to contamination normally results into the stumpy devotion of clients along with brand equity. Further, the firm has a weak presence in both developed and emerging economies with only six and five stores in Canada and the UK respectively.
Opportunities
The firm is offered with the prospects of augmented demand for organic products. Specifically, over the last decade, the sales of organic foods have recorded massive increases. Besides, the firm should take advantage of the increasing approval of private label brands to enhance the rates of turnover (Whole Foods Market, 2012).
Threats
The major threat facing Whole Foods Market Inc. results from augmented competition emanating from existing chain stores including Wal-Mart and Safeway Lifestyle as well as Publix. Additionally, the economic recession experienced in 2008 was characterized by increased food costs and inflation rates.
The slump in economy drastically reduced the disposable income which in effect decreases the buying power of clients. As such, the firm was forced to offer deep price cuts leading to cannibalization of current sales, lower proceeds and turnover limits (Bamford & West, 2010).
Recommendations
Given the challenges emanating from the economic recession, Whole Foods Market Inc. and ABC have to change strategic plans in order to augment financial performance and competitiveness. First, reassessment of services, which are critical in the operations of the firms, is essential.
Essentially, the re-evaluation will enable the firms to cut further costs by doing away with outlays that are insignificant in the organizations undertakings. Second, the firms should rebrand their trademarks in overseas stores through developing quality brands along with principled practices to thwart the perception of ostentatious, impersonal and expensive services among clients.
Third, the firms should also acknowledge the importance of advertising and marketing on increasing the proceeds of establishments and spend more on advertising and public relations. Last, the firms should enter into untapped markets and utilize such opportunities instead of engaging in flooded markets along with cannibalizing present chain stores.
References
Bamford, C. E., & West, G. P. (2010). Strategic management: value creation, sustainability, and performance. Boston, MA: Cengage Learning.
Hill, C., & Jones, G. (2012). Strategic management cases. Boston, MA: Cengage Learning.
Having ordered a diner, I was provided with wrong food which was delivered for too long time. Having made an order, I was promised that an order is going to be delivered within a short period of time which comprised about one hour. My order was delivered within two hours and when I opened it, I saw that it was totally wrong.
Having called to the Grub Hub restaurant, I was told that a courier was a new employee who does not have experience. The restaurant promised to solve the problem within the shortest period of time, but I was too hungry to wait for a new order, therefore, I agreed to eat what I was brought. In 30 minutes Grub Hub delivered a dessert to my house which had to be an apology for a wrong delivered order.
Comments
I suppose that hiring a new employee, the company should teach him/her the specifics of the service. Moreover, the company should be responsible for their employees and the check of the service quality. The dessert as apology was a good step, however, this is not the way out. The company cannot make such mistakes, deliver the orders too late and try to cover a failure using another order which I did not order. I am not allowed to eat sweets, that is why their delivered spoiled my mood up to the end.
Analysis
The market of fast food is too varied and the competition is high as well. To remain successfully developing companies, such failures cannot be made. It is important to serve the customers fast and quality.
The variety of offers at the food market allows the customers to choose the services, therefore, one failure may lead to the refusal of many people from the service as I am going to tell my friends about the accident and I think that some of them will refuse using this service being too demanding. As for me, I will give this service one more chance. The company is responsible for its failures and tries to improve negative experience by means of responsiveness and an attempt to create a positive impression.
Future Action Steps by Management
The manager of the company should create the teaching hours for those who make failures and make the newcomers to listen to the lectures of the experienced couriers. Moreover, a day with an experienced employee will give practical experience for those who are new in the service.
The company should not refuse from the services of inexperienced couriers, they should just spend more time on their teaching. To make sure that each employee is highly motivated, the manager should create a system of motivation and encouraging. I offer to create a feedback link on the site to give the customers an opportunity to express their point of view about couriers.
Those couriers who get many positive feedbacks should be offered a financial support at the end of the month. The fines for those who have many negative feedbacks should also be. Therefore, the employees will be financially motivated and the service delivery may be improved.
Key Services Marketing Concepts
Failure, responsibility, quality, fast delivery, experience, development, high competition, responsiveness, timeline
Integrated marketing and communication (IMC) planning is a comprehensive process which involves competitors, customers and the communication methods used by a firm. Castronovo and Huang (2012) indicate that it is through the analysis of these 3CS communication, customers and competitors that a business organization may be able to make decisions on its operations.
Indeed, business managers should have the right skills in IMC planning for them to be able to choose the appropriate market for their products. In this case, Pizza Hut has to concentrate on positioning its products strategically. The firm has to come up with a plan of making joint decisions due to the stiff competition, fight for customers and promotional techniques.
After making these important decisions, the firm should improve its mode of communication. Proper communication should comprise both internal and external movement of information within the entire company. Pizza Hut should then analyze its products and market positioning. It is more appropriate to choose both consumer markets and business markets.
In this case, the market conditions will allow the firm to choose product attributes that counter the products of their competitors. Suitable IMC components to be chosen for Pizza Hut include consumer promotions and media spending. These will give the firm the best results. Trade promotions and business to business spending are not good options because Pizza Hut is in a very competitive market (Taylor, 2010).
Pure consumer markets are not the best market for top players in an industry. Tosun and Yuksel (2009) note that target markets determine the possible results to be recorded by a given firm. McDonalds is best suited by the vast business market which is available in the larger part of its environment. On the other hand, a dynamic consumer based market is the most appropriate for the development of Pizza Hut. The latter is a business stage which calls for customers appealing techniques of service delivery. This can only be achieved in a market which has direct consumers. KFC can do well in dual markets given is consistency in the industry.
Tosun and Yuksel (2009) point out that effective product positioning can be achieved by incorporation of cultural symbols, product class, user classes, price and quality, product applications, competitor levels and general product characteristics. McDonalds uses price and quality positioning. This has been achieved through emphasis of value and quality without much price considerations. The food company also applies user positioning.
These two strategies have worked well although they can be maximally utilized through the addition of cultural symbols. The symbols will help to connect their brands with its users. Pizza Hut uses product attributes and competitors to position itself in the market. The contrasting of brands with competitors has been resourceful but can be more sufficient if it is employed together with another choice of pizza Huts products.
The category of customers which use the products should be diversified. KFC has specialized in market positioning using product class. This has come with the awards the organization has been able to achieve. Studies have revealed that this positioning strategy works well for food products and should therefore not be done away with (Taylor, 2010).
Major competitors in this industry such as McDonalds and KFC should use alternative media spending. This will give them the ability to subdue the strategies of other competitors. The most common media spending is already saturated with promotions of firms in the food industry and choosing another alternative will definitely be recommended. A firm such as Subway can only be able to compete effectively with McDonalds by the use of a similar product positioning.
The production of class products will enable Subway to get a firm market reputation as it is the case with McDonalds. In addition, appropriate IMC components for Subway will entail alternative media spending and trade promotions. Studies reveal that the best way to win market competition is by developing and implementing viable strategies (Castronovo & Huang, 2012).
References
Castronovo, C., & Huang, L. (2012). Social Media in an Alternative Marketing Communication Model. Journal of Marketing Development and Competitiveness, 6(1), 117-134.
Taylor, C. (2010). Editorial: Integrated Marketing Communications in 2010 and Beyond. International Journal of Advertising, 29(2), 161-179.
Tosun, N., & Yuksel, M. (2009). Managing Marketing Communications Strategically in a Developing Country. The Business Review, Cambridge, 13(2), 214-220.
What is your opinion of Gerrys approach to evaluating the output of the new product development group?
I support Gerrys approach to evaluating the output of the new product development group. Apart from changing new ideas into tangible products, developing new products comes with several other challenges. Wheelwright (2010) contends that insufficient funding is one of the crucial challenges that hamper the development of new products. In most cases, people charged with the development of new products fail due to a lack of sufficient funds to support market research among other procedures that should be followed prior to developing and introducing new products in the market. Furthermore, new products need further funding in a bid to remain in the market prior to generating sufficient finances to support production and marketing (Wheelwright, 2010).
With reference to Gerrys approach, he offered Maria as much budget as she and her group needed to facilitate the development of successful products. With such a provision, it is evident that Gerry had provided sufficient funds for the project. Furthermore, the significance of the project to the organization could be gauged from Gerrys move to choose the most creative person within the company to head the new project. However, the idea was not clear as characterized by Garths move to seek clarification.
Do you think that Maria is getting too sensitive to criticism?
Maria is getting too sensitive to criticism. In my opinion, Maria should accept Gerrys criticisms concerning the new product ideas. Constructive criticism is good for any form of development (DuBrin, 2012). First, Gerry has invested a significant proportion of the companys revenues to enhance the development of successful products. In most cases, managers fail to venture into the production of new products for fear of failure.
However, Gerry decided to take the risk as characterized by investing in new ideas. Furthermore, Gerry believed in Marias success by dismissing Garths remarks, which highlighted the possibilities of Marias failure in developing new products. According to research, creativity and innovativeness form a significant part of maintaining an organization in the market (Tillman & Cassone, 2013). With the prevailing competition in the market, organizations need to engage in innovativeness and create new products in a bid to gain a competitive advantage.
Such an argument is evident in Gerrys comment as he recognizes the possibility of Manchester Foods stagnation if the company fails to venture into the development of new products. With the dire need for new products, it is crucial for Maria to accept Gerrys criticisms as a way of saving Manchester Foods from stagnation or collapsing. Furthermore, Gerrys criticisms are positive and they are aimed at improving Marias ideas. For every idea that Maria gives, Gerry gives a reason to reject it, which underscores constructive criticism.
How do constraints on creativity enter this case?
According to Kaufman and Sternberg (2010), identifying problems entails a crucial step to enhancing creativity. However, it can also cause constraints, especially when it is difficult to highlight the prevailing problem (Kaufman & Sternberg, 2010). With reference to the case study, Gerry paved the path to creativity by identifying the companys problem. Manchester Foods needed to venture into the development of new products in a bid to avoid stagnation.
As a senior manager in the company, Gerry moved further to facilitate his new ideas by creating a new centralized group that would deal with development. In the second phase of product development, researchers advocate the need for a creative leader, who will guide other employees in the execution of the new project. In an organization that is planning to undertake the development of a new product, it is the responsibility of the executive management to follow up with the project leaders to check on the progress (Trott, 2011). In the course of follow-ups, the management gets the opportunity to respond to the rising challenges and advise project leaders on the way forward (Kerzner, 2013).
With reference to the case study and by considering creativity, Gerry chose Maria Sanchez to lead the group that would be tasked with the development of new products. Furthermore, Gerry chose Maria on the grounds of her previous experience and success. With the experience, it was evident that Maria would advise her colleagues in the course of developing successful ideas. Nevertheless, Gerry made routine visits to Marias station to enquire about her progress. By evaluating Marias ideas, Gerry identified the need for additional information that gave insight into solving the groups challenges. Furthermore, through Gerrys comments, Maria knew what to improve with respect to the groups ideas.
What is your hunch about the potential success of sudden Seafood and Razzle Razzberry?
The instant Seafood and Razzle Razzberry are not wise ideas, especially considering the changes in the consumption trends in recent times. Brownstein (2006) highlights that most people are cautious with their health status, and thus they are shifting preferences from processed to organic foods. Both instant Seafood and Razzle Razzberry are highly processed foodstuffs and they do not match the current consumption trends. With reference to the current changes in consumption, it is evident that Marias ideas cannot lead to the creation of successful products. The ideas will not translate into scalable businesses due to a lack of enough cash flow.
References
Brownstein, D. (2006). The Guide to Healthy Eating. New York, NY: Healthy Living.
DuBrin, A. (2012). Leadership: Research, Findings, Practice, and Skills. Mason, OH: Cengage Learning.
Kaufman, C., & Sternberg, J. (2010). The Cambridge Handbook of Creativity. New York, NY: Cambridge University Press.
Kerzner, H. (2013). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. New York, NY: Wiley.
Tillman, A., & Cassone, T. (2013). Strategic planning and new product development. Upper Saddle River, N.J: FT Press.
Trott, P. (2011). Innovation Management and New Product Development. Harlow, UK: Pearson.
Wheelwright, S. (2010). Managing New Product and Process Development: Text Cases. New York, NY: Simon and Schuster.
Meatpacking refers to the process by which goats, cattle, sheep, and hogs are slaughtered and packing them for transportation and sale. The meat industry in the United States is the largest agricultural-based industry and produces about 40 billion pounds of meat every year. The methods used to preserve meat are usually refrigeration, canning, and also smoking.
The change in consumer habits for meat is the main determinant of the future of this industry.
Meat Consumption in the United States and the World
Meat is the most consumed food worldwide, but its consumption has been affected over the times in the U.S and the world market in general. The fear of the E.coli bacteria and hysteria, which caused several deaths and heavy losses in the meatpacking industry, led to the retrenchment of several employees in the meatpacking industries following the closure of many small, poor functioning meatpacking industries in the United States.
The meatpacking industries in the U.S employ a lot of people, most of them being illegal immigrants from Bosnia, Vietnam, and even Sudan who provide ready cheap labor under poor working conditions and poor payment. This raises negative publicity from the local and foreign consumers over the hygiene and safety of the meat, which in turn affects the market and meat consumption as well.
Future of the Meatpacking Industries in the U.S
Since the Meatpacking industries in the U.S offers the greatest number of employment, about 520000 people, there is a need to improve the quality of production as well as the volume to cater to the available ready market; the United States is the major meat exporter in the world with the main Importers being Canada, Japan, and Mexico. The government should give grants to these industries in order to be able to increase production and meet the demand.
Meatpacking and food processing industries are very sensitive to the health of the people and therefore should ensure high standards of hygiene. The government should give grants to these industries so that they can employ highly skilled personnel. The meatpacking industries need improved meat inspection methods that were introduced in 2000, which are capable of detecting even invisible pathogens. They also require money to advertise, package meat well, and carry out consumer education programs aimed at promoting safe meat handling practices to reduce cases of E.coli bacteria, which is a great threat to the meatpacking industries in the United States.
The meatpacking industries in the U.S operate under thin margins because they are expected to keep low costs and still maintain a high volume of production. The government should help in finding them to be able to meet these targets.
Conclusion
The meatpacking industry deserves a million-dollar grant to be able to overcome all the challenges facing it. By taking care of its financial problems, there is no doubt that this industry will give the best meat in the world and earn America a lot of revenue.
The government should also look at the solution to expand their market to the European Union, which put a ban on meat from the U.S for fear of hormone-treated meat.
References
Ollson, K. The shame of meatpacking, New York: Macmillan Company, 2002.
Data driven implies the management of the company with the central importance of the information received and processed within the framework of the companys functioning. Moreover, such management includes its visualization and interpretation in order to change the quality of the companys work for the better. The calculus and statistical approach can now be used in all practical applications, from trade and economics to the regulation of natural phenomena. A specific topic for consideration in this paper is the application of date-based solutions to underestimate the environmental damage done by food manufacturers. The exclusion of the human factor from the decision-making process implies the concreteness of factual evidence of the need for specific decisions. Based on the principles of efficiency and achievement of goals. Through the involvement of sources considering exploratory date analysis as well as its effective visualization, the practical usefulness of such a methodological innovation as the data driven in the food industry is proved.
Annotated Bibliography
Susnik, J.(2018). Data-driven quantification of the global water-energy-food system. Resources, Conservation and Recycling, 133, pp. 179-190. Web.
This article perceives the processing of information about the ecological, economic and social situation of the planet as a continuous stream of a coherent system date that combines the supply of water, food and energy. In the context of this complex system, which is in a constant state of fluctuations, it becomes possible to observe dangerous tendencies regarding the depletion of certain material sources. This article clearly demonstrates how date processing can visualize a picture of social and material situation on a colossal scale and describes modern food production at the global level in statistical dimensions.
The study also shows to what extent easy access to statistical information on a global scale is able to build new methodologies for describing the world. The creators of the development have sharp causal and correlative relationships between all sectors that make up the basis of the food and energy chain. Demonstration of these flows clearly proves that they are all also linked by economic relations. Also the date used is verified against iterative sources in order to present more realistic pictures of the projected future. Following as a conclusion from the interpretation of these data, the risk of depletion of natural resources sets a fairly specific framework for this essay.
Srinivasan, R., et al.(2019). Modelling food sourcing decisions under climate change: A data-driven approach. Computers & Industrial Engineering, 128, pp. 911-919. Web.
The study is highly relevant to this work because it looks at the immediate future as a space for building a date-based strategy. The article focuses on the problem of global warming, which should have a colossal negative impact on the production of agricultural products and cereals. The use of publicly available statistical data allows the authors of the article to develop a strategy for changing the type of food supply to adapt to the changed economic and ecological climate. These data-driven strategies are presented in the form of functions that are designed to assess the potential success of the project and its risks. Through the primary importance of working with information with its collection, distribution and interpretation, there follows the possibility of developing an action strategy, which is also possible to evaluate in statistical data.
This article also demonstrates that in recent years there has been a real trend of using big data for work in the agricultural sector. Using data and visual indicators, researchers prove the real impact of the greenhouse effect and global warming on crops and the food industry around the world. The article offers a risk assessment in the fight against negative effects and possible threats to food products and the environment in the context of global warming and therefore can be extremely useful for the essay.
Wang, Q., et al.(2019). Data-driven estimates of global nitrous oxide emissions from croplands. National Science Review, 7(2), pp. 441-452. Web.
This study uses more than 16,000 pieces of global data collected from various local surveys and studies in order to draw up a real statistical picture of the impact of agricultural areas on the earths atmosphere. However, at the time of the creation of the study, data on gases ejected from grain fields and their contributing to atmospheric pollution were insufficiently studied and proven. Researchers have developed a map on which all problem areas of nitrous oxide emission are spatially distributed according to pollution levels. The information provided regarding airborne emissions of nitrous oxide from cereals is presented in a convenient visualized form. This article aims to demonstrate the statistical efficiency of using big data for forecasting and proving processes on a global scale.
The study also compares two ways of working with statistics, process-based models and those based on emission factors. Both models are presented as imperfect and subject to either lack of scale or likely inaccuracy. The introduction of an arithmetic model that takes into account the relationship between gas emissions and fertilizers in combination with other changing environmental factors allows a more accurate representation of the real situation. Indeed, the impact of nitrous oxide on the atmosphere on a planetary scale is one of the factors that bring global warming closer by affecting the climate. The article is of fundamental importance for the creation of this essay as it demonstrates how big data processing and analysis can create a coherent understanding of the immense environmental picture.
References
Susnik, J. (2018). Data-driven quantification of the global water-energy-food system. Resources, Conservation and Recycling, 133, pp. 179-190. Web.
Srinivasan, R., et al. (2019). Modelling food sourcing decisions under climate change: A data-driven approach. Computers & Industrial Engineering, 128, pp. 911-919. Web.
Wang, Q., et al. (2019). Data-driven estimates of global nitrous oxide emissions from croplands. National Science Review, 7(2), pp. 441-452. Web.