Strategic Management Case Analysis Guide

Strategic Management Case Analysis Guide

Introduction

Situation synopsis:

- No more local growth for NFY

- Growth Potential in China + India

- 3 days to make decision

Problem statement:

What is the growth strategy for NFY + SSBC that allows the brands to expand while maintaining their brand integrity

Company's strategy:

- Locations in top tier mall

- Premium burger + fries concept

- Focus on quality

- Slow and steady progress

-

External Analvsis

Industry Structure: (Fast Food)

- Franchising as method to expand

- Focus on fast service

Growth rate Western world - Slow result of saturation

Developing World - potential for growth

Elements of the demand side of the market

Developed world

- Fast, quick service

- Affordable price

- Quality

- Healthy choice

Developing world

- Western Experience

- Brand Image

- Taste

Industry Directions and trends: In which direction is the industry headed?

What are the causes?

Key success Factors:

- Brand Image

- Low cost

- Good relationship with franchisee

- Differentiation

-

Which aspects of external and operations are most crucial?

- Getting quality supplies at right price

- Franchisee who understand the concept of the owners

Strategic Issues in the Industry

Opportunities

- Growth potential in developing world

- Demand for western experience

- Developed world focus on healthy eating

-

Threats

- Getting similar quality supplies to every franchise all over the world

- Market downturn

- Difference in taste (India no beef

- Government

Barga Sup - Mod

Barg Buyer - High

Threat Substitution : low - mod

What are the degrees of risk and uncertainty in the industry

- Might not be suitable to

Competitive forces: What are the fuorces driving competition in the industry?

Five forces model

What are the strategies, positions, competitive strengths of markets leaders

- Affordable price Wendy's Quality Taco- Differentiation

- Convenience

- Brand recognition

- Changing menu to local taste

- Advertising

Internal Analysis

Financial Analysis: - steady cash flow

- Loan from banks Finance through leverage

What is its profitability

- 22% for the company owned store (High)

- 35 % poutine + Fries

5 - 7 Stores need

3 need

64 mn total sales

- Bad management by Franchise will create bad image for the whole franchise

Cost