The Global Future of Kirpit Company - Case Study Example

The Global future of my Company Executive Summary The company to be started would be named Kirpit Company which will be located in Canada. The management expect the company to be the world’s largest fast food organization which will be dealing with the production of the best food in the city. The company is planning to operate more than 300 food outlets in the country. Strategies has been laid down on how to achieve this objective, first, the company is planning to provide high quality food so as to improve its competitiveness in the country. Besides, the company will need to satisfy all the stakeholders of the company so that it can improve its image. This will be achieved through the provision of a mission statement which will outline clearly the major objectives of the company. A part from this, the company is planning to develop a positive relationship with the community so that that it can boost the image of various outlet located in different towns. The company will also have to develop strategies to help them to be competitive in the market. There are various strategies which would be employed by the company such as using lower prices to attract the customers in the market. They may also be required to carryout aggressive marketing so that it can attract attention of potential customers in the market. The other strategy to be used is to ensure that customers are completely satisfied; make them feel that they have spent their money in worthy manner. Satisfied customers provide referral, encourage other customers to buy from the company .This act as the fee advertisement from the part of the customers, it is very effective and the company needs to use it effectively (Britton & Worthinton, 2009. p 78). Vision statement The vision statement of Kirpit Company will be to serve the customers in a timely manner ensuring that they provide quality food at affordable price. The company is also looking forward to gather the needs of all the different classes of customers. The vision will help the company in meeting its mission statement. The company will formulate strategies which will help to become a market leader, they will use various strategies in attacking its competitors, such strategies include; low prices, this is very effective since the customers been targeted by the company are price sensitive. The company will also apply other strategies such as mobile attack i.e. establishing braches across the country so that it can serve large number of customers in the market. Those are among the many strategies which the company is planning to employ when they start business. In addition to these, the company is planning to use all kind of promotion so that the company would be know in all part of the country, they will carry out market research so that they can identify the purchasing behavior of the customers in the market. This will enabled the company to direct its marketing campaign to the potentials customers in the market (Snell, 2009. p 98). Introduction The new company will be expected to face various challenges in the country due to high increasing market related issues. The company is expected to grow at a higher rate due to specialized management which is expected to be implemented. For this company to be successful, it will be necessary to develop HRM business strategies which will deal with the issues of motivating employees. It will also be necessary to carryout SWOT and PESTLE analysis to identify the strength and the weaknesses of the company. This will effectively analyze the internal and external operations of the company. Furthermore it will facilitate the proper decision making in issues concerning technological advancement. The company will be required to analysis their competitors in the market on how they are offer their services. Besides, the company will need to analyze their current situation by using these tools: PESTLE and SWOT analysis, these tools will appropriately scan the business environment of the Kirpit Company, it will also enable the company in analyzing its internal and external strength (Shinnick, 2009. p 76) PESTLE analysis of Kirpit Company in Canada. Kirpit will be required to carryout PESTLE analysis to identify the opportunities and evaluate macro-environmental conditions which is expected to affect Kirpit and its market. Pestle analysis comprises of political, economical, social, technological, legal, and environmental factors. Political and legal factors In planning to establish a company in Canada, there are a number of political and legal factors which need to be considered. The legal factors such as fiscal and monetary policies can affect the performances of the company either positively or negatively depending on the conditions of the policy. The current economic situation in the Canada has greatly improved, the government has emphasized on reducing interest rates so that they can stimulate borrowing from the public. This will increase the purchasing power of the customers because of increased circulation of money within the public. This will impact the business highly though for short term. The impact caused by the reduced interest rates will affect the company positively because of the increased sales within that period. The company will need to strategize on how it will maximize sales within that period of reduced interest rates. The company may develop some strategies such as improving the quality of the services they offer and at the same time increasing the prices of those services. This is the strategy which has been used by international companies in attempt of maximizing sales in seasons of high circulation of money (Britton & Worthinton, 2009. p 99). Government policies may also be threats to companies, for example the ban of importations of certain goods may greatly affect Kirpit Company if the local distributors will not distribute the same products adequately. The company will benefit a lot in carrying out business in Canada because of the stable political situation in the country. The company will be in apposition to have long term marketing and the business plan because of the certainty in future. There are other government policies which may affect the company negatively, these include Fair Pay Communication. This policy may have adverse effects on wages and functions of the HRM functions. This commission is responsible for the regulations of wage level for all the employees in Canada. Other conditions in Canada which might affect the company include the policies governing the franchising, international trade and merging companies especially those dealing with food. All these policies may affect Kirpit Company. These issues may be complicated and affect the company at the time of applying trading certificate in Canada. The trade unions and the right of employees may also affect decision making process in the company (Jones & Hill, 2008. p 89). Economic Factors There are also various economic issues which may interfere with the smooth functioning of the Kirpit in Canada. Such economical issues include the current recession which as affected the whole world. This issue of recession will affect the company’s performances negatively. Recession has led to high rate of unemployment which will not only reduce purchasing power of the customers but also affect the buying behavior of the customers in the market. Kirpit might face high competition in the market, Many of the companies such as MacDonald are specialized in offering certain food which Kirpit may not offer. The company would benefit from the low interest rate offered in the country because they can obtain a cheaper loan. On the other hand, this may not be beneficial to the company because of the increased cost of production and the taxes fees by local council. This may increased the expenses of the company (Jones & Hill, 2008. p 87). Social The various issues which will affect the company are widespread through out the community. The company will be expected to relate positively with the community by offering various benefit such as employment and social corporate responsibility. Though such issues improve the company relationship with the community it might not be parallel with the company’s objectives, especially profit making companies. Such project (corporate responsibility) are not profitable to the company in anyway, it only help in improving the customers’ loyalty towards the Kirpit Company. Kirpit Company needs to have effective human Resource Manager who will handle employees’ problem effectively to avoid the strikes and other problems caused by the employees. Any employee’ dissatisfaction may lower the company’s performances. In addition to this, any lay-off of the employees by the company due to the low performances may result to law-suits which will be very expensive to the company (Britton & Worthinton, 2009. p 59). Technological factors Technology is important in enhancing efficiency in the operation of the company. The major competitors has adopted the latest technology, this means that the kirpit Company should use the latest technology when carrying out business. It will be noteworthy for the Kirpit to implement a powerful e-HR system that allows the company to recruit and managed talented employees who use company’s resources effectively. Kirpit should embraced technology in all levels. Environmental factors The Kiprit will have to deal further with environmental or ecological issues. Generation of carbon dioxide is not only a political concerned but also social concerned. The Kirpit should be careful not to fall into this category by making sure that they used the correct fuel. Using technology may also be factor which Kirpit should have to consider because they have been revelation that microwaves radiations have harmful effect to people. Other environmental factors which need more attention include the impact of construction projects on the environment and the use of packaging that are not biodegradable. The company needs to look for appropriate means of handle these issues in the process of operation to avoid being suit by the environmental department in the country. Such cases may be expensive to the company and can lower the company’s reputation in the market. The company should ensure that they avoid such problems and try to improve the image of the company and its competitive advantage in the market (Britton & Worthinton, 2009. p 104). PESTLE and SWOT Analysis on Kirpit Company SWOT context 14 December 2009 PESTLE analysis factors Your notes Potential Impact Implication and importance SWOT analysis Political: Trading policies governing companies Political situation in the country Labor laws which favors employees Environmental laws affecting company’s issues Restriction of trade High tariffs imposed on imported goods Political instability These factors may affect the company negatively i.e. the high tariffs might increase companies expenses thus undermining the profits. The impact might be high because government decision takes long to be changed This problem may affect the company for a very long time, for even more than 24 months. It will affect the company negatively because of restriction of international trade The impact may not increase due to the pressure from international market Though it may be important for the company because it is a new company, it may hinder the expansion program of the company Economical factors The rate of economic growth Interest rates offered by banks Exchange rates on foreign currencies Inflation rates in the country These may affect the company in a negatively, for example if the interest rates are high the company may not be able to borrow loans The impact on the company is low because the economical issues are adjusted within a short period of time The problem may not last for longer then 6 months The problem may not be effectively categorized The impact cannot increase because it is short term decision of the monetary authorities The impact is positive because it regulate the rate of inflation in the country Social factors Cultural aspects in the country Population growth rate in the country Age distribution Carrier attitude Emphasis on safety Might affect the performances of the company especially when comes to taboos that restrict people to consume certain food. E.g. Islam may not consume meat. The company will be affected at a low rate because it concerned with social issues The problem may not last for longer than 12 months The problem can be effectively categorized. This problem may ruin the image of the image of the company It will be reducing since the companies are realizing the effectiveness of the company’s image It is very important for the company to create long term relationship with customers Technological factors Research and development activities Technological incentives If the company fails to adopt the appropriate technology then it will not be in a position to compete with the other companies effectively. It is very important for the company to consider it because it determine the success of the company If considered, then it will last for less than 6 months It affects the company positively. The impact is reducing since the company will be implementing the use of technology It is important because of the competition in the market. Environmental factors Weather Climatic change The company may not get adequate supply of it input due to bad weather condition This may affect the company greatly because it will disturb distribution of goods and services In long term it might affect the company’s operation for more than 24 months The effect may be positive cause it will take long to interfere with profit The impact is unknown unknown Legal factors Discrimination of law which favors others The company may be discriminated by the law of the land especially if the company is a foreign company, this might rise as a result of high taxes Its potential impact to the company is low. Can last for 12 months Negatively because it will affect the profit of the company Impact may remain unchanged. Relatively and the company should strategize on how to deal with it Bibliography Britton, C. & Worthinton, I. (2009). Business Environment. Pearson Education Canada. Jones, G. R. & Hill, W. L. (2008). Strategic management and the integrated approach. Wiley India Pvt. Ltd. Shinnick, E. (2009). Issues in economic performance. Berlin-Hamburg-Münster Snell, S. (2009). Managing human resources. Cengage Learning Read More