SWOT Analysis of Delicious Burgers - Case Study Example

STRАTЕGIС GRОWTH РLАN REPORT FOR DELICIOUS BURGERS Name Professor (Tutor) University Course City and State Date Contents Strаtеgiс Grоwth Рlаn Report for Delicious Burgers 3 Executive summary 3 Business growth aims 3 Strategic plan 3 Internal growth 4 Action plan 5 Klofsten’s business platform 7 SWOT analysis of Delicious Burgers. 12 Greiner five-stage growth model 13 Human Resources, Health, and Safety 15 Fast follower 15 Conclusion 16 References 17 Appendices 18 CV 1 18 CV 2 22 CV 3 25 Strаtеgiс Grоwth Рlаn Report for Delicious Burgers Executive summary This strategic growth plan report aims to give information on the growth and development strategies to be used by Delicious burgers in achieving its objectives. This is achieved through the provision of the business growth aims, strategic growth analysis, the action plan, and the internal growth structures the business intends to use. Apart from these, the report also analyzes several strategies put forward by scholars that the business aims to use in reaching its growth targets. These strategies include Greiner growth model, which explains how companies go through different stages in their growth and development. The SWOT analysis, which gives the Strength, Weaknesses, Opportunities, and Threats a small business can face when growing and finally, the Klofsten business platform, which entails eight essential building blocks that can be used by small and developing businesses. Business growth aims The main aim of establishing Delicious Burgers is to get profits through the sales of burgers around the United Kingdom. After establishment, the business seeks to grow and expand in market share over the UK and the neighboring countries to increase its sales and profit margins. The objectives of the business are to fulfill the mission and vision statements of the company, which are to make lives richer and healthier and to create a better healthy life for many people worldwide, respectively. Strategic plan The strategic planning of Delicious Burgers entails putting in place management activities that will ensure the company can meet its set objectives of growth and development. The company will focus most of its resources in ensuring that the strategic plan is accomplished. The steps the company will focus on are determining where the business is, identification of important aspects of the business, defining what the business aims at achieving, picking out people who are responsible for the plan, and review the plan to ensure it functions effectively and efficiently (Erica, 2013). Internal growth Internal growth of a business is the expansion of operations internally instead of depending on external operations such as mergers or acquisitions (Nieman et al., 2004). In the case of Delicious Burgers, internal growth is important in increasing the company’s profit margin or revenue. Several that I can apply to grow Delicious Burgers include. The expansion, which entails increasing the company's production by investing more or new capital, therefore, raising the company's profit margin and market share (Quelle, 2012). We plan to expand our business, as it will enable the company to utilize its resources efficiently and therefore gain a competitive advantage in the food truck industry in the United Kingdom. We plan to achieve expansion through market penetration, product development, and market development. In market development, we plan to extend the company’s product into new markets or new geographical areas including other European countries neighboring the United Kingdom. The aim of market development is to reach new markets and therefore increase the company's sales. Market penetration is another expansion strategy we intend to employ, and this entails penetration into the existing markets through reduction of burger prices, improvement marketing, and promotional techniques, and improving Delicious Burger distribution network. Finally, we also intend to expand through product development. Development of new products such as selling of fresh juice or coffee together with the burgers or improving the quality of the burgers by adding different spices so as to add value to the customers. Diversification is the other strategy we will employ as an internal growth strategy for Delicious Burgers. This strategy will allow Delicious Burgers to get into new business lines that are not the same as the current ones. Diversification can be horizontal, vertical, conglomerate, or concentric. Horizontal diversification entails adding parallel products and services to the existing ones (Quelle, 2012). A good example for a Delicious burger would be to start selling chicken and salad to expand the market and at the same time reduce competition. Vertical diversification entails the addition of complementary products into the market (Quelle, 2012). For our company Delicious Burger we intend to complement our delicious burgers with Coke and Pepsi. Concentric and conglomerate diversification entail getting into products and services that are not related to the existing business (Quelle, 2012). These strategies of internal growth are extreme, and therefore we will not employ them in our business until after the business has shown success in the other growth strategies. All these methods of internal growth are important to our business and through the integration of scientific forecast methods we believe we will achieve our goal of growth through increasing sales through expansion of the customer base and customer satisfaction. Action plan The action plan for the growth of Delicious Burgers entails innovation and product diversification, market development, and development and training of staff to improve their production levels (Vyakarnam & Leppard, 1995). Goal What do we want to accomplish? Action Steps What activities need to happen? Timeline Start dates Measurement How will the progress measure? Lead Person Improved staff performances levels. a. Employee training through both on the job training and external training. b. Providing employees with incentives such as allowances. Promoting highly productive employees. At the beginning of the next financial year. That is financial year 2017/2018. a. Employee survey at the end of the financial year 2017/2018. b. Verbal check-ins and interviews with staff to ensure that they are satisfied with both the incentives and training. Manager, Human Resource Department. Market development a. Improvement marketing and promotional techniques through extensive advertising through print media, TV and radio, the company’s website, and social media platforms. b. Extend the company’s product into new markets or new geographical areas including other European countries neighboring the United Kingdom. c. Getting deeper into the existing markets through reduction of burger prices and improving Delicious Burger distribution network. At the start of financial year 2017/2018. Starting 1st June 2017. a. Following social media platforms and the company’s website and gathering data on the rate of increase of follower. b. Calculating if there is an increase in sales over short periods of the financial year. Emmanuel Jones, Manager Financial Reporting Accounting, and Budgeting Innovation and product diversification. a. The introduction of new menus including chicken, salads, and other delicious menus. b. The introduction of beverages including fresh juice, Pepsi, and Coca-cola. c. Using new technologies in making of burgers, for example, momentum machines burger robot (Klofsten, 1994). At the start of financial year 2017/2018. Starting 1st June 2017. a. Noting and calculating the sales brought in by new menus through separating the daily sales of new menus and beverages from the original menu sales. b. Interviewing customers on the quality and satisfaction provided by the new menus and drinks. c. Following the efficient levels of the newly acquired technology. Edward Smith, Executive Chef. Klofsten’s business platform The Klofsten business platform developed by Magnus Klofsten entails eight important building blocks that can be used by small and developing businesses. The eight building blocks include the Business idea, development of the product, the definition of the market, development of the organisation, group competence, group commitment, customer relations, and other relations (Klofsten, 1998). The business idea is about starting a burger truck company that would be known as Delicious Burger. The company would be a partnership between two experienced individuals, and also, it would entail the formulation of a strategic growth plan after the business has been operational for about one year. This business idea is creative, refining, and elaborative as it intends to capture the demand of starving customers all over the remote areas of the United Kingdom and neighboring countries after the growth strategy has been implemented. Development of product is all about the creation of a product that discovers and exploits the market, but at the same time, it should be of quality to ensure customer satisfaction. The Delicious Burgers company’s aim is to sell delicious burgers throughout the UK. The product, which is the burgers, are easy to produce and sell especially in parks and industries. The company aims at producing high-quality burgers to satisfy customer needs and gain a competitive advantage over its rivals. Apart from the burgers, the company aims at diversifying its products by introducing complementary products to its original for example salad and Pepsi. Market definition entails where and how the market for the product is structured and how the company intends to exploit it. The United Kingdom burger market is a multi-billion industry that promotes the growth and development of the country`s economy. According to Price (2016), the market is worth around £3.2 billion in 2016. Many Brits enjoy burgers since around three in five consume burgers monthly (Price, 2016). Therefore, Delicious Burgers targets beef burger consumer, non-beef burger consumers, and vegetable burger, consumers. Delicious Burgers intends to operate in towns to offer high-quality burgers to its consumers. According to Price (2016), residents of populated regions such as London frequent burger joints. For example, one in five of the residents of London visits burger joints regularly. As a result, the area contributes around seven percent of the national income. The consumption of burgers in London influenced the decision of Delicious Burgers to set its truck in populated regions like London. The company will drive its truck to school areas, parks, and industries to sell its products to students. Organizational development is the organizational chart and the hiring and recruitment of new staff. The staff that Delicious Burgers will hire include two window attendants to serve the customers, one chef and two cooks, two kitchen workers, and two truck drivers. Besides, the subordinate staff, the company will acquire the services of three top managers, the truck manager- Lolwa William, executive chef- Edward Smith, and an accounting manager- Emmanuel Jones who will manage the company’s finances. Group competence and expertise entail matching the business idea with the hiring of competent employees to fulfill the objectives of the business. To achieve competence and expertise the company will make sure the hiring process is fair through conducting interviews and not discriminating against applicants based on any aspects for example race, gender, sexual orientation, age, and physical condition. Ensuring that the recruiting process is fair and efficient will enable the company to get a group of employees that are competent and productive. Group competence will also be achieved through training and development of employees. Group commitment and drive are about ensuring that employees are committed to the course at hand, which is ensuring business growth through high production levels. Provision of incentives will ensure that the employees are committed to the organization's strategy. Development of customer relations is inevitable to the process since the customers are the ones that create value to the organization. Development of customer relations will achieve through the provision of quality burgers and services by the employees. Other relations may include developing strong bonds with the company stakeholders and the suppliers. These strong relationships will ensure the growth and development of the business. SWOT analysis of Delicious Burgers. SWOT analysis is the strengths, weaknesses, opportunities, and Threats to a company (Pahl & Richter, 2007). 1. Strengths The mobile burger trucks allow for unique times and locations where the burgers can be sold. The business is also friendship oriented as it is to be started my partner and me whom we have a strong relationship together. Delicious Burgers is meant to offer fresh burgers that are hand pressed and never frozen. 2. Weaknesses. The trucks are large, but there is still a limitation regarding the kitchen and preparation areas. The company is only limited to the main dish, which is the burger since it, takes a lot of time to make hand pressed burgers. The limitations by UK cities to the use of commercial lots only. 3. Opportunities. The growth of the business through expansion to markets outside the United Kingdom. The growth of billings and sales due to the rise in population across the United Kingdom. 4. Threats Extreme weather conditions such as heavy rains lead to the closure of the day's operations. Competition from rival companies such as Bleecker Burger that has continued to dominate because of its brand name and loyal customers (Bleecker Burger, 2015). Greiner five-stage growth model The Greiner growth model explains how companies go through different stages in their growth and development. The stages are Leadership and Creativity, Autonomy and direction, control and delegation, red tape and coordination, and growth through collaboration (Davila et al., 2006). 1) Leadership and Creativity The creative stage is based on the company's creative force of the executive chef through the creation of new menus and improving the current ones to provide value to the customers. When starting the company my partner and I as the founders can be able to cope with the leadership demands but growth will stretch us as directors and also the three managers to the limit. Leadership will, therefore, become a challenge as the company grows. 2) Autonomy and direction The company will respond to the difficulty in leadership by seeking other professional managers to help in managing the company. These managers are professionals that will be able to separate activities in finance such as marketing and budgeting. Nevertheless, these professional managers are often after meeting individual objectives rather than those of the company. Fighting between these managers over resources and rewards as the company grows leads to the delegation stage. 3) Control and Delegation Delicious Burgers will, therefore, aim to formulate proper management structures that will divide and conquer any conflicting professionals. The issue with control arises at this phase as a control crisis especially regarding communication between managers and subordinates. The middle managers employed to manage delegation lose control of the situation at this stage. 4) Coordination and red tape. The loss of control in a business like Delicious Burgers is dealt with through ensuring organizational communication whether horizontal or vertical is effective. Coordination, however, comes with the red tape issue, which is when the managers appease the business owners by hiding negative reports about the company. 5) Growth through collaboration Human feelings are the main strategy in collaboration through establishing human connections between managers. Collaboration is however undermined by the growth crisis in Delicious Burgers, which is how to develop the company further without overloading the process and systems in place. The growth and collaboration stage is best for Delicious Burgers as it better than all the other stages in the context that it promote the management team and organizational success instead of individual performances by the managers. Human Resources, Health, and Safety Food trucks, which include our Delicious Burgers food truck company, are required to sell safe and healthy food according to government regulations. The action is taken for companies that fail to comply with these regulations. It is, therefore, the duty of the staff at Delicious Burgers to ensure that the burgers they sell to customers are fit and safe for human consumption. The environment where the food is prepared which is in the truck should also be clean and healthy as should the staff who handle the food. Fast follower The business is a first follower as it follows the path where research and development about the idea have already been done. Delicious Burgers just move quickly into the maximizing the market opportunity created. Conclusion The strategic growth plan is essential for any growing business as it allows the business to establish its growth pattern and techniques that can be used to ensure its development. The strategic growth plan can be established through several strategies such as the Greiner growth model, which explains how companies go through different stages in their growth and development. The stages are Leadership and Creativity, Autonomy and direction, control and delegation, red tape and coordination, and growth through collaboration. Another technique is the SWOT analysis which gives the Strength, Weaknesses, Opportunities, and Threats a small business can face when growing. Finally, the other strategy is the Klofsten business platform, which entails eight important building blocks that can be used by small and developing businesses. The eight building blocks include the Business idea, development of the product, the definition of the market, development of the organisation, group competence, group commitment, customer relations, and other relations. All these strategies are aimed at analyzing the growth plan a business can take in achieving its growth and development goals or objectives. References Bleecker Burger (2015) Bleecker. Available at: https://bleeckerburger.co.uk/ (Accessed: 27 March 2017). Davila, T., Epstein, M. J., & Shelton, R. D. (2006) The creative enterprise: managing innovative organizations and people. Westport, Conn, Praeger Publishers. Erica, R. (2013) The Future of Food Trucks. Available at: https://www.qsrmagazine.com/exclusives/future-food-trucks (Accessed: 27 March 2017). Klofsten, M. (1994) ‘Technology-Based Firms: Critical Aspects of their Early Development,’ Journal of Enterprising Culture, 2(1), pp. 535-557. Klofsten, M. (1998) The Business Platform: Entrepreneurship and Management in the Early Stages of a Firm’s Development, European Commission, Luxembourg: TII. Nieman, G., Pretorius, M., & Dyer, T. (2004) Managing growth: a guide for entrepreneurs. Cape Town, Juta Academic. Pahl, N., & Richter, A. (2007)  SWOT analysis: idea, methodology and a practical approach. [Munchen], GRIN Verlag. Price, K. (2016) UK burger market worth £3.28b. Available at: https://www.thecaterer.com/articles/368295/uk-burger-market-worth-328b (Accessed: 27 March 2017). Quelle, G. (2012) Profitable growth: release internal growth brakes and bring your company to the next level. Berlin, Springer. Available at: http://www.myilibrary.com?id=424769. (Accessed: 27 March 2017). Vyakarnam, S., & Leppard, J. (1995) Action plans for the small business: growth strategies for businesses wondering where to go next. New York, DBM Pub. Appendices CV 1 Edward Smith 425 Main Street  London City  Phone: 0245 000 000  edwardsmith@yahoo.com Summary A motivated individual with exceptional skills as both a manager and a chef Creative and innovative individual. A leader with the ability to form a good rapport with employees. Respected leader of creative teams, Skills Creative team leader Obedient and disciplined Professional individual. Recent Awards Winner of James Bird Foundation Award, 2004. Professional Experience Executive Chef/Manager John Gates Restaurant (9/1/2006-Current) Performs monthly duties that involve menu designs. Recruits cooks and supervisors. Train various cooks. Chef John Gates Restaurant (2/2/2000-2006) Organized and supervised kitchen operations. Maintained food supply inventory controls in the restaurant. Prepared various types of meals that included vegetable burgers. Technology Software: Microsoft Office, SPSS Education ABC University, Associate of Science- Culinary Arts, 7/1997 Hobbies Cooking Traveling Reading the Bible CV 2 Lolwa Williams 426 Main Street  London City  Phone: 0999 000 000  ashleywilliams@yahoo.com Summary A passionate individual that enjoys his work. Creative and innovative individual. Skills Innovative Creative Professional individual. Professional Experience Executive Chef/Manager Café Deli Restaurant (9/1/2004-Current) Recruits cooks and supervisors. Train various cooks. Offers advice to junior chefs in the company Chef. John Gates Restaurant (2/2/1999-2006) Organized and supervised kitchen operations. Maintained food supply inventory controls in the restaurant. Prepared various types of meals that included vegetable burgers. Technology Software: Microsoft Office, STATA, SPSS Education ABC University, Associate of Science- Culinary Arts, 7/1998 Hobbies Cooking Reading novels Swimming CV 3 Emmanuel Jones 640 Downing Street  London City  Phone: 0467 000 000  jonesemmanuel@yahoo.com Summary Honest and disciplined Trustworthy Competent Performs exceptionally under minimal supervision Skills Innovative Creative Professional Experience Chief Account ABC Bank (9/1/2003-Current) Supervise the maintenance of Financial Books Offers financial advice Participate in the budgeting Accountant ABC Bank (2/2/2000-2003) Maintains financial records Technology Software: Microsoft Office, STATA, SPSS, Quick Books Education The University of Houston, Bachelor of Commerce- Accounts, 7/1996 Bauer College of Business Certified Public Accountant (CPA)-7/1997 Hobbies Reading novels Swimming Travelling Read More