The flame broiler is changing their environment by changing their food choices from fast foods to healthy choices. It is trying to expand its target market to include the health conscious consumers.
Use the Five Forces Model to describe the business environment faced by this organization.
Competitors- the company faces competition from fast food chains as well as restaurants who offer purely healthy options. Flame Broiler is located in business complexes to target business executives who are health conscious (Poole and Van de Ven).
Customers- Frame broiler is targeting health-conscious customers. However, the company’s market research that determined that the customers are not aware of the quality of the food they sold. The franchise aims at increasing consumer awareness through marketing campaigns to increase awareness and generate a larger customer base for its products (West et al., 64).
Suppliers- the company should focus on dealing with suppliers with a reputation for supplying only the highest quality of healthy ingredients. The suppliers can serve as an excellent testimonial to the product quality to not only consumers but for the competitors.
Potential entrants- Flame broiler will aim at strengthening its customer base, garner customer loyalty to avoid losing its business to new market entrants. Currently, the market is fairly untapped thus the company will have some time to establish itself before the new entrants flood the market. The company should focus on establishing its products and brand name such that new entrants will not pose a big threat to its market share (Poole and Van de Ven, 23).
Substitutes- There are available substitutes in the market, but few cater to the business district. The substitutes are low quality and fail to meet the criteria of using completely healthy ingredients. The company will do well if it positions itself as having superior products and rebranding itself as a healthy choice for the market.
Briefly, do a PEST and SWOT analysis for this organization – if possible, you should involve one or two other people from your organization as you develop this analysis.
P-Pest- the franchise has fulfilled are the regulations for a food business. It should also seek certification for carrying quality, healthy foods from the department of health; this will give it proof to offer to new investors and consumer groups that may challenge its claims. It will also provide a basis for a strong marketing campaign (West et al. 58).
Economic- the franchise should ensure that they have an affordable employee base to maximize profits. It should also ensure that it utilizes all, are its resources in a way that maximizes profits.
S-Social- Employee welfare is a factor that contributes to the success of a company. It is important to ensure that the employees believe in the policies of the business; this will ensure that they are likely to communicate the same to potential consumers and offer the best possible customer service.
T- technological- providing a digital platform where customers can make orders, suggestions and get direct feedback from the franchise has helped the success of the company.
S- Strengths- the franchise is one of a kind: Korean style rice bowl franchise, which differentiates it from other fast food franchises. It also provides healthy ingredients compared to other fast food restaurants. This is a strength that it should exploit when publicizing its brand name. The franchise has a customized product that is likely to attract a niche market (Poole and Van de Ven, 20).
W-Weaknesses- The company’s brand name is not widely known; it does not have a strong market presence. At the moment, customers are not aware of the quality of their goods or their service.
O-Opportunities- there is an increased demand for healthier foods among business executives. There is also an opportunity to change the culture of office workers for simply ordering junk food to order healthy options that are delivered right to their offices.
T-Threats – the market is filled with large fast food chains that already have an established market share. There are many new entrants into the market who are also offering healthy food options (Wootton, Horne and Wootton 56).
Based on this analysis, identify at least 3 critical success factors for your organization. (See SC Workbook pg. 64-65)
1) Enrich its brand name to consumers as a superior healthy brand.
2) Enhance its marketing strategy through social media and poster areas frequented by potential customers.
3) Increase its range of services to include office delivery and catering for large office occasions (West et al., 65).
Does the organization have a strategy? If so, what is it?
The organization's new strategy involves rebranding and repositioning itself in the market as a superior premium brand that offers the healthiest customized food products.
What changes have been made or will be necessary in order to implement this strategy?
The organization will need to change its brand slogan as well as amend its marketing strategy to include social media platforms and posters (Poole and Van de Ven, 15). It also needs to focus on a niche market rather than the business executives in general.
How does the change effort you are studying fit within this strategy?
The company’s strategy aims at rebranding and marketing positioning which will help the organization position itself above its competitors by offering better quality. The strategy will affirm the organization’s position in the market and secure its market share (Wootton, Horne and Wootton, 60).
Who is developing a strategy and how is it being developed? You may need to conduct an interview to develop your answer.
The marketing director and the operations manager are developing the strategy with the involvement of staff. The strategy is being developed based on the findings of marketing research conducted earlier and evaluation of the current market concentration.
Work Cited
Poole, Marshall Scott, and Andrew H Van de Ven. Handbook Of Organizational Change And Innovation. Oxford, UK: Oxford University Press, 2004. Print.
West, Susan Resnick et al. Strategic Communication Workbook. California: University of Southern California, 2010. Print.
Wootton, Simon, Terry Horne, and Simon Wootton. Strategic Thinking. London: Kogan Page Limited, 2010. Print.
