Strategic Business Plan
Every business needs a plan for it to grow its market and services. To do so, it has to strategize on its strategy. A strategic business plan is a document that outlines the goals of the business to those of the market and guides it. The organization can also use it to monitor growth and changes, attract investors, and seek new markets. One of the companies seeking growth is the Laziza pizza.
Laziza Pizza is a company in Canada that wishes to expand its operations to all around the world. To succeed in its global venture, it has to study the market to know its potential target location carefully. Identification of the market can be made through the strength, weakness, opportunities, and threats (SWOT) analysis. Similarly, other methods, like the PEST-C analysis and SMART model, can be used to collect qualitative and quantitative data. The raw information obtained can be used to attract customers and investors to the business. Also, it can be used to enhance competition with other firms in the pizza market. The paper aims to provide a strategy plan for Laziza Pizza to compete in a new location.
Company overview
Mc Donald is a renowned fast-food company that operates globally, which started in the United States of America in 1949. It offers its services to over 100 countries and served over 69 million customers each day. Some of the foods provided include French fries, cheeseburger, hamburgers, desserts, soft drinks, and milkshakes, among others. In Canada, it was started in 1967 as a franchise business and had become the major fast-food chains i. The country with the small franchised being owned by Canadians. Its growth numbers are over 1400 restaurants with more than 90,000 native employees. Additionally, it has created over 200,000 jobs to the locals who are involved in the supply chain. Its positivity has thus become an attraction to many Canadians throughout the country who dash to dine in the restaurants.
Mission
To be our customers’ favorite place and way to eat and drink.
Vision
To move with velocity to drive profitable growth and become an even better McDonald’s serving more customers delicious food each day around the world (Meyer, 2019).
Organizational structure
The organizational structure at Mc Donald’s is divisional. It means that the organization is divided into several parts. The parts have unique duties that each has to perform. The responsibilities relate to the operations of the business. The purpose of the structure is to ensure organization flexibility and support autonomy to satisfy business needs. The firm’s organizational structure has the following components: global hierarchy, performance based-divisions and functional-based groups
- Global hierarchy
It is a structure that most organizations that have their market al around the world use to manage its operations. Mc Donald’s is a worldwide enterprise, and as such, it uses the global hierarchy to provide coverage of its services all around the world. The feature enables the corporation to have control in terms of managing control and giving direction to all its franchisers. For instance, the chief executive officer (CEO) is the one who directs all the activities of all the business areas. Moreover, when the CEO gives measures for implementation, there is a hierarchy which is followed to pass down information to the franchisees. It comes from the CEO then moves to the middle managers. The data is then passed down to the restaurant managers, other people who deal with the operations of the company and franchisees.
- Performance-based divisions
The organization uses the performance of its different markets to divide its organizational structure. The United States of America is the leading in production; thus, it is the first in the division followed by the international lead markets. The next is a marker with high growths and lastly foundational markets and corporate.
- Functional based groups
The company uses functional-based groups that are under the management of the senior manager to carry out primary duties. Some of the groups are the sustainability group in the sustainability endeavors and supply chain management sectors and the people’s group in the human resource management and supply chain sectors. (Thompson, 2019)
Product offerings
Mc Donald’s is a food service business that mainly offers beverages and foods. The varieties in the range of products ensure that it satisfies its market. The main products offered are sandwiches, cheeseburgers, French fries, hamburgers, pies, salads, fish, and chicken snacks. Beverages, shakes, Mc Café beverages, desserts, and soft drinks.
Competitive advantage of Mc Donald’s in Canada
The organization has a competitive advantage in Canada because of its various characteristics like
- Its global nature
The company is known globally for its operations and excellent services it gives to its customers. In Canada, there are more than 1400 franchisees of the corporation who have many restaurants in different regions of the country. Its global nature attracts customers because its services are of high quality. Similarly, one can get a Mc Donald’s restaurant almost everywhere they go.
- Customer service
In Canada, the organization prides itself on excellent customer service from its reviews by different clients. It strives to ensure the customers’ treatment and service is top-notch. Due to its quality service and using digital services to request customer feedback, it has gained and retained many more customers. Also, its brand name continues to grow with its image among its competitors.
- Product range and quality
The quality of the food and service the company provides in Canada speaks for itself. In all the restaurants offering Mc Donald’s food service, the product range is extensive, and the food is wholesomely sweet. Most of the restaurants over the main menu like hamburgers, coffee, cheeseburgers, salads, French fries, soft drinks, pies, sandwiches, and shakes. Others may offer more while the smaller regional ones may provide a reduced number of products. The price range is also affordable to most Canadians.
- Marketing
The company seems to be fully aware of its Canadian market because of the beautiful marketing strategies it uses to retain and attract clients. Some of the plans include the use of snap chat for deliveries, introducing burgers made with beef, and spicing up the Mc chicken’s sandwiches.
- Brand
The right brand name alone brings competition in the market. The Mc Donald’s brand name is renown all over the world. In Canada, many customers go for the food service at Mc Donald’s restaurants mainly because of the brand name and the product quality. The brand name shows that the company is trusted globally; thus, its food and services are of high quality and are healthy.
- Loyalty of the customers
The people who eat at Mc Donald’s restaurant end up remaining to be their client because the company is almost everywhere, their food quality is excellent, and their services are quality too. As such, many Canadians stick to the Mc Donald’s brand for their meals, especially coffee. Some of the clients have even passed their loyalty down to their generations.
- Good supply chain
The corporation has made partnerships with many suppliers to offer goods to its restaurants in Canada. Some of the connections are with farmers because Mc Donald’s is renowned, and as such, it has to provide fresh and good quality foodstuff to prepare the meals in the restaurants. Moreover, it has made investments into technology to ensure its services are up to standard and matching with the current technological trend in the market. Similarly, the food delivery services match the criteria of its other competitors in Canada.
Competitor advantage over Mc Donald’s in-home country, Canada
The corporation continues to face stiff competition from its competitors in Canada. Some of its competitors are:
- Burger King
It is one of the stuff competitors of Mc Donald’s fast-food company. It has over 100 restaurants in Canada. Similar to Mc Donald’s, it was started in the United States of America in 1954. Since then, it has grown over the years to have branches all over the world on including Canada (Burger King, n.d.). The company also strives to offer quality service delivery through affordable and high-quality products, just as Mc Donald’s. It has franchisees in Canada and thus provides a very stiff market completion to Mc Donald’s
Subway
It is also a multinational company with its roots in the USA. Its founder was a seventeen-year-old high school graduate in 1965. The company has grown all over the world and has franchisees in Canada too. Just like McDonald’s and Burger King, it believes in delivering exceptional services and quality to its clients. Its marketing strategy has enabled it to enter other world markets, including Canada, thus having more than 40,000 locations (Subway, n.d.).
- Chipotle
It is a fast-growing fast-food company that started its operations in 1993. It is also known as ad Chipotle Mexican Grill, Inc. Ever since it’s set up, it now had restaurants in more than 43 states in the United States, among them being Canada. Its growth brings a lot of tension to the market, especially to Mc Donald’s (Chipotle, n.d.). Its business strategy is unique from its predecessors such that went directly to stay up restaurants in Canada, unlike the others who use franchise. However, its aim is similar to its competitors as it wants to provide healthy and quality food to its customers. It thus depends on local producers for food.
Globalization forces helping competitors
Some global effects help different fast food companies to compete for their markets globally. To determine the forces driving the competition, a political, economic, social, technological environmental and legal (PESTEL) analysis will be used.
- Political
The attitude of a government towards a fast-food chain can have a lot of impacts. Each country has its political effects, which the food corporations have to adapt and comply. Some policies guide the operations of the multinational fast food companies. For instance, there are policies which relate to food quality, hygiene, and wages. Competition comes in with the differences in the minimum payments in each country. Nations that have a high minimum wage, the cost of labor is high while countries with low minimum wage, their labor cost is also low. Aside from that, the companies have to compete in terms of packaging and delivery, as well as respond to each country’s policies.
- Economic
The ability of individuals to spend in buying food from a particular fast-food company depends on the financial state of each country. To adjust to the financial situation of a specific market, the corporations have to lower their prices to be affordable to customers. The aspect of pricing creates a tension in the competition of the fast foods organizations. Similarly, customer service plays a significant role in attracting and retaining customers, thus influencing the choice of a client’s preference.
- Social
The social environment contributes a lot to the market completion of various fast food companies. Society has grown a trend towards healthy living, and people are going for fast food services that offer healthy foods. The companies have also been known to attract children. The social trend towards high calorific foods for children has seen many companies lose their clients because of the increase in obesity in children. Similarly, the cultural differences bring about competition as some cultures don’t believe in fast foods.
- Technological
Innovations in technology have seen many fast-food companies engage in the use of social media to attract and serve many customers. Food deliveries also fall in line with the innovation use in market competition. Some companies have even developed apps that their clients can use to order and pay for food services. Customer feedback has also been enhanced to improve the game and rate the best fast food companies
- Environment
Every country in the world is fighting to keep its nation green. Similarly, the fast-food companies are competing to meet each country’s policies as well as keep the environment clean. They have thus used different packaging, materials, and technologies which bring in the aspect of competition just to maintain the environment
- Legal
Amendments of laws regarding packaging and waste management impose new demands on the growth of the fast-food companies. Some rules also regarding health influence the flavor, which brings about competition (Pratap, 2019).
In conclusion, the strategy of the Laziza’s Pizza company business plan will be successful if it uses one similar to Mc Donald’s. Many multinational food companies like king burgers and Mc Donald’s have thrived mainly through franchising. The factors which bring about competition in the market are political, technological, social, and legal factors, among others.
References
Thompson, A. (2019). McDonald’s Organizational Structure & Its Characteristics – An Analysis. Patmore Institute
Meyer, P. (2019). McDonald’s Mission Statement & Vision Statement (An Analysis). Patmore institute.
Pratap, A. (2019). FAST FOOD INDUSTRY PESTEL ANALYSIS.