Organisational Strategy

This study discusses the key challenges faced by Pizza express in the external environment, important aspects of its internal business situation, and strategic options for sustaining future growth in the UK and international market.

Organisational Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Key challenges faced by pizza express in external environment................................................1
Important aspects of internal business situation of Pizza express...............................................3
Strategic options and direction for Pizza express to sustain future growth in UK and
international market....................................................................................................................5
Steps to develop Pizza express in next 5 years in UK and international market:-......................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Organisational strategy is the respective actions that a business takes in order to achieve
its long term goals and it helps the organisation to have huge profitability of its
business(Oyewobi And et.al, 2016). Present study is based on the organisation Pizza express that
is a restaurant group founded in the year 1965 by Peter Boizot and is having its headquarter at
Uxbridge, UK. Report will include, different key challenges that Pizza express faces in external
environment in UK. Further report will include the important aspects of internal business
situation of Pizza express. Report will also include different strategies options that Pizza express
have to adopt in order to sustain its future growth in UK as well as in international market. At the
end report will recommend effective steps that company have to develop over the 5 years in UK
and also in international market.
Key challenges faced by pizza express in external environment
Figure:- 1
There are different challenges that pizza express is facing due to various external
environment factors in UK. These factors affect the business of Pizza express in following
ways:-
 Political factors:- There are different political factors that affects the business
organisation like government policies, political instability, tax policy, trade restrictions
1
Illustration 1: Pestle analysis

etc. As UK government is having its focus on health of its people, they have implemented
different policies for the same. As Pizza Express is coming in fast food category, it faces
criticisms from people as well as government. Company is targeting the middle class
people and with international trade, they have reached global market. However, due to
trade restrictions, there are many countries in which Pizza express have not been able to
make its position. Pizza express is in need of effective strategy to overcome these
challenges and have to work to lower taxation impact on its firm(Haula, 2018).
 Economic factors:- There are different economic factors that affects business like
economic growth, interest rate, inflation etc. The different interest rates and consumer
spending affects the opportunities of Pizza express and as people are switching to healthy
diets the consumer need is getting lower. People nowadays want to spend its income in
healthy products and that creates challenge for Pizza express. It is very important for the
organisation to deal with these economic challenges because competition is rising as
different substitutes are available in market.
 Social factors:- There are different social factors that brings challenge for the
organisation. These factors are health consciousness, age distribution, attitude of
population etc. There is rise in demand for organic and veg foods as lifestyle of
population is changing, that creates another challenge for Pizza express. Attitude of
population is also changing as they are becoming more health conscious and this affects
the demand and supply of products that pizza express is offering to its
customers(Chhabra and Kiran, 2015) .
 Technological factors:- There are different technological factors that affects the
organisation. As competition is rising and all the restaurants are coming with innovative
promotional activities in order to make the product recognised in market, expenses of
Pizza express also increases. With technology advancement, the customers services
become better and easy delivery of foods products is there. For the same, company have
to invest in huge amount in order to effective technology in hand.
 Environmental factors:- There are different environmental factors that create challenge
for the organisation like scarcity of raw material, ethical and sustainable demand, carbon
footprint. As there is demand for sustainability in the organisation, it creates challenge for
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Pizza express. As company is producing fast food products, it becomes tough to bring
healthy and sustainable products for the customers(Banu, Rahman and Khan, 2018).
 Legal factors:- There are different legal factors that affects the organisation like, heath
and safety, consumer rights and laws, product safety etc. It becomes challenge for pizza
express to maintain the taste and quality of its products with change in demand of
customers with healthy food needs. There are different laws related to heath and safety
and there are many safety issues that comes to people who are working in pizza express.
It is therefore challenge for the organisation to have effective safety of its employees and
to provide healthy foods to customers that already have perception that products of Pizza
express is not healthy.
Important aspects of internal business situation of Pizza express
Figure:- 2
There are different internal strength and weakness of Pizza express and also different
opportunities and threats that are essential to identify in order to make effective strategies for its
long term growth.
STRENGTH
 Pizza express is having good reputation
in market for the taste of its products
WEAKNESSES
 Financial difficulties are arising due to
downturn in consumer demand that
3
Illustration 2: SWOT analysis

that are pizza, pasta etc.
 Company is having effective
promotional activities that attracts most
of the customers.
 Having effective and attractive
infrastructure that attracts many of its
customers to visit again and again.
 They are offering its product at
reasonable price with good quality so
that middle class people can easily
afford its products.
 There are about 470 restaurants of
Pizza Express in UK market that makes
the service easily available to all its
customers.
 Satisfying the employees by giving
them discount at Pizza express and
giving food allowance on shifts(Kumar,
and Bansal, 2015).
directly affects the business reputation
and its growth in global market.
 High staff turnover is there as
employees are getting less pay and
there are many unsatisfied employees at
Pizza express.
 Not able to provide sustainability for its
business. As competition is increasing
and customers are switching to
products that are healthy, company is
not able to provide the same.
 Not able to compete with respect to its
pricing strategies. There are many
substitutes available in market that are
providing the same product with
effective product strategies.
 As demand of healthy products is
increasing, company is not taking
initiative to provide the sameHossen,
2018).
OPPORTUNITIES
 By recognising potential partners and
suppliers Pizza express is having
opportunity to take its products
effectively in global market.
 Company is redesigning its 36 products
and that brings opportunity for them to
take there position in market.
 Pizza express is having opportunity to
increase its sales by having
THREATS
 Company is paying staff less than the
legal minimum wage.
 Company is earning lower revenue that
leads to lower profit and the investor
hesitate to invest as risk options rise for
them.
 Threat of new entrant is common as
competition is increasing and
companies are coming with more
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understanding of its competitors and
taking appropriate strategies into its
consideration(Zineb, 2015).
 Company is having growth potential
with effective management of its
organisation.
effective products that are healthy for
customers.
Strategic options and direction for Pizza express to sustain future growth in UK and international
market
There are different strategic options and direction for Pizza express that companies have
to adopt in order to sustain future growth in UK and also in international market. Organisation
have to use Ansoff's matrix in order to identify the respective strategic options that are as
follows:-
Figure:- 3
 Market penetration:- With this strategy, business focus on selling existing products into
existing market by making effective changes in its product and service quality. Pizza
express have to use this strategy in order to have long termed growth by achieving
competitive pricing strategies and promotion mediums(Huang and Lin, 2017).
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Illustration 3: Ansoff's matrix

 Market development:- In this growth strategy, business sells it existing products in new
market. This strategy helps the organisation to extract new market share. Pizza express
can sells its products in new geographical market with new distribution channels. As
company is already having good reputation in market, they can easily take position in
those market. This strategy is risky for Pizza express so, before producing its products in
new market, it is very essential for the company to do proper market research before
targeting new market(Loredana, 2016).
 Product and development:- In this growth strategy, business introduce new products in
existing market. This strategy requires product modification. As demand of health
conscious product is rising in UK as well in international market, Pizza express have to
make strategies in order to have product development and modification. This strategy
helps the organisation to attract the respective customers with new product offerings.
Company also have to work to make the product modified and also differentiable from its
competitors. For the same company have to take help of research and development with
innovative ideas(Schawel and Billing, 2018).
 Diversification:- In this growth strategy, organisation introduce new product in new
market. This strategy is very risky for the business and requires lot of research before
implementing it. As Company is having good reputation in market, it is not tough to
develop sustainable products and introduce the same in new markets as this strategy if
implemented effectively with effective market research can be highly rewarding for Pizza
express(REZAEI, KHAVARIAN and GHAFURZADEH, 2016).
Therefore, organisation can use the following strategies in order to have competitive
advantage and these strategies can helps the organisation in long run.
Steps to develop Pizza express in next 5 years in UK and international market:-
The steps that Pizza express have to adopt in order to have development in next 5 years
are as following:-
 Entry signals:- Pizza express have to alert its employees and start thinking to bring
change in organisation. Company have to identify its competitors and have to come up
with innovative solutions. The major changes are required with respect to products
innovation that is healthier products and increasing wages of employees in order to
reduce employees turnover(Eldredge And et.al., 2016).
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 Purpose:- Pizza change have to clearly define its purpose and change agents have to
gather different information in order to develop the strategies effectively and to resolve
different conflicts that are arising related to product development and employees
turnover.
 Assessment:- The overall issues that organisation is facing have to be reviewed in order
to work effectively in achieving overall goals and budget of the organisation. It is very
important for Pizza express to reallocate its resources in order to bring effective changes
in organisation and within there budget.
 Action plan:- Effective plan have to be developed in order to solve the problems related
to pricing strategies and taking the future trends in consideration. Employees have to be
trained with new training programs and proper action plan have to be implemented.
 Intervention:- Implement the intervention plan and train the employees effectively for
having less disrupt business operations.
 Evaluation:- After intervention, it is responsibility of the business to collect and measure
the outcomes so that effective actions can be taken to improve the actions that are taken
for product and market development(Jabri, 2017).
 Adoption:- Adopt the changes in organisational policy and make them mandatory
process for all the employees.
CONCLUSION
From the above study it is been concluded that Pizza express is facing different
challenges due to various external environment factors in UK. Report also concludes that there
are different internal strength and weakness with respective opportunities and threats that Pizza
express is having and are playing essential role to identify effective strategies for its long term
growth. Report further concludes that there are different strategic options that Pizza express have
to adopt in order to sustain future growth in UK as well as in international market. Report also
concludes that in order to long term growth of its business, Pizza express have to develop
effective steps that may helps in bringing changes in the organisation.
REFERENCES
Books and Journals
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Banu, N.T., Rahman, S. and Khan, R., 2018. Freddy’s coffee shop: Expanding the coffee
business in Bangladesh. SAGE Publications: SAGE Business Cases Originals.
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Beverage Sector. Productivity. 56(2).
Eldredge, L.K.B. And et.al., 2016. Planning health promotion programs: an intervention
mapping approach. John Wiley & Sons.
Haula, K., 2018. Online Shopping and Drone Technology in Russia. In Russian Regions in the
Focus of Changes: Conference proceedings.—Ekaterinburg, 2018 (pp. 47-60). LLC
Publishing office EMC UPI.
Hossen, M., 2018. Analysis of outsourcing industry and internship experience from Taskeater
Bangladesh Ltd.
Huang, K.C. and Lin, Y.C., 2017. The Battlefield of IoT: Competitive and Cooperative
Relationship Among Smart Home Vendors.
Jabri, M., 2017. Managing organizational change: Process, social construction and dialogue.
Palgrave.
Kumar, P. and Bansal, S., 2015. SWOT ANALYSIS: WHAT DOES FDI HOLD FOR THE
INDIAN RETAIL SECTOR IN 21TH CENTURY?. International Journal of Research in
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Loredana, E.M., 2016. The Use Of Ansoff Matrix In The Field Of Business. In MATEC Web of
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Oyewobi, L.O. And et.al, 2016. Relationship between competitive strategy and construction
organisation performance: The moderating role of organisational characteristics.
Management Decision. 54(9). pp.2340-2366.
REZAEI, M., KHAVARIAN, A. and GHAFURZADEH, M., 2016. The Development of
Industry in Yazd Province by Using the SOAR Strategic Framework and ANSOFF Matrix.
Schawel, C. and Billing, F., 2018. Ansoff-Matrix. In Top 100 Management Tools (pp. 31-33).
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Zineb, S.A.Y.L., 2015. The International business environments of franchising in Morocco.
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ONLINE
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q=pestle+analysis&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjc7O_MwsrlAhWMqI
8KHTgvAc8Q_AUIEygC&biw=1926&bih=1012#imgrc=GaL7ZA4NlIR5TM:>
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q=ansoff+matrix&source=lnms&tbm=isch&sa=X&sqi=2&ved=0ahUKEwjY7r_c6crlAhW
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