This study aims to design a growth strategy for Tops Pizza, a pizza making company based in the United Kingdom. The report discusses a comprehensive growth strategy in three stages and concludes that the plan can be a profitable move for the company.
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Running head: STRATEGIC GROWTH PLAN Strategic Growth Plan for an existing Small/ Medium sized business [Tops Pizza] Name of the student: Name of the university: Author note:
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1STRATEGIC GROWTH PLAN Executive summary This study is aimed at designing a growth strategy for the business. The business chosen for this purpose is a pizza making company “Tops Pizza” based in the United Kingdom. Tops Pizza is different to other pizza making companies in identifying and implementing innovative ideas. They have been doing well with creative ideas; however, by following a designed growth plan they can do even better than they are currently doing. Therefore, a comprehensive growth strategyfor the companyis being discussed in three stages. These are growth in the first 12 months, in between 1 to 3 years and after 3 years. At the end of this report it is being concluded that thegrowth plan canbe a profitable move. It is because of the current strategic direction of Tops Pizza, whichhelps themtaking advantage from opportunitiesin the market.
2STRATEGIC GROWTH PLAN Table of Contents Introduction......................................................................................................................................4 Section 1: A summary of the strategic position of the organisation................................................4 Boston Consulting Group (BCG) Matrix....................................................................................4 SWOT analysis............................................................................................................................6 Future business plans...................................................................................................................6 Section 2: A critical analysis of the industry/ sector/ market & competitive positioning...............6 Overview and trends in the Industry................................................................................................6 PEST analysis..............................................................................................................................7 Porter’s Five Forces.....................................................................................................................8 Competitive Positioning..............................................................................................................9 Section 3: A comprehensive growth strategy for the business......................................................11 For the next 12 months..............................................................................................................16 For years 1 to 3..........................................................................................................................18 For years 3 to 5..........................................................................................................................19 Section 4: The different issues involved in managing the growth; sources of funds, structural changes, new staff/ skills, new IT systems/ technology................................................................20 Conclusion.....................................................................................................................................22 References......................................................................................................................................24 Appendices....................................................................................................................................28
3STRATEGIC GROWTH PLAN Appendix 1: Reflection..............................................................................................................28 Appendix 2: SWOT analysis.....................................................................................................28 Appendix 3: PEST analysis.......................................................................................................29 Appendix 4: Competitor analysis table......................................................................................30
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4STRATEGIC GROWTH PLAN Introduction This report is aimed at designing a strategic growth plan for a chosen company “Tops Pizza”.It is the United Kingdom based takeaway pizza chain. The first store was opened for serving the consumers in 1989. Tops Pizza that has 41 stores around the south west is increasingly becoming one of the fastest growing chain of pizza stores in the United Kingdom. Factors that helped to expand to so many locations is their expertise in delivering delicious pizza and offering great service. Tops Pizza occupy a small yet very significant position in the United Kingdom food industry. The significance is due to its capability to serve and satisfy customers with delicious pizza. They are actually serving the needs of consumers especially millennials who prefer having pizza in offices, at homes and other places.Strategic growth plan is an essential business strategy adopted to increase market shares either by operating in the same market or by entering to a new (Ward 2016). The purpose isto create a strategic growth plan for Tops Pizzato provide some ways to do even better than the current. Section 1: A summary of the strategic position of the organisation Boston Consulting Group (BCG) Matrix Tops Pizza’smain activities are included as under; Operating stores in different parts ofthe United Kingdom Domestic supply chain
5STRATEGIC GROWTH PLAN According to the BCG matrix, Tops Pizza is at the ‘Question Marks’ position.This means that Tops Pizza is gaining significant market share in one of the fastest-growing industries.The profit margin could be lower; however, investment will always be needed to further the product and service level of the different pizza store brands.With 41 stores in the United Kingdom, it is in better position to leverage its business. It becomes easier to leverage the business with a robust growth plan. Notably, an effective use of resources have helped the company to survive over years and constantly add new stores to its business (Topspizza.co.uk 2019). The pizza delivery and takeaway industry has grown at 5% every year from 2014 to 2019 (Ibisworld.co.uk 2019). The revenue stood at£3bnfor a fiscal year 2018-19 (Ibisworld.co.uk 2019). 47,276 people are currently employed in this industry (Ibisworld.co.uk 2019). The number of businesses in this sector is close to 3,050 (Ibisworld.co.uk 2019). The list of top performing companies include Domino’s Pizza Group Ltd, Pizza Hut (UK) Limited and Papa John’s Pizza (Ibisworld.co.uk 2019). These pieces of information suggest that the UK pizza industry is largely dominated by majorly reputed companies in the sector. Due to the market being dominated by major players Tops Pizza should focus on innovative ideas to further their business. The UK Fast-Food Restaurants Industry is booming. The revenue generated by the industry is£19.1bntill the end of 2018 (Ibisworld.uk 2019). The number of people employed in this industry is equal to390,024(Ibisworld.uk 2019). The number of companies in this industry is close to42,154(Ibisworld.uk 2019). The average annual growth has remained1.9%from 2014 to 2018 (Ibisworld.uk 2019).
6STRATEGIC GROWTH PLAN Tops Pizza should consider opening new stores and adding few attractions to it. This means they should work upon providing seating space to customers, which most of the companies like McDonald also does not do in many of its stores. This all can be done by following an extensive growth plan. This paper serves exactly the same purpose. SWOT analysis (See Appendices section) The analysis suggests that Tops Pizza has potentials to do much better than the current. The ability to offer pizza quicker and at low-cost is a unique selling point for Tops Pizza. However, few areas need to be filled up with effective strategies. These are supply chain management, offering more number of eateries over a span of five years, heath conscious eatables, and avoiding competition from direct and indirect competitors rather creating a separate identity by following with trending facts. Future business plans The assumed business plans for Tops Pizza is as under; Opening new stores with few stores possibly offering seating space by means of franchising the business Solidifying the presence over a span of five years Increasing the number of stores if things turn well for the company Section 2: A critical analysis of the industry/ sector/ market & competitive positioning Overview and trends in the Industry
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7STRATEGIC GROWTH PLAN Takeaway pizza and delivery industry is booming inthe UK. Consumersare increasingly having pizza in their day-to-day living. Consumers inUKspend around£19.1bnon the pizza industry(Ibisworld.uk 2019). Takeout Pizza is the highest contributor to this figure. Pizza chains contribute maximum to the entire sales of UK Pizza. Pizza chains contribute to more than half of the entire UK Pizza restaurant sales. The rest of the sales are accounted by independent restaurants. The United Kingdomis home to some of the world’s leading pizza making companies. This includes but not limited to Pizza Hut, Papa John's and Domino's Pizza. Pizza Hut is operated by Yum Brands. The company also operates some of the popularly known fast-food chains like Taco Bell and KFC. The likes of Pizza Ranch and Papa Murphy's are preferred more over the giant Pizza chains likePizza Hut, Dominos’ Pizza and Papa Johns’.This is because Pizza Ranch and Papa Murphy's are cheaper than these giants.There is tough competition between pizza making companies inthe United Kingdom. From the piece of information furnished as in the above three paragraphs it can be said that the pizza making business isbooming in the United Kingdom. People just love to have pizza.It also serves their short-term purpose, which is to get something to have breakfast or lunch while being in offices or other suitable places.Additionally, it consumes less time to have a pizza, which is time-saving and fits with the busy office schedules.To attain and retain the competitive advantage it is important to identify, analyse and implement latest and emerging technologies. Such technologies will speed the pizza making process and thereby the order delivery time would also decrease. Hence, customer satisfaction rate would also increase. PEST analysis
8STRATEGIC GROWTH PLAN (See Appendices section) Based on the PEST analysis of pizza takeaway industry in the United Kingdom, it can be said that there are good prospects for Tops Pizza. The use of emerging technologies can help to improve the pizza making process, improve the customer satisfaction rate and of course the sales. However, there are a few challenges such as tax policy, employment laws, growing awareness on environmental pollution, increase in inflation rate and changing eating habits. Porter’s Five Forces The five forces are as mentioned below (Pilcher 2017): Bargaining Power of Suppliers (high):It is high as it does not have its own supplier system. It is also due to an incremented dependency on suppliers. Bargaining Power of Customers (high):Foods are available at affordable prices. Additionally, there are wide number of options to buy from. Competitive Rivalry within an industry (high):Competition is very high with Domino’s and Pizza Hut leading the market. List of competitors include but not limited to Papa John’s and Little Caesars. Threat of New Entrants (high):Opening pizza stores is not very expensive. Threat of Substitute Product (high):There are so many substitute products of pizza like chicken, hamburger and so forth. The piece of information furnished as above show that the food industry has still not reached its maturity stage. Indeed, it has the growth prospects. However, Tops Pizza can struggle to earn additional market shares considering that it does not have an impressive supply chain
9STRATEGIC GROWTH PLAN operations as compared to the industry’s leaders. It is, therefore, more recommendedto follow a robust growth plan that covers an improvement in the supply chain operations and also enhances the in-store experience for customers. Competitive Positioning Tops Pizza has not changed much from the day it came to the existence in regards to strategic direction. Historically they have maintained a very simple business process. The base of which was several factors.It follows a cost-leadership approach to remain affordable to customers.Simple menu is one of those. Tops Pizza was never focused on offering a wide range of foods to customers. Rather, they remained focused on offering tasty pizza. Apart from offering quality pizza to customers, delivery process had also remained one of the essentials to the business of the company. They remained constantly focused on improving the delivery system(Daviset al.2018). The current strategic direction remains more or less the same apart from development in the delivery and pizza making process. They will together take care of the food preparation process. Hence, the time span required to cook foods will decrease and the quality will improve (Daviset al.2018). In addition, the company is planning to expand its expertise in IT solutions while keeping the pizza making as its core operations. Competitor Analysis (Refer to Appendix 4 for Competitive Analysis Table) Goals: -
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10STRATEGIC GROWTH PLAN Tops Pizza:Tops Pizza is focused on increasing its market shares. It is quite justifiable too considering that it is yet to challenge the competition being posed form Pizza Hut and Domino’s Pizza. The market shares are nowhere in comparison to Pizza Hut, Domino’s Pizza, Papa john’s and others. Tops Pizza is concerned with price competitiveness. This is perhaps the one way using which a robust performance can be produced. Customers should have reasons to purchase pizza from pizza making brands(Fassam and Dani 2017). This is exactly one of the strategies to attract consumers. Tops Pizza is able to maintain a healthy customer basewith the quality of pizza offered to customers. Tops Pizza is also focused on providing ultimate delivery vehicle. Tops Pizza is also intended to attain and maintain an increased customer satisfaction rate. This is also the reason why Tops Pizza has been so innovative with its pizza making techniques and technological expertise. The use of locally sourced high-quality materials and application of strategies for an effective supplier-relationship management are just indicating its innovative expertise (Fassam and Dani 2017). Papa John’s:On the other hand, Papa John’s more or less has similar strategies as that of the Tops Pizza but differs in few regards. Papa John’s is also focused on increasing its market shares from since their inception to the food industry. The company is also focused on maintaining its price competitiveness (Bhat, Reddy and Mandanna 2018). It is more focused on increasing its brand loyalty whereas Tops Pizza is in increasing customer satisfaction. Although both are interdependent but still it shows that Tops Pizza knows exactly what areas to hit in order to increase brand loyalty for the company. Strategy: - Tops Pizza:The Company offer quality pizza at the most competitive price. This isa factor of competency that they possess(Barrows, Vieira Jr and DiPietro 2016).
11STRATEGIC GROWTH PLAN Papa John’s:Papa John’s is more focused on using better ingredients to be able to offer better pizza to consumers. This is indeed a better strategy and even superior to the one of Tops Pizza that is concentrating on improving the delivery system. However, delivery system is an essential part of pizza business. The delivery system must be controlled efficiently to be able to reach to more consumers. People mostly order pizza at their offices, homes and other convenient places (Barrows, Vieira Jr and DiPietro 2016). An effective delivery system would probably impact the customer satisfaction rate. Competitive advantage: - Tops Pizza:Brand recognition is one of the competitive advantages to the company. They are furthering it with their constant progress in technological developments. Managing human capital is the other advantage the Tops Pizza has over many of its competitors (Hollenbeck and Jamieson 2015). Papa John’s:The Company follows a segmented pattern of operations. The company is able to effectively separate its different business units. As a result of which there is less pressure on the management team. The rate of productivity is also high. Papa John’s efficiently manages quality control (Hollenbeck and Jamieson 2015). It does so with the help of professionals who are skilled and well trained on the product of the company. Professionals are well equipped with strategies to be used to be able to follow the business protocol. Section 3: A comprehensive growth strategy for the business
12STRATEGIC GROWTH PLAN This section covers a comprehensive growth strategy for Tops Pizza. The growth strategy will be discussed in three different stages over three different time span. The main purpose will be to attain significant market shares and become one of the leading names in delivery services. Plan Tops Pizzacan do better with itsdelivery services that are streamlined helping to deliver orders in less amount of time.The efficiency to make and delver pizza in less amount of time will create some good opportunities for the company. The company will continue to follow a cost-leadership approach while improving its supply chain operations and the infrastructure (Serra and Kunc 2015). Strategy Figure 1: The Ansoff Matrix of Growth (Source: Loredana 2016)
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13STRATEGIC GROWTH PLAN Tops Pizza will use“Market Penetration”as a growth strategy to operate more efficiently in the United Kingdom. This strategy will be supported through following mentioned steps. Additionally, the pizza maker will shortlist and approach a list offranchisesto increase its presence in the country. Franchising has its pros and cons; however, this has worked for other pizza makers as well. Tops Pizza while working with Franchise must ensure a few things as mentioned under; In a franchising agreement, there is little room for creativity. Tops Pizza should work only with those who perform and removing the under performers Making short-term contracts with franchises as there is no provision for a renewal of agreement. After when the contract is over Tops Pizza can approach to new franchises with new set of agreements (Fan, Kühn and Lafontaine 2017) The growth plan will have few elements under it as mentioned below(Kernbach, Eppler and Bresciani 2015); 1.Open up new storeswith added attractions like seating space 2.Offer tasty pizza more efficiently 3.Invest in people 4.Development of ways of working 5.Utilisation of technology and data 1. Open up new stores:The growth plan is expected to face challenges in variety of formslike innovationfromcompetitorsandexternalbusinessenvironmentintheUnitedKingdom. Moreover, structural changes will also affect the increasing number of stores. In such situation, Tops Pizza will be tested for its ability to respond to market changes and the opportunities,
14STRATEGIC GROWTH PLAN capabilitytoovercomeloomingthreatsanddevelopmentofnewproductsandservices. Nonetheless, Tops Pizza has the set of strengths helping it to deliver on all these aspects of a global business. 2. Offer tasty pizza more efficiently:Tops Pizza despite being a small company as compared to Pizza Hut and Domino’s Pizza has consistently been offering tasty and fresh pizza at the most affordable price.The pizza maker should use efficient technologies to be able to establish a significant hold in the market. 3. Invest in people:Tops Pizza will need to invest in people.Some of the new spaces will have added space for seating.More number of people will be required to be placed in operations at these new stores.These people will be called for recruitment and selection process. The recruitment and selection process willattract investments. Apart from recruitment and selection, there are other programsalso, which will consume spending. These are training to be given to the selected professionals. This is actually an essential part of operations that is being used to treat many issues such as cultural challenges. Tops Pizza stores in the United Kingdom will have people from diverse culture. There will be co-ordination issue between people from diverse culture. An influenced co-ordination does also affect the operations. Therefore, it is important that Tops Pizza has sufficient fund to utilise it on different activities such as those mentioned in this paragraph. 4. Development of ways of working:It is important that differencesin culturesdo not affect the productivity. Productivity will be measured both in context to the individuals and the company. Overall, employees are the valuable asset to a company. This asset can be managed and retained by providing employees a friendly work environment. A friendly work environment encourages not just to explore the personal skills but also motivate to learn something new.
15STRATEGIC GROWTH PLAN 5. Utilisation of technology and data:The new stores to be opened will accommodate some technologicaldevelopmentsacrosstheoperations.Oneofthemajorchangeswillbe implementing the information system. An information system provides an organized platform to capture, access to and utilize large-scale data. The information system will positively influence the efficiency to respond to queries in real-time. This will improve co-ordination between employees. Customer queries could be answered in real-time. This will positively affect the customer satisfaction rate. However, the growth of the business can face certain issues as listed under (Kumar 2016); Marketing implications:As Tops Pizza will go for franchises, this will impact on marketing efficiency of the pizza maker. The established market value of the franchises will be a boost for the pizza maker. However, there will be less scope for the pizza maker to intervene in the franchises’ operations. Hence, the effectiveness of operations can be affected. Development of innovative technical processes to increase competitiveness:It is challenging to develop and implement creative solutions to address a range of problems while working with franchises. It is because the pizza maker will have no direct impact on the operations of the franchises. There is little room for creativity. Cost containment or reduction:Since the agreement with franchises cannot be renewed annually, the pizza maker will have to wait till the contract is over to make and implement any strategies to reduce the operational cost. Overseas market growth:This will depend a lot on how the franchises perform.
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16STRATEGIC GROWTH PLAN Improving supply chain management efficiencies:The pizza maker will have no involvement in the supply chain operations as this will be managed by the franchises. The pizza maker have no room to implement any creative thought to the SCM. Quality control:This will totally be under the control of the franchises. Outsourcing of activities to improve cost efficiencies:In a franchising strategy, the pizza maker will not be outsourcing any of its activities rather getting a foothold in the chosen market with the help of the selected franchises. Capital investment requirements:The selected number of franchise will pay the initial franchise fee to the franchisor. In addition, the franchises will also pay royalties basing their revenue. This is often a percentage of gross sales revenue; however, can also be calculated from net sales. There is no standard royalty fee and is usually paid on a monthly basis. For the next 12 months In the first 12 months of operations, Tops Pizza will try to create value strategically. This will be done by effectively communicating and following value propositions. Value Proposition (Leroi-Wereldset al.2017) Key Partners:In regards to this, Tops Pizza will need to find strategic franchises who are able tosupport the business. Key Activities:In this aspect of the business growth, Tops Pizza will need to control its production process. The company also needs to create a branding strategy. Marketing and
17STRATEGIC GROWTH PLAN promotion of pizza and its contents are essential part of this segment of the business growth. They can discuss these things with their franchises and request them to consider these things. Key Resources:Key resources will be divided into three distinguished segments like physical resources, human resources and intellectual resources. Inphysicalresources, Tops Pizza will require attractive locations for its new stores. Inhuman resources,franchises will be required to initiate the business. In context tointellectual resources, Tops Pizza seek permission to access customer databases, doing partnerships with key partners etc. Value Propositions:“Tops Pizza will deliver pizza to its customers in just four minutes” Customer Relationships:Customer relationships does have a major impact on the business growth. In fact, a high customer satisfaction rate is essential to incrementing sales. Tops Pizza must incorporateitsoperationssystemwith acustomerrelationshipmanagement(CRM) software. This helps accessing to customers’ queries and details. Details will help to analyze the profile. Hence, the data could be used to customize the pizza quality. Customers’ queries will enable Tops Pizza respond to it in real-time. This will build up a good image of the company. The rate of customer satisfaction will also improve.This can also be used to establish effective communication with franchises. Channels:Channels is the building block using which Tops Pizza can reach to its customers, suppliers and strategic partners. Customers can be communicated with the CRM. On the other hand, enterprise resource planning (ERP) can be used to effectively communicate and track transactions with suppliers.However, the pizza maker may have no such scopes due to being in partnering relationship with franchises.
18STRATEGIC GROWTH PLAN Customer Segments:Demographically, Tops Pizza will not have any specific target. Indeed, the company will target the area with greatest number of people. The company will remain focused on carryout customers and delivery. CostStructure:Thecoststructurewillincludeeverythingfrommaintainingcustomer relationships, creating and delivering value and generating revenue. The costs calculation will also include key resources, key partnerships and key activities. Revenue Streams:Tops Pizza will calculate revenue streams by closely monitoring each of the customersegmentsinregardstorecurringrevenues.Inthis,ongoingpaymentswillbe considered as value proposition. For years 1 to 3 Being Excellent Pizza Maker Supplier-relationship management:The quality of pizza depends on two factors, the materials being used and the process being applied to make it. In both of the processes, supplier- relationship management is an essential task to conduct. The insourced materials need to be effective in both regards to cost and quality. To ensure getting good materials at competitive prices, it is important to utilise a few strategies. One of those being monitoring suppliers’ performance on a regular basis. This will help to differentiate between strategic suppliers and those that underperform. It is better toclosely work with franchises and encourage them towards these activities. Some exciting offers should be given to franchises occasionally to encourage them be loyal to the pizza maker(Oghaziet al.2016). Excellent delivery:Tops Pizza has been delivering orders in a less span of time in the United Kingdom. This is worth a feat(Cederfjäll, Broom and Kirik 2015).
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19STRATEGIC GROWTH PLAN Customer-oriented service:Tops Pizza will implement and utilise CRM to access to customers’ data in real-timeand interact with franchises to establish an effective intercommunication. In addition, CRM will also allow understanding customers’ demands. Accordingly, Tops Pizza can adjust with its offers (Navimipour and Soltani 2016). For years 3 to 5 Attaining Business Sustainability Reducing carbon footprint impact:In long-term, Tops Pizza will focus on reducing its carbon footprint impact. The major contributors to its carbon footprint impact will be the lights in stores and vehicles used to deliver pizza. The company will consider technologically advanced lights such as LEDs and more carbon efficient vehicles. LEDs comparatively emit less carbon as compared to lights normally being used in stores. Advanced vehicles emit less carbon as compared to outdated vehicles (DeBoer, Panwar and Rivera 2017). Hence, this will also contribute to reducing the carbon footprint impact of Tops Pizza. Reducing wastage:Tops Pizza will take extra initiative to propagate its concerns for wastage. The materials used for pizza packaging and the carrier bags are contributors of wastage (DeBoer, Panwar and Rivera 2017). Tops Pizza will conduct campaigns about how impactful are wastages and how to get rid of this. The company will actually try to empower its customers to avoid contributing to wastage. Empowering the community:Tops Pizza will also work towards empowering the community with which it operates. This will be done in number of ways. First, they will be given fair amount of chance to apply for jobs across the number of stores of Tops Pizza. In addition, social development works like supporting people affected from natural calamities will also take place
20STRATEGIC GROWTH PLAN (Mirviset al.2016). Most importantly, pizza will be made from fresh and high quality materials. Since, the concerns for healthy foods are growing Tops Pizza will also consider making healthy pizza. Healthy pizza will attract a different section of the consumer base who are very health conscious. Hence, Tops Pizza will have an increased customer base. Section 4: The different issuesinvolved inmanaging the growth; sourcesof funds, structural changes, new staff/ skills, new IT systems/ technology In this report, a comprehensive growth strategy for Tops Pizza is being discussed. However, any growth strategy is bound to face some barriers. These are issues involved in managing the growth. The comprehensive growth strategy can face some issues. These are: Sources of funds:Source of funds can be a major issue in the business growth. On a broader aspect, financing is of two types such as debt or equity. Each of the type of financing can affect operations during the business growth. Debt financing is also called as negative cash flow. Debt financing must come at scheduled intervals to avoid any negative consequences of it. Regardless of whatever be the earnings it should come at set intervals and also into set amounts. There is fixed obligation to be followed for repayment. Relying just on revenues to create financial resources will not alone help. Financing is needed to be obtained to avoid weakening the current financial position. There can be several ways of generating the initial capital. However, Tops Pizza can face problems fromovertradingat the time they are undergoing the expansion (Ali, Bentley and Cao 2016). Indeed, a probable lack of working capital in between investing in business growth and the profits is a problem and can potentially trouble Tops Pizza. This is because investments will be required on a regular basis in different areas. These are recruiting
21STRATEGIC GROWTH PLAN new staffs, managing facilities, conducting supplies, procuring raw materials and developing products with new features. Structural changes:Structural changes is an economic condition that affects both the businesses and the market. This can be caused by several factors such as new economic developments, changes in resource availability for any reason, global shifts in labor and capital and changes being caused from supply and demands of all resources (Kaiser, El Arbi and Ahlemann 2015). Tops Pizza can be tested for many of such factors. For example, if due to some reason the demands for pizza has fallen, this will impact the business and so the growth strategy of Tops Pizza. Possible reasons could include the adverse health impact of having excessive of pizza. In such situation, strategic management of business will help to sustain the business growth of Tops Pizza. With regards to the mentioned issue the best possible way would be to put additional focus on offering healthy pizza. This will be accompanied with extensive and appealing marketing communications. This will help to reestablish the brand image and support the business growth. New staff/ skills:The business growth will have new stores to be opened up. New stores will definitely have new people being recruited to support the operations. The company culture will be affected from every new inclusion in the workforce. As the company grows over a period of three to five years in future there will be more new faces included in the workforce. Hence, there will be cultural diversity at workplace. Tops Pizza would definitely never want its organizational culture to get derailed. Indeed, the company would look to deal with the challenges. However, this is always challenging to deal with such a diverse workforce. Also, it is never feasible to treat cultural differences with just few sessions of trainings. People inherit the culture from their parents, families and the communities. Cultural beliefs and practices is hard to be influenced but
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22STRATEGIC GROWTH PLAN rather can be controlled with effective techniques being applied to it (Peltoniemi 2015). In this regard, training can be used to let people understand how to cope with cultural differences at workplace. Moreover, efforts could be given on to orient the individual practice with that of the organizational goals instead of their personal preferences to the work. New IT systems/ technology:Every single business rely on huge volume of information. This pieces of information can be comprised of interactions with customers, employee details, business contacts, financial records, regulatory requirements and much more. This is indeed difficult and close to impossible to store such a large data and retrieve these efficiently on being required without having an organized system to facilitate such task. The larger the business grows the harder it becomes to ensure an appropriate sharing of information between the different business units. Information systems can help overcome such issues (Wheelenet al. 2017). However, implementing information systems is itself challenging for many reasons. First, identifying the right software is a tough task to conduct. An identification process will include cross-checkingthesoftwarefor itsfeasibilitywiththesystem.Thenextchallengeafter identifying the right software would be to purchase and implement it. Software management is the major challenge of implementation of information systems. The software may come across the kinds of service failures. During such failures different activities to be performed will remain affected. Hence, the quality of work will also be affected. Conclusion Therefore, this can be said Tops Pizzashould go for this recommended growth plan. The current strategic direction of the company is justifying the decision. The company is well equipped with resources guiding it to innovation excellence. It is also capable to counter with the business environmental challenges. In short-term, it needs to create values by appropriately
23STRATEGIC GROWTH PLAN designing value proposition. In value creation, effective relationship with employees, customers and suppliers is essential. For customer relationship management, the company needs to be expertise dealing with CRM. For an effective relationship with suppliers, ERP can be effective. In long-term, it needs to think of business sustainability by following ways as suggested in this report. Business sustainability will be attained by deploying strategies to reduce its carbon footprint impact, empowering the community and so on.
24STRATEGIC GROWTH PLAN References Ali, A., Bentley, Y. and Cao, G., 2016. The influence of supplier collaboration on green supply chain management practices and sustainable firm performance in UK food supply chain SMEs. Barrows, C.W., Vieira Jr, E.T. and DiPietro, R.B., 2016. Increasing the effectiveness of benchmarking in the restaurant industry.International Journal of Process Management and Benchmarking,6(1), pp.79-111. Bowen, H.P., Baker, H.K. and Powell, G.E., 2015. Globalization and diversification strategy: A managerial perspective.Scandinavian Journal of Management,31(1), pp.25-39. Cederfjäll, E., Broom, L. and Kirik, D., 2015. Controlled striatal DOPA production from a gene delivery system in a rodent model of Parkinson's disease.Molecular Therapy,23(5), pp.896-906. CNBC 2019.Papa John's sales are up for grabs, Domino's emerges as the early winner. [online] CNBC.Availableat:https://www.cnbc.com/2018/08/10/papa-johns-sales-are-up-for-grabs- dominos-emerges-as-the-early-winn.html [Accessed 9 Feb. 2019]. Davis, B., Lockwood, A., Alcott, P. and Pantelidis, I.S., 2018.Food and beverage management. Routledge. DeBoer, J., Panwar, R. and Rivera, J., 2017. Toward a place‐based understanding of business sustainability: The role of green competitors and green locales in firms' voluntary environmental engagement.Business Strategy and the Environment,26(7), pp.940-955. Fan, Y., Kühn, K.U. and Lafontaine, F., 2017. Financial constraints and moral hazard: The case of franchising.Journal of Political Economy,125(6), pp.2082-2125.
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25STRATEGIC GROWTH PLAN Fassam, L. and Dani, S., 2017. A conceptualunderstanding of criminalityand integrity challenges in food supply chains.British Food Journal,119(1), pp.67-83. Hollenbeck, J.R. and Jamieson, B.B., 2015. Human capital, social capital, and social network analysis: Implications for strategic human resource management.Academy of management perspectives,29(3), pp.370-385. Ibisworld.co.uk2019.PizzaDelivery&Takeaway(UK)-IndustryResearchReports| IBISWorld.[online]Ibisworld.co.uk.Availableat:https://www.ibisworld.co.uk/industry- trends/market-research-reports/accommodation-food-service-activities/pizza-delivery- takeaway.html [Accessed 13 Apr. 2019]. Ibisworld.uk 2019.Fast Food Restaurants – UK Industry Research Reports | IBISWorld. [online] Ibisworld.uk. Available at: https://www.ibisworld.uk/industry-trends/market-research- reports/accommodation-food-services/fast-food-restaurants.html [Accessed 13 Apr. 2019]. Kaiser, M.G., El Arbi, F. and Ahlemann, F., 2015. Successful project portfolio management beyondprojectselectiontechniques:Understandingtheroleofstructuralalignment. International Journal of Project Management,33(1), pp.126-139. Kernbach,S.,Eppler,M.J.andBresciani,S.,2015.Theuseofvisualizationinthe communication of business strategies: An experimental evaluation.International Journal of Business Communication,52(2), pp.164-187. Kumar, D., 2016.Enterprise growth strategy: vision, planning and execution. Routledge.
26STRATEGIC GROWTH PLAN Leroi-Werelds,S.,Streukens,S.,VanVaerenbergh,Y.andGrönroos,C.,2017.Does communicating the customer’s resource integrating role improve or diminish value proposition effectiveness?.Journal of Service Management,28(4), pp.618-639. Loredana, E.M., 2016. The Use Of Ansoff Matrix In The Field Of Business. InMATEC Web of Conferences(Vol. 44, p. 01006). Mirvis, P., Herrera, M.E.B., Googins, B. and Albareda, L., 2016. Corporate social innovation: How firms learn to innovate for the greater good.Journal of Business Research,69(11), pp.5014-5021. Navimipour, N.J. and Soltani, Z., 2016. The impactof cost, technologyacceptanceand employees' satisfaction on the effectiveness of the electronic customer relationship management systems.Computers in Human Behavior,55, pp.1052-1066. Oghazi, P., Rad, F.F., Zaefarian, G., Beheshti, H.M. and Mortazavi, S., 2016. Unity is strength: A study of supplier relationship management integration.Journal of Business Research,69(11), pp.4804-4810. Peltoniemi,M.,2015.Culturalindustries:Product–marketcharacteristics,management challenges and industry dynamics.International journal of management reviews,17(1), pp.41- 68. Pilcher, J.M., 2017.Food in world history. Routledge. Serra, C.E.M. and Kunc, M., 2015. Benefits realisation management and its influence on project successandontheexecutionofbusinessstrategies.InternationalJournalofProject Management,33(1), pp.53-66.
27STRATEGIC GROWTH PLAN Topspizza.co.uk2019.[online]Topspizza.co.uk.Availableat:https://topspizza.co.uk/story [Accessed 13 Apr. 2019]. Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer. Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017.Strategic management and business policy. pearson.
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28STRATEGIC GROWTH PLAN Appendices Appendix 1: Reflection Bydoingthistask,thelearnerwasabletoidentifyandunderstandarangeof management strategies that are used on a day-to-day basis. Most importantly, this will help the learner clear his or her academics successfully. A management task requires brainstorming to get ideas on the given task and to be able to effectively conduct it. On a practical ground, the gained knowledge from this task will help the learner in becoming an effective part of the business. For a professional, it is important that it is able to identify the problem situation and the relevant solution. This task has helped learning this tactic, which could truly be useful on practical ground. The gained knowledge from the task will assist in handling range of problems, brainstorming to identify range of solutions and using appropriate management skills to select the best of all strategies. Appendix 2: SWOT analysis Strengths (S) Quick service Low cost Weaknesses (W) Brand recall Absence of extensive channel network Ineffective supply chain NopresenceoutsidetheUnited Kingdom Low staff retention
29STRATEGIC GROWTH PLAN Eateries are in less numbers Opportunities (O) Boomingpizzatakeawayindustry across the United Kingdom Health conscious eatables Threats (T) Healthier alternatives Changing eating habits of consumers Both direct and indirect competition Table1: SWOT analysis (Source: Topspizza.co.uk 2019) Appendix 3: PEST analysis Political (P) Business taxation Laws on employment Strict legal regulations for increasing pollution Economic (E) Economicrecessionhasminimal impact as prices are largely affordable Increase in inflation rate will impact the pricing negatively Social (S) Different classes such as lower class, middle class, middle upper class and upper class have an impacton the industry Changing eating habits Technological (T) Baking and heating ovens can increase the service efficiency The use of telemarketing and internet canbeusedadvertiseproductand connect with people Customerdatamanagementcan benefit in offering relevant services Table2: PEST analysis
30STRATEGIC GROWTH PLAN (Source: Ward 2016) Appendix 4: Competitor analysis table FACTOR Compan y(Tops Pizza) Strengt h Weaknes s Competito r (Papa John’s) Importance to Customer Products3NA4 Good quality products Price4NA4 Affordable ratesfor pizzaand otherfood items Quality4NA4Tasty foods Selection324 Wouldlook formore new foods Service4NA4 Great customer experience
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31STRATEGIC GROWTH PLAN FACTOR Compan y(Tops Pizza) Strengt h Weaknes s Competito r (Papa John’s) Importance to Customer Reliability4NA4High Stability4NA4High Expertise324 Thereare areasfor improvemen t Company Reputation 3NA4 Customer needs trusted brand Location3NA4Accessibility Sales Method 323 Eateriesin stores should be increased Advertising234Consumers should know whatnew andexciting
32STRATEGIC GROWTH PLAN FACTOR Compan y(Tops Pizza) Strengt h Weaknes s Competito r (Papa John’s) Importance to Customer they will be getting Image314 Affects customer loyalty level Table3: Competitor analysis table (Source: As created by the author) The above table gives a comparative analysis of Tops Pizza and its competitor company Papa John’s. Scores are being given in a range of (1-5).