Strategic Planning for Success
Added on 2019-12-03
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STRATEGIC PLANNINGTABLEOF CONTENTSIntroduction.................................................................................................................................................3Activity 1......................................................................................................................................................3Activity 2......................................................................................................................................................9Activity 3....................................................................................................................................................17Activity 4....................................................................................................................................................20
INTRODUCTIONThe management of every company needs to conduct effective strategic planning forachieving the growth of business. To create any organizational strategies, the company’smanagement is required to define their goals and target. Most of the firms are concentrating onfuture planning which is the most useful for increasing their growth rate (Kogan and Bobchek,2007).The present report is based on a UK based company which deals in online service and acts asa web based intermediary between independent takeaway food outlets and customers. Thementioned company operates in more than 13 countries (Just Eat, 2016). In this report, thestrategic planning of “Just-Eat” has been discussed along with different aspects that can affectthe organizational behavior, i.e. the environment, business plans, modeling tools for strategicplanning and factors that impact the organizational strategies have also been examined. This is alocal take-away restaurant where customers can place their order online. ACTIVITY 1Review of current position of the company in the marketJust Eat provides a platform to customers to search for a local take away restaurants so -as- to place orders online, and to choose from pick-up or delivery options. The customerspreferred it as the most convenient services, therefore, the mentioned company has the largenumber customers who visit and use company's website. According the secondary data gatheredfrom company's website, there are 8,000,000 Hungry customers who visit the company's websiteevery month. However, around 50% of them approx., 4,000,000 customers place an order, bywhich company generates revenues of +25% from online orders as compared to the phone (JustEat, 2016).Through BCG matrix, Just-Eat has to describe their long-term planning and the basicidea behind the use of this strategy is to get bigger market share with faster growth rate. Page | 3
Figure 1(BCG matrix)(Source: Crowley, 2004)According to the BCG Matrix, the firm is currently at the cash cow position where it has ahigh-market share but it is not able to get similarly great growth in the business. Theorganization generates cash which fulfills the needs to maintain the business. Low investmentwill not help them to get higher growth rate (Beekun, 2006).1.Dogs- The Dog section within BCG generally possesses low market share with lowergrowth rate,the result in not generating large volume of cash. Just-eat company does notbelong to this matrix as they have relatively large share within the UK market. Therefore,customer base within this section is low as company market share as well as growth is low.Customers are less attracted towards the services of Just Eat Company.2.Question marks- Another section is question marks that generally depicts increasing marketarea and growth by delivering quality and online food services within the UK market. Withthe increasing market growth rate, company features capturing low market share as onlinefood services and take away services are not preferred by all the customers that are residingin UK marketplace. Customer base of Just-Eat Company is low as compared to other firmswhich are delivering online food company. 3.Stars- However, the star section in BCG depicts that company is in the position to dominantthe marketplace by making online delivery of the food services to the UK customers. Inaddition to this, star section also features strong market share with higher market growth thatis beneficial for Just-eat company in increasing their image. Customer base within Starssection is very high as they are in dominant position as Just-Eat Company possessesrelatively very high market share and growth that assist them in attracting large number ofcustomers,Page | 4
4.Cash Cows- The last section in the BCG depicts the situation of cash cows that possess lowmarket growth rate but have high market share that result in gaining possible profit.However, the products and services of Just-Eat lies within the cash cows' section as they havehigh market share with lower growth rate within the market that is beneficial for thecompany to invest low amount to sustain in the market. Customer base within cash cows ishigh as Just-Eat Company has high market share as they are providing online food deliveryto the customers that is beneficial for the firm in the present scenario. 1.1. Importance of external factors that have an impact on organizationsThe external factors are the most important attribute that can create impact on the developmentof any company. These factors can be described by PESTLE analysis (see Figure 2).Figure 2: External factors which have an impact on the organization (PESTLE)(Source: Steiner, 2010)External factors which have an impact on the organization are as follows.Political: this factor deals with the government interference in Just Eat economic anddifferent development policies in regards of tax, environmental issues, labor law or traderestrictions. Political stability and predictable political environment are also a crucialissue for companies/Just Eat when choosing on which markets to operate in. As thecompany is doing its business virtually, hence there is not much interference of thegovernment in its business (Wallace, 2006). Page | 5
Economic: this factor includes economic growth, interest rates and exchange rates. Thisfactor has a major influence on the company’s operation and decision-making Social: this factor includes cultural and health consciousness aspects. Currently, onlineshopping is increasing, therefore, this aspect presents a major opportunity to thecompany. Technological: Just-Eat has to introduce different technical machines and software tomaintain the standard of their products (Wallace, 2006). Legal: the laws, especially laws regarding online businesses, need to be followed by thecompany. Environmental: JUST EAT needs to take into account that its operations and activities donot have a negative impact on the environment.1.2. Analysis of the main stakeholders and their needs and expectationsThe main stakeholders of Just-Eat are its investor, supplier, society and customers. Supply chainmanagement function uses these factors in planning their strategies for the organization. Theseall can have a huge impact on the development of the organization.a)Investors: they are the initial suppliers of the industry. There are different investors thathelp the company in financial factors such as a bank loan, financial institution andpartners. The investors are interested in knowing the financial position and credibility ofthe corporation before investing their money in it (Matthews, 2005). b)Suppliers: they are the distributors of raw materials which are used in manufacturingcompany goods. Suppliers are connected to different retailers from where they obtainresources for the company. Suppliers expect the company to adopt a fair credit andpurchase policy. c)Society: in ideal cases the company conducts a research on the society’s needs anddesigns its product line accordingly. The society needs to know whether or not the firm’sproducts and services are having any negative impact on the societal functions such ashealthcare and reliable quality levels of sourced raw materials.d)Customer: these are the main external stakeholders of the company. The customersdemand good quality products with proper information at competitive prices from theorganization (Matthews, 2005).Their needs and expectationsPage | 6
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