MGT 510 Assessment: Evaluating Red Rooster's Corporate Strategy

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Added on  2024/05/15

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This essay provides an analysis of Red Rooster's corporate-level strategies, examining their approach to business development and revenue growth since their establishment in 1972. It discusses the importance of strategic decision-making and classifies strategies into corporate, business, and functional levels, emphasizing the significance of corporate-level strategy for organizational management. The essay further elaborates on different types of corporate-level strategies employed by Red Rooster, including growth, stability, and retrenchment strategies, detailing their characteristics and applications. It highlights the use of growth strategies to increase sales and revenue, stability strategies to maintain current success, and retrenchment strategies to improve the company's status. Additionally, the analysis touches on the implementation of business-level strategies, such as cost leadership, and the utilization of value chain analysis to gain competitive advantages, emphasizing the importance of maintaining food quality and hygiene to attract customers.
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Table of Contents
Introduction:..........................................................................................................................................2
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Introduction:
There is a company called Red rooster which was established in 1972 in Australia. This
company is all about food and this company focus on to serve the best food to the customer.
This company provides a product like wraps, burgers, chicken, and any more. To develop and
increase the revenue of this company, have to make a strategy in order to cooperate level so
from which it helps to increase the sales revenue of the company.
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Strategy: The word strategy means to make a decision so it can change the business
environment in order to achieve the expectation so it helps to increase the revenue of
company and establish the name of the company in between all the people. The strategy has
many characteristics, such as strategy which is made can affect the entire organization and
strategy should be complex so no one can understand the strategy as the same company
planned. There are three level strategy can be classified. The first one is Corporate level
strategy, second is the Business level strategy, third is Functional level strategy. To increase
the organization’s management and revenue, the company should have to deal with
corporate-level strategy.
Corporate level strategy: cooperate level strategy is used for creating the strategy that what
type of business is good for to compete in. The corporate-level strategy is used to careless
and safe analysis of choosing the business from which the company can easily compete in.
The Red Rooster company should have also make a strategy at the business level so it will
helpful for the company. There are many characteristics of corporate-level strategy which is
used in company they are following, this type of strategy is made by top-level management
which takes the input from middle level and lower level management to create a process.
There are many types of corporate-level strategy which can be used by this company called
Red Rooster such as, Growth, Stability, Retrenchment strategy. The growth strategy as the
name indicates that creates a strategy in which to achieve the growth of sales and revenue of
the company which means to promote the company all over Australia so everyone will know
to the company and from this their sales can easily growth. There are two types of growth
strategy, the first one is Concentration strategy which is used to do more concentrate more
resources on the product and their chain values. And the second one is Diversification
strategy which means if the growth is reached to the peak and then there is no chance of more
growth and this strategy is used for further growth. In the company red rooster is reached to
the more or more people of Australia and their growth is increasing and at any time if the
growth reached a peak than this strategy will be used for further growth. This can be done by
producing more food at same time and their quantity and quality will be same as before they
did. Stability strategy is used to maintaining the current strategy which can give success to
the business with little or no change. The word stable also indicates that this strategy is longer
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than other strategy and this strategy can be created with the help of current strategy with the
addition of little changes. The company can use this strategy by three types, they are
following: No change strategy means if the company red rooster will adopt this strategy than
it can say that this company is satisfied and happy with their current strategy which gives the
best result to the company in terms of revenue and management. Profit strategy means it is
used to make a profit more from the company. It can be done by increasing sales prices and
cut the prices. The company red rooster can increase the sales by cut the cost of the product
from which the sale increase and profit will also increase. And the last type of corporate-level
strategy is Retrenchment Strategy which is used to improve the status of the company, means
if a company performing poorly and find in the weak list than this strategy is made to used to
improve the company’s status and remove their weakness and to pop from the weak
competitor’s weak list.
The company called red rooster has implemented the business level strategy because it is
competencies of the company which are used to satisfy the customer because customer is the
key to business-level strategy. In Red Rooster, there are applied different sorts of prominent
business policies. Therefore, it has been succeeded to get appropriate growth in its marketing.
Talking location of the Red Rooster, it is easy and highly accessible where every people can
visit effortlessly and conveniently. In the Red rooster company the cost leadership strategy is
used which means all food of that company we can get at affordable price and this food is
healthy, fresh and as well as yummy too so more or more customer will attract to this
company and their growth will increase and also increase its revenue...
The current strategy is used by the company red rooster is growth strategy, because every
company wants to grow in their particular field. this strategy is used to grow the revenue of
the business and to promote this business to more or more people. The value chain analysis is
also used currently by the red rooster company. The value chain analysis is a range of
activities of strategy of the company which is required to design, produce, market, deliver,
and support the products or services or the company which is indispensable for getting
competitive advantages in organization. In other words, it can be defined as it is a systematic
component in industry for delivering valuable products or services to the customers. The main
thing is that if any strategy is done but the company should take care of that the food quality and
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quality will be good and the food will also a fresh and hygienic at lowest price so that the customer
can attract easily without doing any strategy.
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