Strategic Management Report: Pizza Club's Strategic Analysis and Plan

This report delves into the realm of strategic management, examining its core concepts and practical applications within the context of Pizza Club, a prominent fast-food chain operating in New Zealand. The report begins by defining strategic management and its significance in achieving organizational goals, emphasizing the role of leadership and culture in the strategic planning process. It then explores the influence of leadership and culture on strategic plans, highlighting the importance of flexibility, adaptability, and goal unification within the organizational structure. The report also provides an overview of the external and internal analysis techniques, with a focus on Porter's Five Forces analysis to assess the competitive landscape and internal strengths and weaknesses of Pizza Club. Furthermore, the report emphasizes the relevance of strategic management in the current business environment, underscoring its role in achieving competitive advantage. Overall, the report provides a comprehensive analysis of strategic management principles and their application in the context of Pizza Club, offering valuable insights for students and professionals alike.

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Strategic management
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Strategic management
Contents
Introduction......................................................................................................................................3
Impact of leadership and culture on strategic plan..........................................................................3
Concept of strategic management....................................................................................................4
Relevance to strategic management.................................................................................................6
Strategic Management Tools...........................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Strategic management
Introduction
Identifying and describing the strategies and plans which can be adopted by the management and
the senior level in an organization for the attainment of the goals and targets is the mechanism of
strategic management (Pearce and Robinson, 2013). The concept can be implemented within the
organizational structure for maintaining a high level of performance and also attainment of
competitive advantage. The company is said to be at the competitive advantage when the
profitability is more than it average profitability in the industry. The term can also be defined as
the acts or the decisions which are to be taken by the managerial staff on the basis of the
outcomes of the performance of the entity. Right and appropriate decisions are required to be
taken by the managers and for that, the entity should a thorough knowledge and analysis of
competitive environment within the industry. SWOT analysis can be proven as a great option for
analyzing the business environment for the entity. The concept can also be considered as a
preparation or planning for predictable and unfeasible contingencies. Strategic management
offers the employees with a broader point-of-view which will enable them to understand about
their job and how it suits to the organizational plans and also related with the other employees.
The below-executed analysis has been made focused on Pizza club which has been ranked as one
of the leading organizations. The business corporation is into offering the diverse range of pizza
in the regions of New Zealand. They entity have total 10 branches in the New Zealand, eight
branches in Auckland one in Hamilton and one in Tauranga. The below-presented report has
been focusing on the strategic management plan.
Impact of leadership and culture on strategic plan
Leadership and culture have been considered as an integral component in the concept of strategic
planning and also plays a crucial role in the same process. The organizational culture includes
the beliefs, thoughts, norms, and regulations of the Pizza Club. The basic requirement for a
successful strategic plan is to be a well-coordinated alignment with the organizational culture
followed in the Pizza Club. It has also been seen that the company has to adopt team culture
within the organization. It not only reduces the efforts of each individual but it also enhances the
productivity of the firm. Teamwork reduces the error generation chances and hence the goals of
the firm can be achieved in a better way. It is the role of the leader to make sure that they

Strategic management
implement team culture within the organization (Vogel and Güttel, 2013). Culture is built up by
the existing workers of the firm by their activities and till the time, present stakeholders will not
follow the basic regulations and policies. It also assists in making professional decorum in the
workplace. Apart from this, it is a role of the management to motivate their employees at various
time intervals. This is also due to the fact that enthusiasm of stakeholders also helps in building
positive and effective working culture. Better leadership always helps in managing a human
resource in the appropriate manner. Since the leaders have a very important role in arranging
resources as per the requirement of the firm. The below mentioned are some of the
characteristics of the organizational culture of Pizza club which can be considered as very much
significant for developing a successful strategic plan:
Flexibility and adaptability: The organizational culture should be flexible in nature as this will
embrace and develop an environment which will enable high productivity and open
communication amongst the employees. This will be proven very much beneficial for the success
of the strategic plan. It is also important for the firm to adopt changes as per the requirement of
the strategic management. It can only be possible if the management monitors the whole process
that on a regular basis.
Goal unification: Strong, flexible and unified culture will develop a positive approach towards
strategic implementation and this will also affect the process of implementation in a positive
manner, by the alignment of goals (Merkert and Hensher, 2011). When the focus is on
productivity and accomplishment of a primary mission then goals can come into alignment. It
will help a company in achieving the goals and objectives at a much faster rate.
And the same is with leadership, as an implementation of strategic plans and corporate strategy
requires team efforts. Team efforts can be obtained in an effective manner if there is a provision
of appropriate leadership. For motivating the employees the leaders should have involvement in
the team and the tasks performed. Leadership has to make sure that they improve the
performance of the firm by enhancing the skills of their employees. For proper implementation
of the firm’s strategic management leadership needs to be strong. If the company leadership is
weak then they may not handle all the operations. The management has the role of making good
relationship with the employees of the firm which it can utilize in the time when an issue arises.

Strategic management
Concept of strategic management
The concept of strategic management has been described by making use of a number of
approaches and theories. By making utilization of the approaches the business organization can
make fulfillment of the requirements of the stakeholder in a systematic manner. Management and
the allocation of the resources amongst the stakeholders are the two significant operations which
are executed by the adoption of the mechanisms of strategic management.
Strategic management is a wider scope that has multi-dimensional aspect and has to be taken
care off. It is necessary for the firm to make continuous improvement in this strategy so that it
helps in gaining the competitive advantage over other competitors. Since in the fast food industry
the number of the company is increasing at much faster rate and hence it is important for the
company to make the most effective business strategy.
Implementation of sustainability and CSR approach has been done by Pizza Club for attracting
the investors and making them invest in the entity and this will aid and assist the firm in
expanding the business in the global grounds (Molina-Azorin, 2012). Corporate social
responsibility is one of the basic things that company has to manage. It helps in making the good
image of the company. This kind of strategy helps in expanding to many other parts of the world
as well as retaining the base customers.
Stakeholders are those people who are directly or indirectly connected with the functionalities of
the firm like employees, customers, directors etc. These all people are an integral part of the
organization and its business. They all have the distinct role in the success of the organization.
They help in fostering the growth of the firm. Any strategy made inside the firm must be based
on their consent as well as they must be involved in strategic management procedure in order to
make it strong, innovative and smooth. It is also important for the firm to take all stakeholders in
the process of making decisions as well as in making of the strategic management (Priem, Li and
Carr, 2012). Stakeholders have to make sure that add value to the consumers.
Strategic management is the procedure using which plans and policies for achieving the goals
and objectives set by the firm. It is also known as the blueprint of the plan that will be
implemented for performing the operations of the firm so as to achieve desired targets which
were pre-set. Decisions like setting up the targets, availing useful resources that will be used in

Strategic management
the operations, planning and implementing strategies so as to gain competitive advantage etc.
procedures are done under the strategic management concept.
Relevance to strategic management
At present time business, it has become important for the firms to take immediate as well as
crucial actions. It is necessary if the firm has to achieve its goals in a smoothly. Sometimes it
happens that management fails to take decisions that are effective. It increases the chance of
failure and in order to reduce the chances it, decisions must be taken by stakeholder
management, strategic management concept is developed (Gumerov et al., 2015). For enhancing
the efficiency of firm concept related with strategic management plays the crucial role. Some of
the elements of strategic management that defines the relevance of strategic management concept
in regards to Pizza Club New Zealand:
External Analysis
The external analysis has been considered as one of the integral concept for the strategic
management. The analysis of external analysis aids the concept of strategic management on
various grounds. This analysis provides the entity with the detailed information and knowledge
of competitive environment and the competitors, the perceptions and consumers behavior, the
political and economic stability of the region in which the business is operated etc. These all are
the components which can be used by the entity while developing the strategic plans. And hence
the external analysis has been considered as very much relevant in strategic management. In
order to conduct external analysis the most widely used tool is Porter’s five forces. For this
company it is as follows:
 The threat of new entrants: In the fast food industry, this remains one of the serious
issues as new entrants also have the capacity to influence the business of the firms that
are well established in the industry (Keupp, Palmié and Gassmann, 2012). To counter this
in effective ways firms require to develop and adopt some strategies. The cited
organization is focusing on making the brand image by serving best quality foods in the
industry in New Zealand.

Strategic management
 The threat of substitute: There are several substitutes for Pizza Club like burger, French
fries, and other food products which are available at other fast food chains. In order to
increase the sale of the product delivered by the cited company, they need to add extra
flavors to them which will also assist in gaining competitive advantage.
 Bargaining power of suppliers: There is a very high competition in between suppliers.
They play very crucial role in making the business successful (Goetsch & Davis, 2014).
Every organization tries to set up powerful relations with their suppliers. It is necessary
for attaining the requirement of the firm. Change of suppliers may lead to the reduction in
the cost but assuring quality can be a question mark. Since there are many suppliers in for
Pizza Club hence it is not the matter of concern for the firm.
 Bargaining power of buyers: Due to the presence of a large amount of options with
consumers it has raised the power of buyers (Ackermann and Eden, 2011). Their decision
generally changes the effect the product prices. In order to maintain its base customers
and attract new ones, this company needs to enhance the quality of Pizza it serves.
 Industry Rivalry: There are many big companies that are operating in the business of
fast food industry. Some of the bigger brand names are like Dominos, Burger kind, Pizza
Hut, McDonald's etc. They all are multinational firms and have made their names in the
industry and have the power to influence the taste of the consumers (Gamble &
Thompson, 2014). Since the cited company is placed in only two places and for
enhancing business in other parts of New Zealand company needs to make more effective
business plans.
Internal analysis: Internal analysis is the approach or the methodology which can be executed
for developing an understanding over the strength and weakness of the business entity. The
analysis also provides a detailed knowledge about the threats present in the business environment
and also about the upcoming opportunities which are required to be grabbed by the b8usiness
organization for growth and development of the business. Knowing the strength and weakness
will enable the entity in development of the strategic management plans. These plans will bring
developments and boost the growth rate of the entity. Moreover, getting aware of the threats will
aid the Pizza Club to develop strategic plans for tackling the barriers and competitors. And thus

Strategic management
internal analysis has been considered as very much relevant for strategic management. For doing
internal analysis SWOT tool can be highly effective.
SWOT analysis
Strengths
 In the local market, it has created a well-deserved brand value.
 Quality of the food it serves (Eden & Ackermann, 2013).
 It has the wide range of food to offer so as to lure the taste of different consumers. Like
they separate sections for vegetarian and non-vegetarian customers.
Weakness
 Low brand value as compared to other multinational competitors.
 Lesser years of experience in the industry as competitors in the industry.
 A lesser amount of resources is available with Pizza Club.
Opportunities
 Expansion of the country (Hair and et. al., 2012).
 Can expand its business outside New-Zealand with the help of joint ventures.
Threats
 New Zealand has the aggressive competitive environment where a large number of
companies are serving not a very dense population (Dobbs, 2014).
 Continuous innovation is needed as people taste is changing very fastly. Due to limited
resources, this can be a threat to the firm.
By performing internal and external analysis it has been observed that there is cut throat
completion in the industry and it is important for the Pizza club to make sure that they apply
capable strategies for coming into the business.

Strategic management
Figure 1Role of strategic management
Strategic Management Tools
There are several tools that are used in Strategic Management. For Pizza Club concept to
strategic management for achieving competitive advantage in a global market is as follows:
Goals and Objectives: It is one of the first likely performed tasks in strategic management
concept. It involves setting up of goals and objectives in regards to the value of the firm (Hill and
Jones, 2013). Other than this it also involves the processes using which goals and objectives can
be achieved. From the views of Pizza Club, Their main aim is to achieve more market share in
the industry of fast food in New Zealand (Bull et al., 2016). Apart from this they also aim to
increase their customer base by creating the positive image in the minds of a target market.
Vision and Mission:
These two are the statements that act as baseline using which company can achieve its business
goals. Both of them have almost similar flavors but are the distinct expectation of the firm
(Bohari, Hin & Fuad, 2017). Here in regards to Pizza Club mission statement will define the
functionality that is required to be performed by the firm for achieving their target. On the other

Strategic management
hand, Vision statements describe the actions that will perform in near future. For example
promotional and advertisement strategies which will increase the demand for the product
(Biancamaria, Lettenmaier, & Pavelsky, 2016).
 Strategic Options: There are alternative choices of the firm which helps in encountering
various arisen issue due to the change of taste and preferences as well as altering
marketing environment (Wheelen and Hunger, 2011). This company has various strategic
options for performing its operations in various situations of the market. For achieving
competitive advantage, Pizza Club has taken use of strategies such as pricing,
differentiation for achieving its goals and objectives.
 Chosen Strategy: In order to achieve competitive advantage cited company needs to
adopt differentiation strategy. It is a formula for adding unique features to their food that
differs from that of its competitors. This strategy also suggests that the product must be
able to attract number of consumers towards its outlets (Peppard and Ward, 2016). This is
an important factor that plays the crucial role in selecting pricing for the products which
must be less than its competitors. It will enhance the demand for the product in the
market which is necessary for achieving targets of the firm.
 Implementation: Strategy of diversification has been adopted by the firm for enhancing
the performance of the firm and creating the image in the market. Pizza Club requires
implementing this strategy in relevance to a condition of marketing. This will also
improve the firm's chance of achieving goals that it has set. Differentiation and pricing
strategy has been selected for Pizza Club (Armstrong & Taylor, 2014). Their
implementation has to be done after evaluating and analyzing the external factors that
impact fast food industry.
Conclusion
From the above-based report, it can be concluded that Fast food industry is changing at very
faster rate due the changing habits of the people. This has attracted many customers in the
country like New Zealand. For the smaller companies such as Pizza Club, it is important to make
effective strategies so as to make sure that they achieve growth at the expected speed. It is also
important for the firm to have strategic management plan so as to ensure that made strategy is

Strategic management
implemented in a better way. It helps in achieving the goals and objectives of the firm in
smoother ways. In this regards role of leader and culture becomes very crucial. Culture helps in
dealing with the various issues that arise in the strategic management process. On the other hand,
strong leadership helps to handle all these in a better way.
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capabilities for land hydrology. Surveys in Geophysics, 37(2), 307-337.

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Bohari, A. M., Hin, C. W., & Fuad, N. (2017). The competitiveness of halal food industry in
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