Strategic Analysis of Pizza Club: Management and Expansion Strategies

This report provides a comprehensive analysis of the strategic management practices employed by the Pizza Club in New Zealand's fast-food industry. It begins with an executive summary outlining the company's strategic goals and the methods used to achieve competitive advantage. The report delves into the influence of organizational culture and leadership on strategic management, emphasizing the importance of teamwork and coordination. It then explores the concept of strategic management, highlighting its role in resource allocation and stakeholder management. The report conducts both external (Porter's Five Forces) and internal (SWOT analysis) assessments to evaluate the company's position and potential. Finally, it examines various strategic management tools, including goal setting, vision and mission statements, and strategic options. The analysis aims to provide insights into Pizza Club's strategies for market expansion and competition within the global fast-food industry.

Running Head: Strategic Management
Pizza Club
Strategic Management

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Executive Summary
This assignment is based on the strategic concepts used by the Pizza Club, New Zealand for
ascertaining the opportunities in order to acquire the set goals and the objectives. Strategic plan
includes defining the processes, directing the way to the stakeholders for accomplishing the tasks
as well as it also includes the arrangement of the required resources for the organization and to
allocate them in adequate manner to gain the chances of gaining competitive advantage in the
fast food industry of New Zealand. To ascertain the usefulness of the strategic plan, relevant
models such as influence of the cultural, leadership, etc. models will be discussed under this
report. Along with this, relevance of strategic management for the Pizza Club and strategic
management tools will be discussed for evaluating the adequate concept of the strategic
management in this report.

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Table of Contents
Introduction......................................................................................................................................3
Influence of culture and leadership on strategic management concept...........................................4
Concept of Strategic Management...................................................................................................5
Relevance of Strategic Management............................................................................................5
External Analysis (Porter’s five forces)...................................................................................5
Internal Analysis (SWOT analysis)..........................................................................................6
Strategic Management Tools...........................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
In modern era, demand of fast food products and the number of fast food manufacturers have
increased. Pizza Club is one of fast food manufacturing and Distribution Company engaged in
manufacturing unique types of pizza in the New Zealand market. Company has attained effective
image in the domestic fast food industry while they are new for the international fast food
industry. In order to ascertain the opportunities for entering into the global market, organization
has adopted the strategy of strategic management. Under this report, strategic management of the
Pizza Club will be discussed in order to compete with the global competitors and to attain the
adequate competitive image in the fast food industry.

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Influence of culture and leadership on strategic management concept
Organizational culture and the leadership are the two crucial concepts which plays vital role in
enhancing the efficiency of the strategies developed under the strategic management. In the same
manner, strategic concept of the Pizza Club will be influenced with the culture followed within
the workplace. It has been observed that till the time, coordination and team work is not present
in an organization, most advanced strategies could not help the organization to attain its goals
(Hill, Jones & Schilling, 2014).
This is because Pizza Club has various departments and appropriate coordination is must
amongst those departments as well as in the team members in order to attain the goals and the
objectives for the organization. Culture is built up by the existing employees of the organization
by their actions and till the time, existing stakeholders will not follow the basic rules and
regulations built for developing the professional decorum at the workplace, well-planned strategy
or the group of well-planned strategies would not be able to bring any big change in the
performance of the organization (Peppard & Ward, 2016).
Management has the duty to develop plans and strategies for enhancing the efficiency of the
organization and those plans and strategies are imposed on the teams and the departments to
follow and accomplish the tasks. This reduces the motivation and the enthusiasm from the
stakeholders of the organization and this leads to build ineffective business culture. Thus, Pizza
Club needs to recognise its stakeholders’ basic needs, requirements for performing the
organizational tasks, etc. in order to motivate the employees towards the organization.
Attainment of the organizational goals and the objectives will lead to the improvisation of the

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individual performance. Leadership is another crucial sector through which organization could
enhance their work efficiency and they with this, Pizza Club will be able to set up its effective
position in the global competitive fast food industry (Eden & Ackermann, 2013).
Management of the Pizza Club needs to develop certain strategies for maintaining an effective
workplace as well as an effective culture in order to enhance their productivity. Strategies such
as managing human resources in an appropriate manner, allocation and arrangement of
organizational resources in an effective manner and the appointment of right candidate at the
right position are crucial things which enhance the efficiency of the organization. Apart from
this, organizational management could also focuses on taking the feedbacks and suggestion in
the decision making processes to make the stakeholders involvement. This develops a positive
image in the employees’ mind-set which also leads to develop effective team and the result
oriented culture (Massingham, 2014).

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Concept of Strategic Management
Numbers of theories are available which describes the concept of strategic management for an
organization. Strategic management approach is the technique through which relevant
stakeholder’s needs and the requirements could be fulfilled in a better manner. Along with this,
managing the resources and the allocation of the resources amongst the stakeholders is also
performed under the technique of strategic management approach.
Pizza Club has also implemented the sustainability and CSR approach in order to attract the
investors for making the investment for the purpose of expansion of the business in the
international market. Sustainability approach helps the company to survive in the dynamic
business environment for a long run and along with this CSR approach defines the motive of the
organization towards the society and its development.
Employees, Customers, directors and all those parties who are directly or indirectly linked with
the functionalities of the organization are known as the stakeholders. They are crucial element of
the business and they all play their separate role in the success and the growth of the
organization. Strategies should be created with their consent as well as they should be involved
in the strategic management process in order to make the process strong, advanced and hassle
free.
Strategic management is the process of setting up the plans and procedures for accomplishing the
set goals and the objectives for the organization. Strategic management is the blueprint of the
plan which will be imposed for performing the functionalities of the organization in order to
attain the desired targets for the organization. Decisions such as setting up the targets, making

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resources available for accomplishment of goals, planning and implementing strategies in order
to attain competitive advantage, etc. processes are performed under the strategic management
concept (Armstrong & Taylor, 2014).
Relevance of Strategic Management
In the business environment, various crucial and immediate actions are required to take for
attaining the goals and the objectives of the organization. Management of the organization
sometimes fails to take appropriate action. To reduce the chances of failure of the decision taken
by the stakeholdersmanagement, strategic management concept is designed. To enhance the
efficiency of the organization, strategic management concept plays vital role and following are
the elements of the strategic management which define the relevance of the strategic
management concept in relation with the Pizza Club New Zealand:
External Analysis (Porter’s five forces)
 Threat of New entrants: This is the major threat for every organization in every
industry. To face this in an effective manner, organization needs to build and adopt
certain strategies which could easily face the entry of the new entrants. In terms of Pizza
Club, organization is focusing on setting up their effective goodwill in the global fast
food industry but with the increase in the demand of the fast food items in New Zealand,
threat of the new entrants is increasing rapidly.
 Threat of Substitutes: Substitutes for Pizza Club are the burgers, French fries, food
products available at bakery stores, and the cooked up food at home. For addressing this
issue, Pizza Club needs to include unique and effective ingredients for enhancing the

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demand of their pizzas as well as to acquire the competitive advantage (Wheelen &
Hunger, 2017).
 Bargaining power of suppliers: Suppliers play crucial role in terms of setting up the
business as well as in the failure of the business. Every organization believes in
maintaining the effective relationship with the suppliers for getting the qualitative
materials at constant rates. While changing the suppliers may lead to the reduction in the
manufacturing cost but quality and the assurance will not be available. In fast food
industry, numbers of suppliers are present for each and every material required for
making pizza (Morden, 2016).
 Bargaining power of buyers: Buyers have the great choice in the fast food industry in
order to select the product to consume such as types of burgers, pizza, wraps, rolls, fries,
etc. Their decisions majorly changes with the effect of prices of the products. Thus, Pizza
Club needs to maintain the satisfactory quality of their products at the attractive rates in
order to retain the consumers as well as it will also attract the new consumers
(Rothaermel, 2015).
 Industry Rivalry: Huge companies are involved in the fast food industry such as
McDonald’s, Burger King, Dominos, etc. They all are included in the multinational
companies and they have made their effective positions in the fast food market. While
Pizza Club is present in two places in New Zealand, hence; to enhance their growth
opportunities and the expansion of their business at the international level, adequate
competitive strategies needs to be developed (Dobbs, 2014).

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Internal Analysis (SWOT analysis)
Strengths
 Brand value created by the Pizza Club
is the primary strength for the
organization which is the true result for
the qualitative products delivered by
them.
 Diversified menu which includes
separate sections for vegetarian and
non-vegetarian food items (Bohari, Hin
& Fuad, 2017).
Weaknesses
 Low brand value in terms of
international companies of the fast food
industry.
 They have developed their image in the
local market while brand value is must
to compete with the companies of
international level (Bull, et. al., 2016).
Opportunities
 Expansion of the business at the
international level will bring various
opportunities such as growth and
success for the Pizza Club.
 Competing with the big brands of this
industry will provide valuable
experience and with the effect of this,
appropriate and effective strategies
could also be developed.
Threats
 New entrants in the fast food industry
and the aggressive competition from
the existing companies will be the
biggest threat for the Pizza Club.
 Change in the customer’s tastes is
another major threat for the
organization (Biancamaria, Lettenmaier
& Pavelsky, 2016).

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With the help of external and internal analysis of the Pizza Club, it has been observed that the
organization has good chance to expand their market share with setting up their business in the
international fast food industry. Pizza Club is capable enough to beat its competitors and their
strategies in order to attain the competitive advantage.

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Strategic Management Tools
Following are crucial characteristics of strategic management concept for Pizza Club for
attaining the competitive advantage in the global fast food industry:
 Goals and objectives: This is the foremost process of strategic management concept and
it involves setting up of goals and the objectives with relevance to the values of the
organization. Apart from this, it also includes the processes through which those goals
and the objectives will be acquired. From the perceptive of Pizza Club, their primary
goals and objectives are attaining the market share in the global fast food industry,
enhancing their customer base, setting up positive image in the target market, etc.
(Goetsch & Davis, 2014).
 Vision and Mission: This is the summarising statement for describing the goals and the
objectives of the organization. Vision statement and the mission statement differ from
each other and both fulfil different expectations of the company. In relevance with the
scenario of Pizza Club, mission statement will describe the functionalities which need to
be performed on immediate basis for accomplishing the targets. While vision statement
describe the activities which need to be executed in the near future in terms of acquiring
the future goals such as implementing promotional and the advertisement strategies in
order to enhance the demand of the product in near future (Sabirov, et. al., 2015).
 Strategic Options: These are the alternative options for the organization which helps the
organization to face the situation arising due to change in the customer’s tastes and
preferences, changing marketing environment, etc. Pizza Club has developed numerous
strategic options in order perform the functionalities of the organization in any condition

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of the market. For attaining the competitive advantage, Pizza Club has adopted the
strategies such as pricing strategies and differentiation strategies for accomplishment of
the organizational goals and the objectives (Gamble & Thompson, 2014).
 Chosen Strategy: Reviewing the market conditions and other external factors for Pizza
Club in New Zealand, it has been observed that they need to adopt the differentiation
strategy in order to attain the competitive advantage. This describes the formula to add
unique features in their products which makes the organizational product different from
its competitors. This strategy also describes that products should be capable enough to
beat its competitors’ products as this will help the organization to maintain their
qualitative and the effective brand value in the global fast food industry. Apart from the
differentiation strategy, Pizza Club could also adopt the pricing strategy for attaining the
competitive advantage in the market. This is the crucial factor which plays vital role in
the selection of the product by the consumers, hence; adaptation of the pricing strategy
will help the organization to set their product’s prices low from its competitors. This will
leads to the enhancement in the demand of the products of Pizza Club and ultimately it
will direct the company towards the attainment of the desired goals and the objectives
(Gumerov, et. al., 2015).
 Implementation: Strategies adopted for improving the performance of the organization
and to set up the unique and effective image in the fast food industry, Pizza Club needs to
implement the selected strategy in relevance with the marketing conditions. This will
enhance the chances for organization to attain their desired goals with the implementation
of the particular strategy. Differentiation and pricing strategies have been chosen for
improving the performance of the organization in the global fast food industry. Their

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implementation should be done after reviewing the external factors impact over the fast
food industry (Norsworthy, 2016).

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Conclusion
From the aforesaid information, it can be concluded that organization has developed their
effective position in the New Zealand fast food industry in very short period. Thus, organization
has the capability to attract the consumers and the major reasons behind this success are the
quality of the product delivered by the organization and the strategies used by them to promote
their products and to spread the information in relevance with the organization in the target
market. It has increases the chances for the expansion of the business in the global market. To
ensure this, Pizza Club’s organizational culture and the impact of leadership was discussed for
developing effective strategies for setting up the goodwill in the international market and to gain
the competitive advantage. Apart from this, concept of strategic management, relevance of the
strategic management were covered under this report for making a strong plan for the Pizza Club
for expanding their business in the global fast food industry market.

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