Strategic Planning Report: Just Eat's Market and Stakeholder Analysis

This report provides a comprehensive analysis of Just Eat's strategic planning, focusing on its market position, external factors, and stakeholder needs. The report begins with an introduction to strategic planning and its importance for business growth, followed by an examination of Just Eat's current market position using the BCG matrix. The report then delves into the external factors impacting the organization through PESTLE analysis and identifies the main stakeholders and their expectations. Furthermore, the analysis covers the changes within similar organizations, changes in the organization, and utilizes tools like benchmarking and portfolio analysis. The report also analyzes the competitive environment using Porter's Five Forces model to assess the industry's competitive landscape. The report concludes by summarizing the key findings and implications for Just Eat's future strategic planning.

STRATEGIC PLANNING
TABLE OF CONTENTS
Introduction.................................................................................................................................................3
Activity 1......................................................................................................................................................3
Activity 2......................................................................................................................................................9
Activity 3....................................................................................................................................................17
Activity 4....................................................................................................................................................20

Conclusion.................................................................................................................................................22
TABLE OF FIGURES

INTRODUCTION
The management of every company needs to conduct effective strategic planning for
achieving the growth of business. To create any organizational strategies, the company’s
management is required to define their goals and target. Most of the firms are concentrating on
future 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 as
a web based intermediary between independent takeaway food outlets and customers. The
mentioned company operates in more than 13 countries (Just Eat, 2016). In this report, the
strategic planning of “Just-Eat” has been discussed along with different aspects that can affect
the organizational behavior, i.e. the environment, business plans, modeling tools for strategic
planning and factors that impact the organizational strategies have also been examined. This is a
local take-away restaurant where customers can place their order online.
ACTIVITY 1
Review of current position of the company in the market
Just 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 customers
preferred it as the most convenient services, therefore, the mentioned company has the large
number customers who visit and use company's website. According the secondary data gathered
from company's website, there are 8,000,000 Hungry customers who visit the company's website
every month. However, around 50% of them approx., 4,000,000 customers place an order, by
which company generates revenues of +25% from online orders as compared to the phone (Just
Eat, 2016). Through BCG matrix, Just-Eat has to describe their long-term planning and the basic
idea behind the use of this strategy is to get bigger market share with faster growth rate.
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Figure 1(BCG matrix)
(Source: Crowley, 2004)
According to the BCG Matrix, the firm is currently at the cash cow position where it has a
high-market share but it is not able to get similarly great growth in the business. The
organization generates cash which fulfills the needs to maintain the business. Low investment
will not help them to get higher growth rate (Beekun, 2006).
1. Dogs - The Dog section within BCG generally possesses low market share with lower
growth rate, the result in not generating large volume of cash. Just-eat company does not
belong 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 market
area and growth by delivering quality and online food services within the UK market. With
the increasing market growth rate, company features capturing low market share as online
food services and take away services are not preferred by all the customers that are residing
in UK marketplace. Customer base of Just-Eat Company is low as compared to other firms
which are delivering online food company.
3. Stars - However, the star section in BCG depicts that company is in the position to dominant
the marketplace by making online delivery of the food services to the UK customers. In
addition to this, star section also features strong market share with higher market growth that
is beneficial for Just-eat company in increasing their image. Customer base within Stars
section is very high as they are in dominant position as Just-Eat Company possesses
relatively very high market share and growth that assist them in attracting large number of
customers,
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4. Cash Cows - The last section in the BCG depicts the situation of cash cows that possess low
market 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 have
high market share with lower growth rate within the market that is beneficial for the
company to invest low amount to sustain in the market. Customer base within cash cows is
high as Just-Eat Company has high market share as they are providing online food delivery
to the customers that is beneficial for the firm in the present scenario.
1.1. Importance of external factors that have an impact on organizations
The external factors are the most important attribute that can create impact on the development
of 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 and
different development policies in regards of tax, environmental issues, labor law or trade
restrictions. Political stability and predictable political environment are also a crucial
issue for companies/Just Eat when choosing on which markets to operate in. As the
company is doing its business virtually, hence there is not much interference of the
government in its business (Wallace, 2006).
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 Economic: this factor includes economic growth, interest rates and exchange rates. This
factor has a major influence on the company’s operation and decision-making Social: this factor includes cultural and health consciousness aspects. Currently, online
shopping is increasing, therefore, this aspect presents a major opportunity to the
company. Technological: Just-Eat has to introduce different technical machines and software to
maintain the standard of their products (Wallace, 2006). Legal: the laws, especially laws regarding online businesses, need to be followed by the
company.
 Environmental: JUST EAT needs to take into account that its operations and activities do
not have a negative impact on the environment.
1.2. Analysis of the main stakeholders and their needs and expectations
The main stakeholders of Just-Eat are its investor, supplier, society and customers. Supply chain
management function uses these factors in planning their strategies for the organization. These
all 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 that
help the company in financial factors such as a bank loan, financial institution and
partners. The investors are interested in knowing the financial position and credibility of
the corporation before investing their money in it (Matthews, 2005).
b) Suppliers: they are the distributors of raw materials which are used in manufacturing
company goods. Suppliers are connected to different retailers from where they obtain
resources for the company. Suppliers expect the company to adopt a fair credit and
purchase policy.
c) Society: in ideal cases the company conducts a research on the society’s needs and
designs its product line accordingly. The society needs to know whether or not the firm’s
products and services are having any negative impact on the societal functions such as
healthcare and reliable quality levels of sourced raw materials.
d) Customer: these are the main external stakeholders of the company. The customers
demand good quality products with proper information at competitive prices from the
organization (Matthews, 2005).
Their needs and expectations
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Organizations have to identify their stakeholders and their importance for the growth of their
business. The needs and expectations of stakeholders are very high in the company. Just-Eat has
to fulfill the expectations of their stakeholders by trying to take into account each and every need
of the different stakeholder groups. However, this is not possible as they contradict as suppliers
for instance are interested in their profits, but this can drive prices up which customers will find
unsatisfactory.
1.3 & 3.2 - Understanding development taking place within similar organizations and analysis of the
changes of the organization
There are many factors due to which the internal environment of the company is going through
several changes. These external factors, the economic, social, management, ecological and
geographical factors, affect the internal operations of the company as well. Analysis of different
changes in the organization reflects some particular areas such as social-political changes,
technological changes, development changes, customer analysis and competitor analysis (May,
2010). This factor is directly or indirectly based on the evolution of new customers in the society.
For getting advantages of these aspects, they have to get better efficiency and productivity.
Ecological aspects are used to get different resources that are used in manufacturing their
products, and this will define the valuation of their products. Technical changes are necessary for
the development of the company to be able to serve better meal to their consumers (Cassidy,
2005).
In today's scenario markets are expanding globally, and competitors are increasing in numbers
as compared to earlier times.
Just-Eat needs to develop its products with new and different taste. Therefore the company
used benchmarking and portfolio analysis. Benchmarking is a method to identify the different
resources to improve their performance. Portfolio is used to analyze groups according to their
environment. These are used to ensure growth and development of business in changing times
(Simerson, 2011). PESTLE analysis encompasses the external environment factors. PESTLE
stands for political, economical, social, technological, legal and environmental. These factors are
uncontrollable, these are beyond the control of management. The external factors are:
 Political Factor: These factors help in determining the extent to which governments or
regulatory bodies influence the industry. Political factor include import export rate, tariff
rates, tax rate etc. this will highly influences the strategic plan framed by the organization
(Kogan and Bobchek, 2007). for example, if UK government may enforce the new tax
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rate to the industry, or organization this will directly influences the revenue generating
structure of the company. Hence, organization might change the structure as per the new
enforce rate.
 Economical Factor: These factors also contribute to the external environment that
directly influences the organization's strategic plan. These factors include interest rates,
inflation rate, foreign exchange rate etc. Just-Eat needs to determine their strategic
policies according to the Economic factor.
 Social Factor: These factors examine the changing environment of the UK market.
Change occurs due to change in taste, preferences, demographics etc. For example, there
is a wide range of different foods available online (Nelson, 2008). Just Eat should cater
all different type of food items to attract customers from different demographic regions.
 Technological Factor: The continuous innovation in the technology also directly
influences and changes the organizational policies and procedures. Just Food company
with the new, improved technology the company is now capable to provide wider
selection of dishes, including various national specialties .The introduction of new supply
chain enabled quick and quality service with increased volumes.
 Legal Factor: Legal factors include various laws enforced by the governing body that
every organization have to follow while in operation, for example labor laws, health and
safety law, consumer law etc.
 Environmental factor: Environmental factors include all the elements that create waste
or have an impact on the environment. Just Eat operates digitally, most paperwork is
done electronically. The focus should be on upgrading equipment and machinery tomore
energy efficient versions as the primary carbon footprint of the company is energy
consumption. Logistics is a field demanding similar level of attention.. Another topic can
be packaging materials for food items, where offering bio-degradable packaging is
compliance in one country and a unique sales point in another, but is always
environmentally friendly.
Porter's Five Fforces Model
It is a powerful tool that assesses the overall industry in which the organization is operating their
business activities. However, the tool also plays a significant role in understanding the strength
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of the organization in the competitive scenario and the area within industry, in which
organization is preceding their activities. This industry analysis tool generally focuses on
measuring five forces that is supplier’s’ power, buyer’s’ power and competitive rivalry, threat of
substitution and threat of new entry (Simerson, 2011).
* Threat of new entrants – New entrance in the market is the major threat for the company
as it can reduce the market share and customers can switch to new competitors. The
threat of new entrants within the online food ordering industry is relatively high because
with the increasing e-commerce business in market customers are preferring to online
order the food online and take it away from the respective places. It is tough for Just-Eat
Company is also engaged in the new product differentiation that result into reduce the
threat of new entrance as the competitors will require huge capital to enter into the online
food delivery industry.
* Power of suppliers - The bargaining power of suppliers within industry is low within the
online food ordering industry sector as there are number of organizations that supplyies
food ingredients to the Just Eat. Therefore, bargaining power of suppliers is low within
the industry that assists the company to maintain good relation with suppliers to get
services at the best prices and quality.
* Power of buyers - The power of buyers within the industry is high as in the
contemporary scenario; buyers are more concerned towards quality of product and
services and they do compromise with such elements. In respect with the restaurant and
food offering the customers have become more environment friendly.
* Availability of substitute products - The availability of substitution is high in the online
market as there are indirect ways through which the customers get deals in rendering take
away food services i.e. websites of restaurant and online delivery service provided by the
restaurants.
* Competitive rivalries - Due to the expanding market of the food ordering industry and
the emerging technologies the competitive rivalry in the industry is supposed to be
relatively high. Despite, the firms in the market, do not offer differentiated products or
services.
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ACTIVITY 2
2.1. Appropriate tools to analyze the effects of current business plans
Just Eat Company operates in the food and beverage industry in the UK. It has been working at a
small level in the industry. SWOT analysis of the company has been carried out to identify its
current state of affairs.
i. Strength:
a. labor costs are low in comparison to other companies,
b. good distribution and sales networks (Cassidy, 2005),
c. barriers of market entry for new competitors.
ii. Weakness:
a. operational costs are too high,
b. future competition,
c. huge investment in research and development (Kaufman and et. al, 2003).
iii. Opportunities:
a. capture more customers because income level is increasing day by day,
b. demand will be increasing in the future,
c. try to establish new markets (Cassidy, 2005).
iv. Threats:
a. financial capacity,
b. external risks,
c. changes in taste and preferences of the customers.
Value chain analysis
Value chain analysis is an effective tool that basicallyto understand evaluate the essential
activities that support the overall firmcompany in gaining competitive edge among their rival
companies. This model generally focuses on explaining the overall activities of business in the
two broad categories such as primary activities and supporting activities. However, the model
also focuses on activities that support the Just Eat company for creating its value among
customers.
Primary activities: These are considered as key activities that generally focus on
manufacturing products and services as well as distribution for the same to the ultimate
customers.
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Secondary activities: These are the secondary activities that help the Just Eat company in
accomplishing their primary activities.
Supporting activities
Infrastructure  The company follows effective control
system
 Company culture and organizational
structure
Human resource management  Training of their employees.
 Managing adequate hHuman resources
that focuses onspecialised in online
delivery of the food products ordered
online.
Technology Development Usages Use of IT equipment tools for
delivering the food online order management.
 The website of Just Eat has a platform
where customers can provide regarding
customer service.
 Innovation
Procurement  Procuring adequate resources.
 Taking ingredients from the local
vendors and suppliers.
Primary activities
Inbound logistics  Acquiring different raw material like
cheese, dough, sauce for preparing the
snacks.
 Fruits and vegetables.
 Species, salt and pepper
Operations  Timely delivery of the food products.
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 Preparation of the food.
 Proper utensils for preparing food item.
Outbound logistics  Transportation of online food to
customers.
 Serving hot food items to customers.
Marketing and sales  Segmentation
 Branding
 Eeffective pricing
 Advertisement
 Discount offers to increase the sales
ratio.
Service and support  Taking online order
 Ensuring home delivery of the food
items.
2.3. The competitive strengths and weaknesses of an organization’s current business strategies
Resource analysis:
The company operates in a small market enterprises sector. The firm is using various resources
to increase its production and to try to provide the customers with the best service. Some
resources are as follows:
a. Human Resources: human resources are the basic need of the organization for running
business effectively. This firm has been recruiting skilled and qualified people because it
aims to serve best products and services in the market. Human resources contribute with
new creativity and ideas to the expansion of the business and managing responsibilities in
an efficient manner (Nelson, 2008).
b. Financial resources: financial resources have been used to develop business in new
markets and are also helpful in introducing new products and services in the market.
Company took loans from banks in order to finance business expansions. Many small
financial institutions and investors have been connected with the company for support in
terms of finance. Financial conditions of the firm are good as compared to their
competitors (Kerzner, 2002).
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