...Company Summary 2 1.2 Company Ownership 3 2 Five Forces Model and Analysis 4 2.1 Barriers To Entry 5 2.2 Supplier Power 8 2.3 Buyer Power 10 2.4 Threat of Substitutes 11 2.4.1 The Threat of Substitutes are High 11 2.5 Rivalry among Existing Firms 12 3 Conclusion 17 INTRODUCTION House of Kebab is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. House of Kebab will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. House of Kebab is the answer to an increasing demand for kebab and shawarma fast food. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Our main priority is to establish one outlet in Kuala Lumpur, preferably in one of prominent housing estate. Later, our effort will be a further development of more retail outlets in the surrounding area. House of Kebab will entice youngsters to bring their friends and family with our innovative environment and our main focus will be serving high-quality food at a great value. COMPANY SUMMARY House of kebab sells specially made shawarma sandwich-like wrap usually composed of shaved lamb, goat, chicken, turkey, beef, or a mixture of meats and kebab which consist of thin slices cut from a cylindrical block of minced and seasoned meat or chicken, eaten in a roll of unleavened...
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...EXECUTIVE SUMMARY- The following assignment talks about the strategic management in context to McDonalds. Strategic management is one of the critical issues to be studied by a company in order to understand the causes and solution of the problems and hurdles in the way of the success of the business and its market growth. As we all know that it's a world of globalization and competition and therefore every company has to make certain plans and strategies in order to tackle the problems they face due to the competition in the local and global markets. Every company has to make effective strategies and plans in order to tackle the internal and the external problems faced by the company. Internal problems can be linked with any internal department or process such as HR or Pay role or machinery etc and the external challenges can be competition, changing technologies etc. Globalization on one hand gives benefits to the company to explore new markets and increase its customers in order to make more profits but it also poses different problems and challenges which the company has to tackle to continue its success in the new markets. Company has to design proper strategic plan to point out and tackle the problems curbing the success of the business. Either it's a local or a global market company always needs an efficient strategy to tackle the issues curbing its success in the market. This assignment will discuss the various strategic issues of concern for the McDonalds and plans it...
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...Problem * Competition on the same industry There are two types of competitions that Hup Seng Industries Berhad faced. They are direct competition and indirect competition. Direct competition exists where organizations produce similar products that appeal to the same group of consumers while indirect competitions exists when businesses that offer slightly different products and services, but target the same group of customers with the goal of satisfying the same need. These are sometimes also known as substitutes. Nowadays there are many company that offer products that similar to the products offered by Hup Seng Industries Berhad. For instance, this company has a direct competition with the Hwa Tai Industries Berhad, Julie’s Biscuit and Munchy’s. These three brands are very well-known and focus on the same group of customers as Hup Seng Industries Berhad. As we know, people need foods every day and they have to choose among the products offered on market. Customers will likely consider a variety of price points, locations, service levels, and product features when deciding to buy foods. However, not all customers will choose the same combination of those options, and that is essentially why competition exists. This competition helps to drive down the profit that such firms can make. There are many indirect competitors for Hup Seng Industries Berhad. Almost all businesses face some sort of indirect competition. This is because there are a lot of brands that offered foods in the market...
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...Whole Foods an Organic Food Mogul 1. Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market. There has been a major trend change in the retailing of organic foods. Those trends not only affect Whole Foods Market but the organic food industry as well. In an article written by the Good Food World Staff, they listed 14 trends that the organic industry and Whole Foods Market should lookout for. Listed are just a few that would have a serious impact on Whole Foods Market. • The Economy: with the economy slowing and the job market showing very little promise consumers are still wanting a healthier lifestyle. Low-income families have also joined in on a healthier lifestyle and learn to budget by saving money and using coupons. Although organics are here to stay consumers are wondering were the next dollar will come from. The natural /organic companies that can stay afloat will countinue to do well. • Social Networking: in the world of marketing word of mouth is one method of getting information out quickly. Internet tools such as Facebook and Twitter can help build social networks for the organic markets growth. They give insight on what other companies are selling and at what price. Social networking can also help with brading of certain products. • Organic and Climate Change: all to often society blames global warming for every thing. But there are many other factors that come into play like greenhouse gas emission. However...
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...When performing a five forces model for the snack food industry, I first looked at competition from rival sellers as I felt that this was the strongest threat for manufacturers. Rival sellers can easily try to produce a new line of products, mimic a competitor’s product, and it’s difficult to differentiate a snack food from the competition as there is so much competition. The market isn’t quickly growing, so rivals are competing for the same customer base and there is very little if any cost to switch from one snack food to the next. Many snack foods are very similar and there are hundreds if not thousands of competitors all fighting for the consumer’s purchase. A high competitive pressure exists from the sellers of substitute products as manufacturers can easily mimic existing snack foods. On a recent trip to Hyvee there were a number of snack foods on my list to pick up including potato chips, fruit snacks, and pretzels. For each of these items I had a variety of choices including a Hyvee brand for each which was the lowest price competitor, each product had a healthier option, and some even had a substitute product such as the flat pretzel snack rather than traditional. As consumers become more health conscious increased competition from the health foods industry will start to cross-over into the snack food industry. Competition from new entrants is moderate as it would be quite costly for a new start-up firm to purchase necessary equipment, create the distribution...
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...The Industry I decided to do my paper on is the fast food Industry. The fast food industry is a billion dollar industry. The fast food industry spends billions of dollars a month on advertising to capture young people as well as children as. Despite the health warnings that eating fast food on a daily basics will do to one’s body, the industry still is thriving due to a large number of working families, we live in American, which has the largest fast food industry in the world. McDonald’s is one of the largest fast food restaurants in the fast food industry serving around 68 million people daily, in over 118 countries. McDonald’s has a loyal based of customers who have been patronizing the establishment for many years, operated by a franchise agent, an affiliate or the corporation. McDonald’s business strategies has been said to be the best in the fast food industry, maintaining cost leadership while producing dependable food with great service. Today we see McDonald’s in a mature industry that uses product proliferation to meet many needs in the fast food industry while deterring new entrants (Hill and Jones, 205). McDonald’s prides their strategy by setting the standards with their products and within the industry as well. I feel that the strategy McDonald’s incorporates within the company is the best for them, setting the standard to be the best in the industry promotes the necessary competitive edge needed to ensure the company continues to delivery its winning...
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...An Investigation of Competition within the UK Food Retail Industry Abstract This dissertation set out to explore the nature of competition within the UK Food Retail Industry as well as to evaluate the competitive strategies undertaken by firms in the market. This task has been undertaken through a critical analysis of a range of literature focussed on establishing the current state of play in the UK supermarket industry, examining general theory on competition and competitive strategy, as well as a review of literature that specifically addresses competition between supermarkets in the UK. Looking first at the nature of competition in the UK food retail industry, it was clear from the literature review that while the industry has many characteristics of an oligopoly as it is dominated by a small number of major firms, it is undoubtedly highly competitive. The evaluation of the competitive strategies undertaken by firms in the industry showed that between the leading firms in the market that Tesco had the best balance between price and customer perceived value but there was clear evidence to suggest that the other leading firms were positioning themselves around Tesco in order to reduce its apparent competitive advantages. While the analysis showed similar competitive strategies for the big four, it revealed different strategies being adopted by other firms in the industry who look to operate in niche markets within the food retail industry, such as Lidl and Aldi, who compete...
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...pressure cooker: Industry revenue rises but competition threatens to constrain growth IBISWorld Industry Report H5731a April 2011 Restaurants in Australia Suzannah Rowley 2 2 2 2 2 About this Industry Industry Definition Main Activities Similar Industries Additional Resources 16 Demand Determinants 17 Major Markets 17 International Trade 18 Business Locations 26 Revenue Volatility 27 Regulation & Policy 27 Industry Assistance 29 Key Statistics 20 Competitive Landscape 29 Industry Data 29 Annual Change 29 Key Ratios 20 Market Share Concentration 20 Key Success Factors 21 Cost Structure Benchmarks 22 Basis of Competition 23 Barriers to Entry 23 Industry Globalisation 3 4 4 4 6 9 Industry at a Glance Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook 30 Jargon & Glossary 12 Industry Life Cycle 24 Major Companies 25 Operating Conditions 25 Capital Intensity 26 Technology & Systems 14 Products & Markets 14 Supply Chain 14 Products & Services www.ibisworld.com.au | (03) 9655 3881 | info@ibisworld.com www.IbISwORLd.COM.Au Restaurants in Australia April 2011 2 About this Industry Industry definition This industry includes restaurants that serve food and beverages on the premises. The report covers the following business types: licensed restaurants, BYO restaurants, licensed and BYO restaurants, and unlicensed restaurants. This industry excludes takeaway food services, restaurant...
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...f Unit 5 Whole Foods Case Study Analysis Kaplan University School of Business and Management MT460 Management Policy and Strategy Author: Devin Thomas Professor: Dr. Thigpen Date: January 17, 2012 Introduction Whole Foods Markets is a food market that prides itself on providing its customers with the highest quality of natural and organic foods. Through the acquisition of a number of other companies, whole Foods have grown to become the largest natural food supermarket in the United States. Staying true to their mission statement and original ideals is the formula the company credits their success to. Synopsis of the Situation Founder John Mackey may not have dreamed that the one Whole Foods market store he helped to create back in 1980 would grow to become the leading supermarket in the natural foods industry. Whole Foods has come a long way since the first store opened in Austin, Texas over 30 years ago: subsequently, so has the organic food industry in its entirety. Expansion of the natural foods industry has brought with it increased demand for organic food and new competition. With such demand on the rise, supply has now become a concern for Whole Foods. Key Issues Only 3 percent of US farmers grow organic products. US shoppers spent 45 billion dollars on natural and organic products in 2004. (Harasta, Hoffman, 2007). The growing organic foods industry has created major competitors like Trader Joes that offers high quality products at low...
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...the economic situation of the drug industry. Include in your answer the impact on prices, new development, etc. of drugs. Include appropriate graphs showing the difference between monopoly pricing and competitive pricing. The government can give a pharmaceutical company the exclusive right to produce a good by granting patents on drugs. Patents refer to the exclusive monopoly right over a particular drug that extends for a period of 20 years, creating barriers to entry where other firms cannot enter the market. The existence of high barriers to entry prevents firms from entering the market even in the long-run. Therefore, it is possible for the monopolist to avoid competition and continue making positive economic profits in the long-run. If congress remove patent protection for life saving drugs in order to reduce the cost of the Medicare and Medicaid system, there will be many implications in the short-run and long-run that will effect both the pharmaceutical companies and consumers both positive and negatively. Monopolies can maintain super-normal profits in the long run. As with all firms, profits are maximized when MC = MR. The level of profit depends upon the degree of competition in the market, which for a pure monopoly is zero. Profit maximization, MC = MR Monopolies can maintain super-normal profits in the long run. As with all firms, profits are maximized when MC = MR. The level of profit depends upon the degree of competition in the market, which for a pure...
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...Factors | Opportunities | Demographic | * (O) Fast food saves time and efforts of people so it’s a good meal for people. (Bose, 2012) * It is an opportunity for fast food industries as it is a ready to eat food and people who go on work prefer to eat it as it saves their time. * (T) Large percentage of baby boomers is becoming threat for fast food industries. . (generation in the workplace in the united states and canada, 2012) * 31.9% of the whole Canadian population is covered by Baby Boomers and they don’t prefer to consume fast food which is going to be a threat | Socio-Culture | * (T) People are stepping backward from fast food which is going to be a big threat in future (Lojitmairembam, 2013) * Now, people are becoming more health conscious. They are stepping back from fast food as it does not contain any vitamins, minerals and fibres and this going to be a threat for fast food industries industries in future. | Economic | * (T)Increasing minimum wage rate is going to be a threat for the fast food industries. (Drum, 2013) * As the minimum wage rate increases for the fast food workers than the fast food industries have to pay more to the worker which decrease the profit margin of the industries. * (T)Inflation and exchange rates are the other threats for fast food Industries. (Rodrigo, 2012) * Inflation rates and exchange rates both effects the supply and demand relationship of raw material which directly affect the industry’s production...
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...The research analyzes the case "Cat Fight in the Pet Food Industry" Parts A and B (Harvard Business School, 1991, pp. 113; Harvard Business School, 1992, p. 1). The results of this analysis are presented in (1) an industry analysis, (2) an assessment of company positioning, and (3) a consideration of the implications of the acquisition of the AndersonClayton firm. Porter (1980, pp. 717) considers the conditions of entry in to an industry as one of the keys to both the structure of the industry and the character of competition within the industry. Economy of scale is one of the major barriers to industry entry identified by Porter (1980, p. 7). Economy of scale was a major barrier to new entrants to the pet food industry at the time of this casethe mid1980s. Thus, competition within the industry could be expected to be directed toward product differentiation and participation in multiple lines within the industry, as opposed to the countering of potential threats from new competitors. Porter (1980, p. 17) pointed out that rivalry among existing competitors can become intense, as each competitor attempts to improve industry position through the use of price competition, advertising, product introductions, and increased customer service. In the pet food industry in the mid1980s, price competition, advertising, and product introductions were widely used by most of the industry competitors in attempts to improve industry position. The conduct of strategic planning by profitoriented...
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... 2: Whole Foods Presenta8on, NBA 5330 Management Cases 2/18/2013 Kevin Bell, Jen Cohen, MaE De Paolo, Sarah Hu, Aashish Sharma Whole Foods should acquire Wild Oats and increase its product offerings to enable lifestyle shopping and maintain its leadership posi:on Whole foods currently is the leader in the natural-‐ food retail chain and the fastest growing company in the grocery market • Natural food segment growing at 7% • Whole foods sales -‐ 16.3% of total sales in the natural product stores • Increasing compe88on from Gourmet & tradi8onal retailers and Discount stores Challenge: How to maintain their status as a market leader in the Natural food Category while coping with increasing compe::on Acquire compe88on such as Wild Oats Increase private label offerings Increase conven8onal brand offerings Summary strategy Consumer segments Competition opportunities Conclusion Whole Foods strategy is ...
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...drive industry revenue IBISWorld Industry Report H4511b Cafes and Coffee Shops in Australia November 2014 Stephen Gargano 2 About this Industry 13 Demand Determinants 26 Revenue Volatility 2 Industry Definition 14 Major Markets 27 Regulation & Policy 2 Main Activities 15 International Trade 28 Industry Assistance 2 Similar Industries 16 Business Locations 2 Additional Resources 3 Industry at a Glance 4 Industry Performance 18 Cost Structure Benchmarks 4 Executive Summary 20 Basis of Competition 4 Key External Drivers 21 Barriers to Entry 5 Current Performance 22 Industry Globalisation 7 Industry Outlook 29 Key Statistics 18 Competitive Landscape 29 Industry Data 18 Market Share Concentration 29 Annual Change 18 Key Success Factors 29 Key Ratios 10 Industry Life Cycle 23 Major Companies 12 Products & Markets 25 Operating Conditions 12 Supply Chain 25 Capital Intensity 12 Products & Services 30 Jargon & Glossary 26 Technology & Systems www.ibisworld.com.au | (03) 9655 3881 | info@ibisworld.com WWW.IBISWORLD.COM.AU Cafes and Coffee Shops in Australia November 2014 About this Industry Industry Definition The industry consists of cafes and coffee shops serving food and beverages to customers on premises. The industry excludes takeaway food services, Main Activities The primary activities of this industry are ...
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...Whole Foods Market By Larry Davis Discuss the trends in the retailing of organic foods and the impact of these trends on Whole Foods Market. A growing appetite for Organic foods have been observed as a recent trend in the markets of United States in specific and the rest of the global market in general. This has been observed due to the change in the thinking process of the people in terms of remaining healthy and staying fit. The retailing of organic foods as traditional suppliers of organic foods faced competition from companies new to this sector (Plunkett, 2007). The organic foods are now not only sold in the natural product stores such as Whole Foods and food cooperatives but also in supermarkets such as big box stores like Wal-Mart, Costco and the like. These foods do not contain artificial flavors and harmful elements. The rise in the health consciousness has resulted in rise in the demand of such foods. These being healthier as compared to the in comparison to the other fast food this is the reason for the increasing demand and boom in this sector of the industry. However in the earlier times, the increase in demand was not aided by equal supply by the suppliers and thus it became necessary to adopt a proper strategy for supplying and fulfilling demand of the market. The organic handlers responsible for purchasing organic foods from the farmers can be held responsible for boosting and supplying to the retailers and made it available at supermarkets, formal retails...
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