Strategic Management Of Pizza Club To Compete In The Global Fast Food Industry

Role of Organizational Culture and Leadership in Strategic Management

Question:

Discuss about the Strategic Management of Pizza Club.

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.

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 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).

Strategies for Maintaining an Effective Workplace

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).

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 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).

Importance of Stakeholder Involvement in 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:

• 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 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).

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).

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.

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

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.

References

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