Stargey

1.0 Introduction: In this report we will evaluate possible alternative strategies for Kungfu. And then identify and evaluate resource requirements for successful implementation of our selected strategy for Kungfu. Next, we will propose target and timescales to monitor the implementation of selected strategy for Kungfu. Finally we will compare the roles and responsibilities between Kungfu and Air China Limited. 2.0 TOWS Matrix – Generation of Alternative Strategies | |Strengths (S) |Weaknesses (W) | | |Streamlined logistics centers in South, East,|Senior management team lack | | |and North China – purchasing, processing, and|international exposure and experience. | | |distribution |Brand’s perception problem amongst the | | |Strongly entrenched Kungfu brand amongst the |sophisticated Chinese consumers. | | |consumers. |staff turnover amongst the service | | |Well-diversified product-mix with breakfast |associates. | | |special , lunch specials etc. |Lack of awareness about Kungfu Brand | | |competitive pricing for their fast food meals| | | | | | | | | | |Opportunities (O) |SO Strategies |WO Strategies | |1. Increasing awareness amongst the |By the name of famous brand, develop the new |Develop health and nutrition products | |Chinese consumers about healthy and |market in the second-tier and third-tier |to meet the consumers’ demands.(W2,O4) | |nutritious food |cities and enlarge the market share of |Offer the Kungfu brand for franchisees | |2. Rising per capita income in the |Kungfu.(S2,O2) |in the second-tier and third-tier | |second-tier and third-tier cities |Promote convenient and cheap products in the |cities and accumulate the senior | |3. There is an increasing trend of |first-tier cities in order to improve the |management team’s experience.(W1,O2) | |dual-career couple in the family in the |Kungfu’s competitiveness.(S4,O3) | | |first-tier cities | | | | | | | |4. Budget-constraint white-collar | | | |,workers who desire for value-for-money | | | |lunch | | | |Threats (T) |ST Strategies |WT Strategies | | | | | |1. Intensified competition in the fast |Develop the differentiation and health |cooperate with other companies in order| |food industry with both foreign brand |products and use the USP skills and their |to develop the brand and increase the | |and local brand engaging in aggressive |famous brand to keep their market |senior management team’s | |discounting and promotion. |share.(S3,T1) |experience.(W1,T1) | |2. The negative perception amongst |Reduce the unnecessary costs and develop more|Reduce unnecessary office expenses and | |Chinese towards job in the service |logistics centers to reduce costs and employ |excess staffs t (W2,T4) | |industry/sector. |cheaper labor.(S1,T4) | | |3. The minimum wages requirement imposed| | | |by the provincial government are adding | | | |to the cost pressure. | | | |4. Increasing cost pressure in fast and | | | |food industry due to rising labor cost | | | |and operating expenses. | | | | | | | 3.0 Evaluation of Alternative Strategies | |Alternative Strategies |Suitability |Feasibility |Acceptability | |1. |Develop the health products and use |The strategy will leverage on|1. funder |The key players for this | | |the USP skills to build their famous |Kungfu’s strengths |2. Research& development |strategy will be R&D. The| | |brand to keep their market |well-diversified product-mix |team. |development the new | | |share.(S3,T1) |and neutralize the threat of |3. Image spokesman |products can bring large | | | |competition in China fast | |profits for company. | | | |food industry. | | | |2. |Reduce the unnecessary costs and |The strategy will leverage on|1. HR persons who have |The key players for this | | |develop more logistics centers to |Kungfu’s strengths of |audit skills |strategy will be the | | |reduce costs and employ cheaper |Streamlined logistics centers|2. have more information|accounting department. | | |labor.(S1,T4) |in South, East and North |about the logistics |the calculation that they| | | |China |centers. |does for the firm | | | |– purchasing, processing, and| |province out a large sum | | | |distribution and neutralize | |of expenses. | | | |the threat of increasing cost| | | | | |in fast and food industry. | | | |3. |By the name of the famous brand, |The strategy will leverage on|1.huge information about |The key players for this | | |develop new market in the |Kungfu’s strengths strong |the new market.. |strategy will be | | |second-tier and third-tier cities and|entrenched Kungfu brand to |2. funding. |stakeholders. Because | | |enlarge the market share of Kungfu. |take advantage of rising per |3.HR, people who have |this strategy will | | |(S2,O2) |capita income. |research skills. |enlarge their market and | | | | | |increasing their market | | | | | |share. So they will | | | | | |accept this strategy. | |4. |Promote the convenient and cheap |The strategy will leverage on|Sales person team. |The key players for this | | |products in the first-tier cities to |Kungfu’s strengths |funding. |strategy will be Sales | | |make Kungfu more competitive (S4,O) |competitive pricing for their|Advertising |persons. The promotion | | | |products and to take | |improve the sales. | | | |advantage of the increasing | | | | | |trend of dual-career couple | | | | | |in the family. | | | |5. | cooperatie with other company to |This strategy will change |information about your |The key players for this | | |develop their brand and increase the |Kungfu’s t lack international|competitors. |strategy will be the | | |senior management team’s |exposure and experience |HR people who have great |owners. | | |experience.(W1,T1) |their senior management team |negotiations skills. |In fact, they don’t want | | | |and also neutralize their | |to use this strategy. It | | | |threat ----- intensified | |will reduce their | | | |competition of the China fast| |profits. | | | |food industry. | | | |6. |Reduce the unnecessary office |The strategy will erase the |1.HR t people who have |The key players for this | | |expenses and the excess staffs to |weakness of Brand perception |audit and management |strategy will be the HR | | |keep their market share.(W2,T4) |problem in China and |skills. |department. They will | | | |neutralize threats -- | |also have to sacrifice | | | |Increasing cost pressure in | |part of public's | | | |fast and food industry. | |interests in order to | | | | | |keep the company’s market| | | | | |share. | |7. |Develop more health and nutrition |The strategy will change the |1. funding |The key players for this | | |products to meet the consumers’ |weakness of Brand perception |2.HR for R&D persons. |strategy will be the R&D | | |demands.(W2,O4) |problem in China and take |3. the information about |department. Make sure | | | |advantage of the demands of |consumers’ demands. |that the product meet | | | |Budget-constraint | |the demands of consumers.| | | |white-collar workers. | | | |8. |Offer the Kungfu brand for |The strategy will improve the|1.HR people for manager |The key players for this | | |franchisees in the second-tier and |weakness of lack |and stylist |strategy will be | | |third-tier cities and accumulate the |international exposure and |2. Advertising |executives of Kungfu. | | |senior management team’s |experience the Kungfu’s |3. funds. |This strategy can help | | |experience.(W1,O2) |senior management team. |4. Follow-up service. |Kungfu enlarge their | | | | | |market share and | | | | | |Accumulate experience for| | | | | |senior management team. | Chosen Strategy –use famous brand, develop the new market in the second-tier and third-tier cities and enlarge the market share of Kungfu. (S2,O2) 4.0 Identification and Evaluation of Resources – Chosen Strategy (Kungfu) If Kungfu catering plan to develop new market in the second-tier and third-tier cities they should have the basic capital and have a time limted to develop new market. Not only capital and time is necessary but also the manpower and technology is also essentials . Lastly , information is also critical to the plan. By researching, we have learned that the Kungfu company have the enough capital. In 2009, Kungfu company performance year-on-year growth of 50%. So this shows they have enough ability to develop the new market and for the time, they also have this condition. e.g. the company decides to open twenty shops in Nanjing for one year. Until 2010 the Kungfu company has had six years of experience. Their technology is maturity. So they have enough technology skills to develop a new strategy. However, Kungfu catering is short of manpower and information. To change their weakness into their strength , for manpower, they can employ local people and use their professional skills training for them to meet their requirement. Whether the Kungfu company can develop their new market successfully depends on information .Necessary information play an very important roles in this strategy. They should hire some professional researcher to make detailed research in their target cities. Such as, researches on the local people’s tastes and the best location for their new shop also the price of land is, and so on. 5.0 Gantt Chart – Chosen Strategy (Kungfu) Chosen Strategy: Using the famous brand, develop the new market in the second-tier and third-tier cities and enlarge the market share of Kungfu. (S2,O2) Activities 1. Prophase detailed investigation of the market 2. Formulate specific strategic plan 3. Choose specific store location 4. Carry out shop decoration 5. Hiring of cheap labor 6. Doing professional skill training 7. From headquarters transferred manager to establish rules and regulations and pre-opening training 8. Brand promotion and business former propaganda |Description of |Time (Months) | |Activity | | | |1 |2 | |Kungfu |Using their famous brand, develop the new |Finance department: they have responsibilities for the | | |market in the second-tier and third-tier |financial support. | | |cities and enlarge the market share of |Market research department: they need to make market | | |Kungfu. |survey fully. | | | |Human resource department: they must employ cheap labor | | | |and also give professional training for the new | | | |employees. | |Air.China |The joint venture will be based in Shanghai |Human resource department: they will take responsibility| | |for the reson that the city is the most |for employing the new employees and processing with the | | |important cargo market amongst Chinese |old worker problem. | | |cities. |Finance department: they should process the debt | | | |problems and manage the new company’s finance. | | | |Market promotion department: they should make market | | | |promotion fully and promote their products and services | | | |on the international market. | Conclusion: In this report we analysis that the evaluating possibilities alternative strategies for Kungfu and have given our best strategy for Kungfu. We have also identify and evaluate resource requirements for what we have selected for Kungfu. We also proposed targets and timescales for monitoring the implementation of the stagey that we have selected for Kungfu. finally by comparing with the two companies :Kungfu and Air China Limited we have give a differentiation for the roles and responsibilities for their strategies. Reference Resources: http://www.u88jmw.cn/viewnews-6977/ (December 25, 2010) http://www.795.com.cn/wz/87904_3.html (December 24, 2010)