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Running head: Business Analysis of Jamat Group 1
Business Analysis of Jamat Group 4
Contents Cover Page 1 1.0 Mission, Vision and Values 4 a. The Mission of the Company 4 b. Vision of the Company 4 c. The Values of Company 5 2. External Analysis 5 a. Opportunities and Threats 6 b. Opportunities 6 c. Threats 7 d. Environmental Scanning 7 3. Industry and Competitors 10 4. Internal Analysis 11 a. Strengths 11 b. Weaknesses 12 c. Firm Resources (People, Process and System) 12 d. Classification of capabilities and resources 13 5. Strategy Formulation 13 a. Changes 14 b. Business Strategy and Competitive Advantage 14 6. Strategy Implementation 15 Evaluation and Control 17 References 17
Executive Summary
The Jamat Group will be an international hotel with enterprises in various parts of the world, and the map indicates some of the major locations. The company will create and break various records in the Hospitality and Fast Food industry. Jamat Group will tackle its external and internal aspects of the company through situation analysis. The framework of situation analysis identifies, collects, evaluates and interrogates the most critical information and relevant facts of the current and past situation of the company with the intention of gaining a competitive advantage. The firm will successfully address such factors to be one of the international leaders in the Hospitality and Fast Food industry. This situation analysis offers understandings about the potential influences on the business of the firm. The high performance of Jamat Group will serve as a predictor of its capacity to tackle the matters itemized in this situation analysis. Situation analysis of the company indicates the corporation will remain active in the global Hospitality and Fast Food market and industry, even though issues associated with corporate culture, competition, and organizational structure would be handled. We will transform the modern technologies into our customers’ value via our professional consulting businesses, services, and solutions in the whole world. We believe that we should manage and have the critical technology behind the food and menu we develop and participate in a marketplace where we create a significant contribution. We can perform a few projects what are indeed meaningful and vital to the customers, and we shy away from doing so many projects at the same time. We believe in cooperation as well as cross-pollination of our teams which allow us to remain innovative in a way other organizations cannot copy or imitate. We do settle for anything less than high-quality and excellence to meet the expectations of our clients
1.0 Mission, Vision, and Values
a. The Mission of the Company
A mission statement refers to a short explanation of the purpose of the company that identifies its operation goals, geographical operation region, primary market or customers, as well as the kind of services or products it offers (Andreasen, Kotler, & Parker, 2008). We believe that we are on the face of the earth to create superior and delicious foods and services and this will not change any soon. We intend to be the world leader in the development, creation, and generation of services and tasty food in the Fast Foods and Hospitality Industry. We are continually ripping from creativity and innovation. Moreover, our global services and solutions network professional translates the food and services into our customers business value (Cravens & Piercy, 2006). We have faith in simplicity and avoid complexities.
b. The vision of the Company
Together with fun-filled and delightful family experience to the society which it serves, the vision of the company is to provide a wholesome, delicious, and fresh dishes and meals to its customers (Burns, Bush, & Sinha, 2014). The duty of the employees could be to serve the table, and their purpose is to make sure the clients and families return after a visit to the hotel. The staff of hotel functions to get the guests to think of the company when they leave, as this shall make the guests love Jamat Group and return later. The staff members dedicate great efforts to ensure the dishes remain a memorable experience for guests and their families. The company desires to provide wholesome, delicious, and fresh meals to fulfill its green and sustainable environments. The management aspires to maintain the hotel’s culture and continue proving exciting, durable, and fresh dishes (Cohen, 2005). It aspires to use green and sustainable procedures in all its management which involve wastes, produce, and material.
c. The Values of Company
The goal of the company is to accomplish and sustain a leadership position in its industry and markets, therefore establishing a value for its employees, shareholders, and clients. Its strategy is developed to solve some of the core pressing challenges facing human beings to this end (Andreasen, Kotler, & Parker, 2008). By exceptionally doing so, the business aims to strengthen its earning power. While at the same time by respecting the interests of all its stakeholders, the firm also dedicates in functioning sustainably and handling its ethical and social roles as a corporate citizen. The company values integrity, transparency, and honesty.
2. External Analysis
Jamat brands are projected to post positive performances. Burns, Bush, and Sinha (2014) stated that at a constant price throughout the forecast, the brands are forecasted to realize an increase in value with all other brands predicted to have positive performances. Jamat brand will be a dominant brand that can be attributed to the active lifestyles of consumers with many individuals loving outdoor activities. The company will offer what the consumers look for, as they search for items with added benefits. The consumers are seeking brands with additional benefits like healthy and delicious meals.
Opportunities and Threats
Opportunities for an organization are the areas which the business can exploit to earn more revenues (Chernev, 2015). These can be the market gaps in the industry that the company can take advantage of either to increase its market share in the industry and therefore make more sales and gain and earn more revenues and profits. The following are the crucial opportunities for Jamat Group:
a. Opportunities
People are now more inclined to purchase healthy drinks, foods and other products that minimize diseases because the perception and perspectives have changed (Cohen, 2005). People now view such products as essential for healthy living. The demand for healthy brands in developing countries and emerging economies are rapidly increasing, and the company will, therefore, think of exploiting such market opportunities (Cravens & Piercy, 2006). Everyone around the world is becoming more interested in the degradation of the environment, and he or she is also ready, prepared and willing to play the role to curb this global menace. Being the high time; the management of Jamat Group will popularize its brands as environment-friendly (Hair, Celsi, Ortinau & Bush, 2008). Boost methods to minimize counterfeit sales, expansion of business of brick-and-mortar and penetration to developing markets are the opportunities associated with the Fast Food market for the company. Penetration to the developing markets shall allow the firm to establish its presences in new markets thereby giving the company a sturdier competitive edge and benefit before other large online retail companies. Consumer reports automated procedures and evaluation of product may assist minimize the amount of the counterfeit products offered on the websites (Burns, Bush, and Sinha 2014). Therefore based on the SWOT analysis, Jamat Group has significant growth opportunities.
b. Threats
Threats are factors which can make an organization face recession in case not handled at the correct time. Therefore, the possible risks of Jamat Group include:
• Stiff competition: Jamat Group will face stiff competition from well-established companies in the Hospitality and Fast Food industry. Based on the fact by Andreasen, Kotler, and Parker (2008) the company will be competing with big names in the market such as McDonald and Starbucks. It makes it quite difficult for the company to control the significant market share.
• High-Priced Raw Materials: The cost of end products increases as the cost of raw materials increase; this is because the high cost of raw material enhances the overall value of production.
c. Environmental Scanning
The macro-environment consists of all the factors which can affect the operation of a company and it does not have direct control (Burns, Bush, and Sinha, 2014). Generally, an organization does not dictate any law, but the legislation made by the government affects the normal operations of the business. The Macro-environment is dynamic and is, and therefore the firm must be flexible to match the changes. According to Cohen (2005), there may be a rivalry in the market and aggressive competitions. Globalization implies that the company is always faced with the threat of new entrants and substitute products. The broader environment is also dynamic, and the marketers need to compensate for changes in technology, economics, politics, and culture. There are various factors in the external business environment which shall influence the managers’ decisions of any firm. Changes in government policy, demographic changes, trade barriers, new laws, and tax changes are all instances of external environmental change (Chernev, 2015). The PESTEL model helps in analyzing these factors.
Political Factors
Political factors are the government or state policies such as the intervention degree in the economy, the extent the government is subsidizing companies, and goods and services it wants to offer (Cravens and Piercy 2006). The stable political environment in the country will impact positively on the operations of the Jamat Group. The business, therefore, enjoys a favourable political environment in the vital areas for the company such as the infrastructure quality of the economy in the form of rail and road system, the national health, and the workforce education.
Economic Factors
Economic factors include exchange rates, inflation, economic growth, changes in taxation, and rates of interest. Economic reforms can have significant impacts on the behaviour of the firm. For example, in the country, low interests rates promote investment since it costs less to borrow (Hair, Celsi, Ortinau & Bush, 2008). Low rates of inflation do not provoke higher demands of wages from workers and reduce costs, the higher growth of national income boost demand for products of the firm, and stable currency of nation encourages the exportation of the products.
Social Factors
Changes in the social trends influence the demand for the products of Jamat Group as well as the willingness and availability of people to work. For example, Andreasen, Kotler, and Parker (2008) found that in the state, the youthful population has been increasing which will reduce the expenses for the hotel. It also implies that the firm will hire the young workforce to tap into this active labour pool, as the youthful population has impacts on demand.
Technological Factors
New technologies develop new processes and products (Burns, Bush, and Sinha 2014). The skills and innovation of the workers of the organization form the foundation for its success as a company. It drives changes by continually designing new business models, molecules and technologies in its centers of research, collaborating with external partners, expansion of its activities through mergers and acquisition, supporting the development of staff members, and investing in projects of research and development (Cohen, 2005). Strengthening its innovative capabilities enable the corporation to tackle the challenges of its time and accomplish corporate growth of profits. Jamat will enhance the culture of innovation based on internal interdisciplinary cooperation and openness on new approaches as well as investing in research and development (Chernev, 2015). The business will create national and global networks of professional scientists to improve its expertise further and extending these networks through cooperation with external partners.
Environmental Factors
Environmental factors include climate and weather changes (Cravens & Piercy, 2006). With significant climate changes taking place because of global warming and with better awareness, this macro factor is becoming an essential matter for companies to consider. In the country, many consumers have known that healthy food reduces certain infections such as cancer and diabetes. Therefore, many customers are now changing to such foods to accomplish their desired tans (Hair, Celsi, Ortinau & Bush, 2008). The increasing desires to safeguard the environment and the general move towards environmentally friendly processes and products is having an impact on how Jamat Group operates and creating business opportunities and affecting demand patterns and trends.
Legal Factors
There are legal factors that are associated with the operations of the company. In the nation, there have been many critical legal changes in recent years which have affected the behaviour of firms. The higher requirements for firms to recycle its products; increase in the minimum wage; the introduction of the disability; and age discrimination acts are examples of comparatively current legislation which affect the actions and activities of the organization. The legal changes affect the demand and costs of business.
3. Industry and Competitors
From five companies controlling the global fast food industry for the past decade, the dynamics of the worldwide market have transformed. Currently, the industry is regulated by two key participants that include Starbucks and McDonald that control fifty percent of the fast food market in the whole world. Jamat Group will be operating within the competitive and dynamic hospitality industry. The competitions in the fast food industry are very high because there are no entry and exit barriers in each part of the world. Cohn (2005) stated that competitions are very fierce, and therefore each organization in the industry is just attempting to strengthen their international positions using any technique workable or practicable.
The primary rival companies to our restaurant will be any food chains with the diameter of 600m its areas of operation. The biggest rivals of our hotel are Starbucks and McDonald. McDonald is the largest company in the fast food industry worldwide (Andreasen, Kotler, & Parker, 2008). It has accomplished the scale economy in the market not only in Europe but worldwide and holds about 30% of market share in the fast food industry in Europe. The fast-food industry is expanding. Therefore, the competitions shall attempt to attain their targets of growth (Cravens & Piercy 2006).
Well established restaurants such as Starbuck tend to design their strategy to fast food market, and because of scale economies, they shall generate unique and higher quality products that make their position in the industry, thereby keep expanding to accomplish its targets (Chernev, 2015). Starbuck is among the initial food sellers which popularized the alternatives of "light and healthy" like lean sandwich or salad as the only option for the lunch lodgings in the entire United States of America, and this is a business venture that ranked as the best pizza place in the area. The retail outlets of Pizza Walker are mostly decorated using inviting ambiances, like the see-through kitchen and beautiful flowers. It is, therefore, a nice joint to around with friends, and the joint is usually full of people at lunch hours (Burns, Bush, & Sinha, 2014). The Pizza Walker joint has many tables for the service of many customers.
4. Internal Analysis
a. Strengths
The company success will depend on its notable strengths. Strong brand, highest revenues in the industry, and extensive product are the strengths that support the ongoing growth and success of the business are some the strengths of our organization. In the Fast Food and Hospitality Industry, the company will create the strongest brand that will be responsible for company’s rapid growth and fulfilling its mission statement and vision statement (Hair, Celsi, Ortinau, Bush, 2008). The strengths will support service attractiveness that is critical in maintaining the success of the company. Generating reasonable revenues helps the firm to invest in the new development of a product or new ventures of business, thus enabling the company to maintain its market position in the sector.
b. Weaknesses
Limited presence of brick-and-mortar, limited infiltrations in the developing markets, and easily imitable business models are some of the significant weaknesses in the Jamat Group case. The company has a business model which other businesses can easily imitate (Kotler, Bowen, & Makens, 2009). By SWOT analysis, the company should strategically maintain offline and online competitive advantages in overcoming its weaknesses, and negative effects.
c. Firm Resources (People, Process and System)
The hotel will use the resource-based view which is a managerial structure utilized in determining the strategic resources with potentials in delivering comparative advantage to the company (Andreasen, Kotler, & Parker, 2008). The firm can exploit these resources to accomplish a sustainable competitive edge. The resource-based view concentrates managerial attention on the internal resources of the hotel in the efforts of identifying those competencies, assets, and capabilities with the potentials of delivering superior competitive edges (Katz, 2009). Resources are the knowledge, information, firm attributes, organizational processes, capabilities, and assets controlled and managed by the company to conceive of and execute initiatives which enhance its effectiveness and efficiency.
d. Classification of capabilities and resources
The resources will be categorized as tangible or intangible. Burns, Bush and Sinha (2014) reported that, Tangible resources will include physical assets like human and financial resources such as cash, trademarks, patents, brands, inventory, plant, machinery, raw material, and real estate. The intangible resources will be embedded in the practices and routines like a relationship with clients, vendors, or other key stakeholders, know-how or knowledge, culture, and reputation of the company.
5. Strategy Formulation
• Comprehending the fundamental philosophy and values of Organization Development: Organizational development is usually known as a normative or values-based practice field (Andreasen, Kotler, and Parker 2008). The four major value orientations that have helped to establish the fundamental organization development philosophy are an evolving orientation of social-ecological systems, client-centred consulting, democratic principles, and humanistic philosophy.
• Organization development results from incorporation of ideas: What is referred to as organization development originates from practicing different combinations of practices and premises intended to improve the system of organization.
a. Changes
Development of the organization is about transformation in the human systems. It is not just any change under any scenarios (Burns, Bush, and Sinha 2014). Rather, the practice and theory of organization development foster various major criteria associated with the efforts of change:
• Change need to be directed toward improving the organizational, individual, and group abilities and the conditions of work which contribute to the changes within the company.
• Change need to be performed in line with human systems of social science knowledge and the way they change, and an optimistic set of assumptions and values about human potential and capability.
• Changes should be instigated and nurtured to the highest level possible, by the individuals involved; they also need to be by their assessments and concurrences with the need to changes.
• Efforts of change need to result in desired changes as well as leave client systems with improved skills and capabilities to tackle future needs and scenarios.
b. Business Strategy and Competitive Advantage
Some businesses are known for ripping off people and cutting throats (Burns, Bush, and Sinha 2014). Each business entity has its rival companies that worse than them or are better than them. Jamat has its competitors in the Fast Food Sector. The company will offer high-quality and best-menu services to remain relevant, competitive and successful in the highly competitive industry (Hair, Celsi, Ortinay & Bush, 2008). The Department of Human Resource at the company will play up their game in hiring and recruiting the best, talented, skilled, and well-trained workers with the required knowledge and skills to do the job and ensure the company remains competitive in the industry. The company wishes to move everything to software and digital VS manual for it to acquire and employ the best candidates as the manual processes take too much time. The business strategy of Jamat is to offer outstanding services to our customers (Chernev, 2015). The company will accomplish these business strategy goals by employing highly skilled staff members who are up to date on new business concepts, trends, and technologies and are knowledgeable as well.
Differentiation of goods and services will be the Jamat Hotel business backbone which will enable the hotel to gain a competitive advantage (Cravens & Piercy, 2006). The organization will differentiate its services as well as products by maintaining high-quality, high levels of standards, and integration of IT into the provision of different services. Digital hospitality will be one of the primary sources competitive advantages of Jamat (Cohen, 2005). Digitalization will enable the hotel to provide most of its products online.
6. Strategy Implementation
Organizational Plan and Structure
The hotel’s organizational structure will be detailed and hierarchal because the restaurant will be a big corporation with different subsidiaries (Burns, Bush, & Sinha, 2014). The organizational will also describe as divisional with different departmental heads. Jamat will have the following divisions:
Finance Department
The finance department will prepare and interpret the financial statements, cost accounting and cost control.
Front Office
The department of the front office or room management will be responsible for dealing with customer services including desk service, reservations, laundries, concierges, telephones, and housekeeping service (Hair, Celsi, Ortinau & Bush, 2008). The hotel’s front office is where the visitors will be welcomed, assigned, and registered accommodation as they seek rooms. Checkouts will occur at this department.
Human Resource Department
The department of human resource will be dealing with issues such as employee hiring, staff training and development, checking the staff attendance, taking disciplinary action, and undertaking promotion.
Food and Beverages
The division will handle dining rooms, restaurants, bars, kitchen, and services of cleanup. The division will be categorized into Restaurant Department and Kitchen Department (Cohen, 2005). The kitchen department will be responsible for food preparation and restaurant division will be responsible for providing dining room operation, waiter service, food runner, and clean-up services.
Marketing, Sales, Research and Development
The department will respond to provide hotel facilities and services to the clients for sales. It will be responsible for the promotion of the company.
Logistics
The department will deal with keeping the stock security, as well as to track everyday buying of supplies and appliances.
7. Evaluation and Control
Evaluation involves the process of establishing the given strategy effectiveness to accomplish the objectives of the company, and control refers in taking corrective measures wherever necessary. It is the final stage of strategic management, because internal and external aspects are regularly changing, and all these strategies are subject to future modifications (Andreasen, Kotler & Parker, 2008). In the process of strategy evaluation and control, the managers shall establish whether the selected strategy is accomplishing the objectives of the business. The primary strategy evaluation and control actions will involve reviewing the external and internal aspects which are the foundations for existing initiatives, measurement of performance, and taking corrective measures when required.
8. Bibliographies
Andreasen, A. R., Kotler, P., & Parker, D. (2008). Strategic Marketing for Nonprofit Organizations, 44-53. Upper Saddle River, NJ: Pearson/Prentice Hall.
Burns, A. C., Bush, R. F., & Sinha, N. (2014). Marketing Research 7. Harlow: Pearson.
Chernev, A. (2015). The Marketing Plan Handbook. Cerebellum Press.
Cohen, W. A. (2005). The Marketing Plan. John Wiley & Sons.
Cravens, D. W., And Piercy, N. (2006). Strategic Marketing 7. New York, NY: McGraw-Hill.
Hair, J. F., Celsi, M., Ortinau, D. J., & Bush, R. P. (2008). Essentials of Marketing Research. New York, NY: McGraw-Hill/Higher Education.
Katz, J. A. (2009). Entrepreneurial small business.
Kotler, P., Bowen, J. T., & Makens, J. C. (2009). Marketing for Hospitality and Tourism. Prentice Hall.