STR 581 Week 6
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STR581Week6AssignmentFinalStrategicPlancompassgroup.pptxFinal Strategic PLan
Presented by
Robert Gil
STR 581
11/20/2017
Claudia Duranceau
Table of contents
Executive Summary
Company Background
Mission Statement
Vision Statement
Value Statement
Environmental Scan
Internal Analysis
Strengths and Weaknesses
Internal Environmental Factors
Table of contents (2)
External Environmental Analysis
General and Operating Environments
External Environmental Factors
Strategic Recommendation
Implementation Plan
Organizational Change Management Strategies
Risk Management Plan
Conclusion
Reference
Executive Summary
In the Foodservice industry that are many organizations providing all essentials required to run a reliable and stable environment. Compass Group USA is an organization that provides foodservice and support services to corporate cafeterias, arenas, museums, award winning restaurants and other related organizational needs ("Who We Are", 2017). Although it is an international company providing their services in over 50 countries and over 50,000 locations, the U.S. branch began in 1994 when it acquired Canteen. Compass Group has been around for over 75 years and it continues to grow each day ("Who We Are", 2017). One of the reasons it has been successful, it’s because Compass Group scans its environment and adjust accordingly in order to stay competitive and profitable for the sake of its shareholders. Compass Group USA is an organization that provides foodservice and support services to corporate cafeterias, arenas, museums, award winning restaurants and other related organizational needs ("Who We Are", 2017). In the Foodservice industry, there are many organizations providing very similar services and products to Compass Group USA. Therefore, Compass Group USA must attract new businesses as well as retain current clients by creating plans or methods to run their daily operations that would allow them to center their business level strategies in a well-rounded environment. The implementation plan will need to review its objectives, find functional tactics, plan and perform action items along with the possible milestones it will need to meet in order to meet the deadlines. Tasks required by each major department of the organization will have the responsibility to make them work or adjust as needed with the resources given or allocating resources that will keep the organization in line of the proposed plan.
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Compass Group
Type of Services
U.S. Branch
Countries
Locations
75 Years of service
Competitive
Compass Group USA is an organization that provides foodservice and support services to corporate cafeterias, arenas, museums, award winning restaurants and many other related businesses in the market place. It is a global leader as a contractor in foodservice but also in the hospitality market. The USA branch began in 1994 with the purchase of Canteen which was bringing in over $1 billion in US dollar revenue and the organization continues to grow dramatically. In the Foodservice industry that are many organizations providing all essentials required to run a reliable and stable environment. Although it is an international company providing their services in over 50 countries and over 50,000 locations, the U.S. branch began in 1994 when it acquired Canteen. Compass Group has been around for over 75 years and it continues to grow each day ("Who We Are", 2017). One of the reasons it has been successful, it’s because Compass Group scans its environment and adjust accordingly in order to stay competitive and profitable for the sake of its shareholders.
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Mission Statement
“Everyone in Compass Group is committed to consistently delivering superior service in the most efficient way, for the shared benefit of our customers, shareholders, and associates”
Compass Group is a global business and although is a very large organization made up of many entities with many different clients as well as vendors and suppliers, the mission and vision are set in place to promote personal and family values. The mission is “Everyone in Compass Group is committed to consistently delivering superior service in the most efficient way, for the shared benefit of our customers, shareholders, and associates” ("Compass Group Mission & Vision", 2017). The mission speaks commitment to perform which means that in order to do so, they must promote safety and health to everyone from employees to the clients and community. Our customers can only be amazed if we are consistent and demonstrate the ability to perform our best when providing best quality and value to our products and services.
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Vision Statement
“To be a world-class provider of contract foodservice and support services, renowned for our great people, our great service, and our great results.”
Its vision is “To be a world-class provider of contract foodservice and support services, renowned for our great people, our great service, and our great results.” ("Compass Group Mission & Vision", 2017). These are values that promote professional standards which in turn create trust and respect for all. A major goal is to set standards for quality and to always have a win-win passion which are major factors when you want to be a leader in the corporate world and be able to compete as a major competitor not just in service but a leader in ethics and responsibility. Making positive contribution to the community, customer and employees helps the organization set its goal as a whole and not just one section of the business.
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Environmental scan
Opportunities and threats
Collecting Data
Competitors
Profitable
Population
Community
Demographics
Organizations are always encountered by opportunities and threats. Environmental scanning helps identify those areas. In this instance, Compass Group environmental scanning needs to collect data about their organization and its goods and services and then collect the same about competitors in the same or similar shared markets ("Strategic Planning: What Are The Basics Of Environmental Scanning?", 2012). The information will then be used to adjust their plans and strategies to continue to be competitive and profitable.
An important step in environmental scanning for Compass Group is to learn how government affects local businesses and how laws and the economy stand in any new possible market. Factors such as population and the size as well as the demographic where the new location should be established ("Strategic Planning: What Are The Basics Of Environmental Scanning?", 2012). All these different factors are important because Compass Group can learn how their competitors are handling specific issues in the current local market share
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Internal analysis
Elements
Client Solutions
Employees
Production
Acting Responsibly
Responsible Sourcing
Compass Group is made up of several elements in the food industry market sectors to include Business, Healthcare, Education, Sports and Defense (Food is Our Passion 2017). The organization provides solutions that offer mutual value to the client as well as the organization and still stay cost effective. Currently, Compass Group operates in more than 50 countries with over 50,000 clients (Food is Our Passion 2017). Compass group employs over 500,000 employees and takes pride in serving over 5 billion meals per year. Paul Walsh joined Compass Group in 2014 as the Chairman. Followed by several executives such as Richard Cousins, Dominic Blakemore, Johnny Thomson and eight others helping him run the many sectors that compose the organization. Compass Group corporate culture is described as “Acting Responsibly”. A major focus of this organization is the commitment to enforce that the welfare of the farm animals used in their global supply falls under “Responsible Sourcing Strategy” (Food is Our Passion 2017). These types of commitments bring back to focus in employee behavior. The importance of having an enthusiastic team is what brings the passion to the clients and also opening doors to employees to advance within the organization with possibilities in over 50 countries.
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Strengths & Weaknesses
London Stock Exchange
75 Years Of Service
Employees
World Leader
United Nations Audit
Legal Fees
Compass Group like most organizations has strengths as well as weaknesses. A major strength for Compass Group is that it is listed in the London Stock Exchange and the Financial Times Stock Exchange 100 Index which supports their continuous growth, but also helps the shareholders feel motivated about their investments and the employees know that they are part of a well financial driven organization (Compass Group Swot Analysis, Usp & Competitors, 2017). Because it has been around for over 75 years, this is an excellent example of their strengths as it helps the image of the company with great history behind its processes and robust financial position (Compass Group Swot Analysis, Usp & Competitors, 2017). Another major strength is the quantity of employed individuals currently running over 500,000 and growing. These amount of employees create many positive effects, from great talent to a ton of input, which Compass Group uses as it listens to its employees ideas.
It is considered a world leader in food and support services and continues to grow in emerging markets. But with strengths sometimes organizations face some down fall. One weakness that was very public was the allegations by the United Nations about bribery in UN Contracts (Kundnani, 2006). It settled two lawsuits for 40 million pounds with the two competitors that claimed losses over 600 million pounds. Another weakness that has put a dent in their ability to entitlement of best services was the claim by Canadian prisons that their food services was way below food good quality which in turn affected their brand image. One of the claims by the prisoners was that they were being served raw eggs and that equipment was down all the time (Collins, 2016).
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Internal environment factors
Innovation
Survey Employees
Dedication
The internal factors that build from the external efforts are much greater in strengthening the organization’s image and encouraging the employees to be motivators and enthusiastic. Innovation in food creation and improvement in support services has kept Compass Group as the world leader in the shared market. The organization surveys its employees and listens to its clients. It grows because their commitment to their investment in their internal factors and the dedication to keep external factors under control and well supported.
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External analysis
Market Strategy
Customers
Government
Economy
Public Opinion
An organization can be affected by the external environments. These types of factors are beyond the reach of an organization because the business can lack function from the effects of these elements. Some factors can be addressed by adjusting the marketing strategy, but other may require more drastic adjustments to be in compliance. Factors such as customers, government, economy, competitors and public opinion are considered the external environment (Root III, 2017).
Customers can be influence by making changes or redirecting marketing strategies to regain customer confidence. Ultimately, it is best to know and understand the customer more closely because this will help you influence them in obtaining the services Compass Group offers. On the other hand, government can become rather costly. Because of regulations in State and Federal laws, these can affect the cost of doing business. Compass Group has set pricing for their services and it guarantees their services at the cost agreed upon signed contract, but the profit margin can be drastically reduced if government enforce new legislation that would cost money to get up to standards.
Profit margin is also connected to the economy. Compass Group must constantly review and monitor changes in the economy. For example, avocados and meats have recently been affected by the weather’s damage to land, therefore their prices have sky rocketed. These changes may affect temporally, but hey can last longer than expected and the business will have to adjust how it serves its clients if there is no room for adjustment. But competition can also affect the way the business will need to adjust their pricing (Root III, 2017). Open markets where competition is minimal might be ideal to startup new locations, but for the most, it is what happens to the competition that allows the market share to shift. Competitors may be affected from public opinion. Something drastic could have taken place within the organization and clients do not want to deal with organizations that have negative impact in partnerships (Root III, 2017). Therefore, public opinion is important to upkeep because it can affect the way new and current clients view the organization.
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General & Operating Environments
Six Segments
Political
Economic
Social
Technological
Environmental
Legal
PESTEL analysis refers to the six segments that are within the general environment of an organization. Political, Economic, social, technological, environmental and legal are the segments for each letter of the analysis ("The Elements Of The General Environment: Pestel Analysis", 2017). For Compass Group, the political can refer to taxation and tariffs changes for importing or exporting of goods used each day such as fruits, vegetables. Any additional fees paid can affect the bottom line.
Economic factors can be driven from how the GDP adjusts each day or how the unemployment rate fluctuates. But it can also refer to as how much money or cash flow an organization has to use for services and this can affect how new businesses are acquired, but also how current businesses are lost due to lack of cash flow. Social factors are those that derived from trends whether it is from age, ethnicity or cultural status. Compass Group has been successful at functioning in a large demographic area and continues to grow.
Technological factors are those that as new technology becomes available, organizations promote the use of them and sometimes are connected to the environmental factors which can put a business at a loss if the competition is offering a more earth friendly use of technology alongside their business. But also following the legal factors such as safety, employment rights and healthy work environments are examples how well an organization will develop public relations in the long run.
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external environment factors
Social Changes
Economic Changes
Power of Media
Compass Group has some external factors that affect its growth, image and production. One external factor is the importance of growing the organic business. Although it is growing incrementally, its venture in continuing as a world leader in the food industry it’s important to be sustainable in all areas possible to include recyclable programs. Another example of external factor that Compass Group has encounter is the power of media as they encounter bumps in their growth. Because of previous issues with the UN and claims of breviary to get special contracts, the recovery and cleanup of organizations image is crucial to the continuous growth
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Strategic recommendations
Performance
Utilize HR
Reputation
Products and Services
More Clients
There are several potential business strategies Compass Group USA can rely on since it has many different departments with different functions which are required for the organization to run efficient. Coordinating daily activities is a very common business level strategy (Vitez, 2017). Management is responsible to get staff to view and perform according to the goal requirement. The idea is to be able to function as one, even though there are many staff members and departments involved. Another strategy at the business level is the proper utilization of the Human resource department. The organization needs to run budgets adequately and in order to do so, it is important to have the proper labor force available to accomplish what is required by each department. The importance of the Human Resource Department is the ability to recruit the right personnel for the right job specifications.
Compass Group USA must separate themselves from all other competition. To do this, it is crucial to develop distinctive strategies. These are factors that separate the organization from the others. Such things as product, services and reputation are competitive advantages that will allow Compass Group to be successful (Vitez, 2017). Everything from patented unique products to specialized services that are not offered by anybody else are perfect examples of how the budget can be well invested while still being cost effective so that it can attract more consumers and potential clients (Vitez, 2017). Compass Group offers several types of services, such as food service and facilities management, but other competitors offered very similar services. Finding niches in the market share by modifying a service to be unique, or making the organization available in areas where others are not willing to extended their services will separate them from the competition as Compass would have identified the market niches that others won’t touch or just plainly have missed the market opportunities.
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Corporate Level Strategy
Organizing
Implementing
Resources
Performance
Value Reducing
Redirecting Resources
Strategizing at a corporate level is ideal for Compass Group. The organization is made up of several identities so their corporate level strategies are already in place and working in the growth of the company. The organization continues to acquire new companies and merge them in the organization. A Value Creating strategy seeks out to gain market share in the fields that their competitors are situated (Bradley, 2017). The idea is to add value to the organization by using the power of the entire organization to reduce the cost of goods and services across the border, but maintain efficiency at top level. But also adding value by offering additional services or goods that the competition is not offering (Bradley, 2017).
Another corporate strategy that adds value to the organization is the Value Neutral Strategy (Bradley, 2017). Pressing importance in reducing risk and maintaining a steady cash flow are crucial to allocating the correct amount of manpower and proper resources needed to stay competitive. On the other hand, the Value Reducing Strategy can help the organization address any concerns with stakeholders feeling like the upper management are getting over paid or jus the organization is getting too big (Bradley, 2017). Focusing and redirecting resources to the right demographics and not looking into expanding in areas that may not be beneficial are examples of what Compass ca do to address such concerns.
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Global streategies
Learn Demographics
What Sells
Expansion
Culture
Taste
For Compass Group, global strategies can be complicated because of the food and support services it offers may not be the same across the world. Unlike technology such as a telephone or a soda that is the same anywhere you go, services can be complicated due to culture change and other demographic factors. However, Compass Group can adjust to globalization by understanding and learning from the demographic areas it is interested in expanding. Food Services can be learned and brought into place just by understanding what sells and what the competition is offering. Compass Group has done very well in expanding to Countries such as Mexico, United Kingdom and other European countries. The organization has been successful in all these demographics because they have been able to adjust to culture, taste and operational needs.
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Recommended strategy
Value Reducing Strategy
Balance Payroll
Value Creating Strategy
Generating new businesses
Sustainability
Expand Services Beyond Food
Because Compass Group is already a very large organization with many locations and clients all over the world, it is important to pull back and recognized the importance of keeping stakeholders assured as well as content with the results of the organization. The Value Reducing Strategy is defined by the support needed from the CEO and all Upper and Senior management. A well balance payroll of those who are high in the chain of command can ease the questions of why it is so important for stakeholders to understand that capital is being routed to the right departments and to maintaining clients and staff happy and not on overpaying salaries. But also practicing the Value Creating Strategy will continue to be the force on generating new businesses and partnerships that will help the growth of the organization, but also maintain all current clients happy that they are partners with an excellent service provider that main focus is to provide the best possible services with focus on sustainability and profit both for its clients, stakeholders and organization’s members. Compass Group will continue to grow and expand the services it provides. Seeking future accounts and business it can acquire to gain market share are crucial to the expansion of its services. Providing innovative ways and focusing energy in technology are just ways of client retention through the use of business, corporate, and global strategies that will help take market share.
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Implementation plan
Presentation
Product and Services
Expansion
Presentation – Many millennials are visuals shoppers and for the most want to buy what they like without the disturbance of a sales person telling them what to buy from their display cases. Because strategies are changing and the way accounts are acquired, sold and bid upon, a digital and interactive system would allow accessibility for the client and the consumers.
Products and Services – Introducing more innovative products and services. Allowing the clients to choose a wide set of food choices and use the experience gain in other countries and cultures and offer that to new and existing clients.
Expansion - Because Food services, Janitorial and Facilities management come in hand on most occasions. Compass needs to explore the possible expansion into other logistical areas it can provide further services.
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Organizational change management strategies
Get Departments Involved
Allocate Budget
Analyze SWOT
Point Key Factors
The objectives have been identified and the deadlines have been put in place. Now the challenge is to assign the task to the specific departments such as Human Resources who will take ownership of matching the right associates with the proper training and character to perform the redesigned job duties.
The Finance Department to guide upper management to identify which stores are under achievers in comparison with others in their perspective demographic locations. Upper management will need to take ownership of this task in order to meet the deadlines and match the set milestone of the strategic plan.
Analyzing Compass Group weakness and strengths are key factors to its strategy to succeed in this major strategic plan to reinvent its sales and image as a top retailer. A strategy formation is highly recommended for this plan in order to enhance the successful implementation of the specific action items needed along with the deadlines and milestones that will keep the organization in track.
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Risk Management
| Compass Group Risk Management Plan & Tracking | ||||||||
| Risk # | Business Area | Description | Likelihood | Severity | Level of Control | Significance | Risk Strategy | Risk Mitigation Plan |
| 1 | Presentation | Marketing | 4 | 3 | 3 | 10 | Control | Design and Provide Great Food |
| 2 | Services | Brand | 3 | 3 | 3 | 9 | Control | Create a team to delegate new in house product |
| 3 | Add New Accounts | New clients | 4 | 3 | 3 | 10 | Control | Review lease contracts and hire law firm to quickly close |
The Finance Department to guide upper management to identify which stores are under achievers in comparison with others in their perspective demographic locations. Upper management will need to take ownership of this task in order to meet the deadlines and match the set milestone of the strategic plan. Analyzing Compass Group weakness and strengths are key factors to its strategy to succeed in this major strategic plan to reinvent its sales and image as a top retailer
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Risk Management
A strategy formation is highly recommended for this plan in order to enhance the successful implementation of the specific action items needed along with the deadlines and milestones that will keep the organization in track. The Break Even point shows which way the business needs to head and how to raise the bar on the sales vs the cost of services.
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Conclusion
Acquiring new accounts and businesses
Corporate Social Responsibility
Environmental Scanning
Internal & External factors
Investing in Employees
High quality services
Innovation
Since 1994, Compass Group USA continues to acquire new organizations and adding them into their world portfolio. The commitment to excellence does not lessen or weakened as it grows. In fact, the need for improvement get stronger and better each time. “The World Bank defines Corporate Social Responsibility as “the commitment of businesses to behave ethically and to contribute to sustainable economic development by working with all relevant stakeholders to improve their lives in ways that are good for business, the sustainable development agenda, and society at large"("The Ethics Of Corporate Social Responsibility", 2013). Environmental scanning reveals what the competition is doing and it helps the organization develop strategies to better themselves as well as to stay in competition s well as to stay profitable. Compass Group continues to grow and acquire new business and as long as it is growing, it will have to continue examining its external, general and operating environments in order to maintain a competitive edge among its known rivals. Understanding how internal and external factors can affect the performance as well as the client retention is key to the organizations continuous growth. Many opportunities are available to maintain, such as keeping all companies in federal and state standards, but also global requirements. Investing in employees and generating positive work environments will keep the company whole. Innovation and growing sustainability internally but also promoting it externally with its partners are fundamental to the growth in the global supply. The commitment to provide the highest quality to all customer including all support services along with focusing constant efforts to make a difference in the market share will grow the confidence in the client list and any possible new businesses. Compass Group will continue to grow and expand the services it provides. Seeking future accounts and business it can acquire to gain market share are crucial to the expansion of its services. Providing innovative ways and focusing energy in technology are just ways of client retention through the use of business, corporate, and global strategies that will help take market share.
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Reference
Clayton, J. (2017). The Five Stages of the Strategic Management Process. Retrieved from
http://smallbusiness.chron.com/five-stages-strategic-management-process-18785.html
Collins, C. (2016). The cost of privatized food in public institutions. Retrieved from
http://rabble.ca/news/2016/02/cost-privatized-food-public-institutions
Compass Group Mission & Vision. (2017). Retrieved from
http://www.compass-usa.com/mission-vision/.
Compass Group Swot Analysis, Usp & Competitors. (2017). Retrieved from
http://www.mbaskool.com/brandguide/tourism-and-hospitality/13436-compass-group.html
Food is Our Passion. (2017). Retrieved from
https://www.compass-group.com/en/
Gaines, M. (2017). How to Develop Milestones for Your Business. Retrieved from
http://smallbusiness.chron.com/develop-milestones-business-25635.html
Kundnani, H. (2006). Compass settles claims of bribery in UN contracts. Retrieved from
https://www.theguardian.com/business/2006/oct/17/3
Reference(2)
Root III, G. (2017). Five Components of an Organization's External Environment. Retrieved from
http://smallbusiness.chron.com/five-components-organizations-external-environment-17634.html
Strategic Planning: What are the basics of environmental scanning? (2012). Retrieved from
https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/cms_021670.aspx
The Ethics of Corporate Social Responsibility. (2013). Retrieved from
https://www.brandeis.edu/ethics/ethicalinquiry/2013/November.html
Third Quarter Update. (2017). Retrieved from
https://www.compass-group.com/content/dam/compass-group/corporate/Investors/Resul ts - presentations/2017/Q3TradingUpdate/Q3%20Trading%20Update%202017%20FINAL.pdf.downloadasset.pdf
Vitez, O. (2017). Five Types of Business-Level Strategies. Retrieved from
http://smallbusiness.chron.com/five-types-business-level-strategies-781.html
Who We Are. (2017). Retrieved from
https://www.compass-group.com/en/who-we-are.html
