You are the SBD (Strategic Business Department) director for a company

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Recommended: Challenge of developing strategy

You are the SBD (Strategic Business Department) director for a company

operating in the entertainment industry

· Introduction

We are currently deciding to set up a subsidiary company which shall

enter the fast food industry. This report will give a step by step

detailed look upon what is to be done, to accomplish such a mission.

· Establishing Objectives

Our main objectives are to be inline with those of the parent company,

these are:

o Obtaining a market share of 15% during the first 3 years of

operation

o Cost cutting exercise shall increase

o To be customer oriented

o To reach a 5% return on investment

o To avoid a price war with the existing operator

o To provide a high quality service, and

o To be a market leader.

· Planning the strategies

When planning the setting of the strategies, this process would be

divided into two parts. First we shall conduct the research and

secondly formulate the strategies form the research obtained.

To obtain good strategies for the organisation it is very important to

set up a good research team, as the strategies shall base themselves

upon the research.

A SWOT analysis is an important factor to research, these are the

strengths and weaknesses, as well as the opportunities and threats.

o It has a parent company, it has recruited the top management

o Greenpeace societies might be at a disadvantage

o It is shaped towards the fast food industry, having new technology,

thus being at advancement over competitors.

o Would have to face setup costs, cause of the present competitors.

The PESTLE should also be conducted, these consist of: Political

aspects, Economic aspects, Socio-cultural aspects, Technological

aspects, Employment aspects, and Legal aspects.

o Political – Malta currently joined the European Union thus we shall

abide by the common laws.

o Economic – the Maltese population consume quite a high percentage of

fast food, thus we have a good landing in the market.

o Socio-cultural – nowadays a lot of families have both parents

working thus, lunch or dinner is a quick meal or a meal grabbed from a

take away.

o Technological – up to date computerized systems will be installed

thus creating an upscale form competitors.

o Employment – our fast food organisation shall have top management

employed within.

o Legal – legal issues shall be reviewed regarding recycling and

littering.

The strategies of the organisation shall be to extract healthy eating

and inform our customers, to target young children with their parents,

we shall be investing in latest technology and most importantly we

shall be setting a lot of promotion.

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