1-Identify and evaluate the suitability of the organisation’s current CORPORATE level strategies. You are required to use Zambrero food chain as organization.
(a) Identify and discuss the corporate level strategies that the organisation is implementing/has implemented
(b) Evaluate the suitability of the organisation’s current strategies. Recommend no more than two alternative strategic initiatives that the organisation should pursue to improve its effectiveness and justify your recommendations.
Executive Summary
Zambrero Food Chain is containing merger & acquisition and new product development as corporate level strategies. Along with the comprehensive background of the company, these corporate-level strategies, along with some examples and insights, have been identified and evaluated. Affiliation with Rise against Hunger and Food bank indicates the merger. Development of Trezigo’ sauce depicts the new product development. After describing and evaluating these strategies, two prominent alternatives such as strategic alliances and current product improvement and effectiveness have been recommended. Accordingly, it looks imperative to justify these recommendations. Market share, sustained brand image, the effectiveness of all operations, and resources and capabilities of the company are some factors, which demonstrates the justification of the strategies or recommendations. Zambrero Food Chain expresses good current level strategies. However, the management should keep alternatives.
a-Identification of Current Corporate-Level Strategies
Merger
Concerning current operations of the company, the first corporate level strategy is a merger. Zambrero food chain, as mentioned, is triggered by the social responsibility to eliminate the hunger in different communities. Accordingly, the company has partnered with top food distributors in the company to share the operations or process to meet goals. In terms of market share and brand image, the Zambrero food chain has gained the success. For Instance, the management of the company has partnered with the Rise against Hunger and Food bank. Of course, the company, through these mergers aims to donate one billion meals in the next seven years. These organizations are committed to eradicating hunger from the communities, which are helpless. People or customers, containing good income level, usually make positive buying decision to help and support these communities. This is a big reason for the merger as it provides a big chance to cover the intended customers. This current corporate level strategy is good for Zambrero Food Chain, especially when conducting the international business. The affiliation with another firm to meet the sales targets, profitability, and social responsibility is a suitable strategy. (Rise Against Hunger, 2015).
New Product Development at Zambrero Food Chain
The second corporate level strategy is the New Product Development. The company, by using its employees, resources, and culture, intended to develop new products with the passage of the time to integrate with the needs of customers. Development of new products for customers and improvements to existing products is necessary for this organization to keep the success sustainable. For example, recently, Zambrero launched Trezigo’ sauce to enhance the taste experiences of customers in the market. The company seems experimental in this product development process, as it has combined garlic, coriander, and lime (Qsrmedia.com.au, 2016). With the passage of the time, the company, through appropriate market research, identify needs and trends and develops new products. Fascinatingly, new products in the market create the surge. Moreover, it also provides good opportunity to gain the competitive advantage in the presence of immense competition. Coming up with something new and unique is the main factor, which has been integrated with this corporate level strategy. However, it is a big question that how this firm justifies the suitability of this strategy despite having several challenges.
Now, the study illustrates the suitability of these strategies, and after that considers the alternative strategic initiatives.
b-The Suitability of the Organization’s Current Strategies
First, a merger, a key corporate-level strategy for this company, is suitable due to food initiatives, taken by the company. For Instance, the company has opened restaurants in New Zeeland, Ireland, Bangkok, and Thailand to donate the food to needy people. Rise against Hunger and Food bank are containing the international operations to needy people in terms of hunger. Therefore, the suitability has been justified because the company, due to this strategy can reach the target customers in an effective manner. In addition, this strategy is also suitable due to the wide operation of these firms in different countries. Thus, it seems a good opportunity for the company to grab the immense range of the customers, and the company did in an effective manner. The suitability seems visible due to the employee-centric approach, firm infrastructure, retail technology, and standards. These factors create the space for the company and help in making the merger or acquisition successful (Digges, 2017).
Furthermore, relative to the second corporate level strategy, it is also suitable for different markets. Especially in the diversification process, the company a can come up with some new products for the customers to grab the attention. Every region, including Australia, the company develops the new products or improves its Mexican food product line to trigger with the taste, interest, and needs of customers. It not only enhances the sales but also makes the customers assertive, responsible and loyal. Thus, these are some key factors, which indicate the suitability of this particular corporate level strategy. Freshness and high-quality maintenance, innovation, creativity, and technology integration, better positioning and low-cost services are some important value creation factors, which boot the suitability of this corporate level strategy (Business News Australia, 2016).
Two Alternative Strategic Initiatives for Zambrero Food Chain
Strategic Alliance
Obviously, there can be a tension due to different operations and management styles. Therefore, for merger and acquisition, the big alternative and strategy initiative for this company is the strategic alliance. Differentiation is a key strength of the company, and merger or acquisitions may impair it. The company, through a strategic alliance, can sell the franchise and expand the business operations to meet the goals. The big advantage of this strategic initiative is to keep independent and just affiliate with other firms for some agree on goals and objectives. In the competitive retail market, there is always a chance is losing market share, and strategic partnership, instead of the merger is the best choice to keep the objectives attainable (Meyer & Wadsworth, 2016).
Improvements in the Existing Products
For new product development, the best alternative is the improvements in the existing products, and it has also been mentioned earlier. Instead of developing new products and invest heavily, the best thing is to make the improvements through appropriate research, integrations, and positioning. If the company is losing sales in the market, it can revisit the current product strategy to contain the improvements. It can save the cost and time of the company. In the new market, it seems good for Zambrero to introduce existing products first if it finds a space of these products. Again, marketing strategies, such as differentiation, must be linked to make this alternative or strategic alliance successful. Overall, the effectiveness of operations can be attained quite prominently (Greenblatt, 2014)
Figure-Issues with Corporate Level Strategies
Justification of Recommendations
Strategic alliance and partnership can be justified through the increase in the market share, sustained brand image, and effectiveness of all operations. The company does not have to transform the whole process in the strategic partnership. For Instance, Zambrero can form the strategic alliance for just distribution of the meal or donation to the target destinations. By this consideration, the differentiated, a core of the business level strategy, can be sustained (McGahan, 2016).
The firm, due to its infrastructure, technology, and human resource can make the improvements in the existing product line. In other words, the resources and capabilities of the company are enough to make the difference. It provides a pertinent rationale for the firm to consider this alternative or strategic initiative recommendation.
Conclusion
In the end, it is to conclude that the company may not stick to the current corporate level strategies, as there is a need for some alternatives to contain the effective and sustain the business. Company background, current corporate level strategies, suitability of these strategies, strategic initiates or alternatives and justifications of these recommendations have been illustrated in this study along with some key insights.
References
Business News Australia. (2016, November 23). Zambrero Powers Up Gluten-Free Offering. Retrieved from https://www.businessnewsaus.com.au/articles/zambrero-powers-up-gluten-free-offering.html
Digges, M. (2017, June 28). Meaningful Mexican: Zambrero donates 15M meals to those in need. Retrieved from https://www.sbs.com.au/food/article/2017/06/28/meaningful-mexican-zambrero-donates-15m-meals-those-need
Greenblatt, D. (2014, January 22). 5 Steps to Improve Quality No Matter What You Produce. Retrieved from https://www.inc.com/drew-greenblatt/5-steps-to-improve-quality.html
McGahan, G. (2016, June 8). By Greg McGahan, PwC Deals Partner and US Alliances Services Leader. Retrieved from http://usblogs.pwc.com/deals/seven-success-factors-jv-alliances/
Meyer, J., & Wadsworth, M. (2016, September 19). M&A: Is there an alternative? Retrieved from https://realbusiness.co.uk/business-growth/2016/09/19/ma-is-there-an-alternative/
Qsrmedia.com.au. (2016, February 10). Zambrero launches new ‘Trezigo’ sauce. Retrieved from http://qsrmedia.com.au/menu-innovations/news/zambrero-launches-new-trezigo-sauce
Rise Against Hunger. (2015, October 31). Australians Join Zambrero In Packaging 319,000 Meals On World Food Day. Retrieved from http://www.riseagainsthunger.org/australians-join-zambrero-in-packaging-319000-meals-on-world-food-day/
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