ASSIGNMENT COVER SHEET Please complete ALL sections below and email your assignment to (Please check submission guide) Surname: First Name: Group: 2 ( LEVEL 6) Submission Date: 17/04/17 Module Name: corporate strategy for hospitality and tourism Pizza express case sudy NOTE 1 THIS ASSIGNMENT COVER SHEET NEEDS TO BE COMPLETED AND RETURNED WITH YOUR ASSIGNMENT. FAILURE TO SUBMIT A COMPLETED COVER SHEET WILL RESULT IN YOUR WORK NOT BEING GRADED DECLARATION I have read and understood the UCB Regulations and Policies relating to academic misconduct. I declare that: This submission is entirely my own original piece of work. It has not been submitted for a previous assessment in UCB or any other institution. Wherever published, unpublished, printed, electronic or other information sources have been used as a contribution or component of this work, these are explicitly, clearly and individually acknowledged by appropriate use of quota-tion marks, citations, references and statements in the text. I understand that penalties will be incurred for late submission of work STUDENT SIGNATURE: DATE: NOTE - Please complete the details below Have you submitted any Mitigating Circumstances Application? Yes(Y) /No (Please delete appropriately) Date of Submission 17/04/2017 After you have been studied generating strategic options and develop your knowledge of the theoretical strategies Little reminder:- THEORITCAL STRATEGIES – ANSOFF’S ALTERNATIVES EXISTING NEW EXISTING PRODUCT/ BUILD MARKET PENETRATION PRODUCT DEVELOPMENT On existing competence With new competence Beyond current expectation NEW MARKET DEVELOPMENT New segment New territories New users With new competence Beyond current expectation DIVERSIFICATION On existing competence With new competence Beyond current expectation THEORITICAL STRATEGIES – PORTER ALTERNATIVES 1-COST LEADERSHIP COMPETITIVE ADVANAGE 2-DIFFERNTIATION 3- COST FOCUS 4- DIFFERENTIA MORE INFORMATION AVAILABLE ON YOUR STUDENT MODEL ASSESSMENT Assignment Remit Power point poster with 1500 words evaluation Working in pre-appointed teams, you are required to determine the present strategic position a given company(PIZZA EXPRESS) in casual dining industry making selected use of strategic models to enable analysis, (This analysis will later be used to guide your selection of future strategy.) Your analysis should focus on the firm’s internal and external environment, and include the firm’s present competitive position, within the competitive and remote environment, available resources, capabilities and core competences. This will entail the identification of the opportunities, and existing or anticipated threats, together with an evaluation of firm’s significant strengths and weaknesses. • Your analysis should evaluate the current strategic decisions made by the firm • Your analysis should appraise the actions undertaken by the firm to put the strategies into action. • A poster should be used as a support visual guide using the findings from relevant applied models to guide your discussion • Consideration should be given to the layout which should comprise a clear appealing and informative visual presentation o Models that have been selected by the group and used to generate your analysis and evaluation should also be accessible during the exhibition. (If the assessors require this.) What information is required to evaluate each generated strategies?  VISION – MISSION- OBECTIVES – STAKEHOLDER POWE/INTEREST  EXTERNAL AUDIT OUTCOMES – threats and opportunities analysis  INTERNAL AUDIT OUTCOMES - strength and weaknesses  PRESENT STRATEGIC Please see below table is a summary of each model, showing what each model is likely to identify and how each generated strategy should address this Please make sure your supporting evidences (information about the company) (pizza express) must be dated at least to 2015 MODEL TO USE MODEL What this model is likely to identify What the proposed strategy should include PESTEL Trends from the remote environment Demographic, economic or industry convergence FIVE FORCES MODEL Identify 4 factors. Which competitive factors presents threats and opportunities Depend on the threats and opportunities Threat of entrants = create barrier to enter Suppliers= backward integration STRATEGIC GROUP MAPPING Identify 4 factors Attractive of the industry, strategic spaces Reposition the firm against competitors. the requirements to move into new market CORE COMPETENCE Identify 4 factors Threshold competence – core competence Resilience of core competence, and optimise the CC. does the strategy allow for the continued development / renewal of CC VALUE CHAIN Identify 4 factors Relation between support and primary activities , value of the centre, value and cost relationship Areas of strength and weaknesses Value proposition Outsourcing opportunities STAKE HODER MAP Identify 4 factors Acceptability to stakeholders The support of skate holders ( repositioning – relate to implementation CULTURAL WEB Identify 4 factors Acceptability and risk aversion or propensity Cultural backlash ( implementation Culture clash is merger or acquisition ‘’LIFE FULLY OF LOUSY OPTIONS ‘’  May not be one perfect strategy  So don’t try to find it The task may require finding the least bad strategy {although this might suggest this is the time for the time to radically rethink their situation}  The strategies identified for evaluation could be generated from the SWOT  Remember to make sure what your discussing is a strategy  Select the pest options currently available to the firm (Pizza express) clearly identifying what are the issues associated with each of the strategies identified Where do we start form:-  This has to be from where the firm is to today (SWOT) should provide a clear strategic understanding of this position (these factors will also inform your SAF model) Keep an eye on the Elephant in the room Identify the most important strategic issues for Pizza express Seeking to identify the ‘’elephant in the room’’ factors the firm is attempting to avoid addressing  Having identified such issues a brainstorming approach to address this may be used The generated strategies:- - Can it make use of one the strength? - Can it overcome one of its weaknesses? - Can it use one of its opportunities? - Can it take action to control the threats? The strategic five - What business or businesses should you be in? - How do you add value to your businesses? - Who are the target customers for your businesses? - What are your value propositions to whose target customer? - What capabilities are essential to adding value to your businesses and differentiating their value propositions? IS THE EXISTING STRATEGY BROKEN? HOW DO WE KNOW? {See the model}  ARE THE KEY STAKEHOLDERS SATISFIED?  Need to consider at this point whether it is the strategy that is weak or the implementation poor – this is when the strategy is appropriate but not being followed through by the organisation  The existing strategy may not be broken, and should still be pursued but this must be justified against the generated strategies. HOW DO YOU KNOW THE FIRM HAS LOST OR IS LOSING ITS DIRECTION? SYMPTOMS OF DELINE AND FAILUR... (Not all likely to be present) - Falling sales ( any evidence) - Falling profitability ( any evidence) - High turnover of manager ( any evidence) - Lack of strategic thinking ( any evidence) - Reduced dividend ( any evidence) - Increased debt ( any evidence) WHICH OF THESE MIGHT THSES BE CAUSING FAILUR? DO THEY REQUIRE A NEW STRATEGY - Poor management and leadership - Neglecting the core business - Inefficient operation - Poor financial management - Inadequate financial control - Failure to compete effectively Screen out any early no –hopers that are highly unlikely to meet the objectives then:- Use success criteria for strategic options to cover the following tasks:- 1- A BRIEF IDENTIFICATION OF THE EXISTING STRATEGIES OF THE ORGANISATION 2- EVALUATION OF EXISTING STRATEGIES (using SAF mode) Suitability- Acceptability – Feasibility Propose one strategy for Pizza Express to implement Your conclusions must be firmly based on the organisations capabilities and the opportunities and threats that you identified in your earlier analysis Each individual will be questioned on the firms existing strategies. You will be expected to be able to demonstrate how these are clearly driven by their findings from their internal and external audits. Also how the SAF model demonstrates that these strategies have been fully evaluated. You are required to consider the actions and processes the firm should be putting into place to achieve successful implementation of their strategies. This should be fully supported through the identification of the forces that support the change and those that resist it. You should show evidence of the firm’s culture and stakeholding issues. Being with assessing the suitability of each strategy:- Is about whether (and how well) the existing or proposed strategy addresses circumstances (Threats and Opportunities) this is where consistency become important the same SWOT factors should be considered for each strategy reviewed - Does the proposed strategy address changes in the environment (T/O)? - Does the proposed strategy address changes in the firm’s capability (S/W) the stakeholders and the firm’s expectation? - How well does each generated strategy reflect the firm’s mission or the objectives, and the stakeholder’s needs? - The firm could of course consider changing mission, what are the implications of doing this? Then assess if the new strategy is acceptable Acceptability – addresses the expected performance outcomes (e.g. Risk and Return) will the strategy perform to the required level? Three questions need:- - Can it meet the expectation of stakeholders and associated dilemmas? - Can the firm accept the expenses, risk and potential unprofitability? ( This link back to the firm culture) Might the company need to change their culture? - Are there unacceptable consequences of doing nothing? (For example of not developing new product) in which case the unacceptability of a strategy might have to be faced to avoid collapse? Some criteria for considering acceptability:- - PROFITABILITY – consider the likely financial return on investment: ROCE the anticipated payback period and cash flow - COST BENEFIT – A wider assessment of cost/ benefit (incl. Intangibles) this is likely to present difficulties of quantification - SHAREHOLDER VALUE ANALSIS- what is likely impact on shareholder value the technical details often difficult to define - Financial projection- the form needs to consider the robustness of the strategy. Break – even analysis should be complete and the impact on gearing/ liquidity evaluate - STAKEHOLDERS REACTION – measure the political dimension( stakeholder mapping ) problematic as largely qualitative STRUCURE AND SUCCESS Will the structure need to altered for the strategy – how- this is the beginning of the implementation, if structure change is required and the what will the new structure look like STRUCURE – a key variable (normally thought about in implementation . Can create cost saving or synergy . Improved competitiveness can stem from appropriate and fluid structures - Difficult to disentangle structure from other variables such as culture, and system on performance - The traditional pyramid structure ( reporting and governing relationships ) is often an illusion rather than the reality of linkages within and outside the organisation - What is the reality of structure of the firm? This will reflect power relationships - Informal structure is often difficult to define but needs to reflect the requirements of the strategy - Structure often remains until it is required as response to a crisis DEVELOPING THE STRATEGY SELECTION CRITERIA CONSISTENCE – of approach in relation to each generated strategy this should be the purpose of the organisation: a prime test for evaluating and selecting strategies VALIDITY: of the data used in developing the option FEASIBILITY: - This is about where the firm is able to achieve this strategy - Does it have constraints – could be technical skills and finance etc If doesn’t have theses can it develop them? - Might constraints come from outside the firm? The response of competitors or co-operators - Is the management committed to the strategy can it bring its employees with it? Plagiarism Please note that this assignment represents your own individual efforts/contribution (for approved team assessments). UCB policy in case of plagiarism will apply References very important you required to use the academic resources that provide by the university Students must submit an individual Frontispiece together with their poster, supporting notes, research evidence and references by the deadline specified above. • Your team will need to verbally communicate completed analysis between team members and to the assessors, each individual should be able to discuss all aspects of the strategy • Subject Advisory session can be accessed for informal discussions and formative guidance