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Table
of Contents
 
1.      Introduction. 1
2.      Company Fundamentals. 1
2.1.       Mission. 1
2.2.       Vision. 1
2.3.       Objectives. 1
2.4.       Positioning. 1
2.5.       Core Competencies. 1
3.      Strategic Analysis. 1
3.1.       SWOT Analysis. 1
3.2.       PESTEL Analysis. 1
3.3.       Market Competition. 1
3.4.       Strategic Planning. 1
3.5.       Competitive Advantage. 1
4.      The Future of the Company. 1
5.      Conclusions. 1
6.      References. 1
 

 

 

 

 

 

 

 

 

 

 

 

 

1.   
Introduction

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In the
current globalized, social and economic environment, competition between
businesses is extremely tough and their outside environment is proving to be
quite unstable. People today experience a period of global economic recession
with dramatic changes across the spectrum of structures and activities, changes
in how businesses operate, and how the whole nation recovers itself
economically. The outcome of this global situation is the creation of a
negative climate and generalized insecurity in all aspects of entrepreneurial
activity. Based on these parameters, Greece is observed to have been
experiencing dramatic developments. The uncertainty that is being created
referring to the outcome of these changes in the Greek business and
organizational world is currently an official parameter of Greece’s everyday
life. Changes in the country’s economic, political and social environment result
in changes in buyers’ purchasing power with a direct impact on the financial
performance of the businesses. The future indicates that only companies that
have managed to balance the strengths and weaknesses of the internal
environment with the emerging opportunities and threats from the exterior
environment will become the winners, thus gaining lasting competitive
advantages during the recession.

Today, more
than ever before, there is a clear need for companies to develop strategic
planning schemes to make full use of available resources and new environmental
opportunities. Through their strategies, companies are coping to the new
circumstances successfully and according to their needs in such a way that they
remain viable, profitable and exploit their competitive advantages with
significant benefits. Strategic management based on the business environment,
both externally and internally, is a comprehensive and continuous process of
management that aims to formulate and implement effective strategies. In the
midst of a difficult economic and financial crisis, where assets are being
undervalued constantly, strategic management is an important factor for
achieving success from the side of any organization as it tries to find answers
to the basic question of how is competition for survival and prevalence in the
present going to create the foundations for a successful course in the future.
Based on these parameters and theoretical points, this paper will examine the
most essential strategic characteristics of Goody’s Company. The Parent Company
of the Group and the owner of the trademark. Goody’s has its headquarters in
Thessaloniki. It is a company of restaurant services and is active in the
restaurants market of fast service. At this point it should me mentioned that  Goody’s is the parent a company of a number of
companies (Goody’s restaurants, Flocafe espresso bars, etc.) and together the
companies are the Goody’s group. This paper will include the strategic analysis
of the parent company Goody’s SA in relation with the Goody’s restaurants.

 

 

 

 

 

 

2.   
Company
Fundamentals

 

2.1.          
Mission

 

Mission of
Goody’s is the identification and correlation of its brand name with the
production and distribution of high quality and safety flavor materials within
the consciousness of the customers, which will ensure the successful course of
the company both in the Greek and the international market. More importantly,

 

 

2.2.          
Vision

 

The vision
of the company is to facilitate the consumer is stressed within the daily life because
of the time and the cost of food, offering at the same time the solution of a
“fast” and yet quality oriented healthy food. Vision of the company
is to introduce the fast, but healthy and qualitatively cooked ‘fast’ food,
which is also costed in a very affordable price and in the future if the
economic data and facts allow it, the company will expand itself furtherly to
other, more isolated markets of Greece and Europe.  

 

 

 

 

2.3.          
Objectives

 

In
particular, the company’s main objectives are:

·        
Excellent
food in a clean and friendly environment, served fresh and hot, with speed and
precision.

·        
A
new, non-home, eating experience for the consumer himself, and for his family.

·        
Variety
of products and innovations in the menu, as well as in the operation processes
of the restaurants.

·        
Establishments
in carefully selected locations, which are being continuously upgraded and
restructured while providing facilities and safety, especially for children.

·        
To
enable employment and business investment, to the largest number of Greek
workers and entrepreneurs respectively.

·        
Increase
the number of Greek suppliers that the company collaborates with, but based on
their comparative advantage.

·        
Train
staff at all levels of the company.

 

2.4.          
Core
Competencies

 

The core
Competencies of Goody’s are expressed by the will of the company to create and
maintain good relationships between its associates whether they are employees
or beneficiaries, or contractors. At the same time, each year there are
organized internally Conventions of the Goody’s chain, where all its employees
are involved as well as the managers of the stores. Goody’s recognizes and
rewards annually the efforts of its people to achieve the best possible result
in all areas of operation and consumer service. Furthermore, the basic core
competency  of Goody’s is expressed in
its policy to offer a restaurant with high quality nutritious food, set served
warm, in a clean and friendly environment. It is also expressed with respect to
local habits as well and with the particular sensitivity it shows for children
with the offer meals specially designed for them as well as through special
creation landscaped spaces and playgrounds for their entertainment.

 

 

3.   
Strategic
Analysis

 

3.1.          
SWOT
Analysis

 

The
strongest point for the company is the combination of quality – quick and at
the same time economic food. These characteristics also create a
differentiation from direct competition. It also appears that the economic
crisis and the uncertainty prevailing in the country’s market can be a threat
but also an opportunity for the growth of the company within the fast-service
industry, since in times of economic downturns, the consumers’ tendency is that
low cost products and services are preferred more.

 

 

 

 

 

 

 

Strengths
 
·        
Quality of products.
·        
Low cost products.
·        
Low cost of raw materials.
·        
Qualified human resources.
·        
Socially accepted company.
 
 

Weaknesses
 
·        
Lacking brand loyalty.
·        
Part of products also offered from different restaurants.
·        
Turnover of employees.
·        
Not many seasonal products.
 
 
 

Opportunities
 
·        
Preference of healthy fast food.
·        
Financial crisis, low cost food preferences.
·        
Fast paced life for customers.
·        
Increase in profitability of restaurants.
 

Threats
 
·        
Financial crisis influenced currency.
·        
Local competitors.
·        
High competition.
·        
Decrease of consuming power of customers.

 

 

 

3.2.          
PESTEL
Analysis

 

PESTEL analysis
indicates some of the most important factors that are perceived to define the
way that the economic and social reality is being shaped into. These factors
are the political, the economic, the social, the technological, the
environmental and the legal ones.

As far as
the political framework is concerned, at the number ten countries which over-burden
citizens and businesses with taxes, insurance contributions and VAT is Greece,
based on the relative ranking of the international magazine “Forbes”
as published. Between 50 countries from all over the world, the country of
Greece occupies the 10th position in terms of the sum of the maximum rates of
taxation, insurance contributions and of value added tax imposed on natural and
legal persons. Additionally, there is a lot of political instability observed
in Greece during the last years, especially since the beginning of the
financial recession. Therefore, the company of Goody’s needs to deploy its
strategic planning according to the possibility that rather sooner than later,
the political scheme in Greece will change again with tax oriented consequences
for the company.

The
economic framework of Greece is mainly determined by the lack of expenditure
power from the consumers. This is a result of many different factors, such as
the political instability mentioned above and the insecurity of the customers,
who save their money to spend in better days to come, when their money has more
consuming power. The available purchasing power in an economy depends on
income, prices, and prices savings, debt and creditworthiness. Businesses need
to pay particular attention to the major trends in income and in the way which
the consumer spends his or her income. In the case of Goody’s, this situation
has resulted in the increase of demand for fast food products for the whole
industry, as the customers try to satisfy their needs with cheaper solutions,
such as the fast food products.

The socio-cultural
environment is related to all the values, beliefs and symbolic concepts that
are active within the population that surrounds the company of Goody’s and has
a significant impact on behavior the consumer. Within this frame, it is not
only the material elements that should be identified given a socio-cultural
environment characterized by a specific level of know-how or a given economic
structure of society that should be taken under consideration, but also the identification
and analysis of those elements of social-cultural environment that are less obvious
and vaguer. Such elements are attributed to various institutions, such as the
importance of woman in the given society, the role of the mother in it, the
importance of religion, the role and importance of the arts, sports, aesthetic
perceptions or the symbolic meaning of the different colors, language barriers,
cultural traditions and taboos. As far as the fast food industry is concerned, it
should be mentioned that the modern way of life and the fast rhythms that
characterize the current era has led to an increase in demand for fast food
meals.

The
technological environment contains the technological trends or technological achievements
that take place out of the market and may have a significant impact on the business
and its strategy. These trends can to be opportunities for businesses that have
the opportunity to exploit and effectively import them into their processes. However,
a new technology may also be an important threat to a business if the business
does not adapt to the new technology. More specifically, the company uses high
technology in terms of cooking and warming up the food. This contributes to
quick and efficient customer service. The production equipment of the company
includes: Batch production line, automatic production machines and salty
packing, sandwich production line, standardization line and food packaging,
storage cooling chambers, freezer and dry cargo as well as other auxiliary
equipment. In the underground facility of Goody’s, where their offices are
housed, there is a regular Goody’s shop equipped (educational kitchen) that
works for teaching purposes.

The
environmental framework includes all the processes that are being conducted by
the environment and the competitors of Goody’s company in order to protect the
environment and the nature. This includes recycling, processes that save raw
materials and energy saving programs. Goody’s company has conducted the
environmental oriented processes tha are described below:

 

1.       A collection of used frying pans is
made available to the central unit of GF ENERGY, the most modern biodiesel
production plant in Greece, with legally, safely and ecologically rights. Especially
during 2016, 219,000 kg of Oiled Oils were collected from the Group’s stores.

2.       Recycling is a central priority, all
the people in Goody’s voluntarily participate in recycling programs aimed at
saving the basics materials they use on a daily basis. Especially in 2016 over
135 tons of paper, 43 tons of wood, 3.5 tons of metal, 33 tons of plastic and
280 pounds of glass were recycled by the company.

3.       Goody’s has saved energy through
adopting in practice the principles of saving traditional sources energy in all
its restaurants as well as in some central production units where natural gas
is being used.

 

 

3.3.          
Market
Competition

 

3.3.1.      Porter’s Five Forces

 

The
competitive environment of each business is determined by following forces:

·        
The
threat of entry of new businesses.

·        
The
bargaining power of the suppliers of the business.

·        
The
negotiating power of the buyers of the business.

·        
The
threat from substitute products.

·        
The
intensity of competition between the existing ones businesses in the industry.

These
forces determine its intensity and nature competition within a sector but also
the strategies it can generate to hit this competition. Through this analysis,
the business gathers a set of helpful elements for its strategy plan. It
determines the way and the structure of the industry which is being influenced
by competition, which in turn determines and the profitability that the
business can achieve. Consequently, through the structural analysis of the
industry, it is possible for a company to appreciate the overall attractiveness
of the industry. It is also possible to predict the forces which might change
the industry as whole. In the lines below, the five forces analysis for the
fast food industry in which Goody’s belongs to will be analyzed.

The entry
of new businesses into the sector results in increasing competition between
existing and new businesses. As it was also mentioned earlier, the industry is
consisted of a large number of small family businesses with a small production
volume and a small number of large, high-volume restaurants production. With
regard to a small family business there are not particularly obstacles of
competition entry within the industry.

The most
important suppliers of the company are already owned by the Goody’s group.
Therefore, there is no question of bargaining power. THE Goody’s consciously
controls most of the companies- suppliers and this is  a major part of its policy. The purpose of the
company is to control the quality of the food and to minimize the total
purchase cost. Maintaining good relationships with all the rest of the partners
is the primary objective of the company. For this reason, Goody’s strives for
friendly relations and the spirit of good cooperation even with suppliers who
do not  belong to the Goody’s group, some
of which are international companies with a large bargaining power, such as Coca-Cola.

It is a
fact that a company’s customers can force it to reduce prices or require better
quality at the same prices. The number of buyers of Goody’s products is large
and the quantity that each customer purchases is very small in relation with the
total quantity offered. This has the consequence of negotiating power of buyers
being not too great. At this point, it is worth mentioning that in the case
that groups could be created buyers with common features would then be able to
increase their negotiating power.

The
intensity of the threat of substitute products and their importance for the
realization of the competitive environment of the business depends on specific
factors. For example substitute products of burgers offered by Goody’s can be
sandwiches, souvlaki and pizza. Here it is worth noticing that the policy of
the company is to reduce to minimal risk from substitute products. Therefore,
the company did not take long to introduce the right products within its menu,
such as salads and sandwiches. At the same time, the company recently introduced
the souvlaki Pita-Pita, to earn market share from the market share of the Greek
traditional restaurants.

The company
has mostly as competitors the small family businesses and large businesses
chains such as McDonalds. Goody’s at the moment, is the dominant business in
its field and this is why it will benefit more from the expansion of the
overall market of fast food. At this point it is worth mentioning that Goody’s
can succeed in expanding the market by looking for new users, new uses and more
use of its products. New users may be people who for some reason are not familiar
with the products or avoid them for reasons such as prices or poor quality. To
attract these customers, the company can introduce new advertising campaigns, which
will highlight the high quality of its products or apply an affordable pricing
policy of the already existing ones.

 

 

 

 

 

 

3.3.2.      Important Competitors

 

3.4.          
Strategic
Planning

3.5.          
Competitive
Advantage

4.   
The
Future of the Company

5.   
Conclusions

6.   
References

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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