VP paper
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DownloadStrategic Plan to Revamp Justo Food Chains
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Introduction
As the strategic manager of an enterprise, one bears the role of ensuring that the plans of the venture are carried out in an articulate manner to guarantee profitability, survival as well as the growth of the business. Therefore, one has to perpetually research, revise, plan, define as well as update all the executions underway in the establishment. Therefore as the VP in the Strategic Planning department, I fully take the powers bestowed to my office by the company to advise on a way forward for Justo Food Chains to regain its equitable share of control of the market (Lobel, 2016, 2). Upon revision, several new dynamics will have to take effect to ensure that the venture moves forward in pursuit of profit. Therefore, I welcome the CEO Sir. Delaware to review, comment, criticize as well as offer additional insight into the following postulated Operation System for Innovation of how the company will increase its profitability as well as recap its former glory as an exemplary hospitality establishment (Smith, 2006).
Plan to push up the Top Line Revenue
The profit margin of a venture is dependent on the top line revenue whereby the business has to rethink on its way forward so as to increase sales. The venture Justo Food Chains has become so reserved in the commodities it offers and as such, it is left out in satisfying the new tastes in the markets (Lobel, 2016, 3). The venture has held faithful to the idea that the clientele base of the investment relies solely on the unique tastes in all its eatery joints across major towns in the market.
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However, the trend is slowly getting outpaced by the new demands of the clients (Lobel, 2016, 3). The venture has been in business for about 55 years and counting, therefore it means that there is a change in the generation the business serves.
Tastes and demands of clients have consequently changed over the same duration. Therefore, the original recipes used to prepare the food in the venture are overly inappropriate according to modern standards (Smith, 2006). There is need of revising the recipes upwards so as to fit within the demands of new clients. The firm as such needs to outsource the services of organolepticians who are familiar with cuisine tastes for reputable ventures across the US market (Smith, 2006). The fact that these are professionals is a surety that they will offer useful suggestions that will go a long way in ensuring that the venture steers back to former glory.
The venture as well has to consider extending its operations outside the borders of the country and as such, the management need to rethink the strategy to use in making sure that they capture and offer the exact requirements of the market (Lobel, 2016). The venture, therefore, needs to familiarize with the trends, tastes as well as cultures of other developed countries as its motherland. I suggest that the food chains got based in the USA the management should consider conquering more territory in calculated steps. The launch should be in markets that closely mimic the current US markets as well as trends (Smith, 2006). If Justo Food Chains is to expand the leaders should consider opening trial establishments in Canada more so in the two large cities that include Ontario and Kitchener as the population as well as the living standards will support the survivability of the venture in these countries.
The establishment became reserved and operated as a food eatery for a long duration of time. It should consider expanding its services to include those offered in taverns. It should, therefore, supplement its profit margins in that drinks works as complementary goods (Pettinger, 2011). In the current trends, any careful hotelier will note that drinks are taken more often as an accompaniment to a meal. Therefore, increasing drinks range offered far beyond the current soft drinks range will ensure that the clients are satisfied and that stay longer within the premises. In cases when the venture will not have ready food, drinks serve the purpose of substitute goods as well (Pettinger, 2011). They can be used as a solution when the clients are waiting for their favorite delicacy to be prepared (Smith, 2006). With such an approach the business is guaranteed to the satisfaction of customers and thus the reputation if the business it anticipated to soar.
Justo Food Chains backdoor offices as well happen to have a closed office plan. From studies conducted, it has illustrated to cause the delay in the way information flows within the floor. A legitimate complaint from a customer usually takes about 3.4 minutes to be passed across the management chain and it as such causes delay in the execution of the feedbacks (Smith, 2006). Such a delay is counterproductive in that it has rendered the business inefficient considering the line of industry the venture is operating. An open office is recommended to ensure that the clients walk home satisfied. When customers have their issues attended in a shorter duration of time, they tend to feel a sense of importance. As such they tend to be repeat customers who will more than often bring their friends, families, and peers to the premises thus guaranteeing increased satisfaction (Pettinger, 2011). Such a move will as well ensure that customers get the value for their money and the approach to that will ensure the survival as well as branding of the venture reaches to a great height of success.
The venture as well has to change its chronic use of print media as the sole mode of advertisement partly. It has a smaller audience, and it can become associated with the reduced levels of profit margins. In the modern digital world, newspapers and periodicals seem to get outpaced by the insurgent of new market avenues (Smith, 2006). Digital marketing has its space, and it has integrated with the most basic of gadgets. It has as well covered a long array of technologic platforms, and as a result, it has led to an expansion of resourceful mediums in which ventures can reach their audience (Pettinger, 2011). As such ventures such as Justo Food Chains who are yet to tap into the full potential of the digital space are still lagging behind. In the past three years the technology levels have reached an all-time high, and as a result, it can become partly blamed for the dwindling profit margins of the venture in the three years loss window recorded.
The venture as well needs to add to their catalogs fast food chains due to their popularity in the developed world. They as well have a tendency to have reduced sophistication in setting up hence they are little cost concerning establishing as well as their maintenance (Pettinger, 2011). They as well tend to bypass the seasonality associated with the big restaurants. If all other conditions will be held constant, there is the likelihood that the venture could predict the income levels and which from the Strategic Planning Office, it could go a long way in aiding in settings up of attainable goals with subsequent years (Smith, 2006).
The venture as well needs to consider the reshuffling of some top management employees rather than persist on the static nature of employment that has dictated business operations in the venture for more than five decades (Lobel, 2016). It will welcome change and open doors for improvement. The fact that everyone at the management level will encounter new challenges, they are more likely to offer better results that if they are to remain in their current office settings. They will as well be cautious never to run the venture into deeper losses since their stakes survival of their working for Justo Food Chains highly depend on their output in the venture (Lobel, 2016). They will as well have a different perception of operation basing on the culture they will meet in their newer environment that will cause them to work in a move to create change within the venture that could guarantee satisfaction as well as souring of profit levels within the enterprise.
There has been a setback in the operations of the company for quite lengthy durations in the premises of Justo Food Chains, and it can become tied to the aired setbacks. Therefore, the best way forward for the welfare of the business would be to include the offered suggestion sin the creation of the manifesto to follow upon the sitting down of the board of directors. It will be a useful move that will aid in countering the current negative trajectory regarding profit that could have been affecting the well-being of the venture.
References
Lobel, C. (2016). Food in 19th-Century American Cities. Oxford Research Encyclopedia of American History, [online] pp.1-4. Available at: http://americanhistory.oxfordre.com/view/10.1093/acrefore/9780199329175.001.0001/acrefore-9780199329175-e-281 [Accessed 24 Nov. 2016].
Pettinger, T. (2011). Different types of goods – Inferior, Normal, Luxury | Economics Help. [online] Economicshelp.org. Available at: http://www.economicshelp.org/blog/790/economics/different-types-of-goods-inferior-normal-luxury/ [Accessed 24 Nov. 2016].
Smith, H. (2006). What Innovation Is: How Companies Develop Operating Systems for Innovation. [online] The Triz Journal. Available at: https://triz-journal.com/innovation-companies-develop-operating-systems-innovation/ [Accessed 24 Nov. 2016].
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