vehicle
6.1 Short- Term And Long-Term Goals
Short-term:
1. To increase in net income by 20% in China within next 3-5 years
2. To convert the Food atrium business into a star
Long-term:
1. To continue gaining brand and market presence in key market in Asia Pacific
2. To maintain strong vertical integration
3. To pursue international expansion across the world
Stern, C.W. and Stalk, G. Jr. (1998). Perspectives on Strategy: From the Boston Consulting Group. London, England: John Wiley and Sons.
Hindle, T. (2012). The Economist Guide to Management Ideas and Gurus. London, England: Profile Books Ltd.
Vehicle (Competitive strategy and international expansion)
i) Business Level Strategy (competitive strategy)
Incorporating Porters generic strategies, BreadTalk can adopt the differentiating and cost leadership.
For differentiating strategy, BreadTalk can focus on creating trend setting products and new food and beverage concepts to retain consumer excitement, keeping this the core differentiating strategy. Investment in research and development would boost end quality product. Based on BCG’s experience curve (Stern and Stock, 1998) the more experience gained would thus lower cost of production (Hindle, 2012). This would then allow BreadTalk to attain cost leadership and lower buyer power as there are very little big companies who can compete based on low prices and high quality product produced by them.
For low cost leadership strategy, BreadTalk can firstly redesign its workflow process for all industry it is in. For example, shifting main kitchen or headquarter to a centralized location to improve operational efficiency. Next, BreadTalk can adopt technology to minimize labour cost and increase efficiency and productivity. Lastly, BreadTalk can consider combining purchasing operation with all its businesses in all industry to increase bargaining power and lower cost. ii) Corporate Level Strategy- International Expansion
Method
Implications
Verdict
Short-term:
1. To increase in net income by 20% in China within next 3-5 years
2. To convert the Food atrium business into a star
Long-term:
1. To continue gaining brand and market presence in key market in Asia Pacific
2. To maintain strong vertical integration
3. To pursue international expansion across the world
Stern, C.W. and Stalk, G. Jr. (1998). Perspectives on Strategy: From the Boston Consulting Group. London, England: John Wiley and Sons.
Hindle, T. (2012). The Economist Guide to Management Ideas and Gurus. London, England: Profile Books Ltd.
Vehicle (Competitive strategy and international expansion)
i) Business Level Strategy (competitive strategy)
Incorporating Porters generic strategies, BreadTalk can adopt the differentiating and cost leadership.
For differentiating strategy, BreadTalk can focus on creating trend setting products and new food and beverage concepts to retain consumer excitement, keeping this the core differentiating strategy. Investment in research and development would boost end quality product. Based on BCG’s experience curve (Stern and Stock, 1998) the more experience gained would thus lower cost of production (Hindle, 2012). This would then allow BreadTalk to attain cost leadership and lower buyer power as there are very little big companies who can compete based on low prices and high quality product produced by them.
For low cost leadership strategy, BreadTalk can firstly redesign its workflow process for all industry it is in. For example, shifting main kitchen or headquarter to a centralized location to improve operational efficiency. Next, BreadTalk can adopt technology to minimize labour cost and increase efficiency and productivity. Lastly, BreadTalk can consider combining purchasing operation with all its businesses in all industry to increase bargaining power and lower cost. ii) Corporate Level Strategy- International Expansion
Method
Implications
Verdict