PESTLE and 5 Forces Analysis of Slices
The aim of the report is to provide the strategy recommendation to the company for the new strategic changes that company would benefit from. This assessment is based on the first part of the report and also on the case study that is “Slices: what is next?”. The first part of the assessment has demonstrated analyses on an organization in an advanced and sophisticated manner. Moreover, the assessment includes the areas for the strategic changes that will be beneficial and effective for Slices.
The current strategies that are discussed in the previous assessment with the help of the PESTLE analysis and Porter’s five forces tool of the management. Over here, the PESTLE analysis reflects the analysis related to the external factors that can create an impact on the working of Slices in the Market of UAE. On the other hand, Porter’s five forces tool has been used to analyze the competitiveness in the market (Kotler, 2015). The analysis reflects the strategies that are formed by the company to overcome the external factors impact.
Slices aim for meeting the very standard related to the food and nutrition due to which they are able to meet the requirement of the government in the country which makes provide it an excellence in establishing the strong ground. The perfect pricing strategy of the company helps them in making the revenue in the first year of the establishment with the support of the buying power of customers (Lovelock, 2011). Considering the changing needs of the market, the company started offering their services in the school which was one of the positive current strategies as because of this the customers has responded positively towards the product and service of the company. Though, the technology of the company is noticed to be not up to mark because of the decisions of the company rely on the business strategies instead of the technology. Therefore this reflects that there is a need for the improvement in the technology of the company (Jelassi, Enders and Martínez-López, 2014).
Apart from this, considering the legal regulations of the country the Slices Company always follow the legal laws like consumer law, labor law and safety standards of the products that are offered by the company. The company always ensure that all the operations were conducted after considering the surrounding environment of the country because environment directly creates the impact on the strategies of the company.
Core Competencies Analysis of Slices
The intense rivalry in the market of Abu Dhabi has made it difficult for the company to for strategies in the effective way that can affect the working of the company. The companies like Bord Eau, Li Beirut Restaurant, Villa Toscana and many others give strong competition to Slices in the UAE market. The company believes that suppliers are the one due to which the company is able to achieve its objective in the market. The strategy of the company for the suppliers is to create the effective relationship with the suppliers or vendor for the quality products. The major suppliers that are present in the market of Abu Dhabi include Raw Coffee, Jam, Milk & Honey organic outlet and many others (Jelassi, Enders and Martínez-López, 2014).
The potential buyers present in the market are purchasing the products at the affordable prices and the company is able to offer the products at the affordable prices because of the stable inflation rate in the market of UAE. Though, the market of UAE is a substituting market in which the customers can easily switch from one seller to another. Moreover, many other firms can also find the Abu Dhabi for the appropriate for the expansion of the business which is one of the leading threats to the company (Jelassi, Enders and Martínez-López, 2014). This can be said from the overall analysis of the company that they might face the problems and challenges in managing the consistency in their performance.
Considering the overall analysis, it is clear that it is high time when the company needs to form new strategies in the market which will help in removing the weak points.
The new strategies of the company will include the strategies that can help the company in removing its weakness. The major improvement that the company needs to bring is the technical aspects. This is the fact that Slices Company is weak in terms of the technology due to which they might not be able to meet the objective. The rise in the use of the technology is essential for the company and for this the company should hire an expert that will help them in making the effective strategies for the e-business (Casadesus-Masanell and Ricart, 2010). Slice needs to improve its advertisement and communication with customers for which they need to form the e-business strategies that help them in promoting the products and services offered by the company.
Strengths, Weaknesses, Opportunities, and Threats of Slices in Abu Dhabi Market
A roadmap or route map mainly reflects the actions that the company can take to achieve the objective of the business. Businesses need a framework for guiding the mobilization of an organization around its strategic plan. In simple words, a roadmap enables everyone in the business to clearly understand every action and the decisions that need to make for accomplishing the objective (Chang, 2010). Slices can make use of the roadmap for the implementation of the e-business strategy.
E-business is essential for the Slices as there is a rise in the online business because of the increase in the use of the online services (Reynolds, 2010). In the current busy life, most of the people make use of online mode through which they can get the products easily at their homes. Moreover, people who do job prefer to eat healthy food at home on a daily basis as they don’t like to visit out. Considering the needs and demand of the customers, restaurant owners have started taking the orders and delivering them on time through online. Therefore, slices need to introduce the online order facility with the delivery which is one of effective e-business strategy. This strategy will accomplish the many other objectives of the company. The below given is the roadmap that is used by the company for the implementation of the e-business strategy in their business (Jelassi, Enders and Martínez-López, 2014).
The below given is the description related to each element of the e-business strategy implementation plan from the perspective of the slices company.
Vision- The vision of the slices is to become the leading restaurant that offers healthy food not only in UAE but also across the world.
Objective- The objective of the company is to get recognition at both national and international level because the company is still new. This will be possible only because of the e-business as the company should generate their online presence in the market which will help them in achieving the objective of the company.
Value creation
The value creation includes the value that Slices offers to its customers while dealing online with the clients. The value that slices believe in offering to their customers include: –
- Fresh and highest quality product: – Slices are confident about the quality of the products that they offer to their customers. Most of the suppliers of the product are local farmers and the fresh food distributor that provide the raw materials on the daily basis to the outlets of company. The company will ensure that they always deliver the fresh food to their customers.
- Ensure the excellent services: – Slices believes in offering the excellent services to their customers by taking the timely order and delivering the order on time. Moreover, the company appoints the trained and skilled employees because in delivering the services effectively employees of the company play a vital role.
- Supplier network and relationships: – Company believes in maintaining the strong relationship with the suppliers or vendors in the market as this is the effective way to ensure the control of the business over the products. Moreover, this relationship and network will contribute in delivering the effective services in online business (Amit and Zott, 2012).
Target segment
Target segment for the slices is the group of customers within a business serviceable available market that the company has decided to aim its marketing efforts towards. The target segment of the company is a demographic segment which includes the factors like age, income, education, family size and many others (Lee and Carter, 2011). Considering the new strategy of the online order, the company need to add to the customer segment. Slice will further target the people of the different age group who go job and are a bachelor. The major emphasis will be on the people with the age group of 20-35 years with the income group of middle and high. This customer segment has been selected because it is found that people of this group perform more of online business transactions. The value proposition that the company offers to this target segment is healthy and on time food delivery of the online order.
Improvements in Slices’ e-business Strategy
The company also targets the children’s of all ages but mainly under the age of 5 because they are anemic. Therefore, the value proposition that they offer to the children is healthy and fresh food & diet. This is the effective way to which they can develop the healthy habits from childhood.
Privacy, ethical and legal issues
Slices will consider the issues related to the privacy, ethical and legal while implementing the e-business strategy that is online order of food. Talking about the privacy issues, the online transaction needs the details of the customers without which it is not possible to perform the online transactions. The company will ensure that they take care of customer’s personal data, details of customer’s payment cards, social security network software in the restaurant and many others (Gross, 2018).
Moreover, slices will perform its operation ethically which will help them in treating each and every customer equally important without any discrimination (Greenaway, Chan and Crossler, 2015). Along with this, the company also perform the ethical behavior with the employees of the company as this is one of the most important elements that need to consider by the Slices Company. Legal issues that will be taken care by the company is meeting the standard of the food offered by the company, copyright, and patent issues, consumer rights, no discrimination among the employees of the company (Cross, and Miller, 2011). Generally, implementing the online order strategy leads to the discrimination among the employees of the company.
External partners
The company will implement the e-business strategy with the external partners. The company is based on the partners so Slices will share the details related to the online order system in UAE with their all the partners. Moreover, the company can involve their current and potential customers as they can provide the company feedback for their preference which will help the company in the effective implementation of the strategy.
It is very important for the company to involve the suppliers while implementation of the strategy because they are the one who supplies the raw material to the company. The online order will only be possible if the suppliers of the company will be able to provide the fresh products to the Slice on time. Therefore, all these external partners contribute to the implementation of the e-business strategy.
Organisational model
Currently, the company is following the functional organization model. The organizational model for the slices company will be same but it will add one more functional manager that is for the technology because the implementation of the e-business strategy needs the technology (Pedersen, Gwozdz, and Hvass, 2016).
Roadmap for E-business Strategy Implementation
Revenue and cost model
Slices will make use of the e-commerce revenue model; this is a plan for generating the revenue for an online business (Veit, et.al, 2014). This model is quite similar to the brick-and-mortar businesses as they allow the customers to reach across the globe and provide the different methods through which they can generate the sales of the company.
Slices Company is in the initial stage in UAE due to which the company should make use of the Full cost model or Absorption cost method (Drury, 2013). In this model, the company can measure the lowest price on which they can offer the products to the customers. This model distributes both the fixed and variable costs to the cost bearer as the cost in the business is distributed on the basis of variable and fixed cost.
These two models help the company in deciding the prices of the products that the company can charge for online order and delivery. Along with this, the company can also make the estimation related to the revenue that the company can earn with the implementation of these strategies.
Strategy alignment
The strategy alignment is the alignment of the physical strategy of the company with the e-business strategy (Slack, 2015). The previous strategy of the company is related to the restaurant where the company offers the healthy food to its customers. Slices can conduct the online order placing strategy from its restaurant only same as like other companies do such as McDonald’s, Pizza Hut and many others. Therefore, the company can easily deliver their products from their restaurants only.
The implementation of the new e-business strategy is very difficult for the company. The company might face many issues in the time frame of next 6-12 months. Therefore, it is recommended to the company to perform the activities step by step which will help them in accomplishing the goals of the organization.
The analysis reflects that the company is up to the mark at technology due to which they might face the problem in the implementation of the e-business strategy. It is recommended to the company to hire the technology advisor who can give the proper advice to the company that contributes in the accomplishing of the objective of the company.
The success of the strategy of the introduction of online order placing is one of the most critical views of the company. Therefore, it is recommended to the company promote the service that is introduced by the slices for the betterment of their customers. The effective promotion of the service is the only way through which the company can make the leading place in the market of UAE. Moreover, for the promotion of the business, the company should make use of the online channels that are very effective for promoting the products in the market.
Conclusion
In the end, it can be concluded that the strategies formed by the slices company in the current business environment is effective but now it’s a high time for the company to make e-business strategies that help them in fulfilling the vision of the company that is to become the leading company. The report has discussed the new e-business strategy that should be introduced by the company that is the introduction of the facility of the online order of the products. The implementation of the strategy reflects how they can bring the strategy into the existence.
References
Amit, R. and Zott, C. (2012) Creating value through business model innovation. MIT Sloan Management Review, 53(3), p.41.
Casadesus-Masanell, R. and Ricart, J.E. (2010) From strategy to business models and onto tactics. Long range planning, 43(2-3), pp.195-215.
Chang, H.L. (2010) A roadmap to adopting emerging technology in e-business: an empirical study. Information Systems and E-Business Management, 8(2), pp.103-130.
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Greenaway, K.E., Chan, Y.E. and Crossler, R.E. (2015) Company information privacy orientation: a conceptual framework. Information Systems Journal, 25(6), pp.579-606.
Gross, B. (2018) Basic Privacy Issues in the Workplace [Online]. Available from: https://www.allbusiness.com/googles-spying-activity-5-data-security-lessons-for-businesses-14701305-1.html [Accessed on 4th April 2018]
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Pedersen, E.R.G., Gwozdz, W. and Hvass, K.K. (2016) Exploring the relationship between business model innovation, corporate sustainability, and organisational values within the fashion industry. Journal of Business Ethics, pp.1-18.
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