Strategic Management Value Creation

Question: Discuss about the Strategic Management for Value Creation. Answer: Introduction Business strategy helps in creating plans for the achievement of goals and objectives of a firm (Henry, 2011). Paradise group is Singapore based chain of restaurants(Paradise Group, 2017). These restaurants specialise in good ambiance, food and creating a feel of Singaporean brand and culture. Therefore, a sound business strategy for the company would help in assessing its strengths and weaknesses. Paradise group is a known chain of restaurants and has a reputation of serving good food with proper ambiance(Paradise Group, 2017). However, the firm should not be lax in its business strategy. It needs to improve and implement its strategic planning process. Strategic planning gives orientation to the firm to achieving its objectives. For proper strategic implementation a firm should have a specific vison and mission statement which propels the firm ahead (Hill Jones, 2012). Vision of Paradise group is to become an international chain of restaurants offering oriental cuisine(Paradise Group, 2017). The mission is to provide customer value and customer satisfaction. The firm is doing well in creating a niche for itself in oriental cuisines(Paradise Group, 2017). However, for achievement of its vision of becoming an international diners choice, the firm needs to assess its strengths and weaknesses (Hiriyappa, 2013). Strength of the firm is the ambiance of its restaurants and the quality of service. This needs to be further enhanced through removing weaknesses like inadequate employee training. Increasing tourism to Singapore from across the globe is big opportunity for becoming international dinars favourite. However, competition is also equally growing. Therefore, the firm should aim on assessment of competitors strategy (Steiner, 2010). Major competitors of paradise group are Tung lok Group, Ding Tai fung and Crystal jade group. All these restaurant chains specialise in oriental cuisine and try to serve high quality food(Paradise Group, 2017) Tunglok group is one of the leading restaurants in Singapore and has a well trained staff and interior decoration to impress the customers. Ding tai fung has won various awards in customer service. Crystal jade has a much larger international presence and has its restaurants in Hong Kong, Indonesia and some other countries (Timeout, 2017). Paradise group needs to incorporate proper training of employees to match the competition(Ress Paul, 2014). It also has to think about further expansion globally. BCG matrix classifies a companys business units into four categories based on its market growth and market share (Thompson, 2010). Paradise group has to assess whether its restaurants or menu items have become dogs. Disinvesting such menu items is important. The competitors of Paradise group like Tuglok group or Cristal Jade have global standards restaurants and they discontinue menu items which show declining trends. Similarly paradise group also needs to disinvest such items. Paradise group needs to analyse whether the new restaurants opened by the firm which show question mark type of trends need to be developed further or divested(Ferrel, 2012). Paradise groups major competitor Cristal Jade opened restaurants in neighbouring countries which had initially low growth rate but with investment the growth rate improved. Paradise group has to use similar strategy. Paradise group has to analyse which of its restaurants are attracting more customers and further invest in such restaurants. The restaurants in main Singapore have traits of stars. Similarly the city restaurants of Cristal Jade and Tunglok have high growth rate and market share. Further investment is needed in such restaurants. Paradise group should assess its highest selling menu items and restaurants with maximum cash generation and try to generate maximum cash from them. Certain oriental cuisines are extremely high selling in these restaurants and maximum cash generation should be sought from them. Through this analysis company can foresee which of its question marks and stars have potential of becoming a cash cow. Paradise group has a potential for sustained and long term growth because of its good menu and trained staff however, the firm needs to improvise and make long term strategic changes in order to become an international diners favourite(Henry, 2011). Following are some suggestions which the firm should follow for this objective to be achieved by 2027. Paradise group needs to make a global impact to become global diners favourite by 2027. For this purpose the firm can use various market entry strategies which will help it in reaching new markets. There are various methods of market entry which can be adopted. These are mergers acquisition or joint ventures (Bamford West, 2012). The most effective and easily executable option for Paradise group will be joint venture where it needs to join hands with other resurrects in the country it aims to enter. The firm can also use substantive growth strategy to gather more market share within Singapore and outside. Growth can be achieved by finding new markets to sell the products (Bamford West, 2012). For example, the firm can target kids and youth by having youth and kids specific entertainment options available in the restaurants. The firm can also use horizontal integration and acquire other restaurants in Singapore or other countries to expand its global operations(Bamford West, 2012). This will help in global recognition of the Paradise brand. Another strategy that the firm can use to become a global chain by 2027 is to use related diversification(Hiriyappa, 2013). Through this strategy the firm can extend its product line and enters into similar areas (Ferrel, 2012). Paradise group can start selling readymade food products in addition to selling the menu items. The firm can extend its cuisines to appeal more to global customer so that it can easily achieve its objective of becoming a favourite place of the global customers. The firm can also incorporate activities which appeal to tourists more. As Singapore is a global tourist destination, the firm can include events which highlight Singaporean culture so that customers can enjoy a feel of Singapore. Moreover, Paradise group can extend its services by offering supermarket services and provide off the shelf eatable products to its customers. Therefore, with proper strategic planning, Paradise group can become a global restaurant chain with excellence in customer service and delivery. Conclusion An understanding of business strategy can help Paradise group in evaluating the various strategic choices it has. With the help of business strategy the firm can assess its growth potential, competitors and external environment. This will help the firm in achieving its organisational objectives. References Bamford, C. E. West, P. G., (2012) Strategic Management : value creation, sustanability, and performance. New York: Cengage Learning. Ferrel, O., (2012) Marketing Strategy. New York: Cengage Learning. Henry, A., (2011) Understanding Strategic Management. Oxford: Oxford University Press. Hill, C. Jones, G., (2012) Strategic Management: An Integrated Approach. New York: Cengage Learning. Hiriyappa, B., (2013) Strategic Management and Business Policy. bloomington: Booktango. Paradise Group, (2017) About us. [Online] Available at: https://www.paradisegroup.com.sg [Accessed 5 March 2017]. Ress, G. 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