Assessing Strategic Issues Faces by Industries
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To test your team members' ability to think strategically and apply what you have taught them to real businesses, you asked each one to write a report on a particular industry, addressing the following:
What is (are) the major strategic issues that the industry faces?
What strategic options or alternatives does it have to address those specific issues?
What strategic option do the team members recommend and why?
What are the risks of implementing that chosen option?
You are to choose a company from one of the following industries:
The current market leader in the car rental industry
The current market leader in the U.S. hotel industry
The market leader in the fast food industry.
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Solution Summary
The solution assists with assessing strategic issues faced by industries.
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Introduction
Complexities in the business world have created some challenges and strategic issues in the food industry. Companies in the food industry face tough competition due to the changing tastes and preferences of customers. The food industry has to develop the skills and knowledge of employees according to the changing market conditions. McDonald is considered as the market leader in the food industry which is situated in the United States and serves around 68 million customers in 119 countries. In this tutorial, strategic issues in the food industry and different options for addressing these issues are identified. Along with this, the risk involved in implementing the strategic options is also analyzed in this tutorial.
Strategic Issues in Food Industry
There are various strategic issues that need to be addressed by the food industry in order to sustain in the competitive market environment. The food industry is categorized in different segments such as fresh food industry, organic food industry, processed food industry and livestock food industry (Moss, 2013, p. 455-460). In order to manage these sectors, companies have to adopt different supply chain strategies such as procurement and sourcing, inventory management, warehouse management and distribution management. It is the challenge for the food industry to overcome with the change in climatic conditions.
It is difficult for the companies to identify the climatic conditions of different countries. It is also analyzed that the prices of the food commodity and energy have also forced the wholesalers and food retailers to increase their product prices. McDonald has to increase its prices by 2 to 3 percent in order to offset the higher food costs. The company has to fulfill the sensitive demand of cost conscious customers (Dudbridge, 2011, p. 27-30). Therefore, a company has to reduce its overall profits and it has earned 16% profits in 2010 and 10% earnings in 2011. Further, McDonald also has to diversify its menu and develop the skills of employees in order to provide innovative beverages and fried items.
Apart from this, obesity and diet illness are the issues that majorly found in the food industry. It is the challenge for the food industry to ...
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