Write a Strategic Alternatives

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Write three pages Strategic Alternatives base the the attachment that i give to you, the Strategic Alternatives must base on Industry Impact on that current events.

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Current Environment: American Supply Chain General Company Description The Astro Group company is a serviced based organization established in 1990, to serve the public with its outstanding food and service experience. Established in Portland, Oregon as an on-site food service company which specializes in corporate catering and dining experiences, Astro Group has been growing and evolving over the years to outmatch the competition and satisfy the customer. Our business model originated from over twenty-five years of authentic and unique corporate and event catering. The company’s revenues are expected to reach US$65 thousand per month, a 3% increase from the previous month, indicating increasing demand and great avenues for growth. In addition to corporate dining, Astro supplies event management and planning services, from booking flights and hotel reservations to offering personalized assistance and security to all customers during their experience. What we are, is more than foodservice. We are hospitality. Company Strategy Aim Strive to become a leader in corporate dining and hospitality services by providing quality expertise to all clients; build relationship and trust to become a well know brand of service. Vision To exceed the expectations of guest in every possible way through exceptional service. Mission statement Our mission is to create a long-lasting memory for our clients that makes their experience unforgettable and to continually improve our services to exceptional levels. American food Supply Chain Industry Impact The food supply chain business in the U.S. is walking between heaven and hell. This business is facing the pressure between farmer and restaurant and has to coordinate drivers and monstrous trucks at the right location for the right time. Its net profit, compared to its revenue and cost, is very low. Actually, so does the restaurants and farmers, since they are making profits out of daily elaboration and they don’t have much time for rest. Therefore, who benefits the most from the food supply chain in the U.S.? The U.S. government obviously. Government taxes the farmers, supply companies, restaurants, and consumers, not mentioning the extra taxes from the ejection of monstrous trucks and drivers who sleeps at rest stations by the highways. The current supply chain works well America since companies have developed a systematic way to make them profitable. However recently the new electric pilotless truck introduced by Tesla and Chinese-American Trade war might influence the industry a bit, but not huge. Compare to other regions such as European Union and East Asia, Americans are heavily relying on the trucks instead of trains. The way Americans built their supply chain does not differentiate from other countries very much. The link between supply chain and catering business is flexible depends on the demands. Unlike regular restaurants where a number of customers are easier predicted, catering business would have to prepare the raw material based on customers' order. Therefore, the Astro Group’s supply chain is not fixed on location nor time. Also, looking at the American market, there has a rise in the demand for traceability from the consumers. This case has not been different for Astro group. With the high prevalence of the diseases that are caused by dietary habits, many of the consumers want to see the details of what they are eating, for instance, how it was packaged, grown, and transported. Since Astro is looking to cultivate customer loyalty, they will also need to ensure that they account for what is offered to the clients. This will breed a culture of trust between Astro and the clients. Also, by offering this kind of information to the customers of Astro group it will build upon the brand reputation of the company, and hence increasing the profits. For Astro to be able to account for what is offered to the customers, it will involve keeping watch of the supply chain from which they are obtaining the supplies. In the American food supply chain, the role of communication between the different actors cannot be understated. Establishing proper channels of communication is vital since there is fragmentation of the different actors in the food supply chain. Additionally, for the simple food items that are served by Astros, there could be many different actors involved who do not know of each other role. If communication lacks in such a situation, then it could affect the traceability of the food items which is one of the most vital aspects of establishing trust with the clients. Due to this, it is vital for Astro to prioritize communication with the various suppliers. This will be achieved by opening channels of communications with the suppliers who can be trusted. This will benefit not only the end consumers but also the food producers since it will eliminate the role that is played by third parties. Even though the American food supply chain has been operating in a manner that can be deemed as efficient, there is a need for strong legislation that will be aimed at tying the loose knots. Take, for instance, the occurrence of food safety incidences. There needs to be an increased focus on regulating food safety. This is vital considering that it will directly affect the health of the consumers. Take an instance whereby Astro group offers food which is not safe due to the lack of adequate laws that govern food safety. This will not only hurt the sales at Astro but also affect the reputation of the company. Therefore, it is important to put in place legislation that will govern the American food supply chain in the form of ensuring the safety of the foods that ends up at the dinner plates of the consumers. Nonetheless, Astro group has also been reeling from the effects of the monopolization of the product distribution in the American food market. This has taken the form forcing the Astro group to buy foodstuff from a specific supplier and hence limiting the choices. With few companies controlling a huge chunk of the supply chain, there are a few options for Astro. When looked at keenly, the monopolized market is not only unhealthy but also it increases the cost of doing business. For example, Astro does not have the freedom of choosing the best supplier from the lot. Additionally, another negative aspect of the monopolization of the American food supply chain is the fact that what is eaten by the clients of Astro will be determined by a few individuals. In such a case, the supplier will reap huge benefit at the expense of Astro group and its clients. In other words, Astro is put at the mercy of the suppliers. This breeds uncertainty in business since if the suppliers decide to raise the prices of the food supplies Astro will have to either cope with reduced profit margins or increase the price of the food on the menu which can be bad for business.
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Strategic Alternatives
The current business environment in which the Astro group operates in can be described
as highly uncertain and highly competitive. In order to maintain a competitive advantage over its
rivals, the company needs to integrate various strategic alternatives into its business model. This
paper seeks to discuss the strategic alternatives that Astro group needs to employ to secure its
competitiveness in the American hospitality industry.
Diversification
Diversification, as a strategic alternative, means branching out into new business
opportunities, rather than focusing on expanding the existing businesses. The basic idea of
diversification is to expand into new business activities that do not react to the same economic
downturns of the current business venture. Diversification helps a business tap different markets
thereby enhancing its profitability (Imbs & Romain 66). It also helps manage risks by reducing
potential harm to business in the event of an economic downturn.
The Astro group needs to diversify its products to enhance its profitability. As evidenced
in the industry impact analysis, the profitabilit...


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