Highlights
Assignment Brief
Growth and Sustainability of Shelly Foods
This case depicts how a novice entrepreneur grew and sustained her enterprise through strategy development and implementing strategies.
The key areas of success are: Developing strategic directions, capabilities, competitive advantages, and superior customer servicing
Shelly Perera had a desire and inspiration to commence a business which will cater to contemporary/ modern and futuristic social needs in the fast food sector. She was inspired by the great entrepreneurs who were born poor but grew to become well known entrepreneurs. Her husband discouraged her on the grounds that fast food is a very competitive field but Shelly believed that competition is not an issue as long as one defines an innovative long-term direction and business scope. Shelly, after studying social trends chose the scope and directions as “fast foods for up-market urban /city/ town segments”. Shelly would begin with threshold/ beginning skills and develop skills into strategic capabilities and acquire competitive advantages on segment compatible differentiation and positioning.
Shelly analyzed the trends in the fast food industry. The key model for analysis was Michael E Porter’s Five-force model depicted below. She also analyzed the external and internal environments and assessed her skills and resources to develop a strategic business plan.
a) Introduce non-vegetarian food – This will enlarge the narrow vegetarian market segment and make more people to come
b) Introduce a home delivery system like the Pizza Hut
c) Open a second, third outlets on other major highways. Kandy and Negambo roads are the best
d) Divest profits in some other business, ideally in agricultural ventures, so that they can supply their own agro products.
Tasks:
1. Write a Vision and Mission statement for Shelly Foods.
2. Which of the above four options (a, b, c, d) would you recommend/ reject? Provide reasons.
3. What strategic options would you provide Shelly to expand her business? Your answer should be based on rational reasoning. Examiner suggests that you use known management models such as Ansoff’s opportunity matrix, and Porters Generic Strategies to develop growth strategies.
4. Discuss Shelly’s approach in terms of “Only vegetarian”, high price strategy, differentiation, and no Above the Line Promotions (ATL)
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