Kapai New Zealand Analysis

Kapai New Zealand Analysis

Business partnershipwith the like-minded people can thrive after structuring the goals ofthe company. Working as a team has the advantage over a soleproprietor based on the fact that the partners handle management.Additionally, joint ventures tend to work well when partners arecommitted and work hard to fulfill the desired goals. It is the roleof the management in the business to ensure that employees aremotivated so that they can retain their employees for a longer timein the business. The partners support the managers and other topmanagement with what they need to make the business mission andvision to be the reality. Failure to provide the recommendableresources implies that the business will not venture for a longduration and may collapse anytime. The paper aim is to analyze KapaiNew Zealand by first giving a description of the organization. Itwill also discuss the organization mission and vision depending onthe culture of their customers in New Zealand. In each and everycompany that is performing best in the market, the management musthave identified the strategy that would suit the business and thusboost its performance. In this regard, Kapai New Zealand has todiscuss its strategy so that it will be competitive with other fastfood offering companies.

Since Kapai NewZealand has the co-competitors, the business rivalry is stiff. KapaiNew Zealand industry analysis will be analyzed using the Porters FiveForces. In open market economy, competition is allowed consideringthat the customers need high-quality products. In relation to that,the prices of the fast food must be offered at low prices that meetthe consumer requirements. Kapai New Zealand needs essentialcompetencies so that it success can be attained in the market sinceother companies offer the same products. Lastly recommendations tothe management are going to be provided so that Kapai New Zealandwill be successful in future.

Introductionto the organization

Kapai New Zealand isa fast food retailer that was started by James and Justin. The twoindividuals started partnership business and came up with a saladstore. They decided to offer reasonable price food to the residentsof New Zealand. The aim of the organization was to providehigh-quality food that is fresh worldwide. Due to the growing demandsof fresh food that do not increase body weights Kapai aimed toprovide such food locally and globally. Additionally, after providingthe best fast food to the general public, the management had theideas on how they can return the profit to the community by beingpart and parcel of the entire community. Their aim was to promotesocial responsibility by carrying environmental practices that wouldhelp the society both locally and internationally. Kapai made surethat the food produced did not have high-fat contents and qualityfood at affordable price. Kapai New Zealand had a good relationshipwith their customers based on that the company bought locallyavailable products and employed the local people.

The salad store wasbig enough and could accommodate more than 20 customers. Besidesthat, fridge with cold beverages was available where the customersused self-selection method. Daily newspapers and the companynewsletters were available. Comfort was the aim of Kapai for thosewho did not want take-away food stuff. Kapai, New Zealand stores,were operational from Monday to Saturday. Normal business hours wereobserved since the employees worked from 8 in the morning to 4 in theevening but on the weekend the company opening time was 10 o’clockto 2 in the afternoon. To attract the customers Kapai, New Zealanddid not adopt the modern method of advertising like an online arena.Kapai engaged in innovative strategies like the production of uniquefast food in those stores and other arts that made people feel partand parcel of the company (Hell Pizza, 2007). For instance, they usedwall art as an advertising method to attract their clients.

The Salad storecompetitors that existed were a threat to the new entrant company.One of the competitors was McDonald Golden Arches which was thebiggest in New Zealand. The company offered take-away and eat-inoptions to the customers. Saladworks and Toss also posted marketrivalry, and both had two stores and beverage section.

Vision,mission and culture of theorganizationVision

Kapai, New Zealandvision, is “leading in nationwide retailer of healthy fast food”is the company co-statement. The vision is strengthened by the corevalues that Kapai New Zealand follows strictly. For instance, thefirst core value is “great food”. The management concern is toprovide healthy fast food that New Zealanders will be satisfied with.The high fat consumption that leads to obesity and geneticallymodified products (GMO) is likely to cause cancer to the people(Kapai New Zealand. (2007a). Kapai New Zealand is committed to greatfood that is free from genetic modification and fatty products. KapaiNew Zealand is concerned with fitness and good health for the NewZealanders by making sure that the eating habits in their storesconsider food that is produced locally. Kapai New Zealand aims tosupply only local products to the customers and reduce chances ofcontaminated products with genetically modified products and otherchemicals.

Apart fromcontaminated products with chemicals Kapai New Zealand co- value isto offer the local products at affordable prices. It aims to make thefood accessible to all New Zealanders. By having many stores indifferent countries, it implies that Kapai does not only consider afew selected local individuals rather it is making it available toeverybody. As long as the customer has money to buy fast food Kapaioffers the local product at an affordable rate without consideringthe country of the origin. The second co-value that is stated in thevision statement of Kapai New Zealand is to give the locals thepriority of benefits like environmental preservation, employment andmaintaining the economy of New Zealand.

Mission

It is the role ofthe management to make sure that the goals of the Kapai New Zealandare attained. One of the mission statements of Kapai New Zealand isto offer health food both to the local and foreigners. Fast food thatis of high quality must be provided at the convenient time. The nextmission statement is to ensure that the local community hygiene isconsidered. It implies that corporate social responsibilities likeenvironmental preservation are part of hygiene that managementconsiders.

From the case study,we have noted that the culture of New Zealanders is associated withconsumption of fast-food. The fast –food store from othercompetitors are many in the entire region, and thus outlets are many.For instance, the Burger Chains and McDonald Golden Arches are all inthe major cities. McDonald had 139 stores, and other 19 stores werelocated in Wellington region. Burger Chain had 67 stores. The cultureof New Zealanders shows that it was dominated by fast-food dishes.Other fast- food varieties that were popular are pizza, fish andchips that were considered as New Zealand traditional food. Fast-foodbeing their culture they did not consider the health implication andquality products that are free from chemicals and geneticmodifications. Due to chemically contaminated food and stagnation offast food in the market Kapai New Zealand decided to come up withthose traditional fast-food that were fresh and of high quality. Thefast food that was sold in the stores was not the best in terms ofhealth culture since it did not consider the health implications ofthose foods. For instance, in the case of Kapai New Zealand theyconsidered the local products so that they could come up withcultural food stuffs, which were free from genetically modifiedproducts. In respect to that, New Zealanders were suffering fromthose products, and this is the reason the company came with theproduction of locally produced products. Kapai New Zealand matchedwith its strategy since in the vision statement the company considersthe health of the New Zealanders by stating that their aim is toprovide great food. The food is free from chemicals and otheringredients that are likely to cause problems to the customers. Thepoor diet that the customers were engaged on resulted in obesity andother body problems that could only be solved by the production oflocally produced food.

Strategy identification and discussion

Strategyidentification plays an integral part in the business setup. Forexample, Kapai New Zealand had to consider the store locations forthe purpose of the customers. The store location must consider themarket segments so that fast-food can be sold in high volume.Additionally, it is the role of the managers to ascertain that theyhave come with price strategy that will favor both the high andlow-income earners. The corporate level strategy aims at how theorganization will make the strategic decision so that the entireorganization will be improved in terms of growth and performance. Forinstance, Kapai New Zealand may decide to low the prices of the fastfood so that the financial performance of the company is increased.It implies that when the prices are low the customers tend to makerepeated purchases and thus there will be a financial increase in thecompany. The company may decide to merge two stores to operate underone roof for the purpose of reducing cost in terms of operations.Resources allocation to other stores may be increased to ensure thatthe customer requirement is met.

One of the corporatelevel strategies is a value-creating strategy. The strategy aims atmaking sure that the competitors are eliminated in the market bymaking sure that Kapai New Zealand has the largest market share. Thestrategy works in a way that it will add value to the organization bymaking sure that the services offered meets the consumerrequirements. The strategy is also concerned with the reduction ofcost in how it is operating its business and ensures that there isincreased efficiency in the company. The strategy aims indiversification by making sure that the production is high so that itcan meet the customer demand. It implies that when the production ishigh then the rate of consumption is high, and thus the companydominates the market share.

The second corporatelevel strategy is value-neutral strategy that aims at risk reductionin the company (Hill and Jones, 2010). It is also concerned with agood cash flow that does not hinder the business on its operations.For example, when the company wants to buy the local products thatare readily available the resources should be enough in the bankaccount of the company rather than going to borrow from the bank thatmay take time. It is also concerned with how the department workstogether for the purpose of good synergy in the company. The lastcorporate level strategy is the value-reducing strategy. The strategyworks to ensure that the company has the right target market, and themanagement is handling its mandate in the right manner so that anyrisk to the company can be noted. The managers and other executivesmust be ready to interact with other stakeholders of the company sothat the required growth of the company can be attained.

The generic businesslevel strategy is concerned with the customers and the products theyoffer whether it is going to meet the customer need. The company hasto reconsider how they treat their customers and the kind of servicesthey provide to the clients. One of generic business level strategythat Kapai New Zealand is concerned with from the case study is thequality focus. For example, in the mission and vision statement ofthe company they believe in the production of great food. Kapai NewZealand is determined to provide local food that is free fromchemical and that is not genetically modified. Producing fast-foodthat is from their backyard will boost the health living of NewZealanders (Reah, 2007). Kapai first primary concern is the health ofthe people, and this is the reason they are concerned with fast-foodthat is accessible to everybody. The quality focus does not considerthe cost of the food rather it emphasizes on brand quality. Kapai NewZealand does not use the modern advertising method for theirfast-food. The management believes that the locally produced foodhave the best public relation with their customers and thus no needfor those expensive advertising strategies. Although quality focusconsiders the marketing strategy for the creation of a good image tothe company, high quality products will tend to attract the customersfrom any corner of the world.

The second genericbusiness level strategy is cost focus. The strategy aims at makingsure that the product is sold at an affordable rate to the consumers.In the mission statement Kapai New Zealand has the fundamentalconcern to the customers. The prices of fast-food are sold ataffordable prices both to low and high-income earners. The fast-foodwas sold at a price of $6.95 which is nutritious and locally producedat an affordable price. The DIY (do- it- yourself) strategy made itpossible for the customers to choose what they required at anaffordable price. The third generic business level strategy is valueleadership that incorporates both costs and focus strategy. The mainfocus is to make sure that the middle customer is going to benefitfrom the strategy. When marketing for fast-food the marketsegmentation must be considered so that the buying trend of themiddle-income earners can be captured. For instance, Kapai NewZealand had to consider the store location.

Industryanalysis

Porter’s fiveforces is a business strategy that analyzes business using fiveforces that are based on competitive nature of the company, weakness,and its strengths. The aim of the model is to ascertain that thebusiness is going to yield profit and be competitive with otheroperating businesses that offer the same product in the market. Thefive forces areCompetitive rivalry

The force isconcerned with how competition in the market is being conducted.Competition in the market is influential depending on how thecompetitors are supplying the products in the market (Warren, 2002).For instance, in the case study Kapai New Zealand has competitorslike Burger Chains and McDonald Golden Arches among other operationalfast –food companies. Market rivalry exists when there are two ormore companies that are operating in the same location and offeringthe same products. It implies that if Kapai New Zealand offer thefast-food at high prices then the customers may tend to move toBurger Chains and McDonald Golden Arches due to the high cost of theproduct. When market rivalry increases, there is a possibility of onecompany to consider advertising strategy or price differentiation sothat the company can continue to operate as intended.Bargainingpower of suppliers

The force deals withhow the supplier has the power to control the prices of thecommodity. If the supplier raises the price of the product, then itimplies that the company profitability is likely to be decreased. Themore the supplier are on the market, the more competition is and thuslikely to increase the organization profitability (Marburger, 2012).For example, in the case study Kapai New Zealand products aresupplied by the local New Zealander, which implies that there is apossibility of price reduction for the customers.

Customer’spower

The customers mayinfluence the price of the product and the quality of it. When thecustomers are fewer in the market, then it implies that they have thepower to dictate what they need. When the customers are many in themarket, then the company can switch from one product to the next. Thebuying power is determined by the number of the customers, and thuscompetition may be high when the customers are fewer. The force isreduced in the market by opening other stores in different locationslike in the case of Kapai New Zealand.New entrants

The threat of newcompanies in the market is quite challenging due to the existingcompanies. The existing companies operating in the area tend tochange the prices of the commodities so that the new entrant can belocked out. Before the brands of the new entrants are recognized theexisting company will be a barrier of the new entrant.Substitutes

Whenever thecustomers need is not attained then there is the possibility for thecustomer to move from one company to the next looking for the lowprice commodity and quality product. The cost of the commodity has tobe lowered from time to time to ensure that the customers do notshift to other companies.

The overallcompetitiveness of the industry is determined by the products thatare sold. For instance, in case of Kapai New Zealand high-qualityfast food must be provided to the consumers if the company wants tobe competitive in the market. Price must be lower than those of rivalcompetitors making it possible to venture without problem.Advertising medium must be considered so that awareness of theproduct is high in different location. It is the role of managementto ascertain that resources are provided to the different departmentsso that they can advertise the product. Market research must beconducted to ensure that target market is considered in terms of whatthe company is offering and the price of the commodity.

Toss and Saladworksare key competitor of Kapai New Zealand in fast-food production.Kapai New Zealand should open stores in Auckland due to advantage ofthe location since Auckland is located along pedestrian counts, andthere are offices that are nearby. Kapai New Zealand should bepositioned in Auckland so that it can compete with other salad storesthat are within. The reason is based on the fact that customers weremany, and thus the demand is high as compared to other cities.

Strategic group map

H

Kapai

igh

Price

and

Quality

McDonald

Saladworks

Toss

Low

Local suppliers other suppliers

Principal distribution channels

Due to locallysupplied products Kapai and Saladworks performed best in the marketby recording high sales. The locally supplied products met theconsumer requirements based on that it was not associated withchemicals. Toss had to record low profit since the health of thecustomers, and the high cost of fast-food was notconsidered.Analysis of organizationcompetencies

Organizationalcompetence is the strategy undertaken by both the management andemployees to attain the company goals. The employees have to playtheir role, and the management has to provide the necessary resourcesrequired for the attainment of vision and mission of the company.Teamwork must be incorporated to meet deadlines and for the purposeof innovation and creativity. Stiff competition in the company is nothigh when management and the employees are creative enough so thatthey can outdo their co-competitors. It is the role of the managementto set long and short term goals that are supposed to be achieved bythe specified deadline. Failure to set the goals means that themanagement wants to maintain the status quo of the company, and thusthere is the likelihood of the company not performing best inoffering the services to the customers.

One of the keydistinctive competences is the pricing strategy that the organizationhas to consider. For example, Kapai New Zealand nutritious and fast–food had its own price according to the customer choice. Acustomer who needed toasted pide bread had to pay $6.95 while inother fast-food companies could be bought at $9.85. It was a pricingstrategy that played a critical role in ensuring that Kapai NewZealand was competitive in the market. Failure to consider pricingstrategy means that the company will sell its products at high priceresulting to customers shifting to other organization for the sameproduct.

The next keycompetence that Kapai New Zealand thought to be of benefit to theentire organization was the locally available material that was usedin the preparation of fast-food. The easily acquired products in NewZealand played a significant role in making sure that fast food issold at low prices. Comparing with other competitive companies meantthat the management looked for low materials and thus the reason theysold their fast food at low price. The next distinctive competencewas the attraction of customers. The company did not use the modernmethod of advertisement to create awareness to the customers.Instead, they embarked in guerrilla attention by being creative andinnovative. Kapai New Zealand used walls and cabinets that weredecorated to attract the customer attention.

The next distinctivecompetence that was used by the organization was the Corporate SocialResponsibility (CSR) (Singh, 2010). Kapai New Zealand was concernedwith the preservation of the environment. This was a strategy thatplayed a significant role in creating the awareness of the company.By giving back to the society after they supplied the availablematerials the company benefited in terms of profit and thus they hadto sell their fast food at low price. The environmental practicesthat were supported by Kapai New Zealand made the company increaseits awareness to the customers and thus each and every individualfeeling part and parcel of the organization.

Through innovation,Kapai was able to build value into its products and service offering.The production of high-quality fast-food that was traditionally madeand was free from chemicals and genetic modification was aninnovation (Baucus and Beck-Dudley, 2000). The organization wasconcerned with the health of its customers, and this is the reasonthe company embraced the use of locally produced food.

Quality is a valuethat was used to offer service to the customers. Comparing with otheroperating fast food companies the management of Kapai New Zealandensured that high-quality fast food was provided to the clients. Themenu choice and the prices gave the customers the variety ofdifferent commodities that they could choose. By considering thehealth of the customers as stated in their vision statement, they haduse any means possible to offer quality fast food to the customers.

Customerresponsiveness is a value that the management used to meet theirdemands (Norton, Ueltschy and Baucus, 2014). For instance, stylishstores that accommodated a lot of customers when being served withtheir favorite dishes and take-away salads meant that there was afavorable environment to the customers. The self-selection beveragesin the stores also imply that Kapai New Zealand was a place reservedfor the customers and the management worked to refresh theircustomers with the different variety of beverages and fast-food. Thepricing strategy that was used by Kapai New Zealand management was amethod that showed that they were eager to welcome more customers.The efficiency of the management of their routines played asignificant role so that they could achieve the consumer needs.Additionally, they designed the short and long-term goals of thecompany so that the employees and other stakeholders could work forthe attainment of the goals.

Conclusion

The management has acritical role to play in their mandate. For instance, the mission andvision of the company have to be followed strictly so that it isimplemented. Considering the vision statement of Kapai New Zealand“leading in nationwide retailer of healthy fast food” indicatesthat the management has a lot of concern with their customers.Strategy identification that helps Kapai New Zealand to make criticaldecision regarding the running of the company made it possible toachieve their goals. For instance, the opening of stores in otherareas helped the company in terms of growth and performance. Stiffcompetition in business is encouraged so that the customers need isachieved. The aim of the competition is to provide high-qualityproducts that will satisfy the customers. The Porter’s five forcesthat deal with industry rivalry, the power of the customer, newentrants, the power of supplier, substitute are encouraged in theopen market economy.

The organizationcompetence helps the organization to achieve its goals. For example,by considering the pricing strategy the customers cannot shift if theprices are reduced than the competitors. Discounts and other pricingstrategies should be used as a method to outdo the competitors in themarket. Corporate social responsibility is a key competence that canbe utilized by the company to create awareness of the services andproducts offered by the company.

Recommendations

I recommend KapaiNew Zealand to use advertising method like the use of Facebook,Twitter, YouTube, Emails, Television and Radio stations to createawareness of their services to the customers (Christian, 2011). Theadvertising medium helps to post and share information with manycustomers within seconds. The method is expensive but very efficientand effective since it can lead to the financial growth of thecompany. If advertising of the fast-food is done on daily basis,there is a possibility of Kapai New Zealand to be the mostcompetitive company in New Zealand.

I recommend KapaiNew Zealand to use online shopping method. The method is best when itcomes to customer responsiveness since the organization will have toincrease their production rate. Many people especially the younggeneration have access to mobile phones, and thus if they need fastfood when they are in the universities and colleges among otherinstitution, they do not have to travel to the stores.

I recommend themanagement of Kapai New Zealand to reconsider pricing strategies likediscounting and promotion to their customers. This implies that highsales will be made when discounts and promotions are provided to thecustomers. When the low price is set to the fast-food stuff,customers cannot shift to other companies that offer the same foodstuff. Lastly, I recommend Kapai New Zealand to come up with acorporate social responsibility of helping the needy children in theentire New Zealand. Corporate social responsibilities help thecompany to be accepted in the area of operation. By giving back tothe society, the company sales volume may increase steadily since thecustomers will like to be associated with it.

Kapai New Zealandshould have business in Auckland based on the strategic group mapping(SGM) outcome. This is because Auckland is located where there aremany offices that are build, and there is the availability ofpedestrian counts. I would prefer Kapai to have a store within thearea since many customers who are in those offices may increase thesales volume of the company. In addition to that, the store should bealong those pedestrian counts where the pedestrians may ask take-awaysalad and other fast-food stuff. The management of Kapai New Zealandshould make the business a multinational company by expanding toother countries.

References

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