Business Level Strategy of Kuwait Food Company

Kuwait Food Company is providing variety of food products to its customers so that it can meet the needs and preferences of lot of customers. The high quality of its food products along with variety of food products provide the company a competitive edge over its competitors. The corporation wants to differentiate itself from the rest of the food companies through high quality, convenience and brand portfolio.  The corporation has adopted a successful business strategy which allow it to sustain in the long run and meet the demand of the customer.

6.1. Differentiation Strategy of Kuwait Food Company

Kuwait Food Company has adopted differentiation strategy through providing high quality, variety of food products and strong marketing strategies. The corporation market itself in such a way which allow it differentiate itself from rest of the food companies operating in Kuwait. The attractive advertisement and market campaigns of the corporation allow to increase its sales and gran a significant amount of market share. The marketing gimmicks of Kuwait Food Company are some of the key factors of its differentiation strategy.

The corporation can only become successful when it is going to differentiate itself in the market. The Competitors of the corporation such as Americana Group has strong brand portfolio and provide variety of products & services. In order to compete with that corporation the business will have to change its perspective and have to come up with something that other food companies has not done. Kuwait Food Company is focusing on quality and successful marketing strategy that would definitely help the corporation to stand out in the market and grab the attention of variety of customers.

6.1.1. Porter Five Forces of Kuwait Food Company

Bargaining power of buyers of Kuwait Food Company

The bargaining power of buyers would be moderate to high because Kuwait Food Company is providing Food items to its customers. It means that the switching cost is not much high and if the taste and preferences of the customer changes they can easily shift to another company’s product. The differentiation strategy would allow corporation to attract attention of lot of customers however there are other companies in the market as well which have strong brand portfolio and provide a variety of product which increase the bargaining power of the customers/buyers (Economist & Kourdi, 2015).

Bargaining power of suppliers of Kuwait Food Company

The bargaining power of Suppliers would be low to moderate because the business provide high quality products to the customers which means it can charge premium price from them. If the organization is going to generate huge amount of profit then it can easily bargain with its suppliers even if the suppliers charge high price. Therefore the bargaining power of supplier won’t be a huge problem for the business. It means that Kuwait Food Company can build better relation with its suppliers and in future will able to bargain with suppliers to reduce cost (Benson & Bugnitz, 2004).

Threat of New Entrants of Kuwait Food Company

Since the corporation is using differentiation strategy it would definitely create barriers for the new entrants.  Through differentiation the Kuwait food Company has created customer loyalty which would never be an easy task for the corporation who has new enter in the market. In order to sustain in the market for long run the new entrant will have to provide something unique to the customers which will increase the cost of the new corporation. In short it can be said that the threat of new entrant will be lower for the Kuwait food company (Corum, 2015).

Threat of Substitute Product of Kuwait Food Company

Although Kuwait Food Company has adopted differentiation strategy which allow it provide quality products to its customers but still the substitute of the products are available in the market. If the competitor decrease the price of its products to attract the customer than it can easily increase the sales which will have negative impact on the Kuwait food company. In short the substitute product are a major concern for the Kuwait food company because the customers can switch to substitute products if the corporation unable to meet the demand of the customers. It is important to keep analyzing the latest trends to analyze the preferences of the customers.

Rivalry among Competitors of Kuwait Food Company

The rivalry among competitors is high because the corporations compete with each other to grab the market share. The corporation come up with new strategies to attract the customers. The organization’s compare their performance with their competitors so that they can improve themselves. In food processing industry the competition is quite high which indicates high rivalry among competitors. When the competition in the market increases the organization provide high quality goods which ultimately provide benefit to the customers. Good competition in the market is necessary because it enhance the performance of the businesses (Kotler, 2008).

6.2. Risk Associated with Strategy of Kuwait Food Company

The main risk that is associated with the differentiation strategy is the cost. Kuwait Food Company focus on the marketing strategy to differentiate itself in the market which means that corporation will have spent heavily on the marketing campaign. The high cost will directly impact the profit of the corporation. It means that this strategy will increase the expenses of the corporation which it has to manage effectively. The corporation manage the high cost of its activities through charging premium price from the customers. Since the quality of the product is high customers are willing to pay a bit extra (Corum, 2015).

Another risk that is associated with this strategy is that other corporations can also adopt this strategy which would not only increase the competition but will also increase the cost for the corporation. The existing competitors can analyze the need for differentiation and can come up with something more unique and exciting which will affect the sales of the Kuwait food Company. Although the corporation who are new entered in the industry cannot implement the strategy of the existing companies because the existing companies have the resources to implement tough strategies which the new formed companies do not (Campbell, Edgar, & Stonehouse, 2011).

7. Analysis of Financial statements of Kuwait Food Company

7.1. Initial Investment of Kuwait Food Company

The organization has invested approximately $2000, 000 in the business. As the organization wants to grow and provide variety of the products in future it was mandatory to invest a significant amount in the organization (Atrill, 2014).

7.2. Calculation of Breakeven point of Kuwait Food Company

In the above table the break-even sales have been evaluated. In order to achieve the break-even sales the business will have to sell $7527100 to get break even. All the fixed and variable expenses which the organization will face are evaluated to perform break even analysis (Atrill, 2014).

7.3. Annual Costs of Kuwait Food Company

In the above table all the expenses which are incurred in the organization are mentioned. The total startup cost of the organization is $1821925 (Higgins, 2007).

7.4. Annual revenues of Kuwait Food Company

The revenues of the organization will grow in the future due to rising demand of food items in Kuwait. With the passage of time the population will grow which would also become a major factor for increase in the revenue of the business (Pandey, 2015).

8. Analysis of HRM Workflow of Kuwait Food Company

8.1. Recruitment & Selection Plan of Kuwait Food Company

The human resources management department of the Kuwait food origination needs some more employees so they required to recruitment for the several positions by using the different sources and techniques which are suitable for positions. The corporation also uses the criteria of specific industry process. The HR management department of the organization also includes the constantly evolving compensation program to their strategy, it is because to optimize the workers retention and to manage the relationship with employees. The company’s human resource management also uses the approaches and methods to motivate their employees and create a good and relaxed environment in the workplace. The human resources management of the corporation are efficiently manage the adequate of HR and by using several methods and effective strategies to address the requirement of company Kuwait food organization has maintain the process of recruitment and selection.

The most essential and usable internal recruitment of the Kuwait food company are as follows:

Trainers

Current employees

Transfers

The company needs to hold the recruitment to hire the employees for specific positions of managerial and supervisory management. For instance the human resources management of the Kuwait food organization provision for managerial position to promote the hourly sales workers. Almost the 70 % managers of the organization began their jobs as hourly sales employees and now they endorsed to their present position.

The food corporation of Kuwait uses the present employees for the source of recruitment internally. The organizations department of HR also refers their on the job workers for the hiring of internal recruitment.  In the Kuwait food corporation there are the limited employees who are working for them. The company absorbs trainees of the employees in the department for which they are trained. This method helps the firm by ensuring that which employee is fit for the job or by decreasing the supplementary spend on the HR department of the company. Furthermore the human resource management requires the some people to fill the places based on the short term at Kuwait food organization so these are the transfers which are used temporarily. To cover the gap which create difficulty in the company the HR management department used the transfer recruitment by sending the on the job employees to other positions in the workplace (Kreitner, 2008).

8.2. Training & Development Plan of Kuwait Food Company

The Kuwait food organization has been working to provide the obligate training to their employees with the use of latest and technology in an efficient way to make them ready to face the situation of the real – world, it might be several challenges such as to deal with customers in the days of high traffic shooing etc. for taking the advantage the organization has rebranded their employees by provide them training on the cost $1 a day for an employee to participate.

The firm has also make assure that they will pay for the degree programming in the supply chain field and in business. There are a great number of employees ten thousand who have applied for to the online degree programming for the first wave.

By leaving the workers on open to attend consumers the organization has also done an experiment recently by testing the service of robots for the stock shelve purpose or check inventory. The robots with the 2 – foots are designed very effectively and they are automated to move down and up and to walk away for the purpose to merchandise the mislabeled, incorrectly and miss placed products or for out of the stock.

8.3. Performance Management Plan of Kuwait Food Company

As the part of the yearly performance and the management progression the employees and management team of the company should work hard in an organized way collectively to create operative and effective development plans. The development plan can based on the skills intended to job mastery or merged the skills of job mastery with professional skills of development. The job mastery skill can be defined as the abilities which are essential for a person to effectively participate in one’s job. Professional development skills are is based on knowledge and skill which is not confined to the job description of employees only it gives much knowledge, motivation and enhance the abilities of the workers and proves very effective to improve the performance at job. Generally the creation of development plans is based on the classes but it can also develop for the purpose of specific project participation or for cross – training.

The other elements of performance of employees are also considered such as techniques and behavior which can be useful for the employees to work at job which are needed to work successfully. There is several approaches performance which are difficult to measure so employees and managers for this objective discuss the characteristics of performance by a precise, recognizable behavioral terms linked with job in the meeting called performance dimensions (Kreitner, 2008)

For instance to get successful in any goal like in program application to updating online graduate so it requires the employees to have managerial interpersonal skills which can be assessed by develop the strong relationship and to collaborate with suggestions and ideas made by associates. Than the performance will be dignified by measure the interpersonal skills and well behavior linked with dimension are validated to reach the goal.

8.4 Compensation plan of Kuwait Food Company

All in all the Kuwait food organization give the impression as the diverse require of its acquaintances so they recruited and hire the possible employees for their company. Lately the employees working at the Kuwait food store organization had rallied a protest together at Florida outside and in front of the store they reason behind it that they claim that organization was cutting back the capping salaries of full time hours bound them with force the employees to increase their work by an unbalanced schedule. (Wall Street Journal).  According to the policy of the company if the any employee will be absent from work for a lame excuse and without informing than he or she will be penalized but in case of any emergency or illness explain the reason by call the hotline on 1 – 800. An opponent of the company also believes that there is one another criticize implement by the firm to discourage the worker with in circumstance chronic health or in addition put out the currently employee of the organization out of the job.  This instance clearly illustrates the perception of the public about the performance and position of the Kuwait food organization and their strategies of management.

9. Analysis of Marketing Plan of Kuwait Food Company

9.1. Situation Analysis of Kuwait Food Company

Market Research of Kuwait Food Company

By using the tool of marketing research an organization enables to understand the potential of the consumers, to estimate the projected growth rate, and situational analysis of their company. It also helps to know the risk which can threaten the company and the strategies of competitors so that the company enables to create the realistic valuation of their business. The purpose of the market research implicates to target some specific aims and goals for the betterment of the organization or to recognize the hurdles and elements  which can be prove beneficial to achieve the goals or which can be obstruct in the way of success. This practice is often named as the SWOT analysis which is abbreviated as Strength, weaknesses, opportunities and threats. An organization can recognize their strength and weaknesses by analyzing the internal evaluation but to get informed about the opportunities and threats an organization have to do external analysis (Kotler, 2008).

Internal Analysis of Kuwait Food Company

The internal analysis is done within the organization it does not require to look outside of the company. By analyzing the picture and culture, employees, awareness about product, efficiency and capacity of operational management, organizational structure and financial resources an organization can clearly analyze weaknesses and strengths of their business.  Strengths might be tangible or intangible and are the positive traits for the company which can be used by company to strengthen them while the weaknesses can be defined as the factors which can be hurdles for the company to move towards the success (Campbell, Edgar, & Stonehouse, 2011).

External Analysis of Kuwait Food Company

The external analysis can be defined as threats and analysis faced by an organization. These can be recognized by the analyzing of market trends, consumers demand and flow, new technology, upturns or downturns, suppliers, competitors and by economic factors. Opportunities really influenced the organization in a positive by providing the chance to take advantages. Threats are the factors which can hinder the company’s position in the market an organization have to recognize them and should make strategies to lessened them and an organization should grab the opportunities to fulfill the goals.

9.2 Opportunities Analysis of Kuwait Food Company

The opportunity for Kuwait food company is to expand and improve their business in more states effectively. The opportunities for Kuwait food company are connected to the global economic situation. The further opportunities for Kuwait food company by SWOT analysis are improvement in standard quality, developing states expansion and enhancement in human resources management practice. As Kuwait food company has high economic growth rate so it is a good opportunity for them to expand their business in developing nations. It is also opportunity for Kuwait food company to ensure the health of consumers by increasing the standard quality of their products. Wal-Mart must make strategies to avail the opportunities in the market of global rate. By improving the performance of organization Kuwait food company can improve their HR department.

9.3 Targeting & Positioning Process of Kuwait Food Company

Marketing segmentation is one of the most common methods used by the organizations that have huge and numerous marketplace. The purpose is to consolidate the total marketing place into smaller clutches of consumers with shared characters or interest to permit the competence and effective advertising. Marketing segmentation helps the organization to segmenting positioning and targeting to recognize the available market segments for your business or product by which the company can resolve the issue by choose one to target and campaign. It also enables the organization to understand how commendably the position advantage offered to board consumers. There are several approaches which are used for segmentation such as lifestyles, demographics and usage patterns. In the course of developing the strategy of market segmentation company define several substantial and tangible segments as organization can for their product and brand (Kotler, 2008).

9.4 Marketing Strategy for Product & Services of Kuwait Food Company

After introduce your product in the market you usually go through the same difficulties as your competitors and struggle for more consumers. A company needs to create a distinctive positioning policy to meet the objectives they have it can be more sales and more consumers, to believe the customers that organization is honest and loyal and to increase their revenues. This is an outline for the company to meet the desires and to attain the effective position in the market. By providing the superior quality and less prices you can attract more consumers.

9.5 Pricing, Distribution & Promotional Mix of Kuwait Food Company

In the theory of marketing mix the pricing strategy has play a significant role and is highly demanded factor. It enables the consumers to create the picture of the status of organization. The organization should critically think before making the pricing strategy of the product as it really impacts on the scale sale because the price is really influence the decision of the consumers that should they buy the product or not. In this the price has also impact the total revenues of the company. In order to attain the lead position in the market and to avail the competitive advantage the company should be attentive about the strategies of their opponents (Corum, 2015)

9.6 Marketing Budget of Kuwait Food Company

A marketing plan is based on a detailed plan that is based on the marketing strategies, tools and tactics to be used. Likewise, in this plan the cost of the projects is also decided which is called the marketing budget. Marketing plan and budget enables the team to remains focused and active, as they have to meet their goals within the planned marketing budget. Likewise, for the marketing budget the term limit pricing is used in which the price for the project is decided.

10. Analysis of Operational Plan of Kuwait Food Company

10.1. Resources & Production of Kuwait Food Company

As Kuwait Food Corporation Provide variety of food products to its customers through selling them in the super markets and retail stores it is necessary for the corporation to manage the demand and supply of its products so that the customers won’t have to face inconvenience due to the shortage of goods. The corporation has 2 factories that produce various food items. The corporation analyze the market trends to forecast the demand of its product. The corporation have huge warehouses where the material for production are available. The corporation use lean manufacturing techniques which not only help the corporation to reduce its waste but also allow corporation to produce only that capacity which is sufficient for the demand (Spender, 2014).

10.1.1. Process & Capacity planning of Kuwait Food Company

The corporation utilize the latest inventory management or warehouse management software which allow corporation to sufficiently plan their production process. The corporation only keep that inventory on hand which is sufficient for the production. The corporation produce the products by keeping the demand in mind so that corporation would not have to produce goods in excess which increase the storage cost of the organization. The nature of the business is also a major concern for the business because it produce food items which cannot be stored for a longer time period therefore it ios important to perform production & capacity planning to make sure the safety and goodness of the products (PANNEERSELVAM, 2012).

10.1.2. Location, facilities & Equipment of Kuwait Food Company

As discuss earlier the Kuwait Food Company has two manufacturing facilities and the company is working in allover Kuwait. Kuwait manufacturing company has built strong relationship with suppliers and made collaboration with different retail businesses so that the products of the company would be delivered to the customers. For producing the food items the business use latest equipment which not only reduce the production time built has also increase the production capacity. Various food items are stored in cold storage before delivering to the supermarket. Corporation has taken all those measures that insures the food safety (Fridson & Alvarez, 2011).

10.1.3. Material sourcing & supply Chain of Kuwait Food Company

Managing the supply chain activities has huge significance for any organization. The supply chain activities are directly linked with the efficiency, performance and profitability. If the corporation does not manage its Supply Chain activities efficiently than not only its performance will decrease but also the corporation will unable to achieve its desired goals (Kreitner, 2008).

10.1.4 Operations of Kuwait Food Company

The operations of the corporation need to be managed appropriately to increase the operating profit. The skilled management of the organization have the capability to improve the operations of the corporation (Moon, 2010)

10.2. Application of Management Information System of Kuwait Food Company

The management information system such as Enterprise Resource Planning (ERP) will be implemented to enhance the performance and operations of the corporation. The resource planning software not only improve the efficiency of the corporation but also reduce the costs of the business as well.

References of Kuwait Food Company

Atrill, P. (2014). Financial Management for Decision Makers (7 ed.). Pearson Higher Ed.

Benson, R. J., & Bugnitz, T. (2004). From Business Strategy to IT Action: Right Decisions for a Better Bottom Line. John Wiley & Sons.

Campbell, D., Edgar, D., & Stonehouse, G. (2011). Business Strategy: An Introduction. Macmillan International Higher Education.

Corum, R. (2015). Principles of Management: a Christian Perspective. WestBow Press.

Economist, T., & Kourdi, J. (2015). Business Strategy: A guide to effective decision-making. PublicAffairs.

Fridson, M. S., & Alvarez, F. (2011). Financial Statement Analysis: A Practitioner's Guide. John Wiley & Sons.

Higgins. (2007). Analysis for Financial Management. Tata McGraw-Hill Education.

Kotler, P. (2008). Principles of Marketing. Pearson Education India.

Kreitner, R. (2008). Principles of Management. Cengage Learning.

Moon, H.-C. (2010). Global Business Strategy: Asian Perspective. World Scientific.

Pandey, I. (2015). Financial Management. Vikas Publishing House.

PANNEERSELVAM, R. (2012). PRODUCTION AND OPERATIONS MANAGEMENT. PHI Learning Pvt. Ltd.

Spender, J.-C. (2014). Business Strategy: Managing Uncertainty, Opportunity, and Enterprise. OUP Oxford