Strategic leadership Case Study Example | Topics and Well Written Essays - 2000 words

Strategic leadership - Case Study Example Moreover franchise allows companies to enjoy the operating economies of scale in advertisement of the product and also in purchasing the raw materials needed for manufacturing the product. With the expansion and maturity of the franchise the chain managements often buy them or became interested in opening own stores for themselves which help in gaining a better understanding and controlling of the operations. And with increasing control and understanding the franchising fees get supplemented by profits. Secondly the decision to choose the town, the neighborhood and even which side of the street as the region of the location is an important key factor of success. A difference in the location of the store can make a huge difference between the success and the failure. Thus the importance of ‘scale economies’ is to be recognized at the store level because the fixed cost of the outlets are very high and so to meet the cost, the small returns per unit sells and the traffic vo lume is very crucial. Efficiency in store management is also an important factor of profitability within the industry. Since the opportunities of waste, inefficiency and shrinkage are many there is a requirement of an efficient management system. Thirdly the efficiency of the store managers in building relations with the local public, developing goodwill with the customers, maintenance of the morality of the employees and keeping an eye on the competing chains are important for ensuring the short term profits. Fourthly with the development of the industry a clear overall market image of the chain is very important. There is a need of maintaining consistency and reliability of the product line throughout the chain. Introducing more innovative recipes often becomes risky as it may deviate from the basic and core theme of the industry. (Bartlett and Rangan, 2) Answer of Question no 2:- Dick Mayer emphasizes on Strategic planning. According to him strategic planning can bring effective changes in the way of marketing and brings accountability in the function. Every product and their pricing proposals require analysis and review by the management to evaluate their ability to meet long term strategies. He focused mainly on the subsidiary in Japan as it was one of the fastest growing units with the highest potentiality also a challenge for the entire international operations. Mayer was aware of the issues related to the resistance of the headquarters administrative control over the entire international operations. The office of the international operations felt that the lack of organized and effective planning and control for the overseas expansions resulted in the financial constraints, the inconsistency in the strategies taken and the ‘stalled expansion’ in the overseas market. Accordingly increasing efforts made by the staffs of the head quarters aiming at increasing support to the overseas staff and providing them with the resource and the experience of the parent company would help them in achieving optimality. The subsidiaries were helped from the headquarters in developing new marketing skills. New techniques of market research and advertising in television to introduce the products to the customers and to enhance the brand awareness were introduced among the subsidiaries through seminars. According to him the head quarter cannot turn a blind eye on the subsidiaries submission of approval forms after the plan already implemented and not submitting proper reporting to the head quarters for analysis. Moreover manager’s proposals of new market entry and the details of their strategies should be properly evaluated for setting financial and operational expectations in the changing world of