(CDC may implement a change in their management system due to the internal and external forces.
Internal forces that drive changes include growing business needs, organization reform, or adjustment and modification of the corporate strategy or business objectives.
On the other hand, external drivers may include the improvement of technology, the need for electronic and technical services and the economic trend and development that influence the profitability of the industry.)
SWOT analysis
Strengths:
The strengths of CDC include the excellence management, loyal relationship with customers and quality control. Firstly, in the previous years, Café De Coral has strived for its excellence for the past several decades. CDC …show more content…
Opportunities:
For the opportunities of CDC that include Increase in income, the growing industry of tourism,
The average monthly salary of food industry increase to 13495HKD in the second quarter from 13235HKD in first quarter of 2015. And Consumer Spending in Hong Kong averaged 164916.08 HKD Million from 1973 until 2015, reaching an all the time high of 385705 HKD Million in the fourth quarter of 2014 and a record low of 34061 HKD Million in the first quarter of 1974.
This will have a positive growth in the average salary of the working sector. As a result, more people are willing and able to purchase food from Café De Coral.
Nowadays tourism industry becomes one of the most important economic growth factor in Hong Kong. According to Hong Kong the Facts - Tourism, “In 2014, visitor arrivals increased by 12 per cent over 2013 to 60.8 million. The total number of visitors in the first half of 2015 grew at a slower pace of 2.8 per cent over the same period of 2014.” Such great number of tourists contributes to the fast food industry and making more potential customer in Hong Kong.
Weaknesses:
-small business units
-costs
-high loan rates are possible
-investments in research and …show more content…
Since CDC is the market leader in Quick Service Restaurant therefore they obtaining lower rents and cheaper supplies. CDC also have their own Central Food Processing in Hong Kong and Mainland China. In addition, CDC have the good image of quality food with reasonable prices.
Base on above reason the strategy of CDC is in cost leadership.
Bowman’s Strategy Clock
Bowman’s strategy clock offers effective framework to evaluate and determine the company’s competitive status by means of using various options. These options are classified into eight parts namely:
Low added value, low price, hybrid, differentiation, focused differentiation, increased price/standard, increased price/low value and low value/standard price.
For CDC,
(Low cost base and reinvestment in low price and differentiation)
Ansoff Matrix (Corporate strategic directions for CDC)
Market PenetrationIn the case of Cafe de Coral, its market in Hong Kong shall continue to be stable provided that it holds true on its resolve of improving its signature products, ensure that premium ingredients are used, and the strictest quality control should be