Sharky’s Shaved Ice: Business Strategy
Executive Summary
Business strategy is an essential tool in an organization. Sharky’s Shaved Ice is one of the companies with a business strategy that guides its operations intending to achieve its business strategy. The strategy of a company is founded on the vision, mission, and also the value statement of a company. These three core areas also help in the creation of a business strategy.
Sharky’s shaved ice company also has its mission and vision that guides its operation toward achieving its business strategy. The mission statement of Sharky’s Shaved Ice is to simply provide each customer with the most delicious as well as a soft textured cold treat. This can be seen in the way Sharky’s shaved ice adds a new dimension to their frozen desserts by offering some of the most delicious and unique tropical flavors. The company’s brick and mortar shop provides a comfortable space where their consumers can create a perfect all-day dessert, relax as well as connect with friends.
Sharky’s shaved ice also has its vision. The vision of Sharky’s shaved ice is to see increased expansion and growth over the next three years. Since their formation in 2015, there has been an increase in the number of clients accessing the services. As a strategy to provide services to these clients, the company aims to raise its capacity of operation by establishing a second brick, a mortar location in a convenient location in the town. Don't use plagiarised sources.Get your custom essay just from $11/page
Execution of Business Strategy
Sharky’s Shave Ice business strategy is meant to establish a brand and enhance customer relationships with its customers. Several approaches have been put in place to execute the business strategy. One of the ways is through responding to consumer needs. Sharky’s shave ice is determined to meet the changing tastes as well as the requirements of the consumers. This will be achieved by offering new ice varieties that are also of health benefits. The customer is the priority for the company. Besides, Sharky’s shave ice will achieve its business strategy by building portfolio awareness. Communication and alignment are also necessary in this case. Through dialogue, it will be very easy for the Sharky’s shave ice to share information on their objectives. This will be driven by the company’s core values, mission, and vision. Accountability is another way that will enhance the execution of Sharky’s shave ice business strategy. Lastly, tracking progress will also help in monitoring the performance of various entities aimed at improving brand portfolio and customer relations. Besides, the execution of the business strategy is possible through proper alignment between strategy, employees of sharky shave ice, and its corporate culture. The vision, mission, and core values of the company will guide Sharky’s shave ice culture and business strategy. Hence Sharky’s shave ice will be able to determine things that need be implemented and how they will be implemented.
Financial Evaluation of The Business Strategy
The execution of a sharky shave ice business strategy will have financial consequences on the business. The marketing department will mainly be the one to be profoundly affected. Sharkey shave ice is aimed at increasing its operations as well as enhancing its brands and customer relations; more financial support is needed for the marketing section of the company. More funds allocation for the marketing department is required. With increased operations, it is accompanied by an increased need for raw materials needed for the production of ice products, raw materials, among other expenses.
Analytical Tools Used
In task 1, various analytical tools were used to develop a business strategy. The use of these tools is justified due to various reasons. For instance, the use of the winning strategy helps the company to make adjustments to the mistakes made. The use of SWOT analysis is essential; it shows the organization’s position in terms of its strength and weaknesses, opportunities as well as threats. The SWOT analysis for Sharky’s shave ice is as follows;
| Strengths • Limited Competition • Highly Visible Social Media Presence • Large Loyal Customer Base
| • Weakness • High Operation Costs (Lease, Utilities, Payroll, etc…) • Inability to Trademark product(s) • Employee Turnover
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| • Opportunity • Potential for Expanded Menu • Minimum Start-Up Costs for Potential Additional Locations • Establish Relationship with Other Vendors
| • Threats • Increased Insurance Premiums • Increased Vendor Pricing • Increased Local Competitors Increased Number of Local Competitors
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Maintaining Competitive Advantage
There are several ways through which Sharky’s shave can maintain its competitive advantage. One of the methods is through enhancing innovation behaviors. Innovation and creativity will help to ensure that Sharky’s shave ice is unique and different from the other companies in the market. The second strategy is through investing in expertise. Our area of expertise is the ice line of products. Hence perfecting in this area is very important in maintaining a competitive advantage (Liu, 2017).
Implications of Competing in International Markets
As the business grows, international markets are one area business needs to expand. Access and expanding to international markets has several implications. Some are beneficial, while others imply challenges. For instance, global markets imply that there is access to new customers hence new market niche. There is diversification of business risks. The risk of the business is spread out. The risks may be economical, political, or cultural.
Diversification Strategy Used
Moreover, the execution of a business strategy is founded on the use of diversification strategies. There are different types of diversification strategies. The recommended diversification strategy for this business strategy is the concentric diversification strategy. The purpose of this strategy is due to a few reasons. One is that sharky shave ice is operating in a slow-growing industry. Besides, there is an addition of new products related to the current ones (Shukla, 2016).
Ethical Considerations and Planned Execution of the Strategy
Business strategy implementation requires consideration of various ethical standards. One of the ethical concern is integrity and accountability. Accountability is highly needed in financial management during the execution of the business strategy. Also, integrity among the leadership dealing with the implementation of the business strategy is necessary. Professionalism is also required in various expertise areas. One of the ways through which we plan to execute this is producing customer-focused ice products. Improving customer relations will be achieved through brand promotion activities such as advertisements and promotions.
Application of Return On Investment (ROI) and Cost-Benefit Analysis
We also intend to use the return on investment (ROI) and cost-benefit analysis as tools to measures performance. ROI will help us in identifying the performance of the business strategy (El-Halwagi, 2017). Through this tool, we will be able to make decisions on purchasing new tools and equipment, hiring new employees, adding new operation areas, among other valuable company’s decisions.
Conclusion
In conclusion, Sharky’s shaves business strategy is a strategy to enhance the expansion of their business across all areas. The execution of their strategy is mainly founded on their ability to align their vision, mission, and core values with their business corporate culture. Implementation of this business strategy will have financial implications on the business. The success of the business strategy will also depend on the diversification strategy used. The strategy being used is a concentric diversification strategy. The performance of the business progress will be measured using the return on investment.
References
El-Halwagi, M. M. (2017). A return on investment metric for incorporating sustainability in process integration and improvement projects. Clean Technologies and Environmental Policy, 19(2), 611-617.
Liu, C. H. (2017). Creating competitive advantage: Linking perspectives of organization learning, innovation behavior, and intellectual capital. International Journal of Hospitality Management, 66, 13-23.
Shukla, U. K. (2016). International Business-Competing in the global market place. St. Theresa Journal of Humanities and Social Sciences, 2(2).