External Environment Analysis essay
This part of the paper will tackle the internal as well as external analysis of the company that is being studied. The company that is being studied is California Pizza kitchen. California Pizza Kitchen is one of the restaurants with around 205 locations and 48 franchises (http://www. cpk. com). Since its inception in 1985, the organization did not look back and has continued to provide the customers with excellent food service in a casual environment which is greatly liked by the people.
The open style kitchen exhibition approach of California Pizza Kitchen gives a relaxing attitude to the customers who enjoy coming to this restaurant and are equally impressed with the idea of such style of dinning. The idea enjoys wide consumer demand with 253 locations in 32 states of USA, the District of Columbia and 10 foreign countries (http://www. cpk. com). SWOT Analysis A SWOT stands for: Strengths, Weaknesses, Opportunities, and Threats. Every area forms a box on a gridiron and is filled in each part to assist in the formulation of a marketing plan (Jenster & Hussey, 2001).
Strengths and weaknesses of the SWOT focus on the internal side of the business. They collaborate in understanding the mission and vision of the business in order to come up with strong and competitive strategies to over come the external factors that can harm the business. Threats and opportunities are the external forces of the environment present in the business. They focus on the circumstances of the actual-world. SWOT helps to understand what stands beyond the boundaries of the company and how can a business overcome its fault and enhance its strengths to stay competitive in the industry (Williamson et al, 2003).
The grid above gives us a clear picture that what strengths, weaknesses, threats and opportunities do CPK has (Cpk. com, 2010). Strengths: The organization has evolved to become a brand name. It is a successful business venture and is popular amongst the people. The business is successful and is performing up to the mark. The organization is doing well as well as the culture of the organization makes it stand out from other. The various geographic locations have made it competitive and people have come to know about CPK.
They are serving various products and assorted salads for people of ages and back ground enjoy it. Competitive prices and strong financial position have also made the company stand out. They have been named as one the best 200 small companies in Forbes magazine. They have also been awarded with number one “Most Recommended Casual Dining Chain Restaurant” by Zocalo Group and MARC Research. Weaknesses: Even though the organization is well concerned about its CSR activities, it must also pay attention to wards the special groups.
It must come up with special policies to cater to the minorities. The business of CPK is mostly present in the state of California. They must spread through out the USA to get known. Being concentrated in one state which is 40% of the business does not paint a healthy picture for the future. They must open their stores in other sates of USA. Opportunities: With a great variety of products to offer, the organization is planning to market its frozen pizza in collaboration with Kraft, a well known name in food industry.
It can also come up with more customized food offerings and with local and native tastes in other states. They can tap into other states of US where pizza is very popular. Entering into new markets and offering a different range of food course. This would be a great opportunity for the whole organization. Threats: The threats that can be faced by the organization are of the emerging competitors. Currently, Pizza Hut is the leading pizza outlet which is present over the world.
The competition being faced by CPK is great because if these organizations expand, they can give the organization a tough time and they can overcome CPK. CPK must technological arm it self and it must make use of the emerging technological tools that are used in kitchens and restaurants to enhance the production and reduce the cost of production too. Conclusion SWOT analysis is an important tool and it is very use full in making any strategy for the marketing purpose as well as for the purpose of expanding the business.
For CPK, it would come in handy to help establish certain changes that CPK might plan to bring about when they have analyzed the market as well as the environment (Jenster & Hussey, 2001). References Cpk. com, (2010). Home, Retrieved on August 3rd, 2010 from http://www. cpk. com/ Jenster V. P. , Hussey D. , (2001). Company Analysis: Determining Strategic Capability, USA: Wiley and Sons Publishing Inc. Williamson D. , Cooke P. , Jenkins W. , Moreton. M. K. , (2003). Strategic Management and Business Analysis, USA: Butterworth-Heinemann