Strategies and Plans Adopted by Businesses in the Recession Essay Example
The long-term strategies and short-term plans adopted by businesses in the recession
The recession has different impacts/effects on businesses/organizations as all businesses do not operate in the same market/sector. This causes the need for businesses to come up with strategies and plans for business survival. Strategies and plans adopted by businesses are tactics developed by businesses to aid them reach a particular goal/target. Plans adopted by businesses help them look ahead, focus on key points and prepare for opportunities and problems. Then strategies are developed to assist the aim of the plan to eliminate or reduce flaws to make sure the plan is carried out successfully.
Burger King (BK) and McDonald’s (McD’s) although both operating in the restaurant/fast food market, they both dealt with the recession differently. BK planned to increase sales by drawing in more customers and survive through a pricing strategy change and investments. They sold some of their products at a loss in order to cope with the recession as consumers were looking for cheaper value meals. I think the purpose of this plan was to increase the profitability of the business. This forced competitors to sell their products at a loss to try and increase sales and stop BK from benefiting from the current recession as it has a well-known brand name which spelt trouble for smaller competitor businesses. BK’s low price strategy was heavily skewed towards poorer economic groups in the US who have been hit particularly badly by unemployment this made their prices reasonable and affordable by all income groups. Focusing on customers from the poorer economic group might have helped boost sales as they and other customers not hit by unemployment would be able to make purchases without great concern.
As BK’s sales during the 2006 trading period was weak, they invested $3m to strengthen its UK operation and a marketing push has since paid off. Part of the investment was put towards the
The recession has different impacts/effects on businesses/organizations as all businesses do not operate in the same market/sector. This causes the need for businesses to come up with strategies and plans for business survival. Strategies and plans adopted by businesses are tactics developed by businesses to aid them reach a particular goal/target. Plans adopted by businesses help them look ahead, focus on key points and prepare for opportunities and problems. Then strategies are developed to assist the aim of the plan to eliminate or reduce flaws to make sure the plan is carried out successfully.
Burger King (BK) and McDonald’s (McD’s) although both operating in the restaurant/fast food market, they both dealt with the recession differently. BK planned to increase sales by drawing in more customers and survive through a pricing strategy change and investments. They sold some of their products at a loss in order to cope with the recession as consumers were looking for cheaper value meals. I think the purpose of this plan was to increase the profitability of the business. This forced competitors to sell their products at a loss to try and increase sales and stop BK from benefiting from the current recession as it has a well-known brand name which spelt trouble for smaller competitor businesses. BK’s low price strategy was heavily skewed towards poorer economic groups in the US who have been hit particularly badly by unemployment this made their prices reasonable and affordable by all income groups. Focusing on customers from the poorer economic group might have helped boost sales as they and other customers not hit by unemployment would be able to make purchases without great concern.
As BK’s sales during the 2006 trading period was weak, they invested $3m to strengthen its UK operation and a marketing push has since paid off. Part of the investment was put towards the