Aramark
Use this company website. https://www.aramark.com/. Fill in the worksheet attached using Aramark Corporation. There is task #1 and task #2. Fill out all parts for each task.
MODULE 5 | Assignment
Task #1
The magazine Fortune site presents a well-recognized ranking of the major corporations operating in the US, the Fortune 500, and this assignment consists of researching the generic strategy those corporations follow. Please sew below the instructions:
- Go to the Fortune 500 site and select 1 corporation to research.
- Identify the selected corporations in the discussion site for it. Please, use the number in the ranking in 2019 and the name of the corporation (e.g. 12 Ford Motor). You cannot repeat the corporations already taken by other students or the example I use here (first coming, first serving).
- Go to the site of each corporation and find the link to the corporate site. The corporate site is not always easy to find, it is usually mentioned at the end of the page. So you may need to develop your skills as a researcher. For example, in the case of the Ford site (https://www.ford.com/), you can read “Corporate” under the menu “Experience Ford” at the right bottom of the page, click on it and you will be taken to corporate site (http://corporate.ford.com).
- Then, find the “About US” in the top menu of Ford corporate site. Other corporations may have an equivalent name, For example, “Our Story” or “Our business”.
- Finally, find the mission, vision, objectives, and or principles. Then, complete the following:
1. Describe the most possible generic strategy followed by the corporation. Mention the evidence you find from the corporate site.
2. Evaluate the firm position vis-á-vis Porter’s Five Forces (see the “Improving competitive position vis-á-vis the five forces, for each generic strategy, in the textbook for additional explanations)
Table 1. Firm position vis-á-vis Porter’s Five Forces
| Force | Evaluation |
| Competition
|
|
| Buyers
|
|
| Suppliers
|
|
| Entry barriers
|
|
| Customers
|
3. Identify the most possible stage of the industry Life Cycle to which the corporation belongs (see Exhibit 5.6 in the textbook for additional explanations)
Table 2. Stage of the industry Life Cycle
| Factor / Stage | Write here the name of the stage |
| Generic strategy | |
| Intensity of competition | |
| Emphasis on product design | |
| Emphasis on process design | |
| Major functional areas concern | |
| Overall objective |
4. Analyze the possible pitfalls of the generic strategy followed by the corporation
Task #2
Describe what would be the role of each functional area manager in executing the generic strategy of the corporation selected. Use table 3.
The most common area manages:
- Accounting manager
- Finance Manager
- Human Resources Manager
- Marketing Manager
- Operations Manager
- IT Manager
Review the samples of job descriptions of the most common functional areas managers in the following website:
- Linkedin: Job description template
- Indeed: Job Description examples
Table 3
Area manager |
What would be the role in the strategic process? |
| Accounting Manager
|
|
| Finance manager
|
|
| HR manager
|
|
| Marketing manager
|
|
| Operation manager
|
|
| IT manager
|
ANSWER
MODULE 5 | Assignment
Task #1
The magazine Fortune site presents a well-recognized ranking of the major corporations operating in the US, the Fortune 500, and this assignment consists of researching the generic strategy those corporations follow. Please sew below the instructions:
- Go to the Fortune 500 site and select 1 corporation to research.
- Identify the selected corporations in the discussion site for it. Please, use the number in the ranking in 2019 and the name of the corporation (e.g. 12 Ford Motor). You cannot repeat the corporations already taken by other students or the example I use here (first coming, first serving).
- Go to the site of each corporation and find the link to the corporate site. The corporate site is not always easy to find, it is usually mentioned at the end of the page. So you may need to develop your skills as a researcher. For example, in the case of the Ford site (https://www.ford.com/), you can read “Corporate” under the menu “Experience Ford” at the right bottom of the page, click on it and you will be taken to corporate site (http://corporate.ford.com).
- Then, find the “About US” in the top menu of Ford corporate site. Other corporations may have an equivalent name, For example, “Our Story” or “Our business”.
- Finally, find the mission, vision, objectives, and or principles. Then, complete the following:
1. Describe the most possible generic strategy followed by the corporation. Mention the evidence you find from the corporate site.
The most possible generic strategy used by Aramark is the cost leadership strategy. From the company’s website, it is evident that the company has a very efficient value chain management. The primary target market of the company is the middle class, which makes up the largest proportion of the general consumer market mix in many countries and regions. The affordability of services is highlighted in all the marketing information provided on the site. Also, easy accessibility is a key component of the marketing information provided. When easy accessibility and affordability are combined, they result in high brand awareness and development of competitive advantage.
2. Evaluate the firm position vis-á-vis Porter’s Five Forces (see the “Improving competitive position vis-á-vis the five forces, for each generic strategy, in the textbook for additional explanations)
Table 1. Firm position vis-á-vis Porter’s Five Forces
| Force | Evaluation |
| Competition
|
The organization operates in a highly competitive specialty eateries industry, which means that it experiences a strong force of competition. This can take a toll on its long-term profitability. |
| Buyers
|
Since the buyers have many available options to choose from, they are a very demanding lot that wants to get the best services available at the most affordable cost. The buyers are a strong force, with the power to demand discounts and offers or switch to other companies. |
| Suppliers
|
Aramark buys its raw materials from many suppliers. The bargaining power of supplies is moderate since the company buys in bulk and can negotiate for better deals with the suppliers or switch to different suppliers. |
| Entry barriers
|
The threat of new entrants in the specialty eateries industry is moderate since there are minimal entry barriers. The industry has a majority of small scale companies that easily compete with Aramark. The company has to build barriers by safeguarding its competitive edge. |
| Substitute Products/ Services
|
The threat of substitute products and services is high in the specialty eateries industry but low in the other industry segments that Aramark operates in. |
3. Identify the most possible stage of the industry Life Cycle to which the corporation belongs (see Exhibit 5.6 in the textbook for additional explanations)
Table 2. Stage of the Industry Life Cycle
| Factor / Stage | Write here the name of the stage |
| Generic strategy | Growth Phase |
| Intensity of competition | Maturity Phase |
| Emphasis on product design | Maturity Phase |
| Emphasis on process design | Growth Phase |
| Major functional areas concern | Growth Phase |
| Overall objective | Maturity Phase |
4. Analyze the possible pitfalls of the generic strategy followed by the corporation
Possible pitfalls of the cost leadership strategy used by Aramark include the possibility of the firm’s position being threatened by technology, with competitors offering less expensive or new services and products through the use of the latest production and service technology. The competitors may also threaten the firm’s position by using a differentiation strategy to offer differentiated services and products.
Task #2
Describe what would be the role of each functional area manager in executing the generic strategy of the corporation selected. Use table 3.
The most common area manages:
- Accounting manager
- Finance Manager
- Human Resources Manager
- Marketing Manager
- Operations Manager
- IT Manager
Review the samples of job descriptions of the most common functional areas managers in the following website:
- Linkedin: Job description template
- Indeed: Job Description examples
Table 3
Area manager |
What would be the role in the strategic process? |
| Accounting Manager
|
Enabling smooth operations, ensuring compliance with financial policies, and contributing ideas on how the company can make cost savings. |
| Finance manager
|
Distribution of financial resources of the company per the cost minimization policies and offers the executive management team support through the provision of financial advice for best business decisions. |
| HR manager
|
Plans, directs, and coordinates the administrative roles, overseeing hiring, recruiting, and interviewing of employees. Also consults with the top executives on strategic planning to execute the organizational strategies. |
| Marketing manager
|
Develops marketing plans and strategies that highlight the affordability and easy access to the company’s services and products. |
| Operation manager
|
Coordinates and plans for all the production, distribution, and marketing of services and products to ensure low operational costs and enable services to be offered at low prices. |
| IT manager
|
Coordinating, planning, and leading computer and technology-related activities. Determining the company’s IT needs to ensure that the company acquires the latest and most efficient technology for service delivery to minimize costs. |
