Question

Question 1 Being one of the key providers of employment opportunities in Hong Kong, the catering industry has been experiencing some great difficulties in recent years. To be sustainable in the market, a fundamental of strategic marketing is the concept of ‘strategic fit’. For any organization to be effective in implementing its marketing strategies, it needs to be well tuned both to the needs and requirements of customers and to the resources and capabilities it seeks to implement. Select a real-life example from the catering industry, and illustrate how this company presents a good ‘strategic fit’ for its business to be sustainable in the dynamic marketplace in Hong Kong.

Guidelines:

1) Firstly, select one real-life example from the catering industry operating in Hong Kong.

2) Secondly, justify how the chosen company presents a good ‘strategic fit’ from analysing the following three aspects: a) Organizational resources suited to the markets in which it operates; b) Strategy(ies) adapted to the needs and requirements of the market; c) Organizational resources needed for implementation of the strategy(ies).

Answer 1

Select a real-life example from the catering industry, and illustrate how this company presents a good ‘strategic fit’ for its business to be sustainable in the dynamic marketplace in Hong Kong.

Company name: EY (Ernst & Young Global Limited)

Strategic fit: The doing of Business in Hong Kong is not easy for any non-Chinese/ non-Hong Kong origin company. There are so many protests going on from the Hong Kong locals against Chinese Government. The protestors are aiming to free Hong Kong from Chinese Authorization. So, the same challenge EY also facing. EY is US based accounting and Taxation company doing business in Hong Kong from long time. Their main strategies in market are collaboration with local companies, accommodation of the local companies and negotiation with local government. EY is doing business all in ethical way.

Organizational resources suited to the markets in which it operates: Mostly EY is hiring resources from Hong Kong local. The one reason for this is Government policy and another reason is people are not preferring working in Hong Kong because of political uncertainty. For EY, skill and potential employee may be a factor but they are preferring to train new employees (having less relevant experience) rather than hiring more experience candidates.

Strategy(ies) adapted to the needs and requirements of the market: EY when operates in USA, having very different strategies. The strategies are clearer in term of marketing and operations in USA. But in Hog Kong due to ‘Change in Task environment and General environment’, company has adapted 4 new strategies of doing business,

· Negotiation: The negotiation with the local government and Chinese government for establishment of business. Both of the governments are having certain rules like local employment, Taxes etc.

· Collaboration: Due to task environment issue, EY is collaborating with local Hong Kong companies for ease of business doing.

· Accommodation: Merging small firms, sometimes EY is adapting there culture and not forcing to change.

· Leave the deal: If any of above is not working, EY is not going to deal.

Organizational resources needed for implementation of the strategy(ies): The most important thing for employees (especially local) are to control their emotion and behavior in the protests against China. Apart, Employee attitude towards business goal is main player for implementation. EY is training employees to fulfil business goals also to deal with Task environment smartly and effectively. The employee should be aware of the present situation and must gone through all risk analysis determined by EY