STRATEGIC PLANNING AT MECO EATS COTTAGE LTD

Mr. Mukasa and Mr. Econyu own a modern eatery (Meco Eats Cottage Ltd) housed in Metropole house along Entebbe road in Kampala city. The company has four business lines: pizza, confectionary products, non-alcoholic beverages and Fried Chicken. The pizza products are the highest revenue generating business unit. It replaced the sales of non-alcoholic beverages that used to generate the highest revenue but had stagnated due to the many new shops opened around the city. The market for pizza has continued to grow at the rate of 30% per annum with the increasing size of the middle class in Uganda and the future looks bright. The confectionery business is the oldest business but whose market has declined due to the sugar concentration in the products as well as its association with junk foodies. The Fried Chicken Business is the most recent business line to be introduced by Meco Eats Cottage Ltd and is only six months old. However, the market for Fried Chicken has been growing steadily over the years attracting such large layers as KFC. However, due to its newness Meco Eats Cottage Ltd market share in this sector is still very small.

A number of factors have affected the operation

Meco Eats Cottage Ltd has the challenge to compete favourable in each of its business lines and choose the most relevant strategy for each business. The pizza business enjoys considerable strategic position in its external environment. In this environment its greatest industry strength is the huge growth potential, followed by two factors, that is, its huge financial resources and mastery of the pizza preparation technical know-how. Its last industry strength is the relative difficulty in entering the business as many Ugandans lack the required knowledge to prepare pizza and operate a pizzeria despite the government liberalization and deregulation of the sector. The pizza business units environmental strength consists of (i) availability of machinery for preparing pizza; (ii) Transportation costs when delivering pizza; (iii) rate of inflation that affects the price of imported inputs; and (iv) price variability. The mushrooming of various food technologies in the foods and beverages sector spurred by government positive policies, has provided immense opportunities in the industry.

The internal environment of the pizza business unit at Meco Eats Cottage Ltd is also characterized by a number of factors. In relation to Financial Strength, Meco Eats Cottage Ltd best strength is its high level of liquidity that is also matches with its level of Cash flows. It enjoys positive Return on Investment (rate at 3 out of 6) and considerable working capital levels. In the same internal environment, the pizza business enjoys Competitive Advantage in terms of high level of product quality, considerable market share, fair brand image and relatively poor control over suppliers and distributors.

Required:

Propose

a).A Vision Statement for Meco Eats Cottage Ltd

b).A Mission Statement for Meco Eats Cottage Ltd

c).Given the environment described in the Case study above, propose two Strategic Goals that Meco Eats Cottage Ltd could validly pursue. Justify your choice

d).For each of the Objectives identified in 20 above, propose two SMART objectives that the company could pursue. Justify youre answer