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A PROJECT ON

COMPETITORS PROFILE MATRIX IN FAST FOOD INDUSTRY

In The Subject
STRATEGIC MANAGEMENT

Submitted By
SAHIL DILIP DHABALIA

PGDBM SEM 3
DIV D FP 438

Under The Guidance of


Prof. DIPESH MAITRA

To
N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH
For
PGDBM
In
FINANCE
BATCH 2014-2016
N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

SRISHTI SECTOR-1, MIRA RD. (E).


MUMBAI 401 104.

ACKNOWLEDGEMENT

Projects have always been fun Learning experience, but with growing age, at this Masters Level,
it surely demands corporate and depth Approach. This project was a great learning experience
and I take this opportunity to acknowledge all those who gave me their invaluable guidance and
inspiration provided to me during the course of this project by my guide.

I would also thank the project guide Prof. Dipesh Maitra who gave me this opportunity to work
on this project which provided me with a lot of insight and knowledge of my current curriculum
and industry as well as practical knowledge as well as constant guidance over the projects and
curriculums.

I would also like to thank the library staff of N.L. DALMIA INSTITUTE OF
MANAGEMENT STUDIES AND RESEARCH for equipping me with the books, journals

and magazines for this project.

I would also like to thank my friends and fellow students who helped me in the cause of
the project.

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION TO THE REPORT

Markets today have become one of the most competitive market since the history recorded. The
Product life cycle has been contracting as the years pass away. Pre economic reforms in India
there were products who enjoyed larger PLC which is exemplified by Hindustan Motors
Ambassador or Kodak.
Things have changed now as the markets have become more competitive and customer oriented.
Organizations try to fulfill the needs of the consumers rather than just dominating the market
with same un-innovated products.
One of the main reason behind this paradigm shift in the market is the growing competition
which leads to the urge for invoking innovation and efficiency in the business. Thus to study nd
overcome competition one of the most widely used tool is the Competitors Profile Matrix
(CPM).
Thus the report has been focusing on CPM analysis taking Fast Food Industry for analysis taking
a sample of Starbucks, MacDonalds, Mad Over Donuts and a fictitious company for comparison
sake FFK ( Fast Food King).
The report provides an in-depth analysis of various parameters or rather critical success factors
of measuring or tracing the success of the business with further analysis of priority given to each
parameter. According to the weights given an overall score will be derived stating the position of
the business in the market. An explanation of each and every parameters importance and
performance will also enhance the impact of the report.

CHAPTER 2: RESEARCH METHODOLOGY


2.1 Data Collection:
Broadly classifying there are 2 sources for collecting data, viz, Primary and secondary data.
Distinctively in this report none of the sources of the data collection have been utilized as all the
data plugged in are fictitious for better understanding of each and every critical success factor of
the Fast food Industry.

2.2 Sample selection:


The industry sample taken in the project are a combination of random as well industry leadership
in India. Thus the samples taken are Starbucks, Macdonalds, Mad over Donuts and FFK.
FFK (Fast food king) is a fictitious company just created for a better understanding and
implication of CPM in the report.

2.3 Research Method:


The steps involved in the CPM model of the report are better explained below:
Step 1: The parameters, i.e., the critical success factors of the fast food industry are been
stated.
Step 2: The above parameters stated are then given a weightage according to their
importance in the performance of the business.
Step 3: As per the success of that particular parameter a score has been given to the
business.
Step 4: All the individual scores are then multiplied with their respective weights and a
total score is derived for that particular business.
Based on the overall score a conclusion is drawn on the business strategy and a detailed
explanation has also been provided for each and every parameter in depth.

CHAPTER 3: COMPETITORS PROFILE MATRIX (CPM) ANALYSIS:


3.1 INTRODUCTION TO CPM:
Definition:
The Competitive Profile Matrix (CPM) is a tool that compares the firm and its rivals and
reveals their relative strengths and weaknesses.
Understanding the tool:
In order to better understand the external environment and the competition in a particular
industry, firms often use CPM. The matrix identifies a firms key competitors and compares them
using industrys critical success factors. The analysis also reveals companys relative strengths
and weaknesses against its competitors, so a company would know, which areas it should
improve and, which areas to protect.

Using the tool


Step 1. Identify the critical success factors
To make it easier, use our list of CSF and include as many factors as possible. In addition,
following questions should be helpful identifying industrys CSF:

Why consumers prefer Company A over Company B or vice versa?

What resources, capabilities and competences firms possess?

What sustainable competitive advantages companies have in the industry?

Why some companies succeed and others fail in the industry?

Step 2. Assign the weights and ratings


The best way to identify what weights should be assigned to each factor is to compare the best
and worst performing companies in the industry. Well performing companies will usually
undertake activities that are significant for success in the industry. They will put most of their
resources and energy into those activities as compared to low performing organizations. Weights
can also be determined in discussion with other top-level managers.
Ratings should be assigned using benchmarking or during team discussions.
Step 3. Compare the scores and take action
You should compare the scores on each factor to identify where companys relative strengths and
weaknesses are. In our first example, Company A had relative strength in level of product
integration, product range and variety of distribution channels. Therefore, Company A should
protect these areas while trying to improve its weaknesses in sales per employee and market
share.
The company should also improve its strategy to become more successful in the industry.

Benefits of the CPM:

The same factors are used to compare the firms. This makes the comparison more
accurate.

The analysis displays the information on a matrix, which makes it easy to compare the
companies visually.

The results of the matrix facilitate decision-making. Companies can easily decide which
areas they should strengthen, protect or what strategies they should pursue.
3.2 CPM ANALYSIS OF FAST FOOD INDUSTRY:

The industry sample taken in the project are a combination of random as well industry leadership
in India. Thus the samples taken are Starbucks, Macdonalds, Mad over Donuts and FFK.
FFK (Fast food king) is a fictitious company just created for a better understanding and
implication of CPM in the report.