Strategic Planning

Strategic Planning

Introduction

The company, FreshDirect was found by Jason Ackerman and Joseph Fedele in 1999. The company started as an online grocery. The main strategy of the company was made after analyzing the failed strategies of other companies to build up an online grocery. The main idea of the company is the elimination of the middleman. The company takes orders in advance and goes for made-to-order model. The company prepares the food itself which means cost-effectiveness and less wasteful process than a regular grocery store.

Mission

The simple mission of FreshDirect is “high quality and lower price”. The company believes in utilizing modern techniques and innovative ideas for the provision of superior solution for customers.

Vision

The vision of FreshDirect is to focus on the wants of the customers and prepare the customers' database on a regular basis such as on daily, weekly and monthly basis. FreshDirect aims to expand their business along with managing their capital.

The External Environment

For the analysis of the business strategy, analysis of external environment is important. This analysis helps the company to look into the detailed external environment of the company and it also helps the company to build strategies focusing on its competitive edge and success. For the analysis of the general external environment, PESTEL analysis is conducted which is discussed as follows (Gersick, 2001).

Political factors

FreshDirect requires having a consideration for traffic congestion charges. It must also analyze and evaluate the penalties occurred from the parking violations. The strategy implication for political factor is to have detailed planning and analysis for the increment in the delivery charges received from customers to cope the financial requirements. The company is still requiring coping up with the violations of parking problems.

Economical Factors

The economical factors affecting FreshDirect is the increasing costs of fuel and lower prices because of the elimination of middle man. The strategy required for the economical factors is that FreshDirect has no middleman. Therefore, the company saves the management costs. As for the increment in fuel costs, the company is required to keep the pressure balanced on the customers.

Social Factors

The social factors affecting the FreshDirect Company are the unemployment increase and FreshDirect amount of wastage food. The key strategies for the social factors are that FreshDirect is required to create full time private sector jobs for the elimination of unemployment as much as possible. The company makes sure, at its level best, that any surplus food is distributed to the needy people. The company already donates the used kitchen cooking-utensils for use in non-toxic diesel fuel.

Technological Factors

The FreshDirect technological factor is software. The software of FreshDirect includes house of E-customer, service production, advance food technology and state of art production. The key strategies required for FreshDirect comprise of maintaining the advanced technology along with the implementation of innovative technology to keep better technology than the competitors in the market. The innovative technology will give FreshDirect a competitive edge.

Environmental Factors

The environmental factors comprises of FreshDirect cardboard packing paving way for visual ...