Quick is the largest European chain of fast service restaurants. But if we compare quickly with its main competitors – Mc Donald's and Burger King – we could say its major risk is to be eaten by those two “big burgers”. This report is going to treat the difficulties for such a “small” company to expand oversees by analyzing two majors risks.
Enterprise-wide risk management is a key issue for boards of directors worldwide and Quick does not escape to this view. Its proper implementation ensures transparent governance with all stakeholders' interests integrated into the strategic equation. Furthermore, risk quantification is the cornerstone of effective risk management, at the strategic and tactical level, covering finance as well as ethics considerations.
That is is why, in this report we are going to analyze first the situation of QuIck, which could be considered as a “baby” on the fastfood market. With 423 restaurants worldwide and existing since 30 years, Quick really needs to expand in order to remain and be competitive on the international market. Purchased by a french OPA in 2006 – OPA realized by the CDC CI, which a French financial organism – Quick is then in a strategy of internationalization. Thus, in this report, I am going to analyze two major risks Quick has to be face. First risk I analyze is the risk of European disease and the second risk is the strategy of internationalization – I use Quick Russian project of expansion as an example. Both downside and upside risks are assessed to select the most efficient risk control measures and to set up efficient risk financing mechanisms.
[...] Solution analysis get the strategy 3.1 Solution Identify “solution tree” Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories: Avoidance (elimination) Reduction (mitigation) Retention (acceptance) Transfer (buying insurance) In this case, we could imagine that the best way to act is to accept the risk. Indeed, this risk is unpredictable and consequently, could be not controlled. The company could transfer the risk by buying insurance but I think that such an insurance would be very expansive because of the unpredictability of the risk and of its consequences and then this insurance would be not efficient if the consequences turn in real disaster. [...]
[...] Quick doesn't know Russian market, and consequently such “problems” could happen to the company Evaluate: qualitative analysis 1. Impact on strategy If Quick could not build whole restaurants it decided, the major risk is to miss a market. Indeed, McDonald's is already present in Russia and Quick has to get fast actions in its international implementation to remain competitive. Remaining competitive involves a mass penetration. Quick could not just set up one restaurant in a country such Russia as it did in Algeria. [...]
[...] Quick's success at this is proven by the relative low turnover at Quick: More than 30% of employees in France and close to 40% of employees in Belgium have more than two years' seniority with the company. Operational objectives: middle management SMART: Specific, Measurable, Acceptable, Realistic, Told. There are three levels in restaurant's hierarchy: At the down, there is the team member, who is the first person that customers have contact with at Quick. His main responsibilities are to welcome customers and to prepare and sell products in line with Quick norms and service standards. [...]
[...] Quick also seeks people with real management talent. Training Quick and its franchises in France and Belgium employ more than 15,000 people, all working in a company guided by its signature values: excellence, evolution, exemplarity and enthusiasm. To strengthen this entrepreneurial spirit over the long term, Quick has to offer motivating careers and to promote quality training for everyone within the organization. The search for excellence allows the company and its employees to grow and to enrich their skills, acquiring new talents and putting Quick know-how to use. [...]
[...] That is why in a first time, I am going to analyze the program risk management of Quick, then I will describe two major risks and finally and I will find concrete solutions to these risks. Summary I. Program risk Management 1. Planning goals 2. Organizing / Purpose II. Risk analysis 2.1 Descriptive analysis 2.2 Risk Risk 2 III. Solution analysis 1. Solution Solution 2 REFERENCES I. Program risk Management What the company wants to do 1. Planning goals: Vision, mission, strategies (Management for long-term) Vision and mission Quick is the largest European chain of fast service restaurants. [...]
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