Sonic Power Point Slides

SWOT 

Strengths



Weaknesses

 Differentiation

 Liquidity

 Strong

 Business

Management  Human Resource Policy  Fun Culture  Excellent Information Technology  Franchise Satisfaction

Model (Limitation of current model to open only in warm climate areas)

SWOT 

Opportunities  Broaden

Menu  Partner and expand to non-core markets by creating Sonics express non-drive in for cold weather areas.  Continue to build in developing markets  Attract younger generations



Threats  Low

entry barriers  Aging population  Competitors (All food providers, mom and pop restaurants, McDonalds, Wendys)  Lower startup costs for competitors entering the market

TOWS 

SO  Customer

satisfaction and loyalty supports expansion



WO  Change

business model by adding a sonic express



ST  Utilize

existing franchises to experiment with healthier products

CURRENT STRATEGY Market expansion Differentiation Development strategy

Market expansion: a multilayered growth strategy design to diversify potential and strengthen profitability  Increased  Higher

number of restaurants

media expenditures

 Unification

of chain operations

Differentiation: The specialty menu allowed the chain to: -differentiate itself from other fast-food outlets -avoid price wars with its major competitors Points of quality (aluminum foil, Styrofoam cups) The differentiated concept consists of personalized, fast, and convenient carhop service as well as unique menu items

Development strategy Relies on: Franchise expansion  Same-store sales increases (low risk, high return) 

WHEN WAS THE STRATEGY LAST CHANGED? In 1995 Sonic introduced “Sonic 2000” an aggressive multi-layered strategy to further unify the company in terms of a consistent menu, brand identity, product, packaging, and service.”

CORPORATE CULTURE   

Create a positive environment for employees The promise of a positive work culture and comprehensive benefits The annual Dr Pepper Sonic Games created to motivate employees, enhance performance, develop customer service skills, and promote employee retention

Is the company involved in a planned change program? Install new IT system to centralize information for better reporting and communication  Change store layouts/facade 

IS THE MIS EFFECTIVE? 

The company’s management information system and use of information technology are effective.

Sonic attributes its successful operations to five essential components:     

A multilayered growth strategy A highly differentiated concept An accelerated expansion program Solid financial performance Corporate Culture - Training