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21 8.0 STRATEGIES 8.1ARENA (SAFE CRITERIA) Sakae Sushi’s industry analysis and internal analysis showed depleting competitive advantages and financial ratios resulting decreased group revenue (Businessweek.com 2015). As such, new strategies will create new values that give the company advanced competencies through strengthening the functionality of its operations. In general, restructuring and diversification strategies are identified in aid to maximize business resources, supplement lower costs and efficiency, and being self-sustainable within the company to improve control over supply and demand. Restructuring Strategies Criteria Assessment Expected implications Decision Suitability Acceptability Feasibility Divestment Strategy: Sakae Sushi may sell portfolios that have duplicate branding or non-core businesses. High: Portfolios like Hei Sushi and Crepes & Cream are less prominent. Selling such portfolios aid the main business of Sakae Sushi with more cashflow for other operation uses. Moderate: The sale of secondary portfolio brands may give other business competitors chance of entry or competitive parity towards Sakae Sushi. Stakeholders may be skeptical towards the idea. Moderate: The brand equity of these businesses is low. Buyers may not be willing to pay, as the possibility to start a new brand is comparatively visible too. - Operational expenses will be reduced. - The company can have more cash liquidity to better utilize. - More resources focus on the main business.No Downscoping Strategy: Sakae Holdings should close less profitable businesses to be more focused with main brand (Sakae Sushi). High: Sakae Sushi’s current market position is a warhorse; though representing Sakae Holdings main revenue. Reducing businesses to redirect focus on Sakae Sushi will allow the company to cut long-term losses over duplicated brands. High: Reduced company revenue is contributed by high operating costs of additional outlets. Stakeholders in concern for group revenue will be supportive to reduce losses for more profit. High: The various brands diversification did not make more profits but contributed to operating expenses. Eliminating less profitable portfolios will loosen up finances and enables more directional use of resource allocation. - Confused positioning is eliminated. - Resources can be better utilized with lesser “distractions”. - Defense against fierce competition amongst competitors can be strengthened. Yes Downsizing Strategy:Low: Most of Sakae Sushi’s Moderate: Downsizing will provide an Low: Reducing workforce - Sakae sushi could enjoy a short-term increase in profits.
22 Sakae Sushi to reduce the size of workforce within the company.