The paper "Strategic Management of the Benihana of Tokyo " is an outstanding example of a management case study. Strategic management refers to all the processes involved in the control of organizational processes through leadership and administration processes (Slack, 2013). This management, Foss & Knudsen (2013) postulates, involves various aspects of strategic planning and implementation of strategic plans by firms with the aim of improving their operational outcome and market performance. Improvements, in this case, would be determined by positive returns on income and increased levels of competitive advantage that allow the firm to strongly participate in the market.
Achieving strategic management incorporates various strategic measures that are key to the attainment of organizational goals. Such strategies, according to Harrison & John (2013), include; identification of challenges and opportunity, controlling organizational changes, effective handling of the operational environments and management of knowledge, resources, risk and outcome, managing competition among other things. This perspective paper analyses two case studies with the aim of providing insights into strategic management practice as used by the Benihana of Tokyo and Barrick Gold Corporation. Notably, various differences in strategic management may occur as a result of the difference in organizational management and different industrial operations of the companies, with the Benihana of Tokyo categorized under the hospitality industry and Barrick Gold Corporation, the mining industry. Case Studies Summary The Benihana of Tokyo case study examines the development of the Benihana of Tokyo from the inception stage until the later developments into restaurant chains.
Notably, the study ventures into identification and explanation of management strategies employed by Hiroaki Aoki, the CEO, in establishing a successful Japanese restaurant in a foreign country, the US. On the other hand, the Barrick Gold Corporation case study deals with the developments of the Barrick Gold Corporation in the Pascua Lama Project.
The study examines the various challenges facing the corporation as a result of various external influences such as political and public resistance to the project. It furthers focuses on the strategies used by the company in countering these challenges with the aim of improving their outcome and market performance. Using these two contrasting studies; one seemingly noting strategic management practice in a more positive environment as in the Benihana of Tokyo and the other in a rather harsh environment as in Barrick Golf Corporation, management strategies are clearly exemplified. Competition In business operations, market competition is inevitable (Goetsch & Davis, 2014).
As such, most companies strategize on measures to gain competitive advantages in order to effectively compete with their peers in highly competitive markets. One such strategy is in attracting customer preferences and loyalty through service and product quality ( Hubbard, Rice & Galvin, 2014; Stead & Stead, 2015). I determining the profitability potentials of companies, the five forces model analytical tool is helpful.
This tool is founded on the principles of Porter’ s Five forces analysis that analyses the suppliers' bargaining power, buyers' bargaining power, industrial rivalry, substitute product threats, and potential new entrants threats. All these forces, in effect, are considered influential in the competitive industrial performance (Hill, Jones & Schilling, 2014). As such, strategic considerations of the forces are imperative in designing management strategies for effective market performance. In the Benihana of Tokyo case, for example, the buyers have a high bargaining power due to the high number of restaurants.
Additionally, the suppliers also have a high buying power due to quality demands. There being several hotels, restaurants, and fast food services, the firm faces strong competition from its peers in the industry, hence, strong industrial rivalry. Specializing in a unique style of meal preparation and focusing on it as their core value reduces the substitute product threat. However, with new hotels and restaurants cropping up at a faster rate despite the high capital investment and production costs, the threat of new entrants is high.
Considering these factors, Benihana of Tokyo operates in a highly competitive business environment. As such, various strategies in management would be essential in building and sustaining a competitive advantage. Strategically, the firm relies on specific suppliers who deliver quality products through which they use to prepare quality meals for the consumers. Additionally, having conducted an in-depth study of the American food behavior, the Benihana of Tokyo specialized in the Tappenyaki table style of cooking to attract more customers who have a preference of watching their food prepared in the styles of their choice.
As a result, the Benihana of Tokyo has attained market success, taking a very short time to break even and continue generating profits, with the overall success being measured in the increasing chain size.
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