SWOT

Strengths Differentiation Strong Management Human Resource

Policy Fun Culture Excellent Information

Technology Franchise Satisfaction

Weaknesses Liquidity Business 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 number of restaurants

Higher 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