Cyperplay

Cover Letter

_____________

_____________

_____________

Dear Sir /Madam

Greetings

At the request of __________________ to conduct a study on your organization , I would like to present the results of the said study Our research covers an in depth analysis of the administrative and strategic situation of Sonic Corp

I would like to thank ________ for providing us the information about Sonic Corp . The information allowed us to get a comprehensive situation of the subject

I hope that the result will have a significant input to your

organization 's development

Thank you

Respectfully yours

Shannon Cook

Table of Contents

I . Executive Summary

II . Situation Analysis Environment

Industry

Firm

Marketing Strategy

III . Statement of the Problem

IV . of Strategic Alternatives

V . Selection of Strategic Alternatives

Statement of Selected Alternative

Justification for Selected Alternative

Recommendations

VI . References

Executive Summary

The case describes the administrative and strategic situation of Sonic Drive-In , the largest drive-in chain in the United States . The company is considered a significant competitor on the core markets of the fastfood industry . Despite heavy competition , the management of Sonic is able to turnaround its poor financial performance into a 400 million revenue earner last 2002 . It also leads the industry in terms of real sales growth since 1987

The restaurant industry in the U .S . is also described . The fast food industry is classified into two segments : the full service and the quick service restaurants . Restaurant operations of the leaders in the industry is also presented . Despite the growth of the restaurant industry , there are several indications that the U .S . market is saturated . Competition is very stiff leading fastfood chains to expand out of the country . Demographic and societal trends also resulted to change in demands for fast-food chains

Sonic as a company has evolved also in many ways . From a prototype drive-in in 1953 it has already 2 , 432 chains all over the world although most of its operations is still based in the U .S . Under the management of Cliff Hudson , several initiatives has been implemented Franchise and employee relations has been improved , product innovations were offered , and marketing campaigns has been introduced . Marketing strategies were also changing directions . Marketing expenditures and brand management became an important component for their aggressive marketing campaigns

Sonic has enjoyed success despite economic difficulties and Hudson believes that it is positioned to deliver up to 20 percent growth in revenues per share based n the 1-3 percent store sales growth . However the financial position is not tailored to fund growth given that there will be decrease in sales . One issue faced by Sonic is how to sustain financing with its planned growth . Another challenge faced by Sonic is how to gain cost advantage since competitors continue to improve its technology and systems to gain such . The investment approach of Sonic to sustain its growth and profitability is considered as the problem in the case

Alternative recommendations were made and strategic implementations were formulated to support realism on the analysis of this case...