Situational Analysis of BreadTalk Group Inc - Case Study Example

RamenPlay was founded also by the Japanese company Sanpou Co. Ltd. Its founder Yukihiro Kaneko has set a clear vision and strategy towards the development of the brand, placing customers in the first place, and striving to provide “best ramen to the beloved customers” (RamenPlay 2014).

Corporate Culture

While there is not much information given on the corporate culture cultivated in the RamenPlay, it is possible to list the following values and behavior encouraged in the organization:

• creativity and innovativeness – the company has adopted the internal philosophy of a “playday” – everyday employees are encouraged to create new concepts and flavors;
• enhancing customer’s dining and service experience (RamenPlay 2014).

Corporate Stakeholders

There are many different categories of corporate stakeholders. The main stakeholders are:

• Investors – have an influence on management
• Customers – their experience, preferences, and tastes generate demand and thus drive the profitability of the business
• Regulators – their activity regulates the work of a restaurant, sets limitations, or provides opportunities for business development (staffing issues, sanitary issues, taxation, etc.).
• Suppliers/partners – provide products and services to the business in order to support its operations

Corporate Resources

In order to implement its strategy of elevating and enhancing customer’s dining experience, the company employs Sanpou’s Japanese master chefs who have more than 40 years of culinary expertise. These McCoys are recognized to be the best in their field of expertise and it significantly helps the company to gain a competitive advantage (RamenPlay 2014). Thus, collaboration with Japan’s Sanpou Co Ltd enabled the company to differentiate its brand from the competitors by offering authentic Japanese cuisine (Breadtalk Group Ltd - Annual Report, 2012).

Review of Past Performance

The company has generated a profit of $4.97 on every $100 spent on assets. According to experts, it is a normal achievement comparing to the sector average (Macroaxis 2014). In order to achieve good financial results, the company has ensured effective supply and focused on providing the best quality and customer service (RamenPlay 2014). Continuous improvement and innovativeness combined with guaranteed freshness and top quality of the ingredients make the company successful and profitable. The company continues to open new RamenPlat outlets but offers a new design where the focus is made on the rich heritage and culture associated with the Sanpou brand. This emphasis on Japanese authenticity and identity is a pillar of the company’s strategy. Thus, for example, in 2013, the company has modernized the menu of RamenPlay and refreshed the interior décor. Also, the company’s management has introduced a new business cost model which is expected to improve the firm’s productivity (Breadtalk Group Ltd - Annual Report, 2012).

4.2  SBU Customers

RamenPlay operates in the food and beverage industry in Singapore. Below is provided a brief overview of the key trends that have occurred within the F&B industry over the last 5-10 years.

Political: There is a strong level of government support of the food-processing sector. Also, there are no discriminatory taxes for importers, which make their work much easier on the territory of Singapore (Singapore Food & Drink Report - Q3 2011).

Economic: Nominal GDP per capita ($) has practically doubled within the last decades ($33,020 and $ 62,994 in 2006 and 2014, respectively. Unemployment % of the labor force has slightly decreased during the period from 2006 to 2014, 2,8% and 2,5%, respectively (Singapore Food & Drink Report - Q3 2011).

Social: Increased usage and ownership of smartphones and other digital devices have influenced the industry, as well as people, to get more used to use digital devices for e-commerce operations. Also, people have increased the amount of money spent on food consumption and dining out of home (Singapore Food & Drink Report - Q3 2011).

Technological: One of the key trends that have occurred within this industry can be defined as the development of Information Technologies and their integration into the operational activity. The service of customers has become more digitalized as more and more brands offer e-commerce and use of Ipads and smartphones for making an order. By placing iPads at tables in the restaurants, companies have managed not only to reduce the number of staff and thus solve the problems of manpower shortage but also to improve customer service due to improved order processing process and enhanced speed (Serving Up Multiple Brands, 2014).

Analyze market performance in which the SBU is operating. Provide detailed information on the SBU’s key market segments, their growth/decline (provide data on sales, growth, market share, etc. for the past 5 years), and the reasons for this. Use tables/graphs to clearly demonstrate your findings.

4.3  SBU Competition (Use a table format)

List major competitors of the SBU, their market share, or some measure of their relative success and power compared to your own SBU.

Key Competitors

Performance

Key Competitive and Sustainable Competitive Advantages

Dragon City Sichuan Restaurant  

n/a

Nantsuttei Singapore

n/a

Attractive pricing strategy and hot promotions; teamwork

Ramen Restaurant Pte Ltd

n/a

4.4 Key Findings

List the major key findings from your analysis presented in 4.1, 4.2, and 4.3.