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Sylvia's Bar Analysis - Essay Example

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Sylvia’s Bar Table of Contents Table of Contents 2 Introduction 3 Analysis of the Current Situation 4 Recommendations 7 Conclusions 9 References 10 Bibliography 11 Introduction Sylvia’s Bar is a night club and high street bar situated in Birmingham. The bar was established in 1986 and initially its target customers were local bank employees…
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Download file to see previous pages The staffs at Sylvia’s bar were trained in cocktail from South Birmingham College and thus their salary was much higher than market standards. The band that was performing in Sylvia’s Bar was initially very popular but gradually people have started losing interest and do not like the performance of the band any more. As a result, the bar is not being able to even recover the cost of hiring the band. Competition has also intensified with time making it difficult for Sylvia’s Bar to make their mark amidst competition. A staff and customer survey had been conducted. The customer survey revealed that they did not consider the price of food and drinks justified and they did not like the ambience in the bar. The staffs also do not enjoy working in the place since the work environment is too formal. Analysis of the Current Situation All organisations have a business strategy for success. The business strategy of an organisation revolves around making money and increasing profits of the organisation. Businesses make plans for increasing profits but often fail to execute those plans. Businesses which have been very successful have always stressed on ethical behaviour and performance and have laid down clear expectations which have helped them to achieve success. The key to success for businesses lies in their structure. Successful businesses have a fast, flexible and flat structure. The absence of too many hierarchical layers improves the information flow in the organisation. The other key to success lies in the recruitment of talented employees. Successful organisations try to retain their talented staff and provide them training to enhance their skills and make them capable of multitasking. Effective leadership also ensures success in a company. Innovation is extremely important for an organisation since it helps them to stay ahead of competition (Behe, 2008). It has been observed that companies in the hospitality industry especially restaurants and bars face failures which can be categorised based on the managerial, marketing and economic perspective. Managerial failure results from the management’s incompetence whereas marketing failure results from marketing reasons namely changing demographics, product portfolio realignment and repositioning among others. Economic failure occurs when profits and revenues are diminishing. Restaurants just like other businesses also pass through distinct life cycle stages. The most vulnerable stage is the first stage. Consequently, most restaurants fail during the initial years due to the fact that they lack resources and thus cannot easily adapt to changing conditions. The competitive environment of a restaurant in terms of its location, growth and how they differentiate themselves from their competitors determine their success. Often new restaurants fail because they lack proper planning, face cash constraints and are unable to compete with big players. Size and survival has a direct correlation in restaurant industry and so bigger players have a greater chance of survival. The restaurant’s location in the market, their proximity with competitors and ability to differentiate themselves from their competitors determine their long-term survival. Most restaurants fail due to their inability to adapt to changing market trends. Various internal factors like managerial inefficiency and incompetency lead to failures (Parsa & et. al., 2005). ...Download file to see next pagesRead More
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