Case Study : Sylvia's Bar - Essay Example

Download file to see previous pages It is found that the bar in recent times has started accounting a lot of problems both in its financial, structural, marketing and human resource sectors that in turn made the firm start gaining losses. The paper herein would tend to study in depth the causes of the bar’s downfall and thereby render some positive recommendations to revive its past stature. The Analysis of Falling Profits and Recommendations Thereof It is found that the bar from the period tending from 2005 to 2007 reflects a continuous fall in monthly profits from a whooping 3500 Pounds Sterling to only 750 Pounds Sterling. Comparing again on the basis of a year to year fall it is found that the profits of the bar had reduced by 20 percent from the 2005 to the 2006 period while again from the 2006 to 2007 period it had recorded a fall of profits in around 73 percent. However the bar again from the 2007 to 2008 period gained a rise of around 38 percent in profits thus reflecting a chance to revive. From the period ranging from 2008 to 2011 the firm not only started declining its profit position but finally slumped down into heavy losses of around 250 Pounds during 2010 and 400 Pounds during 2011. The above facts reveal that the firm is steadily suffering the effects of some grave internal policy decisions that are causing the heavy downfall in profits. High Costs of the Menu It is found that the high street bar Sylvia only focuses on the preparation of expensive foods and drinks for its consumers. The prices for the main courses are found to range from 23 Pounds and rise up to 35 Pounds. In that the bar needs to conduct large amount of promotion to highlight its niche image to the consumers of being a high priced store only focusing on the delivery of high class products. Further apart from investing on print and visual communication to enhance its high class image the bar can also go for designing its interiors accordingly and rendering a boutique look into it. Working on a particular theme with enhanced store atmospherics using colours and sound effects the store can focus on gaining larger footfalls. On the contrary the high street bar Sylvia can help form another category of food products that would be priced in a moderate manner ranging from 12 to 18 Pounds and would involve the same kind of quality and service offered to the customers. Separate packages can also be rendered that would help the bar in gaining both expensive and moderate consumers. This strategy would certainly work in reducing the amount of food wastage by Sylvia. Similarly it is also found that the prices of cocktail and wine drinks are also charged quite heavily and above the market average. The prices charged for the cocktail and wine drinks by Sylvia are more or less the double of the ranging market prices. Herein also the bar is required to create a niche market or association for consuming such high class products while also making area for moderate consumers to gain access to such drinks. This policy would help the company gain a larger number of consumers and thereby help to gain both in revenue and sales profits (Porter and Prince, 2010). Salaries and Conditions of ...Download file to see next pagesRead More