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This is the idea report of Small Business Management - Assignment Example

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A feasibility study puts special emphasis to identify potential problems and looks to answer one key question; whether the idea is likely to work or not. Before initiating a new venture, most of the companies, if not all conduct market feasibility study to find out demand of the…
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This is the idea report of Small Business Management
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Download file to see previous pages Market conditions tend to have significant effect on the viability of a business. While conducting market analysis certain strategic tools are required. Keeping the objective in mind PEST analysis of Australia has been conducted. Special emphasis has been to the city of Sydney while conducting a PEST analysis. A part from this the 4 P’s of marketing has also been used to provide a future action plan. The in-depth analysis has been punctuated with a brief market audit of the Australian Restaurant and café market to analyze the present and future market scenario as well as growth opportunities (Burgemeister, 2009, p.25).
Mainly due to the unrestricted spending nature of the restaurants, the industry has come across certain difficulties in trading. Due to the recent economic down turn consumers decided to control their spending and decided to eat at home more of than not. However the preference of gourmet coffee among of the coffee has been quite evidently visible. This is largely due to the fact that the Aussies view quality coffee like a luxury product at an affordable price. If numbers are to be believed more than one billion cups of coffee have been sold in Australia. The percentage of out of home consumption of coffee has seen a steady rise. According to analysts as the economic conditions are set for improvements, steady growth of the café and restaurant business is expected over the course of next five years and so. Such growth is applicable as there is likely to be presence of both international players as well as other franchises (Henry, 2008, p.51).
The café and restaurant industry of Australia can be tagged as highly competitive. The main reasons can be presumed as very low barriers to entry. Add to that the industry is believed to be highly fragmented. According to reports the major players hold less than ten percent of the total market share. The small ...Download file to see next pagesRead More
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