Case Analysis: Fork and Dagger Critique - Essay Example

Case Analysis: Fork and Dagger al Affiliation) CREST Struan’s hospitality and food industry were competitive. Initially in Struan, there were no firms offering food and pub services under the same roof. Fork and dagger capitalized on the broad market to attract its clients (Bauzerar & MacKenzie, 2012). The company invested heavily in television sets and cable subscription a thing not embraced by the rivals. The primary competitors were the restaurants who only offered dining services. Fork and dagger strategy was to provide all features that the market provided less than one roof. The competitive landscape, however, was changing, and the company began experiencing losses after 17 years in operation. Competitors were now offering better services that included pool services and karaoke services. The company was not providing such services. Regulation encompasses the three levels of government, which includes the federal, provincial, and municipal levels. Regulation can influence the business environment through the increase or decrease of the tax rate that affects the cost of doing business. The economy conditions were perfect at the inception of the business but later in the business life, the economy was in recess but still the company managed to make more profits in spite of the prevailing conditions. The survival was because of the market niche the company had cut for itself in addition to the competitive advantage they enjoyed. At the beginning of the business, social interactions were limited to offline. Internet was not well accessible by individuals at the commencement of the business. However, as years went on internet was accessible by a majority and the advent of social networks resulted in the diversification of interactions from offline to online. Fork and dagger had not included social network advertisement as a form of marketing, something that the competitors embraced. Businesses affect natural factors through pollution, which can be through noise, water, or air. In effect, companies’ day-to-day operations can present an ongoing risk to the natural environment. To diminish the likelihood of harm to the environment, businesses need to reconsider certain natural environmental features in their overall plans. SWOT Analysis Fork and dagger long time existence in the market even after other competitors had closed shop was due to the strengths they had. The quality of service offered was exemplary as there were outstanding services provided by the staff over the years. Cable television at the inception was unavailable in the bars around Struan. Therefore, this attracted sports lovers especially during the winter Olympics. Limited space was also another weakness as there was no room for expansion to accommodate the karaoke stage and pool tables. Opportunities for success were available, but the company was not utilizing them. The company had the opportunity to expand its territories given the net profits generated by the company over the years. Change in social patterns was prevalent by the advent of social platforms like Twitter. Weaknesses in the company were a threat to the company’s existence. Risks of customer retention were increasing as more and more customers left for the competitors. Problem Statement The primary problem in this particular case is declining sales since the year 2009 (Bauzerar & MacKenzie, 2012). Market saturation is also a factor of concern, as the barrier to entry is minimal to attract more and more customers. Failure of customer retention coupled with inadequate customer attraction mechanisms is ailing this company. The lack of a marketing approach to a particular segment is causing the company to lose a grip on its lag market share. Alternatives There lacks a well-qualified management team to advise the owner on how to counter downward trends in the company’s profits. Fork and Dagger Company should undertake various steps to assist in restoring the company’s past glory. The company should invest in a proper management team that will manage the company’s assets. There is a need for diversification of the business advertising channels to incorporate social media platform marketing that its competitors are embracing. Social media platforms as Twitter will broaden the customer reach mechanisms. Analysis of the Alternatives The company should undertake a face-lift to attract new customers. The face-lift should include changing of the dining and bar set up to include other services like karaoke and pool tables. Facelift is not a guarantee of increase in company revenues. Therefore, such a move is a gamble and company would lose more profits if this is move is not successful. The management of the company should endeavor in identify a market segment to concentrate its efforts rather than focusing on the whole market. This approach will be significant as competitors saturate the market competing for market share. Such an approach concurs with Bradley’s propositions of market segmentation. Based on his findings the lesbian, gay, bisexual and transgender (LGBT) community generated more revenues compared to the usual customers. In addition, being a market segment not exploited this can a viable option for the company to focus its energies. This option has its cons, as the majority customers who are not part of the community would avoid fork and dagger hence causing revenue reduction. The company would also be subject to anti-LGBT campaign hence affecting the company’s image. Bars and pubs market was saturated; therefore, the company would abandon it and focus on the dining services that were not saturated. This move would also be dangerous as it would lead to the loss of its present customers and in addition lead to the further decrease of the company’s revenues. Criteria/evaluation Based on the alternatives suggested, long-term success and profitability is the main evaluation tool to decide the best course of action. The alternative should reverse the declining revenues the company is experiencing and at the same time ensure that the staff remains motivated. Recommendation Based on the various alternatives discussed face-lift of the company would be most fruitful approach countered with embracing social media marketing. Marketing should diversify from word of mouth to print media advertising, use of billboards and television advertising. The face-lift should include the inclusion of pool tables and a karaoke podium to the company’s current services. Action Plan The adoption would involve the renovation of the company’s interior design by creating space in the bar section. The space would ensure the positioning of a couple of pool tables and a karaoke podium that will attract customers from their competitors. Offering a variety of services would attract more customers. A face-lift would include repainting of the walls to be current required standards. Management hiring would be essential for branding of the company. Contingency Plan In case this scenario fails to work, the company can choose market segmentation by focusing on the LGBT community. The segment remains unexploited by the existing competitors. The lesbian, gay, bisexual, and transgender (LGBT) community generated more revenues compared to the usual customers. Therefore, this can be a good second plan in case the first fails to bear fruits. Both options are viable, but a facelift is mandatory in both scenarios. Reference Bauzerar, M & MacKenzie H. (2012). Case Study: Fork and Dagger. St. Catharines, Ontario: GoodDan school of Business, Brock University. Read More