My Culture Foods Restaurant - Coursework Example

MY CULTURE FOODS RESTAURANT REPORT INDIVIDUAL BUSINESS REPORT Table of Contents Executive summary The report is grounded on demonstrating an engaging restaurant business simulation strategy outline which depicts how to setup a performance-based system and implement prepositions that successfully co-function with other mechanisms in the café business for success. The report appraises decision-making and performance within the parameters of achieving positive results. Defining attributes that a successful plan should constitute while transacting operations of the restaurant with a competitive mindset. It places emphasis on perfection, flexibility, strategic leadership and speed as pivotal aspects to guaranteeing a competitive advantage in a competetive market. The proposed concepts facilitate identification and complete exploitation of opportunities emerging in the new competitive environment. The possibilities result primarily due to the volatility created by existing constant change of customer needs. Specifically, the uncertainty of market change intensifies rivalry conditions. The conditions simultaneously produce a significant product and service motivated growth opportunities. The project report effectively demonstrates how to adapt and exploit existing opportunities by the business in a simulation of three years of inception. Introduction The business is a restaurant providing healthy, contemporary and traditional diets (CULTURE FOODS RESTAURANT). The restaurant café industry is considered as a growing, and there exists numerous opportunities to explore and establish a strong customer base now more than ever. With increased consumer’s awareness of the significance of healthy eating habits and maintaining a healthy life style, the industry now experiences an unmatchable level of selective demand. The boom creates a perfect opportunity for my business to expand its reach and join other well-established restaurants and cafés on the competitive platform. The market is influenced by changes in the local and global economy, emerging health issues and fluctuations in prices of food related complimentary products. The report will demonstrate the significance of the business reacting to impacting factors, and it also constitute a financial plan to facilitate implementation of the proposed project concepts. Business aims and objectives The business’s priority is to ensure growth and dominance. Identified significant areas of focus. Produce and serve healthy diets at consumer friendly prices: To enhance on the lead in restaurant service industry. By appreciating our consumers’ passion for health eating and health awareness in terms of dietetics. The business will further hospitable servicing and foster a leadership position in delivering healthy food and food products at fair prices. Through the increase of service quality and adjustment of prices to reflect the current economic situation, the business aims to widen consumer base. Accelerate the progression of high quality service delivery in the restaurant business: This is achievable through partnering with market dominant suppliers who uphold customer value, product quality and innovation to provide a comprehensive eating experience for our customers. Sustain a positive and steady growth each year. Reduce the operating and marketing expenses to ensure profit maximization. Widening consumer reach through establishing additional chain restaurants: This is achievable by extending the scope of the businesses’ products through opening new chain restaurants as we expand to cater for varied customer dietetic needs in various geographical localities. Business environment Economic environment It is a characteristic of the market that the level of demand for food changes depending on the degree of consumer’s disposable income. According to Porter (1979), restaurants that operate in hard-hit environments economically bear the most burdens because these economics that influence spending habits are regulated. During this times the fast foods are viewed as luxurious unhealthy products considered, after all, the necessary demands are met. Increase in disposable income, on the other hand, implies that customers can spend comfortable. The variations experienced by the economic environment will be carefully monitored, and necessary reaction strategies for such changes implemented (Jain 1993). Socio-cultural environment Every restaurant operates in a society and subsequently, subject to a variation of social impacts. The socio-cultural influences include social class and culture. Food is considered as a basic human need and no matter the prevailing circumstances consumers will always strive to satisfy this need. The ideas that influence socio-cultural aspects of food are to be researched and understood. A good understanding of the concepts creates an opportunity where these factors can be exploited for profit maximization and brand building. Technological environment Advances in technology have significant influences on business success. For instance, one easy way of informing clients of new improvements on products is through using the restaurant’s website. Such advancements have impacts beyond communication facilitation. Their influences include introduction of new and more cost effective ways of preparing meals to be served in the restaurant. The positive opportunities created by technology should be maximally exploited with the mindset of gaining a competitive advantage in the restaurant service provision market. The legal environment Health and safety of the business’s workers is important to the organization. Health and safety legislature forms part of the legal environment in which the restaurant operates. Failing to comply with these laws have consequences which may tarnish the restaurant’s brand. It is, therefore, necessary for the business to function within the set legal frameworks that dictate the legal environment. Competitive environment Competition is essential in any industry as it influences pricing and ensures availability of affordable products for consumers (Porter 1979). The strategy will involve reinforcing the restaurant’s competitive position through regular market research. The market research informs the management on competitors’ product specifics hence allowing our restaurant to foster high-quality products and services than those offered by our competitors. Product Description & USP The restaurant’s menu will compose a variation of cultural and contemporary food products. The products and services offered will be positioned in the market as health conscious and driven concept that aim at improving dietetic habits of customers and at the same time ensure customer satisfaction. It will present a unique modern style that appreciates traditional nutritional practices of our consumers. The unique selling position is based on differentiation from other competing products- emphasis on importance in healthy nutrition ensuring superiority of quality over other restaurants offering similar products in the market. The menu specification will be varied to reflect the cultural values and practice of the target customers. An example is Chinese traditional dishes to capture the corporate Chinese business customers and Chinese food enthusiasts. Marketing mix Product: The restaurant’s food products and related food items seek to satisfy the dynamic demand for nutrition among our consumers. Warshaw and Hope (2005) note that nutritional habits of consumers is influenced by awareness. Therefore, a lot of emphasis on nutritional health awareness as a way of providing new menu items and adapting to the new health emerging issues dietetically. Promotion: The business will engage in advertisements and promotional events that span the pre-launching, launching and post-launching stages of expansion, including participation in hotel fair exhibitions (Yoo, Donthu and Lee 2000, 195). The business will increase its online marketing strategies as a means of exploring a wider market base. Pricing: the business will differentiate pricing practices to adapt to needs of different market segments. The corresponding price additions will be based on cultural orientation of the meal and after sale services provided. Introductory price will be varied from the post-launch price taking advantage of first mover benefits as argued by Gronroos (1994, 10). Place: The general menu and all its categories will be available in the local restaurant. Adequate stocking in the kitchen store will be ensured to meet the forecasted demand in targeted local geographical locality. Consumer segmentation Local consumers: the category consists of consumers who are geographically local. Born, raised in the area and work or live within the restaurant’s proximity. Foreign culture consumers: the category consist of consumers who are considered immigrants from other cultural backgrounds. I.e. Latin cultural background, Indian cultural background and Chinese cultural background. The marketing strategy for the two segments will be significantly different as the two groups are influenced by different social attributes. Both groups – local consumers and foreign culture consumers - regardless of their income, typically spend on food products. Therefore, to optimally exploit the market segments different marketing strategies have to be implemented (Miller, Heiman, Tuleja and Krasny 1988). Intensive promotional campaigns will be initiated in order to capture the less aware, foreign culture consumers. To capture the local consumer segment, an approach that bases its ideal on tradition and local industry promotion will be adopted. The financial area The allocated capital is £45,000. The funds will be used in setting up the restaurant and developing new marketing strategies to exploit the untapped restaurant and café market. Other functions include obtaining operating licenses and carrying out research processes. The funds are to be sourced from different sources. The sources to be considered include; borrowing from banks, personal savings invested in the strategy implementation and borrowing from the family fund. Table 1 Source of funds Estimated amount (£) Bank loans 10,000 Personal savings 15,000 Investor (family fund) 20,000 Table 2 Projected Budget Year 1 amount Year 2 amount Year 3 amount Business Launching 10000 Post launch promotions 3000 post launch media expenses 1000 Annual promotions and marketing expenses 16000 8500 6500 Total marketing budget 30000 8500 6500 Conclusion The span of the report has focused on the strategic plan implementation to create a competitive edge over other firms in the restaurant hotel industry. The engagement of strategy planning, operations, marketing, human resource management and finance is crucial to ensuring the success of the proposal of the business. The report provides a clear blueprint on how to handle different challenges be cultural or economic, associated with growth and expansion. A critical evaluation of this report will reveal its significance in meeting the set goals and objectives of CULTURE FOODS RESTAURANT. References Gronroos, C. (1994). From marketing mix to relationship marketing: towards a paradigm shift in marketing. Asia-Australia Marketing Journal, 2(1), 9-29 Jain, S. C. (1993). Marketing planning and strategy. Cincinnati South-Western Publishing Company 1985 Miller, R. B., Heiman, S. E., Tuleja, T., &Krasny, M. (1988). Strategic selling. Warner Books Porter, M. E. (1979). How competitive forces shape strategy. Warshaw, Hope S. (2005). Guide to Healthy Restaurant Eating. 3rd ed. Alexandria, VA.: American Diabetes Association. Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the academy of marketing science,28(2), 195-211 Appendix Table 1: Funding sources for the strategy implementation. Table 2: The projected budget expense distribution. Read More