Wild Sushi Restaurant Analysis - Case Study Example

Wild Sushi Restaurant Analysis Contents Contents 2 Executive Summary 8 Introduction 9 Problem ment 12 Methodology 12 Results and Discussion 13 Strengths 14 Weaknesses 15 Opportunities 16 Threats 17 Conclusions 18 Recommendations 19 References 20 San Francisco State University - Hospitality and Tourism Management Department Internship Performance Evaluation - Assessment Goal 5 Name of the Student: Semester/Year: Supervisor’s Name: Company: Wild Sushi Please rate your satisfaction with our student’s performance using the following scale below: (1) Very Dissatisfied (2) Dissatisfied (3) Not Sure (4) Satisfied (5) Very Satisfied Please place this page in a sealed envelope with your signature on the back. Internship Performance Evaluation – to be shared with student. 1) Areas that the student shows strengths and potential: The student showed strengths in management, communication and teamwork. The intern has huge potential in leadership and management skills. 2) Areas that the student may improve upon: The student should improve on how to deal with people from different places. An improvement in the acknowledgment of other team members would be helpful. 3) Recommendations for student career development/Comments about student in general: I would recommend a career in management. The intern possesses efficient management skills. 4) Comments or suggestions about SF State’s HTM Program is appreciated: The program does a good job in student placement. 5) Please grade the student’s research project/paper & presentation: Overall Grade:____A_____(A, B, etc) 6) Please evaluate and comment on the students research project/paper: Students are required to present their research findings to their supervisor in a formal presentation. Please provide feedback on the student’s effort and results. Also indicate whether the project was beneficial to the company and if you will be able to use the results. The student demonstrated an understanding of restaurant management. The research findings confirmed that the student had taken time to study the restaurant and all the factors that affect its operations. Recommendations from the findings are being considered for implementation in the future. The project was very beneficial because it touched on core issues that affect the performance of the restaurant. Date of Evaluation: Evaluator (Name & Title): Evaluator Signature: Intern Signature: Semester/Year: HTM 515 Internship Questionnaire (To be completed by the student) 1. Student Name: 2. Company name of internship: Wild Sushi 3. Department(s) worked in: Kitchen Department 4. Specific responsibilities/duties: Assisting in kitchen management tasks Checking availability of food supply 5. Top three most important things you learned during your internship: a. Working in a busy restaurant and its pressures. b. Management techniques in the hospitality industry. c. The importance of communication in an organization. 6. Top three things you didn’t like about the internship experience: a. Communication breakdown in the kitchen. b. Constant changes in the roles. c. Extremely busy schedule during holidays 7. Top three things that would improve the internship program for future students a. Clear communication channels. b. An opportunity to experience all departments in the organization. c. Additional support from the management. 8. Did the internship experience result in a job offer? (Circle Yes or No) Yes No 9. Did you take the position? (Circle Yes or No) Yes No 10. If so, what is the name of the company? If so, Position Title: 11. If not, describe your current plans upon graduating? (Company, Title, etc.) After graduation, I would focus on getting a starting level job to gain additional experience. 12. Are you activity looking for employment?_ Yes___________________________________________ Executive Summary The report discusses the internal and external environment of the Wild Sushi Restaurant. Environmental scanning is necessary to understand the threats and weaknesses of an organization. It aids in the formulation of strategies because the information on the dynamics of the external environments makes it possible to plan. The primary purpose is to find ways to improve the Wild Sushi Restaurant based on the SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis (Pahl & Richter, 2009). SWOT analysis is the instrument used to analyze the Wild Sushi restaurant. Data collection has been made possible by personal experience, observation, and simple interviews. The interviews helped in understanding the values of the Wild Sushi Restaurant. Observation yields information on human resource management, customer relationship management, and hygiene practices. The analysis reveals interesting information on the opportunities, threats, weaknesses and strengths of the Wild Sushi Restaurant. The restaurant possesses strength in the areas of human resource management, location, reputation, hygiene, and food quality. Minimal weaknesses exist in the customer relationship management and organization structure. An improvement in these areas will make the restaurant competitive and effective. It provides for the restaurant to gain an advantage in the industry. It is recommended that Wild Sushi Restaurant should adopt a human-centric approach to human resource management and servant leadership. Employee training and development will help improve the quality of workforce (Hamid, 2013). The aim is to make human resource the differentiating factor. The other recommendations from the report are the creation of a children section and expansion into new territories. Introduction Business success is affected by the ability of the management to maximize the internal environment and manage the external environment very well (Claudiu, Andrei, & Gabriela, 2011). Organization uses different techniques to analyze the impact of internal and external business environments on the performance. SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is one of the common analytic tools used to assess a business. The formulation of strategies to be adopted by a business demands a thorough understanding of the factors that influence the internal environment and the external environment. The SWOT model is a well-known instrument that helps in analyzing both the external environments and internal environments that a company functions (Pahl & Richter, 2009). Based on the given analysis, the management can combine the internal factors (Strengths and weaknesses) and external factors (opportunities and threats) to formulate strategies that would help in improving the business. A thorough knowledge of the environment and all the relevant interactions presents a good basis for company politics and strategies. In addition, it supports the enhancement of efficiency in the organization. The scanning of a business environment can be defined as the process of possessing and utilizing information concerning patterns, trends, occasions, and connections in the internal and external environment of an organization. The process can be rendered useless if one does not come up with strengths, weaknesses, opportunities and threats. After environmental scanning, an organization is expected to take advantage of the available opportunities and find ways to minimize the impact of potential threats (Claudiu, Andrei, & Gabriela, 2011). Under normal circumstances, environmental scanning starts with the internal environment because it is the core of the organization. It contains factors that are under the full control of the organization. The internal environment of an organization is characterized by employee relationships, relationship between employees and management, relationship with shareholders, availability of raw materials, access to natural resources, structure of the organization, and the operation potential of the company (Claudiu, Andrei, & Gabriela, 2011). Human resource is an essential component of the internal environment especially in the hospitality industry. In addition, the analysis of the internal environment can include interviews and survey methods that the organization uses. The external environment of a business is made of competitors, government regulations, demographic environment, socio-cultural factors, age and political situation. The external environment of an organization gets complex as the organization gains an additional competitive advantage in the market. The changes in the external environment are critical to the success of the plans outlined in an organization. The dynamic external environment makes it necessary for organizations to monitor competitors by identifying their actions. The core competencies of a business are adjusted according to the demands emanating from the need to remain relevant in the external environment. It is essential for all organizations to show flexibility when dealing with matters pertaining to the external environment. Organizations that adapt quickly to the changing patterns find it easy to remain relevant for a long time. The restaurant business is a relatively risky venture because of the stiff competition and the emphasis on food quality. Regardless, the restaurant industry in the United States continues to grow each year. It has become an integral part of the U.S. economy. The industry is responsible for feeding millions of Americans. The industry is highly vulnerable to things like inflation and recession because they affect the ability of people to buy food. In hard economic times, many people prefer making food at home. The paper seeks to analyze the external and internal environment of Wild Sushi Restaurant in San Francisco Sunset District. The aim is to formulate an improvement based on the internal strengths and weaknesses of the restaurant. The restaurant is facing increased competition from other restaurants in the San Francisco area and all over the United States. The immediate competitors are Koo Sushi Restaurant, Ebisu Sushi Restaurant, Saru Sushi Bar, and Sushi Bistro among many others. The market for sushi restaurants is not saturated. The restaurant attracts working class and students. The most frequent customers are the working class, which explains the increase in the number of customers at dinnertime. During holidays, the restaurant records very high number of clients, which can be explained by students being on holidays. Problem Statement The research seeks to analyze the internal and external environment of Wild Sushi Restaurant with the view of producing recommendations on how the restaurant can improve. The primary purpose of any business is to earn revenue. The analysis of external and internal environments are efforts geared towards the identification of weaknesses, strengths, and opportunities for a business. A critical analysis of all these factors helps in finding the most appropriate ways to improve efficiency and minimize costs. The research is very important for Wild Sushi Restaurant because it will present information that can be used for many years to analyze the performance of Wild Sushi Restaurant. It will also help the restaurant to increase its competitive advantage over other sushi restaurants in the area. Methodology The research employs the SWOT instrument in analyzing the internal and external environment to Wild Sushi Restaurant. SWOT presents a bulletproof analysis that provides the strengths, weaknesses, threats and opportunities of the restaurant (Pahl & Richter, 2009). The method gives room for a detailed focus on both the external and internal environments of the restaurant. SWOT analysis provided the basis for the whole research. During the study, information on characteristics of the internal environment was obtained through observation and interviews. It was not relatively easy to understand the how the internal environment functions because of the internship opportunity. It also made it possible to collect primary data on the organization structure, values, and human resource management techniques. Interviews with older employees and supervisors yielded valuable information on the history and development of the restaurant. It was necessary to understand the history of the restaurant to assess its growth pattern. In some instances, the researcher interviewed customers in a bid to understand why they frequent Wild Sushi. The data on client feedback was also valuable in understanding the quality of customer relationship management in the restaurant. The research methodology also entails the search for literature on the impact of environmental analysis. The aim was to identify how internal and external environmental analysis can help in improving strategic formulation. The knowledge of external and internal environment gives the management a chance to make informed decision that carry very little risk of failure. In conclusion, the methodology for the research employs a combination of techniques in data collection. These techniques are observation, interviews, personal experience and scholarly search. The combination improves the quality of information obtained through the research. Results and Discussion The Wild Sushi Restaurant is among the most reputable sushi restaurants in San Francisco Sunset District. The Wild Sushi Restaurant has been operation for a long time, which explains its popularity among diners in the area. The following sections presents the strengths, weaknesses of the restaurant. Strengths and weaknesses come from the analysis of the internal environment. Strengths A company’s functional area is its main strength. The functional area of the restaurant is the kitchen. A high percentage of the activities in the restaurant take part in the kitchen. The management of food, utensils, and chefs all take part in the kitchen. The management is keen on hygiene in the kitchen area. The chefs are constant surveillance to avoid any mishaps that might affect the quality of food. The performance of the restaurant relies heavily on the quality of work that is done in the kitchen. The Wild Sushi Restaurant specializes in Japanese foods. The quality of food is a strong measure of quality that gives the restaurant a competitive advantage. According to customer reviews, it seems the restaurant is known to make authentic Japanese dishes. It provides the real taste of Japanese foods. Organizational structure refers to the flow of authority in a company. It makes it easy to assign and control tasks in the company. The Wild Sushi Restaurant has created its structure around its functional area, which is the kitchen. The aims are to make sure the kitchen continues to produce quality work at all times. The managerial structure of kitchen has made it possible for the management to monitor all activities and maintain quality standards. A department manager who has an assistant is in charge of each functional department. The kitchen department has a departmental head. The Drinks Manager and the Foods Manager all report to the kitchen head department. Both managers have an accountant and a clerk that report to them. The aim is to make sure all factors are well managed in the kitchen. The caution starts from finance to the quality of work. An efficient organization structure is a strength because it supports effective communication and delegation, which are integral to the success of any business. Human resource management is critical to the improvement of Wild Sushi Restaurant. The company is made of a motivated workforce that is dedicated to the success of the restaurant. All employees have embraced the vision and mission the restaurant, which is to become the best restaurant in San Francisco. The dedication of the workforce is seen in the quality of work done by the Chefs, waiters, accountants, clears and the guards. Top management is known to support employees when faced with mishaps. Human resource management in Wild Sushi Restaurant has taken a human-centric approach (Marler, 2012). For example, workers that make mistakes are supported and encouraged. Instead of shouting, the supervisor taught me the best way to avoid similar mistakes in future. The positive treatment of employees has contributed to the creation of a motivated workforce in Wild Sushi Restaurant. Wild Sushi Restaurant is found in a strategic location. The location of the restaurant makes it easy to access for people from different parts of San Francisco. The strategic location of Wild Sushi is a strength because it has been influential in the number of clients that frequent the restaurant. The location of the restaurant is a key factor in the success of many food service companies. Restaurants in highly populated are likely to earn more revenue than the ones found in lowly populated areas. Wild Sushi Restaurant stands to benefit from its strategic location and the high population of San Francisco Sunset District. Weaknesses Weaknesses refer to everything that Wild Sushi Restaurant should consider improving. They make an organization vulnerable to pressure from aggressive competitors. One of the most notable weaknesses in Wild Sushi is the amount of time that customers are forced to wait sometimes. A few customers have pointed the need for the restaurant management to reduce the wait time during peak hours. Customer relationship management is a critical issue in the hospitality industry especially in a food service company like Wild Sushi Restaurant. It is a fact that the current organization structure has been efficient as evidenced by the efficient management tasks in the restaurant. Regardless, the structure would do some improvements. The kitchen department has been assigned two accountants and two clerks. Assigning an overall clerk and accountant for the kitchen department would make it easy to manage the accounts related to the department. It would help in reducing the total cost of the restaurant. Opportunities Opportunities refer to the factors that present a chance for Wild Sushi to increase its profit. The restaurant sector in the United States is still growing (Global Restaurants Industry Profile., 2014). Wild Sushi has a reputation for serving quality food, which implies the restaurant might find it relatively easy to get clients if it expands. Wild Sushi Restaurant should consider an opportunity to expand to other parts of the United States to access additional clients. Expansion presents a chance to move to the next level, which is the creation of a chain of Japanese restaurants in the United States. The replication of quality service and management exhibited in Wild Sushi is bound to yield success in other parts of the country. It would be reasonable to start with expansions in other parts of San Francisco to increase its presence and counter the pressure from its major competitors. It would also be a chance to earn additional revenue, which can help the restaurant to compete both nationally and internationally (Global Restaurants Industry Profile., 2014). The Wild Sushi Restaurant can decide to offer different brands of beverage. The increasing emphasis on healthy living and healthy foods is an opportunity for the restaurant. It can offer healthy beverages that can go with Japanese delicacies. Offering delicacies can help the restaurant in attracting a new breed of customers who are interested in the different brands of beverages. The beverage service can be combined with the current Wild Sushi Restaurant, or it can be opened on its own. The restaurant’s reputation is an asset that can help market its beverage brands and any new branches. The restaurant can also offer discounts and competitions to increase sales and attract new clients. It is a chance for the restaurant to assert its dominance in the market. Wild Sushi Restaurant has a chance to attract new clients by creating a place for kids to have fun while their parents are having dinner. Many people find it hard to visit restaurants for dinner because of the trouble of having to manage the children in a busy restaurant. Wild Sushi can tap in this segment of the market by creating a play station for kids and charging extra for the service. Embracing new technology to increase the quality of the ambiance of the restaurant are also opportunities to increase profits. Threats Wild Sushi Restaurants faces stiff competition from the other Japanese restaurants in the area. Some of the major competitors are Koo Sushi Restaurant, Ebisu Sushi Restaurant, Saru Sushi Bar, and Sushi Bistro. All these restaurants are celebrated for their fine quality of Japanese delicacies. The competition from other restaurants in the area puts the Wild Sushi Restaurant under much pressure. The four restaurants are located very close to each other, which is why the competition is very stiff. It affects the pricing strategies, which are meant to attract additional clients. The restaurant has to spend money on promotions and advertisements in a bid to gain a competitive advantage in the market. Differentiation in terms of service among the competitors is minimal, which means the only strategy with an impact is the pricing strategy. The economic environment is also a threat to the Wild Sushi Restaurant. Inflation has a huge impact on the purchasing power of many clients. The Increase in food prices might prompt the restaurant to increase their prices, which will lead to loss of clients. Some people can decide to make their food at home instead of buying expensive food from the restaurant. The other threat comes from the strict regulations that the authorities impose on restaurants. The quality of food in restaurants is under the strict watch of the authorities. A small compromise of quality can lead to loss of operating license. It takes many resources to maintain the standards set by the law for restaurants. The strict regulations on food safety mean that the restaurant has to source food from specific suppliers, which reduces its bargaining power. The number of new entrants in the restaurant business is always on the rise. The threat of new entrants is real for Wild Sushi Restaurant. However, the strict regulations on hygiene food safety have helped in discouraging some people. The money required to meet the standards set by the law require a substantial amount of money. Conclusions The main advantages of the Wild Sushi Restaurant are its reputation. It has gained a good reputation, which explains why it is always full of clients. The strict management principle that focus on achieving the highest standards of quality has helped the company to gain clients. Wild Sushi Restaurant is known for the provision of quality Japanese foods. The quality is measured in terms of authenticity, taste, and hygiene. The location of the restaurant serves as a major advantage because it is easy to spot. In addition, the area has a high population, which implies a large market. It reduces the pressure of competition. The restaurant should work on its marketing strategies. In order to gain advantage over the other major players in the market, Wild Sushi has to step its marketing strategies. The organization structure can be improved by creating a system that encourages delegation and utilizes minimal resources. Reducing the cost of hiring many people will help reduce the overall production cost. It widens the profit gap. An improvement in customer relationship management would help in differentiating service delivery in the Wild Sushi Restaurant. The management should explore new options to improve the efficiency of customer relationship management. Recommendations A couple recommendations can help in improving the performance of Wild Sushi Restaurant. First, the restaurant should concentrate on human resource management. The trick is for the restaurant to develop a dedicated workforce that is made of professionals. Therefore, the restaurant should focus on employee training and development to ensure all employees are equipped with necessary skills to deliver high-quality food and service (Hamid, 2013). The adoption of servant leadership approach would help improve the relationship between workers and management (Carter & Baghurst, 2014). An improved relationship means workers will feel part of the organization (Carter & Baghurst, 2014). The restaurant should also consider starting a place where kids could hang out when they visit the restaurant with their parent. It is a chance for Wild Sushi to gain a competitive advantage and increase revenue. The number of parents who want to have a quiet dinner are many. The restaurant will tap into the market by creating a wing for children in the restaurant. Furthermore, an expansion in areas near schools will allow the restaurant to tap into the huge market population most of the year. Currently, the restaurant receives students only during holidays. An improvement of the waiting time will help improve the reputation of the restaurant. The improvement can be made by training waiters on how to take orders and pass them to the kitchen on time. The kitchen department should also formulate ways to increase efficiency. An increase in efficiency means less response time, which reduces the customer has to wait. The provision of beverages can be used to keep customers engaged as they wait for the main meal. References Carter, D., & Baghurst, T. (2014). The Influence of Servant Leadership on Restaurant Employee Engagement. Journal of Business Ethics, 124(3), 453-464. Claudiu, C. S., Andrei, P., & Gabriela, P. M. (2011). Internal Environment Analysis Techniques. Annals of the University of Oradea, Economic Science Series., 20(2), 731-736. Global Restaurants Industry Profile. (2014, April). Restaurants Industry Profile, pp. 1-31. Hamid, J. (2013). Strategic Human Resource Management and Performance: The Universalistic Approach--Case of Tunisia. Journal of Business Studies Quarterly, 5(2), 184-201. Marler, J. H. (2012). Strategic Human Resource Management in Context: A Historical and Global Perspective. Academy of Management Perspectives, 26(2), 6-11. Pahl, N., & Richter, A. (2009). SWOT Analysis - Idea, Methodology And A Practical Approach. München : GRIN Verlag GmbH. Read More