Strategic Environmental Scanning and Organization Performance - Example

Entrepreneurship (Business Plan) Entrepreneurship (Business Plan) Executive Summary Research Method & Strategy In the of executing this research, it is essential to focus on the utilisation the primary research and secondary research. The primary research will focus on the utilisation of questionnaires, as well as semi-structured interviews in the course of determining the perception of the consumers regarding the intended business plan. Secondary research will concentrate on the review of the previous research concerning opening business entities. The business plan focuses on the incorporation of eight domains model to examine the attractiveness of the market and the industry in accordance with the expectations and demands of the customers. Macro Market The business will benefit effectively and efficiently from the favourable political conditions and stability to address the demands and expectations of the target audiences. Similarly, it is critical to note that the organisation will benefit greatly on the constant economic growth rate of the United Kingdom in the process of addressing the needs and expectations of the target audiences. The organisation will focus on the adoption and incorporation of international strategies, which will seek to act on several fields with the intention of guaranteeing lucrative returns to the shareholder. In addition, the industry has focused on the usage of elements such as inventory system, as well as management of the value chain, which are essential in enhancing convenience in the payments and other relevant transactions. Macro Industry It is essential to note that the rivalry among the existing operators in the industry is extremely high. There is a moderate level of threat of new entrants in the industry. This is because of the large capital requirements in the course of building chain of stores, as well as tendency of the operators to occupy the favourable locations in pursuit of competitive advantage in the market and industry of operation. In this industry, the threat of substitutes is moderate. The industry tends to experience low bargaining power of suppliers because of the vertical integration of the businesses under the influence of the commoditised raw materials or ingredients. The industry experiences low bargaining power of the buyers or consumers. Micro Industry In this context, company analysis will relate to evaluation of the core competencies, advantages, and required adjustments in pursuit of goals and targets. Customer analysis will focus on the assessment of unmet needs, purchase decision-making, and segmentation/channels. Thirdly, competition analysis will occur at the consumer/channel levels in relation to the reactions and growth or development. Finally, collaboration analysis will focus on the strategic partners, suppliers, and industry alliance or the government agencies. RACE Analysis This section of the business plan focuses on the evaluation of the risk tolerance, aspiration, connectiveness, and experience in relation to operating the business entity. Recommendations This section of the business plan will focus on the incorporation of appropriate recommendations in relation to the strategies to improve effectiveness and efficiency of the business operations. In addition, the section will focus on the improvement of the delivery of quality services and products while reducing the costs of operations at the end of the fiscal period. Research Method and Strategy In the course of executing this research, it is essential to focus on the utilisation the primary research and secondary research. The primary research will focus on the administration of the questionnaires to collect and analyse data in accordance with the research question and objectives. In this context, the business plan will focus on collecting information from the 40 research participants on the perceptions concerning Thai food products and services. These research participants will emanate from the Middlesex Street for effectiveness and efficiency in the collection and analysis of data. On the other hand, the study will focus on the usage of secondary research under the influence of reviewing previous information, data, and knowledge on the industry, market, and other aspects of the business plan. That is through the utilisation of sources such as Mintel and Passport, thus the perfect platform for understanding and illustrating the concepts and aspects of the market and industry with reference to the case of the United Kingdom. The study will consider incorporation of the eight domains model in the course of elaborating on the facets and aspects of the business plan for effective and efficient understanding of the transactions of the new business platform within the case of the United Kingdom. In this context, the model will be essential in the determination of the attractiveness of the market and industry, thus the perfect opportunity to aid development and implementation of appropriate strategies and mechanisms to gain sustainable competitive advantage in the market and industry of operation. In addition, there is also the opportunity to evaluate macro and microenvironment factors affecting the operations of the market and industry in relation to the case of the United Kingdom (Fleisher & Bensoussan, 2014). Similarly, the study will focus on the assessment of the risk tolerance, aspirations, experience, and connectiveness in relation to the personnel focusing on the management and transformation of the business entity. Finally, the business plan focuses on the evaluation of the segment attractiveness and customer benefits, as well as the firm’s economic and competitive sustainability. Eight Domains Model Analysis Micro Market The purpose of the business entity is to focus on the provision of quality products and services in accordance with the demands and expectations of the consumers. In the course of pursuing these goals, the business entity will consider provision of services such as Thai Zucchini, Thai Coconut Rice, Thai Chicken Breasts, Thai Peanut, Thai Curries, Thai Thighs, Thai Noodles, and Thai Turkey. The business will concentrate on targeting various consumers. In the first instance, the business will target the Thai nationalities in the region or location of transaction seeking to rekindle their relationship with the cultural dishes from our business entity. Secondly, the business will target both male and female consumers seeking to satisfy their needs in relation to Thai food products and services. In addition, the business will target busy employees lacking the time to prepare food for their needs. From this perspective, the restaurant will focus on the usage of the delivery perspective to offer quality products and services to our extremely valuable consumers (Craig & Campbell, 2012). Finally, it is essential to note that the restaurant will focus on the provision of quality and affordable products and services to aid the satisfaction of needs and wants of the consumers regardless of their income levels. Macro Market: PESTEL Analysis PESTEL Analysis is essential in examining the external business environment facing an organisation in six major areas: political, economic, sociological, technological factors, environmental and legal factors. Proper or effective understanding of these factors is essential in enabling the business entity or firm to highlight or identify areas of the business opportunity, strengths, weaknesses, and threats for maximisation of the profits while minimising the costs of operations or transactions. Political Factors It is essential to note that fast food industry is one of the major targets for the various government initiatives aiming at improvement of the health, as well as reduction of obesity specifically in the European nations. In addition, operations of any business entity depend on the individual state policies by each government and this Thai Restaurant will be no exception (Williams & Naumann, 2011). For instance, there are various groups in the United Kingdom protesting to the state in relation to the health implications of the takeaway food products. According to these perceptions, the products contain harmful elements like cholesterol, as well as adverse implications like obesity, which are attributable to consumption of fast food products. Moreover, there are various factors such as tax law, employment laws, and trade restrictions, which might affect the operations of the business opportunity in pursuit of goals and targets at the end of the fiscal period. Tax rates have the tendency of affecting the growth and development of any business entity. In diverse workplaces, employment restrictions such as regulation of working hours demand that the organisation does employ more employees. Nevertheless, the business will benefit effectively and efficiently from the favourable political conditions and stability to address the demands and expectations of the target audiences. Economic Factors In the modern context, most business entities tend to have global presence, which depends on the inflation and exchange rates. From this perspective, the new business approach or opportunity will take into consideration changes in inflation, as well as exchange rates in the course of adopting and implementing appropriate strategies in pursuit of the goals and targets at the end of the strategic and fiscal period. It is ideal for the organisation to adapt to the issues, as well as effects of the economic environment with reference to the case of the United Kingdom (Solomon, Dahl, White, Zaichkowsky & Polegato, 2014). These economic factors have the tendency of determining the supply, as well as demand relationship of the raw materials and outputs within the operations and transactions of the business entity in the market and industry. Other economic factors, which might affect the operations of the new entity in the case of the United Kingdom, include wage rate, cost of living, and unemployment rate. Similarly, it is critical to note that the organisation will benefit greatly on the constant economic growth rate of the United Kingdom in the process of addressing the needs and expectations of the target audiences. Sociological Factors The organisation will focus on the adoption and incorporation of international strategies, which will seek to act on several fields with the intention of guaranteeing lucrative returns to the shareholder. This is through improvement of the operation of the organisation in relation to establishment of the positive mind-set from the core customers. It is essential to understand the consumers based on the relevant characteristics. According to an assessment of the target audiences around Middlesex Street, major of the 40 research participants demonstrate their love for the Thai food. This provides the perfect platform for the organisation to provide quality products and services at the end of the fiscal period. Home delivery/takeaway in the United Kingdom expects to realise a positive performance over the coming years since a large number of consumers opt to eat in due to the recession and the massive reduction in the purchasing power. Difficulties in economic environment have limited influences on the demand for convenience and indulgence. Technological Factors The organisation’s critical tool for marketing is through television advertisements. In addition, the industry has focused on the usage of elements such as inventory system, as well as management of the value chain, which are essential in enhancing convenience in the payments and other relevant transactions. In addition, integration of technological advancements is essential in enabling the organisation to automate the service delivery in accordance with the demands and expectations of the customers in the market and industry of transaction. Environment Factors The social responsibility of an organisation in the region relates to the operations of the company within the specific environment. The operations of the organisation will entail accusations of the environmental damage, as well as integration of appropriate policies, which are vital in the improvement and conservation of the environment. Moreover, the organisation will consider incorporation of quality policies to engage the consumers on the preservation of the environment, as well as utilisation of the products fully and effectively. This is through transactions of the needs and expectations of the consumers in accordance with the environmental regulations and policies in the case of the United Kingdom. Legal Factors In the course of operating in the fast food industry in the United Kingdom, the Thai Restaurant or Takeaway will focus on considering legal aspects such as tax obligations, employment standards, and quality requirements. These attributes are essential in enhancing the image and reputation of the organisation in the market and industry of operation at the end of the fiscal period. Furthermore, increased understanding of the legal factors will enable the organisation to focus on utilisation of ethical policies in addressing the demands and expectations of the business entities in the market and industry of transaction. Macro Industry: Porter’s Five Forces Analysis In this context, it is essential to focus on the assessment of five factors. Rivalry among existing Competitors It is essential to note that the rivalry among the existing operators in the industry is extremely high. That is justified by the high number of the rivals in the UK. Some of the competitors offering Thai food products and services include Thai Silk Restaurant, Aunties Thai Restaurant, Chaba Thai Restaurant & Takeaway Abingdon HOME, and Anna’s Thai Restaurant. In addition, the industry continues to experience static market growth, as well as high fixed costs and perishable products in relation to food and drinks, thus extreme competition among the rivals. In spite of the limited product differentiation, business entities within the industry tend to have fierce differentiation in relation to product range, brand, and store ambience. It is also essential to note that there are zero switching costs for the customers, which is essential in promoting price wars among competitors. The static nature of the market growth is essential in the promotion of fierce fighting for the substantive market share. Threat of New Entrants The threat is moderate because of the large capital requirements in the course of building chain of stores, as well as tendency of the operators to occupy the favourable locations in pursuit of competitive advantage in the market and industry of operation. Furthermore, economies of scale in the distribution and raw ingredients provides the perfect opportunity for the existing operators to experience reduced per unit costs under the influence of the experience curve. Another critical contributor to the moderate threat is the product and brand differentiation. It is critical to note that the capital requirements for the individual stores are low. Nevertheless, new entrants focusing on competing with the national store networks or distribution channels have the tendency of facing large capital requirements towards gaining substantive market share (Mintel, 2015). Threat of Substitutes The threat is moderate because of the presence of large choice of alternatives in relation to similar products within the fast food and restaurant industry in the case of the United Kingdom. Consumers have the ability and potentiality of choosing from multiple substitutes in the course of satisfying their needs and preferences. Nevertheless, organisations have the tendency of competing in accordance to convenience and opportunity. It is also ideal to note that most of the substitutes come from the full menu eateries such as the fast food outlets and restaurants other than the smaller threat from the groceries and supermarkets. The organisation will focus on the adoption and implementation of quality strategies and policies with the intention of reducing this threat in pursuing sustainable competitive advantage within the market and industry of transaction. Bargaining Power of Suppliers The industry tends to experience low bargaining power of suppliers because of the vertical integration of the businesses under the influence of the commoditised raw materials or ingredients. In addition, it is ideal for the large number of suppliers to offer quality products and services to the consumers. From this perspective, business entities have the perfect platform to choose from the large number of suppliers, thus the tendency of experiencing low switching costs in pursuit of competitive advantage. The organisation will consider exploitation of the low switching costs towards differentiation of the products and services in accordance with the demands and expectations of the consumers under the influence of the limited costs of transactions. Bargaining Power of Buyers The industry experiences low bargaining power of the buyers or consumers. This is because of the presence of fragmented, as well as numerous buyers seeking to satisfy their needs and preferences. In addition, consumers do not suffer from the switching costs while seeking to satisfy their needs or wants. Nevertheless, the transactions within the industry relates to the fabrication of the society. Micro Industry: 4Cs Analysis This relates to the execution of the situational analysis under the influence of the 4Cs (company, customers, competition, and collaborators). In this context, company analysis will relate to evaluation of the core competencies, advantages, and required adjustments in pursuit of goals and targets. Customer analysis will focus on the assessment of unmet needs, purchase decision-making, and segmentation/channels. Thirdly, competition analysis will occur at the consumer/channel levels in relation to the reactions and growth or development. Finally, collaboration analysis will focus on the strategic partners, suppliers, and industry alliance or the government agencies. Company The restaurant will focus on the utilisation of various success factors and core competencies in pursuit of sustainable competitive advantage. In the first instance, Middlesex Street will provide the perfect or convenient location for the organisation seeking to offer quality products and services in accordance with the demands and expectations of the target audiences. In addition, the company will provide quality Thai-food products and related services under the influence of clever advertisements, which will be ideal in enhancing the market coverage of the organisation. Similarly, it is ideal to note that the organisation will incorporate consistency, food quality, and innovation towards controlling costs of operation. Remarkably, the organisation will focus on the usage of fast services for the maintenance of favourable image and reputation in the global context. These core competencies will be essential in enhancing the profitability levels of the company at the end of the fiscal period. Customers The company will focus on the provision of quality services and products to various consumers or customers with reference to the case of the United Kingdom. The purpose of the business entity is to sell products and services to customers. In this context, the customer is number one to the organisation, thus the need to satisfy the needs and preferences of the consumers. From this perspective, the major goal for the company is to satisfy the needs of the consumers or customers at a profit, thus the perfect platform for enhancing the image and reputation at the end of the fiscal period. The business entity will consider diversification of the products and services with the intention of addressing various needs and preferences of the consumers within the industry of interest. Competition The company will face substantive amount of competition from the existing firms offering similar products or substitutes in pursuit of competitive advantage. For instance, the organisation will face constant competition from Thai Silk Restaurant, Aunties Thai Restaurant, Chaba Thai Restaurant & Takeaway Abingdon HOME, and Anna’s Thai Restaurant. From this perspective, there is need for the organisation to adopt and implement appropriate competitive strategies, which will be ideal in pursuit of sustainable competitive advantage within the market and industry of transaction. Collaborators Collaborator refers to an individual or person working with the company or business entity. Collaborators have the potentiality helping business entities to the business without actually being part of the institution. From this perspective, such entities are specialists with the ability to offer special services, raw materials, production equipment, and component parts for the production and distribution of goods and services in the market and industry of transaction. In the course of offering quality services and products, this business entity will focus on the usage of various collaborators with reference to accountant, suppliers, and auditors. These specialists will enhance the image and reputation of the organisation within the market and industry of operation. RACE Analysis Risk Tolerance I am a risk taker, thus the perfect opportunity to engage in this business plan. The quality will be essential in the incorporation and integration of quality approaches, as well as strategies in the course of addressing the demands and expectations of the customers. In addition, the risk tolerance quality will be essential in the utilisation of the services of the collaborators to offer quality products and services in accordance with the demands and expectations of the consumers within the market and industry of operation. Aspiration I have substantive aspirations on expanding the business entity into a global institution in relation to the goals and targets. In attaining the goal, focus on the utilisation of quality research and strategies in pursuit of sustainable growth and development and competitive advantage within the industry of operation is essential. On the other hand, the organisation will consider the usage of internal and international strategies to gain quality image and reputation in the local and global contexts (Mintel, 2015). Connectiveness While working in Thai restaurant for one year as a waiter and bartender, I developed connections with diverse stakeholders in the industry. This level of connection is essential in understanding various operations and transactions within the industry. In addition, I will be able to use these connections in the course of gaining quality suppliers and consumers. From this perspective, it is essential to use the accurate connections in the course of enhancing the image and reputation in the market and industry of transaction. Experience I have been working in the Thai restaurant for one year as a waiter and bartender. From this perspective, I have been able to have critical information and knowledge concerning what consumers demand in pursuit of sustainable competitive advantage. Similarly, I will use this experience to offer quality products and services to the consumers in accordance with their expectations and preferences in the market and industry of transaction. In addition, I have adequate experience on the trends of the fast food industry, which the business entity will operate in, thus the perfect platform for the achievement of annual goals and targets. Financial Analysis Start-up Funding Start-up Expenses to Fund $68,800 Start-up Assets to Fund $50,000 Total Funding Required $118,800 Assets Non-cash Assets from Start-up $30,000 Cash Requirements from Start-up $50,000 Additional Cash Raised $681,200 Cash Balance on Starting Date $731,200 Total Assets $761,200 Liabilities and Capital Liabilities Current Borrowing $0 Long-term Liabilities $0 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $0 Capital Planned Investment Shareholder1 $200,000 Shareholder2 $200,000 Shareholder3 $200,000 Sharehoderl4 $200,000 Additional Investment Requirement $0 Total Planned Investment $800,000 Loss at Start-up (Start-up Expenses) ($68,800) Total Capital $731,200 Total Capital and Liabilities $731,200 Total Funding $800,000 Project Cash Flow Recommendations i. In the first instance, it is essential to focus on the implementation of the differentiation strategy, which will be critical in the provision of quality products and services in accordance with the demands and expectations of the consumers. ii. Secondly, it is essential to focus on the utilisation of appropriate advertisement techniques such as integrated marketing communication. This will be critical in the exploitation of direct marketing, sales, online marketing, and publicity approaches in pursuit of effectiveness and efficiency in the provision of quality services and products. iii. There is need for increased investment in research and development. This is essential in the identification of the marketing trends, as well as demands and expectations of the consumers within the market and industry of operation. iv. Finally, it is critical to utilise social media platforms, which are ideal in the maximisation of the market opportunities. Reflection In the course of developing this business plan, I was able to enhance my understanding on various management and marketing models. This is through evaluation and implementation of the various models such as Porter’s five forces analysis, generic value chain, PESTEL analysis and the 4Cs. The Porter’s five forces presents a list of possible factors that are most likely to influence the success of the business. In learnt the effects of threats to the business while at start up stage. I also learnt to take into account the factors that affect business. Similarly, I was able to enhance my understanding on the trends and developments within the industry. Industry trends are highly critical to the success of every business entity. This is because of the critical evaluation of the micro market and industrial analysis. On the other hand, I would concentrate on improving on the integration of the models effectively and efficiently in the future contexts. The approach will be ideal in developing quality business plans in accordance with the expectations of the business entities and consumers. Bibliography Babatunde, B. O., & Adebisi, A. O. 2012, Strategic environmental scanning and organization performance in a competitive business environment, Economic Insights- Trends & Challenges, 64(1), 24-34. Carroll, A., & Buchholtz, A 2014, Business and society: Ethics, sustainability, and stakeholder management, Cengage Learning. Craig, T., & Campbell, D 2012, Organisations and the business environment, Routledge. Euromonitor International 2014, “Passport: 100% Home Delivery/Takeaway in the United Kingdom.” Euromonitor International 2014, “Passport: Consumer foodservice by location in the United Kingdom.” Euromonitor International 2014, “Passport: Consumer foodservice in the United Kingdom.” Fleisher, C. S., & Bensoussan, B. E 2014, Business and competitive analysis: effective application of new and classic methods, Pearson Education. Mintel 2015, “Attitudes to Home-delivery and takeaway food,” Issues and Insights. Mintel 2015, “Attitudes to Home-delivery and takeaway food.” Executive Summary. Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R 2014, Consumer behaviour: buying, having, and being, Upper Saddle River, NJ: Prentice Hall. Williams, P., & Naumann, E 2011, Customer satisfaction and business performance: a firm-level analysis. Journal of services marketing, 25(1), 20-32. Read More