Starting a Restaurant With a Difference - Case Study Example

The paper "Starting a Restaurant With a Difference" is a perfect example of a business case study.For every entity to succeed, whether profit-making or non profit making, the management must lay down the strategies which will act as a guide on what they want to achieve. Strategies are plans which are usually long-term covering a period of over five years. (Cook, 2001) These will answer questions such as why do the organization exist which will be summarized in the Mission statement. Strategies will also shed light on what products or services the organization deals with and also to identify the target market for its products and services.

Good strategies involve making a SWOT analysis. This is a summary of strengths, weaknesses, opportunities and threats in the market. For the success of an organization, the management ought to capitalize on their strengths and maximize and exploit the opportunities open to them. The management is also faced with the challenge of minimizing the weaknesses and defending itself from the threats in the market. (Mintzberg and Lampel 2003) In the case study, Mark and Jenny plans to start a restaurant with a difference.

The idea is conceived after an analysis of the current restaurants in the area. They are able to point out the weaknesses in the restaurants within their town. These include poor services, unhygienic food and lack of customer focused services. (Mintzberg and Lampel 2003) The restaurants also offer poor customer relation with no response to customer’s complains. The restaurants also are very static and are not willing to adjust their menu according to the demand of their customers. For Mark and Jenny, this is a good starting ground since they have already analyzed the market and are able to know what their competitors are offering.

Their strategies should be more competitive as compared to their rivals to give them a competitive advantage in the restaurant industry. They have a major strength in that they have done a research on the existing restaurant businesses in the town. However, the research is to be supported by comprehensive strategies which will actualize their ideas. (Ringland, 2002) Every profit making organization must always work on profit maximization goal. Cost-benefit analysis should always be the yardstick of how much the business is making.

The owners must ensure that they minimize on the operating cost. For instance in restaurant business no matter how much the owners may want to please the customers, one must analyze the cost factor in the preparation of the meals. One may start with the common meals which with time and according to customer’s tastes and preferences will be modified to maintain the customers with the changing demands. (Kotler, 2005) Mark and Jenny should also analyze all the other operating costs to ensure that their business is self sustaining.

Expenses on house rent, salaries and wages, electricity and other utilities should be considered. The plans also should consider all the legal requirements especially on hygiene within and areas surrounding the restaurant. They should also be able to predict the expected returns from the business. (Ringland, 2002) Good strategies will also require good market analysis. One should be able to specify the target market and identify the unmet need in the market. Good business launch will require strategic marketing which will publicize the business products and services on offer.

The means of publicity and advertisement should reach the target market. The marketing strategies should be laid in such a way that the customer’s attention is seized. The advertisement should also try to enlighten the customer on the competitive products and services being offered. For a business strategy to sustain a business beyond the foreseeable future, the managers should also be in a position to predict and analyze the competitor’s reaction to new entrants. Most competitors will try to make it hard for new entrants to establish their strategies.

They may raise barriers to resist entry mostly by lowering their prices since they don’t mind making low profits as far as they will maintain their customers. Other competitors may prefer to form alliances with their existing business in the same line of business operation. (Mintzberg and Lampel 2003) Market strategies will also incorporate the sources and costs of raw materials. The food stuff for this instance should be available and affordable. The quality of food should also be of high standard and also hygienic.

In restaurant industry, quality and hygiene should come first as this will not only attract customers but will also maintain the existing ones in the long run. The strategies laid down should therefore be in a position to withstand and overcome such competition barriers encountered in the business growth. This requires comprehensive research and consultations before engaging in any business. The initial business plan should therefore be in a position to predict the hurdles to expect and also provide the appropriate solutions.

(Mintzberg and Lampel 2003) In conclusion, business organizations do not exist in a vacuum. They exist in an open system in which it operates. Thus, proper analysis of external and internal environment should be incorporated in business strategies. Factors such as political set up, economic conditions and cultural factors should not be left out. Competition and market setup should also be incorporated in the strategies formulation.