Strategy in the International Environment - Essay Example

?Strategy in the International Environment Table of Contents Strategy in the International Environment Table of Contents 2 Overview 4 Population ofLagos 4 Statistics of People with High Disposable Income 5 Pizza Express 7 Business Model Plan for Creating Restaurant in Lagos 7 Objective 7 Services of Pizza Express 8 Market Analysis 8 Market Segmentation 8 Market Segmentation Theory 9 Strategy and Implementation 9 Competition Analysis 10 Marketing Strategy 10 Sales Strategy 11 Pricing Plan 12 Employment Plan 13 Financial Plan 15 Business Model Plan Outline 16 SWOT Analysis of Lagos 17 Strengths 17 Weaknesses 19 Opportunities 20 Threats 23 PESTE Analysis of Lagos 25 Political 25 Economic 26 Social 26 Technological 27 Environmental 28 Conclusion & Recommendations 29 References 30 Overview Pizza Express, a renowned chain in the segment of pizza restaurant based in the UK is looking to take their business to Lagos, Nigeria. The study will therefore look to undertake a situational analysis of Lagos, Nigeria in order to identify various aspects which the organisation needs to take into consideration in their venture. The study will also look to prepare a business plan for the proposed business. Population of Lagos In order to properly recognise the demographic factors prevalent in Lagos the population of the area will be evaluated. Lagos is a small state in Nigeria. It is one of the highest populated areas in Nigeria which contributes about 5% of national estimate. The population of Lagos was 17 million in the year 2006. The growth rate of population is approximately 6, 00,000 per annum and the population density is about 4,193 ‘persons per square kilometre’. UN (United Nations) estimates that if this growth rate continues then by the year 2015 Lagos will turn out to be the ‘third largest mega city’ in the whole world after Tokyo, the capital of Japan and Mumbai in India. 85% population of Lagos is in metropolitan area and only 37% population is in ‘land area’ of Lagos. According to World Bank’s demographic analysis the growth rate of Lagos was 8% in the year 1996 and in Nigeria the growth rate was 36.8%. That means population of Lagos is increasing ten times quicker as compared to New York as well as Los Angeles (Lagos State Government, 2011). Statistics of People with High Disposable Income The real GDP growth rate of Nigeria was recorded at 7.4% in the year 2010 and annual gross income of people was approximately 130,095.4 USD. The annual disposable income of people of Nigeria was 115,976.9 USD in the year 2010 thus the purchasing power of people on that period was 356,475.9 USD. The following table shows that people’s purchasing power and disposable income has been increasing since the year 2007 (Euromonitor, 2011). Year GDP Measured at Purchasing Power (Million international $) Annual Disposable Income (Million USD) 2007 292,409.20 97,329.80 2008 310,743.60 113,613.30 2009 328,915.70 101,762.00 2010 356,475.90 115,976.90 2011 387,999.60 117,355.00 Source: (Euromonitor, 2011). According to report of 2006, less than half of the households are employed. The average unemployed persons per household were less than 3. It reveals that there were more unemployed persons in the household than employed. From the perspective of household heads almost 92.6% was employed and 0.8% was unemployed. House heads earn more than their spouses and other members of household. The number of spouses and other household member in the income group between 10,000 ? to 30,000 ? is higher than household heads. In this income group, the proportion of household head was only 34.3% compared to proportion of spouse which was 61.7%, and other household member’s proportion was between 67.9 % - 80.9%. Proportion of household head whose income level was 90,000 ? and above was 8% and spouse’s proportion was only 2% (Lamata, 2005). Average household income of Household Member (in %) Average Monthly Income (in ?) Household Head (%) Spouse of Head (%) 10000 – 30000 34.3 61.5 30001 – 50000 28.2 21 50001 – 70000 17.5 11.8 70001 – 90000 12 3.7 90001 and above 8 2 Total 100 100 Source: (Lamata, 2005). Pizza Express Pizza Express is one of the UK’s most successful private restaurant businesses. In the year 1993, this company was drafted on the London Stock Exchange. It has over 300 restaurants in the UK and Ireland which serve almost 16 million customers annually (Faloremo Trading, 2009). Pizza Express lends its brand through whole range of supermarkets in the UK. In the year 2004, Pizza Express merged with ASK Central to develop a leading casual dining group with more than 500 restaurants throughout the UK. In the year 2005, Pizza Express “floated Gondola Holdings on the London Stock Exchange” (TDR?Capital LLP, 2011). Gondola Group is one of the UK’s top dining groups that take care of the operations of Pizza Express. Gondola’s main brand has broad customer appeal and the company lend themselves to various occasions (Gondola Group Limited, n.d.). Gondola Group has restaurants in the UK and Republic of Ireland. In the year 2009, it operated almost 600 restaurants under various brands. Gondola Group was incorporated in the year 2006 in London (Bloomberg L.P., 2011). Business Model Plan for Creating Restaurant in Lagos Objective Pizza Express will open its restaurant in metropolitan area of Lagos as it is high populated area and almost majority of business operates in metropolitan area of Lagos. Pizza Express will enter into Lagos through direct investment. Pizza Express will provide finance from its own revenue as it is one of the top private restaurant of UK. The restaurant will provide high quality product, maintain its competitive position, and build its reputation as best food service in Lagos. Services of Pizza Express The restaurant of Pizza Express provides good service to customers, which is their main priority. The aim of Pizza Express is to create an ambience such that every customer feels happy and more relaxed when they are in the restaurant. It operates every day from 11.30 am to 11.00 pm (PizzaExpress, 2011). Market Analysis Lagos is Nigeria’s commercial and industrial centre. It has more than 2000 manufacturing industries and almost 200 financial institutions. This state alone port 60% of the total industrial investment. The foreign business is also attracted towards Lagos which has accounted for about 65% of Nigeria’s commercial activities. Many multinational companies are operating in Lagos state for example Shell, Mobil, UAC, Unilever, John Holts and others. Virtually all the banks in Nigeria have their head offices situated in Lagos. This state has the highest number of banks in the whole region of Nigeria. The business environment situation and economical condition of Lagos is good and there will be no problem in getting loan in Lagos as there are many banks. Thus, it will be profitable for Pizza Express to operate their restaurant business in Lagos (Economic Associates, 2006). Market Segmentation Majority of Lagos’s population is situated in metropolitan area. The products of Pizza Express are targeted towards tourists and people of every age group. It provides various kinds of foods ranging from salads and breads to tasty Romanian and Italian pizza, and organic coffee and soft drinks to Liquors. Children are a big part of the market of Pizza Express. Children between 4 to 19 years prefer pizza to any fast food and thus often influence family dining decisions. Pizza Express provides many dishes for children (Palo Alto Software, 2011). Market Segmentation Theory Marketing segmentation theory can be used for segmenting the market for Pizza Express. The preference segments of the company should be identified first to segment the market. There are three different patterns of customer preferences which are homogeneous preference, diffused preference and clustered preference. Methods available for segmenting markets are Research Based Segmentation, Existing Segmentation Services and Managerial Judgment. Pizza Express can use Managerial Judgment method for segmenting the market. In this method, company uses its market knowledge and industry knowledge for indentifying the market segments. Skills and insights of the marketer at using existing information is the key in generating good results from this method. Strategy and Implementation Pizza Express has different strategy than other restaurants operating in Lagos which differentiates its services from others. It can build long term relationship with customers so that once they visit Pizza Express restaurant, it becomes their preferable destination of choice. By providing good customer service the company should make them understand the value of customer relationship. Pizza Express must need to focus its offering on specific population group as the key market segment. It should sell ‘quality products’ by considering the quality consciousness of customers (Ward, 2011). Competition Analysis There are many international restaurants in the state of Lagos, which will be the biggest competitors of Pizza Express. The competitive edge of Pizza Express will be its various products and customer servicing experiences. The restaurant should constantly monitor the products to ensure quality foods and beverages at all times. The recipes should be delicious and fresh. The products of Pizza Express are targeted towards all types of customers, there are menu for children as well as teenagers and aged persons. Besides various types of pizza the restaurant also provides desserts, drinks and nutrition products (Ward, 2011). Marketing Strategy In Lagos, Pizza Express should start their marketing right from the phase of construction. The main factor in the success is simply that a customer can enjoy a good pizza along with fast service, and friendly familiar faces. Pizza Express gathers all vital information about the neighbourhoods through the use of POS (Point of Sale) system. POS system helps the restaurant to track top restaurants in Lagos and gather customer base for providing marketing offer. Pizza Express also arranges several events for attracting the customers throughout the year such as live Music Nights with talented musicians and magic shows. For kids, Pizza Express also organise school programs involving school visit allowing children to interact with kitchen operation and learn about hygiene. Art exhibition can aid them to attract varied consumers towards their brand. Pizza Express also sponsors various events such as carnival parties, theme night’s party, birthday party and many more. Similar events can be organised in order to leverage the benefits out of them. Sales Strategy A good marketing strategy can lead to desired sales to Pizza Express restaurant. In Lagos, the employee should be recruited in such a way that they have detailed understanding of customer preferences and also the ingredients and methods for preparing the food. The employees should be trained to describe and recommend items to regular customers and show them how to increase sales. The delivery of product should be on time and with good quality to maintain a long term relationship with customers and transform them into loyal customers. Pizza Express also engages with different customer segments through mobile marketing. The restaurant delivers tasty mobile offers to their new customers. Every customer who is registered to receive the mobile offers at Pizza Express will get an instant treat of free ‘Dough Ball’ or ‘Gelato’ with their meals once they opted in and show the massage to Pizza Express staff. Through this sales strategy Pizza Express can increase the sales and customer base (Gleanster, 2011). Almost all restaurants in Lagos add rice in their menu as it is the most preferable food in Nigeria. Over the years, the importance of rice in Nigeria has increased and this shows the growing demand of rice in Nigeria. Thus, Pizza Express also can put rice in their menu as it will increase their sales. Pricing Plan In the UK, the price of Pizza Express is slightly higher than other fast food outlets because Pizza Express intends to offer quality products which make its price a little high. The pizzas at Pizza Express range from Margherita Leggera pizza at a cost of ?8.50 to Francesco Mazzei Pizza which costs ?11.50. The drinks in Pizza Express are also expensive. The restaurant has relatively good wine list for fast food outlet and good selection of beers. The drinks of Pizza Express range from Low Alcohol Lager Beer at a cost of ?2.70 of 330ml to Sparkling Champagne with a cost of ?30.75 (PizzaExpress, 2011). The following figure shows the expenditure on food of Nigerian people: Year Expenditure On Food (USD million) 2007 31,941.90 2008 36,992.20 2009 31,049.60 2010 35,426.90 2011 35,753.90 Source: (Euromonitor, 2011). From these figures, it is quite clear that people in Nigeria spent on food a significant amount and it is a good idea for Pizza Express to open their restaurant in Nigeria. If any customer planned for nice dining experience, Pizza Express can deliver them the best experience in Nigeria (Smith, 2010). Employment Plan At the outset, when the Pizza Express restaurant will operate in Lagos the salary of workers can be set at a moderate level and according to the existing wage structure. This will keep the labour cost down as well as the cost of production will be less. The employees should be trained for all kind of restaurant operations such as preparing pizza, working on counter and delivering it on time. The restaurant also can recruit part time staffs for the post of delivery driver. When the business of Pizza Express increases, it can further employ more staffs. Suppose, at initiation, the Pizza Express restaurant employ 12 staffs out of which three are part time staffs. The forecasted labour cost of part time staffs is estimated as 3.5% of total sales and full time staff is 16,000 ? per month. The estimated sales of Pizza Express are considered as 13,000,000 ? per annum. Thus, the wages of employees would be 13,000,000 ? 3.5% = 455,000 ? per annum. Thus, the wages of three part time employees will be = 455,000/ (12?3) = 12,638 ? per month. Financial Plan Say, to start Pizza Express restaurant in Lagos the estimated start up cost is 50,000,000 ? (326,492 USD). Thus, out of total estimated cost 60% will be covered by franchise or company’s own capital and 40% will be taken through bank loan. Then the amount of bank loan will be 20,000,000 ?. The interest rate of Nigeria is 6.50%. The repayment amount will be 40, 00,000 ? per annum. Then the Break even point will be achieved at the end of 6 years considering the repayment schedule of loan amount. Calculation of interest amount per year: 1st year 6.5% of 20,000,000 = 13, 00,000 ?. 2nd year 6.5% of (20,000,000 – 4,000,000) = 10, 40,000 ?. 3rd year 6.5% of (16,000,000 – 4,000,000) = 780,000 ?. 4th year 6.5% of (12,000,000 – 4,000,000) = 520,000 ?. 5th year 6.5% of (8,000,000 – 4,000,000) = 260,000 ?. The estimated sales of Pizza Express restaurant is 13,000,000 ? per annum, estimated fixed cost is 32,000,00 ? per annum and estimated variable cost is 20,000,00 ? and profit is 30% of total sales. Then contribution = 32, 000, 00 + (30% of 13,000,000) = 32, 000, 00 + 39, 00,000 = 71, 00,000 ?. P/V ratio = 71, 00,000/13,000,000 ? 100 = 54.61% Therefore, BEP (in ?) = 32,000,00 / 54.61% = 5859732.65 ?. Business Model Plan Outline SWOT Analysis of Lagos Strengths Growing Population of Middle Class People: The primary strength of Lagos is that the population of middle class people is growing rapidly in the city. In the year 1950, Lagos’ population was only 288,000 people. Now through rapid growth, Lagos became Africa’s the most populated state and the third largest city in the world. According to Population Reference Bureau, it is estimated that Lagos will reach third position with a population of 23.2 million people by the year 2015. Therefore, there will be ample opportunities for Pizza Express to run their business in Lagos (Motavalli & Et. Al., 2005). Commercial And Industrial Hub: Lagos is one of the major commercial as well as financial hubs of Nigeria. Lagos was the former capital of Nigeria and this state serves as a major port. Many international business activities are carried out through this port. Thus, for Pizza Express it will be much easier to import their ingredients through Lagos port facilities (Yawar, 2011). Tourists’ Attraction: The city of Lagos has many attractions; thus thousands of tourists across the world come to visit Lagos. Lagos is no doubt a modern metropolitan city and it ranks in 7th position among the fastest growing cities in the world. Its geographic variety is rich as there are many beautiful beaches, elegant sites, diverse landscapes, luxurious parks and delicious foods. Thus, there are a variety of opportunities for Pizza Express to start their business in Lagos. Modern Life Style: The city is full of modern amenities as well. There are abundant shopping malls, high class commercial zones, exotic night life, and it is famous for its African beauty. Thus, travellers get attracted to this city. Cheap Flight: There are wide ranges of flight available in Lagos. The increasing demand of cheap flights to Lagos attracts travellers from all over the world. Depending on budget a traveller can choose any flight and book ticket over the internet. High IGR: High IGR (Internally Generated Revenue) is strength of Lagos. Lagos was one of the leading states as a percentage of total revenue measured by IGR. Its IGR rate was 63.5% in the year 2008 compared to 51.2% in 2007. According to Central Bank of Nigeria Annual Report 2008, IGR of Lagos was 139.2 billion ? in the year 2008, and the allocation from federation account was 80.16 billion ?. The report also reveals that the performance of IGR improved since 2007 to 2008 from 1.5% to 1.8% of GDP (Lewis Media, 2009). The increase in IGR is extremely imperative in Lagos as it can provide financial support to the state’s business. The administration of Lagos focuses mainly on increase of IGR which was 10 billion ? per month in the year 2008; since higher IGR can improve the financial and economic conditions of business (Financial Nigeria, 2008). Weaknesses Informal Land Management System: The formal land management system is especially weak in Lagos. In Lagos, the informal sector is the main provider related to urban land as well as housing. Major issues for confronting to informal land use are uncontrolled and conflicting land use, unplanned growth, unlawful squatting, overcrowding, insufficient or deficiency of basic services and infrastructure. Informal land use is characterised by illegal use of public land, unauthorised subdivision and rental of land along with unauthorized construction of structured building, dependence on low cost as well as locally accessible scrap construction material, absence of regulation, dependence on family labour, non–availability of credit and other subsidised finance. The overcrowding, insecurity and absence of inadequate basic facilities are other reasons for informal land use. The commercial and industrial area of Lagos is approximately 3345 square kilometres which is only 0.4% of the total land area of the country. According to report of World Bank, almost two third of the population resides in the ‘informal settlement’ that are scattered around the city according to the year 2006. The number of informal settlement of population in Lagos Metropolis is growing rapidly. The flood of population coupled with penetration of informal land use has been a serious problem in Lagos Metropolis (Olajide, 2010). Thus, Pizza Express can face certain difficulties regarding finding a land in metropolitan area. Therefore, this factor has to be considered while searching for appropriate place of land for the business. Ineffective Power System: The absence of stable and effective power system is another weakness of Nigerian economy as well as Lagos. The energy crisis has great affect on sustainable growth. The steady electricity supply system leads to 25% increase in rate of economic growth. The power sector had faced a crisis in the year 2010. The national grid operates on a radical system and it is extremely fragile. The actual power generation has not exceeded over 3500 MW in the last 10 years. The distribution system was very weak in the electricity chain. Inadequate metering is an issue in non – technical loss. The pricing as well as electricity related tariff was also insufficient in order to cover up cost of providing good electricity service. Another issue which hampers the power generation is legacy of debt. The technical distribution loss, non – technical loss, collection loss was accounted almost 7%, 27% and 23% respectively (Dafinone, 2010). Nigeria’s Gas–Fired and Hydroelectric power plants have capacity of generating 6000 MW but it generated slightly higher than half of its capacity in the year 2008 because of corruption, inefficiency, poor maintenance and attack on feeder pipelines (Wanted Worldwide Ltd, 2008). Opportunities Largest Growing Market: Lagos is the finest destination of business and investment. There are 29 industrial estates and also four ‘Central Business Districts (CBD)’ in Lagos. Thus, it is considered as the largest market in Sub-Sahara African region. Lagos is blessed with massive and active population. The FIFA U- 17 World Cup held in Lagos in 2009 had promoted it further. Lagos is the centre of Nigerian capital, money market, oil and gas pipeline project, national power and energy source and one of Nigeria’s chief ports. Almost 70% of national cargo passes through Lagos port. It is the media hub and international telecommunication gangway. Development of Transport: Lagos is Nigeria’s busiest international aviation hub. The Murtala Muhammed International Airport of Lagos controls over 70.61% of international and 58.30% of domestic traffic. Even though Lagos has huge business opportunities, the FIFA U- 17 World Cup arrangement even broaden the business opportunity for investors and many foreign direct investors are attracted to invest and run their business in Lagos (Ayobolu, 2009). The transport system of Lagos is developing. Road as well as rail transportation are most significant and widely used by the people of Lagos. The state of Lagos is covered by ‘5000 kilometres of highways’, urban and rural roads. Almost 90% people prefer road transportation (Economic Associates, 2009). Prior to 1999, the public transport system of Lagos was not so good. In the year 2007 government of Lagos launched BRT (Bus Rapid Transport) to improve the transport system and business activities, thus turn Lagos into a Mega City. Through the launching of BRT system, ‘Lagos has joined other modern Mega Cities’ by overcoming the problem of urbanisation and overpopulation. Opportunities still exists for development of transport sector (Celebrating Progress Africa, 2011). Thus, good transport system in Lagos can help Pizza Express to provide delivery of pizza faster and maintain good customer service. Development of Infrastructure: The government of Lagos is taking up many infrastructural developments in massive scale. This development are ranging from housing to road construction, rural agricultural development, rail transport development, waterways development, clearing of drainage system, development of street lights, recycling plants, beautification of tourism sector, beaches as well as historical monuments, developing fish farming, animal husbandry, building of hotels, cinemas, shopping mall, casino as well as development of free trade and export business, power/energy generation and supply, business parks, refineries, petrochemical plants and helicopter/airport development. Thus, there are many areas in Lagos where Pizza Express can invest and make successful business (Ayobolu, 2009). Attractive Tourist Site: Lagos state is blessed with coast line of about 180 kilometres which makes Lagos popular foreign beaches that are good for parties, entertainment, mediation and fun. The Lekki Beach is one of the busiest beaches in Lagos. It attracts almost five million tourists per year. It is famous for its musical jamborees. It has facilities such as beach huts, seats umbrellas and also has platform for open air performance. Another popular beach is Alpha beach which is extremely preferable for leisure seekers. It provides premium facilities such as quad bikes, beach volley/soccer, pool karaoke, small chops and chilled drinks. Besides these, there are Victoria Beach, Eleco Beach, Badagry Beach, Atlantic Beach, Odidi Beach, La Campaigne Tropicana Beach, Aivoji Beach and Sapo Beach which are popular to both foreign and domestic tourists. Therefore, this is an encouraging sign for Pizza Express as tourists visiting from different nations can be considered as one of crucial target customer segments for them (Ayobolu, 2009). Threats Tax Evasion: The high tax evasion as well as tax avoidance greatly affected the government revenue in Lagos. Tax evasion and tax avoidance are quite significant in Lagos. The taxation system of Nigeria is not efficient and effective. There are unavailable databases of all taxable individuals. The mechanism for assessment and collection of taxes is not adequate and there are no strict actions to payment of taxes (Olabisi, 2010). According to Mrs. Afolashade Afolayan, the Assistant Legal Adviser of LIRS (Lagos State Internal Revenue Service), LIRS has locked 40 companies in the year 2010. During the years from 2009 to 2010 LIRS 420 companies were sealed up for evading tax in Lagos (News Online Nigeria, 2010). The business of Pizza Express needs to take proactive approach and be aware of the laws in Lagos. The restaurant must make the pricing of product and business operations considering the taxes of Lagos city. Global Warming: Lagos is almost two meters above the sea level, so the effect of global warming is a big threat for Lagos. Global warming causes floods in Lagos area, climate change and drastic affects on skin. Lagos has a population of 18 million people which plays big role in environment pollution through uses of millions of generators and vehicles in the metropolitan cities. The pollution has contributed perilously to the global warming (PM News, 2010). The increasing pollution and global warming can decrease the arrival of travellers in Lagos in near future and this can affect the business of Pizza Express as part of its business is targeted towards foreign customers. PESTE Analysis of Lagos Political Politically Nigeria is divided into 36 states. In the year 1991, the capital of Nigeria was moved from Lagos to Abuja. Nigeria won its independence in the year 1960 (Advameg, 2011). After 21 years of civilian rule, Nigeria was governed by a former military ruler, Olusegun Obasanjo. He represented the PDP (Peoples Democratic Party) party. In the year 2007 PDP party won the election (Adebayo, 2010). Another political party of Nigeria is ACN (Action Congress of Nigeria). Out of 63 political parties registered by INEC (Independent National Electoral Commission) only these two parties shown significant presence in the contests of election (Ajayi, 2010). The political condition is stable in Lagos, so it will be easy for Pizza Express to operate business smoothly in Lagos state. Pizza Express should consider the existing rules and regulations of the government while performing their business activities in Lagos. The investment laws of the government also have to be observed carefully as Pizza Express will look for direct investment. In Nigeria, Nigerian Investment Promotion Commission (NIPC) is a government established agency. They enacted ‘NIPC Act No. 16 of 1995’ in order to promote and encourage investment in Nigeria. These factors have to be kept in mind by Pizza Express (NIPC, n.d.). Economic Lagos is Nigeria’s economic capital as well as financial and commercial centre which attains 31.98% of Nigeria’s GDP. Lagos is the nation’s one of the leading contributors in the non – oil sector which contribute almost 19% towards GDP. According to Economic Associates report 2005, the contribution of Lagos is similar to 31 Nigerian States. Lagos alone contribute for 70% of total ‘National Cargo freight’, 58.30% of domestic and 70.61% of international aviation traffic, 70% of National Industrial Investment. According to World Bank, 2001 the GNP of Lagos is thrice than any Western African Country. In the year 2008, Lagos’s GDP was 2.156 trillion ?. This makes Lagos an economic hub and facilitator for innovation (Bamidele, 2008). This is a big advantage for Pizza Express, as good economic condition can increase the buying power of people and they will be able to spent money on food. This will increase the profitability of Pizza Express business in Lagos. Social Lagos is a highly religious African city. Along with the pressure of urbanisation and influence of modern development, religion is still a significant force of Lagos. The state has heterogeneous population and a religious system which vary. The Yoruba, an African people of southwest Nigeria constitute Lagos’s principal ethnic group. English is the most commonly used language, but people generally also use other Nigerian languages (Africatravelling.Net, 2001). Lagos is a tourism place, so tourists arrive from all over the world every year. The increased popularity of tourism leads to boom in demand for restaurant business and thus Pizza Express in Lagos state. Technological According to Economist Intelligence Unit, Nigeria is among the nations in terms of ability to use ICT (Information and Communication Technology) to achieve its mission and vision. In using ICT technology, Nigeria’s rank is below South Africa as well as Egypt, which ranked in 39th position and 57th position respectively in the year 2008. In Nigeria, there is an increasing awareness in the use of ICT in case of teaching and learning. The major players of ICT development in Nigeria are: NCC (Nigeria Communication Commission), National Space Research and Development Agency and many private telecommunication companies such as MTN, Etisalat and others (Okiki, 2011). The internet users in Nigeria have increased from 2007 onwards. The following table shows increasing use of internet in Nigerian people. Year No Of Internet User In Nigeria 2007 10000 2008 23982 2009 43989 2010 53363 2011 61258 Source: (Euromonitor, 2011). Therefore, it can be observed that there is an increasing trend in using technology in the people of Nigeria. This will help to make any technological innovation in Pizza Express business. If Pizza Express upgrades and implements any advance system regarding the business operation, management or service and delivery of its product the people will accept the change and show interest in the new innovation. Environmental The city of Lagos lay on textile of islands, lagoons as well as creeks scattered by mangroves. Greater Lagos is bordered by other towns of Lagos state. Of the 1381 square miles of land surface in Lagos state, Lagoons constitute about 305 square miles i.e. 22% of Lagos. Much of the Lagos land surface is just 15 feet above sea level. Environmental scenario is quite favourable for Pizza Express in Lagos to start-up their business (Advameg Inc., 2008). Therefore, from the overall discussion it is quite evident that Lagos can be profitable place to venture for Pizza Express. Conclusion & Recommendations The purpose of Pizza Express is to generate sales and profit in Lagos state. As this is a service business the main emphasis should be on customer satisfaction. A thorough analysis of customer preferences should be made for both domestic customers and travellers. Proper marketing strategy will make the customers happy and they will strive to come in the restaurant to enjoy their meal. Pizza Express is known for good quality and variety of products, so the restaurant should keep in mind their existing strengths and use it for gaining competitive advantage. The location Lagos is suitable for opening restaurant because it attracts tourists and travellers. The social, financial and political condition is stable. There is fair competition and business environment and huge scope for growth opportunity. Pizza Express must take advantage of every opportunity by using its marketing knowledge to increase the volume of sales. Good services will lead to good customer relationship and thus help to create reputation in Lagos state. References Ayobolu, J., 2009. Lagos: The Premium Destination of Business and Leisure. Article 8000. [Online] Available at: http://www.gamji.com/article8000/NEWS8844.htm [Accessed March 24, 2011]. Advameg, 2011. Nigeria. 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