Business Strategy Proposal - Case Study Example

Business Strategy Proposal Name Course Name and Code Instructor’s Name Date Executive summary This paper entails the findings of an analysis, the strategies, evaluation and recommendations of a research done on a restaurant called 3 one7 which offers great dining experience and it is located along 317 church streets Parramatta. The opening hours are lunch Mon-Sun from 1130hrs to 1600hrs and dinner Mon-sun 1700hrs till late night. It was established in December 7th, 2005. It is a business strategy proposal and some of the detailed information included is the internal and external analysis, the strategies, the implementation and recommendation. Table of Contents Executive summary 2 Table of Contents 3 Introduction 4 External analysis 5 Technology and market 5 Climate 5 Politics 6 Internal Analysis: SWOT Analysis 6 Strengths 6 Opportunities 6 Threats 7 Weaknesses 8 5 Strategies 8 Recommendations 10 Reference 12 Introduction Hospitality is an industry that has recorded a very high rate of growth in the entire world and it is an important global industry of tourism.9% of the world’s GDP is generated from the service sector which is hospitality and tourism. It should be noted that 70% of the GPD is generated by the tourism industry (Dredge & Jenkins, 2007). Restaurant comprises an important part of hospitality industry whereby its gives great support to both the medium and small enterprises in the world. The restaurant the business strategy proposal is being done is called 3 one7. It offers great dining experience and it is located along 317 church streets Parramatta. The opening hours are lunch Mon-Sun from 1130hrs to 1600hrs and dinner Mon-sun 1700hrs till late night. It was established in December 7th, 2005. Internal and external analysis Australia offers the tourist a wide range of gastronomic experiences. There are so many bars and food outlets in the Australia (Hall, 2008). There are very many hotels and motels, which are of different classes. They are offered Buffy services whereby they are allowed to choose from a variety of foods. These food outlets offer a wide variety of foods considering that the tourists at the Australia are from different origin. The quality of water for drinking that is available is good. This is because the tourists are given evidence of the water quality as per the requirements of hazard analysis critical control point (HACCP). The foods are also offered in very high hygienic conditions. Alcohol is available in most of the hotels in the bars. This is because not all of the tourists consume alcohol and so they are given an opportunity to choose. The bars in the hotels are separated from the restaurant areas (Hall, 2008). Varity of sauces are offered for the purposes of adding flavour to the food. Sea foods are one of the min components of the dishes offered and the main reason is because sea food is part of the traditional food for the people of Australia. It is a place that is richly endowed with fruits and vegetables which makes them readily available in the different courses. External analysis Technology and market Restaurant like Gulf Safa has five major branches Australia and a fleet of more than 50 refrigerated trucks to ensure prompt delivery status within 24hours beats the technology of the 3 one7 restaurant. Therefore, for the company to keep up to the market standards it has to employ a number of new and improved technologies. Also, its food supply not only reaches the hypermarkets but also to the small groceries. Generally, there are many problems in terms of marketing due to congestion of the products in the market because of the fact that these companies produce the same range of products. This factor may affect the pricing of these products. Climate The climate found in Australia is basically dry and hot with a maximum temperature of over 40% in some months like July and August. The average rainfall is about 120mm which falls in very short torrential. This is one of the greatest challenges in that such climate really affects the health of cattle as well as the condition of growing their feeds and also the growth of foods products. This may force the 3 one7 restaurant to at times import the raw materials for the food preparation. Politics Politics and the governance of Australia is yet another factor likely to cause an effect in the production. This is because most activities are governed politically. For instance, the office of the prime minister has been bestowed a great responsibility. Also the issues of finances (treasury) are politically sorted. Internal Analysis: SWOT Analysis Strengths There are a number of strengths associated with 3 one7 restaurant. First of all, Participation in the community is a major strengthen in increased 3 one7 restaurant opportunities. For instance, Social clubs in which the restaurant has been part and parcel of has enabled it to reach out to so many members of the community. It is widely known to support as many talents as possible in the community during community contests such as sports and cultural activities aim at cultural awareness among others. It is also known to support sports in that it sponsors many clubs as well as encouraging the youth to participate in local sports like handball, football, marathons, camel and horse races. All this aims at increasing its popularity with the community members and also winning of the customers trust, hence increasing trust. Opportunities The Restaurant’s Customer relation is another strong point in increasing its production. It is the tradition of the restaurant to perform a customer evaluation or market study through an external professional research, so as to get to know the opinions of the customers, perceptions, attitudes and expectation. This enables the 3 one7 restaurant to come up with products which matches the interests and needs of the community. The restaurant produces innovative food products and at customer’s pocket friendly price. It has come up with a wide range of sub products from cooked foods. For example, fresh milk, flavoured milk, plain yoghurt, flavoured yoghurt and cheese among others. Also the innovative packaging for the take away foods is another factor that has increased its market in that different quantities and wide range of packages are in use hence leaving customers with an opportunity to choose what they need and what they can afford Threats Competition: 3 one7 restaurants is not the only restaurant that offers food to the customers at the best hours. As a matter of fact, demand for foods from the restaurant is really rising in the region. It faces great competition from many other restaurants, hotels and motels. So as to keep up with the level of competition from these other premises, the 3 one7 restaurant is forced to reduce the prices of its food products relative to these other eating premise as well as to reduce the cost of production (Mowforth & Munt, 2003). Kangaroo’s restaurant is a competitor in the sense that it majors with almost the same food services and products as 3 one7 restaurant. It is actually the greatest food provider in that region. Therefore, it poses competition in the area of marketing the products and employment of workers. Gulf Safa restaurant competes with 3 one7 restaurant in that it produces very high quality food and services due to its great technologies of production. Also, its very well systematic organized management is an added advantage. Also it majors with almost the same products as 3 one7 restaurant which. Milco Restaurant is also a competitor of 3 one7 restaurant in that it produces a variety of same food products (Mowforth & Munt, 2003). Weaknesses The main weaknesses of the restaurant are the high food prices at the moment. This has brought about limitations of the number of customers willing to eat from the premise. 5 Strategies One of the best strategies entails decisions that are made by a business pertaining to the strategy of pricing, retail pricing, discounting in terms of the volume purchased, pricing according to the whole sale, early payment discount and cash, bundling, flexibility of the prices, price discrimination and seasonal pricing. The Business must take care of its customers needs in all of these areas (Weaver & Lawton, 2010). It should be known in the market to sell its services at a very low price or rather moderate prices that are very favourable to the customers worldwide. Decisions on promotion should involve communication issues. This is whereby information is passed to the customers with an aim of letting them to getting a positive response from the customers. The following are the main decisions that should be involved in the marketing strategy of promotion; promotional strategy like the pull or the push, advertising, publicity and public relations, budget on marketing communications, sales promotions, sales force and personal selling (Weaver, 2001). The Businesses should employ these factors to ensure it has catered for the needs of its customers efficiently. It can have a personal spokesman who relays the information about the activities of the business to the world and especially the customers who are interested in the products and services the businesses deals with. It should be able to have its new products in the market before they are published in the magazines. This ensures that as the business goes ahead to advertise its new product in the market people are already desperately looking for the product. Strategic planning is very important as far as the process of improving the performance of small business is concerned (Thompson & Martin, 2005). This is because the components of the strategic Plan are all geared towards the improvement of the business performance in terms making the activities of the business more purpose oriented, objective oriented and finally in terms of human resource management. Human resource management as a way of strategic planning in any organization and it is very important. This will entail analysis of the resources in terms of the skills, the background, training of all of the employees as well as the managers and also the management of the organization structure. Managers in a business should be encouraged to think strategically in all that they do through embracing the process of training. One of the ways of human resource management will be through motivation. Through motivation, there can be a great deal of improvement in performance. The importation of the new machines must be done as soon as possible. This is because for the restaurant to beat the competition in the market it has to use the modern technology. The use of the new technology is all aimed at increasing the productivity of the 3 one7 restaurant. It is anticipated that by using the new modern technology, there will be an increase of about 20% in the production and a decrease of 25% in the cost of production. However, this does not mean the existing ones will be done away with. This is why; the employment of new workers is of paramount importance as far as this is concerned so that all machines will be working. The company needs to approach the government, banks and other organization so as to get loans to increase its capital. Due to the introduction of the new technology, a new critical point must be introduced. This is to ensure that the quality of the products is not tampered with as far as the health laws like the HACCP regulation is concerned. Low cost strategy is very important. The Restaurant will be very committed in the area of reducing the cost of production. For example, before trying to import the raw foods for cooking in the restaurant, it will try as much as possible to make use of the locally available raw foods. This will actually cut down on the costs of importation. The introduction of raw foods materials for cooking from other sources will also be a strategy to cut down the costs. This is because, the price the restaurant will offer to the suppliers for every quantity they supply is actually, relatively lower than the cost of production of that same quantity the 3 one7 restaurant produces itself. Actually, it is at 5% lower. This is to ensure that the issue of introducing new raw food will be beneficial to the 3 one7 restaurant. Recommendations The purchase of the equipments must be done immediately. However, this will be done in phases. A few equipments will be bought and then put into work. This is because of the large amount of capital needed to purchase them. The introduction of the new technology will not be done instantly (Peter, 2007. The new and old technology will be running simultaneously to ensure that the output or overall production of the restaurant is not tempered with. Then, in future, after there is a satisfactory improvement in terms of production from the restaurant operating with the new technology, same equipments to be purchased and total replacement to be done in other restaurants too (Peter, 2007). Also, the delivery of the restaurant’s food products will be done first to a few retail or wholesale shops. Then later depending on the outcome, more shops can be involved in the business. This is to ensure that no major losses are incurred in the process. The process of employee’s recruitment will be done after the introduction of the new technology because, by then more workers will be needed. This step of action will call for the introduction of shifts as well as a new restaurant branch that will accommodate all these workers. The issue of more capital must be dealt with immediately so that the source can be identified. For the restaurant to be able to implement all the strategic goals like building a new branch, purchasing more stock and equipments, there is a need for more capital. Therefore, consultations in the form of proposals must be done with the government through relevant ministries before the budget is read (Finlay, 2000). Also, the proposal must be followed to ensure an action is taken towards it. Loans also intended to be taken from the banks must be applied the soonest possible since without money nothing can be done. Reference Dredge, D & Jenkins, J. 2007. Tourism Planning & Policy. Milton, QLD: John Wiley & Sons. Finlay, P. 2000. Strategic management: an introduction to business and corporate strategy. New York: Pearson Education. Hall, M. 2008. Tourism Planning: Policies, processes and relationships. Harlow, UK: Pearson. Mowforth, M. & Munt, I. 2003, Tourism & sustainability. London: Routledge. Peter, F., 2007. The practice of management. New York: John Wiley & sons. Thompson, J. & Martin, F., 2005. Strategic management: awareness and change (5th Ed.). California: Cengage Learning EMEA. Weaver, D. 2001. Ecotourism. Milton, Qld: John Wiley and Sons Weaver, D. & Lawton, L. 2010. Tourism management. Queensland: John Wiley & Sons. Read More