The purpose of this assessment is to assess skills and knowledge required to establish the strategic direction of the organisation, and to sustain competitive advantage and enhance competitiveness.
You are required to analyse and interpret relevant markets, capability assessment of the organisation, and its existing and potential competitors and allies. It also covers implementation of the strategic plan in the context of the case study scenario outlined below.
Read the case study below and produce the report that will cover the following elements:
Case Study
Recently you were given the task of creating a business and marketing plan for Paul’s restaurant in the Hunter Valley for potential investors. Paul has now been able to open that restaurant due partially to your efforts in the creation of the solid business plan.
Paul has now asked for your assistance to produce a strategic plan for his restaurant for the upcoming Summer Holiday tourist season and the following years in the Hunter Valley.
Paul’s Restaurant is called “Australia Fare” and is located in Branxton on the road to Cessnock. The restaurant is a sandstone and glass building features lush indoor gardens intermingled with white clothed tables and a huge welcoming fireplace in the centre and has a seating capacity of over 120 people.
Large windows to three sides offer views of surrounding vineyards and gardens, framed by the majestic Brokenback Ranges in the distance. The ambience is sophisticated yet relaxed with welcoming staff and country-friendly service. The restaurant is fully air conditioned during the warmer months, and in winter the cosy open fire and flickering candles impart warmth and elegance.
Its courtyard area seats around 60 people and has large freestanding umbrellas for shade in the hot summer months. Enjoy your favourite lunch al fresco style while taking in the views of the new Hunter Valley Gardens and further on to the Brokenback Ranges.
The Hunter Region is rich with many attractions, vine yards, restaurants, hotels, motels, bed and breakfast, gardens, hot air ballooning, arts, music festivals, cottage industries, glass blowing, bush walking, horse riding.
The vision of the business is to become profitable within the first 3 months of operations and to establish a reputation as a restaurant of excellence and value. There is no mission statement yet, as Paul has been to busy to set his mind to this task.
Paul has decided to join the local business association and is planning to investigate local tourist information centre for advertising.
Paul has not thought much about organisation policies and procedures for staff or performance measures. He does have a license from local council to operate his restaurant and has been very busy researching suppliers, ordering furniture, setting up the restaurant, hiring people and setting the menu.
Paul’s business plan has the following information, which does not align with the strategic plan you, will develop:
Proposed Business: My idea is to open a medium sized restaurant in the Hunter Valley. The restaurant will focus on contemporary Australian cuisine. The choice of theme will allow dinner to experience Australian food with all of its multicultural influences.
Marketing Research / Planning: There are a couple of other restaurants offering a range of different cuisines, but my restaurant will be unique so I don’t envisage any direct competition. So marketing expenses will be minimal. I might run some ads in the local paper and put out a flyer that can be placed on cars in the local area and the local information centre.
Operations Plan: As soon as I get word on my financing, I’ll start looking for appropriate equipment and a location. Suppliers won’t be a problem. With the level of business I know we can achieve in the first few months, I will be hiring eight employees: front of house manager, two chiefs, and five wait staff. This will leave me free to do the managing and marketing.
Sales Projections: Sales in Year 1 will be $500,000 and expenses $410,000 which means I make a profit of $90,000. I’ll have several cost controls but it is hard at this stage to tell what my expenses will be. In Year 2, because we’ll be well known, I know we can increase sales by 20% for total revenue of $600,000. I think I can hold my expenses constant at $410,000.
Conclusion: Since I have had a lot of experience working in a variety of hospitality venues around Australia and have an understanding of Australian influenced cuisine, I am positive I can make this venture work. If you would like more information, I’d be happy to speak with you in person. Just call me at my home number. Thanks for your consideration.
You will need to ensure that when constructing this strategic plan you are aware that you have addressed the following:
- Thorough analysis of the organisation's own capabilities, those of their existing potential competitors and allies, and the external environment
- A strategic plan which includes objectives, strategies, timeframes, performance indicators and methods for monitoring the implementation of the plan
- Knowledge of relevant legislation
Answer:
Introduction
The ‘Australia Fare’ attracts approaching customers by providing them with unique and exciting dining experience. Professional service, high quality food and beautiful environment differentiate ‘Australia Fare’ from its competitors.
Current and Near-Future Products
The Products sold be ‘Australia Fare’ fall into following categories-
- Pies and Cakes
- Juices and Sodas
- Kid's meals
- Sundaes
- Shakes
- Egg Meals (Omelets, scrambles, eggs)
- Griddle meals (French toast, waffles, pancakes)
Near-Future products-
- Starter soups
- Smoothies
- Burgers
- Sandwiches
- Meal Salads
- Hot dogs
- Quick breakfasts (muffin, granola, fruit salad, cereal etc.)
Competitive Advantage
The pricing for ‘Australia Fare’ has been intended to make the restaurant a fast food launch. The rationale is customer will feel the splurge on drinks, desserts and starters as it does not provides the customers with everyday experience. The pricing set is 5 percent lower than conventional diners with unique packaging (Lee, 2017).
Benefits and Value Provided to Customer as Opposed to 'Features’
‘Australia Fare’ is a themed and unique restaurant where premium customers are willing to pay little extra for all the excess elements which are beyond foods. First time deals and coupons can be easily found in online ads and local events and official website. A standard deal can be free small starter with meal purchase. This is how the customers can be tracked through name as well as address.
Environmental and Social Impacts and Implication
The ‘Australia Fare’ diner blog is shared between the management and servers in the restaurant. After the theme nights are over, a written post will be about the events providing the review and taste of what the whole evening comprises of? Blog posts will provide trivia questions on food items and encourage answers and user comments when publicizing the menu of ‘Australia Fare’. Customers are encouraged to become the fans of the Facebook page.
What Regulations, Standards and Codes must be complied with?
Australia is well known for world class dining. The industry includes licenses cafes, restaurants and special circumstance license which include pool halls, caterers and limousines that may serve food. 95 percent of catering business employs less than twenty people. This makes it an intensive service community which sits squarely in a business industry (Olsen and Zhao, 2004).
Product in its life-cycle
- Research completed-Quick Breakfasts
- Prototype completed- Starter Soups
- In-house testing-Burgers and Sandwiches
- Customer testing-Hot Dogs and Meal Salads
- Market ready-Kid’s Meal, Fruit Juices
- First up-grade completed-Egg Meals
Product Analysis and Planning
Current Situation
Australians will be eating more meals out of the home and this is due to lifestyle and work pressures. People rely over takeaways, restaurants for catering to the dietary needs. It is critical to prepare the menu and setting right price. A menu price is governed through market forces and amalgamation of food costs and how to realize the profit.
Key Product and Market Issues
Selecting an appropriate location is necessary. Selection of right location can make the difference between success and failure.
Key Strategies
State, Federal and local councils will govern the hospitality sector. In order to start a new business, key decisions must be considered before leasing or purchasing the new building. Legal requirements for the restaurant must be considered.
Performance Measures and Targets
Workers will work in a safe environment which is free from discrimination and receive entitlements. The industrial awards and different styles of working must be considered.
Conclusion
Finding good staff in hospitality sector is a biggest issue. Retention of right staff, the employer needs to be aware of legal rights and must provide to prospective employees.
References
Lee, P. (2017). Training and Development Trends in the Hospitality Industry- Evidence from Hospitality Management Journals and Development Trends in the Hospitality Industry- Evidence from Hospitality Management Journals. Journal of Tourism Research & Hospitality, 06(02).
Olsen, M. and Zhao, J. (2004). Industry change, environmental scanning and firm strategy: how is the hospitality industry doing?. Tourism and Hospitality Planning & Development, 1(1), pp.13-18.
