Discuss about the case study PESTLE Analysis for Climate Change and Business Perspectives.
The Blue marina located on the ground floor of a shopping complex is an Italian restaurant mainly serves delicious but affordable Italian cuisine. The restaurant is located in a locality which is easily approachable and has a seating capacity 100 customers at a time. Over the years the management system of the restaurant is top notch from its waiting service till the delivery at the table, everything is taken care of with ease in a highly professional way. But over the last few years, the restaurant is going through a rough patch as the management is in disarray and the restaurant is registering loss which never ever happened in the history of the restaurant. All these are due to the fact that similar businesses had started operating under the same roof thus giving rise the competition and dividing the business share.
The new manager has come up with some new plans and proposals which are intended to better the sales of the restaurant and at the same time help it regain its previous glory. The proposals made by the new manager seems lucrative but much depends on how those plans are implemented. The plans need a huge investment and thus if something goes wrong than the business might suffer as a whole.
The Blue Marina’s approaches address matters recognized in this analysis being carried on by following PEST. The PEST mainly recognize the external factors that may affect the business in a positive or in a negative way by taking in view the macro-environment the business is operating (Feys, B. and Probert, C., 2015). A company's success at depends on these effective strategies that are taken to counter these external factors which are more likely affecting the business. The PEST analysis shows that there are mainly opportunities or threats which are in the vicinity of the restaurant's business atmosphere and if not handled properly then the business might lose its name in this ever changing economy.
Political factors which are or might affect the Blue Marina’s business
The Blue Marina's considers the impacts of the political environment on its industry. This a part of the PEST examination recommends the effects due to the government’s action on the full-scale environment of affiliations (Pestle, 2014). For The Blue Marina’s circumstance, the most principal political outside parts are:
- Progressing public health guidelines
- Unresolved tax reforms
Economic factors which are or might be important to the Blue Marina
Economic changes in the country do affect the business of the restaurant in which it is operating. This part of the PEST analysis do analyze the effects the economic changes might have on the macro-environment of the business (Yüksel, 2012). The main economic factors that they affect the business of the restaurant are:
- Interest rates
- Inflation rate
- Economic growth
- Exchange rates
Social factors which are influencing or might influence the Blue Marina
A business must have a thorough knowledge of the society in which it is operating. This part of the analysis mainly takes into account the social factors that may help or limit the business of the restaurant (Burström, 2012). The major social factors which affect the Blue Marina are:
- Career attitudes
- Priority on safety
- Health consciousness
Technology is a big factor in any kind of business if a business is not up to the mark with the current technologies than it may lag far behind its competitors (Pätäri, 2010). This part deals with the technological factors that they affect the business of the restaurant which are:
- Inadequate business automation
- Increase sales and home delivery by the help of mobile devices
- Moderate R&D activity being done within this business.
The SWOT analysis takes into account the internal factors i.e. strengths and weaknesses and also the external factors the opportunities and strengths (Srdjevic, Bajcetic and Srdjevic, 2012).
The strengths are:
- During the inception the business was profitable
- Does maintain good standard in food as well as presentation
- They have expert staffs working in the restaurant
- The restaurant is placed at a convenient place and the charges are also nominal (SWOT analysis, 2008).
- Management is not up to the mark
- The number of staff being increased which adds pressure to the payroll
- Insufficient funds for opening the branch outlets
- No refurbishing was done over the years
- The restaurant is well established and well-known
- The market image of the restaurant is good
- New avenues & scopes
- Fresh management approach (Sawant, 2010)
- The opening of other restaurants in the shopping complex
- Failure of the new branch outlets
- Non-workability of the partnership plans
Analysis of the change
The initiatives and the business plan Blue Marina's new manager has formulated seem fruitful. A fact that more than one business center does pretty well, and does fill in the gap created by the other center (Bilek-Steindl, 2012). And looking at the present situation the restaurant is facing severe competition as well as their business is staying limited in just the ground floor of the shopping complex. Business tie-ups with other owners also might do well for the business as a whole. Sending the senior and experienced staffs to the new outlets also is a good move as it will help them have a better grasp of the situation and the authenticity of the restaurant’s name would also stay intact in those places. But the main matter of concern is the investment. To open two new outlets in different corners of the country and also refurbishing the old one does need a hefty amount. The inclusion of 60 more employees in the payroll would also increase the burden on the restaurant. The thinking of new technology and formulation of a bar is a smart move but these would only work when the customers would avail the restaurant's service (Begum and Pereira, 2013). An investment £1.5p million pounds is not a loose amount and if any step goes wrong then it might pull the curtains for the business as a whole.
Employee's reaction in this whole scenario
During the transitional phase, a small business owner should keep in mind the needs and the duties that they have towards their employees. One's who are successful as a manager do understand their employees well and do frequently stay in them in this critical phase of transition (Mangundjaya, Utoyo and Wulandari, 2015). The manager gains both positive as well as negative feedback from their employees and them a part of the change. The business which is going through a change must positive as well as firm during this process.
The first reaction which comes to any person's mind to change is fear. But especially in the job sector fear can lead the way to job satisfaction and security, pay cuts or demotion (Senior and Fleming, 2006). In times the impact is so severe that the employees start thinking that they won’t be able to survive the change and thus goes into a phase of mental and physical stress thus completely affecting his/her health.
An employee might become hostile during the change phase. The anger might be so severed due to the insecurity of losing his position which might lead to his/her quitting the job which he/she might be doing from a long time (Journal of Accounting & Organizational Change, 2007). The rage can lead to situations where the employee might start questioning the leadership of the company. If an employee is angry he/she might degrade the change which is taking place by the mere help of backstabbing and gossiping.
Not every single illustrative response to change are negative. Two or three workers may stay reasonable or even irrelevantly positive to change (Razinsky, 2016). On the off chance that a little business pioneer manages change plausibly, this get-together of operators may find the opportunity to will people in new frameworks or approaches, particularly in the event that they watch commitment from the association, get standard correspondence from affiliation pioneers and feel that they are a touch of the change system.
A couple of operators may warmly comprehend a pioneer's call for change, as this get-together may see open entryway for themselves or see the change as a trademark next step in the life of the connection. Others may understand that the change is essential for the alliance's survival. A little business pioneer should see and brace this kind of specialist. Furthermore, should assign a bit of the change affiliation tries to solid specialists since this social affair can help unequivocally impact undecided accomplices (Taylor, 2007).
Mostly these sort of projects mainly depends on the changes in the behavioral pattern, capacity, raising awareness, and training. The restaurant business is location oriented thus the response would vary from place to place. But to get the sure positive result from the project the coordination guidelines and the management strategies should be well structured and defined. The matter of utmost importance is that the financial resources are available during the commencement of the project so that the teams could cover the expenses needed to initiate the activities as well as cover their own expense. The management team as pre-determined must look for partners in the locality of the outlet which could boost the business as a whole. Well, known person of the outlets area should be present and participate in the opening ceremony.
A financial reporting procedure should be prepared and communicated to the team members having their role in the change. From the beginning, every team member must have it clear how the expenses would be reported and reimbursed. It is mandatory that this procedure should be kept as simple as possible just having the help of workshops, field visits, simple table, reporting cost, frequent meetings, interviews, etc. A strategy should be formulated to control the whole scenario. All the team member’s role and responsibilities should be pre-determined and clearly illustrated to them.
Correspondence stations should be kept open between the staffs and the management team, making utilization of cell telephones, SMS, E-mails, etc. It is basic to relinquish over-annoying the get-together with bureaucratic frameworks that nobody will take after like flyers, long reports, after quite a while E-mails, and so forth. Then again conceivably, month to month parties should be designed, joining the staffs to report, exchange experiences and get from each other's competent and falling level stories.
Recruiting the community members won’t just be cheap in terms of salary but their knowledge could be useful in understanding the taste of that particular neighborhood. The scope of work should have a guarantee and also quality. There should be a written agreement between the new staffs and the owners where the duties and scopes are well defined. Thus any later tussle can be avoided due to this. Whatever implementation plan be selected but it should be carried off under the supervision of the experts and the old staffs. The nature of supervision should be not air tight strict but it should see that all the pre-determined plans are well executed. The reputation of the restaurant hand in the balance as how the supervision is being carried on as lots depends on it for the future prospect of the Blue Marina. A practical implementation plan should be formulated by the implementation team to have the exact estimate of the time when the outlets would be ready to open for its customers.
Towards the end of undertaking execution phase, the estimated eventual outcome of the project takes shape: the firm empower, test, and commission last sub-parts. The precise inverse thing or affiliation is on an essential level amassed. By then, the firm claims the endeavor result coordinated preliminary affirmation. In a complete based relationship amongst customer and supplier, the announcement of preliminary authentication by the customer is routinely joined by a List of Open Points. This List of Open Points covers minor issues that are not yet completely persisting with the essentials or unassuming parts, and should be resolved in conclusion stage. Preliminary confirmation completes up attempt use stage.
It’s now up to the management team how they take care of the whole change and implementation phase. The Blue Mariana restaurant does have its own name and customer base and thus have a ample lot of opportunity which it can use to expand. The locations if chosen wisely and the staffs who would work in them than the restaurant can gear up some good opportunities beforehand. But it must also stay aware of the threats and the disadvantages it might face in this vast changing economy.
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