Assignment on Restaurant
The restaurant is AL Buraimi Crown. The restaurant is not
doing well at the moment due to many problems. I have appointed by the owner to
improve the situations at the restaurant. The improvements need to be carried
out at the restaurant as per the action plan based on the SWOT analysis and
Porter’s five competitive forces analysis.
SWOT Analysis is defined as the analysis which helps to
understand the strength, weakness, opportunities and threat for the business.
So the SWOT analysis at this case is to find the strength, weakness,
opportunities and threats for the AL Buraimi Crown Restaurant. The SWOT
analysis for the restaurant is as below:
location in the city
star hotel is being built next to the restaurant
a mall being built next the restaurant
green land around the restaurant (Owned by restaurant)
current customers complaint that is always difficult to find a taxi by the
staff members do not speak English.
weather will be particularly bad during the coming two years.
road work in front of restaurant is underway and will last for at least 6
restaurant building is very old
So based on this SWOT analysis and a report on the
restaurant, I need to convince the bank Muscat for borrowing the fund for
investment in the restaurant. This fund will be helpful in completing the
improvement actions at the restaurant. The past record of the restaurant,
location of the restaurant, improvement plan for the restaurant will be helpful
in convincing the Muscat bank professionals for borrowing the fund from the bank.
Porter’s five force analysis is basically to help and understand the
competition in the market for the restaurant business. Thus it helps to
understand the external competitive environment in the market for the
restaurant business. Following are the Porter’s five forces as below
· Force 1: Threat of New Entrant – The restaurant business may be affected by entry of
new competitor in the market, as it may capture some of their customers. This
competitive force will have high threat, as it will reduce the customers
slowly and will gradually reduce the sale for the restaurant business. Thus it
will have direct impact on the profit for the restaurant.
· Force 2: Threat of Substitutes – The restaurant business may be affected by substitute
business, as it will explore other option for the customers instead of
restaurant business. This competitive force will have high threat, as it
will reduce the customers speedily and will reduce the sale for the restaurant
business. Thus it will have speedy impact on the profit for the restaurant.
· Force 3: Customer’s bargaining Power – The bargaining power of customer may affect the
restaurant by lowering the sales price and impacting profit and survival of the
restaurant business. This competitive force will have moderate threat,
as to some extent it will reduce the profit for the restaurant business, as
customer bargaining will reduce the sales price.
· Force 4: Supplier’s bargaining power – The bargaining power of supplier may affect the
restaurant by increasing the cost to restaurant and resulting in lower profit
for the restaurant. This competitive force will have moderate threat, as
it the bargaining of supplier for cost increase will results in increase of
cost to restaurant thus decrease in profit of the restaurant. The restaurant
may find alternate supplier upon major bargaining from any particular supplier.
Industry Rivalry – The industry
rivalry force may have significant effect on the restaurant business. The
competitive force will have low threat to the restaurant business, as it
will not have significantly high impact to the restaurant business.
SWOT analysis is carried out and mentioned above.
Dealing with Weaknesses:
weaknesses for the restaurant are as below:
1. Your current customers complaint that is always
difficult to find a taxi by the restaurant. – Solution : As a manager of the restaurant, I
need to establish a taxi hire process such that the customer can get the taxi
in a reasonable time period.
2. Inadequate car park – Solution: As a manager of the restaurant, I
need to modify the car parking space in such a way that customer can park their
car easily and comfortably.
3. Most of staff members do not speak English – Solution: As a manager of the restaurant, I
need to plan for training and development of the staff on English speaking, so
that customers are happy in dealing with the staff at the restaurant.
Improvements/ Strategies for the Restaurant: Following are the potential improvements for
restaurant business are as below:-
1. Improve the infrastructure at the restaurant in
terms of improving the building, its ventilation and furniture at the
restaurant. So that customer feels that
they are at great place for their food/outings.
2. Improve the English of the staff member so that
the customers are comfortable in dealing at the restaurant.
3. Improve the parking side at the restaurant so
that customers are comfortable in parking their cars, which is the first
impression of the restaurant.
4. Develop the action plan for dealing with the
bad weather as it going to last for a period of two years.
5. Develop the alternate feasible passage for the
customers, as the road is underway and it will last for a period of six months,
so that the customer impact due to road construction can be minimized.