Research Paper on "Strategic Plan for Small Restaurant"

Research Paper 16 pages (4866 words) Sources: 15 Style: APA

[EXCERPT] . . . .

Strategic Plan for Small Resturant

Restaurant Strategic Plan

The following pages focus on proving a strategic plan for The Great Italian Food Company. The paper starts with the presentation of the company's mission and vision. This explanation is intended to introduce readers in the environment of this company. The values of the company are also presented. It is important to identify these values in order to determine the strategic options that the company should address.

The paper continues with the Environmental Analysis. This section describes the microenvironment and the macro environment, with the most important components. The internal and external environments are also address. In this case the most important components of the company's environment are represented by the economic, social, and technological environment, but also the company's customers, employees, managers, suppliers, owners, the government, and the community. These factors, their importance and characteristics are also addressed.

The SWOT Analysis is another important section of the strategic plan. Its importance relies on the identification and discussion of the company's strengths, weaknesses, but also of the opportunities and threats that the company must take into consideration. The Five Forces Analysis helps understand the industry in which this company develops its activity. Therefore, readers can learn about the competition, power of buyers, power of suppliers, threat of substitutes, and market entry barriers in the restaurant industry.

The paper continues with the Strategic Direction section. In this case, readers are presented the strategy that the company intends to develop. This section also discusses the company's product, pricing, distribution, and promotional strategies.In addition to this, the Goals and Objectives section describes the objectives that the strategy must reach. The Strategic Action plan is also presented in order to discuss the activities required by the strategic plan. The Recommendations section discusses certain issues that the company must address in developing its strategy.

Company Mission and Vision

The mission of The Great Italian Food Company is to provide high quality, Italian cuisine at affordable prices. The restaurant's employees are interested in providing their customers a dining experience that meets their expectations, and that determines them to become loyal customers. The company is also interested in developing a workplace environment that appreciates employees and increases their motivation. Therefore, the company's strategy is oriented towards improving customer and employee satisfaction.

Company Values

The values that The Great Italian Food Company promotes are represented by: integrity, providing high quality products and services, and corporate social responsibility. The company's managers have understood that in order to develop a successful business it is necessary to focus on integrity in relationships with customers, employees, and business partners. This helps the company to develop strong relationships with its business partners. In addition to this, it is important to invest in reaching high quality standards. This is intended to create competitive advantage. The Great Italian Food Company is also interested in involving in corporate social responsibility activities.

Environmental Analysis

Economic environment

In order to develop a successful strategic plan, it is important to take into consideration the economic environment that is able to significantly influence the activity of the company. In this case, the U.S. economy is dealing with numerous factors determined by the crisis. This situation has reduced the incomes of some of the customers of The Great Italian Food Company. This means the company must modify its strategy in accordance with these factors.

The economic environment also modifies the company's relationships with its suppliers (FAO, 2010). This is because the prices of raw materials that the company requires have increased, determining increased investments in supply purchases. In this case, the company must better allocate its resources. Therefore, the economic environment determines the level of investments of The Great Italian Food Company. This environment also influences the activity of the company's business partners.

When establishing the pricing strategy it is recommended to take into consideration the purchasing power of the customers targeted by the company. If the company's price level is higher than what its customers can afford, its sales are likely to reduce. Therefore, it is important to develop the product range and their prices in accordance with customers' incomes.

Social environment

The U.S. In one of the most developed country in the world, from an economic and social point-of-view. The most important factor that the company must address when analyzing the social environment is represented by the multicultural issues that affect it. The ethnic groups in the U.S. are represented by: white -- 79.96%, black -- 12.85%, Asian -- 4.43%, Amerindian and Alaska native -- 0.97%, native Hawaiian and other Pacific islander -- 0.18%, Hispanic -- 15.1%, other races -- 1.61%.

Technological environment

The company's ability of investing in technological developments allows The Great Italian Food Company to create competitive advantage. The technological environment in the U.S. is highly developed. This means that companies can use important innovations in different business sectors.

Suppliers

The company's suppliers represent an important component of the company's environment. This is because the success of The Great Italian Food Company also relies on the products purchased from suppliers. The company focuses on providing high quality products which require important quantities purchased from several suppliers. Therefore, it is important to develop a strong relationship with these business partners.

In order to reach this objective, the company must diversify its supplier base. This refers to the types of suppliers addressed by The Great Italian Food Company. The company must address small suppliers that can provide reduced prices for their products, but also large suppliers that have the production capacity required by the company. The Great Italian Food Company must select its suppliers based on several criteria. The company must take into consideration the price range of the suppliers, their location, and their production capacity. In addition to this, it is recommended to use a higher number of smaller suppliers instead of a smaller number of large suppliers. This strategy is intended to reduce the risks of not receiving the ordered products in case certain suppliers cannot deliver them.

Customers

The company's strategy is focused on the needs and requirements of customers. This is because The Great Italian Food Company understands the necessity of improving customer satisfaction. In addition to this, the company modifies its strategy based on the needs expressed by its customers, which can be attributed to environmental influences.

Employees

The company's human resources are an important factor that determines its success. Therefore, it is important to develop a strategy focused on improving the performance of employees. In addition to this, The Great Italian Food Company is interested in developing a motivational strategy based on the requirements of employees and on the resources of the company that can satisfy these requirements.

There are also other components of the company's environment. These refer to managers, owners, the government, society, and the community. The Great Italian Food Company takes these factors into consideration when developing its strategy. This activity is intended to reduce the risks associated with the influence of these factors.

SWOT Analysis

Strengths

The company's strengths are represented by its abilities and resources. The company must increase the effects that these strengths can have on the business. Therefore, it is important to focus on these strengths.

Tradition on the market -- this is an important advantage that the company can use when developing its strategy. This is because notoriety and tradition are important factors that can determine the number of customers that the company can attract. Most customers usually orient towards successful companies that are well-known on their markets. This is because this ensures customers that the company provides high quality products and services that are appreciated by other customers also.

High quality products -- in this business sector it is important to try to reach high quality standards. This ensures that the company has the ability of investing in activities and processes intended to help provide high quality products. This category of products determines customers to think more on their quality instead of their price. Therefore, these customers might pay higher prices for high quality products.

Medium prices -- the company understands the incomes limitations of its targeted customer segments. Therefore, The Great Italian Food Company is interested in increasing its profits by increasing its number of customers, and not by increasing its prices. However, the company's price range must reflect the efforts made by the company in purchasing, producing, and commercializing the products it offers. Therefore, it is recommended to improve negotiations with suppliers in order to benefit from smaller costs that can be used in reducing the prices practiced by The Great Italian Food Company.

Weaknesses

Relationship with suppliers -- this is one of the factors that significantly influence the company's activity and that the company must improve. The problem in this case is that the company must expand its supplier base. The Great Italian Food Company is in business with a small number of suppliers. The company has experienced situations when some of these suppliers were unable to deliver the products ordered by… READ MORE

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