Managing People And Organization: Environment Affecting Restaurant Essay

Question:

Discuss about the Managing People and Organization for Environment Affecting Restaurant.

Answer:

Forces in General Environment-Affecting Restaurant:

There are many forces in the general environment that influences the operation of the newly opened restaurant in Clementi. The main forces in the general environment that would affect the restaurant functioning are the competition prevailing in that particular area where the restaurant is being opened. The other forces are the social, cultural forces, demographic factors, government policies, technological forces and the natural forces of the environment.

Competition- Competition exist when the similar brand of the product are offered by the business. The opening of the new restaurant is affected by the presence of restaurant, which sells similar products and offers similar service. Therefore, it is important for the newly opened restaurant to monitor the activities of their competitors (Ha and Jang 2013).

Social and cultural forces- This force refers to the dynamic and structure of the group and the individual. The behavior, lifestyle pattern, friendly nature of the group affects the operations of the newly opened restaurant. The newly opened restaurant can expect higher purchasing power from the customers. The people are highly educated and is a place of trade and investment.

Technological forces- technological plays a very important role in the Clementi’s advancement. This increases connectivity and ease the communication. As a consequence of this, the time and cost of conducting the business is lowered and this would provide the restaurant to flourish. The widespread information technology infrastructure would provide the restaurant to explore and carry out its functions at ease (Weinzimmer and Nystrom 2015).

Government forces- The laws and the legal forces of the government affects the operations and the functioning of the restaurant. The restriction imposed by the government might be an obstacle in the development of the restaurant. The regulatory, business setting and certain legal supports are needed to support the need and growth of the new restaurant in Clementi. The government of Singapore has introduced some policies of e commerce to develop the e- commerce services. All this factors will have an impact on the functioning of the restaurant.

Demographic forces- The buying behavior and the preferences of the product are determined by traits depicted by the demographic. The demographic forces affects the menu trends of the restaurants. The diversity in the population of Clementi leads to a diverse set of the food preferences. With the changes in the taste and the preference pattern of the population, the restaurant needs to modify its operations (Martin and Siebert 2016).

Competitive Strategy Implemented by the Restaurant:

The competitive generic strategy is about the porter’s generic strategy

The porter’s generic strategies includes the cost leadership strategy, differentiation strategy, focus strategy. The positioning statements of the restaurant is discussed in later part.

Cost leadership strategy- The loyalty of the customers can discourage the potential entrants and therefore the pricing of newly opened restaurant in Clementi is positioned as generic and reasonable. The pricing is such that it is affordable by all the consumers of Clementi. The differentiating attributes is mainly related to the pricing, which would attract the customers.

Focus strategy- The strategy of the restaurant is to serve the target markets and the focus will be on quality factor. The strategy is to create strong brand identity in the local market of Clementi. The local store marketing is strategy of low budget plan that will make the customers aware about the facility and this is done by utilizing the local media. In store, marketing is another strategy and this would be the most effective and cheaper marketing strategy (Palmer 2012).

The restaurant will build their brand actively by selling the supporting materials such as promotional items. The customer base will be built over the first three years of operations.

Differentiation strategy- the restaurant needs to plan its activities of marketing, sales and customer service, which would incorporate the features of products and services. This will lead to increased sales and build consumer loyalty due to the differentiation factor. The sales strategy intends to increase the revenue by building the local customer base in the area where the restaurant is opened.

The restaurant will position itself by focusing on its marketing and increasing the awareness of the customers in the surrounding community of the Clementi. The marketing programs and all the tactics of the business are directed towards explaining the features of the restaurant and the description about the restaurant. The name of the products of the restaurant are geared toward the target market, which can be easily remembered by the customers. The price of the products of the restaurant will be fair enough for the customers and it will be competitive enough. The main marketing force will be the “word of mouth” and the restaurant is intended to keep the high standard when it comes to serving the customers (Snell et al. 2015). The restaurant will try to gain the competitive edge by its ambience, which would have friendly and enthusiastic staffs, and the packaging of the products will be quite innovative. The restaurant will position itself by blending the local and the international tastes.

Reference:

Ha, J. and Jang, S., 2013. Attributes, consequences, and consumer values: A means-end chain approach across restaurant segments. International Journal of Contemporary Hospitality Management, 25(3), pp.383-409.

Martin, G. and Siebert, S., 2016. Managing people and organizations in changing contexts. Routledge.

Palmer, A., 2012. Introduction to marketing: theory and practice. Oxford University Press.

Snell, S.A., Morris, S.S. and Bohlander, G.W., 2015. Managing human resources. Nelson Education.

Thomson, R. and Thomson, A., 2012. Managing people. Routledge.

Weinzimmer, L.G. and Nystrom, P.C., 2015. The search for opportunities by small business owners. Journal of Small Business Strategy, 7(3), pp.1-14.

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