Strategic Management Plan: Comparison To Supermarket And Grocery Essay


Describe about the Strategic Management Plan for Comparison to Supermarket and Grocery.


The restaurant industry has occupied a predominant place in various popular places of Australia. As per the business report of Australian Bureau of Statistics, the restaurant and cafe industry has earned $9,733.2m in the year 2003 and 2004 (, 2016). The environment of Australia is most suitable for running a hotel and restaurant business effectively. St Kilda is one of the popular places in Australia is surrounded with a large number of restaurant. In order to run a business organization successfully, the business experts should make an effective external environmental analysis based on which external factors influencing the process of business can be judged.

As per the data provided by Australia Bureau of Statistics, it has been observed that Total Taxation revenue collected in Australia increased $10073 to $435892 within 2013 to 2014 (, 2016). The external environment of Australia plays a major role for that. Environmental analysis includes political, economic, socio-cultural, technological and natural environmental factors that have a major impact on the success of a business. In comparison to the growth of supermarket and grocery industry, the business growth of cafe and restaurant is progressing rapidly.

Figure 1: Growth of cafe and restaurant industry in Australia in comparison to supermarket and grocery

Source: (Morgan, Katsikeas & Vorhies, 2012)

External Environmental Analysis:

  • Political:

Political factors include the movement and the influence of the political parties based on which a particular business organization has to suffer for running their organization successfully. People from different geographical areas of Australia can visit and use the service process of various restaurants of Australia due to a suitable political environment of St Kilda (Berthon et al., 2012). Therefore, people do not have to struggle immensely in order to in order to survive under the political environment of St.Kilda.

  • Economical:

Australia is undoubtedly a developed country. A large number of people of this particular country like to lead a sophisticated lifestyle due to their economic stability. Therefore, the product cost of restaurant industries of St.Kilda is affordable for both the low cost consumers and premium consumers. Therefore, medium cost customers as well as premium customers can afford the product and service of this restaurant.

  • Socio-cultural:

Being a developed country, most of the people of Australia are literate. Their cultural attitude always loves to maintain a dignity. Therefore, while planning business strategy and policy the customers have to be concerned on some of the major facts. St Kilda being a well-known place of Australia is possessed with the inhabitants of numerous cultures and backgrounds (Morgan, Katsikeas & Vorhies, 2012). Most of the people prefer contemporary foods in order to lead their day-to-day life. Therefore, the restaurants situated in St.Kilda are one of the most suitable options for the inhabitants of Australia.


The advancement of technology is intensely followed in most of the business organizations of Australia due to the high rate of literacy level. Most of the business organizations like to maintain ecommerce business along with the offline distributorship. This Restaurants of St.Kilda like to maintain online delivery process in order to satisfy the demands of customers from remote areas. The official website of various restaurants is full of data and information (Kim et al., 2012). Customers before using the service process of this particular center can acquire detailed knowledge about the reliability, quality and quantity of their products. In addition, Australian customers are well habituated with this kind of advanced technology. As a result, this organization has decided to implement IT management within their process of business for making the service process more systematic and effective.

  • Natural environmental:

Australia is winter-based country. Here, most of the people are very hard working and laborious. Winter being the key season of Australia, allows the restaurants to draw the attention of customers. Automatically, the metabolic rate of Australian is suitable for digesting the ingredients of spicy dishes. As a result, the business experts of restaurant industry have decided to launch a center in St Kilda so that people can easily avail the center for purchasing their products and services.

Figure 2: Environmental Analysis

(Source: Leonidou et al., 2013)

Current market activities:

The marketing executives primarily focus to use the popularity of media so that their product can easily reach the doorstep of target customers. As per the STP analysis, it has been evaluated that people of 15 to 30 age group are the primary target consumer of this restaurant. The products have been manufactured in such a way that middle class people do not have to struggle in order to use the service and product facility of this particular organization (Shih, Chen & Chen, 2013). Digital media has been used as one of the primary tools for making an effective business promotion. As a result, people of different geographical areas can easily gather an in-depth knowledge and experience regarding the service process of this particular organization.

Figure 3: Current Marketing activities of restaurant industries of Australia

Source: (Berthon et al., 2012)

Possible future opportunities:

As per the market activities and business expansion process, it has been observed that this particular organization has a big opportunity in order to expand their business in different countries. Spicy dishes are always acceptable for the young generation. Therefore, UK, New Zealand, US may be considered as the future opportunity for expanding the entire business of Australian restaurant industries. In addition, with the help of online media, the marketing managers can enhance their target market as well. A large number of people from different geographical boundaries are able to gather detailed information about the quality and reliability of the product of this food center (Mohaghar et al., 2012). As a result, the ranges of target customers are expanded automatically. The business employer of would be able to enter their business in the international market.


Competitor’s market strategy is one of the major threats for the success of business. The opening time of Australian restaurant is quite limited, due to which the reliable customers may have a chance to break their level of reliability. Competitors by opening their counter in daytime may draw the attention of existing customers. On the other hand, the dependence on digital media for promoting the business process of this restaurant can be a reason of threat for the organization. A large number of customers are highly dependent on electronic media. Digital media is primarily applicable for young generation. Therefore, this particular industry may have to face immense difficulties in order to draw the attention of television viewers. Therefore, electronic media can also be selected as the major tools of product promotion.

Reference List: (2016). "Australian Bureau Of Statistics, Australian Government". N.p., 2016. Web. 24 Aug. 2016.

Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons, 55(3), 261-271.

Kim, K. H., Jeon, B. J., Jung, H. S., Lu, W., & Jones, J. (2012). Effective employment brand equity through sustainable competitive advantage, marketing strategy, and corporate image. Journal of Business Research,65(11), 1612-1617.

Leonidou, L. C., Leonidou, C. N., Fotiadis, T. A., & Zeriti, A. (2013). Resources and capabilities as drivers of hotel environmental marketing strategy: Implications for competitive advantage and performance. Tourism Management, 35, 94-110.

Mohaghar, A., Fathi, M. R., Zarchi, M. K., & Omidian, A. (2012). A combined VIKOR-fuzzy AHP approach to marketing strategy selection. Business Management and Strategy, 3(1), 13.

Morgan, N. A., Katsikeas, C. S., & Vorhies, D. W. (2012). Export marketing strategy implementation, export marketing capabilities, and export venture performance. Journal of the Academy of Marketing Science, 40(2), 271-289.

Shih, B. Y., Chen, C. Y., & Chen, Z. S. (2013). An empirical study of an internet marketing strategy for search engine optimization. Human Factors and Ergonomics in Manufacturing & Service Industries, 23(6), 528-540.

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