Assignment on RestaurantThe restaurant is AL Buraimi Crown. The restaurant is notdoing well at the moment due to many problems. I have appointed by the owner toimprove the situations at the restaurant.
The improvements need to be carriedout at the restaurant as per the action plan based on the SWOT analysis andPorter’s five competitive forces analysis.SWOT Analysis is defined as the analysis which helps tounderstand 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 SWOTanalysis for the restaurant is as below:Strength:· Very goodlocation in the city· A fivestar hotel is being built next to the restaurant · There isa mall being built next the restaurant· Plenty ofgreen land around the restaurant (Owned by restaurant)Weakness:· Yourcurrent customers complaint that is always difficult to find a taxi by therestaurant.
· Inadequatecar park· Most ofstaff members do not speak English.Threat:· Theweather will be particularly bad during the coming two years.· Majorroad work in front of restaurant is underway and will last for at least 6months.Opportunities:· Therestaurant building is very old· OldFurniture· BadVentilationSo based on this SWOT analysis and a report on therestaurant, I need to convince the bank Muscat for borrowing the fund forinvestment in the restaurant.
This fund will be helpful in completing theimprovement actions at the restaurant. The past record of the restaurant,location of the restaurant, improvement plan for the restaurant will be helpfulin convincing the Muscat bank professionals for borrowing the fund from the bank.Porter’s five force analysis is basically to help and understand thecompetition in the market for the restaurant business. Thus it helps tounderstand the external competitive environment in the market for therestaurant business. Following are the Porter’s five forces as below· Force 1: Threat of New Entrant – The restaurant business may be affected by entry ofnew competitor in the market, as it may capture some of their customers. Thiscompetitive force will have high threat, as it will reduce the customersslowly and will gradually reduce the sale for the restaurant business. Thus itwill have direct impact on the profit for the restaurant.· Force 2: Threat of Substitutes – The restaurant business may be affected by substitutebusiness, as it will explore other option for the customers instead ofrestaurant business.
This competitive force will have high threat, as itwill reduce the customers speedily and will reduce the sale for the restaurantbusiness. 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 therestaurant by lowering the sales price and impacting profit and survival of therestaurant business.
This competitive force will have moderate threat,as to some extent it will reduce the profit for the restaurant business, ascustomer bargaining will reduce the sales price.· Force 4: Supplier’s bargaining power – The bargaining power of supplier may affect therestaurant by increasing the cost to restaurant and resulting in lower profitfor the restaurant. This competitive force will have moderate threat, asit the bargaining of supplier for cost increase will results in increase ofcost to restaurant thus decrease in profit of the restaurant. The restaurantmay find alternate supplier upon major bargaining from any particular supplier.· Force 5:Industry Rivalry – The industryrivalry force may have significant effect on the restaurant business.
Thecompetitive force will have low threat to the restaurant business, as itwill not have significantly high impact to the restaurant business. SWOT analysis is carried out and mentioned above.Dealing with Weaknesses: The mentionedweaknesses for the restaurant are as below:1. Your current customers complaint that is alwaysdifficult to find a taxi by the restaurant. – Solution : As a manager of the restaurant, Ineed to establish a taxi hire process such that the customer can get the taxiin a reasonable time period.2.
Inadequate car park – Solution: As a manager of the restaurant, Ineed to modify the car parking space in such a way that customer can park theircar easily and comfortably.3. Most of staff members do not speak English – Solution: As a manager of the restaurant, Ineed to plan for training and development of the staff on English speaking, sothat customers are happy in dealing with the staff at the restaurant.Improvements/ Strategies for the Restaurant: Following are the potential improvements forrestaurant business are as below:-1. Improve the infrastructure at the restaurant interms of improving the building, its ventilation and furniture at therestaurant. So that customer feels thatthey are at great place for their food/outings.2.
Improve the English of the staff member so thatthe customers are comfortable in dealing at the restaurant.3. Improve the parking side at the restaurant sothat customers are comfortable in parking their cars, which is the firstimpression of the restaurant.4. Develop the action plan for dealing with thebad weather as it going to last for a period of two years.5.
Develop the alternate feasible passage for thecustomers, 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.