Business Plan for 7 Spice Restaurants

This report provides a detailed business plan for 7 Spice Restaurants, including SWOT analysis, evaluation of the external environment, Porter's five forces model, and segmentation, targeting, and positioning strategies. It discusses the strengths, weaknesses, opportunities, and threats of the restaurant, as well as the external factors that can impact its operations. The report also highlights the importance of segmentation, targeting, and positioning in attracting customers and achieving competitive advantage. The marketing mix of the restaurant, including product, price, place, and promotion, is also discussed.

Business plan

Table of Contents
INTRODUCTION ..........................................................................................................................1
SWOT analysis:..........................................................................................................................2
Evaluation of the external environment .....................................................................................4
Porter's five forces model:...........................................................................................................6
Segmentation, targeting and positioning.....................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business plan refers to to a formal documentation that consist the methods how to attain
goal and the time frame that is need to accomplishment of set goal. Every company make
business plan before implementing any strategies (Kanakulya and Jinzhao, 2017) . The present
report is based on 7 spice restaurants, headquartered in Birmingham, United Kingdom. The
present report includes discussion about SWOT, PESTLE, porters five forces models and STP
approach in order to analyse the internal and external factors which can affects the function and
operation of company.
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SWOT analysis:
It is a strategic framework that is used by an organisation for determining the strength,
weakness along with opportunity and threat related to the business or project planning. With the
help of this entities of business unit will able to make effective marketing strategies for the
accomplishment of organisational goal. This mainly focusses on analysing internal factors which
may affects the future performance of business unit. In context of 7-spices, an analysis of SWOT
is as follows:
Strength Weakness
 The biggest strength of 7-spices is that
this is well known and established
brand at marketplace across globally.
 They have 720 in a bottle of sauce
which allows one consumers to buy
that bottle, they can store that and can
use for longer period of time.
 They use natural ingredients for
manufacturing of Sauces that give then
strength to attract more peoples towards
their products.
 The shelf life of 7-spices is five years
this permits the goods to be widely
distributed with constant rotations.
 They have 85O firm throughout world
which has royal warrant, and permits
them to supply sauces to England
queen Elizabeth II
 The advertising in depended on word of
mouth promotion this is because there
budget is not appropriate to introduce
new product with the help of other
promotional activity.
 When they introduces new products of
hot and spicy products that limits those
who are willing to buy some new
products.
 They posses limited number of product
for the distribution which affects their
market shares (Koc and Bozdag, 2017).
Opportunity Threat
 7-spices possess opportunity to
expansed it business in other segments
or flavour of speciality sauces. They
Large growing market for hot sauces is the
biggest threat of 7-spices. Many other players
at marketplace are able to influence consumers

could use in a quick fix dinner. With
the help of reputation of market they
can be geared to those who likes hot
and spicy food. They have very large
number of recipes that is used in
sauces so fort this they can used
effective new marketing campaign.
 By expansing business in new items
company have opportunity to enhance
market shares.
more effectively with the help of
advertising.This firm have limited sales due to
limited consumer base. Salt from Avery island
can be depleted in future which acts as major
threat of 7-spice (Niu, Song and Xiao, 2017).
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Evaluation of the external environment
An external environment analysis is one of the objective assessment of the changing
analysis in which an enterprises operate on the basis of early warning system in identifying the
potential threats and the opportunities. The external environment factors helps in understanding
the business operations which can affect the activities and several choices (Matyjaszczyk and
Śmiechowska, 2019).
An entrepreneur must have an imperative symbol which suggest that the business
environment should confines the newly opened venture. It is quiet effective and important for
every businesses in identifying the opportunities and threats as well on the basis of encountering
the operations dilemmas (Owings and Picard, 2018). 7 Spices is one of the restaurant which
includes several type of starters, the main course and the desserts. Several items includes
premises of the newly opened venture, the effective main course and the desserts with a touch of
veganism. The items that have been covered includes fruits, vegetables and other ingredients.
There is a need to ensure the healthy lifestyle of the people. It must have ensure that 7 spices
should be able to cater the fresh vegetables and other fundamental and the necessary ingredients.
The needs and demands have cater the belongings of people who are living in London.
Therefore, it is quiet important for every manager and the entrepreneur to taken into
consideration the macro environment factors which have been carrying into this operations as
well. The purpose can be reflected out that, PEST analysis is one of the major process that have
been fundamentally reflected out the positive as well as negative factors that impacted the
venture and it have been useful in influences the entity at the market place. The PEST analysis
for 7 Spices is presented as underneath:-
Political Factors: It refers to such type of macro environment factor which includes
government intervention and the stability of the government in the nation. The political factors
simply initiated in the rules, regulations, the level of corruption, the policies taxation and many
others. Also, it is quiet important for an organisation to consider some strategies and diversified
alliances in an organisation.● Positive: It reflects some prosperous and effective political scenario of London which
gives the multi party system as well as the establishment since 1942. The 7 Spices
specifically capitalise the political regulations and ensuring the sustainability as well.
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● Negative: Brexit is one of the factor which gives a negative impact and the difficult
stability of United Kingdom. A negative impact of 7 Spices in the course of future gives a
negative impact towards the profits and sales.
Economic Factors: It refers to the economic development, the exchange rate currency
and many others. An entrepreneurial venture should consider the economy of the country on the
basis of setting some reflective boundaries (Skawinski and et. al., 2019). Positive: Opportunities for the 7 Spices are symbolizes as increasing of the infrastructure
facilities. The firm should have disruptive products on the basis of healthy lifestyle.
 Negative: the economic downturn is one of the negative impact towards the United
Kingdom. The customer base have been decline.
 Social Factors: It includes nation, their values, lifestyle and beliefs. Positive: Unhealthy and junk food items simply avoidable and serve the eating habits. It
would serve as an opportunity in the nature of food and beverages. 7 Spices would
provide vegan offerings to customers in this regard to cater to the needs and demands of
customers.
 Negative: A negative account of the 7 Spices impact the decline process in profits and
revenues.
Technological Factors: The technological advancement helps in improving the standard
of living (SHRIVASTAVA and et. al., 2019). Positive: The growth in operation of the territory and indicates functionality. It can be
analysed that the technological advancement indicates proper food production.
 Negative: Adopting some new and effective technologies which shows unbalanced rate of
inflation.
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Porter's five forces model:
It is framework that is undertake in order to monitor the competition prevailing within a
industry. Here some important elements are analysed on a continuous basis to prepare
appropriate strategies in order to sustain in market for a longer period of time (Niu, Song and
Xiao, 2017)This tool is consider while a firm is going to enter into a new market place. In this
regard, 7 spices use some crucial factors that are given as under:
Competition in the industry: There are several rival firms are present at market place that
affect the performance of company in an efficient manner. It is analysed that if there are more
number of competitors are present at market place then it is essential to provide goods and
services to consumers at lower price. For 7 spices, there is higher competition is faced by
company thus manager prepare appropriate strategies in order to maintain higher profit margin.
Threats of new entrants: It refers to the opportunities for new firms to enter into existing
market place. If there are entry barriers then it will be typical for new companies to enter into
market. In this, required investment, trust of customers and other factors are included that creates
barriers for new entities to serve existing consumers segment. It is analysed that, 7 spices has
already created trust in existing customers group and prefer by them thus it is not easy for new
firms to enter into market place.
Power of Suppliers: Suppliers are the crucial stakeholders of an entity as they provide
necessary resources, raw material to business owners to produce goods and services (Afzal,
Lawrey and Gope, 2019). If there is higher number of suppliers are present at market place then
it is possible for organization to make negotiate with them and get raw material at lower price.
In context of respective entity, it is monitored that there are lower number of vendors are present
at market place thus it need to purchase necessary resources at higher price.
Power of customers: It refers to the capacity of consumers to negotiate with business
owners in terms of price. Customers wish to get higher quality goods at lower price. If there are
several competitors are present in market then barraging power of customers will be high as they
can purchase necessary goods and services from rivalries. In case of 7 spices, bargaining power
of consumers is higher as there are several other restaurants are present in market who are
providing similar services to end users. Thus, customers are able to get higher quality services
on minimum possible price.
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Threats of substitute: It refers to the availability of identical products and services at
market place (Cui, Allan and Lin, 2019). It is analysed that higher number of substitute provides
several options to consumers to purchase quality goods and services at lower price. In context of
7 spices, it is monitored that there are higher number of substitute are present at market place
that is a threat for entity.
Segmentation, targeting and positioning.
Target marketing is tools and techniques which organisation effectively utilising by
company in order to targeting large numbers of customers (Bulatova, 2018). It is tools and
techniques which adapting by organisation in order to designed products and services which
helps to fulfilling the requirement and needs of customers. It includes numbers of functions
which helps to properly segmentation and targeting customers in order to generating profitability
and productivity of company.
Segmentation-: These is the first stage of segmentation which includes similar kinds of
needs and wants of customers due to considered as group of customers. On that basis developing
segmentation process. In relevance of 7 spice, it targeting ample numbers of customers which
categorised customer on the basis of geographical, demographic and behavioural. Organisation
using these strategy in order to gaining competitive advantages and enhancing productivity. It
involves categorised needs of customer and then accordingly providing products and services.
Targeting-: These is second strategy which most of organisation using this strategies in
order to customers segmented are targeted. Targeting is process which organisation targeting
specific group of customers in order to identifying the needs and wants of customer and
accordantly provide them which result as gaining competitive advantages. In context of 7spice, it
includes targeting that customers which like to take food as well as behaviour of customer.
Positioning-: These is the last element of STP process which considered as positioning
of their product and services in targeted market. It includes positioning in that way they are
developing brand image in the mind of customer and make strong relationship for longer period
of time. These is important strategy which most of organisation using these tool in order to
developing brand image at marketplace (Harrison, 2016). Manager of 7Spice using these tool in
order to developing distinct image in the mind of customers and fulfil the needs and wants of
customers which helps to achieving the satisfaction level. It involves they are huge amount of
investing on advertisement and promotional strategies ion order to attracting large numbers of
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customers. Therefore, it includes various segmentation, targeting and positioning strategy which
helps to beat the competition at marketplace and gain the opportunities which are present. These
is considered various element which helps to fulfil the needs and wants of customers as well as
organisation achieving goal and objective effectively.
Marketing-mix of company
Product-: Product is the element which refers to organisation offered various products
and services to customers in order to fulfil the needs and demands of customer. In relevance of
company, it including providing various food and beverages to customers on the basis of
customers taste and preferences.
Price-: Price refers to value which customers pay for products and service. It includes the
distribution and supply cost and providing various offers and discounts. In context of 7Spice, it
refers to providing luxury services to customers and seasonal discounts and offers.
Place-: It is importance factor because organisation taking decisions regarding place so it
includes products and services easily reached to customer and accordingly using effective
distribution network. In context of organisation, it involves providing online services to
customers so product and services reached to customer.
Promotion-: It is effective tools and techniques which refers to advertising, public
relations and various promotional strategy. In context of 7 Spice, it is using various promotional
activities such as social media and promotional strategy. There are ample numbers of method
such as what's app, Instagram, you-tube, Facebook and twitter all are effective tool in order to
attracting large numbers of customer.
CONCLUSION
From the above report it has been concluded that, business plan is essential to each and
every company because it is wider and broader scope. These process which includes various
factors and organisation essential to analysed in order to achieving organisation goal and
objective of company. On that basis organisation preparing future plan and cost estimation which
helps to smooth running business operation and gaining competitive advantages. It includes
analysed the external and internal environment so organisation using PESTEL and SWOT model
in order to improving performance of company along with organisation using five forces Porter's
model and identifying the needs and wants of customers so considered as Segmentation,
targeting and positioning process which impact on profitability and productivity of company.
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