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Burns (2015) cites a study indicating that restaurant owners typically make 80% of their profits from 20% of regular clients. It is not enough to have a stylish interior and delicious food to retain regular visitors and attract new ones in such a competitive environment. This means that, in this case, and in the current age of digitalization in the restaurant business, ICT plays an important role in creating interesting marketing strategies and automating business processes, which contribute to the high quality of the restaurant's user experience that consistently attracts customers.

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Table of Contents
EXECUTIVE SUMMARY.................................................................................................................................................................. 2
INTRODUCTION............................................................................................................................................................................. 2
INDUSTRY ANALYSIS..................................................................................................................................................................... 3
THREAT OF NEW ENTRANTS..................................................................................................................................................................3
BARGAINING POWER OF SUPPLIERS...................................................................................................................................................3
BARGAINING POWER OF THE BUYERS...............................................................................................................................................4
RIVALRY AMONG COMPETITORS........................................................................................................................................................4
THREATS OF SUBSTITUTES.................................................................................................................................................................5
CONCLUSION OF PORTER'S FIVE FORCES........................................................................................................................................5
PORTER’S VALUE CHAIN ANALYSIS................................................................................................................................................ 6
PRIMARY ACTIVITIES.......................................................................................................................................................................... 7
Inbound logistics.............................................................................................................................................................................7
Operations........................................................................................................................................................................................7
External logistics.............................................................................................................................................................................7
Marketing and Sales.......................................................................................................................................................................8
Services............................................................................................................................................................................................8
SUPPORT ACTIVITIES..........................................................................................................................................................................8
Human Capital Management........................................................................................................................................................9
Infrastructure....................................................................................................................................................................................9
Technology.......................................................................................................................................................................................9
Procurement..................................................................................................................................................................................10
NEW BIS DEVELOPMENT.............................................................................................................................................................. 10
NEW INDUSTRIAL AND INTERNAL BUSINESS ENVIRONMENT ANALYSIS........................................................................................13
CHANGE IN PORTER'S VALUE CHAIN...............................................................................................................................................13
CHANGE IN PORTER'S FIVE FORCES...............................................................................................................................................13
REFERENCE LIST........................................................................................................................................................................... 14
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Executive summary
This report is devoted to how the implementation of ICT is reengineering business processes along
with the improvement of the company's competitiveness. Also it is worth noting that in the first place
an analysis of the industry was carried out, namely Porter's 5 forces in the restaurant industry,
because the subject of the analysis is the Burger Embasia company. From the analysis it was found
out that the main threats to the company are Existing Competitors, Buyers and New Entrants.
Porter's value chain analysis identifies both primary and supportive activities of a company that affect
its operations and income. This includes inbound logistics, operations, outbound logistics, marketing,
sales and service, while the support team includes firm infrastructure, human resources, technology
development, and procurement. After conducting the above 2 analyzes, it was decided to implement
a mobile food delivery application with unique features such as the ability to track the courier on the
map. This, in turn, will have a positive impact on the company's activities, namely, it will affect , cost
reduction, increase competitiveness through differentiation and tie customers to the company. Thus,
the threats that have been identified will become insignificant with the introduction of ICT. It will also
enable the organization to focus on the quality of services that were pointed out in the value chain's
primary activities, as well as to speed up internal operations.
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Introduction
According to Burns (2015), restaurant owners know that only 20% of regular customers are able to
provide them with 80% of the profits. And in order to retain regular visitors and attract new ones in the
conditions of fierce competition, a stylish interior and high-quality delicious food are no longer
enough. Therefore, in this case and in the current age of digitalization of ICT in the restaurant
business, they help in developing interesting marketing steps, automating business processes, which
in turn increases the quality of the user experience for which customers want to come to a particular
restaurant. For the current CW Burger Embassy was chosen.This is a fast food restaurant
specializing mainly in burgers. It is also worth noting that there are 2 branches of this institution in
Tashkent.
Industry analysis
Threat of new entrants
It is not easy to start a fast food restaurant since various variables must be considered. A fast food
restaurant, like any other business, takes a large amount of capital to find a good location, lease the
property, purchase kitchen and dining equipment, hire and educate people, comply with certain rules
and regulations, and maintain a network of suppliers Manalese and Suresh(2015). Despite the fact
that entering the fast food market is not straightforward, this has turned out to be a beneficial
influence for current firms because additional competitors are less likely to appear.
Bargaining power of suppliers
In order for a fast food restaurant to be successful, it must have the proper culinary equipment, dining
furniture, decor, merchandise, and, of course, decent food . Because of the fierce competition among
suppliers, this could reduce their bargaining power with the fast food business. The company can
then choose from a variety of sources for raw materials or any other requirements needed to start the
business. The following are some of the most common suppliers required by the fast food industry:
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 Kitchen utensils and equipment
 Interior Designing/Furniture
 Suppliers of meat and vegetables
 Suppliers of Dry Goods
Bargaining Power of the Buyers
According to a survey conducted by Kara, Kaynak,and Kucukemiroglu(2015), fast food outlets are the
most popular meal option for Americans. Taking into account Uzbekistan it is worth taking into
account the opinion of Ten(2020) Street food in Uzbekistan is very common. It is clear that many
consumers rely on fast food for quick meals. Despite this, customers consume a considerable
amount of fast food goods, owing to the enormous number of fast food businesses available. As a
result of this fact, we might conclude that purchasers have a lot of bargaining power. Working
persons with sufficient income are more likely to have a wider range of choices. Furthermore, self-
prepared food takes time because it involves additional activities such as shopping for goods and
cooking. Consumers who are always on the go will find the time limit unappealing.
Rivalry among Competitors
Because there are so many current fast food chains not only in Uzbekistan but also in most other
nations, competition among existing rivals is fierce. Street77, EVOS, KFC, Les Ailes, MasterFood,
and others are among the current rivals on the market. As a result, most firms reduce their prices
and/or provide various discounts and promotions to their customers. It's practically a race to see how
low they can go with their prices (Manalese and Suresh,2015). It is also worth noting that consumers
have become more health conscious, which is another element to consider which is confirmed
by(Hwang and Cranage,2010). Even though fast food is often unhealthy, certain products claim to be
healthier since they are less greasy, salty, and so on. Consumers who are health-conscious may find
these commercials appealing. Consequently, with the correct product promotion and a well-thought-
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out advertising plan, you may stand out from the competition and attract a wider consumer base. As
a result, fast food firms must use a variety of current ICT systems in order to compete effectively in
the market.
Threats of substitutes
Because it is only one of several possibilities for someone who wants to eat, the risk of substitution
when getting meals from a fast food establishment is extremely significant.
 Restaurants / Gourmet Food - When people are hungry, on a budget, and in a hurry, they go
to a fast food chain. However, if they have some extra income and are not time-conscious,
eating well-prepared restaurant foods could still be an enjoyable experience. Skipping fast
food meals could also mean avoiding processed meats, resulting in a healthier diet
(Fuhrman,2018).
 Home-cooked meals- While it may take more time, eating home-cooked meals is generally
preferable to eating a burger and fries. Even if consumers do not have a time limitation, they
will find that cooking their own meal at home is less expensive. If they are health-conscious,
they can also be confident in the safety and nutrition of their diet (Hwang and Cranage,2010).
 Groceries — Frozen pizzas, dumplings, patties, pasta, and other fast food items can be found
at a neighboring grocery shop, which can be used as an alternative for fast food.
Conclusion of Porter's Five Forces
Rivalry among
Existing
Competitors
HIGH (-)
Bargaining
Power of
Suppliers
LOW (+)
Bargaining
Power of
Buyers HIGH
(-)
Threats of
Substitutes
HIGH (-)
Threats of
New
Entrants
LOW (+)
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The fast-food industry has a high level of competitiveness and a low level of attraction, according to
Porter's Five Forces research. There are two benefits compared to three drawbacks. Advantages
include a minimal threat of new entrants and low supplier bargaining power. As a result, unless a
fast-food restaurant is able to offer distinctive items and establish a reputation for service and
hygiene It will soon go out of business.
From the above analysis, it can be concluded that, first of all, the company should adhere to the
strategy of cost reduction and differentiation strategy with the help of IT.
Porter’s Value Chain Analysis
One of the tools of the theory is Michael Porter's value chain, which allows for a deeper
understanding of intra-firm processes. An organization creates a set of values for its customers. And
customers must actually need that value and be willing to pay for it.
Porter’s value chain consists of Primary Activities including: Internal logistics- Stock control (reception
and storage) and distribution of initial components, Operations - Transformation of initial components
to final product, External logistics - Distribution and storage of final product, Marketing and sales -
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Advertising Service Installation and after-sales service. Supporting activities include: Logistics -
Procurement of necessary raw materials and materials, Technology development Process, product
and resource development, Human resource management- Selection and training of personnel,
motivation and rewards, Management of Infrastructure of the organization, planning, financing, etc
(Al-Shammari and Al-Faqir, 2017).
Primary Activities
Inbound logistics
For burger embassies the consumables as vegetables, drinks, burger bread and packaging are the
parts of incoming logistics. In order to operate on the market and provide high quality products.
Inbound logistics of Burger Embassy includes the accepting consumables, warehousing and
scheduling new consumables encountering and supply as well as direct work with suppliers (Skilton,
2014). Burger Embassy is thriving for the provision of the best services and products for its clients
and therefore all the standards of warehousing and cooperation with suppliers are taken to the center
of the business. If for instance there are products with an upcoming expiration date they should be
used first. For such a company working in the food industry, the quality of products used are very
important.
Operations
For the operations of fast food cafes the main are indicated as the activities that allows the company
to transform the incoming products and packaging into final products. This includes not only the
preparation of the meals but also the delivery of food to clients, maintenance of all kitchen and office
machinery, quality assurance of products made etc. The maintenance of rooms and keeping the
cafes clean with a friendly atmosphere, distribution of food with branding packaging and cooperation
with machinery suppliers for repair all are the operations of a fast food cafe.
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External logistics
These primary activities are mainly focused on the delivery of produced food to the customer. The
company is currently operating with delivery services as Express 24, Stolik and getfood. However,
the company also does provide delivery via internal service as telegram bots or when the service is
not overcrowded with orders. Fast delivery is one of the main points of external logistics as this as
well as quality of food directly shows to the client how the company cares for them. Burger embassy
provides a fast delivery within 45-60 minutes via internal delivery system.
Marketing and Sales
For the marketing and sales the company is mainly focused on the internet space to promote new
discounts or actions (Skilton, 2014). The company has been operating on the market for more than 4
years and the social networks such as facebook or instagram are the main channels of
communication with customers. According to the research on marketing success rate the social
networks media marketing is the most powerful channel of communication for today’s world. In 2021
the company also announced its presence in TikTok platform where videos with food become viral
very fast. The communication in social networking sites is done over personal messages as well as
comments under the media posts of the company.
Services
This group of activities includes keeping the customer’s awareness about the brand at a high level.
For food companies the main service is selling food. However, through the same social networks the
company is trying to educate the customers through storytelling, inform how to use the delivery
services etc.
Support Activities
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Human Capital Management
The group of actions on human resource management includes activities on the selection, selection,
training, development and motivation of all employees of the organization. Issues related to human
resources arise throughout the chain, so some actions apply to all elements of the chain. For Burger
Embassy human resources activities focused on keeping employees updated with the services
available, regular training on the customer service, negotiations on salary and other payments and
activities related to the motivation of employees as team buildings or outdoor trips.
Infrastructure
Infrastructure includes general management, planning, finance, accounting, quality management,
legal issues, and interaction with government agencies. Unlike most ancillary activities, infrastructure
is present throughout the entire chain and does not belong to any of the stages. Despite its reputation
as a cost center, infrastructure can also be a source of competitive advantage, as the smooth
functioning of all company systems leads to lower material and transactional costs and can
differentiate a company from its competitors. A proper company’s business infrastructure is a key
point in succeeding over the competitors. For the Burger Embassy the organizational structure
includes the main office where all the administrative divisions are working and the food cafes where
clients can purchase burgers, salads and drinks. The infrastructure includes the point that all the
branches closely cooperate with head office for procurement, equipment update, new staff hiring etc.
Technology
The process of technology development includes a large number of activities, which can be divided
into two groups: product improvement actions or supporting processes. Product-related activities are
usually carried out along the entire chain, while process-related activities refer to one or more
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processes. Current technological equipment and information system of Burger Embassy is mainly
manually working where employees have to manually type or perform operation. This may be the
weak point of the value chain as an automated technology system is one of the key points for
provision of faster services.
Procurement
Procurement, unlike inbound logistics, is related to the process of acquiring material resources, not
directly to the resources themselves (Cox, 1999). Resources include all material values necessary for
the functioning of the enterprise, including equipment, real estate, office supplies and other
resources. For the building of cafes the company is renting rooms at locations with a high number of
people passing by every day. Equipment is another part of important assets for the company. It is not
directly affecting the operations, however with machinery working in a wrong way food taste may
differ and this may lead to decreasing amount of revenue.
New BIS Development
Nowadays, information technologies rule the world of business. Every operation starting from
finances and banking, office admin work till farming and agriculture all relies on technology (Lindgren
and Bandsholm, 2016). Cafes and fast food restaurants are also a part of the world’s chain of
technology users. In restaurants the ordering system is usually presented by the internal web
application with integrated point of sales system to track payments for each order. According to
statistics, people spend most of their free time with their phones scrolling through web or social
networks. The New Business Information System to be implemented within Burger Embassy’s
current IS is the mobile application with menu and delivery options. With a mobile application a
prospective customer will have an opportunity to make an order at any time, take the delivery and
indicate address as well as perform payment via mobile banking. It's convenient for the client to give
his address and card details once, and then, when making his next orders, simply choose the dishes.
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And for the delivery service it's a great opportunity to tie customers to themselves, increase the
average bill and the number of requests by offering personal discounts and special offers for users of
the app. Creating a mobile app for cafes and restaurants is a great way to "tie" a client to the place
through a bonus program and increase profit through meal delivery. Burger Embassy can also speed
up the work of the establishment by pre-ordering through the app and attract new clients.
For the main reasons of this BIS to be implemented the following are presented:
Better value for clients.
The essence of business is mutual exchange. Companies offer a product, the market opens purses
with your demand. Restaurants and their employees are constantly looking for ways to encourage
maximum opening of customers' wallets. There is no doubt that every company wants to increase
customer interaction with business to increase sales, and also want to provide a high level of value to
customers that they can't get anywhere else.
One way to do this is to create a loyalty program in a mobile app.The key feature is that the more
often customers interact with your business and product, the more points they get, which in turn can
be used to get discounts or buy any other products from Burger Embassy.
INCREASING THE EFFICIENCY OF INTERACTION WITH CUSTOMERS
Customer service is not just about a smiling manager communicating with customers. With 2.6 billion
people in the world now using advanced mobile devices, the really advanced players in customer
service are mobile apps (How Many People Have Smartphones Worldwide (Jun 2021), 2021).
First, a mobile app is not a person subject to mood swings and poor performance. So by having a
mobile presence, you'll always know that you're presenting the same face to the customer, an
interface specifically designed to give them a better experience exploring and deciding whether or not
they want to buy the product.
In fact, the vast majority of marketers view their apps as a means to improve the customer
experience. In a mobile app, the business is always available to customers. If a person first hears
about your company in the middle of the night and wants information as soon as possible, all he has
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to do is turn on his device and download your app. Later, when it occurs to him that he wants to buy
the company's product, he can do so immediately, without waiting until the start of the work day.
So if customer service is a priority, mobile apps are the key to improving customer satisfaction.
INCREASING SALES AND REVENUE
When customer satisfaction goes up, sales usually go up, too. According to SalesForce (How
Customer Experience Is Rewriting the Rules of Business Success - Salesforce Blog, 2021) 70% of
the customer experience depends on how customers feel treated. The more interested and satisfied
customers become because of product and business as a whole, the more customer demand will
grow. This was a case with Domino's Pizza when it developed a mobile pizza ordering app, their
online sales growth showed 28% in six months in the UK alone. In fact, 52% of their orders now
come from mobile devices.
BUSINESS EXPANSION
The implementation of new mobile applications can lead to new business opportunities for the
company. As soon as the quality of services is provided on high levels with adequate prices the
number of clients will rise and therefore new opportunities will appear on the horizon. When Yandex
first launched the Taxi application in Russia the company noticed that the number of clients ordering
delivery of packages from restaurants was increasing on a monthly basis (Pesterev, 2017). The
company then launched a new division of its business - Yandex Food, a department focused on food
delivery only.
Meals delivery mobile applications are one of the major technologies used in today’s world.
Expanding business opportunities, increasing sales and revenue as well as higher value of business
to clients these are the main advantages that the launch of mobile application will provide Burger
Embassy with.
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New industrial and internal business environment analysis
Change in Porter's Value Chain
As soon as the new Business Information System will be implemented it will directly and indirectly
affect the whole value chain of the company. The main divisions of activities that will be affected by
the implementation of mobile delivery applications are the outbound logistics as well as operations
and services. The implementation of a mobile delivery application with a loyalty program will allow the
company to reach wider regions for delivery. Currently when a customer is ordering food to
house/flat/office the delivery is asking for a location reference point well known in the district. With an
implementation of mobile application the tracking of location to deliver packages will be easier and
therefore the delivery can be sent earlier to the client. This will lead to decreasing time of operations
because the selling of food will be instant and the company can manage payments through the
mobile application. According to (Frith and Özkul, 2019) mobile application payment inspires people
to buy services or products as it is more convenient for payments compared to traditional cards and
cash. The services of the company will be also developed better due to the fact that the company
now can focus not only on serving food at restaurants but also work for delivery. The COVID-19
situation showed that with mobile applications more clients are ordering food delivery to houses or
offices. For the supporting activities mobile application will indirectly affect the marketing because
newer actions and discounts for delivery may be promoted over the media channels.
Change in Porter's Five Forces
As it was previously said, Burger Embassy should follow a cost reduction strategy using IT. This is
explained by the fact that for buyers the price is the decisive factor. Thus, while Burger Embassy
improves its operational efficiency, it manages to gain a competitive advantage over other fast food
outlets by reducing operating costs as well as costs for customers, thus making them a leader in the
business market.
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Another strategy which will be implemented using new IT development will help the company to
follow the differentiation strategy. Industries that have used a differentiation strategy may be highly
skilled, offering creative products or services, or they may have a strong sales force that earns a
reputation for their innovative and quality products or services (UKDiss,2018). Moreover, because of
the rapid advancement of technology, it is critical to compete in the market with the abilities and
talents necessary to deal with an ever-increasing complexity and constantly changing market. This
proves that IT can be a source of competitive advantage.
Another shift that will occur with the launch of a new development is the company's plan for retaining
existing clients using information technology approaches in order to get a competitive edge.
Customer lock-In, according to UKDiss(2018), is a business approach that has allowed industry
leaders such as Amazon, Apple, Microsoft, and Rolls Royce to retain consumers and surpass their
competition by utilizing information technology strategies. Given that this mobile application will offer
unique features that none of the eateries offer, it will act as a customer trap. That is, if a customer
wishes to go to another café, he or she will have to forego the Burger Embassy's services. As a
result, buyers' bargaining power will be reduced, as will rivalry among existing competitors.
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