Emerging business opportunities for The Ledbury

This report analyzes the internal and external environment of The Ledbury restaurant to determine growth strategies and overcome challenges in the market. It includes a SWOT analysis, VRIO framework, and recommendations for business growth.

Entrepreneur Research
Project
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Executive Summary
Entrepreneurship is the process to start a venture by taking up financial and other risks to
earn huge profits. There are opportunities available in the market which are exploited by the
entrepreneurs to lead the business towards growth. The spread of corona virus impact adversely
on economy and businesses and its profitability. In this situation, it becomes very necessary for
the restaurant to adopt appropriate strategy for leading the business towards growth. Takeaway
service is one of the best way that help business in attaining growth in the situation of
coronavirus spread. Prior to developing a strategy, it is very necessary to properly analyse
internal and external environment of business along with the risks and growth strategies that may
be adopted for leading the business towards growth.
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Contents
Executive Summary.........................................................................................................................2
TITLE: “Emerging business opportunities for The Ledbury’’........................................................5
1. RESEARCH BACKGROUND AND INTRODUCTION...........................................................5
Research Background.............................................................................................................5
2. LITERATURE REVIEW............................................................................................................6
3. RESEARCH METHODOLOGY.................................................................................................6
4. ANALYSIS..................................................................................................................................8
4.1 Internal Analysis...............................................................................................................8
SWOT Analysis......................................................................................................................8
VRIO framework....................................................................................................................9
4.2 External Market Analysis...............................................................................................11
PESTLE Analysis.................................................................................................................11
Porter’s five force analysis...................................................................................................13
4.3 Analysis of emerging business opportunities.................................................................15
4.4 Risk Analysis..................................................................................................................15
4.5 Strategic Analysis/ Growth Strategy..............................................................................16
Porter’s Generic Strategy.....................................................................................................16
Business Growth proposal.............................................................................................................17
5. RECOMMENDATIONS TO THE COMPANY.......................................................................19
6. CONCLUSION..........................................................................................................................19
REFERENCES..............................................................................................................................20
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TITLE: “Emerging business opportunities for The Ledbury’’
1. RESEARCH BACKGROUND AND INTRODUCTION
An entrepreneur is the person who establish a new business by taking up financial and
another risk with the hope of earning high profits. They are seen as innovators as well as source
of new product, ideas, services and business. In today's business environment, the competition is
huge which requires every business to differentiate itself with the rivals by adopting new ways of
doing things. Currently, the spread of corona virus pandemic impacts almost all the businesses in
adverse way, slow down the economy which directly impacts on the profitability and revenues of
firm (Matlay, and et. al., 2015). The restaurant industry is impacted highly by the spread of virus
as due to preventive measures like restrictions on movement and social distancing, it becomes
very difficult for restaurants to operate successfully. So, in order to ensure growth and success of
business, The Ledbury is decided to come up with a strategy of providing home delivery and
takeaway services to customers so that they do not require to move outside for having lunch or
dinner and can order food by sitting in the home only.
The Ledbury is a well-known restaurant of London which perform its operation successfully
from last 15 years in the city. The restaurant ensures to provide high quality food items to
customers along with fast delivery services. The restaurant also provides takeaway services to
customers in order to ensure its growth even during the situation of spread of virus. This report
covers different frameworks for analysing the situation of the external market through using
PESTLE and Porter’s five force analysis. For analysing the internal environment of business,
SWOT analysis and VRIO framework is used. Apart from this, risk is analysed and a growth
strategy is selected for the restaurant by using Porter’s generic growth strategy which help in its
growth and success in the market (Sridhar, and et. al., 2016).
Research Background
A business opportunity can be referred as the packaged investment in business that
enabling buyer to initiate certain business. There are many opportunities available in the market
currently for businesses in order to lead them towards growth and success. The most common
type of business opportunities includes franchising, network marketing, licensing, distributing
and dealing. In the current business environment, all the businesses are impacted because of
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spread of coronavirus pandemic. This resulted into slowdown of economy and ultimately
impacts the profitability and revenues of organisations. This project is based on the title
"Emerging business opportunities for The Ledbury". The main of aim of the project is to
determine growth strategy for business so that it can be able to accomplish growth and success
even in the situation of spread of covid-19 pandemic.
Aim of Research:
“To determine the business growth strategy for The Ledbury by the means of product
development”
Objectives of research:
1. To analyse the internal and external market of organisation.
2. To determine the risks which can be face by organisation while operating its business.
3. To assess the different growth strategies which are available for organisation to grow in
the market.
Research Questions:
1. How to assess internal and external market of organisation?
2. What can be the risks which can be face by organisation while operating its business?
3. What are the different growth strategies which are available for organisation to grow in
the market?
2. LITERATURE REVIEW
Internal and external market of organisation
As per the view point of J. Luty, 2020, the restaurant and food service industry of United
Kingdom had undergone growth period prior to the spread of coronavirus pandemic in year
2020, with revenues depicting an increasing trend over the years. However, before the pandemic,
the restaurants in United Kingdom were struggling to survive as several succumbed to closures
in year 2018 and 2019. Increasing costs, declining customer spending and oversaturated market
from increase in casual dining brands in preceding years, have contributed to insolvencies of
autonomous restaurant and leads to closure of many big chin outlets. Now, due to uncertainty
because of unexpected pandemic and brexit, the future of restaurant industry is less known. It has
been anticipated that the revenues fall by around 33% in year 2020, but the outlook suggested
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complete recovery by year 2024 (Restaurant industry in the United Kingdom (UK) - Statistics &
Facts, 2020).
Figure 1: Industry revenue of “food and beverage service activities“ in the United Kingdom
from 2012 to 2024
Risks which can be face by organisation while operating its business
As per the view point of Omsa, Abdullah, and Jamali, 2017, there are several risk associated
with the restaurant businesses. Some of the risks are discussed below:
 Insufficient cash flow: underestimating the time which is required by restaurant to
develop itself to become profitable business often in single biggest risk that faced by
owners. While developing a new service, the cost can be considerable. Failing to raise
adequate capital can be one of the risk that restaurant businesses face.
 Inadequate marketing: putting appropriate promotional efforts is very important for any
business. Restaurants are forced to deal with many rivals may quickly find themselves
lost in crowd, specifically in the situation when the owners of business field to make
advertising as a top priority. If the marketing of restaurant is inadequate, the it poses a
risk for the business.
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Different growth strategies which are available for organisation to grow in the market
As per the view point of Cavaleri, and Shabana, 2018, there are several business growth
strategies which can be employed by restaurant business including market penetration, market
development, product development and diversification strategy. In market penetration strategy,
businesses penetrate on the existing market with existing product to increase share in the market.
In product development strategy, new products developed by the restaurant to cater the needs of
existing market. In market development strategy, new market is developed by the restaurant with
existing product. And in diversification strategy, both the product and market is new and is the
riskiest strategy to employ. All these strategies help in growth of the business.
3. RESEARCH METHODOLOGY
Research methodology introduces as the procedure of collection and analysis, interpretation
of information regarding the research topic. Different methods are involved in the research
methodology that help investigator in performing the investigation systematically. Different
methods which are utilized in relation to this research are mentioned below:
Research philosophy: The research philosophy is classified as positivism, interpretivism,
realism and pragmatism. It deals with nature, source and development of knowledge. It is
defined as the belief regarding the ways through which data must be collected and utilize. In
pragmatism philosophy, details collected through mixed method, highly structured data is
collected in positivism philosophy, in realism The chosen method should fit the subject matter
and in interpretivism small samples are used to collect data. In this investigation, interpretivism
philosophy is considered as it is based on naturalistic approach and related to high validity level.
Research Approach: Two approaches of research involve inductive and deductive.
Inductive research approach is not based upon a particular theory and includes observation and
development of theory. On the other hand, deductive approach initiates with theory and testing of
those theories. It involves formulation of hypothesis and its testing to analyses results. Inductive
approach is taken into consideration in this study as it is relevant according to the topic and assist
the researcher in drawing valid research outcomes.
Research design: The research design consists of experimental, exploratory and descriptive.
Exploratory research involves exploration of new phenomena. Descriptive research helps in
getting large amount of data to answer the research question of appropriately and experimental
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research is based on scientific research design. In this investigation, the researcher considers
exploratory research design as this help investigator in gaining better understanding about the
topic.
Data gathering methods: It is the process through which the data about particular study is
collected. It can be done in two ways through primary and secondary methods. Fresh information
is gathered in primary research and articles and journals are used to collect secondary data. This
investigation considers secondary data collection method as through this, researcher is able to
gather large amount of information. The secondary method of collecting data helps the
researcher as this will help in gathering adequate amount of data over the particular research
topic which assist in ensuring the accuracy of research outcomes.
Method of data analysis: In research, data can be analyzed through qualitative and
quantitative methods. In quantitative data analysis, data can be analyzed through descriptive and
inferential analysis. And the qualitative data can be analyzed through narrative analysis,
grounded theory, content analysis and discourse analysis. In this study, the data is analyzed
through descriptive analysis method as this assist researcher in find out absolute numbers for
summarizing individual variables.
Reliability: Research reliability is defined as the extent to which the methods of research
produces consistent and stable outcomes. In research, it is highly important aspect as it assists in
ensuring the affective outcomes of research. It also helps in ensuring that it has positive
implication on other areas of study and allow a researcher to develop further investigation in the
similar field. In order to ensure reliability of data, the research will gather the data from authentic
and relevant sources and ensure that the data older than five years can not be included in the
investigation.
4. ANALYSIS
4.1 Internal Analysis
SWOT Analysis
SWOT Analysis is a tool which helps the manager of The Ledbury in determining the
strengths, weaknesses, opportunities and threats of the restaurant, which in turn help in
developing appropriate strategies that assist in exploiting the opportunities and overcoming
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threats and weaknesses in order to grow and get success in the market (Omsa, Abdullah, and
Jamali, 2017). The SWOT analysis of the Ledbury is as follows:
Strengths Weaknesses
 The restaurant has well qualified and
experienced staff to serve guest.
 Provide high quality food at affordable
prices is the strength of restaurant.
 The restaurant also offer food for health
conscious people.
 Menu of the restaurant consists of
variety of food items.
 As it is a small restaurant, it has limited
funds.
 Most of the food items of restaurant are
similar to other restaurants.
 The restaurant is not older than 15 years
(Alzoubi, and Emeagwali, 2016).
Opportunities Threats
 Opening a new restaurant in other area
of the London or in other new market
provides an opportunity.
 Offering differentiated product or
service to customers also provides an
opportunity to restaurant.
 Setting competitive prices of food items
and offering healthy food is an
opportunity.
 Fierce competition in the market creates
a threat for restaurant.
 Reduced prices by rivals is also a threat
for restaurant.
 Increased operational cost makes it
difficult for restaurant to mitigate
income.
VRIO framework
Use of VRIO model is made by an organisation to have an analysis about its internal resources
and the vital capabilities that lead support and strength for a company to sustain its success and
gain Competitive advantage (Cavaleri, and Shabana, 2018). In present scenario following use of
VRIO model is made by The Ledbury restaurant to get better analysis of its internal resources
and capabilities that would support its growth and help in coping up with issues of COVID-19.
Resources Valuable Rarity Inimitable Organized What is the
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result?
Distribution
channel
Yes No No No Competitive
Disadvantage
Market presence Yes Yes No No Partially
competitive
Technological
resource
Yes Yes Yes No Temporary
competitive
advantage
Human
resource
Yes Yes Yes Yes High
Competitive
advantage
The above table is reflecting that the Ledbury restaurant is still having the capabilities and
potential to grow and get success even in the time of current pandemic situation lead by COVID-
19. An analysis if VRIO model of The Ledbury restaurant is provided below:
Valuable
It represents the resources which are adding the value for The Ledbury restaurant and
enables it to explore current opportunity and overcome all expected threats. Valuable resources
of The Ledbury comprise of its distribution channel as it is getting more effective and valuable
after introduction of take away facilities’ and online services (Sridhar, and et. al., 2016). Further,
the market presence of The Ledbury also became valuable for this company as on last 15 years
many new branches are opened by The Ledbury at various places of London. Apart from this
regular up gradation of technology and development of human resources is also valuable
resources for The Ledbury restaurant as it provided technical support and more motivated
workforce to garb an opportunity and overcome a threat.
Rarity
These resources comprise of capabilities that can be acquired by only a few companies
thus considered rare and provide a temporary level of competitive advantage to The Ledbury.
The market presence level of The Ledbury is quite good as in 15 years of working a good image
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and goodwill is achieved by this organisation that is difficult for its competitors to acquire. Apart
from this, making use new and most efficient technology to provide better services and higher
comfortable level for its customers is also a rarity resources. Apart from skilled and creative
human resource is also providing a sense of temporary competitive strength for The Ledbury
restaurant (Hendriyani, Rinala, and Pranadewi, 2016).
Inimitable
It presents a set of resources that require a suitable amount of investment for acquiring
therefore providing a sustainable level of competitive strength for The Ledbury restaurant. The
use of most efficient technology for offering upgraded services in form of online services and
take away facilities is providing a higher level of competitive strength for The Ledbury. Further,
highly efficient and innovative employees is leading an inimitable resource for The Ledbury that
is providing it an upper hand on its competitors.
Organized
It represents the most organised and greatest strength of The Ledbury restaurant which
promotes highest level of support to run its business for a longer period and maintain its
sustainability. Human resources of The Ledbury restaurant is its most organised form of resource
for this organisation as all possible measures are taken to set a balance and coordination among
its employees to achieve the set targets in a better way (Sammut‐Bonnici, and Galea, 2015).
Apart from this, in current situation of COVID-19 proper training and online development
programmes are organised by the Ledbury to ensure proper information and understanding about
the needed precaution to control the spread of Covid-19. Proper hygiene, sanitisation and social
distancing is maintaining by the employees of The Ledbury to effectively run and sustain its
business during the time of this global pandemic.
4.2 External Market Analysis
PESTLE Analysis
The restaurant sector is one of the popular and profitable business. There are distinct types
of restaurant where people can go and enjoy with their friends and family. It is the place where
food is cooked and served to guests and works round-the-clock. However, due to spread of
covid-19 pandemic, many restaurants are temporarily closed and people prefer less to go outside
and have food (Razumeyko, 2020). This highly impacts on the businesses and their profitability.
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For overcoming this situation, The Ledbury restaurant can come up with home delivery and
takeaway services. In business environment, there are several factors which influence on
businesses. These factors can be assessed by using PESTLE analysis. The factors included in this
analysis are discussed below:
Political factor: the restaurant business is greatly influence by political factors. These
factors include health and safety guidelines, tax reforms, etc. In the market of United Kingdom,
there are many uncertainties takes place due to Brexit and spread of corona virus pandemic. This
leads to direct impact on the businesses. This impacts on the health and safety regulations of the
country and makes it necessary for the restaurant to take proper care of hygiene and safety while
cooking and delivering food. The Ledbury can minimise the impact of Health and safety
regulations by adopting proper health and safety measures at the time of delivering take away
services and home delivery of food (Gurung, 2018).
Economic factor: it includes GDP trends of country, tax rates, inflation rate, unemployment
rate etc. Due to spread of corona virus pandemic, inflation rate gets very high which directly
impacts on the prices of ingredients used by restaurant. As a result, to this, menu prices go up
and people avoid to go outside for having dinner. Apart from this, the disposable income of
consumers gets low due to covid-19, which directly impacts on the restaurant business.
Moreover, this also creates a situation of lack of workers temporarily as many of the workers fall
ill. This outcome into decline in economic output. In order to minimise the impact, it is required
by the manager of The Ledbury to develop appropriate strategies and ways which help in
running the business properly. Providing food at low rates with take away and home delivery
service will help restaurant in attracting more number of customers (Hendriyani, Rinala, and
Pranadewi, 2016).
Social factor: it involves the needs and preferences of customers, lifestyles etc. Due to
outbreak of corona virus pandemic worldwide, it likely to outcomes and panic. The spread of
virus creates a fear in the minds of people and they restrict the movement from one place to
another. Apart from this, people are becoming more conscious towards their health and not
prefer to go outside for having dinner or lunch. As a result, people are looking for the ways
through which they can get food to their home (Hasan, 2015). They also prefer to order food
from such restaurants which follow the health and safety guidelines provided by government
during spread of coronavirus pandemic. In addition to this, people are more inclined towards
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having organic food rather than junk food. This highly impacts the restaurant businesses in the
United Kingdom. However, if The Ledbury will consider needs and preferences of customers
and offer its products and services accordingly, then it will help in maintaining sustainability and
attaining success in the market in this pandemic situation.
Technological factor: it includes technological advancements and innovations. In the food
industry, various types of automations are seen including self-checkout screens, robots etc. Using
these technologies will help in improving the profitability of restaurant. It is very necessary for
an organisation to make use of high end technology in its business processes so that high quality
products and services can be offered to the customers. The Ledbury need to make use of
technology in its business operations like for providing takeaway services and home delivery
services, it can develop its own application through which customers can order food directly.
This will help in the restaurant in attaining sustainability in the market (Mathooko, and Ogutu,
2015).
Environmental factor: it is very important for the manager of restaurant to analyse internal
and external environment properly. Today, people are more concerned towards environment and
prefer to visit such restaurants which run its business operations in environmental friendly
manner. Apart from this, the growing awareness people about health repercussions is also one of
the factor that impacts on the operations of business. Production of meat require large amount of
water and develop significant carbon footprint. This harms the environment that impacts the
image of restaurant in negative way. For reducing the impact on environment, the Ledbury
restaurant requires to follow all the environmental laws made by government and ensure that its
business activities and operations will run in environmental friendly way (Takata, 2016).
Legal factor: there are several laws and regulations made by government which influence
the operations of restaurant business. The legal and local bodies of United Kingdom frequently
visit distinct areas of restaurant like store and kitchen in order to check the quantity of food
items, staff, expiry as well as other conditions. There are some food and safety standards are also
developed by government of United Kingdom which needs to be followed by the restaurant
(Sammut‐Bonnici, and Galea, 2015). In order to ensure its growth and success in market while
providing takeaway and home delivery services of food, The Ledbury requires to follow all the
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standards, regulations and rules so that business operations can be run smoothly. Noncompliance
with the rules and regulations may result into high amount of penalties.
Porter’s five force analysis
Porter's five forces analysis is a tool which helps manager of The Ledbury to understand
industry dynamics in an effective way. It consists of five forces, application of which on
restaurant industry is as follows:
Bargaining power of buyers: since, customers have the power organisation's pricing
decision, the restaurant in sector is affected by switching behaviour and choice of buyers.
However, restaurant cannot offer items at high prices as it limits the customers. Some ways by
which buyers can influence restaurant includes items offered by restaurant, changes in prices,
quality of items provided etc. In restaurant industry, the bargaining power of buyers is moderate
which creates a slight threat for company. So, it is needed by The Ledbury to adjust the prices of
its items as per the target market as well as their affordability (Bell, and Rochford, 2016).
Bargaining power of suppliers: there are number of supplies available in the restaurant
industry of London, United Kingdom, who provide raw material The Ledbury. So, the power of
suppliers is low in the industry as there are many supplies available through which restaurant can
buy its raw materials. This provides an opportunity to The Ledbury to get raw materials at low
prices and offer high quality food items to customers at affordable prices. Apart from this, if
restaurant provides its takeaway and home delivery services at nominal prices, then it will help in
attracting more number of customer towards the restaurant during the situation of spread of
corona virus pandemic.
Threat of new entrants: the restaurant industry of London is very big and there are many
restaurants operating in the market who are well known by people living there. So, it would be
easy for a new restaurant to enter into the market as it requires moderate level of investment to
set up a new restaurant. However, due to spread of covid-19 pandemic, investing in a new
business is risky (Muhammad Siddique, 2015). So, threat of new entrants for The Ledbury is
moderate. However, in order to maintain its growth and sustainability in the market during this
pandemic situation, if the restaurant provide services differentiated to its competitors then it will
help in attaining long-term sustainability in the market even during the situation of spread of
corona virus pandemic.
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Threat of substitute products: in London, there are many restaurants available which makes
it easy for buyers to make choice of switching to another restaurant. Apart from this, the cost of
switching is the another element which makes it easy for people to shift their loyalty from one
restaurant to another. So, the threat of substitute product for The Ledbury is high as availability
of so many restaurants in the market makes it easy for customers to switch to another restaurant.
In order to overcome this threat, the restaurant need to emphasize on providing customers with
high quality food items and fast delivery services which assist in retaining the existing customers
and attracting new customers towards the restaurant (Hofmann, and Osterwalder, 2017).
Rivalry in the industry: as there are many restaurants available in the market of London,
the rivalry in the industry is high for The Ledbury. The rivals in the industry strive to attain large
share in market while maintaining profit flow as well as supporting business towards growth.
This makes it difficult for The Ledbury to maintain high profitability. Apart from this, because of
spread of corona virus pandemic, customers prefer less to order food from any restaurant which
are unknown to them. And they also prefer to eat less from outside. In the situation, for attaining
sustainability in the market, The Ledbury requires to ensure that it follow all the safety
guidelines while cooking and delivering food to customers.
4.3 Analysis of emerging business opportunities
There are many business opportunities available for the restaurant business including
sourcing local ingredients, add healthy options in the menu, opportunity in alcoholic beverages,
hope on plant based trend, offer technology, invest in optimizers, offer home delivery option,
trying something unexpected, engaging customers, highlight value, offer easy editions to home
prepared meals, think differently across day parts, engaging an emerging workforce and be clear
while communicating employee initiatives. All these are the opportunities which are available
for the restaurant business that help in their growth and success (20 restaurant industry
opportunities for 2020, 2020).
Providing online food ordering, take away and food delivery service provide restaurant
with the opportunity to grow its business even in the current situation spread of corona virus
pandemic. The distribution channel of the restaurant is valuable and with the help of it, restaurant
enable to effectively providing its services. Apart from this, the market presence of restaurant is
good which provides it with the opportunity to attract more number of customers toward its
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products and services. For providing home delivery service, human resource of the restaurant
provides it with competitive advantage. They highly contribute the restaurant in providing food
delivery services on time by preparing the food on time.
4.4 Risk Analysis
Risk analysis is defined as the process of analysing the likelihood of adverse incidents
occurring within business environment. There are several risks exist internal and external
surroundings of business. So, it is very necessary for The Ledbury to analyse all the risks
properly so that management can enable to develop appropriate strategies which help in
minimising the impact of risk or mitigating the risk in an appropriate way (Singla, and Durga,
2015). For this, the manager requires to determine the hazards, who might be harmed and the
way to harm, then proper evaluation of risks is done as well as managers will decide on control
measures. After then, the findings are recorded and assessment is reviewed and update as and
when needed. As The Ledbury wants to come up with home delivery and take away services,
there are several risk associated with it including employment risk, financial risk, environmental
changes etc. For delivering the food items to consumers, restaurant required to have adequate
amount of human resource which needs investment as it requires to hire the delivery boy for
delivering food (Sölvell, 2015). The another risk is supplies risk as in the situation of spread of
covid-19 pandemic, there are very less suppliers who provide raw materials to cook food. If the
adequate amount of raw items is being not available, the restaurant is not able to cook food and
deliver it on time. In order to mitigating this risk, it is very necessary for restaurant manager to
ensure availability of proper amount of raw materials so that food can be cooked and delivered to
customers on time. The another risk is financial risk as for providing home delivery services to
customers, the restaurant requires to invest some amount of money in it and in the current
situation of spread of covid-19 pandemic, it becomes very difficult to ensure that this investment
gives return. So, there is a financial risk along with operational risk in starting the service of
delivering food to customers. However, by providing high quality food items along with fast
delivery services, restaurant attract more number of customers and mitigating this risk
appropriately.
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4.5 Strategic Analysis/ Growth Strategy
Porter’s Generic Strategy
As per the Porter's Generic Strategies model, three basic strategic options and growth
strategies are provided which are available to organizations in order to gain higher competitive
advantage and strength in a business environment (Sammut‐Bonnici, and Galea, 2015). Basically
the, Generic strategy are referred to three alternative methods out of which one can be adopted
by a firm in order to position itself more competitively and effectively within an industry the
concept of which is first defined by Michael Porter in his book Competitive Advantage (1985). A
discussion about these three strategy in context of The Ledbury restaurant is provided below to
support its business operation and sustainability during the times of COVID-19 through offering
better ways of competing in business environment.
Cost Leadership- It is mainly associated with lowering of cost to become the lowest cost
producer within the industry to exploit sources and advantages of cost leadership. It can be
achieved by The Ledbury restaurant through proper management of cost production,
administration cost and other expenses but in current scenario of COVID- 19 it is not possible for
The Ledbury restaurant to minimize its cost as supplying and administration cost are quite high
because of current pandemic situation (Jarzabkowski, and Kaplan, 2015).
Differentiation- This generic strategy is mainly associated with the coming up with a unique
product or dimension within an industry that is widely more valuable and exclusive to attract
larger number of customers. Differentiation strategy is most viable and suitable for The Ledbury
restaurant at the times of COVID-19 as it offers a better option of coming up with new services
like take away facilities and online delivery at home as it offers a safer and convenient way of
reaching products to customers during the time of current pandemic.
Focus strategy- This kind of generic strategy lead emphasis only on a narrow competitive
scope of an industry through selecting a group or segment of target market. It consists of both
cost focus to seek cost advantage in a narrow market along with differentiation focus to seek
unique product in a niche market. Thus, adoption and implication of focus strategy is not viable
and suitable for The Ledbury restaurant as it limits the focus of a firm only up to a small and nice
market that would not lead to much strength and sustainability during the times of COVID-19
(Omsa, Abdullah, and Jamali, 2017).
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Business Growth proposal
Aim:
The main aim of the business is “to develop an own mobile application so that people can
order food by sitting at home and offering take away and home delivery services to customers.”
Objectives:
The key business objectives of The Ledbury are as follows:
1. To ensure growth of business during the situation of spread of corona virus pandemic.
2. To improve sales and profits of company by 30% within upcoming 2 to 3 years.
3. To generate 50% sales from home delivery services within 2 years.
Vision:
The vision of The Ledbury is “to gain success in business by acquiring trust and loyalty
from customers and offering high quality food and other services to them by bringing continuous
innovation.”
Mission:
The mission of the restaurant is “to deliver high quality food and excellent services to guests
at affordable prices which encourage them to order food again and again.”
Business growth strategy:
There are 4 main growth strategies which help businesses in attaining growth and success
in market. These strategies include market penetration, market development, product
development and diversification strategy.
In market penetration strategy, restaurant can emphasize on penetrating the existing
market with product for increasing its market share. The strategy can be executing by restaurant
through increasing promotion efforts, decreasing prices for attracting new customers and
acquiring computer in similar market place (Cavaleri, and Shabana, 2018).
The another strategy is product development strategy in which the restaurant can develop
new product or service in order to cater the needs of existing market. This strategy is employed
when organisation have strong understanding of existing market and is able to administer
innovative solutions for mitigating the requirements of existing market.
The third strategy that can be employ by restaurant is market development strategy in
which a new market is developed with existing product. The strategy required to expand business
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in new geographic regions and catering the needs of distinct customer segments. This is not the
appropriate strategy for The Ledbury as during the situation of spread of coronavirus pandemic,
it is somewhat risky for the car restaurant to operate in new market.
The another growth strategy is diversification strategy in which both the product and
market are new. Although the strategy has greatest potential to increase the revenue of company,
but it is the riskiest strategy as if the product and market both are new, then it becomes difficult
for the restaurant to survive in current situation (Alzoubi, and Emeagwali, 2016).
So, among all the strategies, product development strategy is the most appropriate
strategy for company current situation. By developing an application of food ordering, it can
provide convenience to people to order food by sitting at home only. Apart from this, providing
home delivery and take away services to customers in existing market of London help it in
gaining attention of more customers and ensure its growth and success in the market. This
strategy also helps in improving the performance of business even in the situation of spread of
corona virus pandemic.
Tactics for implementing the strategy:
The tactics which The Ledbury restaurant use to execute product development strategy in
appropriate way includes investing in research and development to develop new application for
food ordering to cater the needs of existing market. Apart from this, internal and external market
will analyse so as determine the factors and forces that may influence the operations and
activities of business. This help in taking appropriate actions to execute the strategy in proper
way (Salavou, 2015).
5. RECOMMENDATIONS TO THE COMPANY
As per the above provided review of literature and analysis, it is recommended to the
restaurant that it must adopt product development strategy as it is the the appropriate strategy to
be adopted for the restaurant in current situation of outbreak of corona virus pandemic. In this
restaurant can develop a food ordering application through which people can order food by
sitting at home only. Apart from this, providing home delivery option is an appropriate way more
number of customers towards the restaurant and attaining growth and success in the market even
during the situation of outbreak of this highly deadly pandemic.
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6. CONCLUSION
As per the above mentioned report, it has been concluded that for attaining growth and
success in the business, it is necessary for the organisation to develop appropriate strategies by
analysing the internal and external environment. For analysing internal environment, SWOT
analysis and VRIO analysis are appropriate frameworks as these helps in determining is
strengths, weaknesses, opportunities and threats and also assist in analysing the resources and
capabilities of organisation. Apart from this, with the help of pestle analysis, the factors that
impact the operations of business can be analysed effectively. Porter's 5 force model help in
determining the competitive position of business in the industry. While running a business, there
are several risks like financial risk, supplies risk etc. which needs to be analysed properly. After
proper analysis of all the, business need to select appropriate growth strategy that leads the
business organisation towards success.
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