Food And Beverage Management Analysis Report

FOOD AND BEVERAGE MANAGEMENT 1
FOOD AND BEVERAGE MANAGEMENT
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FOOD AND BEVERAGE MANAGEMENT 2
Structure Management Report
Just like any business in the market, Enrika’s Restaurant also has its own strategic
structure. This restaurant’s structure is mainly aimed at addressing the various requirements and
objectives of the restaurant mainly the food and beverage innovation and creation services. The
management of Enrika’s Restaurant has put in place key aspects of strategic food and beverage
management. The other key concept in food and beverage strategic management used by the
restaurant is innovative and customer-oriented leadership competitive strategy. This strategy
entails offering unique foods and beverages whereby all these services are aimed at achieving
customer satisfaction. This strategy has been useful over the operating period of the restaurant as
it has been in a position to gain the loyalty of its customers as well as maintain a large customer
base. Besides, the restaurant has a global nature. This has been achieved by ensuring that the
restaurant offers a wide variety of recipes and beverages most of which are unique hence giving
the company a competitive advantage in the market.
Porters Five Forces Used by Enrika’s Restaurant
Application of strategic and business strategies besides other analytical tools such as
SWOT analysis, PESTEL model, and the Porter's five forces model, is advantageous and
effective at placing the organization at a competitive edge in the industry. This is because it is
through application of these tools that the primary strategic characteristics of the firm’s resources
and capabilities are identified (Domingo, 2018). Enrika’s Restaurant is viewed as one of the top
businesses in the hospitality and tourism industry. Based on the five forces analysis below, it is
evident that the restaurant has a strong competitive edge whilst the bargaining power of
customers is very low. This is one of the aspects that have resulted to increased profitability of
the restaurant. The bargaining power of its suppliers is equally low hence the restaurant is able to

FOOD AND BEVERAGE MANAGEMENT 3
buy its products at a low price hence reducing production cost. The production cost as compared
to the selling prices of the different foods and beverages is very low hence increased
profitability. The threat of substitution and threat of new entry in the market is low to moderate.
Consequently, there is need for the management of the restaurant to ensure that they make
improvements on their key concepts of strategic food and beverage services in order to remain
strongly competitive.
However, the first five forces of the analysis show that the company needs to reduce the
potential negative effects of substitution and competition by satisfying their customers. The
strengths of the five forces that influence the business of Enrika’s Restaurant include the
competition, the bargaining from the consumers, barging of the supplies of power, threats of
substitution and the threat of new entrants. Based on the porter’s model Enrika’s Restaurant
retains its position partly due to the weaknesses of the new entrants and suppliers. Weaknesses of
these new entrants impose minimal challenges to the Enrika’s Restaurant.
Figure 1: Porters Model