Business Environment Analysis and Risk Management for Happy Bar & Grill Restaurant Chain

Business Environment
Analysis and Risk
Management

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Internal environment analysis......................................................................................................3
External environment analysis.....................................................................................................6
Undertake a risk assessment to identify business risks...............................................................9
CONCLUSION..............................................................................................................................11
Appendix:......................................................................................................................................13

INTRODUCTION
Business environment is defined as the sum of various external factors that impact business
performance and functionality in positive and negative manner. It is the sum of all individuals,
institutions and other forces that are out of control of business enterprise so, it is important for
the business to analyse these factors and develop effective strategies to run business operations
efficiently and gain competitive advantages. In this report Happy Bar and Grill is taken into
consideration which is chain of daily restaurants established in 1994. In the year of 2020, Happy
Bar and Grill opens its first restaurant on London at iconic Piccadilly Circus. This report covers
internal and external business environment factors that impact business performance and
sustainability. Along with that, risk assessment, categories of risk that are associated with
business, risk management process and risk assessment tools are explained.
TASK
Internal environment analysis
Internal business environment is defined as the factors and forces that are directly related with
business operations and impact its activities (Aula, and Mantere, 2020). Happy Bar and Grill
opened its first restaurant in London at iconic Piccadilly Circus so it is important for the
organisation to run operations accordingly to gain competitive advantages.
SWOT analysis: SWOT analysis is defined as the framework that enable organisation to
analyse all strengthen, weak areas as well as assess opportunities and threats (Chaudhuri, Boer
and Taran, 2018). Factors of swot analysis in the context of Happy Bar and Grill restaurant are
mentioned below:

Figure 1 SWOT analysis, (2022)
Strengths
 Happy Bar and Grill restaurant provides fresh and high quality products to customers at
affordable prices that attract higher number customers towards organisation.
 Restaurant serves variety of cuisine in its menu at affordable prices, combined with
pleasant emotions and an explosion of delicious sensations (Foreman, 2019).
Weaknesses:
 Poor customer service and long wait time are the weaknesses of Happy Bar and Grill
restaurant that impact on organisational overall performance and customer base.
 High prices of wine, alcohol and noise level impacts on restaurant functionality and
customer satisfaction level (Puyt, and et,al., 2020).
Opportunities:
Happy Bar and Grill restaurant provides variety of food items to customers that will enhances
restaurant's sales and profitability (What Is a SWOT Analysis and How to Do It Right.2022).
 Conducting social media campaigns will enable business to reach wider audience and
enhance customer's loyalty level.
Threats:
 Higher level competition and economic downturn are the conditions that create threat for
overall business performance and functionality.
Bad reviews at rating site is the factor that impact restaurants customer base and brand reputation
in current market place (SWOT analysis.2022).