Industry Research Paper

This industry research paper analyzes the food sector in Australia and explores the opportunity for launching a healthy fast food restaurant. It covers macro and micro environment analysis, consumer and competitor analysis, and core challenges and opportunities.

Industry Research
Paper

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Macro environment analysis........................................................................................................1
1.a) Pestle analysis.......................................................................................................................1
1.b) Porter five force analysis......................................................................................................3
Micro analysis..............................................................................................................................5
2.a)Consumer analysis and summary..........................................................................................5
2.b) Competitor analysis and summary.......................................................................................5
Summary of core challenges and opportunities...........................................................................6
3.a)Gaps within the market and unmet needs consumer needs...................................................6
3.b) Competitive weaknesses can be exploited............................................................................7
3.c) Emerging opportunity...........................................................................................................7
3.d)Challenges that needs to be addressed...................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Food sector is one of the biggest industries which are contributing huge percentage in the
growth of Australia. By analysing this a new opportunity in the industry is being identified which
has resulted in the formulation of new business idea. It is related to launching healthy fast food in
the market with the help of a new restaurant which is Nature's Table. Main focus of it is to target
such individuals who love to try different variants of food but they are equally focused on their
health. The restaurant will be opened at the end week of March and location of it is near Sydney
Harbour Bridge which is one of the main and famous tourist attractions. This part of the report
will cover various topics such as macro environment analysis with the help of PESTLE and
Porter's Five force analysis. Additionally, micro environment assessment for the purpose of
evaluating consumer and competitor along with summary of core challenges and opportunities
are also covered in this project.
MAIN BODY
Macro environment analysis
1.a) Pestle analysis
Macro environment can be defined as combination of different situations which could be
faced by an organisation while operating business. It is very important for all the companies to
make sure that it is analysed by them to execute operational activities properly. As Nature's
Table is a new restaurant of healthy fast food which will be opened in Sydney therefore it is very
important for it to make sure that macro environment is analysed by it (Billari, 2015). There are
various types of models and techniques which could be used for same purpose. These are
PESTLE, Porter's Five force analysis etc. Detailed description of both the frameworks is as
follows in context of Nature's Table:
PESTLE analysis: It is an external analysis tool which is used by most of the business
entities for the purpose of assessing impact of different factors in business and its market
position. All the components of it are political, economic, social, technological, legal and
environmental. For Nature's Table it is very important to analyse all of them in detail so that
possibility of negative situations could be reduced. All the essential elements of it are discussed
below in detail:
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Illustration 1: PESTLE analysis, 2020
(Source: PESTLE analysis, 2020)
Political: There are various factors such as foreign trade policy, taxation, fiscal policy,
trade restrictions, labour laws etc. which are elements of this component. As Nature's Table is a
new restaurant which will be opened in Sydney at the end of march therefore it is very important
for it to consider all these essential elements to operate business properly. Australia is one of
those countries which are highly stale in political terms therefore it is a great opportunity for the
organisation to operate business there in systematic manner (PESTLE analysis, 2020).
Economic: Factors such as economic growth, interest rate, inflation, deflation, financial
capabilities etc. are part of this force. Development of economy of Australia is very good which
is beneficial for Nature's Table to establish itself successfully. The rate such as exchange,
deflation and inflation are also stable which keep the purchasing power of customers balanced
which is advantageous for the restaurant. It will help the enterprise to meet its targets by setting
right prices for all its dishes according to buying capacity of clients (Choi and Fthenakis, 2014).
Social: Population growth, age distribution, cultural trends, demographics etc. are some
of the components of this factor. It is very important for Nature's Table to be aware of all of them
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and potential changes which may take place in future so that possibility of decreased profits and
losses could be reduced. All the changes that are taking place within the environment are
analysed by restaurant and the managers have decided to formulate strategies according to that.
As the choices and tastes of customers changes with time and currently the demand for healthy
fast food is very high. This opportunity is identified by it and then business idea is formulated
accordingly.
Technological: Latest technology, current trends, technological enhancement and
advancement etc. are components of this factor. All of them are required to be taken in to
consideration for the purpose of establishing a new business successfully. Individuals in
Australia are very friendly with the latest technology therefore, Nature's Table should make sure
that it adopts latest technology to market itself. With the help of it, digital techniques such as
social media marketing, SEO etc. the restaurant will be able to aware targeted customers
regarding all the healthy fast food items which will be sold by it (Da Silva and Al-Khatib, 2017).
Legal: Different laws such as health and safety act, consumer rights, consumer
protection, product safety etc. are some of the legal implications which are required to be
focused by all the business entities such as Nature's Table. By taking all of them in to
consideration all the organisations and new businesses will be able to establish a positive market
image that can help to ignore legal interferences in business. Ignorance of them may result in
strict action of governmental parties against the restaurant. As Nature's Table will serve food
items to the customers therefore it is essential for it to make sure that healthy and safe food is
delivered. It will help to establish the business properly.
Environmental: It is last element of PESTLE analysis which is mainly focused with
pollution, environment protection, climate and weather etc. As Nature's Table is a new restaurant
which will be opened in Sydney, Australia so it is essential for it to make sure that its operational
activities are not harming the environment. Negative impact of it on the surrounding may affect
the growth and market image of the restaurant (De Villa, Rajwani and Lawton, 2015).
1.b) Porter five force analysis
Porter five forces: It is an analytical tool which is helpful in identifying the competitive
forces in an industry. It is a tool which help organisations in determine the competitiveness of
the industry in which they deal which support in formulate the strategy to compete in that
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environment. This tool consists five forces, in context of nature’s table these forces can be
understood by following points: Threat of new entry: This force defines the power of new entrants to enter in market. In
context of nature’s table this force is also high because the hurdles to enter in this market
is low as a local fast food restaurant can be started with minimum labour and capital
required. Further, attract new customers is also easy. All these are the elements that
increase the ease of new investors to enter in food industry which increase the threat of
new entrants. Threat of substitute: Nature’s table is a fast food restaurant which offers variety of
healthy fast food products to its customers. Threat of substitute in context of this
restaurant is high as number of other fast food restaurants are there that also offer variety
of food items to its customers (Liu, 2015). In order to deal with this and to attract large
number of customers towards its offering company require to adopt innovation and to
offer something new to its customers so it can capture a large market share. Competitive rivalry: Considering the hospitality industry in the United Kingdom there is
an intense competition between the players. As all of them are catering their services to
an exclusive customer base. The higher competitive rivalry between the organisation
assures that profit levels are maintained at minimum. The major players in this sector are
Daily Greens, Egg of the Universe, UMU Organic, Verd, Yulli's, Pilgrims,Cronulla,
Ouroboros Organic Wholefoods etc which carries largest share of the market. This
business carries a distinct approach as it is offering Healthy fast food which may be
helpful in gaining a competitive advantage. Bargaining power of suppliers: Suppliers are one who are responsible to deliver raw
materials to the businesses. The numbers of suppliers in the restaurant industry
determines the influence they have on business operations. Nature's table is a venture
which is planning to cater the need of healthy diet of the market. Therefore suppliers does
not carry high bargaining power as need of this business can be fulfilled by the local
vendor of fruits and vegetables.
 Bargaining power of buyers: The buyers carry a strong bargaining power when it comes
to hospitality industry as there are large number of businesses operating for a smaller
share of people (Lyulyov and Shvindina, 2017). The buyers in this industry carry a
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strong influence on the pricing decisions which are carried out by the company.
Therefore it is essential for the Nature's table to identify the pricing strategies of the
competition along with determining the disposable income of the target segment so that
their requirements could be fulfilled accordingly.
Micro analysis
2.a)Consumer analysis and summary
Customer analysis is basically a process that is associated with market research and help
to find out detail insights about the requirements, demographics and essential information to
predict the behaviours of ultimate consumer.
Targetting: Nature's Table targets both youth as well as adult that prefer going out with
their family and friendly and prefer to have tasty and healthy meals. The customer generally find
the ambiance of Nature's Table desirable enough in terms to spend preferable amount of time and
explore nutritious fast food without compromising their health.
Factor which influences the behaviour of consumer: With the change in trend and
emerging consciousness amongst people regarding health helped them to avoid the outside food
especially junk. On other side Nature's table analyse the problem and bring revolution by
offering the place to serve healthy junk food. The changing requirement of fitness freak people
are effectively accommodate due to which they significant enjoy the meal (Oudin and Weaver,
2016).
Customer Demographics: Middle and higher income group people include both male
and female prefers to explore the Nature's table. The desirable combination of all essential
nutrients attract the people of different age groups and enjoy the meal. This helps the customer to
generate favourable feedback due to which they less likely prefer to switch amongst other outlet.
2.b) Competitor analysis and summary
Competitors analysis helps the particular company to examine the strategies or actions
opted by other competitive rivalry that deals in similar type of industry. This helps to effectively
build up the unique plan and attract the long term needs of target market.
Existing products and services of competitor: There are various type of companies that
are the part of food and beverage industry and service health options to the customer like UMU
Organic and Yulli's are some of them but they does not serve fast foot. Moreover, Subway as
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well as KFC are main competitors of Nature's table due to which they need to build up effective
strategy and serve their existing customer effectively in order to maintain huge customer base.
Size of rivalry: The size of rivalry is too wide as they operate in different parts of the
country including both developing and developed. It leads to the portfolio investment based on
which even Nature's table needs to constantly practice in terms to expand its current market size
(Pelto, 2019).
Pricing strategy of competitor: Most of the rivalries have effectively sets competitive
pricing strategy in terms to retain its audience and offer their customer with supreme quality of
product at desirable prices. Even Nature's place needs to maintain effective pricing to attract the
new attract and offer them privilege to try healthy fast food items.
Summary of core challenges and opportunities
3.a)Gaps within the market and unmet needs consumer needs
With the globalisation and increase amount of competition it is necessary for manager to
conduct market research and analyse the opportunity which exist in external market in order to
successfully accommodate the requirement of existing and potential customer. Nature's place
identifies that most of the people have developed taste for fast food but to maintain their health
and manage weight they need to either ignore fast food items or replace them with healthy
options. The internal manager of company identifies the gap and offer platform for consumer
where they need not to comprise their liking by producing and delivering healthy fast food
options. This effectively led the company to cover up gap by covering unmet needs and
requirements of customer for the well being of external stakeholders (Philipov, Liefbroer and
Klobas, 2015). Additionally, it can helps to establish the unique image of brand and must
constantly function to also cover up the upcoming needs and requirements of society. It is vital
for Nature's place to conduct market research and development programme that assist company
to derive out significant amount of information based on which it can redefine or policies its
strategy effectively. Along with that the feedback of customers posted on the website of
company needs to be considered also important suggestion needs to be followed in order to
successfully fill up the performance gap.
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3.b) Competitive weaknesses can be exploited
Natures place being a part of competitive environment faces various challenges in order
to sustain its existing market position as well as customer base. It is essential to focus on the
weakness and overcome them successfully in order to produce desirable amount of performance.
Some of the weaknesses are listed down below:
Inconsistent service: Being the part of global market Nature's table needs to remain
flexible in terms to carry out smooth operations which lead to inconsistency which carrying out
the functioning. This perhaps can affect the profitability and productivity of company.
Immense pressure of financial capital: Nature's table consistently promote its business
through social and traditional media which require immense amount of expenditure. Even the
company plans out to diversify its business inside as well as outside geographical periphery
which require huge dependency on capital.
Turnover of staff: This is again the major issue which is faced by Nature's Table due to
which manager needs to implement desirable strategy as well as policies to product consistency.
Thus, it is necessary to deal up with such issue significantly (Rostiashvili, Soselia and
Mekantsishvili, 2014).
3.c) Emerging opportunity
Opportunity helps to offer immense amount of profitability to a company and establish
viable image amongst target market. Application of some of the opportunity that can help
Nature's Table to maintain sustainable performance are explained below:
Extensive use of online media: With the help of digital media like website, SEO, email
marketing, affiliate marketing and so on the company needs to spread the awareness amongst
customer. This at the single time can engage the interest of wide respondents.
Use analytical tool to examine the response of customer: The role of analytical tool is
to determine existing market trend, response of customer, traffic rate, source of traffic,
conversion rate and so on. This helps the Nature's Table to gain the result at real time based on
which can effective examine the favourable technique and implement its successfully.
Take CSR initiatives: Adopting CSR techniques can helps the restaurant to manage its
relationship with internal and external stakeholders. This acts as a successful tool based on which
company can effectively portrait its effective image within the society (Sheehan, Grant and
Garavan, 2018). Like they need to avoid or totally ban the use of plastics, implement
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employment legislation and participate in charitable activities. Therefore, all these functioning
have to engage the customer and retain the existing employment leading to high productivity as
well as profitability.
3.d)Challenges that needs to be addressed
Challenges or threat needs to be anticipated by an organisation in terms to set out
desirable functioning of an organization. Organisation needs to successfully develop the plan in
order to overcome the external challenges. Prevailing challenges that needs to be addressed by
Nature's table are significantly explained underneath:
Competitive positions of existing rivalry: There are certain brand and food outlet like
Subway which has already establish immense position in terms of serving healthy meals due to
which it has gain wide market share. The strong positioning of existing rivalry acts as a threat for
Nature's place in terms to gather the attention of loyal customers (Stapleton, Jaffray and
Milosevic, 2017).
Changing reforms of government and political body: Government legislation or
reform constantly changes which is the part of external environment, so to cope up with
prevailing challenge Nature;'s place need to redefine its structure. Thus, it is time taking process
and can affect internal operations.
Frequent change in taste and preferences: Due to globalisation and availability of
wide alternatives the preferences of customer regularly changes which is a main threat to
Nature's place. To cope with this challenge the internal manger of company need to regularly
upgrade its policies to derive out significant result effectively.
CONCLUSION
From the above report it has been determined that food sector is one of the most
emerging industries of country due to which it needs to effectively deliver the services to target
market. It is necessary to examine the micro as well as macro environment in terms to build up
signifiant amount of strategy and gain immense positions in dynamic environment. Therefore,
competitive pressure as well as external challenges needs to be effectively analysed in terms to
gain the advantage of core competencies.
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REFERENCES
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Sheehan, M., Grant, K. and Garavan, T., 2018. Strategic talent management: a macro and micro
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Online
PESTLE analysis. 2020. [Online]. Available through:
<https://www.pinterest.com/pin/464011567854766013/.
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