Strategic Analysis of Slices: A PESTLE and Five Forces Perspective

This report provides a comprehensive strategic analysis of Slices, a restaurant specializing in healthy food options. It utilizes the PESTLE framework to examine the macro-environmental factors impacting the organization, followed by a Porter's Five Forces analysis to assess the competitive landscape. The report identifies Slices' core competencies and concludes with recommendations for future growth and expansion.

Strategic Analysis of Slices

Contents
Introduction.................................................................................................................................................3
PESTLE analysis of Slices..........................................................................................................................3
Five Forces analysis....................................................................................................................................5
Core competencies of Slices........................................................................................................................7
Recommendations.......................................................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Introduction
PESTLE analysis of Slices
The PESTLE analysis would highlight the impact of the macro environmental factors on the
operational activities of the organization. It would help the organization to understand and
develop strategies to overcome those problems in an effective manner.
Political Factor:
As per Felix, et. al., (2017), the political factors involved the rules and regulations defined by the
regulatory authorities and government interference in executing the functional and operational
activities of the organization. There are many formalities and guidelines defined by authorities
like food and drug administration, tax reforms and public health policies. Slices would require
abiding by all the policies in order to perform their activities so that they can run their business in
an efficient manner
Economic Factors:
The economic factors refer to the economic changes happening in Dubai affecting the sales
revenue and profitability of Slices. It is important that the economic conditions need to be stable
or growing for better sales revenue and profits. If the economic conditions are unstable or low
then there could be the decline in the number of customers visiting the outlet.
Social Factors:
The social factors refer to social conditions prevailing in the country. It is possible that the
customers could react in a positive manner to the new and healthy product range provided by
Slices. The income level, the wealth gap, and increasing cultural diversity would either support
or limit the business opportunities for Slices.
Technological Factors:
The technological factors refer to the adaptation of the improving technologies for streamlining
the operational activities and enhancing the productivity and performance of the organization.
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Slices need to implement the best available technologies affordable as per their capacity to
improve their production and other operational activities like logistics of supply chain
management process of the procuring raw material.
Legal Factors:
The legal factors refer to different laws and guidelines imposed on the organization by the
regulatory authorities in the country. Slices would require abiding by the health and safety
measures at the restaurant, minimum wages defined by the authorities, and laws imposed by the
animal Welfare regulation and authorities in Dubai.
Environmental factors:
The environmental factors refer to environmental regulations and concerns which are important
for the organizations to abide by in order to execute their operational activities (Zhang, 2017).
There is a lot of awareness about environment and Slices is already in the position of using
organic material for production purpose.
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Five Forces analysis
The five forces model refers to external factors impacting the overall business and operational
strategies of the organization.
Competitive Rivalry or competition from existing competitors:
The competitive rivalry refers to current competitors prevailing in the market affecting the
number of customers visiting the restaurant. Slices would encounter tough competition from
large retail food chains like McDonalds and KFC as well as regional or domestic or local small
chain restaurants operating in the locality. They need to focus on improving the quality of the
products and marketing strategies of the organization to ensure that they retain the better position
in the market (Kerzner, et. al., 2017)
Bargaining power of customers:
The bargaining power of the customers refers to the demand and preferences of the customers to
visit a restaurant. If there are large numbers of restaurants providing the same product than the
customer has the option to visit any of them. Slices focus on providing healthy foods and have
less competition but the customers have the bargaining power to choose any local or retail food
chain as an option.
Bargaining power of suppliers:
The suppliers enjoy high bargaining power when there are limited numbers of suppliers in the
market providing the raw material to the respective organizations. Slices focus on maintaining
the good relationship with all their suppliers and ensure that they have limited bargaining power
in their case.
The threat of substitution:
There is a threat of substitution for organizations when the customer has the option of switching
their preferences to other products which could be cheaper in cost. Slices don’t have the threat of
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substitution in case of healthy foods but still, the change in the customer’s perception towards
large retail outlet’s junk food could impose the threat to their business
The threat of New Entry:
The threat of new entry refers to new organizations adopting the same strategies in the business
sector and posing the threat of increasing competition. Slices use innovative strategies and
unique product line of health and nutrition based food products to be sold in their restaurant and
has the limited number of players in this sector. According to Ottman (2017), there are less entry
and exit barriers in the sector imposing the threat of new entry.
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Core competencies of Slices
The core competencies of Slices are its unique products which include healthy food products and
dishes, their management strategies and expertise, providing high-quality customer service to the
customer, promotion of healthy community, and maintaining effective relationships with their
suppliers or vendors (Espinoza and Ukleja 2016). This indicates that the organization is focusing
on conducting healthy drives for the promotion of healthy lifestyle at affordable prices to the
people. The adoption of new advanced technology provides a competitive advantage to the
organization to maintain the good position in the market
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Recommendations
• Slices could promote their initiatives through various marketing and promotional strategies in
order to make their presence feel to the customers.
• They could focus on retail outlet business and catering business simultaneously in order to
gain higher market position.
• They could focus on establishing tie-ups with schools and colleges in order to encourage the
promotion of healthy habits.
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Conclusion
There are lots of opportunities for Slices in Dubai to establish new outlets and expand their
operational and business activities in different cities of Dubai. They could explore better business
opportunities across the globe internationally in different countries thereby promoting their
concept of healthy foods and nutritional products to the people in the community.
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References
 Espinoza, C. and Ukleja, M., 2016. Managing the Millennials: Discover the core competencies
for managing today's workforce. John Wiley & Sons.
 Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media marketing:
A holistic framework. Journal of Business Research, 70, pp.118-126.
 Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons..
 Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
 Zhang, D., 2017. Porter’s Five Forces Analysis and Value Chain Analysis of AUX Air-
conditioning Co., Ltd. DEStech Transactions on Social Science, Education and Human Science,
(icsste).
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