Strategic Consultancy Report on Drink, Shop & Do

This strategic consultancy report provides a comprehensive situational analysis and critical review of strategic choices for Drink, Shop & Do, a fusion of cafe, design store, and bar in London. It also discusses entrepreneurial strategies and provides recommendations for maximizing growth and development.

Strategic consultancy
report

Table of Contents
INTRODUCTION...........................................................................................................................1
Comprehensive Situational Analysis...............................................................................................1
Critical Review of Strategic Choices...............................................................................................3
Entrepreneurial Strategies...........................................................................................................4
Recommendation.............................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurship is termed as a set of activities that include planning, organising and
managing new business venture with an aim to serve social issues and provide economic benefit
to country in order to generate significant growth. In this creation of a new enterprise while
bearing risk is been undertaken by an entrepreneur who aim towards embracing every challenge
for development and growth of new set up (Cesaroni, Sentuti and Cubico, 2020). There are
certain forms of characteristics of entrepreneurship that include economic activity, creativity and
innovation, profit and risk bearing. All these characteristics are being undertaken by an
entrepreneur with the help of different entrepreneurship skills like personal skills, technical skills
and business management skills. This has been identified that entrepreneur take advantage of
entrepreneurial strategy in the process of creating new venture in order to satisfy individual
customers market and society with unique and innovative offering.
Present report has been made on “Drink, Shop & Do”, this entity is mainly operate their
functioning as a fusion of cafe, design store and bar which is operating their business functions
in London. In these report formative discussions has been made on comprehensive situation
analysis and critical review of strategic choices (Leppert, 2011). In addition with this report
include implementation of strategy and wide range of entrepreneurship and intrapreneurial
strategies. Lastly, report includes recommendation for organisation through which they can
maximize their growth and development in respective market segment.
Comprehensive Situational Analysis
Strategic capability is defined as abilities of organisation to ensure sustainability for long
period of time in marketplace among extensive competition. In this with the implementation of
efficient strategies and adoption of effective resources lead entity to gain significant success and
growth in respective marketplace (De Bernardi and Azucar, 2020). This has been identified that
with their wide range of product and services Drink, Shop & Do emerged out as a well known
brand name in food and beverage mainly in cafe sector. This is mainly due to word of mouth
advertising which is being done by consumers that they have experienced in entity products and
services. In this it is important for respective organisation to evaluate their resources along with
competencies in order to make sure that their product and services are successfully satisfying
consumer needs according to latest trends and demand. In this with the application of analytical
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model entity can effectively able to gain knowledge related to their competence in respective
market segment.
Pestle analysis is a strategic framework through which an organisation can effectively able
to evaluate factors that are prevailing in external environment and can have significant impact
upon business functions (Ganguly, 2020). It allows entity to ensure competitive advantage in
respective market segment by taking advantage of opportunities while overcoming threats in an
effective manner. Thus, it makes Drink, Shop & Do to undertake pestle analysis in order to
identify factors that are prevailing in external environment and have capability to affect
operations of entity. It further allow organisation to develop strategies and measures to overcome
them in well effective manner and ensure more growth and competitive edge.
Political:
This factor of pestle analysis include elements related to employment law, trade control,
tariff, bureaucracy, antitrust law, political stability, tax policy, labour law, trade restrictions and
more. It is essential for an organisation to evaluate political stability of country in order to gain
significant opportunities (Oraman, Basaran and Abdikoglu, 2018). In this it is essential for
Drink, Shop & Do to evaluate importance of this factor. It has been evaluated that United
Kingdom is having a stable government that encourage entrepreneurship at great extent. Along
with this it has been evaluated that political laws and system of United Kingdom is far different
from other countries (Racz and et. al., 2018). In this entity is required to effectively understand
political stability and instability factors in order to ensure prominent growth. However, it has
been identified that United Kingdom government offer many drives and measures to respective
industrial sector in terms with flexibility in policy towards hiring overseas workers, corporation
tax and more. With the assistance of all these measures respective company Drink, Shop & Do
can gain maximum support from government to increase their profitability at great extent.
Economical:
This is one of the most important factors of pestle analysis that effectively facilitate number
of economic opportunities for organisation. In this factors related to exchange rate, inflation,
taxes, demand and supply, interest rates etc are included. All these elements directly or indirectly
affect organisational investment and business transactions process (della Volpe, 2020). It has
been identified that United Kingdom offers stable economic condition to organisation but it is
important for Drink, Shop & Do to evaluate and examine brexit in order to gain more significant
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advantage by offering affordable and highly qualitative product and services to customers. In
addition to this, it has been evaluated that by evaluating economic aspects like average income of
individuals, inflation rate, economic health of country and unemployment figures Drink, Shop &
Do can effectively able to indentify favourableness of are, all these factors are having immense
capability of influence respective industrial sector. Thus, proper understanding of these facilitate
entity of face them with effective strategies and measures to ensure maximum effectiveness.
Social:
This aspect of pestle analysis include element related to employment level, age distribution,
education and career, population growth rate, income statistics, religious believes, cultural
environment etc (Chhabra and Kiran, 2015). In this has been evaluated that consumer taste and
preferences are changing in a dynamic manner, in this it is important for pestle analysis to
engage continuously in the process of market research in order to evaluate individuals and
identify their believes and perception towards particular product and services in order to gain
maximum benefit and profitability.
Technological:
It include element related to innovation, automation, research and development and more.
This has been evaluated that technology is changing at constant and faster trade that bring
aggressive competition in respective industrial sector. In order to ensure maximum profitability
pestle analysis is required to undertake advantage of United Kingdom highly technological
advanced environment (Cesaroni, Sentuti and Cubico, 2020). In addition to this entity is
required to regularly innovate and offer unique product and services to customers in order to
appeal attention of large number of customers. In this entity can bring emerging as well as latest
food and beverage production machines in order to deliver faster services to customers and
ensure their maximum satisfaction. In this Drink, Shop & Do by undertaking use of cost efficient
technological measures can disrupt market and can effectively reach out to maximum number of
customers. Technology create number of opportunities for Drink, Shop & Do through which they
can maximise their business operations reach.
Legal:
The Food & Beverage Sector is run under the jurisdiction of a number of laws and
legislations such as health and safety norms, alcohol license, Food Hygiene Certificate,
Restaurant insurance, Food Safety (General Food Hygiene) Regulations etc. These need to be
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taken into account by Drink, Shop & Do so as to ensure that it operates within the confines of
stipulated legal regulations. Further, it is essential that the cafe management ensures that none of
the harmful ingredients are used while making any of the food & beverage items.
Environmental:
It is essential for each and every organisation operating their services in any sector to abide
environmental rules and regulations (García Martínez, 2016). In this it is essential for Drink,
Shop & Do to abide environmental laws within the geographical boundaries of United as to show
positive concern towards environment. In relation with this Drink, Shop & Do is to ensure that
their activities does not cause harm to environment in any way (Mezzanatto-McNair, 2019).
With the help of this firm can allow themselves to gain positive support and appreciation from
government as well as customers.
Porter Five Force Analysis
Threat of Substitutes:
It has been evaluated that, Drink, Shop & Do face low level of threat of substitutes as it
has been evaluated that company regularly keeps of innovative their products and services as to
provide unique offering to customers (Dobbs, 2014).
Bargaining Power of Buyer:
This has been identified due to presence of many leading and different types of
organisations in same industrial sector Drink, Shop & Do faces high level of bargaining power of
buyers as in these consumers are free to choose their host. In addition to this, UK government
have also provided 100% FDI in this industry (Yunna and Yisheng, 2014). To overcome this it is
essential for Drink, Shop & Do to undertake use of effective strategies and measures as to
provide affordable services and products to customers.
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Bargaining Power of Suppliers:
It has been determined that industry in which Drink, Shop & Do conduct their
organisational operations are mainly depend of agriculture products in order to undertake raw
materials. in addition to this it has been evaluated that large number of suppliers belong to low to
medium level who are having limited number of export facilities. Thus, it allows respective
entity to undertake advantage of moderate bargaining power of suppliers and establish long term
relationship with them.
Threat of New Entrants:
This has been identified that government of United Kingdom provides different types of
subsidies to entities to make their entry in this sector (Indiatsy, Bichanga and George, 2014).
This creates high level of threat of new entrant for Drink, Shop & Do. However, due to number
of barriers in this industry might affect new entrants. This creates opportunity for Drink, Shop &
Do through which they can attract large base of customers with high quality products and
services to ensure their long term loyalty.
Competitor Rivalry:
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Industry in which Drink, Shop & Do operate their functions sees high concentration and
aggressive level of competitive rivalry (Julita Julita, 2019). In this with the assistance of price
differentiation strategies respective entity can overcome high level of competitive rivalry.
Critical Review of Strategic Choices
Drink, Shop & Do is required to undertake use of efficient measures as well as strategies in
order to establish their brand name for long period of time in international market place and gain
more prominent growth. With the help of these strategies entity can not only able to maximize
their profitability at great extend but can also ensure your more competitive edge comparatively
to rivals and can overcome excessive competition force at global stage (Rangoni and Zeitlin
2020). Mentioned below there is some certain entrepreneurship and intrapreneurial strategies
defined with the execution of with respective organisation can gain significant growth.
Entrepreneurial Strategies
Effective Market Analysis:
This is one of the most essential entrepreneurial strategies with the application of which
Drink, Shop & Do can effectively able to conduct intensive market research and can identify
present trend and preferences of customers that are prevailing in marketplace. It further help
entity to gain knowledge related to emerging as well as latest consumer trends through which the
they can implement tools and techniques to fulfil consumer satisfaction according to their need.
Customer Orientation:
This strategy is an essential aspect with the implementation of which Drink; Shop & Do
can operate their function by having more emphasized on consumer preference (Iivonen, 2018).
This strategy allow organisation to have consumer orientation as main aspect that allows them to
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determine needs as well as wants of consumers in order to fulfil them in best effective manner.
Consumers are termed as king of a marketplace thus, orientation strategy effectively allow
respective organisation to ensure trust and satisfaction of customers for long period of time and
ensure entity sustainable growth in London, United Kingdom.
Intrapreneurial strategies
Innovation:
It has been identified that marketplace is full of dynamic factors that keeps on changing
on continuous manner (Costa, Antonio and Santos, 2020). This makes Drink, Shop & Do to
undertake the strategy of innovation in their product and services in order to overcome change in
cafe industry in best effective manner. Innovation effectively allow organisation to take use of
different tools as well as techniques through which they can stay one step ahead of their
competitors.
Business Objectives:
It is one of the most important aspects for any organisation. In context with present entity
Drink, Shop & Do are require to set specific targets and have business objectives in order to
accomplish them in time effective manner as to ensure more development and growth. Business
objectives encourage and facilitate entity daily basis activities towards more profitable
advantages.
Implementation of Strategy
There is different type of strategies and measures with the implementation of which
respective organisation can effectively able to accomplish their business objectives and goals.
These strategies and measure further facilities organisation to effectively satisfy customers needs
in a well defined manner and ensure long-term sustainability as well as profitability in respective
industrial sector.
 Drink, Shop & Do by implementing diversification as their long term strategy can
effectively able to develop product and services through which they can further serve
consumers needs as well as dynamic demands with innovative and unique offerings.
 It has been evaluated that it is essential for company to implement penetration pricing
strategy as to effectively offer high quality product and services to customers those who
belong from less income group. With the implementation of this strategy Drink, Shop &
Do can identify customers of this income group and fulfil their needs and demands in
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effective manner (Ramasubramanian, 2020). It further allows entity to gain a competitive
advantage, as it has been identified that large number of population in United Kingdom
mainly belongs to middle income group. Thus, with the help of the strategy entity can
serve large number of consumers needs that lead company to maximize their profitability
while having loyalty from customers for long period of time.
Recommendation
It has been evaluated that food and beverage industry is leading industrial sector in which
the number of organisations are performing their operations with distinctive product and services
and affordable price range with an aim to generate maximum profitability while satisfying needs
and demands of consumers. United Kingdom is having different type of organisations those who
conduct their operations in Cafe industrial sector and provide different type of services and
products to customers that create intense competition in this segment. In this it is essential for
Drink, Shop & Do to undertake advantage of different strategic tools, plans and techniques in
order to gain maximum market share holding while satisfying consumer needs in best effective
manner. In this it is recommended to respective organisation to effectively engage in the process
of research in the segment of technological aspect as it is one of the most effective way to which
entity conserve consumer satisfaction in a well defined manner and can further gain more
competitive edge among rival. With the help of this entity can adopt different type of Hi-Tech
technological system in organisational workplace structure through which they can innovate
product and services in a unique manner and can offer different offerings to customers
comparatively to any other organisation. It has been evaluated that in order to overcome
intensive competition in respective industrial sector in United Kingdom provinces present
organisation is required to undertake different type of measures which is further being
recommended:
Constant research into customer needs:
It has been evaluated that interest and opinion of customers and their lifestyle are
changing in a dynamic manner especially in United Kingdom. Thus, it is essential and
recommended to respective industry to effectively evaluate preferences and needs of consumers
in order to offer product and services as per according to their needs in order to retain them for
long period of time and provide maximum satisfaction accordingly. It is recommended to Drink,
Shop & Do to engage in constant research into customers needs as negligence of this can lead
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entity towards many disadvantages. With the help of constant research company can effectively
provide maximum satisfaction to customers and can further ensure high profitable advantage in
respective industrial segment.
Effective market examination:
Cafe industry is having different type of factors and elements that keep changing on
continuous manner. Thus, it is recommended to Drink, Shop & Do to gain extensive knowledge
of market segment in order to satisfy consumer needs and wants with transformed product and
services (Heijltjes, 2000). It further allows entity to overcome competition which is providing in
Cafe industrial segment. With the help of market examination respective entity can effectively
able to develop futuristic needs through which they can satisfy large number of competition
while ensuring long term sustainability.
Innovation:
It is one of the most important segments now a day through which respective organisation
can effectively able to overcome extensive range of competition. It has been evaluated that the
number of organisation performing their operations in Cafe industry and offer similar or different
kind of product and services to customers in affordable price range as to gain maximum
profitability. In order to overcome this Drink, Shop & Do with the help of innovation can bring
uniqueness in their product and services in cost effective manner through which they can not
only able to ensure maximum profitability but can also retain their customers for long period of
time. In addition with is it has been in elevated that innovation also allow respective organisation
to ensure long-term sustainability with maximum consumer satisfaction. This effectively lead
Drink, Shop & Do to gain more profitable advantages comparatively to rivals.
CONCLUSION
As per the above mentioned report it has been concluded entrepreneurial strategy acts as a
key to gain more competitive edge in respective market place in order to stay one step ahead
from other competitors in respective industrial sector. For this, it is essential for organisation to
evaluate different types of factors that are prevailing in environment as to develop strategies
against them in order to ensure maximum advantages. For this Pestle analysis proves to be
effective. In addition to this, with the assistance of entrepreneurship and intrapreneurial strategies
maximum advantages can be effectively ensured.
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