External and Internal Analysis of Tung Lok Restaurant

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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1. External factors of Tung Lok restaurant
1.1 Porters 5
Figure 1: Porter’s five force analysis
(Source: Kolios & Read, 2013)
1.1.1 Competitive rivalry
The organization, Tung Lok , faces a high competitive rivalry from the different firms
that operates in the regions. However, the major competitor of the business is Moi Lum
Restaurant Ptd, which generates more than $373.6K as its revenue. The tough competition that
is being faced by the organization in the market has helped the same in bringing forth different
levels of modification to gain a competitive edge in the market.
1.1.2 Bargaining power of the customers
The bargaining power of the customers of the organization is dependent on the high
availability of the substitute products in the market. The high availability of the substitute
seafood providers creates a tough competition in the Singaporean markets. The identification of

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the different substitute products and enhancing the quality of the product of the business will be
helping the same to bring in enhancements in the market situation.
1.1.3 Bargaining power of suppliers
The bargaining power of the suppliers of the business is based on the large number of
suppliers of the organization. The suppliers of the business help the same in facilitating the
smooth performance of the business in the international markets.
1.1.4 Threats of substitutes
The organization suffers from a high performance- to- cost ratio as the expenses and the
investments that were made by the organization is comparatively higher than the output of the
same while operating in the Singaporean markets (Tunglok.com., 2018). The differences in the
ratio and the units have affected the smooth performance of the business due to lack of
motivation and the lower retention of the workforce, thereby affecting the productivity of the
same.
1.1.5 Threat of new entrants
The high cost of brand development has affected the functioning of the business in the
markets. On the other hand, the new entrants in the market poses a serious threat to the
expansion of the units of the organization in the Singaporean markets. It has affected the
productivity of the organization in the market.
1.2 PESTLE analysis of the organization
Elements Analysis
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