Report on Business Decision-Making for Balti Palace Restaurant

This report analyzes the business decisions of Balti Palace restaurant, focusing on its performance and growth within the competitive London market. The analysis includes an examination of sales and profit trends, utilizing graphical representations to illustrate key findings. The report highlights the impact of competitive pressures and the implementation of strategic initiatives, such as menu expansions and service enhancements, on the restaurant's financial outcomes. It also explores future projections for sales and profitability, considering factors like changing customer preferences, increased operational costs, and the need for marketing investments. The conclusion recommends strategies to enhance sales and maintain a competitive edge in the restaurant industry. Key elements of the report include the use of trend line analysis and an assessment of the impact of external factors on the business's performance.

Business decision-making

Introduction
• London is known for the combination of both amazing culture and
commerce activities. Hence, such tourism trend significantly
contributes in the growth of firms operating in travel and tourism
sector.
• Considering such trend, business entity of Balti Palace is planning to
open second restaurant unit in London.

Column graph

Bar Graph

Scatter diagram

Contd..

Interpretation
• Above graph clearly highlighted that till the end of year 2010, Balti
Palace restaurant shows high increase in sales due to lack of
competitive threats and new offerings introduced by the restaurant. In
subsequent year 2011, it suddenly dropped to £1050 because of
change in people preferences and coming of new restaurants who
offers the services at competitive rates.
• Thereafter, sales depicts a continuous increase because of improving
lifestyle, availability of more discretionary spending to the customers,
in turn, people prefer visiting restaurants and enjoy great luxury
lifestyle. In line with this, profitability shows a similar trend as till
2010, it continuously increases and then, fell.

Contd…
• Since 2011, profit came on its right track which is mainly driven by
the cost-optimization effort taken by the entity, increased sales and
control over wasteful spending. The results clearly summarized that
Balti Palace had made good decisions such as introducing new cuisine
in its menu, various facilities such as free of cost wi-fi, unique
infrastructure and others that contributed towards growth in sales &
profit.

Trend line

Interpretation
• The results of trend line evaluation present that in the near future, both
sales and profit margin of the restaurant unit will increase
significantly. It is expected because of change in the preferences,
expectations and lifestyle of customers now increases the demand for
the restaurant industry. Now, people prefer tasting different cuisine
and visiting restaurants to satisfy their demand.

Contd…
• However, at the same time, tough competitive rivalries may bring
significant pressure to the Balti Palace sales. On the other side, a
profitability trend line show a flattened growth in forthcoming years,
the reason behind this is currently cost pressure is rising for the
restaurants.
• Moreover, increasing fuel charges expects to cut down its margin.
Despite this, in order to beat the competitors, it may require more
investment in marketing activities, in turn, cost will be increase and
profit will not drive a good growth.

Conclusion
• The findings recommends that Balti Palace requires to introduce more
offerings and items in its menu so as to bring massive growth in sales
volume by serving more people.