Business Strategy Report: Veeraswamy Restaurant Analysis and Plan

This report provides a comprehensive analysis of the business strategy employed by Veeraswamy restaurant, a long-standing Indian establishment in the UK. The report begins with an introduction to business strategy, setting the stage for an examination of Veeraswamy's operational approach. It then delves into a PESTLE analysis to assess the impact of political, economic, social, technological, legal, and environmental factors on the restaurant. The report further analyzes the internal environment using SWOT and VRIO frameworks to evaluate strengths, weaknesses, opportunities, threats, and the firm's resources and capabilities. Porter's Five Forces model is applied to assess the competitive landscape, followed by a discussion of strategic management theories and the development of a strategic plan with tactical priorities. The analysis provides insights into the restaurant's market position, competitive advantages, and recommendations for future strategic decisions. The report is concluded with a summary of findings and a list of references.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of macro environment and their impact on business..............................................1
M1 Critically evaluate macro environments for strategic management decision.......................3
TASK 2............................................................................................................................................4
P2 Internal environment and capabilities of selected organisation.............................................4
M2 Critically analysis the internal environments for strength and weakness.............................6
TASK 3............................................................................................................................................6
P3 Porter's five force model of selected business and competitors.............................................6
M3 Appropriate strategies to improve competitive edge and market position...........................8
TASK 4............................................................................................................................................8
P4 Range of theories, concepts and models for selected organisation........................................8
M4 Strategic management plan and tactical priorities..............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is a long term plan of action designed to accomplish specific goal or set
goals or objectives. This strategy is prepare by the management for strengthening the efficiency
of a business. It states how business should be operated to obtain set goals. In simple words, it is
defined as the accumulation of all decision that taken by the business to achieve its business
goals and assured a competitive position at the market place (Grayson and Hodges, 2017). This
reports based on the Veeraswamy which is an Indian restaurant but established in UK. This
restaurant was opened in 1926 by Edward Palmer. It is one of the oldest Indian restaurant in
London which is served different dishes of Punjab, Lucknow, Kashmir and Goa. In this report
contains macro environment and inform strategic decision, analysing impact of macro
environments. Along with analysis of internal environment to identify all the abilities of
business, apply porters five forces model to analysis market position. In addition, apply effective
strategies and develop a business plan where consider all the strategies for achieve all the
objectives.
TASK 1
P1 Analysis of macro environment and their impact on business
PESTLE analysis: It is a framework tool which is applied by the business to observe the
macro environment factors that impact on the efficiency business. PESTLE analysis is essential
for any business who wants to start new business and tap into other countries. This tool applied
on the Veeraswamy restaurant to identify all the factors that impact and influence the business.
Political: The political factors has great impact on the restaurant as per the government
rules & regulations. There are some instructions and guidelines set by the government for
restaurant like tax reform or health and safety guidelines. These regulations must follow by the
business otherwise it impact in negative manner. Along with Veeraswamy aware for the health &
food safety so for this purchasing, cooking and packing to delivery food products (Habib and
Hasan, 2017). Positive: Political stability impact in positive manner on restaurant and they easily
conduct all the activities. Along with no changes in rules & regulations and reduce
taxation services due to changes in political system impact on Veeraswamy positively
and support in profitability.
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 Negative: Veeraswamy fears a no deal Brexit that impact negatively because it impact on
the political condition and government design new rules & regulation for food industry.
These regulation impact on business in direct manner.
Economical: There are various economic factors that impact on the position of
Veeraswamy like minimum wages and health economy. Along with UK government fiscal
policies impact on business position. Positive: Veeraswamy wants to expand their business activities at broad manner so for
this require to take loan from the bank and other institutions. Low interest rate help to
business and take loan easily that shows impact positively (Hart, Sharma and Halme,
2016).
 Negative: The changes in the inflation rate affect the Veeraswamy restaurant as the prices
of raw material can be enhanced so restaurant increase price of food items. It shows
negative impact on business because customer does not arrive in expensive restaurants.
Social: There are consisting of those elements that impact in direct manner such as
values, opinion, population, attitude etc. In context of UK, social condition are fluctuated as per
the taste & preferences of people. The main key factors are education level, social awareness,
income level of people and many others. Positive: In present time people become health conscious and Veeraswamy restaurant
offer healthy food to people and aware for the high fat food. So they are serving food as
per the choice of customer that satisfy them and impact on business in positive manner.
 Negative: Due to changes in perception of customer they like to eat healthy food and
prefer to stay in home and cook food. As a result it shows negatively on the position of
Veeraswamy.
Technological: Many famous restaurants utilise television and IT technology for
promotion perspective. To present advertise on TV channel is costly so they are using own
Website where provide all detail information about the business. Positive: Due to increase advanced technology business start the mobile delivery of the
food products at the door steps that helps to increase profitability of Veeraswamy (Hill,
2017).
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 Negative: To manage digital technology require to invest huge cost and need expertise
who is easily handle this technology. As a result business require more amount that
impact negatively.
Legal: This are different agencies of UK government that are working for the effective
supply and quality of food items. In the regard apply specific rules and regulations to control the
supply and provision of food products. Positive: All the employment, food & safety laws follow by the restaurant and provide
effective services to customer that helps to increase profitability (Johnson, 2016).
 Negative: When restaurant does not offer same wages to staff members so it create
problems in between employer and staff members and shows negatively.
Environmental: It refers various norms and standards of environment that can effect on
the profitability of Veeraswamy restaurant at UK market place. There are consisting of weather,
regulations related to pollution, waste management etc. Positive: The government have made different rules & regulations to keep all food items
safe and fresh. Additionally, handle all the problems effectively that impact in positive
manner.
 Negative: The changes into climate effect on the food items which is not good for the
Veeraswamy restaurant.
M1 Critically evaluate macro environments for strategic management decision
To operate different business activities require to focus on the external factors that
influence business in positive as well as negative manner. It supports to restaurants to understand
actual position and competitive market. Veeraswamy Restaurant is oldest Indian restaurant
which is related food industry and use various factors to cooking food. The administration of
Veeraswamy design strategies in which tackle different problems to increase profitability. The
changes in political activity, decrease interest rates impact in business in positive as well as
negative manner. Through analysis identify some factors that direct impact on the position of
business like brand image, market share and many others (Kono, 2016).
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TASK 2
P2 Internal environment and capabilities of selected organisation
Internal Environment: It is a accumulation of those factors which are available in the
business and essential to be concentrated by managers as well as top authority. To analysis the
internal environment apply the SWOT analysis which is defined about strength and weakness
(Lai, Melloni and Stacchezzini, 2016).
SWOT Analysis: It is an internal analysis tool that direct a manager to evaluate the
strength, weakness, opportunity and threat of the business which are defined below:
Strengths Weaknesses
 It is the oldest Indian restaurant in UK
where provide effective services to all
customer.
 There are providing services by well
trained staff members and free home
delivery services.
 Lack of relationship building with staff
members, suppliers and customers.
 The restaurant invest amount for
research and development activities but
results get in lack of sources.
Opportunities Threats
 The Veeraswamy follow all the current
trends of food sector that helps to
attract customer and increase
profitability.
 Polite behaviour and mainly focus on
customer requirement.
 The competitor of business has been
locate of near business that become
threat for business.
 Due to rising price of ingredients so
restaurant increase price of food items
that impact on customer in negative
manner.
VRIO analysis: It is a business analysis framework that supports business in analysis of
different resources and carry out all competitive advantages. For strategic planning of
Veeraswamy restaurant and identify the capabilities apply the VRIO model with resources that
provides all benefits for longer period of time (Linder and Williander, 2017). These are defined
below:
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Resources or
capabilities
Valuable Rare Imitable Organised
Advanced
technology
✔ ✘ ✘ ✘
Skilled
employees
✔ ✔ ✘ ✘
Market Share ✔ ✔ ✔ ✘
Brand Image ✔ ✔ ✔ ✔
 Valuable: There are identified four valuable items of Veeraswamy restaurant advanced
technology, skilled staff members, market share and brand image. These mentioned all
aspects are valuables because of supports business to operate different business activities
in systematic way. For all the organisation it is required to formulation activities can be
presented efficiently.
 Rare: Advanced technology is not rare for Veeraswamy restaurant because it is easily
applied by any business. Other aspects of skilled staff members is rare because for
operational activities require to provide training but in Veeraswamy already have skilled
employees. Market share is rare because restaurant cover large market place for customer
and brand image of business is rare because it has been because restaurant offer safe and
good quality food with effective services.
 Imitable: Skill staff members are not imitable due to make efforts to hire educated and
trained people and offer high salary them. While Market share and brand image is
imitable because a business make efforts to maintain both things in restaurant for longer
period of time. A small mistake can harm quality of food and customer perception
(Morden, 2016).
 Organised: Market share of Veeraswamy is not organised because other restaurant
decrease price of food items and attract people for the business and cover large market
area. On the other side Brand image is organised because to achieve good image in the
market any business require more time. It is not easy to set up in mind of customer and
other entities it is not possible to harm its image.
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M2 Critically analysis the internal environments for strength and weakness
The internal environment of any business based on the internal activities at conduct by
business own level and control as per the situation. There are consisting of different factors that
strongly impact on the ability of business decision. In Veeraswamy apply SWOT analysis that
helps to identify strength, weakness, opportunity and threat. To understand the capabilities of
business apply the VRIO model where collect different aspects like skilled staff members,
advanced technology, brand image and market share for innovative organisational culture and
capability for growing and importance for restaurants (Müller, Buliga and Voigt, 2018).
TASK 3
P3 Porter's five force model of selected business and competitors
Porter's Five Forces Model:- This model was introduced by Michael E Porter in 1979.
It is a simple framework to identify and analyse the five competitive forces of every industry
through SWOT analysis. The Veeraswamy restaurant uses this analysis tool to determine the
intensity of competition and its profitability level. It is broadly used model by the business that
refers to five important factors the drive firm's competitive position within an entity. These five
forces analysis are described as under:-
Competitive rivalry:- It is the major force determinant of identifying and analysing the
competitive and profitability of organisation. An entity must be aware of it's competitor's
marketing strategies and pricing as to take best move in its comparison. The Veeraswamy
restaurant have competition through Darjeeling express, Taste of Nawab and Dishoom Carnaby.
The business apply this force of competitive rivalry to predict their competitor's strategy of
increasing competition and determine the corrective measures related to defeat them.
Threat of new entrants:- This force can be referred as risk in stability of business with
the entrance of new firms to compete for same market share and profits. It is essential for
existing organisation to create high barriers for new entrants. The manager of Veeraswamy
restaurant have strong and durable barriers to entry, to preserve favourable position. It helps
business to maintain their speciality with strength and implement opportunity in best way, which
helps to compete with new entries (Reason, Løvlie and Flu, 2015).
Threat of Substitution:- This force creates threats for suppliers as the buyers can easily
switch to substitute product available in market which vary in cost. It reduces the power of
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suppliers and attractiveness of market. The manager of Veeraswamy restaurant focus on
enterprise, customer services and add value to company for distinguishing it from another. It also
leads to focus on cost control with good quality to maintain its market attractiveness.
Buyer power:- It is the force which describes that buyers are king, as it is easy for them
to bargain and down the price of product. In this force the savvy buyers are considered most
important as they have more powers. The Veeraswamy restaurant use this force to maintain its
existing customers who purchase products in bulk, on the dictate terms, set prices, etc., to
increase sales (Thompson, Strickland and Gamble, 2015).
Supplier power:- This force determines many sellers in the market force to reduce cost
according to the market, whereas few sellers leads to have high cost. The Veeraswamy restaurant
imply this force as an assessment to identify prices according to its competitors suppliers, which
creates a great impact on profitability. It is driven by the company for analysing number of
suppliers, uniqueness of product, size and strength of supplier and cost of switching from one
supplier to another.
There are conducting Porters five force model of competitors of Veeraswamy who is
Darjeeling express such as:
Competitive rivalry:- It is a measure of extent of competition among existing
organisations. The major competitors of the Darjeeling Express are as follows- Veeraswamy
restaurant, Pure Indian Cooking and Dhaba@49. This organisation use this force to create high
competition through advertising, price wars, etc. to defeat its competitors for its stability of
position.
Threat of new entrants:- When new business tap into UK market where already primary
company conduct their business activities effectively so new business create threats for existing
restaurants. In context of Food industry, it is critical for new restaurants to enter easily at UK
market because for this require to more funds which is not arranged by the every one. For
Dazzling express threat of new entrants is low (Uhl and Gollenia, 2016).
Threat of Substitution:- Substitutes are those products which are products that are
secondary form of the actual product and fulfil the requirement of customers. Threat of substitute
is high because many Indian restaurants are offering same dish to people because of high
availability of similar resources. The Dazzling express face the problem of the threat of
substitutes in high manner.
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Bargaining power of Buyer :- All the business industries conduct different activities to
fulfil the requirement of customers. For this analysed the bargaining powers of buyers that they
posses during negotiation with entity in case of prices of valuables and offered in market by the
firm. In food sector more people who like to Indian food so their is huge chances of bargaining
power of buyer. The customer of Dazzling express restaurants have many powers to force to
restaurants to cut down prices in particular manner. Additionally, the switching cost of customers
is low substitute for Dazzling express restaurants due to different taste of food.
Bargaining power of Supplier :- Suppliers are those person who provides labours, raw
material and components to the firm. In context of Food industry the suppliers are supply
different ingredients which is utilised for the food items. Dazzling express is a repudiate
restaurant who have many suppliers so it is low for business (Ward, 2016).
As per the above analysis it is saying that Porters five forces model use by business to
analysing the competitive level. It is identified that Dazzling express effectively conduct all the
business activities in compare of the Veeraswamy Restaurant because it is not applying effective
promotional strategies to attract customer. Dazzling express effectively conduct all the business
activities dealing with the suppliers and buyers.
M3 Appropriate strategies to improve competitive edge and market position
As per the evaluation of porters five forces model of both business it is understanding
that rivalry company more strong as compare with Veeraswamy. The strategic planning manager
of restaurant require to more attention at market place to become more popular and sustainable in
food market industry. With this purpose marketers selected business to formulate extensive
together with ongoing market research for recognising all key trends with innovative
technologies in the food industry. It is advantageous for business entity to introduce
differentiated and and tasty food with innovative design to increase market position with strong
competition.
TASK 4
P4 Range of theories, concepts and models for selected organisation
Strategies are defined as action that taken by any business to analysis the performance
and reduce weakness of business in order to accomplish set goals & objectives. After evaluation
macro environment, internal and competitive environment apply different strategies to overcome
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from the threats that impact on the performance of Veeraswamy Restaurant. These strategies are
defined below:
Business Operations: In business operation include various activities that conduct by
business on daily basis and enhance the value of restaurant to generated profitability. These
activities can help to modify to generate enough resources. This strategy apply in the
Veeraswamy Restaurant to overcome from the threat of lower profitability. Due to enter new
competitors people attract for new restaurant that impact on the business in negative manner. So
for this apply the business operation to keep it running and earning money is referred to jointly.
Marketing: It is a important strategy for any business in which focus on the allocation of
funds and according to that proper utilisation all the resources effectively. To become brand
image at UK market place require to focus on all the factors that impact on the performance in
negative manner. To connect with customer require to conduct research and collect information
about the customer and according to that apply sufficient modification in restaurant (Weber,
Geneste and Connell, 2015).
Finance: The restaurant wants to expand business at large level so for this require to fund
which is arrange from the different sources such as Bank loan & Sale of assets. For the bank loan
require to take approval from the higher authorities.
Marketing mix: It is a effective strategy that conduct by an organisation to set up new
business. This strategy mainly focus on the marketing plan that prepare by business for further
activities and according to that take future steps. The strategy of marketing mix applied in
Veeraswamy Restaurant in order to fulfil the all requirements of business and achieve all set
goals. There are consisting of different aspects of this strategy:
Product: The restaurant is selling different Indian food dishes to attract customer. For
this require to present dishes in stylish manner. It must be different from other restaurant who
conduct activities in this manner.
Price: To operate activities require to set reasonable price of every food item in the menu
card to attract customer for the arriving in the restaurant again. Every food item has been
different price that satisfy the customer and easily arrive in the restaurant.
Place: The restaurant has been established in crowed areas where mostly people arrive
and conduct activities of business effectively.
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Promotion: This strategy is applied by the Veeraswamy Restaurant because it helps to
increase awareness among the customer in regard the restaurant for the food products & services.
It supports to meet maximum number of customers and generate higher profitability.
SIPOC diagram: It is a tool which is utilised by a team to analysing all relevant
elements that impact on the procedure of improvement project before starting of business
activities. This strategy helpful to present critical project activities that may not be well scoped
and typically employed at the measure phase of six sigma DMAIC. This strategy contains
information of suppliers, inputs, processes, outputs and customers. In these sections consist of all
detailed information about company and take further steps (Welford, 2016).
Human Resource: To operate business activities require to skilled staff members who
have knowledge about the food industry and cook & serve food effectively. For this human
resource department can recruit staff member on experience basis. As per the role provide the
training them for the job role and understand organisational goals & objectives.
Quality Control: To control the quality of business require to focus on technology that
control all the resources as per the requirement. To expand business at broad level require to
apply effective technology that control all the activities in regard of food and according to that
take effective decision.
Justification: From the above business strategies analysis that Veeraswamy Restaurant
must apply quality control strategy where use advance technology and track every step.
According to this strategy a manager take right decision as per the demand of customer. It helps
to generate more profitability in broad manner and meet with the objectives and goals.
M4 Strategic management plan and tactical priorities
Strategic management plan is detailed plan in which define all the information in regard
of the business like vision, mission, tactics, objectives, strategies etc. There is recommended to
apply quality control activities which is mainly based on the advancement of technology to
control quality effectively. There is produced strategic management plan for Veeraswamy
Restaurant such as:
 Objective: The main objective of business to expand at broad level and increase sales by
25% in a year.
 Vision: The vision of restaurant to set up as brand in Indian food in UK and become
leading restaurant in UK.
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 Mission: The mission statement of Veeraswamy is to provide customize dishes to Indian
and other people as per the taste and cover large market area for obtaining maximum
customer loyalty.
 STP: It is a effective strategy which is applied by business to introduce new product in
the market and applied by business. It is categorised into three manner such as:
 Segmentation: In this strategy Veeraswamy will classified market into different
segments after that select one of them to introduce new food item in the market. Such as,
the selected restaurant of London apply this strategy and select that segment in which
launch new dish.
 Targeting: It is a procedure of recognising all target customer which is called as
targeting. For the Veeraswamy Restaurant target to Indian people who wants to eat
vegetarian food in UK.
 Positioning: According to process of business try to utilise prepare effective procedure
for restaurant in order to attract customers and set a effective brand image in the mind of
customer. Veeraswamy wants to use effective strategy for promotion in which distribute
free sample and aware clients for the dishes (Whittle and Myrick, 2016).
 Strategic plan evaluation: To analysis the strategic plan require to apply key
performance indicator which is a measurement tool. It supports a restaurant to set
effective performance with the help of two indicators like financial indicator for project
success in financial manner and other non financial indicator apply to measure market
share, personnel turn over ratio and eliminating wastages. Through this tool compare in
between performance and set effective outcomes.
CONCLUSION
As per the above report it has been articulated that to move any business organisation
require to develop different strategies that helps to maintain relation in various activities. To
analysis the macro environment apply the PESTLE tool that presents all external factors that
impact on business in positive and negative manner. For internal environment apply SWOT
analysis to identify strength, weakness, opportunity and threats. To analysis competitive market
place conduct porters five forces model of select business and competitors and getting that
competitors position is better than into business.
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