DBM704 Strategic Business Planning Report: Wannaburger Analysis

This report is a strategic business planning analysis of Wannaburger, a restaurant established in Edinburgh. The report begins with an overview of the business, including its mission, vision, and SMART objectives aimed at increasing sales, customer satisfaction, and environmental parameters. It then delves into critical success factors like customer range, nutrition, affordability, and availability. The report further examines Wannaburger's legal structure, offerings, and the purpose of the business plan. Part 2 of the report provides an external and internal environment analysis, including industry characteristics, trends, key competitors, and the formulation of a competitive strategy. It employs PESTEL and Porter's Five Forces analyses to assess the political, economic, socio-cultural, technological, environmental, and legal factors, as well as competitive rivalry, bargaining power of customers and suppliers, the threat of substitutes, and new entrants. The analysis provides a comprehensive understanding of the challenges and opportunities facing Wannaburger within its competitive landscape.

NZALI DBM704STRATEGIC BUSINESS PLANNING
PAPER: DBM704
Assessment Task Cover Sheet
Learner Name: ___________Wanita Wonglakon____________________________
Paper Number: ___________________DBM 704____________________________
Assessment Number: _____________1___________________________________
Date Due: ________15 June 2018________________________________________
Date Received by lecturer: _15.06.18___________________________________
Attempt 2 25 July 2018 Attempt 3 Date Submitted
Attempt 2 25 July 2018 Attempt 3 Date Returned
Lecturer: ____________Zara Khan___________________________________________
Learner Declaration:
I ____Wanita Wonglakon________________________ (learner’s name) declare that the work
in the attached assessment is exclusively my own and that all sources of information used have
been acknowledged.
I give my consent for a copy of this original assessment to be retained by the New Zealand
Academic and Learning Institute and shared with appropriate external and authorised parties
exclusively for moderation purposes to support my ongoing learning.
I understand I will be provided with a copy of this assessment with feedback to support my
ongoing learning within 15 working days of assessment submission.
I understand the lecturer named abovetakes no responsibility for lost assessments and that I
am advised to appropriately hand in assessments and retain a copy of assessment work.
Learner’s Signature: _____Wanita Wonglakon_________ Date: _13 June 2018__________
Note: Assessments handed in after the due date may be penalised, see course regulations in
Student Information Pack
1

Part 1
Background of Business
Wannaburger is one of the best restaurants that is situated in High Street in Edinburgh in the
year 2004. The name of restaurant was originally named “Relish”, however after a year name
was changed to Wannaburger. Jon Clemence is entrepreneur of restaurant that mainly
focuses on providing customers with humble hamburger and main desire to provide people
with good food within a few minutes.
Vision and Mission
The main mission of the restaurant is to be favourite place for customers for eating
hamburger. The company is dedicated towards being best place for employees who are
working in organisation and provide positive influence to the customers (Wheadon& Duval-
Couetil, 2014).
The vision of the restaurant is to be the quickest delivery service provider restaurant
in entire competitive market. The main motive of being best is to provide outstanding quality
of goods and services as this can assist them in making customers smile and meet their
expectations.
Business Goals and Objectives as per SMART criteria
Objectives
Specific  To increase the sales revenue by 15%
Measurable Increase in the sales volume of fusion ingredients in the burger, within 3 months, reflects the
measurability of this objective.
Achievable Large scale responses to the discount coupons, from the audience in the social media makes the
objective achievable
Realistic The balance between supply and demand makes the objective realistic.
Time 1 year
Objectives
Specific  To increase customer satisfaction by 10%
Measurable Planning something innovative for the customers indicate the measurability of the objective
Achievable Testing the reaction of the customers by opening the games section, makes the objective
achievable
Realistic Satisfaction and happiness of the children and the teenagers, by playing the games, makes the
objective, a realistic one.
Time 1 year
2

Objectives
Specific  To enrich the parameter of environment
Measurable Improvement of the health conditions of the customers, through bio-packaging method, reflects
the measurability of the objective
Achievable Adherence to the waste disposal methods by the staffs and customers, makes this objective
achievable
Realistic Consciousness towards the environmental directives makes the objective, a realistic one.
Time 1 year
Critical Success Factors of Wannaburger
Range of the customers- Wannaburger can offer customers in market with different
hamburgers within short span of time. This will appeal the customers who are from 15-24
years of age and there are wide range of menu for parents.
Nutrition- includes on website that states that the major commitment is to offer the
customers with nutritious food as this will be nutritious in nature.
Affordability– has to be managed by the company in which it is seen that there are
economic downturns (Di Benedetto &Lindgreen, 2018). The affordability is major factor and
Wannaburger offers customers with a full meal at a small or lower cost.
Availability- helped them in making convenience a key factor in the success. In 2006,
it has been seen that the restaurant wanted to start business neat well-known shopping area
at Princes Street (Di Benedetto &Lindgreen, 2018).
Legal Structure of Business
The location of business of Wannaburger is in centre of Edinburgh and the main
customer group was for tourists who visited place every day. The key suppliers of the
restaurant were supply of food and other requirements that are required and is necessary to
prepare food and deliver to customers.
The quality control and assurance department carry out inspection of production
facilities of the restaurant to check the quality of the food. Furthermore, the speciality
suppliers are the ones who supply the different requirements of the hamburgers. At present,
there is no such e-location of the business in Edinburgh (Foxall, 2014).
3

Offerings of Wannaburger
The main offerings of the restaurant are to serve customers with different kind of
drinks and food such as hamburger that will allow their customers to take away and other
food delivery services.
Purpose of Business Plan
The requirement of business plan is used in order to help to run company in a more
cohesive manner. This acts as roadmap and this helps in analysing plan for marketing, sales
along with manufacturing and website design.
Part 2
External and Internal Environment Analysis
Characteristics of industry and important trends
The main characteristics of the food and beverage industry includes the planning of
the menu along with purchasing and reception of the different kind of raw materials. The
main food production and beverage services system is highly emphasised in the hospitality
sector. The food and beverage manager need to forecast and plan the ordering of the
different food and beverages for the hotel premises (Kotler, 2015). The food and beverage
department are responsible for maintaining high quality of foods and services provided to the
customers, along with managing the different departments effectively.
The important trends in the industry that has affected the revenue and profit of the
different restaurants are as follows:
❖ Changing preferences of the customersis the recent trend in which the
customers in the present scenario are health conscious and there are different choice
options for the customers. The customers prefer food choice options with their
adventurous palates (Kotler, 2015).
❖ Food sustainability and safetyis the other trend that includes the millennials
who prefer their food should be green and healthy with low fat. This kind of food
choices of the customers is helping the restaurants in adding the different food items
that can create sustainability in the environment (Fulker et al., 2016).
4

❖ E-commerce and technological advancementshas been fiercely into
competition in which it has been noticed that there is huge competition in the market
that has started direct to customer service along with creating third-party platforms.
The customer’s order their choices online and get their food items delivered within a
short span (Kleinaltenkamp, Plinke& Geiger, 2016).
Key Competitors and formulation of competitive strategy
The main competitors of Wannaburger are
 Taco Bell
 KFC
 Burger King
 McDonald’s
 Subway
Wannaburger needs to formulate a competitive strategy that can assist them in
competing with the other competitors in the market. The main competitive strategy that can
be adopted by the respective restaurant is to provide nutritious food, hygienic environment
along with providing quality food to the customers as this can help them in gaining
competitive advantage in the entire market (Kotler, 2015).
PESTEL Analysis
Political Factor -Wannaburger is operating in one country, hence the exposure of
the same is in restricted to the respective country Edinburgh. However, Wannaburger has to
be comply with the different regulations of the government like other restaurants pertaining
to hygiene and health. The government has been pressurising the entire fast food industry as
the fast food has been seen as the junk food and this leads to obesity as well (Kotler, 2015).
Economic Factor- The different economic factors are essential for Wannaburger
especially as the restaurant is operating in one country and trying to expand the business in
other countries as well. The import of raw materials or buy the same from local market is one
essential aspect that has to be handled along with rate of taxes (Chernev, 2018).
Socio-Cultural Factor- The evolving lifestyle can create huge impact on the
performance of sales of the restaurant. The people in present era is seeking sophisticated
fare where they prefer to eat (Chernev, 2018). The people in Edinburgh may prefer to eat
5

hamburgers and French fries, however when the restaurant will be moving to the other
countries, there can be differences in the tastes and preferences of the individuals.
Technological Factor- It has been noticed that technological advancements play a
limited role in the entire fast food industry. The high technological advancements assist the
restaurants in improving the productivity and management and reduce the wastage and
resources. It helps in scheduling, forecasting sales and revenues of the company (Aivazidou et
al., 2017).
Environmental Factor- In present era, the individuals are protecting environment
and they care about water and air pollution. Wannaburger has started sustainable packaging
of the food that is delivered to the customers and they have started using organic ingredients
that can quickly mix in environment (Villeneuve &Pasquier, 2017).
Legal Factor- The regulation is the major concern to the company and as it is the
fast food company, they need to adhere to the different regulations such as employment and
labour law along with corporate law (Weinstein & Pohlman, 2015).
Porter’s Five Forces Analysis
Competitive Rivalry is one of the factors wherein Wannaburger faces tough
competition as the entire fast food restaurant is already saturated in nature (Hutchinson et
al., 2015). In case of Wannaburger, the competitive rivalry is the strong force that includes
the following:
● High number of organisations (strong force)
● Aggressiveness of the different firms (strong force)
● Switching cost is low (Strong force)
The customers of Wannaburger has been experiencing low switching costs that means they
can switch over easily that includes Wendy’s (Chernev, 2018). Therefore, it can be explained
that competition is significant external forces on business of Wannaburger.
Bargaining power of customers of Wannaburger is the other factor wherein
they need to address the significant power of the different customers. This deals with the
6

demands and influence of the customers on Wannaburger(Armstrong et al., 2015). The
different external factors that play a major role in to the strong bargaining power of the
customers that includes:
● Low switching costs (strong force)
● Availability of substitutes is high (strong force)
● Number of providers is large in nature (strong force)
There are different other substitutes of Wannaburger and it can be a competitive
rivalry for Wannaburger. For this, they need to develop different strategies to increase the
customer loyalty.
Bargaining power of suppliers of Wannaburger is the other factor in which the
different suppliers influence Wannaburger and this creates impact on the business (Charter,
2017). The weak bargaining power of the suppliers are described as follows:
● Large number suppliers (weak force)
● Overall supply is less (weak force)
● Vertical integration is low forward (weak force)
The different number of suppliers of Wannaburger weakens the individual suppliers effect on
the company. This is caused due to the lack of global or regional alliances among the different
suppliers. It has been noticed that there are different suppliers of Wannaburger are not
vertically integrated and this is a threat for the company (Chambers & Humble, 2017).
Threat of substitutes of Wannaburger is the significant concern of the restaurant and
this element mainly deals with the different potential effects of the different substitutes on
the growth of the restaurant. The following external factors can be a strong force of
substitution that includes the following:
● Substitute availability is high (Strong force)
● Switching costs is low (Strong force)
7

Threat of new entrants is the last factor that impacts the market share of
Wannaburger. The moderate threat of the new entrants is based on external factors that
includes the following:
● Capital cost is moderate (moderate force)
● High cost of development of brand (Weak force)
SWOT Analysis
Strength
● Wannaburger has rolled out successfully new items that include smoothies and
hamburgers and they are expanding the range of menu
● Consistency of the food that is being served to the customers (Berbegal-Mirabent, Gil-
Doménech& Alegre, 2016)Successful Items- different kind of hamburgers.
Weaknesses
● It is harder for Wannaburger to create a position in prime locations as there is already
huge bundle of restaurants
● Wannaburger is lagging in comparison to the other restaurants as the usage of the
equipment are not up to the standard
Opportunities
● China can be a great opportunity for Wannaburger as the hamburgers can be liked by
the customers (Litman, 2018)
● Joint ventures with different retailers (Chernev, 2018)
Consolidation of the different retailers so the better locations for their franchisees
Threats
● Strength of the competition
● Fluctuation of the foreign exchange rates
8

● More health-conscious customers in the market
Changing demographics
Part 3
Marketing Plan
Introduction
The major goal of the marketing plan is to create maximum exposure in the shortest
time and serve a large community of customers by offering different range of unique product
items. Another significant objective of the plan is to create a virtual presence in the foreign
nations by advertising and promotion through digital media channels. This objective could be
appropriate for Wannaburger because the firm is determined to enter the foreign nation in
the coming future. The action plan provided in the report specifies how the approaches
should be implemented.
Understanding the market
Customers:
1. Heasman and Lang (2015) mentioned that a large percentage of youths, especially the
highs school students age 15-19 years old in UK crowd at the small fast food restaurant for
ready chicken burger and chicken stripes or chicken nugget. Benefit again that Wannaburger
can give high school student is offer them in a cheaper cost and fast made in a box for
student combo package.
9

2. A survey conducted by Lülfs and Hahn(2013) reveals that almost 41% of employees of
corporate sectorage 20-24 years old prefer a heavy lunch with chicken items at the street
restaurants. Benefit gain that Wannaburger can give to young adult isby offering high quality
of products in chicken burger package in the menu with the lunch time price discount, so they
can easily afford.
3. In addition to this, there is one more type of customers such as the urban families of
Edinburgh who sometimes prefer to go for lunch or dinner. Age 25 to 50 (middle aged and
family members), Gender- Both male and female, Family size- 3-4 and 5+. Benefit gain that
Wannaburger can give to the family customer is to have the menu specially for kids combo
and adult combo that suitable for everyone and variety of meat lover or vegetarian for the
best price that Wannaburger can offer.
Marketing objective and the Key Performance Indicators.
Planning is crucial in terms of achieving positive outcomes in terms of marketing a product or service.
Planning enhances the awareness towards the prospective buyers. Innovation is an important
component of planning, which helps in attracting large number of buyers at a time. All these aspects
seem true for the brand, Wannaburger. Marketing objectives are the primary stage of the marketing
plan. Identifying the objectives would provide a proper shape to the business of the brand. The
following objectives can be included:
 To increase the sales revenue by 15%
Key Performance Indicators: Adding new ingredients in the burger, advertising through discounts,
schemes and offers, budget planning through considering the supply demand graph
 To increase customer satisfaction by 10%
Key performance indicators- Data collection, trying new projects- games section for the children and
the teenagers, CCTV cameras for ensuring the safety of the children and the customers
 To cater towards environmental protection
Key performance indicators- introducing bio-packaging technique, adopting solid waste management
technique, maintaining clean and hygienic kitchen, keeping separate veg and non-veg sections
 To organize quality assurance tests
Key performance indicators- establishing stable relationships with the research and development
team, hiring external quality experts, preparing reports and publishing them in social media
10

 To establish partnership with the legal authorities for issuing certificates for all the raw
materials used
Key performance indicators- Getting the signed approval of the statutory bodies for using the raw
materials in preparing the items; preserving the documents for averting any illegal instances
 To conduct feedbacks and surveys for improving the standards and quality of the products
and services
Key performance indicators- distributing survey form to the customers on websites and social
networking sites for gaining an insight into their specific tastes and preferences
Marketing budget and timeline
. Objectives
Objectives Required Resources Timeline
To create a large customers base
by meeting customer needs
The accomplishment of this
objective may require a large
amount of resource because
satisfying the needs of all groups
of customers. Wannaburger
needs skilled workforce who can
serve the high end customers and
digital media platform to
approach the customers. A large
investment is required to cover
the entire process
The completion of this initiative
may require at least 6 months
To create presence in the global
market through digital media
channel
To fulfil this objective, the
organisations require the digital
media platforms such as
The completion of this objective
may require 6 to 7 months
11

Facebook, Twitter, YouTube and
others. Finance is required for
implementing the entire process
To increase the profit by 10% in
the first quarter since the
implementation of the plan
This objective is specific, so no
such primary resource is visible
now but Wannaburger must have
to hire skilled workforce to meet
identified market demand. So,
workforce is the major resource,
which is highly essential
The completion of this objective
may require 6 to 8 months
Table 1: Objectives, Resource and Timeline
The employees need to be provided with training regarding the social media operations. For this, the
candidates who are tech savvy would be highly beneficial for the brand. Sponsorships and contacts
are crucial in terms of enriching the financial parameter. Strategic planning would prove beneficial in
this direction for the achievement of positive outcomes. At the initial stage, awareness needs to be
created about the digital platforms, which helps in improving the relations with the customers.
Looking to all of these activities, time of 2 years seems appropriate for achieving the objective of
increasing the profit margin through the expansion of customers’ base.
Marketing budget
Marketing expenses Amount ($)
Brochure 500 million
Website 1000 million
Business cards 400 million
Advertising 800 million
Labor maintenance 600 million
Building rent 500 million
Miscellaneous 200 million
Total $4000 million
Strategy of 4P
Products and services supposed to be offered
Products, customer attraction and communication strategy has been discussed in the
following with 4ps of marketing mix.
12