The Ledbury: Analysis of Emerging Business Opportunities Project

This entrepreneurship project analyzes the business opportunities for The Ledbury restaurant in London, focusing on strategies to navigate the challenges posed by the COVID-19 pandemic. The project begins with an executive summary highlighting the importance of adapting to market changes and leveraging opportunities like takeaway services for growth. It then delves into the research background, literature review, and methodology, including the use of interpretivism philosophy and exploratory research design. The analysis section incorporates both internal (SWOT and VRIO framework) and external (PESTLE and Porter's five forces) market analyses to identify strengths, weaknesses, opportunities, and threats, as well as assess the competitive landscape. The project also includes risk analysis and proposes a growth strategy based on Porter's generic strategies, recommending home delivery and takeaway services. The project concludes with recommendations to the company and a conclusion summarizing the findings, along with a list of references.

Entrepreneur Research
Project
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Executive Summary
Entrepreneurship is the process to start a venture by taking up financial and other risks to
earn huge profits. There are opportunities available in the market which are exploited by the
entrepreneurs to lead the business towards growth. The spread of corona virus impact adversely
on economy and businesses and its profitability. In this situation, it becomes very necessary for
the restaurant to adopt appropriate strategy for leading the business towards growth. Takeaway
service is one of the best way that help business in attaining growth in the situation of
coronavirus spread. Prior to developing a strategy, it is very necessary to properly analyse
internal and external environment of business along with the risks and growth strategies that may
be adopted for leading the business towards growth.
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Contents
Executive Summary.........................................................................................................................2
TITLE: “Emerging business opportunities for The Ledbury’’........................................................5
1. RESEARCH BACKGROUND AND INTRODUCTION...........................................................5
Research Background.............................................................................................................5
2. LITERATURE REVIEW............................................................................................................6
3. RESEARCH METHODOLOGY.................................................................................................6
4. ANALYSIS..................................................................................................................................8
4.1 Internal Analysis...............................................................................................................8
SWOT Analysis......................................................................................................................8
VRIO framework....................................................................................................................9
4.2 External Market Analysis...............................................................................................11
PESTLE Analysis.................................................................................................................11
Porter’s five force analysis...................................................................................................13
4.3 Analysis of emerging business opportunities.................................................................15
4.4 Risk Analysis..................................................................................................................15
4.5 Strategic Analysis/ Growth Strategy..............................................................................16
Porter’s Generic Strategy.....................................................................................................16
Business Growth proposal.............................................................................................................17
5. RECOMMENDATIONS TO THE COMPANY.......................................................................19
6. CONCLUSION..........................................................................................................................19
REFERENCES..............................................................................................................................20
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TITLE: “Emerging business opportunities for The Ledbury’’
1. RESEARCH BACKGROUND AND INTRODUCTION
An entrepreneur is the person who establish a new business by taking up financial and
another risk with the hope of earning high profits. They are seen as innovators as well as source
of new product, ideas, services and business. In today's business environment, the competition is
huge which requires every business to differentiate itself with the rivals by adopting new ways of
doing things. Currently, the spread of corona virus pandemic impacts almost all the businesses in
adverse way, slow down the economy which directly impacts on the profitability and revenues of
firm (Matlay, and et. al., 2015). The restaurant industry is impacted highly by the spread of virus
as due to preventive measures like restrictions on movement and social distancing, it becomes
very difficult for restaurants to operate successfully. So, in order to ensure growth and success of
business, The Ledbury is decided to come up with a strategy of providing home delivery and
takeaway services to customers so that they do not require to move outside for having lunch or
dinner and can order food by sitting in the home only.
The Ledbury is a well-known restaurant of London which perform its operation successfully
from last 15 years in the city. The restaurant ensures to provide high quality food items to
customers along with fast delivery services. The restaurant also provides takeaway services to
customers in order to ensure its growth even during the situation of spread of virus. This report
covers different frameworks for analysing the situation of the external market through using
PESTLE and Porter’s five force analysis. For analysing the internal environment of business,
SWOT analysis and VRIO framework is used. Apart from this, risk is analysed and a growth
strategy is selected for the restaurant by using Porter’s generic growth strategy which help in its
growth and success in the market (Sridhar, and et. al., 2016).
Research Background
A business opportunity can be referred as the packaged investment in business that
enabling buyer to initiate certain business. There are many opportunities available in the market
currently for businesses in order to lead them towards growth and success. The most common
type of business opportunities includes franchising, network marketing, licensing, distributing
and dealing. In the current business environment, all the businesses are impacted because of
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spread of coronavirus pandemic. This resulted into slowdown of economy and ultimately
impacts the profitability and revenues of organisations. This project is based on the title
"Emerging business opportunities for The Ledbury". The main of aim of the project is to
determine growth strategy for business so that it can be able to accomplish growth and success
even in the situation of spread of covid-19 pandemic.
Aim of Research:
“To determine the business growth strategy for The Ledbury by the means of product
development”
Objectives of research:
1. To analyse the internal and external market of organisation.
2. To determine the risks which can be face by organisation while operating its business.
3. To assess the different growth strategies which are available for organisation to grow in
the market.
Research Questions:
1. How to assess internal and external market of organisation?
2. What can be the risks which can be face by organisation while operating its business?
3. What are the different growth strategies which are available for organisation to grow in
the market?
2. LITERATURE REVIEW
Internal and external market of organisation
As per the view point of J. Luty, 2020, the restaurant and food service industry of United
Kingdom had undergone growth period prior to the spread of coronavirus pandemic in year
2020, with revenues depicting an increasing trend over the years. However, before the pandemic,
the restaurants in United Kingdom were struggling to survive as several succumbed to closures
in year 2018 and 2019. Increasing costs, declining customer spending and oversaturated market
from increase in casual dining brands in preceding years, have contributed to insolvencies of
autonomous restaurant and leads to closure of many big chin outlets. Now, due to uncertainty
because of unexpected pandemic and brexit, the future of restaurant industry is less known. It has
been anticipated that the revenues fall by around 33% in year 2020, but the outlook suggested
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complete recovery by year 2024 (Restaurant industry in the United Kingdom (UK) - Statistics &
Facts, 2020).
Figure 1: Industry revenue of “food and beverage service activities“ in the United Kingdom
from 2012 to 2024
Risks which can be face by organisation while operating its business
As per the view point of Omsa, Abdullah, and Jamali, 2017, there are several risk associated
with the restaurant businesses. Some of the risks are discussed below:
 Insufficient cash flow: underestimating the time which is required by restaurant to
develop itself to become profitable business often in single biggest risk that faced by
owners. While developing a new service, the cost can be considerable. Failing to raise
adequate capital can be one of the risk that restaurant businesses face.
 Inadequate marketing: putting appropriate promotional efforts is very important for any
business. Restaurants are forced to deal with many rivals may quickly find themselves
lost in crowd, specifically in the situation when the owners of business field to make
advertising as a top priority. If the marketing of restaurant is inadequate, the it poses a
risk for the business.
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Different growth strategies which are available for organisation to grow in the market
As per the view point of Cavaleri, and Shabana, 2018, there are several business growth
strategies which can be employed by restaurant business including market penetration, market
development, product development and diversification strategy. In market penetration strategy,
businesses penetrate on the existing market with existing product to increase share in the market.
In product development strategy, new products developed by the restaurant to cater the needs of
existing market. In market development strategy, new market is developed by the restaurant with
existing product. And in diversification strategy, both the product and market is new and is the
riskiest strategy to employ. All these strategies help in growth of the business.
3. RESEARCH METHODOLOGY
Research methodology introduces as the procedure of collection and analysis, interpretation
of information regarding the research topic. Different methods are involved in the research
methodology that help investigator in performing the investigation systematically. Different
methods which are utilized in relation to this research are mentioned below:
Research philosophy: The research philosophy is classified as positivism, interpretivism,
realism and pragmatism. It deals with nature, source and development of knowledge. It is
defined as the belief regarding the ways through which data must be collected and utilize. In
pragmatism philosophy, details collected through mixed method, highly structured data is
collected in positivism philosophy, in realism The chosen method should fit the subject matter
and in interpretivism small samples are used to collect data. In this investigation, interpretivism
philosophy is considered as it is based on naturalistic approach and related to high validity level.
Research Approach: Two approaches of research involve inductive and deductive.
Inductive research approach is not based upon a particular theory and includes observation and
development of theory. On the other hand, deductive approach initiates with theory and testing of
those theories. It involves formulation of hypothesis and its testing to analyses results. Inductive
approach is taken into consideration in this study as it is relevant according to the topic and assist
the researcher in drawing valid research outcomes.
Research design: The research design consists of experimental, exploratory and descriptive.
Exploratory research involves exploration of new phenomena. Descriptive research helps in
getting large amount of data to answer the research question of appropriately and experimental
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research is based on scientific research design. In this investigation, the researcher considers
exploratory research design as this help investigator in gaining better understanding about the
topic.
Data gathering methods: It is the process through which the data about particular study is
collected. It can be done in two ways through primary and secondary methods. Fresh information
is gathered in primary research and articles and journals are used to collect secondary data. This
investigation considers secondary data collection method as through this, researcher is able to
gather large amount of information. The secondary method of collecting data helps the
researcher as this will help in gathering adequate amount of data over the particular research
topic which assist in ensuring the accuracy of research outcomes.
Method of data analysis: In research, data can be analyzed through qualitative and
quantitative methods. In quantitative data analysis, data can be analyzed through descriptive and
inferential analysis. And the qualitative data can be analyzed through narrative analysis,
grounded theory, content analysis and discourse analysis. In this study, the data is analyzed
through descriptive analysis method as this assist researcher in find out absolute numbers for
summarizing individual variables.
Reliability: Research reliability is defined as the extent to which the methods of research
produces consistent and stable outcomes. In research, it is highly important aspect as it assists in
ensuring the affective outcomes of research. It also helps in ensuring that it has positive
implication on other areas of study and allow a researcher to develop further investigation in the
similar field. In order to ensure reliability of data, the research will gather the data from authentic
and relevant sources and ensure that the data older than five years can not be included in the
investigation.
4. ANALYSIS
4.1 Internal Analysis
SWOT Analysis
SWOT Analysis is a tool which helps the manager of The Ledbury in determining the
strengths, weaknesses, opportunities and threats of the restaurant, which in turn help in
developing appropriate strategies that assist in exploiting the opportunities and overcoming
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threats and weaknesses in order to grow and get success in the market (Omsa, Abdullah, and
Jamali, 2017). The SWOT analysis of the Ledbury is as follows:
Strengths Weaknesses
 The restaurant has well qualified and
experienced staff to serve guest.
 Provide high quality food at affordable
prices is the strength of restaurant.
 The restaurant also offer food for health
conscious people.
 Menu of the restaurant consists of
variety of food items.
 As it is a small restaurant, it has limited
funds.
 Most of the food items of restaurant are
similar to other restaurants.
 The restaurant is not older than 15 years
(Alzoubi, and Emeagwali, 2016).
Opportunities Threats
 Opening a new restaurant in other area
of the London or in other new market
provides an opportunity.
 Offering differentiated product or
service to customers also provides an
opportunity to restaurant.
 Setting competitive prices of food items
and offering healthy food is an
opportunity.
 Fierce competition in the market creates
a threat for restaurant.
 Reduced prices by rivals is also a threat
for restaurant.
 Increased operational cost makes it
difficult for restaurant to mitigate
income.
VRIO framework
Use of VRIO model is made by an organisation to have an analysis about its internal resources
and the vital capabilities that lead support and strength for a company to sustain its success and
gain Competitive advantage (Cavaleri, and Shabana, 2018). In present scenario following use of
VRIO model is made by The Ledbury restaurant to get better analysis of its internal resources
and capabilities that would support its growth and help in coping up with issues of COVID-19.
Resources Valuable Rarity Inimitable Organized What is the
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result?
Distribution
channel
Yes No No No Competitive
Disadvantage
Market presence Yes Yes No No Partially
competitive
Technological
resource
Yes Yes Yes No Temporary
competitive
advantage
Human
resource
Yes Yes Yes Yes High
Competitive
advantage
The above table is reflecting that the Ledbury restaurant is still having the capabilities and
potential to grow and get success even in the time of current pandemic situation lead by COVID-
19. An analysis if VRIO model of The Ledbury restaurant is provided below:
Valuable
It represents the resources which are adding the value for The Ledbury restaurant and
enables it to explore current opportunity and overcome all expected threats. Valuable resources
of The Ledbury comprise of its distribution channel as it is getting more effective and valuable
after introduction of take away facilities’ and online services (Sridhar, and et. al., 2016). Further,
the market presence of The Ledbury also became valuable for this company as on last 15 years
many new branches are opened by The Ledbury at various places of London. Apart from this
regular up gradation of technology and development of human resources is also valuable
resources for The Ledbury restaurant as it provided technical support and more motivated
workforce to garb an opportunity and overcome a threat.
Rarity
These resources comprise of capabilities that can be acquired by only a few companies
thus considered rare and provide a temporary level of competitive advantage to The Ledbury.
The market presence level of The Ledbury is quite good as in 15 years of working a good image
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and goodwill is achieved by this organisation that is difficult for its competitors to acquire. Apart
from this, making use new and most efficient technology to provide better services and higher
comfortable level for its customers is also a rarity resources. Apart from skilled and creative
human resource is also providing a sense of temporary competitive strength for The Ledbury
restaurant (Hendriyani, Rinala, and Pranadewi, 2016).
Inimitable
It presents a set of resources that require a suitable amount of investment for acquiring
therefore providing a sustainable level of competitive strength for The Ledbury restaurant. The
use of most efficient technology for offering upgraded services in form of online services and
take away facilities is providing a higher level of competitive strength for The Ledbury. Further,
highly efficient and innovative employees is leading an inimitable resource for The Ledbury that
is providing it an upper hand on its competitors.
Organized
It represents the most organised and greatest strength of The Ledbury restaurant which
promotes highest level of support to run its business for a longer period and maintain its
sustainability. Human resources of The Ledbury restaurant is its most organised form of resource
for this organisation as all possible measures are taken to set a balance and coordination among
its employees to achieve the set targets in a better way (Sammut‐Bonnici, and Galea, 2015).
Apart from this, in current situation of COVID-19 proper training and online development
programmes are organised by the Ledbury to ensure proper information and understanding about
the needed precaution to control the spread of Covid-19. Proper hygiene, sanitisation and social
distancing is maintaining by the employees of The Ledbury to effectively run and sustain its
business during the time of this global pandemic.
4.2 External Market Analysis
PESTLE Analysis
The restaurant sector is one of the popular and profitable business. There are distinct types
of restaurant where people can go and enjoy with their friends and family. It is the place where
food is cooked and served to guests and works round-the-clock. However, due to spread of
covid-19 pandemic, many restaurants are temporarily closed and people prefer less to go outside
and have food (Razumeyko, 2020). This highly impacts on the businesses and their profitability.
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