Global Business and Strategy Report: IZARA Turkish Restaurant Analysis

This report provides a comprehensive analysis of IZARA Turkish Restaurant, a restaurant operating in North London. It begins with an introduction to global business and the importance of strategic planning. The main body includes a background of the restaurant, followed by an internal and external analysis using SWOT and PESTLE frameworks. The SWOT analysis highlights the restaurant's strengths (diversified cuisines, good surroundings) and weaknesses (high pricing, time-consuming service), while also identifying opportunities (expansion) and threats (high competition, technological advancements). The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing the restaurant's operations. The report then identifies the sustainable competitive advantage using the VRIO framework. Finally, it offers strategic recommendations and implementation issues for the restaurant's future development and concludes with a summary of the findings and references.

Global Business and Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background to the case study organisation.................................................................................1
Internal and external analysis......................................................................................................2
Identification of sustainable competitive advantage of an organisation.....................................5
Strategic recommendations and implementation issues..............................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
.........................................................................................................................................................8

INTRODUCTION
Global business is the term that depicts the operation of organisations in different
countries. These kind of organisations are called as globalised or international. The main aim of
these organisation is to grab the large market share along with attainment of sustainability at
marketplace. The impact of the external factors has more upon such kind of organisations due to
presence of uncertainty (Peng, 2016). It would be better to analyse these and build appropriate
strategies to attain success in market. Analysis of internal environment is also has significant
contribution in development of the organisational structure along with providence of strong
working base. The organisation considered under this report is IZARA TURKISH
RESTAURANT. This is situated in London, operate business functions in hospitality industry.
The main aim of this report is to provide assistance to management of an organisation regarding
selection of better future direction.
The aspects which are covered in this report includes brief background of an
organisation, analysis of internal and external environment and identification of the sustainable
competitive advantage of an organisation. Also, provide recommendations to improve future
operations through selection of best route of expansion along with discussion of some
implementation issues.
MAIN BODY
Background to the case study organisation
IZARA TURKISH RESTAURANT is the organisation considered for carrying on
further analysis along with the completion of all requirements. It is a restaurant having its
operation in North London. It is actually situated in quarter of Whetstone that can e reached
easily within the couple of minutes of walking from Totteridge and Whetstone Underground
station. This restaurant as comfortable and contemporary surroundings that have the ability to
attract the customers. It is one of the great Turkish Cuisine which provides many of the
traditional dishes of mainland Turkey with the modern touch. This is the key aspect of this
restaurant that allows them in attraction of customers towards the consumption of their food. The
process used in this restaurant to cook food is good as proper care is taken in respect to selection
of ingredients along with cleaning in kitchen. Online booking facility is also provided that
enables the customer to book their place earlier and enjoy the meal without any waiting. Offering
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of this facility has huge contribution in providence of higher customer satisfaction. The main
speciality that made this restaurant attractive and unique in all nature is about offering of
different kind of dishes. The different offerings provided from the side of this restaurant includes
cold and hot starters, salads, side dishes, house specials, The grill, Vegetarian, sea foods etc. This
aid in coverage of all type of consumers segments that have different needs and tastes. This
provides an opportunity to an organisation in respect to attain sustainability in market for longer
period of time along with high competitive advantage (Motohashi, 2015). Overall description
provides that there is huge scope of development in future in relation to this restaurant along
with expansion of business operations in different areas. In this regard, management of
restaurant is needed to focus over analysis of the internal and external factors along with
formulation of strategies by considering their individual influence. This will help to bring
improvement in actual offerings along with the selection of correct path for future development.
Internal and external analysis
Internal and external are two different type of analysis that each and every organisation
has focus for the purpose of bring improvements in their operations along with identification of
path for future development. Internal analysis includes the ascertainment of the knowledge in
respect to factors that are present within the organisation and have impact over their
performance. The impact will be positive or negative depends over the nature of factors. These
factors are controllable in nature, totally depends over the capacity of an organisation. On the
other hand, external factors are those which are present externally or outside to the organisation
and have both kind of influence over the operation of an organisation i.e. positive or negative.
These are not controllable in nature by the management (Rastogi and Trivedi, 2016). The
negative impact of these can be minimised in the situation of their earlier identification. The
contribution of both these aspects has huge regarding the formulation of effective strategies
along with the identification of right path towards future development. IZARA TURKISH is the
restaurant that wants growth in future. Management decided to do internal and external analysis
for identification of future direction of business. SWOT is the model used for internal and
PESTLE for external analysis. The detailed description of these models in relation to IZARA
TURKISH RESTAURANT is provided below:
SWOT: It is effective tool that has huge contribution behind the identification of strength
and weaknesses of an organisation (Gürel and Tat, 2017). This also contributes in identification
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of opportunities and threats that present in market along with their power to grab and overcome
the same. Descriptive analysis of this tool in respect to IZARA TURKISH RESTAURANT is
presented below:
Strengths
Diversified rage of Cuisines: The number of dishes in which IZARA TURKISH
RESTAURANT deals are more and covers the each and every segment of customers. The
category of dishes present includes cold and hot starters, salads, side dishes, house specials, The
grill, Vegetarian, sea foods. This ascertained as the strength of the restaurant as able to satisfy the
need of different kind of customers. This strength of an restaurant has huge contribution in
development of their market base along with competitiveness.
Good Surrounding: IZARA TURKISH has comfortable and contemporary surrounds
that attracts the customers towards their restaurant to spend their time and enjoy meal. This
provides the strength as able to create distinctive image in market through which able to grab
attention of customers from far areas too (Blockeel and et. al., 2016). This resultants into
increment in the number of visitors as compared to their competitors.
Weaknesses
High pricing: Adherence of high price policies proves as weaknesses sometimes due to
less attraction of people belong lower middle class. This weaken their base and allows their
customers to attract the customers of that segment to fill their market gap.
Time consuming process to get services: This restaurant have facility of takeaway and
online booking that hinders the capacity to provide services to all of their customers quickly. The
bad experience of any segment of customers turns as the weakness of an organisation. This have
direct impact over their customer base because in this they prefer to take the services of other
restaurants present in market.
Opportunities
Expansion: The restaurant business has huge opportunities in UK for expansion of
business. Right now, IZGARA TURKISH RESTAURANT has operations in Whetstone, North
London and is within a couple of minutes walk from Totteridge and Whetstone Underground
station. Majorly, all the external factors have positive influence over the operations of restaurant
business. This creates an opportunity in front of IZGARA TURKISH RESTAURANT to easily
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expend operations through consideration of the positive impact of the factors (Niederwieser and
et. al., 2016).
Threats
High competition: Competition in restaurant sector within the UK is high. There are
large number of restaurants are present that have speciality in respect to provide different
cuisines. This creates the threat in front of the considered restaurant named IZGARA TURKISH
regarding easy operation of business functions along with attraction of large number of
customers. The direct negative impact of the same is ascertained over their customer base and
profitability (Niederwieser and et. al., 2016).
Presence of high technology: Regular updation is threat in front of the restaurants to
easily cope with their negative impact. This will be totally depends upon the restaurants
capability regarding the acceptance of new technologies and use of their resources in same
respect. The threat which will be faced by IZGARA TURKISH RESTAURANT due to presence
of this factor is high production cost and low profit margin. This is so because its acceptance
allows the rivalries to easily operate operations with higher efficiency that enables them to
generate products and services at low cost with high profit margin.
PESTLE Analysis: It is the framework or tool which help in analysis of the impact of
external factors over the functions of an organisation. The number of factors in respect to which
information is ascertained includes political, economical, social, technological, legal and
environmental (Zahari and Romli, 2019). Management of IZGARA TURKISH RESTAURANT
is also decided to carry out this analysis for the purpose of analysing impact and select best
strategy for future development. Detailed description of this in relation to the selected restaurant
is provided below:
Political: The political situation of UK is quite stable after facing the consequences of
Brexit. This force the government to take the new steps for the development of businesses within
the UK. Presence of stability and new government policies for development creates the
opportunity in front of IZGARA TURKISH RESTAURANT regarding easy expansion of the
operations within the other areas of UK. Stability provides adherence of legislations in continuity
whereas developmental policies help to setup physical business presence in other areas on liberal
terms and on easy financing.
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Economical: The economical situation of UK is significant in nature. Flow of cash is
quite good within the economy along with per capita income of the individuals. This creates the
opportunity in front of restaurant to easily grab the funds on low interest rates for easy physical
setup and stimulate the demand of food through providence of exciting offers as high income
allows to access conveniently. This will help in setting up the business along with creation of
market base within the less period of time.
Social: Individuals of UK have trend to taste new and diversified dishes with their
colleagues and family. This has the positive impact over the business of all restaurants. This
create the opportunity in front of IZGARA TURKISH RESTAURANT to easily attain the mark
of BEP when operates the business in some new area (Fozer and et. al., 2017).
Technological: Presence of technology in UK is quite high. Individuals of UK are also
prefer to use technological procedures to carry on their day to day functions. This creates the
opportunity in front of IZGARA TURKISH RESTAURANT that focus over usage of online
booking and deliver systems. This will provides an opportunity to cover large market share along
with attraction of more new potential categories of customers.
Legal: Governance of UK is stable in nature which resultants into adherence of fix legal
rules, legislation and policies. This creates the opportunity in front of the restaurant that easily
open their new restaurant in other area as the same legislations and rules are required to be
followed which they followed right now in north London. This will help to save the time and
cost of setting up an organisation that allows to fix high profit margin.
Environmental: UK government is more strict in respect to safeguard their environment
from the negative impact of business operations. The restaurants have negative impact over the
environment that resultants into reduction of their image and market share. This creates the
opportunity in front of IZGARA TURKISH RESTAURANT to adopt effective food waste
management system that help in reduction of negative impact over environment along with
satisfaction of their CSR activities towards the society.
Identification of sustainable competitive advantage of an organisation
This includes about the determination of the resource of an organisation that help in
ascertain of overall competitive advantage in market. The identification of this is must in nature
because this will provides an opportunity in maximum utilisation of that resource in process of
future development and expansion activities. The model used by the management of IZGARA
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TURKISH RESTAURANT to analyse resource that help in attainment of sustainable
competitive advantage in market is named as VRIO. This includes the analysis on the basis of
four main factors such as valuable, rare, inimitable and organisable. Detailed description along
with tabular presentation is presented below:
VRIO: Effective tool that help to determine the capability of resource on the basis of
terms like valuability, rarity, inimitably and organisability (Song and Sung, 2015). The
resources selected by management of IZGARA TURKISH RESTAURANT to analyse includes
human resource, technological usage and infrastructure. Further application of model is
presented below:
Resources Valuable Rare Inimitable Organisable
Human resources √ √ √ √
Technological
usage
√ √
Infrastructure √ √
Valuable
Human resources: The man-force of this restaurant is valuable in nature because they
have to undergo the special training of 1 month before start working. This develops their skills
of greeting the customers along with performance of functions.
Technological usage: This restaurant is effectively use the technologies this presents as
valuable in nature as able to attract the young customers who book their visits online with the
help of website.
Infrastructure: The valuability of infrastructure is determined in the manner that their
internal infrastructure along with sitting arrangement is comfortable in nature that help to attract
the customers to enjoy meal with their family members (Ariyani and Daryanto, 2018).
Rare
Human resources: These are rare in nature because they have unique skills and
characteristics that they gained with the help of training and earlier education courses. Also, the
aspect makes them rare is the style of its usage that provides edge in providence of services in
qualitative manner.
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Inimitable
Human resources: The skills and characteristics attained along with their usage is
inimitable in nature because not possible for any one to copy others value, belief and culture
which they use in providence of their services.
Organisable
All the three resources are organisable in nature. This depicts the ability of an
organisation to use the resources within performance of restaurant functions properly. This will
provides an opportunity to accomplish the targets within the stipulated period of time and attain
future growth targets effectively (Knott, 2015).
Strategic recommendations and implementation issues
It is recommanded to IZGARA TURKISH RESTAURANT about the use of Ansoff
matrix tool regarding identification of the best growth strategy in market through consideration
of the information analysed above with the help of different models (Yin, 2016).
Ansoff Matrix: This has four different option in respect to development i.e. market
penetration, market development, product development and diversification.
Market penetration: This is about focus over increment of sales in same market through
usage of advance promotional methods.
Market development: This is about development through focus over starting the
operations in new market or area with the help of same product.
Product development: This includes providence of new product in same market for
development.
Diversification: This is about new product and new market to attain development.
The one which is most suitable and recommended for the development on the basis of the
above analysis that the approach of market development is most appropriate to attain growth.
This is about the opening of new restaurant on other location of UK through focus over
providence of the same cuisines (Loredana, 2016). The issues which are arise in its successful
implementation includes man power, funds, legal rules, suitable physical presence and
environment sustainability.
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CONCLUSION
It has been concluded from the above report that growth of an organisation depends over
management ability to analyse the internal and external factors along with development of
suitable strategy. IZGARA TURKISH RESTAURANT has the opportunity to open new
restaurant on other place of UK due to presence of highly favourable external factors. The human
resource is effective internal resource with this restaurant that further aid in future to attain
sustainable competitive advantage in market.
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REFERENCES
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