Analyzing Business Factors: A Report on Hanson Pizza Bar & Restaurant

This report provides an analysis of the internal and external business factors affecting Hanson Pizza Bar and Restaurant. It includes a PESTLE analysis to assess the macro-environmental factors such as political, economic, social, technological, legal, and environmental influences, and Porter's Five Forces to evaluate industry competitiveness by examining the bargaining power of buyers and suppliers, the threat of new entrants and substitutes, and competitive rivalry. The report also delves into the internal organizational analysis, including the mission, vision, and values of Hanson Pizza Bar and Restaurant, applying the Mintzberg Model to understand the organizational structure and systems. A self-reflection on workplace experiences is included, alongside a SWOT analysis identifying the strengths, weaknesses, opportunities, and threats facing the restaurant. The report concludes with recommendations for Hanson Pizza Bar and Restaurant based on the analysis. Desklib provides access to this and other solved assignments for students.

Running head: HOSPITALITY MANAGEMENT
Hospitality management
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about internal and external business factors prevalent in the
operation of Hanson Pizza Bar and Restaurant. In addition, I have also included the experience
being gained by me from working in this organization. This helped me in aligning my workplace
experience to that of the information gathered from the global competitiveness index. I have
reflected about the experience being gained. The internal competencies of Hanson Pizza Bar and
Restaurant are also being discussed in this report and a few recommended steps are also being
analyzed.

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Table of Contents
Introduction......................................................................................................................................3
Determination of the external factors..............................................................................................6
PESTLE analysis.........................................................................................................................6
Political factors............................................................................................................................6
Economical factors......................................................................................................................7
Social factors...............................................................................................................................9
Technological factors.................................................................................................................10
Legal factors..............................................................................................................................11
Environmental factors................................................................................................................12
Determination of the industry competitiveness.............................................................................12
Bargaining power of the buyers.................................................................................................12
Bargaining power of the suppliers.............................................................................................13
Threat of new entrants...............................................................................................................14
Threats of substitutes.................................................................................................................14
Competitive rivalry....................................................................................................................15
Internal Organizational Analysis...................................................................................................15
Organizational Diagnosis...........................................................................................................15
Mission, Vision and Values of Hanson Pizza Bar and Restaurant............................................16
Framework (Mintzberg Model).................................................................................................18

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Organization System..................................................................................................................20
Self-Reflection...........................................................................................................................22
Determination of the internal business factors..............................................................................23
Strengths....................................................................................................................................23
Weaknesses................................................................................................................................23
Opportunities.............................................................................................................................24
Threats.......................................................................................................................................25
Recommendations..........................................................................................................................26
Conclusion.....................................................................................................................................26
Reference.......................................................................................................................................28

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Introduction
In the current business scenario, it is important for the contemporary business
organizations to have the effective understanding of their external and internal business factors.
This is due to the reason that effective determination of the external business factors will help the
business organizations to design their strategies accordingly. It should also be noted that the
current business scenario is much more competitive than it was a decade ago. Thus, it is also
important for the contemporary business organizations to have effective approach of strategic
intent in staying ahead in the competition (Dibrell, Craig and Neubaum 2014). This effective
strategic intent will be made possible only if the organizations are having the proper
understanding of their external and macro business factors. On the other hand, determination of
the internal factors for the business organizations is as important due to the reason that this will
help them in having the idea about their strengths and weaknesses and can have their strategic
intent accordingly.
Australian service sector is one of the highly competitive sectors with having the
presence of different players. There is huge number of restaurants present in the Australian
market catering to different customer segments. Thus, it is important for the restaurants operating
in the Australian market to have their strategic intent in accordance to the different business
factors. Hanson Pizza Bar and Restaurant is one of the leading fine dining restaurants in the
Adelaide catering to customers seeking the Italian cuisines and ambience
(hansonpizzabar.com.au 2018). They are also awarded as the best Italian restaurant in Australia
and thus they possess favorable brand equity in their existing area of operation. However, on the
other hand, it is also important to note that numbers of global dining brands are entering in the
Australian market and this is increasing the competition for Hanson Pizza Bar and Restaurant.

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Hence, they are having the need of effective strategic planning to fend off the competition, which
will be complemented by the determination of the micro and macro analysis.
In this report, the focus will be given on the operation of Hanson Pizza Bar and
Restaurant based on the experience gained by me from my working tenure there. I have
consulted with number of stakeholders from Hanson Pizza Bar and Restaurant for gathering the
information about their micro and macro environment. Based on this information, this report will
discuss on the major macro and micro environmental factors of Hanson Pizza Bar and
Restaurant. I have also used a few external data sources such as the Global Competitive Index in
having an idea about the business environment in Australia. A few major issues and challenges
for them will be identified and recommendations will be provided accordingly.
Things I have learnt till now
 I got to know about the overview of the hospitality sector especially the restaurant
industry. In addition, I have also gained enough experience in having the idea of business
patterns in this industry and the service delivery process.
 I got to know about the customer relationship management being maintained in the
restaurant and the level of importance it holds for the business. I came to know that
effectiveness of the customer relationship management determines the business
potentiality of Hanson Pizza Bar and Restaurant.
 I have gained the idea about how to initiate effective communication process among the
stakeholders and to maintain consensus among them.
 I have the training of preparing the table for the guest in minimal amount of time with
maintaining all the important elements.

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 I have also gained experience in using ERP and accounting software in the restaurant and
can operate them in efficient manner.
Future learning outcome expected
 My objective is to gain more experiences in managerial matters of the restaurant due to
the reason that I have not gained much managerial skills as of now.
 I also want to be more efficient and effective in preparing the table for the guest. Thus, I
will reduce the current incursion of time in preparing the table.
 I also want to gather more information about the customer trends in the hospitality
industry, which will further help me to contribute in decision making process of Hanson
Pizza Bar and Restaurant.
 Aim to gain the expertise in attracting the new customers by means of different marketing
activities. As of now, I do not have the idea about how Hanson Pizza Bar and Restaurant
is targeting their new customers along with their major strategies.
Stakeholders consulted in gaining data for external business factors
External business factors are complex to determine due to their vulnerability to rapid
change. In this case, I consulted with my reporting senior in the workplace. This is due to the
reason that being a senior stakeholder, he is having more information about the external
environment of Hanson Pizza Bar and Restaurant. On the other hand, he is working with Hanson
Pizza Bar and Restaurant from the last 6 years, which denotes that he is having enough idea
about the trend of external factors for the organization. I have tried to align and relate the
information gained from my senior with that of the information being received from the external
sources. In addition, I have also consulted with some of my classmates due to the reason that

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they are competent enough in having the idea about the business environment of Australian
hospitality sector.
Stakeholders consulted in gaining data for internal business factors
I have consulted mainly with the internal stakeholders of Hanson Pizza Bar and
Restaurant due to the reason that they are having the better idea about the internal effectiveness
and competencies of the organization. In terms of consulting with the senior members, I have
consulted with the members from different departments in order to have the diverse idea about
the internal competencies of Hanson Pizza Bar and Restaurant. Consultation with the senior
members helped me in having the idea about what they are thinking about tapping the future
opportunities.
Determination of the external factors
External factors of Hanson Pizza Bar and Restaurant can be determined both on the basis
of competitiveness of the industry and on the basis of impact of external factors on their business
operation. The following sections will discuss about the industry competitiveness of Hanson
Pizza Bar and Restaurant with the help of Porter five forces analysis and impact of the external
factors with the help of the PESTLE analysis.
PESTLE analysis
Political factors
Hanson Pizza Bar and Restaurant is based in Adelaide and thus the political factors
relevant in the Adelaide will have influence on their business operation. In terms of the political
stability, Australia is having favorable position with having stable government in place.

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According to the global competitiveness index, Australia is having the ranking of 7 in terms of
number of procedures in starting new businesses. This denotes that political factors and
regulations are less in doing business in Australia (Blom-Hansen, Houlberg and Serritzlew
2014). However, in terms of Hanson Pizza Bar and Restaurant, it is having both negative as well
as positive impacts due to the reason that favorable political situation is helping Hanson Pizza
Bar and Restaurant in doing their business effectively and properly. However, on the other hand,
this is also attracting new challengers in the market and affecting the business profitability of
Hanson Pizza Bar and Restaurant. It is also identified that Australia is having the ranking of 80
in terms of burden of government regulations (Norden, Roosenboom and Wang 2013). This is
denoting that business organizations operating in the Australian scenario will have to face higher
level of government intervention, which will further restrict the business efficiency. In the case
of Hanson Pizza Bar and Restaurant, higher level of burden of government regulations will cause
lack of efficient decision making process in place. It is also should be noted that political factors
will have larger impact with the market development of Hanson Pizza Bar and Restaurant. This
is due to the reason that currently, Hanson Pizza Bar and Restaurant is having their operations
only in the Adelaide and in the further time they will face more diverse political factors with
having their presence in more number of areas.
Economical factors
Economical factors refer to the factors that are having direct impact on the profitability of
the business. This is also important due to the reason that with the change in the scenario,
economical factors are evolving. It is identified that economic growth of Australia is increasing
in the recent time and this shows that business opportunities of doing business in Australia are
also increasing. It is one of the most positive factors for Hanson Pizza Bar and Restaurant in their

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existing business operation. In addition, it is stated by the global competitiveness index that
Australia is having the ranking of 38 in terms of trade tariffs that denotes that Hanson Pizza Bar
and Restaurant will also have favorable environment in facing the issue of higher rate of tariffs in
the country (Penrose 2017). However, it is also identified that rate of employment in the country
is also reducing and this is reducing the purchasing power of the average customers. This should
be noted that Hanson Pizza Bar and Restaurant is being positioned as a luxury and leisure
activity and thus they will be given least preferences in case of reduction in the rate of
employment. Australia is having the higher rate if inflation in the world, which is one of the
major negative factors for Hanson Pizza Bar and Restaurant in doing business in Australia. This
is due to the reason that higher rate of inflation will increase the cost of goods, materials and
services and will attract lower rate customers to the business.
According to the global competitiveness index, Australia is having the ranking of 47 in
terms of business cost of terrorism. This denotes that business organizations such as Hanson
Pizza Bar and Restaurant will face the high intensity of terrorism in their business (weforum.org
2018). This will affect the business potentiality of them due to the fact that terrorism will cause
lower inflow of customers in the restaurant. In addition, it should be noted that tourists are one of
the major target segments for Hanson Pizza Bar and Restaurant and thus this segment will be
affected due to the impact of terrorism (McMillan and Overall 2016). Competition is another
major element to be considered in determining the economical environment. This is due to the
reason that the higher will be the intensity of the competition in the market; the lower will be the
profitability for the organizations. In the market of Adelaide, there are number of global pizza
chains already operating along with continuous inflow of new players in the market. Thus, the
intensity of competition for Hanson Pizza Bar and Restaurant is increasing.

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Social factors
Hanson Pizza Bar and Restaurant is mainly catering to the higher end sections of the
customers mainly due to the premium service offerings of them. Australia is having diverse sets
of customers in the country and Adelaide is one of major regions with having high number of
immigrants. Thus, it is important for Hanson Pizza Bar and Restaurant to have diverse service
offerings to cater to different customer segments. In addition, it is also important for Hanson
Pizza Bar and Restaurant to consider the food habit and preferences of the immigrants due to the
fact that they are also one of the major targeted customer segments (Markus 2014). Australia is
one of major globalized economy with high influence of different social factors in the society.
Australia is witnessing steep rise in the vegan population in the country. This will pose challenge
for Hanson Pizza Bar and Restaurant due to the fact that majority of their offerings contains
meat. On the other hand, people are becoming more conscious about the presence of gluten in
food. Thus, it is becoming challenging for Hanson Pizza Bar and Restaurant to cope up with this
change in the social environment and maintain their market leadership.
In the case of market development as they are planning to enter in new markets in new
regions, there will be number of challenges to be faced by them. One of the major challenges
will be difference in between the different regions. Thus, the challenge will get amplified further
for Hanson Pizza Bar and Restaurant. As discussed earlier, Australia is one of the major
globalized economies in the world. This is also causing rapid change in the social trend and
preference pattern of the customers. Thus, the more rapid and frequent will be the change in the
taste and preference pattern, the more will be the challenges for Hanson Pizza Bar and
Restaurant in coping up with the change.

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Technological factors
In the current business scenario, technological factors are one of major determining
factors to be considered in doing business. This is due to the reason that technological
advancements help in gaining competitive advantages for the business organizations. In the
hospitality sector, technological advancements are also important due to the reason that it helps
in offering more effective service to the customers. In the case of the food and beverage sector,
technology is helping the pizza chains in reducing the time between the order of the customer
and delivery (Farmer 2013). Thus, the waiting time of the customers in the restaurants will also
get lowered with the development in technology. According to the global competitiveness index,
Australia is having the ranking of 27 in terms of technological readiness. This denotes that
Hanson Pizza Bar and Restaurant is having the access to the latest technologies and innovation in
the country (weforum.org 2018). However, it should also be noted that favorable technological
environment will help other new entrants also in enhancing their service delivery process and
this will further increase the competition for Hanson Pizza Bar and Restaurant.
However, on the other hand, there are number of challenges also be faced by them in
terms of the technological factors. One of the major challenges for them will be the rapid change
in the technology. In the recent time, technology is rapidly changing and evolving, which is a
challenge for the business organizations to match up. In the case of Hanson Pizza Bar and
Restaurant, they are facing the challenge of coping up with the development in the technology.
This is also causing them added cost in adopting newer and latest technologies. Another major
challenge for them will be the security in the payment portal for the customers. This is due to the
reason that in the recent time, there are number of instances being emerged where it is seen that