Kricket Restaurant: Developing Business Enterprise Report - Melbourne

This report details the business development strategy of Kricket, a London-based restaurant, for its expansion into Melbourne, Australia. It begins with an executive summary and provides an overview of Kricket, highlighting its Indian cuisine and market positioning. The report explores the enterprise development concept, market development, and internationalization strategies. It includes a PEST analysis of the Australian market, assessing political, economic, socio-cultural, and technological factors, and applies Porter's Five Forces to analyze industry competition. A SWOT analysis of Kricket Soho is presented, followed by defined business objectives and an STP analysis, which covers market segmentation, target customers, and positioning. The report also outlines the marketing mix of the enterprise strategies, internationalization strategy and provides a business model canvas. The conclusion summarizes the key findings and recommendations for Kricket's successful entry into the Australian market. The report emphasizes the competitive landscape and the importance of maintaining quality and service to replicate its London success in Melbourne.

Running head: DEVELOPING BUSINESS ENTERPRISE
Developing Business Enterprise
Student’s name:
Name of the university:
Author’s note:

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Executive Summary
This report highlights the business development strategy of Kricket, a London based restaurant.
Kricket restaurant is going to expand its business at Melbourne in Australia. Kricket restaurant
mainly offers Indian cuisine with fine delicacies. Australia has stable politics and fast food
restaurant has seen annual 3.5% growth. PEST analysis and Porter’s Five strategies have been
explained. In Melbourne, the competition in the restaurant industry is very high as there are
many other restaurants already present in the market. Kricket has its reputation in London market
and they have to carry the same quality food and service in the Australian market. In addition,
Kricket will provide the same menu in Australia and it will take low-cost leadership strategy.
Promotional strategies of Kricket will be social media marketing as it is cost-effective. Kricket
restaurant can take franchise strategy for expanding the business as it will be easy to promote the
business in Australia. A strategy model canvas has been provided in order to visualise the
concept of enterprise development.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Overview of the business, Kricket restaurant..............................................................................3
3. Enterprise development concept..................................................................................................4
4. Market development, internationalisation of business................................................................4
5. External environment analysis.....................................................................................................5
5.1 PEST analysis........................................................................................................................5
5.2 Porter’s Five Forces...............................................................................................................6
6. SWOT analysis of Kricket Soho..................................................................................................8
7. Business objectives....................................................................................................................10
8. STP analysis..............................................................................................................................10
8.1 Market segmentation...........................................................................................................10
8.2 Target customers..................................................................................................................11
8.3 Positioning statement...........................................................................................................11
9. Marketing Mix of the enterprise strategies...............................................................................12
10. Internationalisation strategy was taken by Kricket Restaurant................................................14
11. Business Model Canvas...........................................................................................................15
12. Conclusion...............................................................................................................................18

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1. Introduction
Small enterprise development strategies are helpful for an organisation in order to
strengthen the entrepreneurial management skill. Enterprise development programme is taken by
a small firm to build the capacity and training for resources in order to foster the growth
(Emerson and Twersky 2016). A small firm can grow its business taking the enterprise business
strategies and it involves government and businesses to support the firm with finance. This report
highlights the UK based restaurant; Kricket’s expanding strategy to Australia.
Internationalisation of small business is the key-word of this report. Philanthropy, self-interest
and enlightened thought prompt the firms to support enterprise in developing the business. In this
report, SWOT analysis of Kricket Soho has been conducted and external environment of
Australia regarding restaurant industry has also been explained. Marketing mix of the restaurant
and business canvas model has been described to underpin the enterprise development concept.
2. Overview of the business, Kricket restaurant
Kricket is one of the few restaurants in London that is a modern memoir of time spent
and working in India, where the concept of this restaurant started. Kricket is situated at Soho, an
area of the City of Westminster, west part of London. Kricket restaurant provides combining
British ingredients with authentic flavours, spices and aroma of India. The main focus of this
restaurant is to serve the guests with seasonal and modern Indian food and drinks in a relaxed
space (Kricket.co.uk 2018). The journey of Kricket started in the year 2015 with just 20 seats
with a shipping container. In the last year 2017, it opened its permanent restaurant at Soho and it
offers best counter dining with open kitchen. It has a cocktail bar with large communal tables. 14
staffs work in this restaurant.

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Opening hours:
Mon-Sat (12pm -2:30pm and 5:15pm -10:30pm)
3. Enterprise development concept
Small businesses have been focusing on sustainable development in order to be well-
recognised. However, enterprise development concept is protecting an organisation’s capital base
to recognise the possibility of extending the notion to human and natural resources. As stated by
King and McGrath (2016), innovation propels the economy of a firm to a new level. Enterprise
development refers to the creation of a new branch or expansion or redevelopment of existing
enterprise. In addition, the critical success of a firm lays in the viable ideas behind the enterprise
development steps. In case of entrepreneurs, they need to materialise actions about enterprise
development to create new values for the business (Adegbite 2014). The management of a small
firm needs to create interest by stepping to enterprise activities to generate funding or take
assistance to support the objectives of the firms.
4. Market development, internationalisation of business
In this report, Kricket restaurant is chosen to show its opportunity to expand the business
in another country. Chosen country for development of the restaurant is to open a new branch at
Melbourne in Australia. Market development can be considered as growth strategy to identify a
new segment for current offering of the firm (Kuznetsov et al. 2015). Kricket restaurant needs to
take strategies to open a new branch at Melbourne by targeting non-buying customers. Market
development is a process to grab untapped market and it starts with researching the market as
well as its opportunity. Moreover, internationalisation is the method of increasing involvement of

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a firm in international market. Small firms need to take strategies in order to enter new market
and market development increases customer base as well as profitability of the organisation.
5. External environment analysis
Kricket restaurant is going to enter Australian market and changing social and people
trends have driven good revenue growth for the restaurant industry in last five years. It has been
observed that annual growth of the restaurant and fast food industry in Australia is 3.5% (2013-
2018). Australia has more than 26,150 registered restaurants (Ibisworld.com.au 2018)
5.1 PEST analysis
Political: Political condition of Australia is stable for now and it has two major parties,
Liberal party and National party. Australia follows Federal government structure and it is based
on liberal democratic structure. The power of the politics is vested on federal and
commonwealth. Australia is considered as world leading business destination as the geopolitical
condition of Australia is suitable for new business to move into here. Trade export and import,
non-government agency and investment opportunity are there for a business to grow in the
market. Australian government provides rebate to the newly opened business and it provides
avenue to connect investment, business partners and right trade (Ablo 2015). The UK and the
USA are the major trading partners of Australia and Australia has open market with minimum
restrictions in exporting and importing services and goods. Total FDI (Foreign Direct
Investment) grew to 7% in 2017 and Australia was ranked 12th largest destination of world direct
investment in 2017 (Ibisworld.com.au. 2018).
Economic: Australia is a good place to expand the business as it is growing and resilient
economy, it provides stable economic growth with excellent infrastructure for future

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development of the organisation. Australia has good and fast access to the rest of the fast-
growing regions across Europe and Asia-Pacific nations through water and air transports. In the
restaurant industry, it has been observing the revenue of Au$ 20 billion and it provides an
opportunity to 288,850 employments in Australia (Cunningham et al. 2017). Australia’s GDP
was 1.205 trillion USD in the year 2016, however, the revenue is anticipated to fall by 1.0% in
the following year due to discretionary income restrict in spending industry wise. The inflation
rate rose approximate 0.5% in 2017 (Ibisworld.com.au. 2018).
Socio-cultural: Australia has a large portion of aborigine section and a certain part of
Australia covers educated section. In metropolitan cities, people can spend for the fast food and
the changing taste of the Australians has brought change in Australian cuisine. English is the
most common language spoken in Australia and adult literacy rate in Australia touches 97%.
Australia has large fishing zone and few iconic foods in Australia are hamburger, Pavlova and
vegemite (Curran and Storey 2016). However, people are getting health conscious and restaurant
needs to spend money to make the food nutritious.
Technological: Restaurant industry does not need higher technology and technological
demand is restricted to equipment in kitchen and decoration. In Melbourne area, there are many
restaurants which use technological innovation in the restaurant industry. People in Australia use
internet and restaurant can use the internet to reach the new customers.
5.2 Porter’s Five Forces
Porter’s Five
Forces
Description Forces

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Industry rivalry In Melbourne, Kricket restaurant is going
to face tough competition as the restaurant
market is saturated. There is high number
of restaurants already there, high
aggressiveness of restaurants and fast food
firms and low switching cost of the
customers are some of the important
factors.
High
Threat of new
entrants
A new entry in the restaurant industry in
Australia is high as the customers have low
switching cost and capital cost is moderate.
The new restaurant low cost in brand
development, therefore, it is not expensive
for a restaurant to develop a brand (Dolgih
et al. 2015).
Moderate
Suppliers’ power Kricket restaurant offers authentic Indian
food and there are large numbers of
suppliers already there. The overall supply
of the raw materials is high and low
forward vertical integration is seen in the
market, therefore, the suppliers do not
have distribution network linked.
Moderate
Buyers’ power In the restaurant industry, the power of the

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customers is high as their changing
demand can alter the market scenario.
There are large numbers of providers in
Melbourne and high availability of
substitutes in the market (Lang and
Heasman 2015). However, Kricket is
going to offer authentic Indian food,
therefore, it will provide extra value for the
restaurant.
Substitutes In Melbourne, there are numerous
restaurants there; high substitute
availability is there for Kricket. The
customers have low switching costs and
the high performance-to-cost ratio is there.
8bit, Betty’s Burger and Concrete, Coda,
Sheraton and Maha can be competition for
Kricket. There are some Indian restaurants
also, Cafe Brass, Gaylord Indian
Restaurant, Curry Vault and Red Pepper.
High
Table 1: Porter's Five Forces of Restaurant industry in Australia
(Source: Self-developed)

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6. SWOT analysis of Kricket Soho
Strengths
 Kricket restaurant provides authentic
Indian foods and it has two years of
experiences in the UK
 It provides quality food at affordable
price
 Free facilities will be given in Australia
with cosy atmosphere (WiFi, parking
space, deliveries and online orders)
 Location will be Melbourne and it will
offer convenient interior design
 International chef that can cook Indian
food well
 Cocktail bar with lounge
Weaknesses
 Kricket restaurant will be new in
Melbourne as the customers are not
accustomed to the name of Kricket
 Service quality good, however, waiting
time is high in the UK
 Poor cash flow
 Restaurant has no previous experience
of expanding the business
Opportunities
 Partnership with other businesses or
education institution
 Higher profit and margins in the UK
 More migrants are coming in
Melbourne
 Indians come in Melbourne
 Service quality is good and
Threats
 Price competition in Australian market
 Rising price of raw materials
 Only follow the primary market
research
 Changing Australian law (Incentives
and taxes)
 Human resource management and new

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management has knowledge of
marketing
recruitment
Table 2: SWOT analysis of Kricket restaurant
(Source: Self-developed)
7. Business objectives
Objectives of Kricket in Australian market are:
 To achieve market share of 2% at the end of 2020
 To gain a strong customer base and repeat customers
 To open two more branches in Australia (Perth and Sydney) in 2020
 To launch a marketing campaign to reach Australian customers and Australia based
Indians
8. STP analysis
8.1 Market segmentation
As stated by Chen et al. (2015), market segmentation is a process of dividing a market
into various small groups based on their similarities. One market segment is totally distinguished
from another market segment. The geographic market segment is based on location and region of
the customers in which they live. Kricket can segment the market by bifurcating the customers
who live near Melbourne. In addition, the demographic market segment is based on the gender,
age, income occupation and socio-economic groups of the customers (Ashurst 2016). Kricket
restaurant can segment the market by taking one of the demographic groups. Moreover, a