Strategic Analysis: Business Environment of Raby Hunt Restaurant

This report provides a comprehensive analysis of the business environment surrounding The Raby Hunt restaurant, a Michelin star establishment in the UK. It utilizes PESTEL and SWOT frameworks to evaluate the macro and micro environmental factors influencing the restaurant's operations. The PESTEL analysis examines political, economic, social, technological, environmental, and legal aspects, highlighting the impact of Brexit, COVID-19, and changing consumer preferences. The SWOT analysis identifies the restaurant's strengths, weaknesses, opportunities, and threats, focusing on communication inefficiencies and competitive pressures. Furthermore, the report discusses Porter’s Generic Strategies, recommending a differentiation strategy to leverage innovation and customer experience. The analysis emphasizes the importance of adapting to evolving market trends and ethical considerations for sustained success in the hospitality industry.

INSTITUTE OF
HOSPITALITY AND
TOURISM

Table of Contents
Part 1: Introduction..........................................................................................................................1
Outline and background of industry sector and chosen organisation.....................................1
Part 2: Analytical framework and concepts.....................................................................................2
PESTEL analysis....................................................................................................................2
SWOT analysis.......................................................................................................................4
Porter’s Generic Strategies.....................................................................................................5
REFERENCES................................................................................................................................6

Part 1: Introduction
The concept of the business environment tends to comprise and includes of the sum total of
the all factors that tend to include the external as well as the internal factors that have a great
influence on the functioning and decision making of an organisation (Xu and et. al., 2022).
Further, business environment covers all the forces such as the customers, competitors, suppliers,
government, and the social, cultural, political, technological and legal conditions that directly or
indirectly effects the business operation and decision making of the business organisation. Along
with this, it has been seen and reviewed that the internal aspect of the business environment
tends to consists and comprises of the forces that exists within a firm and organisation that
influence the strategy formulation process and decision making. On the other hand, the external
factors tend to comprises and consists of the forces that are outside the business organisation but
tend to have a significant influence on the business operation and functioning of the organisation.
Further, the main aim of the current project is to get a better understanding about the business
environment of the Raby Hunt restaurant including its internal as well as external environment.
Further, the main objective of the current project is to discussion and analysis about the
analytical framework and concepts through making use of PESTEL analysis and SWOT analysis
along with reviewing the competitive advantage of the selected organisation. Further, to review
and discussion about the importance of business ethics and ethical considerations (including
CSR) in today’s business environment is also tend to be the main and vital objective of current
investigation.
Outline and background of industry sector and chosen organisation
The organisation selected for current project is The Raby Hunt which is a well-known
and famous two Michelin star restaurant that is tend to be located in Summerhouse, County
Durham, United Kingdom. Further, the selected The Raby Hunt restaurant is than a dot on the
map, but the hamlet of Summerhouse now boasts one of the north-east’s more ambitious and
‘evolving’ kitchens along with a magnificent wine cellar to boot (Raby Hunt, 2022). Along with
this, the Raby Hunt restaurant tend to be occupying a Grade II-listed former inn once frequented
by the eponymous hunt, this reinvigorated restaurant-with-rooms is elegantly contemporary in
style with proceedings now focused on just one über-sophisticated tasting menu of 15 courses
from the cutting edge of modern British cuisine. Further, The Raby Hunt restaurant tend to
1

whilst it is housed in a 200 years old Grade II listed building the restaurant itself was opened in
2009 as chef James Close's first. It gained its first star in 2012 and its second in 2016, making it
(as of January 2019) the only establishment in North East England to reach that status. Further,
the Raby Hunt restaurant also tend to offer and provide the flavours collide in a tart of mango,
yuzu and coconut, while black olive and chocolate keep company with sheep’s yoghurt. Service
is top-drawer, and the magisterial wine list offers pedigree, class and value across the range
(McCartney and Kwok, 2022).
It has been seen and analysed that the goal of the hospitality industry is to provide
customers with an enjoyable experience. Further, the hospitality industry tends to includes and
comprises of a broad category of fields within the service industry that includes lodging, food
and drink service, event planning, theme parks, travel and tourism. It includes hotels, tourism
agencies, restaurants and bars. it has been seen and analysed that hospitality industry tends to be
the one of the most dynamic business sector and industry in which many new trends and
dynamic keeps on involving. But recently a down fall is being seen within the hospitality
industry in form of sudden lockdown and strict social distancing norms leads out by Covid-19
that is creating a negative impact and hindrance within the overall business environment of
hospitality industry (Kotur and Dixit, 2022).
Part 2: Analytical framework and concepts
Analytical framework and business plan tend to generally gives and provide a conceptual
base and also tend to summarizes the key business concepts that supports better understanding
and review of the business environment of an organisation. The application of the various theory
and concepts in context of The Raby Hunt restaurant and hospitality industry has been provided
as below:
PESTEL analysis
PESTEL analysis tend to be a very useful and effective business and management tool
that provides and supports the better analysis and understanding about the macro environmental
factors along with its influence and impact on business strategic decision making. The key
aspects and factors presented by PESTEL framework has been discussed and analsysed as below
in context of the Raby Hunt restaurant:
2

Political factors- There are various ways in which the government decision and strategy
formulation tend to impact and influence the hospitality industry that comprises of taxation
polices, trade policy, etc. The UK tend to have a stable political environment that have a positive
impact on the business operation and functioning of the Raby Hunt restaurant. But the recent
issues and referendum of Brexit is tend to creating a higher level of instability and complexity
within the political environment of UK that is having server impact on the business operation of
the Raby Hunt restaurant. The referendum of the Brexit tend to lead to strict foreign trade that is
creating issues and challenge for Raby Hunt restaurant in form of delays and complexity in
supply of the raw material required within hospitality industry (Minor and Heyes, 2022).
Economic factors- It has been seen that the economic is tend to greatly affect by the
hospitality industry and it also have significant impact on the business operation of the
hospitality industry that comprises of financial stability along with growth rate, unemployment
rate, buying power of customers, etc. The UK tend to have a stable and growing economic which
supports better growth and expansion of the Raby Hunt restaurant in for of more international
tourists and higher spending on leisure. But recently, the spread of the covid-19 pandemic tend to
create and lead out many issues and complexities for the business operation and functioning of
the Raby Hunt restaurant in form of sudden lockdown and strict social distancing norms. Thus, at
present the, hospitality industry of UK is facing a downfall along with issues of financial crisis
and limited productivity that also caused permanent and temporary closure of many organisation
and restaurants (TT and et. al., 2022).
Social environment- It tend to includes consumer preference and attitude of the society
that is keep on changing thus creating many issues and challenges associated with dynamic
customer needs for the hospitality sector of UK. It has been seen and observed that the society of
UK is tend to always attracted in favour of fast food culture that is supporting and leading higher
expansion and opportunity for hospitality industry and Raby Hunt restaurant. But recently a shift
in the consumer preference and taste towards and in favour of the organic food is also seen that is
creating an opportunity for Raby Hunt restaurant to have adding of new dishes and better item to
attract and cater larger number of customers (Ali, Grabarski and Konrad, 2022).
Technological – The technological factor tends to comprises and includes of the ongoing
improvement between the technology that is supporting and leading higher level of business
advancement within the operation and function of the hospitality industry of UK. It has been
3

seen and analsysed that the rapid improvement and betterment in the technology is leading and
tending to have a positive impact on the business operation of the Raby Hunt restaurant as it
supports shift towards digital and online services that supports and cater larger number of
customers and also supports smooth functioning and higher productivity for hospitality industry
even during the times of Covid-19.
Environmental factors- This aspects of macro environment is tend to associated and
related with the preservation and protection of the environment that is leading a significant
impact on the hospitality industry of UK along with the business operation of the Raby Hunt
restaurant. The customers of the UK tend to become more conservative and protective towards
environment thus, it is creating pressure for the Raby Hunt restaurant to make a shift and using
of the renewable and eco-friendly resources along with having a check on the carbon emission
and other form of pollutants (Li and Zhang, 2022).
Legal factors- It tend to have a significant influence on the business operation of the
hospitality UK as many new legislation and laws has been made to protect the rights of
customers and employees that is creating pressure and many new challenges for the Raby Hunt
restaurant. For instance, it has been seen that in UK, hoteliers must comply with the Gas Safety
(Installation and Use) Regulations 1998 to protect the welfare of their guests.
SWOT analysis
It tends to be a vital and essential management framework that supports review of the
internal and micro aspects of an organisation. The implication of SWOT analysis in context of
the Raby Hunt restaurant has been provided below that is depicting its strengths, weakness,
opportunity and threat:
Strengths Weakness
 Providing a safe and comfortable
atmosphere along with delicious and
wide menu range
 Creative and innovative chef and
employees.
 Effective marketing strategy based on
use of digital and social media.
 Ineffective communication and delays
in food preparation (Lee, 2022).
Opportunity Threats
4

 Digital technology is offering effective
way to have higher expansion and
growth opportunity.
 Opportunity in field of supporting eco-
friendly and sustainable development of
the hospitality industry.
 Covid-19 and Brexit are creating many
challenges
 Cut throat competition in hospitality
industry of UK
Porter’s Generic Strategies
Use of the Porter’s generic strategy is being made by a business organisation to have
better strategy formulation and decision making which supports and brings out higher
competitive advantage for the company. The four main strategy that is being provided by the
Porter’s Generic Strategies is evaluated below in context of the Raby Hunt restaurant:
Cost leadership strategy- Under implication and use of the cost leadership strategy the
Raby Hunt restaurant tend to focus and emphasis on the reducing its cost in order to deliver
economical and affordable products and services in order to attract and cater a larger number of
customers (Smith, 2022).
Differentiation strategy- This strategy tends to comprises of the making of the efforts by
the Raby Hunt restaurant to ensure and differentiate its product and services from its
competitors. Thus, the differentiation strategy tends to includes and comprise of having review
of current market trends and making regular changes and modification and improvement in the
product and services to attract and cater larger number of customers.
Cost focus strategy- The cost focus strategy tend to includes and comprises of targeting
niche market by the way of becoming expert and offering product at lower profit margin.
Differentiation focus- This strategy also tend to include of focusing and entering a niche
market by the way of improved and higher level of creativity and innovation within the product
and services.
On the basis of the above discussion, adoption of the differentiation policy is tending to
be most suitable an effective for the Raby Hunt restaurant as it supports higher creativity and inn
ovation in services to attract and cater larger number of customers. According to the adoption of
the differentiation strategy The Raby Hunt tend to present and offers a smaller version of its
5

tasting menu on Saturday lunchtimes along with an extra special experience comprising of the
recommend plumping for a seat at the restaurant’s Kitchen Table, where the team of chefs
prepare the meal right in front of very eyes of customers, with a few surprise courses making an
appearance too (Lui and Goel, 2022).
REFERENCES
Books and journal
Xu, J. and et. al., 2022. Fostering Work-integrated Learning in Hospitality and Tourism: An
Integration of Leximancer and Students’ Self-reflective Statement Approaches. Journal
of China Tourism Research, pp.1-25.
McCartney, G. and Kwok, S.S., 2022. Closing the Gap between Hospitality Industry and
Academia Research Agendas: An Exploratory Analysis Case Study. Journal of Quality
Assurance in Hospitality & Tourism, pp.1-19.
Kotur, A.S. and Dixit, S.K. eds., 2022. The Emerald Handbook of Luxury Management for
Hospitality and Tourism. Emerald Group Publishing.
Minor, K. and Heyes, A., 2022. 50 Shades of the Luxury Hospitality Industry. In The Emerald
Handbook of Luxury Management for Hospitality and Tourism. Emerald Publishing
Limited.
Ali, M., Grabarski, M.K. and Konrad, A.M., 2022. Women in hospitality and tourism: a study of
the top-down and bottom-up dynamics. International Journal of Contemporary
Hospitality Management.
Li, F. and Zhang, L., 2022. The Influence of COVID-19 on Vocational Hospitality and Tourism
Students’ Career Choices. Journal of China Tourism Research, pp.1-18.
Lee, K.H., 2022. Luxury Hospitality and Tourism during the Pandemic. In The Emerald
Handbook of Luxury Management for Hospitality and Tourism. Emerald Publishing
Limited.
Smith, J., 2022. ‘The Butler Did It!’Luxury Accommodation Management in Tourism from the
Caribbean to the Pacific Islands. The Emerald Handbook of Luxury Management for
Hospitality and Tourism.
Lui, T.W. and Goel, L., 2022. Learning effectiveness of 3D virtual reality in hospitality training:
a situated cognitive perspective. Journal of Hospitality and Tourism Technology.
TT and et. al., 2022. Social media research trends in tourism city context. International Journal
of Tourism Cities.
6

Online:
Raby Hunt. 2022. [Online] Available Through:< https://www.squaremeal.co.uk/restaurants/raby-
hunt_4751 >.
7