Business Analysis of Shepherd and Dog Restaurant: Component-2 Report

This report provides a comprehensive business analysis of the Shepherd and Dog Restaurant, a UK-based establishment. The analysis begins with an introduction to project management principles, setting the stage for a situational analysis that identifies both internal and external factors impacting the restaurant. PESTLE and SWOT analyses are employed to evaluate the political, economic, social, technological, legal, and environmental factors, as well as the restaurant's strengths, weaknesses, opportunities, and threats. Furthermore, the report explores potential business strategies and possibilities through the application of Porter's Five Forces model, assessing competitive rivalry, the threat of new entrants, substitute products, and the bargaining power of suppliers and customers. The report then details a plan of action, incorporating tools like Cost Benefit Analysis (CBA) and Suitability, Acceptability, and Feasibility (SAF) analysis to support strategic decision-making, with a vision and mission statement. The project builds upon previous coursework, offering a detailed framework for improving the restaurant's performance and ensuring its long-term sustainability in the UK market.

Component-2
Coursework

INTRODUCTION...........................................................................................................................1
SITUATIONAL ANALYSIS..........................................................................................................1
Appropriate trends to perform an external and internal factor analysis of an organisation in a
suitable manner............................................................................................................................1
POSSIBILITIES..............................................................................................................................4
PLAN OF ACTION.........................................................................................................................6
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Project management refers to the activity of planning, controlling, initiating, and closing the
work of an employees or a team or accomplishing the task or projects to meet the desired criteria
and done in specified time period. The main objective of project management is to achieve the
overall challenges within the given guidelines and constraints. This report is based on Shepherd
and Dog restaurant that is a United Kingdom based local restaurant, and offered seasonal food to
the people who are their customers and it is previously taken in component 1. It includes
situational analysis and problem identification for a company which is based on UK. In this they
used PESTLE Analysis and SWOT Analysis to indentify the external and internal factors. It also
shows the possibilities i.e. options and specific project with the helps of porters five forces model
and further makes a detailed plan that helps the business in earning more profits and longer
stability in the current market of UK. it can be explained with the risk assessment table,
stakeholder tables to justify the problems and risk and provide time frame for solving the
problem. This project is carry forward from the coursework of component 1 and it is interlinked
with this (Kerzner, 2017).
SITUATIONAL ANALYSIS
Appropriate trends to perform an external and internal factor analysis of an organisation in a
suitable manner
To indentify the internal and external factor manager of Shepherd and dog restaurant apply
PESTLE and SWOT analysis. Facts and information about this can be explained below.
PESTLE Analysis
It refers to a best technique to examine the opportunities and threats that were arise in the
external environment. Manager of Shepherd and Dog Restaurant analyse their business situation
by finding the opportunities and reducing the threats that was faced by the company. This entire
factor can be explained below.
 Political factor- This factor impact the Shepherd and Dog Restaurant business and their
foods, as the government of the country influences more on to take proper health
regulation on regular basis so it taking care of the customers and the employees who are
working. They regularly check the cleanliness and hygienic standard in the restaurant.
This helps in earning more profits and reducing the employment turnover. They also
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follow the proper rules of tax rates and the labour laws. Manager also follows trade
restrictions along with the traffics to maintain and organise the stability in the standard of
food and the restaurant image.
 Economic factor- This factor includes two factors first is minimum wage and second is
health of the economy. In UK wages of a person is good and the stable economic
conditions this will positively affect the Shepered and Dog Restaurant as they attract
more customer and this will increases the sales of the firm and also helps in growth of the
company (Fleming and Koppelman, 2016).
 Social factor- people of United Kingdom are very open minded and they prefer and adopt
those product and food which are beneficial for their health. Although they are very
health conscious. In this manager of a Shepherd and Dog Restaurant plans to make
healthy and organic food that attracts more people of the country and helps in earning
more and more profits. If they sale healthy food it will increases its sales buy maximum
people purchase them.
 Technological factor - This include the technological advancement that a company use to
innovate a product and promote their offering to the customers. To make a successful
business and longer sustainability company use effective technology. In context of
Shepherd and Dog Restaurant, manager use social media technology to show their online
presence. Because of this many people attract and move to visit the restaurant. This will
increase the sales and brand image of the firm. Using advanced technology helps in
retaining the customers for maximum time (Aithal, 2016).
 Legal factor- This factor includes the legal laws that were adopted by the company for
securing the company products and for not harming the people. In context of Shepherd
and Dog Restaurant, manager can take a liquor licence and adopts a health and safety act
safe their employees and customers. This will retain the employees for longer time and
increases the sales of the company.
 Environmental factor – This factor includes the environment in which a firm operates. A
manger of Shepherd and Dog Restaurant provide a healthy food and drinks to their
customers and make some differentiation in this to beat the rival organisations and for
increasing the sales and profits of the company.
SWOT Analysis
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This factor analyse the business internal situation so that they finds the strength and
weaknesses and make work on them. Manager of Shepherd and Dog Restaurant use this
technique to analyse the situation their employee’s performance and how they increase the sales
and profits of the firm. This all measures can be explained below.
Strength Weaknesses
 High customer satisfaction - Shepherd
and Dog Restaurant offers their
customers a standardised goods and
services this will attract more
consumers and increase the loyalty
among the people of the company
(Abbott, 2015)
 Gains attention of people- The
Company provide seasonal food, dishes
and drinks this will gains the attention
of local area people and customers in a
well- suited manner.
 Operates on local level- The major
weakness of this restaurant is that they
established on local level this will not
attracting more customers from the
others areas and their services can be
taken by limited numbers of people.
 Provide only limited foods- Shepherd
and Dog Restaurant offers limited
number of variety of foods this will
sometimes unsatisfied the people and
decrease the sales.
Opportunities Threats
 Using advanced technology- Shepherd
and Dog Restaurant use social media
tool to promote their business online
and make e-commerce trade ( face
book, Instagram and you-tube). This
enhances the sales and revenues.
 Varieties of food - Company can deal in
other food varitypes lithe Chinese and
continental this will helps in enhancing
the profits by increasing the sales.
 Changes in people taste- Change in
consumer preferences and taste affect
the business sales and profits. This is
the major threats that was faced by the
Shepherd and Dog Restaurant.
 Present rival firms- There are many
competitors are present in the local area
with best and many varieties of foods
this will dissatisfies the customer and
people easily switch over the rival
firms.
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POSSIBILITIES
This shows the awareness and the number of possible approaches that was taken by
Shepherd and Dog Restaurant. For this they involve Porters five forces model that can be
explained below (Fozer and et. al., 2017).
Porter’s five forces model
This factor helps in analysing the competition in the current business environment. It is a
framework that determines the attractiveness of an industry, competitive intensity on the
basis of the profitability. In context of Shepherd and Dog Restaurant, manager use this
model to evaluate the competitive advantage so that the important modifications can be done
in a time manner.
 Rivalry among existing customer – It determines the number and capability of a
rival firm in the market place. Because competitors offerings homogenous products
offerings this will reduce the attractiveness in the market place. In context of
Shepherd and Dog Restaurant there are many competitors present on the local level
this will reduces the sales of the company. For more customer attractiveness firm use
to differentiate their products from the other firms (Güre and Tat 2017).
 Threat of new entrants- This indicates the fear of entering the new firms in the
same industry. Shepherd and Dog Restaurant operates on local level so there is fear
of opening a small scale or big food company. Because of entrant of new comer it
reduces the sales and profit margins.
 Threat of substitutes- This is the factor which is related to the substitutes of a good
that is present in the market. This force of low in the restaurant context because
there is no substitute present for the food and beverages. This will benefited the
respected company sales and helps in attracting more customers.
 Bargaining power of suppliers- Suppliers are the one who supply raw material to
the firms so that organisation make output and earns profits. In context of Shepherd
and Dog Restaurant, there are high power of suppliers because it is operated on
small level.
 Bargaining power of customers- Consumers paly a vital role in the company
success. In context of Shepherd and Dog Restaurant, if the customer like the food
and beverages it increases the sales and if they don’t like the products and services
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they offered it reduces the profits by decreasing sales. To attract many customers
they offer innovative products which differentiate it from other rival firms. This
helps in enhancing the revenues of the firm.
There are various models and plan that was used by the manager of the respected company to
justify the following approach and also grow their business and earn more profits.
CBA
It refers to the cost benefit analysis which is basically used to analyse the business
decisions. It includes the addition of benefits and actions that helps in generating liquidity and
revenues for the business and subtracts the cost that is not beneficial for completing the
organisation activities. Manager of Shepherd and Dog restaurant analyse the company overall
cost by using cost benefit analysis so that they eliminate the wastage which helps in maintaining
the cost and invest more on those resources which give best outcomes for the firm. It helps in
decision making process of the company by which organisation can achieve the task on time
with more cooperation and coordination among the team members. It also helps in satisfying the
customer and boosts the morale of the employees by providing incentives for their good work.
This factor is related to the financial metrics that is helpful in reducing the cost. So that the
enterprise may earn more and more profits with high sales (Yu and et. al., 2016).
SAF
It is denoted as a suitability, acceptability and feasibility. It is useful for a respected
company to make a strategy for their business so that they implement and assess the use of
strategy in a very effective manner. To evaluate the whole plan and Factors Company make SAF
analysis.
 Suitability- By using this factor Shepherd and Dog Restaurant manager analyse the
suitable environment, its capability and suitability so that company can earn more
revenues. According to the suitability company can reflect their needs that match the
environment and customer preferences.
 Acceptability- This method helps the respected company to measure returns, risk and
stakeholder’s reactions when they differentiate their products from the other firms launch
different product range. In this manager examine the risk and return for the sale of the
new product range or innovative product like healthy and organic food.
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 Feasibility- In this strategy plan manager of a concerned company chooses the feasible
strategy and remove the bad one like that does not give any profits to the restaurant. It is
related to the manpower, equipment, materials and markets. It helps in achieving the
target on time and longer sustainability in the market place.
This strategy model of business helps in marinating the performance, working environment so
the employees are working very efficiently and effectively (Phadermrod, Crowder and Wills,
2019).
Vision
The vision of the Shepherd and Dog Restaurant is to satisfy the customer by providing
the healthy foods as per the demand of the consumers.
Mission
The mission is based on the vision that to longer sustainability in the market place by
using advanced technology and effective employees. They prodive differentiate product to thier
customers that does not copied by the rival firms.
Objectives
The main aim is to earn more and more profits by customer satisfaction and by providing
clean hygienic environment to attract many people.
Marketing mix
It is the important elements that are make to launch the new product that differs from the
other rival firms. In this they sales the healthy and organic foods to their customers because
people in UK are more conscious about the health to making in this mind they use to give their
customers a healthy food and beverages. Because of differentiation in their products they choose
the price according to themselves. To promote their business respected company use social
media like face book, you-tube etc. to attract more and more customers (Abdel-Basset, Mohamed
and Smarandache, 2018).
PLAN OF ACTION
It refers to the organized program that is used to measure all the functions and actions thet is
helpful in achieving the goal in a specified time. Manager of Shepherd and Dog restaurant
make a action plan to identify the risk, stakeholder and resource management that is helpful
in achieving the profits and revenues.
Project life cycle management
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It refers to the activities that are beneficial for completing and achieving the task on time.
It includes various dimensions i.e large and small. In this cycle of project management there are
four phases which are- initiation, planning, execution and monitoring, controlling and closing
phase (Mathooko and Ogutu, 2015).
 Initiation stage- It is the first phase which is required to start a new project. This step
analyse what project should accomplish. For this manager of the respected company
includes the shareholders matrix. In this company start to make a plan for developing the
product like healthy and organic food and beverages to their customers.
STAKEHOLDER ANALYSIS:
The stakeholder analysis is process to determining the analysiation of of system and
potential changes which is relates to the relevant interested parties. Their interested parties are
generating the plans and policies regarding with the projects. Stake holder analyse is a part of
Stake holder management where it consisting of balancing the demand on a venture by each one
of them those who have claim on it. It mapped on the basis of power and interest which defines
the stakeholder influence in market structure.
The stake holder Matrix derives the power and interest of stakeholder influence in the
market as well in business firm.
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Keep Satisfying
(it helps to their needs)
Balanced Closely
(They are key players)
Monitored
(For having knowledge)
Keeping Informed about situation
(Show consideration)
Red Line – Shows power segment and Blue Line- Shows the Interest Segment
 Stakeholder having the high power and high interest which are major ones that are having
the strong investment in the project.
 Stakeholder having the high power but if they having low interest it gives a satisfaction.
 If having a low power but high interest it can increase the level uncertainty in terms of
loss or influence of nothing to gain.
 And if the stakeholder are low power and low interest can be profitable and they can
became more powerful which can affect the project in the future(Miao, Chavan and
Deshpande, 2017).
Role of Stakeholder Analysis:
 Employees: they are primary affected from the stakeholder in terms of economic well
being, They basically work when having the half of owner ship of a particular
company. As an employee in stakeholder activities the decision of management
which can affect the concern which are importantly for stakeholder priorities.
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 Consumers: The consumers are more individuals who buying a product or services,
and they want the particular business success whom they are part of it because the
loss is also affect organisation the as well consumers, by which the consumer is
deeply study the market after that they invest capital into it.
 Shareholders: Shareholders are being always remains the stakeholders corporation,
but stakeholders are not always be shareholders. A Shareholder owns the shares
which rae part of the public company through shares of stocks where the stakeholder
have a interest based income which is depend upon the performance of the company’s
stock.
 Project planning stage – This is the second and the most important stage which covers
the 50% of the whole process. In this phase manger of the concerned company. It should
be executed before the initial plan is finished. In this firm includes risk assessment matrix
and resource management matrix by using this manager make a plan and reduce the
problem after identifying it. So that they make the product differentiation very smoothly
and earns high profits and growth. In this manager also estimates the resources that are
used in developing the products like human resource, financial resource and technical
resources. And note the time duration on the basis of which work can be done with the
estimated resources. In this financial manager make a budget for it and further all the
activities done on the basis of this. Manager plays a important role in doing and
completing all the functions by controlling all the function and activities of different
departments so they achieve the target on time.
RISK MANAGEMENT :
Risk Management is the identification, analysation and evaluation of procurement of risk,
by doing of that to reduce the uncertainty, economical resource to minimise, monitored and
control the chances of upcoming unfavourable outcomes which can maximisation of realization
of opportunities.
There is risk management matrix which helps to provide the minimisation of uncertainty
for particular business venture as we are taking Shepard and Dogs company :
RISK AND
RESPONSIBILITY
SEVERITY CONSEQUENCES ACTION
TAKEN
TIME
FRAME
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