BSc BMP6002 Strategic Management: Bistro Restaurant Strategic Plan

This report provides a detailed analysis of strategic management and planning for Bistro Restaurant, a newly established business in Romania. It covers essential dimensions of strategic planning, including the definition of strategic management and a critical assessment of the processes organizations use to determine their strategy. The report evaluates the impact of internal and external environmental variations, using PESTLE and SWOT analyses. It also examines sources of funding for the restaurant and includes a business plan with an action plan based on changes in the internal or external environment. The report also touches on STP (Segmentation, Targeting, and Positioning), vision, mission, objectives, marketing budget, and marketing mix strategies relevant to Bistro Restaurant. Desklib offers this and many other solved assignments to aid students in their studies.

BSc (Hons) Business Management Top up
BMP6002 Strategic Management
Strategic Planning
Submitted by:
Name:
ID:
Contents
1

Table of Contents
INTRODUCTION ..................................................................................................................3
Definition of strategic management .................................................................................4
A critical assessment of the process used by organizations to determine their strategy . . .5
A critical evaluation of the impact of internal and external environmental variation on
organizational strategy External Environment of business organization..............................7
Sources of funding...............................................................................................................11
Review of strategic planning...............................................................................................13
A review of an organisation’s strategic plan (Business Plan), providing an action plan for
the organisation on the basis of a change in either the internal OR external environment.
(The Business Plan is included as an Appendix) ...............................................................15
APPENDIX.............................................................................................................................16
STP(Segmentation, Targeting and positioning)...................................................................16
Vision mission and objectives..............................................................................................16
Marketing Budget for Bistro Restaurant.............................................................................17
Marketing mix......................................................................................................................19
2

INTRODUCTION
In the functioning of a business at the marketplace, it is essential for the management to
take help of professional strategic planning. It is important for a business entity to develop
precise strategic planning, in order to grow at the marketplace (Ahmadian and Jafari Nia, 2019).
Most of the successful international and national companies takes help of professional strategic
management in order to develop effective planning. In this report essential dimensions of
strategic planning are explained in a precise manner. This project includes the factors that cause
impact on internal and external environment of a business. In this project report, a detailed
business plan is also mentioned which is essential to be formulated for a newly started business.
In this project report, example of newly started Restaurant which is named as Bistro Restaurant
is taken into consideration. The Bistro Restaurant is situated in the heart of Romania and
provides quality products and services to different types of customers.
3

Definition of strategic management
The strategic management is main body of a company which play
a crucial role in development of planning and strategies for a company.
In a business, the strategic management is responsible for planning for
major market related operations. The strategic management is also
helpful in eliminating risk associated with various operations. In order to
achieve the long and short term objectives of a business, strategic
management plays a vital role (Al-Dhaafri and Alosani, 2021). In the
recent times, most of the companies in corporate world hire professional
and trained staff in strategic management to increase overall
performance of the company. The strategic management is main body of
Bistro Restaurant which will help the business to grow at marketplace
and gain competitive advantage.
4

A critical assessment of the process used by organizations to
determine their strategy
It is important for a company to determine effective business
strategy for the welfare of whole organisation. It is essential for Bistro
Restaurant to determine a precise and appropriate organisational
strategy in order to lead the marketplace (Andrade and Loureiro, 2020).
The assessment of process which is used by top level management is
necessary to evaluate the whole plan. The organisations should develop
a precise business strategy with the help of following phases:
 Formulate the strategic position- The strategic position is
essential to be determined in order to know the current
strategic position. It is important for a business to identify
effective strategic position in order to develop at
marketplace. The strategic position is essential to be
identified with the help of appropriate evaluation technique.
 Prioritize objectives- The business should set effective
planning objectives for the future in order to establish itself in
the marketplace. The long and short term objective should
be set by the priority in order to perform a systematic
business.
 Develop a strategic plan- This is the third stage in which
development of a strategic plan is performed (Bryson and
Edwards, 2017). In the development of a strategic plan it is
crucial role of business to include management approaches
that are beneficial in strategic planning.
 Execution of plan- This is the second last step in the
formulation of optimal organisational strategy. It is the main
role of management to execute the plan with major
5

responsibility and authority in order to achieve desired goals
and objectives.
 Revise the plan- It is very much crucial for the management
to revise the plan which is executed for a particular financial
year. This is the major responsibility of a company to develop
effective planning in order to revise the whole implemented
plan.
6

A critical evaluation of the impact of internal and external
environmental variation on organizational strategy External
Environment of business organization
Factors that are present in outside of business environment and create problems in
organizations are known as external environmental factors. These factors had a great
impact on the business environment and also create problems in order to make position in
the market (Cooper and Scheg, 2020). In Bistro Restaurant of UK many external
factors are also affect its business environment. In context of Bistro Restaurant, external
factors are discussed with the help of PEST analysis.
PEST analysis
PEST analysis all the external factors that are present in outside the business
environment of any organisation. External factors are affected the business environment for
controlling these factors an organisation use PEST analysis in order to analyses, identify and
evaluate these factors for maintaining strong position in the macro environment. PEST
analysis is a short form of Political, Economical, Social and Technological factors that
effected the business environment of an organisation. Bistro Restaurant use PEST analysis
tin order to analysis these factors that has great impact on its business environment. These
External factors in context of are discussed below:-
Political Factors
Business environment of an organisation are affected from due to intervention of
government or factors that is implemented by government of the country may create
problem for maintaining position in the macro environment for long term (Erbas,
2019). The political factors that impacted in business environment of Bistro Restaurant are
changing taxation policy and government, reduction in costs due to fair trade policy,
implication for businesses due to Brexit and changes in rules and regulation by the
government of UK and other country.
Economic Factors
The factors that are present in economy that may create problem for organizations
in order to maintain long term position in macro environment. Economic factors that
affected business environment of organization are interest rates, inflation rates, economic
growth pattern, foreign exchange rates, etc. The factors that are present in the economy of
7

UK that create problem in the business environment of Bistro Restaurant are Fiscal and
Monetary policies of UK , Rate of inflation, low disposable income and recession.
Social Factors
Social, cultural, personal and psychological changes are affected the social
environment of organisation. The social factors that affected the business environment of
Bistro Restaurant are received flak as non trendy store, chain of product recalls creates
negative social trend and initiatives supporting the surrounding communities helping to cut
down internal costs.
Technological Factors
Continuous changing and modification in technology may create problems in
business environment of organization in order to maintain long term position in the market
(Fahed-Sreih and El-Kassar, 2017). Technology partnership to strengthen risk,
security and compliance are the technological factors of Marks and Spencer.
Analysis of PESTLE-
It is important for the company to analyze whole external environment for the
development of different operations. The companies in international marketplace should
analyze PESTLE with the help of professional strategic management in order to grow at
marketplace. Companies should also focus on developing a precise internal environment
that is suitable for employee development. The Strategic management of the business
should help, company to grow in marketplace with major development. Most of the
successful companies in the global business market conduct PESTLE analysis for better
stability and growth in business functions. The companies also take into account advice of
top level management after analyzing the external environment.
8

Internal Environment of business environment
Internal environment are those factors that are present within the organization and
may affected due to activities, choices and decision of an organisation. These factors can
influenced the decision of the organisation as it already present within a organisation.
Marks and Spencer are also affected by internal factors that are presented within its
organisation. In context of Marks and Spencer internal Environment are discussed with the
help of SWOT analysis. SWOT analysis is a strategic tool which helps organisation to analyze
or identify internal factors that are present within the organization. SWOT analysis help
organisation to analyze its strengths, weaknesses, opportunities and threats in order to
make strong position in the market. Marks and Spencer use SWOT analysis in order to
analyze its Strengths,weaknesses, opportunities and threats for maintaining position in
competitive market. Strengths, Weaknesses, opportunities, and Threats of Marks and
Spencer are discussed below:-
Strengths
Strengths refers to those factors which make strong to an organization in order to
make strong position in competitive market. The strengths of Bistro Restaurant are powerful
retail brand, perceives products, own branded labels, quality stores across and good
number of employees which make it more strong from its competitors.
Weaknesses
Weaknesses are those factors which create problem for an organization in order to
maintain strong position in competitive market. Weaknesses related to Marks and Spencer
are limited market share, strong competitors, and misuse of brand from fake artificial
products.
Opportunities
Opportunities are those factors that are present in the market by adopting them an
organisation get help for maintaining its position in the competitive market (Hannesto
and Surya, 2017). Opportunities that are present in the market for Marks and Spencer
are website development, present new market segment and expand their brand in other
countries.
Threats
9

Threats refers to those factors that may cause problems for the organization for
maintaining strong position in the market. Threats related to Marks and Spencer are
discounted retail prices in other retail prices, government policies and different political
facts of countries.
Analysis of SWOT- The SWOT analysis is a major approach will help Marks and Spencer to
develop revenue and turnover. It is important for a company to develop the strengths and
capabilities in order to develop at the international market. In order to overcome various
challenges of the business at the marketplace, different companies need to evaluate threats
that are present in competition. The SWOT analysis will also help the company to deliver
and develop best working conditions in the internal environment. Also the company will
eliminate the risk associated with various operations that are effective for maintaining
focus. In the major cases, the strategic management of a company develops essential focus
on various operations related to internal environment. The business entity should also take
advice of the internal employees to facilitate decision making. The companies need to
deploy professional leadership style which is suitable for managing large number of
employees. Many successful business firms like Marks and Spencer takes into account
advice of the board of directors to prepare strategy for the growth of internal environment.
Also the company needs to evaluate internal strategic plan with the help of directors to
develop scientific planning. Also the business organizations like Marks and Spencer takes
into account various external environment factors that are essential for vital growth of the
company. The business entity should also focus on major dynamic functions like leadership
to develop and grow at the marketplace.
10

Sources of funding
In order to prepare a business plan, it is major job of financial
management to look for effective sources of funding. The main sources
of funding available to Bistro Restaurant are mentioned below:
Banks Private creditors Angel investors
The banks are
important sources of
funding and finance
which provides
business loan to
different companies. In
the economy of United
Kingdom, many banks
provides loan to
businesses at effective
interest rates. It is
major role of a
business to provide
loan facility to different
business at the time of
urgent need (Weston,
2020). Bistro
Restaurant will also
take loan from
professional banks at a
optimum interest rates
in order to grow
In the marketplace,
there are also private
creditors who are
present to provide
finance at specific
rates. In the case of
private creditors, the
interest rates which are
formulated by the
individuals are very
high. Bistro Restaurant
will take loan from
banks and will avoid
financial creditors who
charges higher interest
rates.
The angel investors
are people who take
desired interest in
business by investing
in financial fields. In
the market of United
Kingdom there are
many angel investors
who can invest in the
operations of Bistro
Restaurant. It is very
much crucial for the
business to develop a
perfect strategy by
keeping into
consideration, the
interest developed by
angel investors. In the
market, angel investors
play a major role in
developing functions
and tasks of the
11

financially. In the
recent times,
government of UK has
also announced good
interest for newly
started business in
order to support
business startups.
company (Yavitz,
2018). The investment
performed by angel
investors should be
there in a significant
manner for sustainable
growth of the business.
12