Strategic Consultancy Report: Tinos Restaurant Business Strategy

This strategic consultancy report provides a comprehensive analysis of Tinos Restaurant, a family-run restaurant in the UK. The report begins with an organizational overview, followed by a detailed situational analysis using PESTLE and SWOT frameworks to assess the internal and external environments. It then reviews and applies strategic choices, including the Ansoff Matrix (market penetration, product development, market development, and diversification) and the BCG Matrix (stars, cash cows, question marks, and dogs) to formulate strategic recommendations. The report concludes with actionable recommendations aimed at enhancing market share, improving customer satisfaction, expanding into new markets, and optimizing profitability. The report is a valuable resource for understanding business strategy and decision-making in the hospitality industry.

Strategic
Consultancy Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Organisational overview..............................................................................................................1
Situational analysis......................................................................................................................1
Review and application of strategic choices................................................................................4
Recommendations........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic consultancy report is the document that is prepared for supporting high level
decision making related to overall business direction (Alvi and Carsrud, 2017). Through the
report, important information is provided to entrepreneurs that act as guidance to make decisions
and perform further workings. The report is all about Tinos Restaurant which is a family run
restaurant situated at Lancashire, UK. It provides wide hospitality related services with tasteful
contemporary décor. The company has menu as per traditionally and modern cooked dishes and
offers planet of specials in daily meals. The report includes information about the entity,
comprehensive situational analysis, review and implementation of strategic choices or theories
and some recommendations.
MAIN BODY
Organisational overview
Tinos Restaurant is one of small sized restaurant that is managed and run as family owned
business in UK. It provides wide range of entertainment and food related facilities to its guests. It
also has popular private room service that is suitable for large as well as small parties. The
company has set its menu according to traditionally and modern cooked Italian dishes including
wide varieties. Visitors and customers enjoy its meals in friendly addition to relaxed atmosphere.
Along with this, the dishes served by it are freshly prepared and includes finest ingredients that
retains natural flavours together with goodness (Tinos Restaurant, 2020). Some of its offering
includes Antipasti, Pasta Dishes, Pizzeria and many more. The company provides high values,
friendly atmosphere, quality food and effective services that makes it in top positions on
hospitality industry in UK.
Situational analysis
It is defined as collection of methods or techniques that used for analysing internal and
external environment of firm for understanding its capabilities, position and other related factors
(Adesi, Owusu-Manu and Murphy, 2018). Situational analysis engrosses several analysis
methods such as SWOT Analysis, PESTLE Analysis, VRIO Analysis and McKinsey Analysis.
When managers of Tinos Restaurant conduct situational analysis they looks at macro and micro
environmental factors that have potentials to affect practices and operations of business. Some of
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frameworks for comprehensive situational analysis in context to Tinos Restaurant are the
following:
PESTLE Analysis
It is the situational analysis method that is used for monitoring external or macro
environmental factors that have huge chances to impact business and its activities. It is used by
managers of Tinos Restaurant for identifying and examining key change drivers within business
environment. The external factors in context to the company are as analysed:
Political: The element that is related to this factor includes trade restrictions, political
stability and employment laws (Engelen and et al., 2015). The political system of UK is stable
and powerful that provides various opportunities to small and medium businesses in terms of
subsidiaries and other beneficiaries. This impact positively on Tinos Restaurant as the managers
makes effective usage of relevant policies and attains growth through adopting implemented
practices by the government in hospitality sector.
Economic: The elements which affect economy as whole are termed to economic factor. It
includes wages, interest rates and governmental practices. Economic environment of UK is based
on market situations that impacts businesses in many ways. For example, minimum wages that
are set by government in UK are £ 7.70 per hour for employees above the age of 25 (Minimum
wages in UK, 2020). Managers of Tinos Restaurant recruits people as per the skills and talents
that impact positively on it as it gets its work done in minimum wages and on time.
Social: The factor considers elements that are related with community and society. Some
of the elements are cultural expectations, heath consciousness, population dynamics and
attitudes. In UK, population are more conscious towards their heath and for this they prefers
healthy and hygiene food (Feldman, 2014). This impacts positively on Tinos restaurant as it
serves food item in high quality and keeps hygiene at its premise on main priority.
Technological: The factors which are closely connected with technologies and automation
are part of technological factor. It is seen that within UK, technology becomes outdates in
limited duration of its launching. This impacts negatively on Tinos Restaurant as the managers
have to make huge investment in implementing and updating suitable technologies such as
Artificial Intelligence, Coffee making machines and many more within the place for serving
customers effectively. Due to this, the profits margins of the company decreases and it have to
make huge modifications in its current working (Garg and Eisenhardt, 2017).
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Legal: The factor takes consideration of entire legal aspects including taxation,
employment, resources and many more. Health and safety Act, Food Act, Gamins Machines Act,
Disability Discrimination Act and many more are some of legal laws that are mandatory to
adhere for all hotels and restaurants in UK. The managers of Tinos Restaurant manage all
workings through taking consideration of all the legislations that impact positively on its
position.
Environmental: Aspects related to ecological and environmental which are parts of social
nature are environmental factors (Jang, 2019). For instance, temperature, ground contamination,
natural calamities and so forth impacts workings of Tinos Restaurant in UK. However, the
company prepares itself to deal with environmental factors which impacts on its workings
through forecasting situations and setting plans that impacts positively on it.
SWOT Analysis
It is the method that is used to analyse situations pertaining in internal business
environment. Through this method, administrators analyses their key strength and available
opportunities. It also helps in finding weaknesses and threats that hampers the business and its
workings. Analysis of situations through SWOT analysis in context to Tinos Restaurant is as
follows:
Strengths Weaknesses
 Tinos restaurant has wide range of food
items in its menu that attracts large
audiences towards it.
 The company has effective skill set and
experienced talents that helps in meeting
satisfactions of all customers.
 The position of the company is strong in
UK market as it is among most preferred
restaurant in the city.
 Tinos restaurant has less penetration
or recognition in international
market that hampers it position in
overseas nations.
 The prices set for products are too
high for lower income population
that is its other weakness (Johnson
and Van de Ven, 2017).
Opportunities Threats
 Tinos restaurant has opportunity to
diversify business in other nations through
using effective market entry strategies.
 Intense competition from local
restaurant and international
hospitality companies is threat for
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 It can also lower its prices for various
dishes so that it can also serve lower
income population (Kuosa, 2016).
Tinos Restaurant.
 Changes in legislation by political
system of UK related to working or
restaurant is also threat for the
company.
Development of set of organisational objectives:
AS per the situational analysis of Tinos Restaurant, managers have developed set of
objectives for future:
 To enhance market size and shares by 25% till 2022.
 To improve practices of working and meeting customer satisfaction.
 To open 6 new branches in overseas market by 2024.
 To decrease staff turnover by 13% till end of 2020.
 To improve margin of profit by 20% till 2021.
Review and application of strategic choices
Entrepreneurial strategic choices and also termed as entrepreneurial strategies that are set
by entrepreneurs to determine ways to achieve set objectives (Morden, 2016). The managers of
Tinos Restaurant have reviewed various strategies and accordingly implemented effective one to
attain developed objectives. In this context, review of certain strategic choices in context to the
entity is as follows:
Ansoff Matrix
It is strategic choice of entrepreneurs as it provides suitable framework to help
organisational managers to make use of strategy for growth in future. The matrix reflects about
four strategies which can be used for attaining objectives and analysing risk related to working.
The four strategies that can be adopted by the managers of Tinos Restaurant are the following:
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Figure 1. Ansoff Matrix. 2018
(Source: Ansoff Matrix. 2018)
Market penetration: In is the strategy which emphasis towards increasing sales and
profitability of current commodities within existing market. If managers of Tinos Restaurant uses
market penetration strategy, then they can make certain changes in its menu price and increase
promotions so that its objectives are achieved properly. For example, to achieve of increasing
market share, this strategy can be used through decreasing prices of various dishes as it will
attract large customers or potential guests towards it.
Product development: The main focus of the strategy is on launching new product
within the market where the company operates in existing scenario (Ott, Eisenhardt and
Bingham, 2017). By using the strategy, chefs of Tinos Restaurant introduces new dish type in its
menu for catering current market then it may achieve success in attaining developed objectives
promptly. For example, by introducing new dish type or some combo packs then it can meet
customer satisfaction to taste something new and delicious and will result in improving profit
margins.
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Market development: Major emphasis of the strategy is on entering in totally new
market and serving existing products. With this strategy, administrators of Tinos Restaurant can
expand in new locations and achieve success in leveraging customer base, motivating employee
and so forth. For example, Using market development strategy, Tinos Restaurant can expand the
business in overseas market that will result in achieve objectives of opening new branches and
decreasing staff turnover.
Diversification: The strategy major helps enterprise to enter in new market through a
totally new product (Vaquero-García, del Río and Álvarez-García, 2016). There are two types of
diversification, one is related diversification and other is unrelated diversification. When
managers plan to open branches in new market and meet customer satisfaction with new product
they can use diversification strategy as it will lead towards attaining set objectives.
BCG (Boston's Consulting Group) Matrix
The other strategic choice that is used by entrepreneurs for graphically representing
business products and services with the effort to make decision about which it must keep, invest
or sell. The four categories of the matrix through which managers of Tinos Restaurant can
analyse position and the products that can help in achieving objectives are the following:
Dog: The products of the entity that have low market share as well as low growth rate are
categorised under dogs. In context to Tinos Restaurant, the products that are under dog category
include Bowl of Olives, Foccacia, Goats Cheese Salad, Pollo Piccante, Crepe Pollo, Lasagne Al
Forno, Pizza Contadina and other dishes.
Question marks: The products which have high growth rate but entity fails in
maintaining larger share of market (Yamakawa and Cardon, 2015). These are in upper right
portion within the matrix grid. Some of dishes of Tinos Restaurant which are categorised as
question mark includes Bruschetta Mista, Neve, Melon & Parma Ham, Salmon Tinos, Gnocchi
Diamante, Risotto Funghi, Pizza Funghi, Pizza Diavola, Pizza Calda, Pizza Contadina and other
dishes. It is necessary to analyse the products that falls under the quadrant ad they consumes
huge resources.
Stars: The products that have high growth market and have ability to make sizeable
market portions are categorised as Stars. Dishes of Tinos Restaurant that are categorised as stars
involves Messicano, Calamari Fritti, Pizza Tropicale, Pizza Pescatora, Black Pudding, Risotto
Funghi and many more. This product needs more investment for generating high income.
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Cash Cows: Commodities which have relatively large share of market and low growth
area (Garg and Eisenhardt, 2017). These products generate higher returns than market growth
rate as well as sustain in cash flow perspective. Few products of Tinos Restaurant that are under
cash cows category engrosses Garlic Bread, Deep Fried Brie, Gamberoni Amalfitana, Bistecca
Mostarda, French Fries, Pizza Contadina and many more.
Implementation of strategy
From per the review of entrepreneurial strategies, managers of Tinos Restaurant
implement suitable strategy that help them in attaining all developed objectives in future. In
relevance with Ansoff matrix, the managers of the company can implement strategies of product
development and market development as these strategies are consistent with the objectives. For
instance, market development strategy can help in selling organisational products in new market
that will help in achieving objective of opening new branches and increasing customer base. At
same time, product development strategy can help in introducing new dish in the menu within
existing market that will result in attainment of objective that is enhance market size, shares
along with improving practices of working and meeting customer satisfaction (Vaquero-García,
del Río and Álvarez-García, 2016).
In relevance with BCG Matrix, adoption of category of cash cow is suitable to implement
in Tinos Restaurant as it will help in generating sufficient money in the duration of low market
growth. This can assist the entrepreneur to retain its manpower for long duration in recession
duration which will help in making high growth and will also assist making huge revenues.
Along with this, this quadrant will help in earning income of continuous manner and maintaining
position in the competing market. Moreover, by making some investment in cash cow products,
company can achieve huge returns that can take the entity towards great height of success as
these will assist in attaining objectives including decreasing staff turnover, increasing profit
margins and many more.
Recommendations
Managers of Tinos Restaurant are recommended to adopt other strategies for the purpose of
achieving developed objectives within determined frame of time. The company is recommend to
share all the relevant information with its staff members and also engage them in making
decisions that will boost their efficiency and will make them part of company, this will result in
decreasing staff turnover and make them loyal to the firm. Along with this, administrators of
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Tinos Restaurant are recommended to hire expert Chefs who can make delicious and new types
of dishes on the demand of customers or guests. With this, it can meet satisfaction of large
customer and gain recognition in the competitive business environment. Moreover, by
purchasing innovative and sustaining technologies and marketing strategies, the entity can
expand the practices in new location and carry out operations accordingly. Managers of the
restaurant are also recommended to add new dishes in the menu that will grab attention of guests
and will assist in fostering growth in existing and new market
CONCLUSION
As per the discussion, it is concluded that strategic management report is very important for
entrepreneurs as it guides them in entire entrepreneurial stages to start and manage business.
Entrepreneurial strategies are the action choices that are developed by entrepreneurs for
managing the practices and attaining success in complex business environment. Situational
analysis is done for analysing business environment for understanding capabilities, position and
skill set available with the entity. The frameworks used for situational analysis includes SWOT
analysis and PESTLE analysis. With SWOT analysis, entire internal situations are analysed and
then all are categorised into strengths, weaknesses, threats and opportunities so that relevant
decision or strategies are adopted. PESTLE analysis helps in monitoring macro factors that have
high probability to affect business and its entire activities. Some strategic choices made by
entrepreneur of the entity include Ansoff Matrix and BCG Matrix that are relevant to achieve
objectives.
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REFERENCES
Books and Journals:
Alvi, F. H. and Carsrud, A. L., 2017. Strategic entrepreneurial agency in emerging markets. The
Journal of Entrepreneurship. 26 (1). pp.77-101.
Adesi, M., Owusu-Manu, D. G. and Murphy, R., 2018. Strategic competences for pricing
quantity surveying consultancy services. Engineering, Construction and Architectural
Management.
Engelen, A. and et al., 2015. Entrepreneurial orientation, firm performance, and the moderating
role of transformational leadership behaviors. Journal of Management. 41(4). pp.1069-
1097.
Feldman, M. P., 2014. The character of innovative places: entrepreneurial strategy, economic
development, and prosperity. Small Business Economics. 43(1). pp.9-20.
Garg, S. and Eisenhardt, K. M., 2017. Unpacking the CEO–board relationship: How strategy
making happens in entrepreneurial firms. Academy of Management Journal. 60(5).
pp.1828-1858.
Jang, Y., 2019. Entreprenurial Human Capital and Inward Technology Licensing in the Context
of New Technology-Based Firms. International Journal of Innovation and Technology
Management (IJITM). 16 (07). pp.1-20.
Johnson, S. and Van de Ven, A. H., 2017. A framework for entrepreneurial strategy. Strategic
entrepreneurship: Creating a new mindset, pp.66-85.
Kuosa, T., 2016. The evolution of strategic foresight: navigating public policy making.
Routledge.
Morden, T., 2016. Principles of strategic management. Routledge.
Ott, T. E., Eisenhardt, K. M. and Bingham, C. B., 2017. Strategy formation in entrepreneurial
settings: Past insights and future directions. Strategic Entrepreneurship Journal. 11(3).
pp.306-325.
Vaquero-García, A., del Río, M.D.L.C. and Álvarez-García, J., 2016. Best University Practices
and Tools in Entrepreneurship. In Education Tools for Entrepreneurship (pp. 183-198).
Springer, Cham.
Yamakawa, Y. and Cardon, M. S., 2015. Causal ascriptions and perceived learning from
entrepreneurial failure. Small Business Economics. 44(4). pp.797-820.
Online:
Ansoff Matrix. 2018. [Online]. Available through: < https://www.ansoffmatrix.com/>
Tinos Restaurant. 2020. [Online]. Available through: < http://www.tinos-restaurant.co.uk/>
Minimum wages in UK. 2020. [Online]. Available through: < https://checkinprice.com/average-
minimum-salary-in-london-uk/ >
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