Business Report: Factors, Strategies for Thai Cambodian Restaurant

This business report analyzes the key factors for the success of a Thai Cambodian restaurant. It begins with an executive summary and an introduction to the business concept. The report then delves into the internal and external factors that can affect the restaurant, including the nature of products and services, competition, legal, economic, social-cultural, and environmental factors. It explores suitable legal structures like partnerships and companies, outlining their advantages and disadvantages. Finally, the report discusses establishment phase survival strategies, emphasizing cash flow management and marketing campaigns, including multimedia advertisement, referrals, and social media promotion. The conclusion highlights the importance of managing these factors and choosing the right legal structure for the restaurant's success.

Running Head: BUSINESS REPORT 1
Thai Cambodian Restaurant Business Report
By
University Affiliation
Date

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Executive Summary
This document presents the analysis that will help the Thai Cambodian restaurant to succeed.
The document has analyzed the following; First, the internal and external factors that will affect
the business. Secondly, the legal structures that are possible for this business. It has also analyzed
the strengths and drawbacks of each legal structures. Thirdly, the document has discussed the
strategies that can be used to help the restaurant to survive the establishment phase of the
business life cycle.

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Contents
Executive Summary...................................................................................................................................2
Introduction...............................................................................................................................................4
External and Internal Factors..................................................................................................................4
Legal Structures........................................................................................................................................5
Establishment Phase Survival Strategies.................................................................................................6
Conclusion..................................................................................................................................................6
References..................................................................................................................................................8

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Introduction
A Thai Cambodian restaurant is a restaurant that provides authentic Asian foods.
Operating such kind of a business in the suburbs of greater Western Sydney is a good idea.
However, just like any other business, there are various factors that will affect the business
(Dragnić, 2014). Such factors need to be analyzed and managed so that the Cambodian restaurant
can succeed. The following are some of the major issues that need to be considered.
External and Internal Factors
There are several internal factors which can affect the business, they include; nature of
products and services, business model adopted, planning, resource management, stakeholders
management, among others (Dragnić, 2014). The most powerful factor in all of the above factors
is the nature of products and services. This relates to the quality of the products, the variety of
products that the restaurant offers, and quality of services (Dragnić, 2014). In the hospitality
industry customers are so cautious about the nature of products and services that they receive.
For the restaurant to succeed it must provide authentic foods, drinks, and services that attract
many customers.
The various external factors that can affect a Thai Cambodian restaurant include;
competition, legal factors, economic factors, social-cultural factors, and environmental factors
(Chittithaworn, Islam, Keawchana, & Yusuf, 2011). Competition as a factor includes;
competition form already existing restaurants such as Battambang Restaurant. This group of
competitors already has a market share and a strong brand. They, therefore, pose the highest
level of threat. Secondly, threats of new entrants. This cluster of competitors may disrupt the

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market in the future. Although new entrants will have a low market share at the beginning, they
may later end up dominating the market. Therefore, there is need to come up with competitive
strategy (Chittithaworn, Islam, Keawchana, & Yusuf, 2011).
Legal Structures
Legal structure refers to the form of business ownership. There are two legal structures
that can be suitable for the Thai Cambodian restaurant.
First, a partnership form of business. It has several advantages which include; partners
are free from double taxation since in partnership profits are not taxed, it is the personal income
of partners that is taxed. It is easy to register and easy to manage. Cost of establishment, losses,
duties, and profits will be shared among partners (Australian Taxation Office, 2019). However,
according to the Department of Industry, Innovation, and Science (2019), its drawbacks include;
partners have unlimited liability thus their personal property can be used to settle the business
debt. The business has no perpetual life since the departure of a partner can lead to the closure of
the business.
The second legal structure is a company. The benefits of this legal structure include;
owners have limited liability thus their personal property cannot be used to repay business debt
(Australian Taxation Office, 2019). A company has wider access to capital through long-term
loans since commercial banks can convert the loan into shares if the company defaults. The
drawback includes; it is complex to start since it involves a lot of documentation and legal
procedures. This legal structure will lead to double taxation since profits are taxed as corporate
tax then individual pay personal income tax from the portion that they get from the corporate
(Australian Taxation Office, 2019).

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Establishment Phase Survival Strategies
The strategies that the Thai Cambodian restaurant can use to overcome the establishment
phase of the business lifecycle include; cost management, massive marketing, product
differentiation, cash flow management, among others. The two best strategies to use are cash
flow management and massive marketing campaign. According to Ebben, & Johnson (2011),
cash flow management refers to managing how cash is getting into and out of the restaurant. It
involves predicting demand, determining when to buy stock, determining the quantity to buy,
deciding how much stock to hold in the restaurant, and debtors management. This will ensure
that the restaurant has sufficient cash and inventory to operate effectively.
According to Blackburn, Hart, & Wainwright (2013), marketing is among the most
essential functions of business since it is the one that attracts the customer to the business. The
Thai Cambodian restaurant will need to embark on a massive marketing campaign in order to
easily penetrate the market. This campaign may involve techniques such as; multimedia
advertisement which uses a combination of various media such as print and broadcast media to
convey the message, attracting referrals by offering discounts to the customers who refer others
to the restaurant, showcasing videos of the restaurant and its services in social media platforms
such as YouTube, among other techniques.
Conclusion
From the above discussion, it is clear that the success of the Thai Cambodian hotel is highly
dependent on how well the above-discussed factors are managed. Also, the choice of the legal
structure for the restaurant will highly influence how it is managed, a span of control, and
taxation policies that will apply. Lastly, for the Thai Cambodian restaurant to succeed, there is a

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need to put into practice the establishment phase survival strategies as discussed in this
document.

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References
Australian Taxation Office. (2019). Choosing your business structure. Retrieved from
https://www.ato.gov.au/business/starting-your-own-business/before-you-get-started/
choosing-your-business-structure/
Blackburn, R. A., Hart, M., & Wainwright, T. (2013). Small business performance: business,
strategy, and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), 8-27.
Chittithaworn, C., Islam, M. A., Keawchana, T., & Yusuf, D. H. M. (2011). Factors affecting the
business success of small & medium enterprises (SMEs) in Thailand. Asian Social
Science, 7(5), 180-190.
Department of Industry, Innovation, and Science. (2019). Business structures and types.
Retrieved from https://www.business.gov.au/planning/business-structures-and-types
Dragnić, D. (2014). Impact of internal and external factors on the performance of fast-growing
small and medium businesses. Management: Journal of contemporary management
issues, 19(1), 119-159.
Ebben, J. J., & Johnson, A. C. (2011). Cash conversion cycle management in small firms:
Relationships with liquidity, invested capital, and firm performance. Journal of Small
Business & Entrepreneurship, 24(3), 381-396.