The Great Italian Food Company (GIFC) is a family owned business. Papa Joe, owner of the restaurants was the decision maker and determined the future for the company. Papa Joe’s children are grown adults and one day, they will assume the responsibility of running the restaurant but each child have their own personal ideas for the future of the business. First, all the children needs to come up with a strategic plan, which will benefit the restaurant business.
All the children have very good ideas of how to expand GIFC; however, they need to weigh the pros and cons of the business. Prior to GIFC moving forward with the decision to expand, they need to re-evaluate what the restaurant business does well. According to Porter, he states there are a number of approaches that can help a company reconnect with strategy. The first is a careful look at what it already does. Within most well-established companies is a core of uniqueness.
It is identified by answering the following questions such as the following: which of our product or service varieties are the most distinctive? Which of our products or service varieties are the most profitable? Which of our customers are the most satisfied? Which customers, channels, or purchase occasions are the most profitable? Which of the activities in our value chain are most different and effective? In addition, GIFC needs to do a SWOT analysis (Strength, weakness, opportunity and threat).
The Term Paper on Buying A Business restaurant part 1
Buying a Business (Restaurant) PROJECT Submitted to the College .. By Name, surname Town, state 2005 Buying a Business (Restaurant) Name, surname Table of Contents: I. Abstract II. The Introduction III. The Main Body: 1) Pro and contra of buying a business; 2) Ten Commandments of running a good business; 3) Investigating the business; 4) Determining the price or value of a restaurant; 5) The ...
This is important because careful evaluation of an organization’s internal and external environments may detect early sign of opportunity and threat that may influence the restaurant business long-term plans. This will help GIFC to gain competitive advantage, as they will know if any competitors are doing the same thing as they are doing. They will also need to think on ways they can differentiate themselves from the many other Italian restaurants, such as using food from only a certain part of Italy, the decor and ambience, or service they provide. It all depends on what their competitors are doing.
Apart from this, they also need to analyze the economy because of recession, which means most people will try to save money and spend less by avoid going out to restaurants to eat. GIFC needs to take into consideration the five forces model of competition, which includes, the firms in other industries offering substitute products, competitive pressures stemming from buyer bargaining power, competitive pressures coming from the threat of entry or new rivals, competitive pressures stemming from supplier bargaining power, and competitive pressures coming from other firms in the industry.
If GIFC can answer the aforementioned questions and utilize all the strategic plans then this will give them the opportunity to move forward with the expansion of the restaurant business. Growth is very important for a business. Without growth, the business will stagnate and ultimately be taken over by other factors like inflation, competition, etc. For the growth of GIFC, it is important for them to develop a mission and vision statement.
The mission statement expresses the organization’s purpose while the vision statement describes the organization’s long-term direction and strategic intent. There should also be goals that should be agreed upon by everyone in the organization. For the owners to decide more effectively, they should utilize the six stages decision-making model. Decision makers should identify and diagnose the problem, generate alternative solutions, evaluate alternatives, make the choice, implement the decision, and evaluate the decision.
