This paper will identify strengths, nakedness, opportunities, threats and trends for some of those external factors such as economic and legal and regulatory forces and trends and how The Salad Bar will adapt to overcome them. The analysis will also cover supply chain as well as other issues and opportunities. Economic, Legal and Regulatory Forces and Trends Economic factors concern the nature and direction of the economy in which a firm operates (Pearce II, 2013). Prices play a large part in consumer choice when it comes to food.
During economic downturns, restaurants with lower price points typically fare better so great consideration should be given to al pricing. However, the differentiation of The Salad Bars offering can be considered a strength there as customers are often willing to pay a little more for high quality, healthier foods. Given America’s recent trends in health consciousness, especially when it comes to food, The Salad bar should have some extra flexibility when it comes to pricing regardless of the economic climate. Legal and regulatory factors will have a significant impact.
Due to the recent problems with food safety, the FDA and USDA have implemented several new regulations to ensure public safety. The Salad Bar will need to ensure that it is constantly aware of existing regulations, exceeding expectations, and passing all inspections. A single black mark in this area could be disastrous given the promise of fresh and healthy food. Again, there has been a significant shift in eating habits and trends with many activists exposing the unhealthy nature Of some foods, their additives and the environmental impact with documentaries such as [Super-Size Me], [Food Inc. And [Fed Up]. The social factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment (Pearce II, 2013). Socially, raw foods, also called whole foods are becoming more attractive options for the young and old who are embracing this back to basics food trend. People like the experience of eating out but often associate it with high prices, long waits, lack of family atmosphere and a lack of healthy choices. Few restaurants have truly embraced this trend however.
Consider that some restaurant salads (without breadfruits and salad dressing) have as many calories as a burger and cost as much if not more. Competitively, some restaurants are seeing success in this area such s Subway and Pita Jungle. Others are still struggling for market share as they fail to innovate and introduce truly healthy options. While they wait, new entrants are starting to pop up slowly and are gaining popularity. To avoid obsolescence and promote innovation, a firm must be aware of technological changes that might influence its industry (Pearce II, 2013).
External technological factors could include on-line reviews of the restaurant from customers and critics. With sites such as Yelp and Urbaneness gaining popularity it will be important to monitor these sites for feedback and opportunities to resolve issues. In terms of advertising online advertising is probably a more attractive option because residents of all ages are more likely to read information online or through social media than in physical print (Pearce II, 2013).
Us ply Chain Procurement of resources can be a strong force positively or negatively for any business. The plan IS to source as much product as possible from local vendors to keep transportation costs down and minimize economic impact of fluctuating fuel prices. Some items may not be available locally or during retain seasons so they will have to be transported from other locations. Either way, vendor selection will be critical. They will have to be reliable and capable of fulfilling orders to ensure supply chain is a strength.
Strategy The internal strategy will be to provide fresh, healthy, affordable food, educate them about the benefits of different fruits and vegetables and create an experience that keeps them coming back. Providing dine in and to-go options ensures that we are able to serve customers in both markets. To further differentiate, the Salad Bar will have fun and educational options for hillier as well. There will also be customer engagement and incentives for helping to create new seasonal and monthly salad recipes.
Regulatory To stay on top of food safety regulations, internal controls will be established to constantly measure and track proper storage, placement and shelf life of all products. Since fresh fruit and vegetables will be in an open area in chilled cases, temperature will be measured in real-time to ensure any discrepancy is detected immediately. Internal inspections will be conducted regularly to ensure the restaurant identifies and resolves issues immediately. Culture Culture is another internal force that can make or break a restaurant.
A strong, positive internal culture needs to be developed with the employees that foresters trust, teamwork and accountability. They should also be able to enjoy their work and have fun. Employees must feel like they make a difference because they do. Regardless of a customer’s experience with the food, if they receive poor service the overall perception of the restaurant is ruined. The customer’s should feel welcomed when they arrive, comfortable when they dine in and satisfied when they leave. Adhering Solid leadership is essential to a business’s ability to be successful.
The leadership must be able to articulate the company’s vision in mission in actionable terms in every aspect of the company. They have to hire and train the right people, engage and motivate employees, evaluate operations and quality and put processes in place to ensure strategic objectives are met. Being a leader means much more than giving direction to employees, it is leading them and the organization to success. In conclusion, careful consideration has to be taken into account regarding internal and external forces. Both can have a potential positive or negative effect an organization.
After examining several relevant internal and external factors, The Salad Bar will certainly face many challenges. However, with a solid concept, strong strategic plan and thorough SOTTO analysis, The Salad bar should be able to overcome those obstacles and greatly increase its chances for logo term success. SHOOT Analysis Factor Strength Weakness Opportunity The retreat Trends Economic People pay more for healthy People eat out less during hard economic times Focusing on local community Chain restaurants that can engage in price war
Support for local businesses that support other local businesses Legal and Argue lately Owner has strong industry knowledge of Food Safety Regulations Regulations change regularly and can be cost prohibitive Technological innovations combined with knowledge can be advantage One slip can spell disaster in terms of customer health and reputation FDA partnering with businesses to help stay on top of regulations Social Socially responsible offering Advertising driving foot traffic Not many competitors / new market niche Other niche players Healthy is in Environmental Literally “Green” offering
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