SWOT Analysis
Discuss about the Business Management Of Don Camill.
The given section will be conducting a SWOT analysis relevant to the given restaurant Don Camillo.
Strengths:
The restaurant Don Camillo, has a good reputation as it is one of the oldest restaurants with a good customer service. The restaurant is a supporter as well in the sense that it is a supporter of the local producers. The restaurant has an authentic atmosphere which preserves the culture of the country (Abushova, Burova and Suloeva2016). Furthermore, the restaurant has a 90% positive feedback rate. Along with it the restaurant also offers good food at affordable prices.
Customers are really happy with their food and service provided as the feedback given is excellent. On trip advisor and google there is 90% positive feedback and on facebook there is 96% positive feedback, which is really good for a restaurant as word of mouth is important in hospitality sector and helps to grow the business.
Weaknesses:
The size of the restaurant is its main weak point. This is being said because, there is often no space present for the customers who visit during the peak hours. Furthermore, the restaurant`s absence on the social media acts as a major disappointment in its ability to attract the various tourists.
Opportunities:
The restaurant should look out for various opportunities that lie in this environment. These include opportunities like physical expansion, attraction of tourists and increasing the opening hours.
The restaurant needs to improve its opportunities and harness them by using its strengths in order to achieve competitive advantage.
Threats:
The major threats of the given retsaunt Don Camillo are as follows. The rent of the restaurant is very high. Secondly, there exists competitiveness from other restaurant chains.
Reduction in costs
If a business is unable to function effectively, then it may face certain problems, with respect to the continuation of operations. The cost component may form an essential part of a business enterprise and it is for this reason that it has been recommended that Don Camillo aims to improve its operational efficiency by managing its costs. Wastage forms a major component of any restaurants and it is suggested that restaurant aims to reduce the wastage which will automatically lead to lowered costs for the firm.
Introduction of new themes
The restaurant is highly authentic. However the younger generation and other parties these days prefer to attend restaurants and try out cafes which have a different theme and tend to chase this theme quite often. The competition in the Australian food sector is fierce and for this reason, if the restaurant is unable to come up with new themes, it will gradually start becoming unpopular. Hence, themes like Fun Friday, Tasty Tuesday can be used where a special dish is prepared and offers are given.
Operation Strategy: Short-term Recommendation(s)
Changed décor
The restaurant manager can try and adopt for new décor. The restaurant has had the same theme for the past many years and it is time for it to change this in order to ensure that the customers get to undertake a new experience (Hubbard, Riceand Galvin2014). For this purpose, if the restaurant undergoes a changed décor the regular as well as the potential customers would want to attend the restaurant which would be better for the restaurant.
Tourist attraction
As analysed from the macro and micro environment analysis, it could be observed that the main target market which the restaurant aims to target should be the tourists (Lasserre 2017). However, tourists are not aware of the offerings of the restaurant leading to which they have been unable to reach out to the place (Williamson et al. 2013). Hence, the restaurant should try a reach out to these tourists through various tourist and trip advisor websites leading to which they will be successful.
Rent system
The restaurant has been paying a huge amount of money as a rent due to which it is being unable to be successful in its operations (Martinsuo 2013). Hence, it is recommended that the restaurant looks out for opportunities in the domain and decides to buy a permanent space. It also needs to ensure that the new place which will be purchased is relatively quite large (Harrison and John2013).
The recommendations have been made after looking into the current weaknesses of the restaurant and after analysing the scope of opportunities that are available to firm at present (Wheelen et al. 2017). Hence, for this purpose, the restaurant can aim to take relative steps of cutting extra costs and purchasing a permanent space for this purpose.
New target market
The restaurant has a well-defined structure of permanent customers who tend to look out for the various dishes and other related opportunities in the restaurant’s offerings (Merat and Bo 2013). However, this does not have to be the case and it should be seen to it that the restaurant plans a new offering which will cater to the needs of the upcoming Gen Z and Y who are not the current target markets of the restaurant (Jarzabkowski and Kaplan2015). If the restaurant provides new dishes and an improvised price scheme, it will be able to easily attract the given target market.
New menu
The restaurant may also come out with new menu design and the contents as well. This shall give a new look to the restaurant and help it in dealing with the new target market which the restaurant aims to target. In this manner, the restaurant will be able to actually find the gap in the external environment and fill it (Eden and Ackermann2013). Hence, if the company can add fusion dishes and new style cuisines, it will be able to gain successful market share and achieve competitive advantage. It may also concentrate on the different healthier options.
Long-term Recommendation(s)
Expansion Plans
The company is currently present at only at one location. The restaurant has a good brand name and is fairly popular among the locals and regular customers. Using it strengths and resources as a competitive advantage the restaurant can expand to various other locations in other parts of the city at first and later look out for other cities as well (Hill, Jones and Schilling 2014).
The company can look out for expansion opportunities in various emerging as well as well developed countries. It can then customize their menu for this purpose but keep the basic taste the same.
The reason why these recommendations have been made because the restaurant is an urgent need to expand its operations. There are various global chains which are proving to be an intense competitor to these local restaurants (Gereffiand Fernandez-Stark2016). Hence, by following an all-rounder strategy, the restaurant will be able to establish itself and maintain its position in the long run. A firm without an expansion plan will not be able to survive for very long in the business.
Hence, it was recommended for the same (Hahn 2013). It may adopt various plans which are available in order to expand its operations.
Using Applications like Uber Eats
The current trend of getting the food home delivered is fairly quite popular. Hence, for this reason, it is suggested that the company engages in effective relationships with companies like Uber Eats and others so that it is successfully able to reach out to the customers in locations which the restaurant is not able to generally look out for (Ginter, Duncan and Swayne 2018).
Opting for Google advertisement
As per the analysis it was witnessed that that the restaurant does not have a proper advertisement strategy in place. If an individual researches upon the various restaurants situated in the given area then the name of Don Camillo is not visible (Bullet al. 2016). Hence, it should invest a certain percentage of the revenue generated in the given aspect and ensure that it is easily visible to visitors as well.
Loyalty programs and offers
There are various offers which are present in order to attract the crowd. People generally like to dine at fine places, however such an option is always not feasible and the company is required to ensure that it provides loyalty and other related offers to the different customers. This shall ensure that the customers get attracted to the different offers given by the company and this will also lead to increased marketing activity of the firm.
Planning Strategy: Short-term Recommendation(s)
Social Media Marketing
The social media marketing technique is one of the most popular techniques of marketing which is generally generated by the firms worldwide (Johnson2016). With the advent of technology, digital media has become increasingly popular and because of this, the tourists and general public looking for a wide variety of options often look out for various restaurants, their ambience, menu and other related components on the social media. According to Kalkan and Bozkurt (2013), around 25% of a restaurant`s sales comes from people who view it on social media. Hence, it is advised that Don Camillo makes a social media presence on various websites like Facebook, Twitter and local websites so that it can compete with other firms and earn higher amount of revenue and improve its profits (Frynas and Mellahi2015).
The above strategies have been recommended because, tourists these days have their decision biased towards those restaurants who have a strong marketing strategy (Bettis et al. 2014). Marketing strategy also comes in handy in terms of the food and other goods being offered by the customers.
The short term recommendations for the Human Resource Department are as follows. In order to abide by the various needs of the businesses external environment, they firm will be required to ensure that it employs adequate staff and sees to it that the staff is easily able to abide by the rules and policies of the restaurant (Grant 2016). Hence, the short term Human Resource Strategy should be capable of looking into the following aspects:
Recruitment and Selection
The restaurant needs to make adequate recruitment and selection strategies in order to ensure that it has enough staff at all times. Furthermore, the restaurant needs to hire people who will be able to abide by the varying needs of the different people. They should be educated enough to abide by the premium quality services which Don Camillo aims to provide to its customers. It is suggested it recruits a fresh batch every 6 months comprising of at least 7 employees. This shall compensate for the other members who tend to leave the organization.
Training and Development
Once the restaurant is able to hire adequate employees, it should ensure that it is providing them with adequate training to ensure that they are able to abide by the etiquettes of the premium services the restaurant (Barney 2014). They can be provided training off the job as well as on the job.
Long-term Recommendations
Work Place Policies
The restaurant does not seem to have a proper workplace policy in place. If the restaurant develops a proper workplace policy, then it will be able to successfully ensure that it is being able implement its operations and thereby adopt to all rules and regulations. This will help it conducting effective human resource practices in the organization.
Performance Management
The restaurant should conduct continuous performance management in order to assess the performance of the different employees. If the restaurant is able to do so then it will be successfully able to ensure that all organization members perform well and they will be able to meet the changing needs of the work environment (Alkhafaji and Nelson 2013).
Appraisal
After the performance management is done by Don Camillo the restaurant management should ensure that they engage in successful appraisal scheme in order to ensure that the different employees feel valued while they are working in the given restaurant. If this is not the case then the situation may get out of control and in such a scenario, the employees may leave the organization which may then increase the costs of the business. Hence, if the business sees to it that it is able to successfully conduct the business then it might not face any issues.
Compensation scheme
In the future of the restaurant can form a better structure of the compensation which ca actually be in the form of a compensation structure to ensure that it forms an incentive based structure which transfers the burden of earning in the employees and not the organization.
The given suggestions have been made after consideration of the of the current human resource status in the given organization. The state of the human resource in the organization is not very good and hence, the given have been suggested. It is important for the firm to have a proper plan in place to ensure that it does not lag behind others in the business
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