Current Strategy Analysis
Discuss about the Balanced Scorecard For A The Financial Services.
E-business is said to be a conduct of the processes of the business on the internet (Combe, 2012). These processes of electronic business comprised of buying and selling of the products, supplies, and services, processing payment, managing production control, servicing customers, running automated employee services, corporation with the business partners, etc. This report will perform a detailed analysis of the current strategies and positioning of the Slicer restaurant in the market of the United Arab Emirates and suggestions of the new and innovative strategies i.e. e-business and expansion to increase the revenue and awareness of the health and diet food. A roadmap will be presented i.e. business canvas model of the new suggested strategies which can direct business in running smoothly. Besides this, the report will recommend an action plan that should be followed by the company to enhance its performance and expand business functions in the respective market.
Slices Restaurant was established by considering the increasing health issues and nutritional demand in UAE (Slices, 2015). The idea of the restaurant was born by four Emirati friends i.e. Khalid, Faisal, Amina, and Hamad, they decided to start a restaurant by providing healthy food at affordable prices. To begin this business owners of the restaurant got support from Abu Dhabi’s Khalifa fund which is one of the government entity that is focused towards support new business and entrepreneurs (Jabeen, Zamber and Khan, 2015).
Slices Restaurant provides healthy food to the people of UAE by promoting fitness and health for a healthy living. This restaurant is a start-up which was established by the support of Abu Dhabi’s Khalifa fund which is one of the government entities which reflects that the government of the country is very supportive (Abu Dhabi, 2018). Besides this, Slices is effectively contributing to the country’s economy which can be seen by increased revenue i.e. AED 576,547 in 2012 (Slices, 2015). Moreover, the GDP of the country has also increased by 5% in 2012 and 5.79% in 2013 through this it can be said it has resulted in increasing the purchasing power of the citizen and will result in increasing the company’s profitability. The concept of Slices restaurant is a great concept of offering healthy food to the people by considering the benefit of the society; however, it has to deal with some challenges such as changing customer taste and purchasing behavior. In terms of technology, advancement business needs to work on it in order to fight with the international competitors with advanced technology (Bush, 2016). The restaurant is offering fresh, healthy and quick food to the student and contemporary executive by following all the legal guidelines however company need to focus on HRM and security policies. The government of UAE has introduced a 1999 Federal law for the protection and development of the environment which every business need to follow for the sake of the environment, however, Slices has started a program of school food in which it promotes the consumption of healthy and diet food among the students.
New Strategies
While analyzing the Slices performance in the market of UAE it has been identifying that the competitive rivalry is very high in the market due to the presence of various health as well as fast food restaurants. However, Slices has attained a competitive advantage because of its exclusive resources. Besides this, the bargaining power of the suppliers is low in the market because Slices purchase from the local farmers its organic product. However, it can be noticed that there are fewer restaurants in the market that provide a complete range of diet and healthy food. This is a benefit of Slices because the supplier has to deliver products according to its terms and conditions. The power of buyer is very high in this segment because restaurant needs to consider the taste and choice of the customer as it a complete diet and health food restaurant. Along with this, the threat of substitute in this segment is also high because companies are trying to attain the Slices market by copying the services and resources of the restaurant. Further, the threat of new entry is high because of the absence of entry barriers in the market segment. The restaurant needs to offer innovative and creative food items so that it can attract the attention of the customers. Along with this, it needs to work on its ambiance that cannot be copied by any other company.
The resources of the Slices Restaurant are divided into two categories i.e. Tangible and Intangible resources. The tangible resources of the company involve Store location, Stock, Equipment, Machinery, and Furniture. Besides this, the intangible resources of the restaurant involve Patient, Goodwill, and Ambience. In addition to this, the core competencies of the Slices involve effective customer service, skilled and experienced staff, tasty and healthy food, quick delivery.
E-business or online business is a term used for all type of commercial transactions or business that involves sharing or transferring information through the internet (Rouse, 2018). Commerce starts the exchange of services and products between groups, businesses and individuals and can be observed as one of the vital business activities. E-business can include a range of services and functions, ranging from creating extranets and intranets to e-service (Combe, 2012). Slices Restaurant should start its online business in order to increase its market share and awareness among the people of benefits of the healthy diet. In order to initiate this business need to follow some steps like:
Online Business
While starting a new online business various businesses make mistakes of first identifying the product and then the market. However, in order to be successfully Slices Restaurant initiates the business by identifying the market. This can be done by visiting online forums to observe what people want and what are their issues that other companies are not able to solve? Besides this, the company should also focus on the potential competitors by just visiting their online sites (Edmondson, 2017).
Write a copy that sells
This sales copy formula carries visitors of the sites from the process of selling to the purchase. This involves raising interest of the visitors with the support of compelling headline, explaining the issues that product can solve, introducing reliability as a solver of the problem, adding recommendations of the customers who have utilized the services, explaining the product benefits, provide various offers making strong guarantee, generate urgency, and asking to purchase.
Designing and creating the website
Once company got its target market and nailed down its process of selling, at this point business is ready for its small business web design. It is very important for Slices to keep it simple. The business just gets less than five minutes to grab the attention of someone otherwise they will go and never to be seen all over again. Therefore, in order to get the eyes of the visitors business need to select only two fonts, navigation should be simple and clear, one graphics, video, or audio to improve the message, comprising an opt-in offer such that company can gather e-mail addresses, easy browsing of the website and it should be customer friendly (Turban, 2010).
Using search engines to carry targeted customer to the company’s website
Pay-per-click advertising is the simplest technique to gain traffic to the site. It provides two advantages for waiting for traffic to arrive at the website naturally. First, PPC ads display on the search pages instantly, and next PPC ads permit the company to test diverse keywords, headlines, selling and prices approach (King and Lee, 2015).
Creating an expert status
People make use of the internet to search information. Offering that information for free of cost to other sites will result in more traffic and better ranking on the search engine.
Using email marketing to convert visitors into buyers
The business needs to make use of email marketing in order to increase the visits of the people on the website. The email marketing is inexpensive and very much effective as compared to print, radio, T.V, because it is highly targeted (Beesley, 2016).
Increasing income from back-end sales and upselling
The essential internet strategy of marketing is to make lifetime value of every customer. Approx. 36% of the people who have obtained products from the business one time will definitely come back to purchase again it the company will follow up with them (Moon, 2018).
While following this strategy Slices Restaurant can increase its revenue and continue with its program of school food by explaining students, a youth about the healthy diet. As it has been experienced that today most of the generation are techno-savvy, therefore, this strategy will definitely work and people will order healthy food for the sake of their health.
The expansion is called a business cycle phase when there is a movement of the economy from trough to a peak (Attract Capital, 2018). This is the period when the business activity level flows and GDP expand till it touches a peak. The period of expansion also called as an economic recovery (Manuseto Ventures, 2018). Slices restaurant need to expand its business outside the boundary of Abu Dhabi. Only conducting business at a single location does not help in growing in the market. Today every business organization wants to grow and earn more profit and it can be only done by expanding the business at different places and locations. Due to this only the concept of globalization came into existence to provide the chance to the capable business organization to expand their business and serve different people at different locations or countries.
If Slices will expand its business in other locations such as Dubai, Ajman, etc. it will be able to earn more revenue and will be able to aware people about healthy diet. The consumers will also get the benefit of this as they will know more about healthy diet and can enjoy tasty healthy food make up of organic ingredients.
Business model canvas is called as a lean start-up and strategic management template for evolving new or verifying existing models of business (Niven, 2011). It is in the form of a visual chart with fundamentals defining the value proposition, finances, infrastructure and customers of products and firm. It supports company in arranging their activities by exemplifying potential trade-offs (Makhijani and Creelman, 2011).
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Key Partners ü Local Farmers ü Software vendor ü Hardware vendor ü Associations ü Suppliers at regional and local level |
Key Activities ü Merchandising ü Design and production ü Marketing ü User Services ü Food with integrity ü Customer relationship ü Buying and selling consumer goods ü Collecting information, suggestion, and feedback from customers |
Value Proposition ü Customized diet food ü Variety of choices ü Home delivery ü Safe online buying ü Simple menu ü Fresh and healthy food ü Affordable prices |
Customer Relationship ü Concentrate on pleasing the consumer ü Self-service ü Automated service ü Attracting maximum number of customers ü Classify and recall loyal customers ü Long-term relationship ü Giving importance to the suggestion and feedback of the customers |
Customer Segments ü Green and health aware customers ü Local industries ü College student ü School student |
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Key Resources ü Physical warehouses ü Stores ü Web application and development ü Application developers ü Data of customer ü Quality assurance ü Employees |
Channels ü Social media advertising ü Integrated marketing ü Slices website |
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Cost Structure ü Logistics and warehouses ü Staff ü Capital expenditure ü Most of the cost is variable ü Lean structure of cost, inexpensive |
Revenue Streams ü Accepting various payment options which make it easy for the customers to purchase ü Average customer can pay for $15 combo |
The above business canvas model is explaining various aspects of the new strategy that has been recommended above to increase the market share and profit of the business.
|
Objective |
Tasks |
Success criteria |
Timeframe |
Resources |
Responsible person |
|
To increase market share and revenue through online business |
ü Creating website ü Hiring experienced and skilled workforce ü Customer feedback |
ü Increased traffic on the website ü Increasing sales |
6-12 Months |
ü Human Resource ü Website |
Faisal, Hamad, Amina and Khalid owner of Slices restaurant |
|
Making people aware of their health |
Interesting and attractive messages |
Decreasing health issues and illness |
6-12 months |
Online promotion Human Resource |
Marketing Department |
|
Expansion of business at different locations |
Identifying perfect locations for the restaurants Hiring employees |
Successful establishment of various restaurants Increasing diet food consumption |
2-3 Years |
Human resource Equipment, furniture, and machinery |
Faisal- Finance department head Marketing department Research and development department |
The above action will definitely support Slices restaurant to expand its business at different locations and start an online business. The above plan has highlighted some important elements that are important while thinking of new strategies to increase and grow the business management .
Conclusion
In the conclusion, it can be said that Slices Restaurant is a good as well as the effective idea of business to offer health good and aware people about the importance of being concerned about their own health and diet. The above report has highlighted various aspects of the company’s performance. It has reflected the position of the company in the UAE market. Besides this, the report has provided suggestions for the new strategies such as online or e-business and expansion to increase the market share, revenue. From the above analysis, it has also been identified that Slices Restaurant is not just concerned about its revenue but also wants to make people aware of health and diet food that will result in a longer lifespan. The report has provided the process of starting a new online business. Along with this, it has explained the expansion strategy with the support of its benefits to the customers and company. A business canvas model for the new strategies has been designed so to give an idea of the important resources, partners, activities, channels, and customers. In addition to this, a report has designed the action plan for both the strategies to provide an idea of the objective, task, and criteria for success, required resource, and responsible department.
References
Abu Dhabi (2018) Khalifa Fund for Enterprise Development (KFED) [online]. Available from https://www.abudhabi.ae/portal/public/en/departments/kfed [Accessed 11 May 2018]
Attract Capital (2018) Business Expansion [online]. Available from https://www.attractcapital.com/business-expansion.html [Accessed 11 May 2018]
Beesley, C. (2016) How to Start a Successful E-Commerce Business – 6 Tips from Seasoned Pros [online]. Available from https://www.sba.gov/blogs/how-start-successful-e-commerce-business-6-tips-seasoned-pros [Accessed 11 May 2018]
Bush, T. (2016) A PESTLE Analysis of The UAE [online]. Available from https://pestleanalysis.com/pestle-analysis-of-uae/ [Accessed 11 May 2018]
Combe, C. (2012) Introduction to e-Business. 3rd edn. U.K: Routledge. U.S: Cengage Learning management .
Edmondson, B. (2017) 5 Online Businesses You Can Start With No Money [online]. Available from https://www.thebalancesmb.com/start-online-business-with-no-money-4128823 [Accessed 11 May 2018]
Jabeen, F., Zamber, S. and Khan, K. (2015) Slices: what is next? Emerald Emerging Markets Case Studies management , 5(4), 1-9.
King, D., and Lee, J.K. (2015) Electronic Commerce: A Managerial and Social Networks Perspective. 8 edn. New York: Springer.
Makhijani, N., and Creelman, J. (2011) Creating a Balanced Scorecard for a Financial Services Organization. 3rd edn. U.S: John Wiley & Sons.
Manuseto Ventures (2018) Business Expansion [online]. Available from https://www.inc.com/encyclopedia/business-expansion.html [Accessed 11 May 2018]
Moon, A. (2018) How to Start a Business Online [online]. Available from https://www.entrepreneur.com/article/175242 [Accessed 11 May 2018]
Niven, P.R. (2011) Balanced Scorecard: Step-by-Step for Government and Nonprofit Agencies. 2nd edn. U.S: John Wiley & Sons.
Rouse, M. (2018) e-business (electronic business) [online]. Available from https://searchcio.techtarget.com/definition/e-business [Accessed 11 May 2018]
Slices (2015) Healthy and Fresh Food for Student, Slice [online]. Available from [Accessed 11 May 2018]
Slices (2015) Who Are We [online]. Available from https://slices.ae/about-us-2/ [Accessed 11 May 2018]
Turban (2010) Electronic Commerce: A Managerial Perspective. 4th edn. India: Pearson Education India.
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