Advantages of Starting a Restaurant Business
The business that I choose to start is a restaurant business in the name of Dazzling Arm Restaurant. The restaurant would provide a varied menu that would not be concentrated to a single genre of food for satisfying most of the taste preferences. The restaurant will also undertake prior reservation so that the clients do not have to wait in queue during the rush hours. The restaurant will also have enough parking facilities. The restaurant also focuses on serving quality dishes and exquisite presentation. In other words, it will not maintain good food but also good service.
· One enjoy autonomy by being his/her own boss and make the decisions and undertaking crucial decision for success
· One can comparatively make more money
· One have a higher security in his/her own business without the fear of firing
· One can undertake discovery at his own pace and observe what really works
· One can develop an oversight and experience
· One can develop contact and talk directly with the customers
· Entails a personal satisfaction through creation of a successful business
· One can enjoy long-term benefits and provide a sense of stability and belonging to the community.
The disadvantages of owning a business includes(Sekaran and Bougie 2016):
· In terms of investment it is a huge financial risk
· Involves greater devotion as one has to work for longer hours
· Much time gets wasted in dealing with the business details instead of dealing with the things one enjoys
· There is much inconsistency in the income as there is no stability
· It might be strenuous in dealing with situations that deals with firing someone
· It is also necessary for learning newer disciplines related to the business that involves filing, inventory control, promotion, advertising, general management and market research.
The PESTEL analysis helps the startup business in the following manner(Gupta 2013):
· It helps in informing about both the external and the internal factors that influences the success and failure of a firm
· It gives an overview of the current position of the business
· It helps in forecasting the future and shedding the light on the present situation
· Helps in evaluating the business environment and allows the firms in making strategic decisions
· Provides the companies with reality check on the loopholes and the performance
· Promotes expansion by enabling the firms in understanding the economy and the market expansion
· Enables the business in identifying opportunities and threats
· Enables the companies in learning and entering newer markets not only nationally but also globally
Disadvantages of Starting a Restaurant Business
· Prevents the business from any kind of future failures and thereby create a means for constant success
· It also helps the business in accessing the report and undertakes countermeasures for improving and analyzing threats.
a. In what ways can ‘globalisation’ have an impact on your business? Discuss two examples.
The ways in which globalization impacts the restaurant business are as follows:
Provides Better Options:
Globalization puts forward an easier option for a start up restaurant business in finding ingredients. This is because globalization does not limit the owner of the restaurant by localized choices (Dunning 2014). Globalization has increased the number of vendor for the restaurant thereby lowering the supplier bargaining power and supporting the bottom line. Globalization has also freed the restaurants from the limitation of the local firms and their produce by allowing vegetables to be flown from anywhere.
Leads to Increased Risk
With globalization, the ingredients for the restaurant come from varied locations and makes additional stop in various storing and the processing stages on which the owner of the restaurant hardly has any control, that makes it all the more riskier (Stiglitz 2017). For example, Spinach flown in from the South America might have bacteria responsible for making the customers ill. Again, if the restaurant brings it beef meet from a country that has scandal of selling horsemeat and other impurities then it is quite likely that the restaurant owner might face uncomfortable questions.
Globalization might offer opportunity for selling to the customers across the world. For example, if the start –up restaurant develops an incredible barbeque sauce then under the influence of globalization the owner of the restaurant can bottle it and thereby sell it in the overseas market (Kotabe and Helsen 2014). Globalization has also provided options for designing a website or undertaking marketing of crisp copy that enables converting a local restaurant into global brand.
Examples:
Globalization in the Economics: Globalization has enabled fast food chain McDonald’s in starting of its business in other countries without hassle.
Globalization in Blending of Cultures: The growth of globalization has facilitated foreign delicacies like KFC in grabbing the market share from the local food items thereby creating a cultural displacement in respect to the food.
The restaurant business would use online ordering for improving its operations (Jiang, Yang and Jun 2013). The growing customer base has initiated the need for online ordering. This technology will help the restaurant in earning higher revenue as the customers can leisurely browse through the menu thereby ordering extra items resulting in higher sales. The online ordering facilities help the customers in placing the accurate orders. It also helps in easier data tracking as one can track the frequency of the order placed and the preferred items through the orders placed via the website.
The Impact of Globalization on Restaurant Business
Briefly identify who your ‘customer’ is likely to be. Why is it important for a business to understand its customers?
The restaurant will serve varied menu that would be affordable. In other words, it will have a casual atmosphere, a pub style designing and location close to the suburbs. The restaurant identifies with the middle class demographic. Understanding the target market or the customer helps the business in developing strategies for effective marketing. This is because a group of individual who shares similar characteristics and needs that the business hopes of serving defines the target market. These individuals represent the end users who would prefer offerings made by the business.
The two ways in which the restaurant can attract customers to the business are as follows:
1. By Creation of Partnership with the Local Business: Many local businesses offer catering services for meetings and special lunch on a day-to-day basis (Halligan and Shah 2014). Luring them through a discount will encourage them in considering Dazzling Arm Restaurant for placing orders.
2. By Introducing the Concept of Happy Hour: This can be during the latter half of afternoon from Monday through Thursday depending on the clients visiting the restaurant (Heo 2013)
a. With examples from other businesses, describe how your business can treat its staff ethically.
Ethics is concerned with the moral judgment of an individual and about the right and the wrong (Crane and Matten 2016). Decisions implemented within organization are made either the individuals or the groups, but whoever formulates them will have the cultural influence of the company. The decision of behaving in an ethical manner is moral one thereby implying that employees should decide on the right course of the action. This might also involve rejection of the route that leads to massive short-term profit.
The role of the ethics in a restaurant business are as follows (Koslowski 2013):
· Helps in attracting customers to the offerings of the business thereby boosting profits and sales
· Encourages the employees in staying with business, increase productivity and reduce the turnover for the labor
· Helps in attracting the investors and thereby ensuring that the company has a higher share price thereby ensuring protection to the business
Dazzling arm restaurant can ensure ethical treatment to the staffs by paying them in a fare manner and provide work environment that does not lead to any kind of mental or physical harm. This is however very unlikely for the large retailers like the Walmart and the McDonalds that earns higher profits but fails to pay a decent wage to the employees (Trevino and Nelson 2016). By ensuring ethical treatment, the restaurant owner will earn the loyalty and the hard work. Implementing inhuman working conditions are not only detrimental to the business but are also unethical.
References:
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Dunning, J.H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge.
Gupta, A., 2013. Environmental and pest analysis: An approach to external business environment. Merit Research Journal of Art, Social Science and Humanities, 1(2), pp.13-17.
Halligan, B. and Shah, D., 2014. Inbound Marketing, Revised and Updated: Attract, Engage, and Delight Customers Online. John Wiley & Sons.
Heo, C.Y., 2013. Restaurant revenue management. Revenue management for hospitality and tourism. Woodeaton, Oxford: Goodfellow Publishers ltd, pp.118-129.
Jiang, L., Yang, Z. and Jun, M., 2013. Measuring consumer perceptions of online shopping convenience. Journal of Service Management, 24(2), pp.191-214.
Koslowski, P. ed., 2013. Contemporary economic ethics and business ethics. Springer Science & Business Media.
Kotabe, M. and Helsen, K., 2014. Global marketing management.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach. John Wiley & Sons.
Stiglitz, J.E., 2017. The overselling of globalization. Business Economics, 52(3), pp.129-137.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do it right. John Wiley & Sons.
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