Industry Analysis of Restaurant Jaclivery
Risk of Substitutes, risk of new entrants, bargaining power of suppliers In addition buyers and competitive challenge are mall details of Porter’s 5 Forces. (Dean A. Shepherd, 2008, IPPP) Political factor (P) Political factor affect a business to operate ethically by using government regulations and legal Issues. For example, tax strategies, political stability, trade regulations, employment laws and safety regulations. Government regulation from a restaurant will be hygiene: health, food standards, and food they are allow to serve.
Our Restaurant Acclivity Sad Bad ensures that our food and beverage and environment f restaurant will up to the standard of government regulation. Government stated that Goods and Services Tax (SST Malaysia) will be implemented with effective from 1 April 201 5 and SST rate is fixed at 6 (%) per cent. Sales tax and service tax will be abolished since this Is double taxation on customer. (NBC Group of Companies, 2006) Hence, purchasing power of customers will Increased and a better business environment will be created to enhance the competitiveness of food industry in Malaysia.
Diminution of taxation will create a better environment for entrepreneurship to operate a business. Thus, economic growth of Malaysia will increase and unemployment rate of our country will decrease. Restaurant industry must Include from the economic policies of government licenses, inspection by the health ministry department. Restaurant Cleverer Sad Bad also protect Its workers by ensuring all the hiring, compensation, training or repatriation Is according to Malaysian Labor Law as stipulated. Economic factor (E) Economic factor examines the outside economic issues that can affect profit and cash flow of a company.
For example, economic growth, inflation and interest rates, unemployment policies and others. And it has to be proportionate to the cost of capital. The Gross Domestic Product (GAP) in Malaysia expanded 5. 60 percent in the third quarter of 2014. Rate of inflation determines the rate of remuneration of employees and directly affects the price of the restaurant’s products. Malaysia’s cent in June 2014 from a year ago. The proportion between the inflation rate and wages or prices is direct. The Minimum Wages Policy had set the minimum wages of employees at REARM per month. Let will protect employees from no ethical employers.
In this case, Restaurant Acclivity Sad Bad had set the employee’s salary at Arm 300 re person each month. Moreover, economic trends act as an indicator of the sustenance and profitability of our business in the chosen region and help us in deciding your marketing strategy. Nowadays, local citizen are having a very high purchasing power so they can purchase any product due to their wants and need. Restaurant Acclivity Sad Bad selling foods at affordable price to customer in addition we had provide set meal for customer ,this will attract everyone to purchase in our restaurant or using mobile app to order food. Khalid’s Khalid’s, 2008, app) Social Factor (S) Due to customer need and wants, their daily life style and their opinions, we will using the new development, mobile APS to replace the usual food and beverage purchase food services which can attract more customer. Besides that, people are more conscious regarding their health lately so that the foods which have high sugar level such as Junk food and desserts, consumer will try to decreasing of taking it and try to taking the foods which are healthier and organic so that Restaurant Acclivity Sad Bad will selling our food in healthy and organic style.
Certain cultures are not allowed to eat specific food. Like Hindus they are not allow to eat beef and Muslim are not even allowed to touch pork. Therefore, Restaurant Acclivity Sad Bad applied Hall certificate which approved by SKIM. The eating habit will certainly make an effect on the business. Restaurant Acclivity Sad Bad more concentrate family office workers and people who has transport problem as target customer. Nowadays, ratio of people likes to purchase and order food by calling still increasing due to our lifestyle become busier.
Hence, Restaurant Acclivity Sad Bad will be a suitable choice for them to order food by using APS which make their life easier. Technological Advance (T) This factor takes into consideration that the technology issues that impact how an organization brings its product or service to the marketplace. The improvement in technology will help excel our company to different heights and make our business become globally. (Stephen P. Robin, 2006,IPPP) The inventory control system of our restaurant will be a first in first out method (FIFO) as our products are expiable and can only be stored for a short period.
Our restaurant will use advanced tools to make our products more reliable, clean, safety and easy to eat. The role of the Internet and NY changes to it play and the impact of potential information technology changes. Restaurant Acclivity Sad Bad create a mobile application to let consumer purchasing and order food from our restaurant and delivery to consumer’s doorstep. Hence, it will become easier and save time for consumers such as office workers busy working that not free to eat outside or lazy to find a restaurant. By using mobile application, it will lower some specific cost of our restaurant.
As the existing restaurant such as Paragraph and Lowdown White coffee which have strong standing and their own regular customer, we have to compete with them in create something special hat are able to attract customer purchasing in our restaurant. For example, we provided delivery service to customer instead need customer purchase food in the restaurant. Although Mcdonald as our competitor also having deliver services but sometimes customer not able to call in due to line problem. Through this reason, customer will purchase food from us by using mobile application.
Besides, Restaurant Acclivity will make a promotion to student and office workers that they have 10% discount for purchasing in our restaurant by showing their student id and working id to our workers. Restaurant Jaywalkers also create a happy lunch section from 12 pm until 3 pm for every customer who purchasing in our restaurant. This happy hour section only valid on weekdays except public holidays. Restaurant Acclivity will provide member card application for customer. Restaurant Acclivity Member Card holder will enjoy 10% discount on the food taken dines in and takes away.
They will receive ARMY complimentary voucher when you apply for the Restaurant Acclivity Member Card. The complimentary vouchers can only be used on next visit after purchase. Through this few method, customer who had been visited our restaurant will be visit us again and to be our loyal customer because of our unique services in the industry. 2. Threat of substitutes Fast food as our business’s competitor are producing the food industry services that can be a threat of substitution to our business. The alternative choice can be choose by customers such as fast food.
The willingness of customers to purchase our good and service will depend on the numbers of the substitutes existing in this industry. It is because customer have many choice to choose for their meal. For example, customer will be affect by their friend’s idea to have other restaurant food due to insider as high in this industry, we will still insist to enter into the market because high risk high return according to entrepreneur’s knowledge. Restaurant Acclivity will serve the food that typical Malaysian food such as NASA lemma, curry Alaska, Haines chicken rice, Char Key Two, MME green, Won Ton MME, Bake Cut The, Condole and others.
Moreover, we also design the environment of Restaurant Acclivity Sad Bad by using the furniture and renovation with the feeling of relax and home feeling. Employees of Restaurant Acclivity will also train to be served customer with the best, unforgettable, friendly services to customer. 3. Competitive Rivalry Many owner or investor in food and beverage industry are setting their target to become a famous restaurant or cafe© ,they also willing to set up their related business at other country due to raise of customer’s demand.
As a result, many firm will come out some strategy such as advertising, banner, sustainable competitive though innovation and creativity. We can compete with the others competitors with our new venture food purchasing services. Our product can provide the customers with healthy food and delivery service using mobile APS to order foods. Moreover, we will employ a good qualification graphic designer to design our mobile APS with creative pictures and contents. As a result, the creativity design of mobile APS will attract young teenagers continuously to visit on our mobile APS.
The environment of our shop also design to provide our customers a warm feeling. Next, our foods will be typical Malaysian foods that local citizen likes. 4. Bargaining Power of Suppliers Restaurant Acclivity Sad Bad depend a lot on the materials from supplier which can vary in the price. The bargaining power of the supplier can be low or high because of he wide range of the industry, supplier will sell the materials depend of the size of the firm and the famous brand name of the food industry.
So we can compare the price of the materials with each of the supplier and choose the lower offer. The bargaining powers of supplier are weak due to this, so that we have the strong bargaining power to deal with the supplier. On the other hand, the bargaining power of supplier can be high if they have the best quality of materials that we not able to get it from other suppliers. 5. Bargaining Power of Buyer In this food and beverage industry, customer is the most powerful controller in price s they had the power to control the price to be increase or decrease.
It is also means that the customers are the price maker, they may have the power and ability to change in the price to the market. For example, there are large group of buyers in the food market, they have very high potential in affecting the price set in this market. The bargaining power of the buyer is consider high in this industry for there are many close substitute for our food. Therefore, Restaurant Acclivity Sad Bad will provide the best in goods and services and selling the foods and beverage at an affordable price when compare with other competitor.