Business Strategy: A Case Study of Spicesky Restaurant (Research Paper Sample)

Business Strategy: A Case Study of Spicesky Restaurant
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Business Strategy: A Case Study of Spicesky Restaurant
Businesses need to maintain specific standards to ensure they are profitable. Business approaches determine the success of the firm and help in the recognition of the problems it faces. Different business industries have different levels of competition, and the various players need to adapt to ensure they are maintaining operations and profitability. Several factors help a business perform at its best. These factors are essential for the growth of a business and help in the management and operations of the enterprise. This essay looks into the SpiceSky restaurant, the problems it is facing, and the recommended solutions. It will discuss the issues and lack of adaptation to the social, cultural, and economic environment and how it is vital for the growth of a business.
Analysis of Business and Business Industry
Business analysis
SpiceSky restaurant operates from the center of London since 1988. The restaurant is famous for providing a wide range of quality Indian foods. The business records show that the organization recorded a yearly increase in profits and sales since its opening. However, over the last 12 months, the business noted a slow and steady decline in company's sales. The business has made a few changes over the last year to help adjust to the sales decline. Change in suppliers and dropping items from the menu like the Hadia beer are some of the changes enacted in the restaurant to help deal with the decrease. These deductions led to complaints from consumers who loved the menu items removed. The business has also noted a high employee turnover in the past year. The business receives the same clientele every year with no new customers. This fact shows that the business does not attract any new clientele but has maintained the old ones, which is a good indicator of the business's customer service and food cooked.
Competitor analysis
There are several restaurants in the London area, including big chain Indian restaurants. The competition is fierce as the other restaurants participating in promotion campaigns and other marketing strategies. Most of the restaurants maintained their menu and were recognized for specific items on the menu. The competitive environment pushes the building of brands and maintenance of their position in the market. Different marketing strategies are essential as they ensure the business's clientele sees what they have to offer. In every business industry, there is the competition that is healthy as it helps grow the industry. The big chain Indian restaurants have managed to increase sales matching the growth in the city, unlike the SpiceSky restaurant, even though the ongoing growth in demographics and the economy continues to record a decline in the sales.
Business industry
The restaurant business belongs to the food and beverages industry which is quite competitive. The industry has many players from big chain restaurants, independent restaurants, and fast-food chains, ensuring growth in the industry. Different restaurants offer a range of cuisine. Some restaurants base their food on a particular culture, ensuring they serve delicacies from that particular culture. In the London scene, there are several interests, and people are interested in trying out diverse food options. This has led to the opening of various restaurants and representing the different types of cuisine to ensure locals and foreigners alike can enjoy different palates while in the city. This industry is vast and continues to grow tremendously. New layers get into the market on a day-to-day basis while other players leave. It is an integral part of the economy and plays a significant role in the growth of a country.
Problems
The use of old marketing strategies
The use of old marketing strategies in a digital world causes adverse effects on the SpiceSky business. SpiceSky business continues to use the same old advertising methods used when the restaurant first opened. These methods have revolutionized since then hence why they are ineffective. A few spots on local radio, a billboard on the highway, and a newspaper spot are not the most effective ways to be recognized in the world today. The marketing strategies might work, but they need polishing and other marketing options to make them more useful. Marketing strategies have shifted and are now more targeted to reach the specific market targeted. These strategies may hurt the business more than helping it, which is the intended plan.
Understanding the game theory is vital if a business intends to be successful. As Frimpong, Boateng, and Appiagyei (2016) explained, game theory provides a model in which businesses can analyze competitor interaction effects and interdependence in the industry. The theory can help in determining the introduction or removal of products in the market. Suppose the SpiceSky restaurant used the game theory in analyzing its marketing options. In that case, the most significant possibility is that it would help determine what new strategies they ought to use for the business. It would help establish what was working for the competition and why their strategies were not working out. Using this theory, the management would determine new forms of advertising that would work for the restaurant hence improving its marketing strategies.
Removal of critical items off the menu
There are critical items in every business which help its position in the market. Spicesky restaurant removed the Hadia rice beer and another item from its menu to reduce the cost of items. Removal of these items has adverse effects on the business and has led to a slow decline in sales. Complaints from customers show that these items were vital and were some of the popular items on the menu. With the removal of these items, the customers are unhappy, hence why some do not return to the establishment, leading to low sales, which are frequently on the decrease.
The consistency theory is an essential aspect of any business. Consistency is vital in any business as it helps in maintaining clientele. In marketing, consistency helps build a customer-brand relationship that enhances the business's position in the minds of the consumers, as explained by Seric et al. (2020). By removing some of the items from the menu, the restaurant interfered with the consistency that customers enjoyed. These caused a shift in the brand and customer relationship hence the change in sales. Consistency, in this case, played a role in ensuring the customers were loyal to the restaurant as they came to get their favorite meals and drinks. When the restaurant interfered with this flow of production, sales declined significantly.
Competitive positioning
The positioning of the business in the market determines if it gets clients or not. The actions of a business are essential as it is its identity in the market, which people associate. The SpiceSky restaurant operates in London for two decades and has not changed anything amount how it operates. The strategies put in place when the restaurant began were significant at the time. This is because these actions were effective for every other business at the time. Other businesses in the food and beverage industry have evolved with the changes, positioning themselves better for recognition by new and old customers. The SpiceSky restaurant, on the other hand, continues to follow the same system and operations, hence why it has issues.
The effective positioning of a business is crucial as it helps the organization maintain its position in the competitive market. Restaurants need to adopt new changes and more competitive methods to compete against other market players, as Kankam, Osman, and Acheampong (2020) explained. The authors suggest that restaurants should seek to have an advantage over their competitors at all times. Gaining a competitive advantage over other businesses in the industry is essential as it helps the business maintain a good position in the market. Competitive positioning of the business helps in ensuring the sales of the business are at an optimum high.
Change in the external environment
The change in the business environment can affect the business profoundly. There have been changes in the restaurant's social, cultural, and economic environment since its inception. The restaurant is, however, still operating based on the 1988 environment. A business should adapt to the external environment to help it cope with the constant changes in the market. Businesses can close down due to the effects of the external environment. Keeping up with the changes in the industry is crucial as it helps the business keep up with the business environment. Despite holding on to the business's brand, the management should be flexible to make adjustments in line with the social and economic changes in the particular business industry.
A business needs to know its position in the market and the changes occurring in the economic and social sectors. The social environment of a business is crucial as it entails the consumers of a product or service. These are the most influential persons in business as they determine whether the business will succeed or not. By identifying the changes, a business can adapt to the changes happening around it. Analysis of the success factors against the performance of the business and the adaptation to the environment, which helps explains how restaurants offer services ba...