INTRODUCTION
My Other Kitchen, a commercial kitchen space hiring and kitchen incubator, directed and owned by Jane Del Rosso, is looking to expand the business. The commercial kitchen hiring business is growing satisfactorily. However, greater growth is desired for the consultancy side of the business as stated by the client.
The aim of this report is to identify and analyse factors that will affect My Other Kitchen. The report first looks at macro-environmental factors to this business with a focus on demographics, economics, politics and culture. Then an analysis will be made of the competition to the client’s business which may affect the success and profitability of the business. Porter’s 5 Forces’ analysis is used with the focus on threat of new entry, intensity of rivalry and threat of substitutes. At the end of the report, competitors’ analysis is drawn to show what the client can do to be more competitive.
MACRO-ENVIRONMENTAL TRENDS
Looking at the macroeconomic environment there are three key factors that highly influence the success of expanding My Other Kitchen. They are the demographic and economic environment of selected areas, and the political structures which limit the ability for My Other Kitchen to trade.
Demographic and Economic Environment
As My Other Kitchen is looking to expand from the Kingston area to Glen Eira, it is essential to compare costs and benefits of surrounding areas to ensure which area will allow for the most success. Dandenong is in the same corridor as both corresponding areas and comparatively has lower costs of renting a warehouse space sized 350-400m², as shown in Table 1.1. The difference in expanding to Dandenong as opposed to Glen Eira is a saving of approximately $40,000-$130,000 per ...
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...l requirements as well as the food culture that is now much more prevalent affects the client’s business: My Other Kitchen.
In addition, it has shown how although there may not be immediate competitors in the business for food business incubators, the threat of new entry to this uncharted territory is ever increasing. Furthermore, substitutions for the type of business the client is offering are plenty. Substitutes such as getting accountancy services, advice from legal aid, attending courses on setting up business are just a few.
Therefore, in order to be competitive in this new and lucrative market of food incubator business that My Other Kitchen is aiming for, branding and marketing is vital. In conclusion, being aware of all types of competition and identifying the risks other factors that may influence of the success of the business is of great importance.
My organization, Trader Joe’s, is not an international business. Their stores are all located in the United States; therefore, I chose Whole Foods, who is a main competitor of Trader Joe’s for this assignment.
In your industry, an entry barrier is to provide customers with high quality, fresh, homemade products. With the surge of the health craze, more people are likely to go to a Café type establishment, than go to a fast food restaurant. Health-conscious customers have come to know and expect this from any café/restaurant trying to enter this market.
Founded in 1986, Pret A Manger is a fast food chain, which produces freshly prepared, natural food with over 250 stores throughout the United Kingdom, France, Hong-Kong and the United States. Unlike most fast-food chains, Pret is a private company; they do not face the same pressure to grow as a public company does. However there are many factors that affect Pret A Manger’s marketplace such as economy, competition, technology, political environment, and the standard of living. This report evaluates major internal and external factors affecting Pret A Manger using various analytical techniques.
...alented young managers in this area need to be aggressively obtained for long term growth. For a quick fix, this service should be outsourced to handle current needs. Distribution channels need to improve as well. Currently, competitor’s products are easily found at major retail channels. Nestle is in the position to gain a strong hold on the home dessert market for ice cream. Ice-fili needs to compete more aggressively in this portion of the market. In addition franchises and fast food chains should be targeted for partnerships or joint ventures so Ice-Fili’s ice cream can grow in association with a post meal dessert opposed to simply impulsive snack purchases. A key avenue to explore is an Initial Public Offering. This would generate enough funds to continue capital investment in technology desperately needed as well as promoting international market growth.
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To most consumers Whole Foods is known as a chain grocery store specializing in organic and natural foods. Some may go as far as say the name is synonymous with quality. This comparison is the result of Whole Foods’ marketing their brand successfully to consumers demanding their specialized foods. As with any organization, Whole Foods may consider evaluating their strategic objectives and decide if necessary course corrections are needed to reach their objectives and goals. Through a fundamental and technical analysis, I will discuss Whole Foods’ mission, vision, and goals, their competitive environment, and some factors within their strength, weakness, opportunity, and threat analysis. With such data and information I will recommend, if needed, and strategic changes in order to sustain a competitive advantage.
Fourth problem- Demographic data on the two stores, Cotati, and Santa Rosa are closely related. A decision needs to be made on which store to purchase, or to purchase both stores. Can Oliver Market make a profit with these stores is the question. Also Steve and Tom need to think about their competitor best and weak strategy and who are entering in the demographic markets as well as which rivals are strong candidates to expand their product offering and enter new product segments where they do not currently have a presence.
Business growth general is assumed to be good; bigger is assumed to be better (Hess, 2011), but if the proper planning is not in place it can lead to a business failure. Beginning a business based on something she loved, and needed in her life Susan Feller made the brave decision to build a successful business by baking and selling gluten-free cakes and desserts. After her retirement she focused on her dream and solving her own issue, finding food safe and healthy to eat for those, like herself, with Celiac disease and gluten allergies, but they also had to be delicious. Feller had some tough decisions to make as a small business owner, would she be able to keep up with the demand, how can she grow her business and what if she decided she had had enough and wanted to close the business? These are all decisions any business owner have to face at one point or another.
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Our team has been instructed to help advise on a business case involving a restaurant, The Mongolian Grill. It’s owner, John Butkus, is contemplating renovations, in hopes of adding capacity and increasing revenue. There are several scenarios that are available to him. One option is to add an extra food bar. The second option is to move the location of the cooking area. He can also implement both options, if he so chooses. Our team has done the appropriate financial calculations, as well as qualitative considerations.
Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
Rodgers, S. (2008). Technological innovation supporting different food production philosophies in the food service sector. International Journal of Contemporary Hospitality Management, 20(1), 19-34. Doi: 10.1108/09596110810848541
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