JacksChaller Fish and Chip Shop - Business Situational Analysis - Example

Business Situational Analysis Name Institution Course Lecturer Date Contents Contents 2 Executive Summary 4 The business Description 4 Technology Use 7 Finance and business Records 8 Competitors 8 Market served 8 Business Location 10 Business structure 11 Business sector 11 The Business SWOT Analysis 12 Strengths 12 Weaknesses 12 Opportunities 12 Threat 13 Conclusion and Recommendations 14 Bibliography 14 Appendix 15 List of Table Fig 1: Jack’sChallaFish and Chip Shop Goals………………………………………….5 Fig 2 : , Business growth cycles…………………………………………………………….7 Fig 3: Ratio of Men to Women Customers………………………………………………..9 Fig 4: Ratio of Adults to Children Customers…………………………………………….9 Fig 5: Location of the Hotel………………………………………………………………..10 Fig 6: Organizational structure............................................................................................11 Fig 7: (SWOT ANALYSIS)…………………………………………………………………12 Jack’sChallaFish Owner: Mr Anson Address--------------- : Executive Summary Jack’sChallaFish and Chip Shop was established was established in 1965 as a sole proprietorship is a family business that deals with different food products that range from Fish and Chop, steak sandwich finger foods, hamburgers’ among many others .The founders of this business who happened to be a husband and wife were motivated by their experience in the same form of business in their former employments sector and the educational background of the owner ,who hold Bachelor of business management(hospitality) The business is located at Croydon Park where there are many businesses that provide it with its products market from their workers. The business’ main goal is to become very profitable in the mission of providing Fish and Chip and attain a profit. Besides that, the business has a goal of increasing its revenue by 150% in two years, expanding the space and opening another branch, Jack Challa The business has a number of success factors. First, its location gives the business a wider market to serve. It is at a strategic place where it is surrounded by many companies. It still has an advantage over its competitors as it offers a wide variety of the food substances, something that its competitors are not able to do. Another key success factor is the good reputation that it has created in the 49 years of its existence. The staff members are very friendly and the business offers quality services. The complaints from the customers are well handled The business observe sound ethical practices which entails keeping employees personal details confidential, recycling all the papers, not using plastic bags and turning off lights when not in use. There are a number of challenges that the business need to deal with. These includes poor customer service and a limited space The business Description The business is located at cry don Park, a place that is rich with customers from employees who work in the nearby companies. The owner of the business is Mr. Anson who manages the business jointly with the wife. The business owner had accumulated enough experience at the time of starting the business from the former work place. More to that, he has a good educational background, holding a degree in business management The core goods offered by the business are fish and chips. There are other food staffs that are offered by the business and they includes, hot dog and finger foods, hamburgers, harsh brown, chick roll fish cake, chicken Nuggets and steak sand witch. All these are offered at a decent price I n order to serve the customers well, the business has employed five girls who help at their service. To motivate these workers, the management has come up with ways of creating a friendly working environment which includes the party for the staff and rewarding the best employee at the end of the month. The business has well equipped workers as recruitment is given a lot of efforts by the business management. These are committed to the attainment of the business goals at all cost. Since it started, the business has been registering progress in terms revenue and market coverage since its inception. There are plans are underway to see the business revenue reaching a mark of 150% in the next two years. There are other plans which includes the business expansion and efforts to win more customers through advertisements and service improvements Goals in different levels Type Personal Self satisfaction Society Employment creation Business goals Independence Increased profitability Fig 1 Jack’sChallaFish and Chip Shop Goals The business has continued to register an increased growth despite the hard economic times in Australia. This can be attributed to the efficiency on management side and the customers’ loyalty (Butterworth, Olesen & Leach, 2012) In the various cycles of the business growth, the business is at the growth stage which is second after the start up stage. At the growth stage, the customers and business sales are at an increase. The business is dealing with such things as growth and competition. There are various options available for the business owner which includes increasing the number of employees and evaluation of the business finances and plan. By the word of the mouth, customers are able to learn about to learn about the business goods and services. All these things are reflected in what is happening at Jack’sChallaFish and Chip Shop in Australia (Chesbrough, 2012) In addition to that, new customers are greatly attracted to the business due to the steady growth. Customers will at this point seek to lower the product prices, seek communication campaign, and improve service quality Fig 2, Business growth cycles (Jack’sChallaFish and Chip Shop in the second stage of growth) Technology Use In order to improve the customer services and ensure that the business is able to meet the changing need in the market, the business employs a range of scientific knowledge. This has helped the business to maintain a health competitive edge at all time its operation. Some of these include Efton, a service that enable customers to transfer money from their bank accounts to that of the business. Telephone and security camera are applied for the purpose of the business security and internet on advertisement matters Finance and business Records The business is fully owned by Mr. and Mrs. Anson. There are a number of means that they use to finance its operations. This is from savings, ploughing back the profits and getting loans from banks. They consider book keeping as an important business practice and for that reason, they have employed a qualified accountant who maintain a sound book records and keep a sound track of what is going on in the business and adjust the business cost so as to maximize profit. In addition to that, the accountant deals with all matters to do with the business taxes. Competitors There are a number of competitors who pose a serious threat to the business. These are Croydon chicken and sea food and Challa garden hotel. These two sell the same products as the business. Despite this, the business has a number of advantages over them. Some of these are the quality food at cheap prices, strategic location and large variety of prices Market served The business target all people in the market, working class to the unemployed, citizens to non citizens, male to female, people of all culture and religion and the services are given indiscriminately. In terms of gender ratio, the number of ladies is equal to the number of men as shown in fig below Fig.3.Ratio of Men to Women Customers Adults to children The hotel customers are composed of about 90 % adult’s children 10% Fig 4.Ratio of Adults to Children Customers Business Location The business has been located in a strategic point. This is at an area that is surrounded by many companies. The employees to these companies supply the business with the needed market. The business serves these customers during their breakfast and lunch time sessions. Fig below shows the exact location of the business as per the Google map Fig 5. Location of the Hotel Business structure The business is a sole proprietorship and fully owned by the family. This means that he handles all the key business activities like recruitments and purchases with the assistance of his staff members. The accountant prepares all the accounting records and tax correspondence. There are a total of five girls who work in the hotel .Their work entails food preparation and cooking, cleaning the store, customer service and stacking the shelves and any other duty that may be assigned by the employer. Fig 6.Organizational structure Business sector The business fall under the hotel sector has greatly developed in Southern Australia. It has greatly been influenced by the tourism industry which represent a considerably a large sector in the economy. This business can take advantage of this progress borrow from the well established hotels so as to improve the customers services (Kang, Stein, Hoe & Lee, 2012) The Business SWOT Analysis SWOT stands for Strength, Weaknesses, Opportunities and Threats. SWOT analysis on the other hand is a well structured method for evaluating strength, weaknesses, opportunities and threat in a business. This analysis help the business identify the areas that it has done well and those that need modification. The business is operating in an environment that is quite competitive and would require taking the necessary steps to have a greater competitive edge (Hill & Westbrook, 1997). Strengths Through an interview with the business owner, a number of things were clear about the business. The business serve a very wide customer base .This is fast attributed to its strategic location. This is because it is established in an area that has very many businesses. This huge customer base shows that Jack’s Challa Fish and Chip Shop have been effective in its marketing and customer management. Sound advertisements The business carries out an intense advertisement through news papers, magazines and face book Weaknesses Limited space There is a very small, waiting area for the business and the customers are at times served outside the business premises. This makes the business to lose some of its customers to other businesses that enough space Poor Customer Services The business is not able to handle its many customers. The interview with the business owner showed that there are times when they cook the orders against the customers’ expectations. At such peak time, the business is not able to serve its customers in good time. This if not dealt with, will make the competitors major on it and consequently lose a number of its customers as customer’s satisfaction is very key for the success of the business. Opportunities Ready market This simply indicates the areas that the business has not been able to exploit; there are many customers who do not get a space in the business premises Threat There is a great competition which if not well checked will see the business forced out of the market. There already three shops of the same kind within the same area. Swot analysis Strengths Weaknesses -Committed employees -Excellent marketing -strategic location -never use over-date products. -Large client base -Limited space -Poor customer services - Opportunities Threats -Expansion of hotel -Numerous competitors Fig 7 h Conclusion and Recommendations Due to the high quality services it offers to its customers, Jack’sChalla Fish and Chip Shop has been able to maintain a competitive edge. Sales and revenue has remained high despite the competitive environment. This success can equally be attributed to the strategic business location. There are however some approaches that need to be adopted in order to deal with some of the challenges that the business is encountering. The business should diversify its mode of financing by approaching different banks. This will help the business exploit its full capacity. The limitation in the business space is one sign of the financial need. The loans advanced to the business should only be used to means that are directly productive The customer services should be streamlined. To ensure full customer satisfaction, the business need to increase the number of employee’s .The way that the business is not able to serve its customers in good time is a good indicator of the need for many staff members. The business should apply the concept of specialization and division of labor. By this, every worker will serve at the point specified. The problem of cooking wrong orders means that there is a hiccup in the information flow from the customer to the workers. Division of labor and specialization will help deal with such problems as everyone will work towards bettering their place Bibliography Chesbrough, H 2012 Why companies should have open business models MIT Sloan management review, 482 Butterworth, P, Olesen, S C, & Leach, L S 2012 The role of hardship in the association between socio-economic position and depression Australian and New Zealand Journal of Psychiatry, 464, 364-373 Kang, Stein, L, Heo, C Y, & Lee, S 2012 Consumers’ willingness to pay for green initiatives of the hotel industry International Journal of Hospitality Management, 312, 564-572 Hill, T, & Westbrook, R 2007 SWOT analysis: it's time for a product recall Long range planning, 301, 46-52 Appendix INTERVIEW QUESTION LINI TRANG Business: Jack’sChallaFish and Chip Shop 1. When was the business established? The business established in 1965. 2. What the reasons were of open your businesses? Easy to operate and manage and because I have a previous experience from my previous shop that was also sell fish and chip. 3. What does the business do? Prime function? Mission statement? Fish and chip shop 4. Who are the stakeholders of this business? Me and my husband 5. Can you describe the products and services in your business? And why you chose that kind of products? Fish and chip, hamburgers, steak sandwich, hotdog and finger foods such as chicken nuggets, fish cake, chiko roll, corn jack, hash brown, etc. I chose this kind of product because its easy, decent prices and food on the go. 6. What business skills or knowledge did you possess before you opened your business? What skills or knowledge have you gained during the running of your business? Bachelor of Business Management (Hospitality). Hand on experiences. 7. What qualities do you look for in potential employees? Punctuality, reliable, good at communicates with people, friendly, “know the job”. 8. What is your business ownership structure? (sole trader/ partnership/ company/ franchise) Family Trust (sole trader) 9. Why did you choose this structure? Tax benefit. 10. What are the advantages and disadvantages of this structure? I can have my own decisions without sharing ideas or permission of anyone. I can earn and keep all the profit. Disadvantages are establishment costs are higher 11. Where is your business’s location? The reasons for choosing? Croydon Park where has many companies around us. Good for fish and chip when the workers have their break time then come to our shop for lunch. 12. What phase of the business life cycle is this business in? Potential to grow bigger. 13. What problems have you encountered in the running of your business? How were these problems resolved? Cost – controlling, stock control and staff. At the very first period, we got confusing from stock control and manage staff shifts but we try to share the jobs for each other then we will response and easy to catch up such as my husband does stock controlling and I manage staff and customer services. 14. What marketing strategies does your business use? Magazine advertising, facebook and newspaper. 15. How much its cost you? $500 per year. 16. What are your business plans? (personal, financial, social) Revenue up to 150% in 2 years. Expand our shop because our shop is quiet small at the moment. Get more customers and have stable customers. 17. How can you advertise your business to people? Google search can help people find where our shop located is Facebook helps us receive feedback and review from customers and improve Newspapers can help people who are not using internet to know about us. 18. Do you plan on expanding the business in the future? How? Yes. We want to have a Jack Challa Fish Shop 2. 19. What was the reason for borrowing finance? (expansion or debts) We use of loans from the bank. We use various bank overdraft accounts and loan to assist with cash flow and asset upgrades. 20. Who makes the financial decisions in the business? Do you seek advice from anywhere? My husband named Anson. No, just base on previous experience and economic status at the time. 21. How do you deal with customers who don’t pay? Do you allow credit to their customers? No, we don’t do credit at all. 22. How important is cash flow in your business? How do you make sure they have adequate cash flow each week/month/year? Very important. We keep track of every in and out cash by the record books and book keeping. We also have an accountant who helps out too as needed for taxation, report preparation and auditing. 23. How is the important of financial records and reports used by your business? Help you keep track on what is going on, and therefore adjust the cost to maximize profit. 24. What are the weaknesses of your business? Small waiting area, customers sometime have to wait outside the door. Sometimes when the shop is busy and more customers are coming. We ran out of track sometimes by cooking the wrong orders and couldn’t handle the food for customers on time. 25. What are the strengths of your business? Strong customers base, good reputation shop for 49 years. Good food, friendly staff and good service. Sometimes when we give the wrong foods for customers or if they complaint about the food. We will refund the whole price without having back the foods. 26. Do you have a good ethical business practices? Yes. Staff personal details are kept confidential. Turning lights off when they are no longer needed, recycling all paper, cans and cardboard waste and we don’t use plastic bag. We are using paper bags instead. 27. What do you believe is good ethical business practice? Make employees want to stay with the business, reduce labour turnover and therefore increase productivity Attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees. 28. Has your business carried out a SWOT analysis? ( strengths, weaknesses, opportunities and threats ) Strengths: good location, car parking, rich advertising, customer service, never use over-date products. Weakness: eftpos cards being rejected result in confusion; customers have to wait for long time for the food, small waiting area. Opportunities: greater expansion of technology, new products being released Threats: competitors (3 fish shop in the area). 29. How often do you change your advertisements? Explain? None. 30. When your business has special price or discount for customer? How can you advertise? Banner in the shop, printed on menus, staff up-selling. 31. What types of marketing goals of your business? Bring up the revenue by 20%. 32. What are the technologies that your business uses? How does it help? Eftpos :the customer electronically transfers money from their bank account to that of the merchants Internet: advertising on fb, server is updating. Telephone: for telephone order. Security camera: for look up the business when I go away or absent from the shop. Alarm: alarm attempts to prevent break-ins. 33. Who are the main competitors locally? Croydon Chicken and seafood Challa garden hotel. They both sell the same product as my shop. 34. What are the advantages over its local competitors? Large variety of choices Cheaper price, better quality foods and location with car park. 35. How many employees work in this particular site? 5 girls. 36. What roles of employees and employers? Employee: food preparation and cooking, re-ordering stock, cleaning the store, assist in the running of store, customer service, stacking the shelves. Employer: monitory and managing. 37. How do you keep your staffs motivated? Reward for the best one at the end of every month and sometimes we have a party for staff. We are also doing discount for staff with 50% off. 38. Have you undertaken and training at this job? For new staff, we will train at least a week until we feel they can do well then they can work as an official staff. 39. What is the gender ratio of your customers? And that of adults to children The number of ladies equals the number of men, Children 10%,adults 90% 40. Read More