A Comprehensive Strategy AnalysisIntended For Tea Bazaar

A Thai & Continental Cafe

BAC

Dhaka, Bangladesh

Prepared By:Sheik Shami Ullah Chowdhury (ID-2012121015)HND Business Intake 1, 2012

Prepared For:Mr. Ashiqur Rahman Bhuiyan

Head & Faculty, School of Business

Tea Bazaar: Thai & Continental Cafe Tea Bazaar is located near Bissho Road in Bashundhara Residential Area.

Vision: The place to retreat for a tranquil environment.

Mission: Provide consumers with high-quality meals and atmosphere to meet their personal and recreational needs.

Goals: Raise profitability. Maximize net income by increasing revenues and controlling costs.

Strategic intent: Contemporary interior decoration adjusted frequently with consumer demand. Core competency: Unique interior decoration and exotic food recipes.

Issues Involved In Strategic Planning of Tea Bazaar

In case of Tea Bazaar, planning is carried out frequently because their product and service are in an industry that is changing rapidly.

Here, planning is carried out once or even twice a year and done in a very broad and detailed fashion.

Strategic planning was done when business was just getting started.

Strategic planning is done in preparation for any new major venture.

During implementation of the plan, the progress of the implementation is reviewed at least on a quarterly basis by the board. The frequency of review depends on the extent of the rate of change in and around the business.

Reference: Manager (Tea Bazar): Mr. Leon (Personal Communication, September 2012)

Who are involved in planning?

The chief executive and board chair are included in the planning group.

At least one person is always included in the group, who ultimately has the authority to make strategic decisions.

As many stakeholders as possible are involved in the planning process.

At least those who are responsible for composing and implementing the plan are always involved.

One person is involved to administrate the process. In general, when there is any uncertainty about whether a

certain member should be involved in planning, they are involved because its worse to exclude someone useful then it is to have one or two extra people in planning.

Reference: Manager (Tea Bazar): Mr. Leon (Personal Communication, September 2012)

Planning system of Tea Bazaar:

Top-down planning system is used. Top management personnel set the goals and

control planning activities for all the lower levels of management.

Image Represents: Tea Bazar Attendant

o It is a good fit for employees who enjoy being directed and want to know what to expect every day.o However, there is a risk of losing potential talent because most creative employees are likely to look elsewhere for a position that better recognizes their abilities.

Planning Technique Which May Benefit Management of Tea Bazaar

Space Matrix is a management tool used to analyze a company.

It reveals a four-quadrant framework which indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given enterprise or company.

The presented diagram shows that the firm is in a very favourable position and is able to take an aggressive growth strategy. It is operating in an attractive and stable industry and has major competitive advantages backed up by significant financial strength.

This is what a completed SPACE matrix looks like:

Organisational Audit for Tea Bazaar

SWOT Analysis: stands for strengths, weaknesses, opportunities, and threats.

It is an instrument for auditing an organization and its environment. It is the first stage of planning and helps

marketers to focus on key issues of business.

Tea Bazaar’s Strengths – •Prime Location•Good Interior•Quality Food•Excellent Service

Tea Bazaar’s Weaknesses – •Undersized•Undifferentiated recipes compared to FFC•Lack of marketing proficiency•Poor reputation

Tea Bazaar’s Opportunities – •Can easily merge with the neighbouring restaurant and form alliance•Can become the leading fine dining restaurant of area

Tea Bazaar’s Threats –•Competitor (FFC) has superior access to channel of distribution•Recent ban on Shisha

FFC : located near Tea Bazaar. They also offer a very soothing environment for private hangout.

Porter’s 5 Force Analysis: it is a simple but powerful tool for understanding where power lies in a business condition.

Environmental Audit for Tea Bazaar

Supplier power (The power of suppliers to drive up the prices)•Moderate number of supplier•Similar products are available•Able to substitute supplier•Able to change supplierOverall: Neutral supplier power.

Buyer power (The power of customers to drive down prices)•Regular local university students•Buyers are cooperative•Some large orders•Buyers are able to substituteOverall: High buyer power.

Competitive rivalry (The strength of competition in the industry) •Many competitors•Low switching costs•Low customer loyaltyOverall: Extremely high competitive rivalry.

Threat of substitution (The extent to which different products can be used)•Some cross-product substitution available•Some recipes can be made at homeOverall: Some substitution available.

Threat of new entry (The ease with which new competitors can enter the market)•Not too expensive to enter into the industry•There are some cost benefits if in business for some time•Low barriers to entryOverall: New entry is quite easy.

Grand strategy matrix is a powerful tool in devising alternative strategies based on four elements:

Appropriate Future Strategy for Tea Bazaar

Grand Strategy Selection Matrix:

The four elements outline a four quadrant matrix in which every organization can be placed in a way the identification and selection of appropriate strategy becomes a simple task.

Resource Requirements to Implement the New Strategy

The sale must be as short as possible to limit overhead expenses.

The sale must be conducted during the proper time of the year.

Markdowns must be calculated for each class or department of the store. Determining the initial markdowns and the timing and amount of later markdowns is crucial.

A promotion program must be developed that will sustain the actual sale and closing of the store.

A detailed "A to Z" business plan must be developed for the sale.

In order to start the liquidation process, Tea Bazaar needs to realize the following considerations:

Noted: Management might not find it desirable cause it proves their inefficiency

Target & Timescales for Achievement

Identifying exactly how all aspects of the sale will be conducted.

Clarifying all of the details of the sale. Making available a formal proposal and projection for

the outcome of sale. Finding out any hidden costs. Finding out if there is someone with whom Tea Bazaar

would be comfortable doing business with. Initiating a promotion program to clear inventory. Finding an equipment dealer, or liquidate the furniture’s

with the assistance of an industry-specific auction house.

Significance of Stakeholder Analysis

We can apply the opinions of the most powerful stakeholders to outline our projects at an early stage. This will make it more likely that they will support us and their input can also improve the quality of our project.

Gaining support from influential stakeholders can help us to win more resources. This makes it more likely that our projects will be successful.

By communicating with stakeholders early and regularly, we can guarantee that they fully realize what we are doing and understand the benefits of our project. This means they can support us dynamically when required.

We can predict what people's response to our project may be, and build into our plan the actions that will gain people's support.

Stakeholder Analysis is the technique used to discover the key people who have to be won over.

The benefits of using a stakeholder-based approach are that:

Stakeholders of a project: Boss, Co-workers, Suppliers, Senior Executives, Customers

References:

Riley, Pippa (2011). Business Strategy. London: BPP Learning Media Ltd. John L. Thompson. Understanding Corporate Strategy. London: Cengage

Learning. Manager (Tea Bazar): Mr. Leon (Personal Communication, September 2012) Gary Hamel and C.K. Prahalad. Strategic Intent. Retrieved September 01,

2012, from http://hbr.org/2005/07/strategic-intent/ar/1 Carl W. Stern, George Stalk. Perspective on strategy from Boston Consulting

Group. Stakeholder Analysis. Retrieved September 01, 2012, from

http://www.stakeholdermap.com/stakeholder-analysis.html