I will also identify and analyze the most important strengths and weaknesses of the restaurant and include an assessment of the organization’s resources. In addition, will assess the restaurant’s competitive position and possibilities.
External EnvironmentThe external environment consists of the three subcategories: remote, industry, and operating environments. The remote environment comprises factors that affect the firm’s operations such as economic, social, political, technological, and ecological. These Dogs operate in the competitive restaurant industry.Remote Environment The most important economic factors in the restaurant industry that affect Tweeze Dogs are inflation rates, unemployment rates, interest rates, and availability of credit and investors. The cost of food has to be managed carefully to keep prices down. The unemployment rate will have an impact on the company. There is a large pool of labor. Interest rates are at an all- time low.
This will have a positive effect on the cost of capital. The availability of credit is challenging. Banks and other lenders are reluctant to lend at this time.The company will seek investors for financing. Social factors that will affect the company the most include a shift in the age distribution of the population and constraints of fixed incomes of many seniors that live in the area.
The ethnic make-up of the area is changing. The number of African Americans and White Americans is increasing as more are returning to metropolitan areas from the suburbs. Political factors that affect These Dogs are politicians’ concern with fast food and obesity. In nearby Los Angels, there is a ban on new fast food restaurants.The restaurant will offer healthy choices such as veggie dogs. Technological factors include the power Of the internees influence such as online ordering, online reviews, and inventory control. The restaurant will have a website.
Customers can order their food online or by text message. They can post reviews of the food, service, and other comments. These Dogs will have the technology to order food, supplies, and inventory control. Ecological factors: Echo-friendly packaging. Food and beverage containers are placed in reusable packaging and containers.Industry Environment The industry environment is the general conditions for competition that influence all businesses that provide similar products.
(Pearson, 2011) Customers, suppliers, potential entrants, and substitute products are competitors which are more prominent in the restaurant industry, particularly in the fast food and hot dog areas. The barriers to entry are the cost of expensive equipment, restaurant location, and availability of credit and investors. These Dogs have potential investors and a location. There are numerous substitutes.The company markets to a niche market for the gourmet sausages and hot dogs. External Operating Environment The external operating environment comprises factors in the competitive situation that affect a firm’s success in acquiring needed resources or in profitably marketing its goods and services.
The most important factors facing the restaurant are many competitors. The company will advertise at the Los Angels International Airport. The location is perfect for travelers that want to have a Chicago style freshly made sausage or hot dog.
The supply of labor is adequate. Internal Strengths and Weaknesses The SOOT analysis of the company is based on the assumption that an effective strategy is derived from a sound fit between a firm’s internal resources, e. G.
, strengths and weaknesses. The strengths of the company are fresh and affordable products, location and proximity to the airport, market differentiation, service style, and it is new business. The products are made fresh in the restaurant. The sausages, hot dogs, breads, and French fries are made daily.
The pricing strategy allows the product to be affordable and rower than our chief competitor which is Pinks Hotdogs. The weaknesses are the restaurant is new, limited availability of funds, and we offer a product already available on the market with many substitutes. There are three basic resources which are tangible assets, intangible assets, and organizational capabilities. The company’s financial resources are an advantage.
The company’s name and website domain name are resources. Assessing its competitive position improves the restaurants chances of designing strategies that optimize its environmental opportunities.The stature will develop competitor profiles to forecast both short term and long term growth and its profit potential.
The following criteria will also be included: Market share, price competitiveness, if advertising and promotion is effective, and customer profile. Conclusion I identified and analyzed the most important external environmental factors in the remote, industry, and external operating environments. This paper discussed, identified, and analyzed the most important strengths and weaknesses of the restaurant and included an assessment of the position and possibilities.