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Need an research paper on business strategy in chinese restaurant. Needs to be 8 pages. Please no plagiarism.
Need an research paper on business strategy in chinese restaurant. Needs to be 8 pages. Please no plagiarism. The purpose of this report is to explore the marketing strategies of Hai Di Lao hot pot by applying the PESTEL and SWOT framework. The strategic options for expansion of the restaurant are discussed in this report and finally, the recommendations are suggested.
Political: The Chinese government has been following liberalization policies and this includes a drive of opening foreign-based fast food chains in the country. Since 2007, the government has banned all unlicensed food suppliers. This implies that the restaurant owners have to be highly careful in terms of procurement of food from suppliers. The Chinese government’s policy on food safety is paramount.
Economic: China is one of the fastest growing markets among the emerging market economies with an average rate of growth of 9.10 % from 1990 to 2014 (Trading Economics, 2014). The growth of the Chinese economy has been coupled with the growth of disposable income of the middle class (Wang, 2012). The average rate of per capita GDP of China is estimated to be about $ 2611 dollars (World Bank, 2014). According to statistics, the fast food restaurant in China is expected to grow by 6% in terms of value sales (Euromonitor International, 2014).
Social: Based on social taste and preferences, the Chinese fast food market can be differentiated on the basis of the domestic fast food industry and foreign fast food industry (Deloitte, 2012). Though the consumers are acquiring a taste of foreign fast foods yet the domestic Chinese fast food is very popular representing 70% of market share (Research and Markets, 2011).
Technological: Technological elements like using Electronic Funds Transfer at Point of Sale (EFTPOS) and advanced equipment in the kitchen reduce the cost of production of the company. Using social media marketing and using internet technology to manage inventory can also help companies reduce their costs.
Legal: Legislations for restaurant industry in China is influenced by food safety law which governs the health and safety regulations of consumers.
