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Final Strategic Plan Essay Everyone wants to have a delicious meal that will not cost them a lot of money. There are many restaurants that try to sell you their services. Greg’s Family Restaurant is a restaurant which will provide a wholesome nutritious meal and great customer service for all our patrons. Mission Statement The mission of Greg’s restaurant is to provide wholesome meals at unbelievable prices the competition cannot compare. Our restaurant is to provide customers the service each and every one of them want and deserve. We will provide this type of service with the technology that is available to us as a business. With this technology we provide our customers with great service and delicious meals at an unbelievable price. We will become the best restaurant in the area that provides our customers with Mexican, Afro-American cuisine. The employees of Greg’s restaurant will be like family. Organization Vision Vision is the strategic planning of a company to achieving its goals. â€Å"A vision statement presents the firm’s strategic intent that focuses the energies and resources of the company on achieving a desirable future† (Pearce Robinson, 2009, p37). The aim for Greg’s restaurant is to in the next 2-4 years to be above and beyond the competition and to expand the business to other areas within the city. The future planning of the restaurant is to come up with menu items that will continue to help the business to prosper. Guiding principles: Culture, social responsibility, and ethics Greg’s restaurant is following many values and cultures according to the needs of customers. The menu items of the restaurant represent different cultures that can attract customers of different nationalities and societies. Greg’s restaurant is multi- cultural and offers a wide variety of menu items that everyone can enjoy. Greg’s restaurant gives priority to the values of honesty and integrity in full support of their valued patrons. The restaurant also offers specials throughout the week and also issues coupons to get half off on certain menu items. The business is using products that are environmentally friendly and to help protect the environment and health of the community. The vision, mission, and values statement of the restaurant will provide the framework, structure and the company’s goal. The vision is the end goal the restaurant wants to achieve whereas the mission and the values will provide the business with the everyday activities the business already performs and also the structure and framework for the strategic plan for the business. The business will address customer needs by providing good service and meals to each and every patron that enters the establishment. All customers will get the same fresh meal the first customer to the last customer. The staff will act in a professional manner and provide great customer service and our suppliers along with the restaurant will serve the freshest ingredients available. Organization Strategic Direction Without strategic direction the business will not be able to accomplish its mission or vision. So it is very important that a company has a strategic direction for the implementation of its mission and vision. Strategic direction is defined as strategies made by a business or company to fulfill its mission. Strategic direction helps the owner and employees to know what is needed or required to achieve the mission of the company. Customer needs and competitive advantage At Greg’s restaurant it is important for the business to provide a relaxed comfortable atmosphere to the customers so they can like at home. At Greg’s restaurant there has been mechanisms added to provide the customers with the necessary seating and waiting areas to help them feel more comfortable at the restaurant. It is also a positive direction the company has taken is there is no priority of any culture or religion to dine at the restaurant. Honesty is a key element that we strive when dealing with patrons. Strategy planning helps the company review the mission and vision and to make sure that the company is headed in the right direction on achieving the goals. The future planning and vision of the restaurant has an impact on the restaurant strategy and it could impact the way the business will do over the next few years. The business has to utilize its vision and mission statements to make new decisions or to improve on the decisions it makes about the future of th e business and what is going to benefit the business. SWOTT Analysis In the restaurant business and by being new to the industry which is very competitive a SWOTT analysis plays a key role and is needed for a business to succeed. Greg’s Family Restaurant sets itself apart from other restaurants by servicing their customers with excellent customer service and meals. When analyzing a business one has to look at the internal and external factors that affect the company. A SWOTT analysis provides a breakdown of all these factors even factors that could affect a business internally and externally. SWOTT analysis is a tool a company uses in forming a strategic plan. It is the most effective tool a company uses to determine and uses for a strategic plan. SWOTT stands for Strengths, Weaknesses, Opportunities, Threats, and Trends a company must face. Business can use SWOTT as a tool to create and overview of the organization strategic situation. (Pearce Robinson, 2009). For a new establishment like Greg’s Restaurant a SWOTT analysis is necessary to establish and compare where it is in a competitive market. When operating any type of business preparation is a key element: looking into as many potential options as possible is a must to prevent the company from profit loss along with the shareholders but in this case it is Greg’s stakeholders at risk. By eliminating all possible threats and creating opportunities with limited financial resources and concentrating on the long- term goal is the key to the success of the business and the future. SWOTT provides basic framework for business existing or new. More opportunities can be created by eliminating various weaknesses. External forces which are opportunities, threats, and trends are sets of uncontrollable factors the restaurant face and must overcome to succeed in the restaurant business. After conducting a SWOTT analysis legal and regulatory, economic, technology, Global and social trends were found external forces that need to be addressed. Legal and Regulatory Because of the external forces of opening a new restaurant or possible refitting and exiting building you will have to deal with the zoning laws. Restaurants need licenses and permits to operate or a food service establishment permit, alcohol license and food safety permit. Food safety health codes vary from state to state but restaurant businesses have to abide by the rules and laws that are put forth. The rules and regulations are to help protect the consumers and business. Economic Information regarding to products, services, tools, technology, and suppliers will compromise the economic environment of the restaurant. In 2001 California restaurants are projected to register 63.8 billion in sales, every $1 spent generates additional $1.19 in sales for the state economy. In 2010 there were 62, 794 eating and drinking places in California; every extra $1 million spent in California’s restaurants generates an additional 23.8 jobs in the state. In 2012 California restaurants employ 1,445,000 people (www.restaurant.org). Macroeconomics is very sluggish at this point in time. Inflation is at a high and banks are increasing interest rates. People are not spending as they did in the past they are more frugal with their finances. With the housing market in a slump, unemployment on the rise and with energy prices on the rise it is giving the restaurant industry a hard time. Changing labor conditions and cost is affecting smaller family type restaurants to eventually lose their business. Globalization Globalization shows opportunity for Greg’s restaurant to expand outside the United States. Forming a Limited Liability Company (LLC) it protects your personal assets from any liability the business incurs. If the owner plans on setting up a restaurant in different locations have separate LLC for the location. Social Socially people love to meet, dine, and have a drink and fun. But given the economic conditions of today it is hard for people to dine like they once did in the past. People are also concern about eating healthy and given the increase of a lot of food recalls in the past. Social media is also playing a big role in the marketing aspect of the restaurant industry. Technology Technology in the restaurant industry is very vital to the everyday operation. There is software available to track inventory, supplier orders, and to manage food orders. Technology is being developed every day to improve the way restaurants do business. Managers are no in more control of their staff with remote monitoring systems. Internal forces are more controllable factors a business can use to improve the operation and its path to success. After conducting an internal evaluation these were the factors the business came up with that is logical: strategy, strategic capabilities, and structures. Strategy In order for the restaurant to grow and expand a strategy has to be designed to which the business should offer products and services which customers could not receive from anywhere else. As far as strategizing the restaurant has the use of resource control which is key i.e. (operations, finance, supplies, and manpower). Strategic Capabilities Strategic capabilities play a big part in the restaurant industry. A business can create its own uniqueness through its marketing and strategic capabilities. A well- organized supply chain, a well trained staff, and a competent management team are strategic capabilities that will help the restaurant to fulfill its vision. The business also needs to consider its ability to manage working capital, expecting manpower issues and customer expectations and the ability to think ahead of the competition. As the industry changes over a period of time the threats and opportunities the restaurant will face the strategies and model of the business will have to adapt to these changes to meet the needs of the customers. It is very critical management focuses and maintain a product mix that works well for the business. The restaurant should position itself to reach specific demographic groups. Issues and Opportunities As mentioned in internal forces issues that are apparent is the lack of interactions between the employees. With these issues it allows opportunity to create meetings between employees and management. These meetings will allow staff to feel they belong and part of the family. It also allows employees to express what is working and not working for the business and what need improvement since the staff are the ones interacting with the customers. Balance Scorecard To develop a Greg’s Family Restaurant a balance scorecard is essential. It is key component for defining the goals and targets of a business as well as the mission vision and SWOTT analysis. A balanced scorecard is, â€Å"A set of four measures directly linked to a company’s strategy: financial performance, customer knowledge, internal business processes, and learning and growth† (Pearce Robinson, 2009, p. 202). Financial Perspective/ Shareholder Value A well thought out vision and mission statement will facilitate the restaurant to achieve its target. The restaurants objectives are to increase the performance of the restaurant. The responsibility of the restaurant is to seek its customer satisfaction. Increase revenue, and also achieve financial stability. Customer Value Perspective Customers determine the success of the business. The ups and downs of the restaurants as well as the delivery of the services the business provides relates to the customers satisfaction. The more the customers are satisfied the better the business will do to attract more customers. Process/Internal Operations Perspective Strategic planning is very effective to give a nutritious meal to customers. This should be done in accordance with the customer needs. The most important thing is to determine the purpose and intentions of the strategy, because this will help the business towards its goals. The restaurant should set its goals and the path while keeping in minds the values and interest of the patrons. Customer comment cards should be available so customers can express their comments and concern. Greg’s family restaurant is always taking initiatives to improve service and products to increase their customer base. Learning and Growth Perspective Learning and growth process is the prospective to know about your business and if it is developing into the type of business you dreamt of. Learning in accordance to Greg’s family restaurant means to learn about the attitudes of the employees which are internal and customers which are external. Strategic planning within the growth and learning perspective should focus on employee training to have competent employees. Balance Scorecard Shareholder Value/Financial Perspective Strategic Objectives * Market share should increase * Net revenues should increase * Financial stability should be achieved * Production cost should be minimized Performance Measure * Revenue growth * Increased operating cost * Return on interest and capital Targets * 3-6 % market share increase over the next 3 years * 20% profit margin Customer Perspective Strategic Objectives * Focus on public interest * Quality food should be delivered * Community support * Improving brand name in market Performance Measures * New Menu Items should be offered * Awareness of brand in public Targets * 100% customer satisfaction * 15% increase in customers for the next 3 years Initiatives * Restaurant should expand to other cities * Benefits rewards program Learning Growth Perspective Strategic Objectives * Employees retention increased * Technology should be improved * Employee satisfaction Performance Measures * Customer satisfaction should improve * Employee turnover rate decreased * Surveys, monitoring and training Targets * 100% participation of all employees Initiatives * Staff training * Improved customer service * Analysis of Staffing References Pearce, J. A. II, Robinson, R. B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). New York, NY: McGraw-Hill www.restaurant.org http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx