Pes

You might also like

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 7

1

SUBMITTED TO:
MAM Amna hafeez

SUBMITTED BY:
ABDULLAH F2019001132
HASHIM MAQSOOD F2019001034
ZAIN YASIN F2019001196
Adil amjad f2019001162
Noor gujar f2019001138

COURSE TITLE: Entrepreneurship

TOPIC: PESTEL, SWOT, PORTER FIVE FORCES


2

1. PASTEL Analysis
1.1. Political factor:
Cultural food leading all type off culture food. If the government want the creation of more
stores at other Pakistani airports, then this plan will contribute to boosting employment
prospects there .increase the facilities and opportunities for passengers and employees
Government laws change throughout time, and this restaurant is capable of adapting to those
changes and making business plans in line with them.. If the government promotes this
enterprise, this restaurant will open additional locations in Pakistani airports. (libguides, n.d.)
1.2. Economic factor:
Economic variables support businesses' short- and long-term objectives. If more people wish
to dine outside of their homes then additional money can be made. While they wait for their
flights, passengers enjoy eating something, and they spend money at restaurants. The cost of
raw materials will rise along with inflation, which will result in higher product pricing.
1.3. Social Factor:
Asian cuisine and cultures are both impressive to this restaurant. Everyone enjoys eating
healthy food and avoids fatty, spicy, and salty foods. Customers at this restaurant may order
all type of cultural food e.g.: karahi, handi, roti, bbq, halwa pori ,nahari,and in sweets is kheer
and jalibi that are all healthful. This restaurant serves food that is primarily organic. (future
learn, n.d.)
1.4. Technology factors:
Then many people like to order online and try to booking earlier due to that reason our
restaurant decided to adopt similar trends and develop its own online ordering system in an
effort to draw in more customers. All type of internet meal ordering and smartphone payment
acceptance and earlier prepared food for minimize time wastage. For clients who do not want
to leave their seats, one restaurant creates its own app. Therefore, they use an app to place a
restaurant order. This restaurant has a large menu screen. Customers can readily understand
it; therefore, they place a food order.one person hire for handling app service.
1.5. Environmental:
People like to visit restaurants that are cleaner than others are. Main key point of culture food
is clean. Instead of using plastic bags, this restaurant employs paper bags and paper wrapping
sheets. Additionally, they recycle garbage using an effective management system. Instead of
plastic straws, they use paper ones. Additionally, wastebaskets have been positioned outside
the eatery. They offer clean environments by using effective recycling methods.
(economctimes, n.d.)
1.6. Legal:
This restaurant is legally permitted to operate at the airport because it has all the necessary
licenses. These documents include a NOC from the local government and approval from
Pakistan's civil aviation authority to operate on airport property. Additionally, you need a
3

license from the food authorities to start a restaurant and run it safely. This restaurant operates
in accordance with all airport and governmental policies. They work in accordance with the
airport's timetable and operating policies. If this restaurant or any of its employees violate any
laws, they will be subject to penalties and held accountable for all wrongdoing.

2. SWOT Analysis
2.1. Strength
 Neat and clean
Neat and clean environment are one of the biggest qualities that a restaurant can have to
attract.no one wants to sit in dirty place and eat in dirty dishes. As restaurant owners, we will
make sure it is neat and clean, by doing this everybody would love to visit our restaurant and
also catch everyone eyes ,usually the restaurants and hotels are dirty at airport passenger
lounge everyone is in hurry to catch there flight in doing so sometimes they create a mess.
Our focus will be to make sure our tables and dishes are clean. This is the most obvious
reason of less customer coming to restaurant. We make sure to provide our customers neat,
clean, and stimulating environment
 Affordable 
One of key strength of our business is providing top-notch hospitality at low rates. We want
our customers to have five stars restaurant food experience at very reasonable prices. It does
not mean we are doing any compromise on our final product it is just we are keeping our
profit margins low just to attract more customers. (sidebazaar, n.d.)
 Improved Customer Service
A restaurant is mainly judge by its customer service and then secondly by its food. Our
restaurant is going with zero tolerance policy on staff in term of providing best customer
service and hospitality. Waiters will make sure of attending all the customers on time and
taking and delivering there orders on time. After finishing their meals, customers can fill their
opinions and put them in suggestion box, so that we can make further improvements.
 Variety Of Products
The thing that people usually do not like about traditional restaurants are that they have only
limited number of verity in dishes. In our restaurant that’s not going to be case because we
are going to offer vast number of dishes almost 3 to 4 items from every province of Pakistan
our customers will think that our restaurant is very capable and has a lot of trained people to
provide them quality service
2.2 Weakness
 New Venture
Nowadays people become very brand conscious and fussy. They do not feel comfortable in
eating in new place. Some people believe in sticking to one place and being loyal to them.
New restaurant will not attract them.in start to build our brand name and customer loyalty it’s
4

going to take some time. People doesn’t trust new trust new brands so quickly (sidebazaar,
n.d.)
 Limited Resources
TO offer clients a top-class experience of visiting our place. A lot of investment is required in
the location, hotel grounds, staff, chief and many more things. This can be tough when the
resources and capital is limited
 Offering only traditional food 
One of our weakness is that we only offer traditional food but some people have taste
for western food and fast food. Traditional food also take more time to prepare as
compare to fast food
 Location
Location is strength and at the same time is weakness of our business. If it is located away
from the boarding gate of the passenger, they will not prefer coming to our restaurant.
Flights timing will be also going to be issue as we are located on the airport some days
there more flights and some they are less which mean we will face some fluctuation in
customer numbers on daily basis (sevenrooms, n.d.)
2.3 Opportunities
Opportunity of our business is that it is going to be only one of its kind at airport whose
core focus is traditional food it will attract many customers when they will see their
favorite dish on the menu. Our business will make sure to stay upto date with the latest
trends. Learn about what people love to eat these days.In winters we will provide soups
and in summer we provide lassi almond milk and other Pakistan traditional drinks.
2.4. Threats
The main threat in restaurant is other restaurants or rivalry with existing food business. In
food business there is high competition and on airport terminal it can be more challenging
when there is only limited number of customers available. Customer mood can be also
one factor some time a person like to eat one food and sometimes other. Some other
threats are delay in supply of ingredients. Dependency on head chief is also a very
challenging
3. Porter’s five forces analysis
3.1. Competition among the Competitors
Competitions for the food at the airport are very low. Prices are very high at the airport.
industries compete for strategy by the low pricing and quality of the product which can be
unique from the other industry. Competition within an industry is grounded in its underlying
economic structure. It goes beyond the behavior of current competitors. Competition in an
industry depends upon five basic competitive forces. The collective strength of these forces
determines profit potential in the industry. The profit potential is measured in terms of long-
term return on invested capital. Different industries have different profit potentials just as the
collective strength of the five forces differs between industries. In the food industry,
5

competition is relatively high. Thus, firms in this category prioritize gaining a competitive
advantage by using one of the ways could be the change in prices, to focus on differentiating
the product and bringing about its improvements, making use of creative channels of
distribution, and exploiting the relationship with suppliers. Rivalry is automatically increased
when the firms are competing with the same customers. (crunchbase, n.d.)
Pricing
Due to the low pricing of food at the airport, no firm can compete with this kind of firm. by
lowing the pricing, we can compete with the other industries. At the low price, we sold the
food with good quality by this uniqueness we can compete in any other sector.
Competitive strategy to develop

 Highlight the company’s critical strengths and weaknesses


 Locate its position in the industry
 Clarify areas where strategic changes will result in the greatest payoffs
 Locate areas where industry trends indicate the greatest significance as either
opportunities or threats (restaurantden, n.d.)

3.2. Threat Towards the Entry of New Entrants in the Market


The threat of the entry of a new entrant is very high in the case of the food industry. This is
because there are very few barriers to entry. It is also cheaper to start up a restaurant than any
other business. Individuals can easily acquire their own funds as compared to starting any
other business. Also, it is the experience that holds pivotal importance and not only the food.
It is therefore important for the food industry to focus on the entry of any new entrant that
might become a threat soon. We can reduce over threats by becoming the brand at the airport.
When new entrants realize too much competition and quality and low pricing of products.
The threat of new entrants

 Low initial capital investments


 No threats of retaliation
 Weak govt regulations
 Easy access to suppliers
 Easy access to distributors
 Low level of brand loyalty in the industry

One more thing is loyalty. We can compete with other industries through the loyalty of our
brand to the customers. When new entrants want to analyze the market and then penetrate the
market. (heffins, n.d.)
3.3. The Threat of Substitutes

A substitute product performs the same or a similar function as an industry product by a


different means they essentially fulfill the same underlying need even though they may not
6

look identical on the surface they are therefore easy to overlook the existenceof these
products alone increases the possibility that customers switched to alternatives in order to
discover these alternatives should look beyond similar products that are branded differently
by competitors instead every product that serves a similar need for customers should be taken
into account energy drinks like Red Bull for instance are usually not considered competitors
of coffee brands such as Nespresso or Starbucks, however since both coffee and energy
drinks fulfill a similar need that is staying awake or getting energy customers might be
willing to switch from one to another if they feel that the prices increase too much in either
coffee or energy drink the number of substitutes the willingness of customers to substitute
and the relative price performance of substitute products are therefore factors that determine
the total threat of substitute products since substitute products can lure customers away
companies need to take actions to stay more attract and prevent their product from becoming
replaced or obsolete (posist, n.d.)

3.4 Bargaining Power of suppliers

In it force analyzes how much power and control a company's supplier has over the
Potential to raise its prices or to reduce the quality of purchased goods or services which in
turn would lower an industry's profitability potential the number and concentration of
suppliers to choose from are important factors in determining supplier power the fewer there
are the more power they have businesses are in a better position when there are a multitude of
suppliers sources of supplier power also includes the switching cost of companies in the
industry the presence of available substitutes the strengh of their distribution channels and the
uniqueness or level of differentiation in the product or service the supplier is delivering the
bargaining power of suppliers in the airline industry can be considered very high when
looking at the major inputs that airline companies need see that they are especially dependent
on fuel and aircrafts these inputs however are very much affected by the External
Environment over which the airline companies themselves have little control the price for
aviation fuel is for example subject to the fluctuations in the global markets for oil which can
change wildly because of the geopolitical and other factors in terms of aircrafts only two
major suppliers exists Boeing and Airbus Boeing and Airbus therefore have a substantial
bargaining power of the prices they charge

3.5. Bargaining Power of Buyers

This force analyzes to what extent customers are able to put the company under pressure by
demanding better quality they're right driving up costs or exertion trol over price keep in mind
that buyers do not always have to be the end consumer in case if business is a manufacturing
company buyers can be other companies like retailers for example customers have a lot of
power when they aren't many of them and when the customers have many alternatives to buy
from moreover it should be easy for them to switch from one company to another buying
power is low however when customers purchase products in small amounts act independently
and when the sellers product is very different from any of its competitors the Internet has
allowed (edrawmind, n.d.)
7

References
(n.d.). Retrieved from libguides: https://libguides.libraries.wsu.edu/c.php?
g=294263&p=4358409#:~:text=Political%20factors%20include%20government
%20policies,regulation%20and%20de%2Dregulation%20trends.

(n.d.). Retrieved from future learn: https://www.futurelearn.com/info/courses/managing-company-


culture/0/steps/216765

(n.d.). Retrieved from sidebazaar: https://slidebazaar.com/blog/swot-analysis-of-a-restaurant/

(n.d.). Retrieved from crunchbase: https://www.crunchbase.com/organization/khareedo-pk-2

(n.d.). Retrieved from restaurantden: https://restaurantden.com/5-potential-threats-to-restaurants-


in-the-future/

(n.d.). Retrieved from heffins: https://www.heffins.com/news-events/blog/your-food-business-


protected-these-five-key-risks

economctimes. (n.d.). Retrieved from https://economictimes.indiatimes.com/definition/pest-analysis

edrawmind. (n.d.). Retrieved from https://www.edrawmind.com/article/swot-analysis-for-


restaurant.html

posist. (n.d.). Retrieved from https://www.posist.com/restaurant-times/uae/perform-swot-analysis-


uae-restaurants.html

sevenrooms. (n.d.). Retrieved from https://sevenrooms.com/en/blog/swot-analysis-for-restaurants-


guide-template/

You might also like