Business Policy and Strategy Cafe de Coral 3

Topics: Hong Kong, Strategic management, Fast food restaurant Pages: 22 (3152 words) Published: April 26, 2015
1 Executive Summary
2 Introduction
3 External Analysis
3.1 PESTLE Model
3.2 Porter’s Five Forces Model
4 Internal Analysis
4.1 Resource-based View
4.2 Value Chain Analysis
5 Evaluation of Current Strategies
5.1 Corporate Level Strategy
5.2 Business Level Strategy
5.3 Functional Level Strategy
6 Opportunities and Problems of each level
6.1 Opportunities
6.2 Problems
7 Conclusion
8 Reflective Statement
9 Appendix – SWOT
10 Reference
11 Word Count& Responsibility Assignment
1. Executive Summary

2. Introduction
2.1 Background of Café de Coral
Café de Coral is a fast food restaurant group in Hong Kong. It owns and runs different restaurants and fast food shops, for example, Café de Coral, The Spaghetti House, Oliver’s Super Sandwiches and so on.

The first Café de Coral restaurant was found in 1968 in Causeway bay. After the industrious work, Café de Coral developed from one single shop to a leader of Chinese fast food restaurant group in the world.

2.2 The reason of choosing Café de Coral
Nowadays, fast food culture is popular. It is easy to find a fast food shop in everywhere. It means that the competition is hard in this industry. How does Café de Coral win and beat the others under this hard competition? It is a funny question and our group is going to find out the answer.

2.3 Vision and Mission
The vision is to striving for excellence and staying ahead in today’s rapidly changing world.

The mission is to become the best-loved and most competitive catering group in Greater China with leading brands across all major market sectors. 3. External Analysis
3.1 PESTLE Model
3.1.1 Economic Factor
According to Hong Kong Trade Development Council’s research, Hong Kong’s economy expanded by 2.3% in real terms in 2014, moderated from 2.9% in 2013. For 2015 as a whole, the economy is forecast to grow by 1-3%. (HKTDC, 2015)It shows that Hong Kong people are willing to have lunch or dinner outside and they have stronger purchasing power than before. There are over seven million residents in Hong Kong. Both of them own strong purchasing power. They can be a huge demand for quality foods.

Moreover, visitor arrival increase more than 10% per year. In January of 2015, there are over five million China visitors visit Hong Kong. (HKTB, 2015) It is another huge demand for quality food.

3.1.2 Political Legal Factor
Hong Kong is the world’s freest economy. Businessmen can run their business which is legal without many barriers. Business can enjoy a low tax rate and simple tax system. (Investhk, 2015) They can focus on their business only. Moreover, Hong Kong have a perfect intellectual property protection system. When company develop a new and unique cooked food, intellectual property protection system can ensure their benefit.

3.1.3 Sociocultural Factor
Fast foot culture was developed in 1970. People pay the attention to time saving. However, they think that fast foot is not healthy. Many people care about healthy now. Therefore, we should consider health impact for restaurant food. (Daily, 2015)

3.1.4 Technological Factor
For cooking equipment, they use less resources and make little pollution nowadays. This is because we can use electric tools to cover for traditional cooking tools. For this new technology, it is better for a chef to control the electric tools’ temperature, function and time. (Cleanerproduction, 2015) 3.1.5 Demographic Factor

Hong Kong has an ageing population. While the total population grew by 39% between 1981 and 2013, the population aged 65 and over increased by 197%. (Department, 2015) Therefore, restaurant can focus elders in the future. They can be another demand for some traditional food. On the other hand, we should take care about employment problem as the labor forces is decreasing. 3.2 Porter’s five forces model

Porter five forces analysis is a tool to analyze level of competition within an...
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