Strategic Plan Part 2 SWOTT
Strategic Plan Part II: SWOTT Analysis for The Salad Bar
BUS/475
November 17, 2014 Strategic Plan Part II: SWOTT Analysis for The Salad Bar
Any new business owner should know that success is not guaranteed, even for the best concepts. The restaurant business is no exception with most new restaurants failing within the first year. After that, 70% fail in the next 3-5 years and out of those that make it past that, 90% make it no more than 10 years (Gemberling, 2012). External forces are some of the greatest factors in the success or failure of a new business. This paper will identify strengths, weaknesses, opportunities, threats and trends for some of those external factors such as economic and legal and regulatory forces and trends and how The Salad Bar will adapt to overcome them. The analysis will also cover supply chain as well as other issues and opportunities.
Economic, Legal and Regulatory Forces and Trends
Economic factors concern the nature and direction of the economy in which a firm operates (Pearce II, 2013). Prices play a large part in consumer choice when it comes to food. During economic downturns, restaurants with lower price points typically fare better so great consideration should be given to meal pricing. However, the differentiation of The Salad Bar’s offering can be considered a strength there as customers are often willing to pay a little more for high quality, healthier foods. Given America’s recent trends in health consciousness, especially when it comes to food, The Salad bar should have some extra flexibility when it comes to pricing regardless of the economic climate.
Legal and regulatory factors will have a significant impact. Due to the recent problems with food safety, the FDA and USDA have implemented several new regulations to ensure public safety. The Salad Bar will need to ensure that it is constantly aware of existing regulations, exceeding expectations, and passing all inspections. A single black mark in
BUS/475
November 17, 2014 Strategic Plan Part II: SWOTT Analysis for The Salad Bar
Any new business owner should know that success is not guaranteed, even for the best concepts. The restaurant business is no exception with most new restaurants failing within the first year. After that, 70% fail in the next 3-5 years and out of those that make it past that, 90% make it no more than 10 years (Gemberling, 2012). External forces are some of the greatest factors in the success or failure of a new business. This paper will identify strengths, weaknesses, opportunities, threats and trends for some of those external factors such as economic and legal and regulatory forces and trends and how The Salad Bar will adapt to overcome them. The analysis will also cover supply chain as well as other issues and opportunities.
Economic, Legal and Regulatory Forces and Trends
Economic factors concern the nature and direction of the economy in which a firm operates (Pearce II, 2013). Prices play a large part in consumer choice when it comes to food. During economic downturns, restaurants with lower price points typically fare better so great consideration should be given to meal pricing. However, the differentiation of The Salad Bar’s offering can be considered a strength there as customers are often willing to pay a little more for high quality, healthier foods. Given America’s recent trends in health consciousness, especially when it comes to food, The Salad bar should have some extra flexibility when it comes to pricing regardless of the economic climate.
Legal and regulatory factors will have a significant impact. Due to the recent problems with food safety, the FDA and USDA have implemented several new regulations to ensure public safety. The Salad Bar will need to ensure that it is constantly aware of existing regulations, exceeding expectations, and passing all inspections. A single black mark in