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5.Analyze Roberto’s on the River and In a Hurry according to the BCG Matrix.
The Roberto’s on the River can be considered as cash cows. From Exhibit 1, the
Roberto’s on the River obviously successful at the start which occupies the highest revenue about $3150 among the four types of restaurants, but the business display low constant growth from 2010 to 2013. The business produced the largest profits in every year and it still has future potential development in the market. Cash flow can be the reverse to support Pesi’s expansion.
According to BCG Matrix, In a Hurry played the role of Dogs. It demonstrates the lowest income and less potential for future improvements.
6.Using Porter’s Competitive Model, analyze the restaurant industry in the K-W area
?Competitive Rivalry
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Roberto faces stressful competition from similar industry business. His restaurant may be influenced by other local restaurants especially who in the same area as well. Other local restaurants may draw consumers away. McDonald?Starbucks and so on also can be the competitor to the company.
?Threat of Substitution
It similar with the above answer that the local surrounding restaurants will be the substitution. If other restaurants do something better than Roberto’s, guests will be attracted by certain conditions. The company may use the strategy that other hard to imitate so that can decrease the threat of substitution.
?Bargaining Power of Suppliers
Roberto has to deal with suppliers about the prices of materials that he needs. He should balance both of the inputs cost and outputs profit. If there have lots of suppliers, the prices will go down because the buyer’s power will have power to select resources.
?Bargaining Power of Customers
When there are many restaurants here, the customer can choose the one who has nice price and not bad catering. It will cause guest dispersal to everywhere. Competitor have to fix their price for cater consumer’s trends.
?Threat of New Entry
To open a new restaurant is difficult at the beginning, new entrants need to has strong fund to support them and to build a good reputation. Also, they have no loyal
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customer, so it is not friendly for those new company to enter to market.
7.What is Roberto Pesi Restaurant Inc.’s grand strategy? Be specific.
In the future of few years Roberto’s restaurant will be expanding their business. With enough reputation and money, Roberto tends to develop his business to global, no longer only just in local place. It is the long-term plan to be globalization. To compare with other business, Roberto’s firm is low-risk from his previous good progress.
8.Based on all of the above analysis, provide seven pieces of advice for Rob. Include your opinion on the new expansion.
?Try to spend more time with your family
?Do not put all the restaurant in one building, try to be globalized in future with open chain store
?Before confirm to expansion, you should clearly understand present financial statements and the force of competitive in market to make sure that is good for you to expand.
?Keep carry out your ethics to build good reputation.
?Observe your competitors and trends of consumer to make current plan.
?Spend money on advertisement
?Hire more long-term staffs, cut down university students