Question

"Let's say you are the owner of a local Italian restaurant in a suburb of a large city. The restaurant is turning a nice profit, and you've been approached by an investor who wants to help you open 10 more locations throughout the state. Create a SWOT analysis to help you understand what decision you would make. What kinds of data would you need in order to make an informed decision?"

Answer 1

1.Strength, weaknesses, opportunities and threats

Further explanations can be seen below

2.Data that analyze the demographic of potential customers in your area can be helpful. The availability of ingredients for cooking near you to save man hours in looking for them. The number of restaurants in your area, what they do etc

Step-by-step explanation:

SWOT Analysis represents Strength, weakness, threats and opportunity to a business outfit. To open more restaurants, let's look at the them one after the other.

Analysis of Strength

The strengths of your restaurant lie in what you do exceptionally well, whether it is price structure, tasty meals, a nice and cool environment, delivery to clients who work in offices, Quality service and a nice client relationship management.

if you offer promotional offers like buy 1 and get 1 free or christmas or Easter bonus. That could be your strength.

Analysis of Weaknesses,

Weaknesses may be not having enough staff to deliver to your clients at the heart of the city, the weakness of your waiters ,probably inability to communicate effectively with your customers, inadequate staff trainings, and lack of funds for publicity and advertisements

Analysis of Opportunities

Opportunities you could actually take advantage of might be getting more sales during festive seasons like christmas, easter. Opportunities could be selling different foods and beverages. baking cakes and cookies for birthdays and anniversaries

Analysis of Threats

The threats could be your competitors.One of them is a major food outlet who sells across the street, directly opposite to your shop. Rising price of ingredients and sea foods. increments in tax payment by the government, Political instability, economic crises or downturn like the world economic meltdown that occured few years ago

Data:

Analyze the demographic of potential customers in your area. The availability of ingredients for cooking near you to save man hours in looking for them. The number of restaurants in your area, what they do etc

Answer 2

SWOT Analysis developed in explanation

Step-by-step explanation:

As the owner of a local Italian restaurant in a suburb of a large city being approached to open 10 more restaurants is actually a welcome idea due to the influence of the already big name restaurants in the city. The following represent the SWOT or Strength, Weakness, Opportunity and Threats Plan I can develop to make informed decision

My SWOT ANALYSIS FOR 10 NEW RESTAURANTS

1. My Strength:

• First my business is turning a nice profit which means people like my food
• I bring a specialty in the name of Italian food that is more unique than the big names out there
• I bring employment to the locals in my restaurant and try to remunerate well with good work conditions
• I attract a unique set of customers who like my specialty for my own market

2. My Weaknesses:

• My specialty is not diverse, so only those who like Italian Cuisine come
• I do not have so much capital like big name restaurants to expand as much as I like or try new cuisines
• My Business is only in one location presently compared to thousands of other big brands

3. My Opportunities:

• Opening new branches will give me the required publicity
• New branches means developing brand and a developing franchise meaning more investors can be attracted
• New branches mean new customers and a greater market share
• New branches mean more employees and more Corporate Social responsibilities

4. My Threats

• Making Italian cuisine in 10 locations will require specialised and trained workers, if they are not properly trained it will threaten the good name I have built
• Competitors from big franchises will begin to see me as competition and take active plans to either do what I do or other steps to shut me down
• Getting raw materials or ingredients for my specialty will be on a larger scale than before so new contacts and markets may be difficult to access. If this happens, the cost will rise and my food may become more expensive.

The Kind of Data I would need to make an informed decision will be a SWOT Analysis as well as a feasibility study. These will give me both a qualitative and quantitative assessment of my intended market. It will speak to customers, availability of raw materials, pricing, competition, environment as well as regulations. All these will help make an informed decision.