The concerned report discusses the French local restaurant located in the heart of Sydney- Bistro Moncur, a French Bistro that has gained immense popularity for offering some of the finest French food. This report will throw light on the external factors that can affect the business growth of the local restaurant, and also provide information regarding the threats and opportunities of the same. It will also discuss briefly the opportunities and threats that lie ahead for the company.
This report intends to conduct an external environment analysis or audit of Bistro Moncur, a local Australian restaurant located at Woollahra of Sydney, Australia.
As far as the scope of the report is concerned, it should be remembered that any restaurant, especially the small, local and emerging ones are largely dependent on the external environment in which they are operating. Thus, keeping a track on the competitors, socio-cultural tastes of the consumers and even the relevant laws and legislation is a must.
Hence, the only key for Bistro Moncur, to survive in a dynamic business environment is to monitor and audit the external environment at regular intervals and to develop effective strategies that can minimize the risks associated with the business. This report will throw light on the external factors that can affect the business growth of the local restaurant, and also provide information regarding the threats and opportunities of the same.
The concerned report discusses about the French local restaurant located in the heart of Sydney- Bistro Moncur, a French Bistro that has gained immense popularity for offering some of the finest French food (www.bistromoncur.com.au 2018).
From traditional French salads, Sauce Bernaise and Tortellini to desserts, wine and coffee, Bistro Moncur serves a variety of items to its customers and that too at a reasonable price. The organizational structure of the restaurant is explained below:
Operating in the food industry, the main target market of Bistro Moncur comprises of the native Australian people who have an interest in eating exotic dishes. Thus, people usually belonging to the middle class, and high middle class are being chosen as part of the target market as they need to afford exotic food items. Besides, people belonging to the age group of 20 to 55, residing in Sydney, or taking a trip to Sydney are prospective consumers of the restaurant (www.bistromoncur.com.au 2018).
An environmental analysis can be of two types internal and external. While internal analysis provides an insight into the strengths and weaknesses an organization has within the organization, the external analysis provides an insight into the external environmental factors, outside the company. External environmental analysis is an important strategic tool that is extremely helpful in assessing and evaluating the possible risks or potential opportunities that an organization is likely to face (Grant 2016). This analysis is extremely important as it helps in understanding how the environmental factors can positively or negatively influence the growth of business and its performance, and accordingly, the factors need to be controlled or adjusted.
The relevant environments that will be chosen as they are believed to have a potential impact on Bistro Moncur are political factors, economic factors, sociocultural factors, technological factors, and legal factors. While political factors such as the presence of a stable government, trade tariffs, etc. are important to be considered for business, economic factors such as demand and supply rates, interest, and exchange rates are equally important. It is indeed true that businesses usually have little or no impact on the above-stated macro-environmental factors, yet it can adapt to the environment better if it has sufficient knowledge regarding its external environment (Epstein 2018).
The competitors of Bistro Moncur are few as it offers French food items, and a few restaurants such as Felix, The Beach Eatery and Claires Kitchen at Le Salon can be considered as competitors.
Political Factors Presence of a highly reliable, internationally competitive, stable government that can certainly ensure absolute business stability.
Needs compliance with the Restaurant and Catering Industry Association of Australia which has introduced various restaurant policies that clearly mention those restaurant owners (especially the small and local ones) should pay extra attention to the healthiness of items served even if that implies additional expenses.
Economic Factors Australia is expecting an increase of 50% of the total number of tourists visiting the country, especially Sydney (Groenewegen and McFarlane 2014).
The unemployment rate is low in Australia, a mere 5.4% (Guest and Layton 2018).
The economic growth of the country is higher than almost all the OECD nations.
High GDP indicates higher economic stability.
Social Factors French cuisine is one of the few foreign cuisines that the Australian natives have a special love for.
The population is growing at a fast pace, and is expected to reach 24.9 million by the end of the year, with a large number of youths residing in the nation.
Health awareness amongst the Australians is impacting food choice.
Technological Factors The use of mobile technology is growing at a fast pace, and is likely to impact the service industry.
Impressive telecommunication structure is enjoyed here.
Environmental Factors The continent is extremely dry.
Climate change and global warming are the two predominant issues even in Australia.
Legal Factors Trading and employment laws are very strictly monitored.
The Fair Work Act 2009 governs the employee hiring policies (Zhou and Wakefield 2018).
From the above discussion, it becomes clearly evident that Bistro Moncur is likely to experience a set of opportunities that are going to favour the growth of its business. The political stability and economic growth will favour business growth and will provide opportunities for future expansion. At the same time, with the increased number of tourists visiting Australia, a large number of tourists are likely to visit this restaurant, and as such Bistro Moncur can even consider expanding in other parts of Australia such as Queensland, which is mostly visited by the tourists. Owing to the impressive technological infrastructure, the company is likely to benefit from the use of mobile apps that can be used for ordering food online. As far as the threats are concerned, the company may face trouble as more and more people in Australia are moving towards healthier food alternatives, and thus eating spicy, exotic food may not be a choice. Besides, strict employment laws in Australia may affect the cost-cutting strategy of the company. Easy availability of cheap labor can indeed be a problem.
To conclude, it can be stated that Bistro Moncur does have a bright prospect in Australia. Though at present, it is nothing but a small restaurant, it is expected to grow and prosper over the coming years. The external environmental analysis does show that it can harness technology to improve customer service, and may consider expansion in other cities.
www.bistromoncur.com.au 2018. French Restaurant Sydney – Bistro Moncur Woollahra. [Online] Bistro Moncur. Available at: Accessed 15 Dec. 2018].
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Rutledge.
Groenewegen, P. and McFarlane, B., 2014. A History of Australian Economic Thought (Routledge Revivals). Routledge.
Guest, R. and Layton, A.P., 2016. A report on the development of learning standards for economics in Australia. Australasian Journal of Economics Education, 13(1), pp.1-12.
Zhou, S. and Wakefield, M., 2018. A Global Public Health Victory for Tobacco Plain-Packaging Laws in Australia. JAMA internal medicine.
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