Discuss about the Influence of Quality Physical Environment.
The report talks about the marketing strategies, situational analysis, and approaches of the Degani café. It tells that how the company is analyzing and identifying the great opportunities in the market across the world. It explains the Pestle analysis for evaluating the image of the competitors in the region. It explains that how the company is achieving the long-term goals and objectives and it explains the competitors’ position of the firm. Degani café is one of the biggest leaders in food and beverage industry.
The current strategic approach to the organization is very effective and unique. Degani café provides safe and secure workplace to the employees to increase the productivity and efficiency of the employees. The firm is focusing on promotional and advertisement strategies to increase and enhance the growth and revenue of the firm. The firm is planning to expand its business in New South Wales, South Australia, and Queensland. By using of marketing strategies, the company is improving the quality of products across the world. In this way, Degani café is providing excellent and effective food and beverage services to its customers in the market (Kim & Lee, 2012).
Further, the company uses the generic strategic approach for the organization to evaluate the success and growth of the firm. The generic strategy approach minimizes the prices and costs of the food products in the market. The Degani café offers products at reasonable prices compared to the other competitors that are existed in the market. In addition, the company uses differentiation strategy to differentiate its products from the competitors’ products in the market. Along with this, the company is using the intensive growth strategy to search and to reach more customers in the market (Morris, Shirokova & Shatalov, 2013).
Resource-based view strategy is used by the Degani café to determine the resources of the firm that is available in the firm. Through resource-based view approach, the organization can gain the competitive advantages in the firm. It helps to identify and analyze the potential resources of the firm. This strategy determines the sustainable growth of the organization in order to meet the long-term goals and objectives. It ensures the maximum utilization of resources (Djekic, Tomasevic & Radovanovic, 2011).
Pestle analysis stands for political, economic, social, technological, legal factors and environmental factors. The organization analyzes and evaluates these factors to face the challenges in the market.
Political factors: These factors affect the fast food industry. These factors include tax policies, rules and regulations, and employment laws. All these factors affect the business activities and operations of the company negatively. Degani café should control these factors to overcome on its competitors in the market (Baert, Van Huffel, Wilmart, Jacxsens, Berkven, Diricks & Uyttendaele, 2011).
Economic factors: The economic factors include local currency, taxation level, interest rate; inflation and local economic environment affect the food and beverage industry in the market. Therefore, the company should evaluate and analyze these factors to gain the opportunities in the market.
Socio-cultural factors: These factors include consumer preferences, changing the lifestyle of the population, changing work pattern, changing the family pattern and changing value among the population. These factors affect the Degani business negatively. These factors play a vital role in Degani café. The company should focus on these factors to gain long-term goals and objectives. The food industry should focus on the consumer wants, needs and requirements to attract the more consumers in the market (Djekic, Tomasevic & Radovanovic, 2011).
Technological factors: Technological factors play a vital role in Degani café. These factors include the emergence of innovative technology, development in agriculture and biotechnological developments. The technological factors give a competitive edge to the firm. Technology is necessary to create packaging, production of food and food labels. The firm should identify and measure these factors to make a good position in the market.
Environmental factors: These factors include environmental rules and regulations, global warming, environmental disasters and other environmental issues which affect the business of Degani café. If the company wants to gain the success and growth in food and beverage industry then it should control on these factors (Kirezieva, Jacxsens, Uyttendaele, Van Boekel & Luning, 2013).
Legal factors: The legal factors include various trade regulations; licensing rules and regulation related to food industry also affect the business activities and operation of Degani café. The firm should measure these factors to beat the competitors in the market.
After the analyzing and evaluating these external factors, the food and beverage company can identify and measure the plans and strategies of the competitors in the market (Aurand, 2013).
The porter five forces analysis determines and evaluates the competitor’s strengths and weaknesses in the market. This model developed by the Michael Porter to evaluate the current situation of the market. The porter five forces analysis has been discussed below.
Rivalry and competition: The huge competition exists in the market. Thus, competitors affect the business activities and operation of the company negatively. Therefore, this model analyses and measures the competition which is existed in the market across the world.
Bargaining power of buyers: The bargaining power of suppliers also affects the business of the company. These factors are considered the external elements of the market. There are many substitutes in the food industry that influence the business activities and operation of the company. It is the major issue in this organization. In the market, various elements give a contribution to maintain the unique bargaining power of buyers (Baert, Van Huffel, Wilmart, Jacxsens, Berkven, Diricks & Uyttendaele, 2011).
Bargaining power of suppliers: The suppliers are the major concern for the food industry and they affect the business of the company. The bargaining power of suppliers includes the moderate size of suppliers and various kinds of suppliers that exist in the market. Thus, the firm must analyze the behavior of the suppliers.
Threats of substitutes: Threats of substitutes is the primary issue in food and beverage industry. Threats of substitutes include switching cost, unsuitable cost of substitute and availability of various options. The organization should control these factors to overcome on the competitors in the market.
Threats of new entrants: Threats of new entrants include supply chain cost, brand development factor, and modest cost of business. The firm should analyze the new entrants to measure the reliability and integrity of the competitors.
Degani café was developed in 1990. It is one of the biggest players in the café market. The firm is expanding its business day by day. Currently, the company is operating and managing 80 cafes, kiosks and restaurants across the world. The food and beverage of Degani café are unique and delicious (Ryu, Lee & Gon Kim, 2012). The main aim of the company is to provide unforgettable and excellent services to its customers across the world. The core values of the café include dignity, transparency, passion, teamwork, and respect. There is a close relationship between mission and strategies of the Degani café. It uses effective and unique approaches, strategies and plans in order to gain long-term success and growth in the market. The firm is flourishing its business day by day across the world. The company is trying to offer the best quality of food and coffee to the people in the world (Yeon Kim & Chung, 2011). The Degani café is focusing on marketing strategies, generic strategies, business level strategies and intensive growth strategies to overcome on the competitors across the world. The core competencies and core value have an effective option to attract more customers in the market. Further, the firm is maintaining sustainable human resource management to run the business smoothly. Further, it uses various effective promotion and advertisement channels to increase and enhance the revenue and profit of the café in the market. In addition, the firm conducts various effective and unique campaigns and other programs for reaching the potential customers in the market. Further, the Degani café uses differentiation, cost leadership and focus strategies to face the key challenges and issues in the market. The organization cannot achieve the goals and objectives without using marketing strategies in the business. The firm should evaluate the major external factors of the environment to measure the market condition in the country. Diversity is also mandatory elements for the company in order to meet goals and objectives of the firm. It is focusing on the highest standards of excellence and intelligence to deliver the coffee and beverage products across the world. The vision statement is a future-oriented and it depends on the forecasting (Galizzi & Venturini, 2012). The vision is made for the long time period in the company. The firm maintains communication and collaboration among customers, employees, and suppliers across the world. Manpower is essential for the firm to attain the goals and objectives of the firm. The vision and mission statement generate a target for strategic expansion and development. The strategies provide the high level of guidance to the employees. In addition, the company is maintaining good customer relationship in the market. Now it has been analyzed that there is a close relationship between strategies and context of the Degani café. The firm should focus on the marketing mix strategies to gain the competitive advantages in the market. The marketing mix includes product, price, place, and promotion. In this way, the company can achieve long-term sustainability in the environment. Skilled and qualified candidates must be appointed by the company to serve its products and services in an effective way (Falguera, Aliguer & Falguera, 2012).
Although the Degani café is providing various excellent and unique foods, beverage products and coffee to the customers but still it needs to evaluate and measure the strengths and weaknesses of the competitors across the world. The firm should focus on the generic strategy and intensive growth strategy to provide satisfaction to the customers across the world. It must focus and evaluate various food and coffee products (Cairns, Angus, Hastings & Caraher, 2013). The company should improve its communication and collaboration strategy to maintain good relations with customers across the world. It must provide services at reasonable prices to the customers so the middle and lower categories people can also go in such cafe. The organization must increase the products and services of the company to attain the growth and success in the market. The organization should provide good wages and salary to the employees. It will help to enhance and increase the confidence and morale of the employees. It will also increase the productivity and efficiency of the organization and employees as well (Grunert & Traill, 2012).
Conclusion
On the above discussion, it has been noticed that Degani is the biggest leader in food and beverage industry in Melbourne. The café is providing an excellent and effective variety of food products and services to the customers across the world. The organization is adopting attractive and successful strategies to increase the revenue and profit of the firm. Through Pestle analysis, the company evaluates and analyzes the competitive strengths and weaknesses across the world. Further, some effective recommendations have been given in the report to gain the sustainability and success in the market. The firm is trying to become the biggest brand in food and beverage industry.
References
Aurand, L. W. (Ed.). (2013). Food composition and analysis. Springer Science & Business Media.
Baert, K., Van Huffel, X., Wilmart, O., Jacxsens, L., Berkvens, D., Diricks, H., … & Uyttendaele, M. (2011). Measuring the safety of the food chain in Belgium: Development of a barometer. Food research international, 44(4), 940-950.
Cairns, G., Angus, K., Hastings, G., & Caraher, M. (2013). Systematic reviews of the evidence on the nature, extent and effects of food marketing to children. A retrospective summary. Appetite, 62, 209-215.
Djekic, I., Tomasevic, I., & Radovanovic, R. (2011). Quality and food safety issues revealed in certified food companies in three Western Balkans countries. Food Control, 22(11), 1736-1741.
Falguera, V., Aliguer, N., & Falguera, M. (2012). An integrated approach to current trends in food consumption: Moving toward functional and organic products?. Food Control, 26(2), 274-281.
Galizzi, G., & Venturini, L. (Eds.). (2012). Economics of innovation: the case of food industry. Springer Science & Business Media.
Grunert, K. G., & Traill, B. (2012). Products and process innovation in the food industry. Springer Science & Business Media.
Kim, N., & Lee, M. (2012). Other customers in a service encounter: examining the effect in a restaurant setting. Journal of Services Marketing, 26(1), 27-40.
Kirezieva, K., Jacxsens, L., Uyttendaele, M., Van Boekel, M. A., & Luning, P. A. (2013). Assessment of food safety management systems in the global fresh produce chain. Food research international, 52(1), 230-242.
Morris, M. H., Shirokova, G., & Shatalov, A. (2013). The business model and firm performance: The case of Russian food service ventures. Journal of Small Business Management, 51(1), 46-65.
Ryu, K., Lee, H. R., & Gon Kim, W. (2012). The influence of the quality of the physical environment, food, and service on restaurant image, customer perceived value, customer satisfaction, and behavioral intentions. International Journal of Contemporary Hospitality Management, 24(2), 200-223.
Yeon Kim, H., & Chung, J. E. (2011). Consumer purchase intention for organic personal care products. Journal of consumer Marketing, 28(1), 40-47.
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