BUSINESS STRATEGY

ASSIGNMENT # 3

SUBMITTED TO:
PROF. ABDUL AZIZ

SUBMITTED BY:
RIFFAH HAMID 0056
FASEEHA USMAN 0078
AIMAN RAFIQUE 0058
SYED USAMA ALI SHAH 0084
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Vision statement:
Salt n pepper strives to satisfy all the customers by serving the best quality food in a welcoming
environment.

Mission statement:
We intend to make Salt n pepper one of the best restaurants in Pakistan by providing our local
and international customers with high quality food and beverages and exemplary service. We
aim to formulate an ethical atmosphere and operate in a manner that does not harm the society in
any way. We also intend to vigilantly provide our employees with the appropriate task and
reward needs in order to enhance their performance. We make use of advanced technology
which makes us unique and facilitates our customer which ultimately results in high profitability.

Objectives:
 Serving Quality and Affordable Foods.
 To extend our target market
 To attain multiple Competitive advantages
 Improve employee performance through training and development plans.

Internal Audit
Management
Planning:
Salt n pepper shares its ideas through its well-developed vision and mission statement. At Salt n
Pepper every employee knows where they are heading towards and what their individual
contribution is. Planning at Salt n Pepper is in accordance with the changes in the external and
internal environment. Strategies are modified with time to work in accordance with the current
requirements.
Organizing:
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We focus on coordination and the flow of information within the organization.

Empowerment is focused upon rather than control. Management encourages the practice of
working and assisting each other to deliver the best to their customers by coping up with external
challenges and representing a collaborative responsible culture. The formal structure at Salt n
Pepper divides the organization in the departments and every individual knows his tasks well and
knows whom he has to report to.
Leading:
The top management ensures that everything is working as planned by obtaining weekly and
monthly reports about the level of task achievement.
Controlling:
At Salt n Pepper, the workers are motivated and policies are clear. The line manager is in charge
of keeping the employees working according to the standards. The restaurant follows the set
Standard. And it is ensured that the actual outcomes in terms of revenues generate and profit
earned are consistent with the expected outcomes.

Marketing:
Customer analysis:
At Salt n pepper, we understand the needs of our actual and potential customer and then try to
meet their expectations by conducting customer surveys. When our customer is done with the
dining experience, we provide him with a small questionnaire to facilitate our findings.
Selling Products and services:
We teach our servers how to recommend food especially when there is a new addition in our
menu. We make the most profitable menu items stand out at the top of the list and create a list of
daily specials. We also emphasize on giving discounts in order to enhance our sales.
Product and Service Planning:
The ingredients are acquired from reputable suppliers and the meals are tested before being
processed and delivered to the customers in the form of meals. We emphasize on neat and
attractive presentation of our food and also provide home deliveries with very careful packaging
so that our customers are satisfied.
Pricing
The prices are consistent with the value being delivered to the customers.
Distribution:
Distribution of products to customers is done by our delivery men. Specific vehicles including
bikes and vans are arranged for this purpose in accordance with the quantity and type of ordered
meals.
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Marketing Research:
We conduct market research every year to make sure our restaurant is still giving our customers
what they want. Marketing research is mainly done by surveys that include close-ended
questions. A likert scale is preferably used. These surveys are done at places where our potential
customers most likely are including certain places of Kohinoor.

Finance and Accounting:

Investment Decision:
Money will be invested in marketing, billboard advertising will be done and local cable TV
advertising will be focused upon. Money will also be utilized for more advanced and high-tech
machinery and equipment.
The financial position of firm is good but not as strong as it should have been, however the firm
is in the position of raising short term capital and also has sufficient working capital. The
following measures are adopted to enhance our financial performance:
Budgeting our Expenses
Budgeting the expenses helps us avoid confusion and keep track of expenses.
Maintenance of a Cash Flow Statement
A cash flow statement will tell us you precisely how much amount we have in hand and kind,
how much is coming, and how much is going.
Checking Reports Daily
Checking our reports daily will give us a clear idea of what our daily sales and expenses look
like. That way we can track if our restaurant is performing well enough or not.

Production/Operations:
Process:
We have allocated proper space for receiving, storage, food preparation, cooking, baking,
dishwashing, production aisles, trash storage, employee facilities and an area for a small office
where we can perform daily management duties. Apart from this our restaurant overall has a very
attractive layout made precisely for the ease of customers. Technology includes the utilization of
advanced machinery to make and process food efficiently. Routine maintenance checks on
facility and equipment will be done.
Capacity:
We strive our best to increase our actual output by making use of efficient machinery and skilled
labour such that the capacity utilization is at least 70%
Inventory:
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We have proper storage for our inventory. Relating to our raw material we have proper freezers
and other required electronic machines to keep the food healthy. In terms of equipments and
furniture we try our best to maintain it and replace it if can’t be used.
Workforce:
We make sure that we hire and retain qualified employees and that their pay scales relate clearly
to the job's duties and responsibilities. In addition, we will also find out what other restaurants
are paying their employees so that we can be competitive in the job market, without spending too
much on payroll. We also provide them with the required training programs to enhance their
performance level.
Quality:
Special emphasize is placed upon machinery and equipment used to produce good quality fast
food. Quality of our food is constantly monitored and feedback from customers is obtained on
daily basis to maintain the quality of our food.

External Audit:
Economic Factors:
Economic factors include factors that affect consumer purchasing power and spending patterns.
Differences in income levels is an important consideration.. Salt n Pepper understands that in
countries with a lower stage of economic development, it is necessary to set a lower price. The
limited purchasing power in a country like Pakistan, combined with low level of literacy, poses
special problems for marketers on promotion of this restaurant.

Social/Socio cultural Factors Influencing Salt n’ Pepper

 Attitude towards product quality
 Busy lifestyles (opportunity)
 Healthy lifestyle trend (threat & opportunity)
 Furthermore, the healthy lifestyles trend is a threat against Salt n Pepper as people then prefer to
go for homemade food rather than fast food.. The company has the opportunity to increase the
healthfulness of its menu items.

Technological Factors:
The company needs to address the following technological external factors:
 Increasing business automation (opportunity)
 Increasing sales through mobile devices (opportunity)
Salt n Pepper can apply more automation to maximize productivity, based on the external factor
of increasing business automation. Furthermore, the business can improve its mobile services to
reach more consumers by launching its own mobile app. Based on the technological trend of
increasing sales through mobile devices,
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Legal Forces:
Political factors include laws, agencies and groups that influence and limit organizations and
individuals in a given society. Government regulations and restrictions regulate the content of
promotion. The law restricts the advertiser’s freedom, particularly with regard to the advertising
message and visual presentation.

Competitive Forces:
The issue of the competitive environment must be seen as probably one of the most important
issues. By gathering continuous data about competitors, such as the strengths and weaknesses,
their objectives, strategy, tactics and the sort of marketing activity/budget, Salt n Pepper can
decide its own position in relative terms and be prepared for what challenges are facing them in
terms of competitor attacks
Threat of Rivalry/Competitors:
Salt n Pepper faces a lot of threat from existing competitors including Chiniot Palace, Silver
spoon, Café Geneva, Baba Tikka etc. Silver spoon especially has hold of a very strong market
position.
Threat of new/potential entrants:
There are not much barriers to entry in this industry therefore, salt n pepper has a considerable
threat from the new entrants but by means of implementation of certain strategies can counter
this threat as it is located at a very favourable location. On the other hand, new entrants may find
that a high cost of investment is required in securing plant and machinery.
Threat of Substitutes:
This fact cannot be ignored that Salt n pepper faces threats from substitute products like
domestic kebab and fast food houses
Bargaining Power of Buyers:
This is an area of major consideration for Salt n Pepper as switching cost is low and the
possibility of switching to another brand (restaurant) in case of dissatisfaction is relatively low.
Therefore the company should try its best to keep the customers satisfied.
Bargaining Power of Suppliers:
A group of suppliers can threaten Salt n Pepper to reduce the quality of products or raise prices,
which makes it hard for the restaurants to make up for cost increases by raising their own prices.
So, maintain good terms with suppliers is also an important thing so that they cannot threat.
Critical Scenario:
Salt n Pepper in general is currently in a very critical state where it needs to implement certain
strategies in order to attain a strong position in the market and compete with its competitors
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Government regulations:
Salt n pepper formulates all its decisions in accordance with the rules and regulations defined by
the Punjab Food Authority Act 2011.

SWOT MATRIX OF SALT N PEPPER

Strengths Weaknesses

1. Location 1. Strong existing

2. Attractive restaurant competitors
design/layout 2. High employee turnover
3. Reasonable pricing 3. No dedicated parking
4. Variety of dishes 4. Little marketing efforts
5. Good food quality 5. Single branch
6. Good customer service

Opportunities SO WO

1. Located in a busy area (S5,O3)We can attract new (W2,O4)By training of staff
frequently visited by customers through special by high quality employees,
people offers because we have good we can minimize employee
2. Increased trend of going quality food. turnover.
to restaurants (S1,O1) Having good (W4,O5) Hiring online
3. Attract new customers location helps us to attract influencers will enable us
through special offers more customers because its gain more publicity and
4. Use high quality located in a busy area that eventually customers.
employees to train other frequently visited by people. (W1,O1,O3) Giving special
staff (S3,O1)We have reasonable discounts can facilitate in
5. Develop relationship with prices so many people who obtaining more customers
online “influencers” go for shopping nearby will than rivals.
prefer salt n pepper restaurant
for food.

Threats ST WT

1. Strong Competitors (S4, S5,T1) By providing (W1,T1) if we minimize

2. Changing trends good quality food and variety competition by provision of
3. Consumers becoming of dishes, we can overcome customized food, we can
more price sensitive on our threat of strong overcome on the threat of
4. Competitors providing competitors. strong competitors.
more “value addition” (S4,T2) Providing fast food a (W4,T4) Expand the research
5. Declining economic well as continental food can and development function
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conditions enable us minimize our threat and operations innovation

of changing trends.
(S3, T3,T5) Reasonable
pricing increases the ability
of consumers to buy.

External Factor Evaluation Matrix (EFE)

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Key External Factors Weight Rating Weighted Score

Opportunities

1. Located in a busy area frequently visited by people 0.11 3 0.33

2. Increased trend of going to restaurants 0.09 3 0.27

3. Attract new customers through special offers 0.24 2 0.48

4. Use high quality employees to train other staff 0.10 2 0.20

5.Develop relationship with online “influencers” 0.04 1 0.04

Threats

6. Strong competitors 0.13 4 0.68

7. Changing trends 0.03 1 0.03

8.Consumers becoming more price sensitive 0.14 3 0.42

9. Declining economic conditions 0.12 3 0.36

Total 1.00 – 2.77

Internal Factor Evaluation Matrix (IFE)

Key Internal Factors Weight Rating Weighted Score

Strengths
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Key Internal Factors Weight Rating Weighted Score

1. Optimal location 0.10 4 0.40

2. Attractive store design/ layout 0.08 3 0.24

3. Good food quality 0.07 3 0.21

4. Reasonable pricing 0.02 3 0.06

5. Variety of dishes 0.06 3 0.18

6. Good customer service 0.08 4 0.32

Weaknesses

7. No dedicated parking 0.10 2 0.20

8. Employee turnover 0.13 1 0.13

9. No significant marketing efforts 0.15 1 0.15

10. High competition 0.17 1 0.17

11. Single branch 0.04 2 0.08

Total 1.00 – 2.14

Competitive Profile Matrix (CPM)

           
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  Salt n’ Pepper Chiniot Palace

Critical Success Weighted Weighted
Weight Rating Rating
Factor Score Score
Marketing  0.1  2 0.20  2 0.20
Brand Reputation  0.1  3 0.30  3 0.30
Location  0.2  4 0.8  4 0.80
Product Quality  0.2  3 0.6  4 0.80
Customer Service  0.08 2  0.16  4 0.32
Customer Loyalty 0.09   2 0.18  4 0.36
Product Range  0.04  4 0.16  4 0.16
TOTAL Score 0   2.4   2.94

SPACE Matrix
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Internal Strategic Position External Strategic position

Financial Position (FP) Stability Position (SP)

Return on Investment 5 Technological Changes -4

Working capital 4 Rate of inflation -5
Net Income 4 Risk involved in business -4
Cash flow 3 Competitive Pressure -5

Average 4 Average -4.5

Competitive Position (CP) Industry Position (IP)

Market share -4 Growth potential 6

Product quality -3 Profit potential 4
Customer loyalty -3 Financial stability 3
Technological know-how -5 Productivity, capacity utilization 6

Average -3.75 Average 4.75

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FP

-7

-6

-5

-4

-3

-2

-1

0
CP IP
-7 -6 -5 -4 -3 -2 -1 0 +1 +2 +3 +4 +5 +6 +7
-1

-2

-3

-4

-5

-6

-7

SP

Salt n pepper will focus on market penetration and product development. In order to penetrate
the market in a more efficient way, a specific amount of budget will be allocated for
advertisement purposes so as to attract a significant amount of customers.
For product development, focus will be placed upon the formulation of customized food
offerings. Customers will be able to customize the menu items in accordance to their need and
requirement. Waiters and chefs will be given the required training in order to deal with the orders
of customization.