Business Case Study Analysis – Question 7

uestion 7: In the Appendix (Chapter 16 “Appendix: A Sample Business Plan”), you will find the business plan for Frank’s All-American BarBeQue.This plan examined several possible locations for a second restaurant. Frank and Robert considered several factors when evaluating alternative towns as possible locations. Some of these included population size, average income, travel times, and percentage of the population.Based on the data, they selected Darien, Connecticut. Do you agree with the decision? Why or why not?Do you think other factors should have been considered? If yes, what would you recommend and give your reasons (briefly) why? If not, why do think they have used sufficient information to make their decision?Excessive growth is, of course, a good problem to have. However, after stabilizing from the startup process, small businesses more commonly grow steadily before approaching a plateau. This is completely normal and it is often at this point that you’ll need to go back to your business plan and carry out what is known as a SWOT analysis (Links to an external site.). This includes an analysis of a company’s current finances (Module 5), competition, and SWOT: Strengths, Weaknesses, Opportunities, and Threats. Renovation of your product line, rebranding, and seeking investment for expansion are all potential results of this SWOT analysis. Once again, the key here is being data-driven and always staying hungry. The successful small business owner is always looking for the incremental improvements in their business that when added up, make all the difference.SEE ALSO: Benchmarking Your Business Against Industry Standards Using Vertical Analysis (Links to an external site.)At a certain point, the success and growth of your business might leave you considering the option of expansion to a second location. This is not a decision to take lightly, as there is absolutely no guarantee that the strategy that worked in one location will work in another.It’s important that you have a fundamental understanding of what is making your business successful before you decide to expand. Who are your customers and why do they enjoy what you offer? Who are your suppliers and will they be able to deliver to your new location? What are your operating costs and will they be the same in a new location? A lot of small businesses start off in the suburbs of a town before making the move to a city’s business district, only to find that unexpected additional costs are swallowing up their profits.A major task will be to analyse the external environment. This involves tracking conditions in the marketplace that, although largely uncontrollable, affect the way an organization does business. These factors include competition and the economy. Other external factors include cultural and social trends, political and legal regulations, technological changes, and the price and availability of natural resources. Each of these factors is discussed in the texts (hint: PEST Analysis) and other resources provided to you. When firms expand, analysing the environment becomes more complex because they must examine the external environment in each area in which they do business. Regulations, competitors, technological development, and the economy may be different in each county, states and countries and will affect how firms do business.

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