LEVEL 7 DIPLOMA IN CATERING AND RESTAURANT MANAGEMENT

Unit title: Strategic Management in Catering and Restaurants

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Date: 15.12.2014

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Table of Contents

Introduction..........................................................................................................................................3
Creating strategic options.....................................................................................................................4
Cost Leadership....................................................................................................................................5
Differentiation......................................................................................................................................5
Focus ...................................................................................................................................................6
Risks of various strategic options .......................................................................................................7
Alternative solutions for strategic decision making ............................................................................8
Penetrating the market .........................................................................................................................8
Developing the product .......................................................................................................................9
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Development of a market ....................................................................................................................9

Diversification .....................................................................................................................................9
Doing nothing ....................................................................................................................................10
Withdrawal ........................................................................................................................................10
Strategy implementation and alternative ways .................................................................................10
About Benugo ...................................................................................................................................11
How did Benugos Business and Industry (B&I) start? ....................................................................12
What is the alternative? .....................................................................................................................12
PESTAL ............................................................................................................................................13
SWOT analysis ..................................................................................................................................15
References..........................................................................................................................................18

Introduction:

Hoffman with Samples, in their 2013 work, defined strategy as the direction as well as a scope of a
business organisation aimed at gaining sustainable commercial advantage in the long term.
According to Thamhan (2014), based on availability of various resources, a business company
decides on the set of available strategies, so that the chosen strategy will reinforce competitive
advantage and subsequently a superior performance. Every year thousands of business starts but
unfortunately many gets shattered due to lack of proper strategic plan for business. In this
assignment there is a described strategic approach available for Benugo Company, and different
strategic decisions, risks of those decisions, and benefits.

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The external data is collected from the outside of the organization such as from the internet,
primary survey among the residents and marketplaces around to gauge the public enthusiasm about
a new good restaurant opening up. This is of immense importance as it would help to gauge the
public notion and would provide with valuable information which would assist in formulating a
business strategy for the benefit of the restaurant. Like the suggestion that was provided by a food
enthusiast that they would like to try different cuisines with a rich variety in wine. The suggestion
of developing a mobile application for the ease of the customers to book seats and pre order their
menu was also something that came from this exercise and this was later incorporated as one of the
business (BOONE, 2012).
Economy is one of the most critical factors that affect the success of the restaurant business. From
the internet, the communication strategies of the restaurant have been developed (Burke and
Cooper, 2009). Like the partnership with various social media networking sites like that of Face
Book, Twitter, Instagram etc.
In the restaurants website the contact information is present so the customers can order the food
and services via internet. The restaurant uses the internet for the advertisement of various products
in the market because it is very essential for the restaurant to make advertisement of the desired
product in the market (Dalton and Lawrence, 1970). Therefore, the customers are attracteds through
the advertisement and the restaurant is able to sale sell the food product extensively. SMART goals
objectives can be used for this business to summarize and evaluate the performance expectations.
Specific (S): The restaurant should set its specific target such as to attract more customers by severe
market survey and meet their expectations by giving best quality of food and service.
Measurement (M): The restaurant should measure its basic sales of the business which it can
acquire in the present market conditions.
Attainable (A): The restaurant should set its goals and target as per their abilities and improve their
skills according to meet the target objective.
Realistic (R): The restaurant should set realistic targets which it has ability to achieve.
Timely (T): The target and goals of the restaurant should be met within a particular time frame
(Dymarsky, 2011).

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Creating strategic options

Strategic options are generated in three ways:
I. basis of the competitive advantage (Porter method).
II. To exploration of alternative strategies.
III. Alternative methods are used for the achievement of strategic direction.
Methodical approach was proposed by Harry Johnson and Kevan Scholes, in described in Table 1.
Technique
Foundation

for

Direction

of

the

implementation

competitive advantage

strategy

strategy

Generic strategies

Available alternatives

Alternatives

Leadership

on

cost

Strategies

for

development

Differentiation

Focus on Cost

Focus

Penetration

of

Development of
the product

Differentiation

of

Development
within company

the market
on

for

Acquisition

Development
with

other

company

Development of
the market
Diversifying

Doing nothing

Withdrawal

From: (Augusto Felcio, 2012).

The foundation of competitive advantage introduced by Michael Porter1
Generic strategies are focus, differentiation, and cost leadership: The focus strategy has two
variants. Focus on cost and on differentiation focus. In described in Table 2
Competitive advantages
Differentiation

1) Leadership on cost

2) Differentiation

target

Wide

Less cost

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Small target

3.1) Focus on Cost

3.2) Focus on Differentiation

From: Porter. Competitive Advantage, (1980)

Cost Leadership
Cost Leadership is very important for strategy. As you can see from the Table 2 cost is implied in
main portfolios and matrix models. Leadership on cost strategy targets to reduce cost ingredient of
companies at all levels of value chain. Cost reduction will allow company to increased returns on
investment.
At the beginning of a product life cycle, reductions of costs based on experience are very important
for leadership on cost. In particular long term plan of leadership on cost should include volume.
This means that the products need to be a solution to a wide market. Products usually are made
similar or uniform to bring down the price and are standardized to gain a wide market appeal. If
scale of economy is important then share of market is also very important. Within the scope of
share-growth matrix, leadership on cost is a good option for cash cows and star subdivisions.
If there are very high fixed costs in the industry then capacity must be maximized. One example is
mobile telecoms operator providing services to the whole country. Obviously, beefing up the
customer number is of overriding significance to ensure decreased average costs and increased
utilization.
Another example is the cheap-cost flight carriers which utilize idle management methods with the
aim of full capacity and the small turnaround time and as a result these carriers are significantly
more profitable in comparison to established full scale service air companies.
Scalability of the business is relevant for the dominant companies in the industry. As such, any
significant company will slowly approach its full capacity volume and famous law of diminishing
returns will kick in. As a result difference in costs between major industry players is very small.
Differentiation
If some unique attribute of a good cannot be easily copied or replicated, then there is a welcome
space for differentiation. Branding is one way to achieve differentiation. From my observation,
smaller firms are proud to be quality good producers or suppliers to differentiate them from bigger
producers. Obviously, costs required for making differentiated good must be much lower than what

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customers are prepared to pay for the premium of having differentiated well. Differentiation is an
alternative for follower companies rather than leader companies.
Focus
What is a niche business? When a firm decides to understand better requirements of customers of a
particular market segment, focuses on that field and obtains competitive advantage in particular this
niche. Obviously, customers are the special group of customers and the firm is best supplier on that
niche.
As we can see a firm or a company in any industry can achieve a competitive advantage because of
leadership on cost or because of being different.
General

Focus

Differentiation Leadership on
cost

strategy

Needed resources with skills

Organisational requirements
into

Strict control of costs

capital as well as access to

Reports

Significant

investment

financial capital

on

detailed

costs,

expenses, and frequent reports

Unique skills for engineering

Stimulus to achieve set rigid

processes
Outstanding

quantitative targets
Robust team working

marketing

and

capabilities

cooperation between marketing

Engineering of a brand new

team, product development team,

R and D.
products
Combination or mixture of the above Union of the above mentioned methods
mentioned methods focused at a specific and policies targeted at a specific project

strategic aim.
From: Porter. Competitive Advantage, (1980) Table 3

or target

The Michael Porters business theory will act as an effective tool for this restaurant to enable the
management to meet its desired objectives. An organizational audit is essential to maintain the
controlling system and relative changes in the management to enhance the competitive edge of the
business (Talbot and Brown, 2013).
Risks of various strategic options
Successful strategies are sustainable, and if competitors can steal and copy the product then profits
will decline, therefore business managers have a duty to carefully monitor all developments and
changes on the market and of competitors that potentially can harm given business.
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As an example, a volume oriented company can receive a threat if a new technological change
occurs and an entrant firm decides to enter market, challenging the dominant position of an
incumbent company. Incumbent company can either heavily spend money on technological catchup or simply buy the entrant company and eliminate the threat. For the entrant company being
acquired by the larger company provides financial reward and prevents from financial difficulties,
usually guaranteed during expansion period.
Risks associated with differentiation are that customers may lose the perception of difference or
start caring less and less about differences, thus competitive advantage will be lost.
Another risk associated with differentiation is that niche companies become too specialized and
rigid when it comes to adapting to recent changes in customer tastes or changes in competition.
Additional risk is that imitation product or service may have a corrosive effect to niche business,
and if difference between niche market and main market disappears then advantage is lost.
A development plan can be made by establishing a control team that will have the responsibility to
monitor the use of various resources used by the restaurant and to build a proper business plan that
will provide the management of Benugo to meet the financial requirement and introduce a strategic
change. Hence, it will help to evaluate the financial factor of forecasting and enable the
management of Benugo to mitigate the risk in the business (Myrna, 2012).

Risk

Probability

Impact

Priority

Actions

Fire

Highly

Fatal to all

Highest

Regular Fire Assessments and compliance

unlikely

with law including Fire Drills and Fire

0.1%

Safety Policy as well Fire fighting

equipment updated

Food quality

Highly unlikely Affect

40 50

the Highest

business

resources and maintain food

hygiene.

%
Competition
7

50 60 %

To use proper quality of food

Affect

the Highest

Regular

market

survey

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business
Technology

20 30 %

Affect

especially on competitors.
the Highest

business

Adapt

with

the

latest

technologies in the market.

Alternative solutions for strategic decision making.

So what are the alternatives? They are to develop and grow the business, do nothing or pack up and
leave the market. Starting from business plan and trying to concentrate available resources star
business units, instead of malfunctioning business units.
Development and its types
Four possible ways are:
Penetrating the market by trying to selling more products to the existing market.
Developing the product by selling newly developed products to existing clients.
Developing new markets by trying to find fresh markets for companys goods.
With the above mentioned four ways topic of leverage is paramount, especially leverage of
resources and major competencies.

Penetrating the market

Considered as a very easy strategy is one when existing company tries its best to upsell more and
more existing goods to existing customers. Since both products and customers are already
established and hence they pull their weights on leveraging current advantages of a company and its
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available sources. If a specific market is growing then existing competitors are jointly expanding
the supplied goods via penetrating given market. Whenever there are significant fixed nature costs
and relatively smaller marginal costs, for example in hospitality industry, hotel, utilities, and rail
businesses. However, the saturated market does not provide profitable opportunity to penetrate the
markets as the market has been fully saturated and stubborn penetration may instigate market war
between market players, a war that could cost a lot for a miniscule gain in the terms of market
share. There is one channel in the saturated market and that is trying to retain existing clients,
customers for longer by inducing them to purchase an advanced version of the product, such as
instead of bottle of French wine of year 2010 convincing them to purchase of year 2000. This
technique works in saturated markets.
A strategic model should be implemented to penetrate in the market; this model is based on three
stages which includes analysis of external and internal environment of the restaurant, then plan
strategies according to it and finally incorporate the plan to expand the business in the market.
Before, planning a strategic model a brief idea is required about the business section of this report.

ABOUT BENUGO
Established 1998
Merger with WSH 2007
Yearly turnover 56.50 million GBP (reported for 2012) the major contracts Westminster Abbey,
BFI Southbank, Natural History Museum, Victoria & Albert Museum, National Museums Scotland
Number of commercial sites 6
Number of contracted sites 49
Benugo started 16 years ago as a one piece of busy street caf deli of Clerkenwell and it was
founded by brothers Ben and Hugo Warners. And Benugo as evolved into a vast array of
restaurants, built in concessions at industry, commercial sites, in business public spaces with a
prosperous banqueting and events catering division. Right now, Benugo is part of WSH and Ben
Warner is on WSH board.
Benugo started as an alternative to plastic wrapped chilled food supplier, by focusing on the gap in
the market for freshly made food with origins which are quite similar to advanced New York caf
deli style. Right now Benugo has numerous busy street branches as well as branches situated at the
most famous locations in London: Victoria and Albert Hall, Natural History, British Museums,
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Ashmolean and Science Museums; BFI, and in Scotland there are 7 castles with Benugo branches
onsite.
Business&Industry (B&I) foodservice opportunity kicked in in 2000 when Paul Gardner of once
famous Lehman Bank approached Ben Warner enquiring on possibility to have onsite branch at
Lehman. Obviously, Benugos management visited Lehman next day and in 3 weeks a jazzy and
successful branch was opened at Lehman. This was Benugos the first ever onsite branch in
addition to 2 high street branches.

How did Business and Industry (B&I) start?

In 2000, Benugo opened two high street shops and management did not know at that time, Business
and Industry (B&I) market was there. Then he worked for Lehman, Paul Gardner, came to one of
Benugo stores, and said he wanted something similar in their office. Benugo presented our vision
came the next day and three weeks later we were there.

Benugo managed to get from the first day. Benugo worked on providing exactly what Lehman staff
wanted to eat, Benugo achieved tremendous result at Lerhmans first onsite branch

The B&I site was not without problems: a lot of people instantly told Benugo how to run the
business Catering Contract with filling shelves with 10 different brands of 20 different soft drinks,
candies, to sell 30 varieties just to please everyone instead of majority of customers.

Developing the product

The main reasoning behind developing the new product is to introduce new product to the existing
customer base and the same market. Development of new product is not enhancement of old or
existing product, and therefore result must be brand new product aimed at gaining new sales and
profits. Since existing customer base and network of distribution may be successfully used for the
brand new product, value chain can be potentially leveraged, especially in the areas of
manufacturing and storage. At the time when existing product has reached the maturity stage of life
cycle and there is little scope for further growth, development of a brand new product will ensure
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continuation of growth as well as generating of cash and profits will contribute to the possible
significant cost reduction of existing manufactured goods and products, thus guaranteeing and
reinforcing leadership on cost.
Development of a market
A company will seek opportunity to gain entrance to new markets, locally or internationally, to the
new customers and new companies. In general, existing products will have a specific marketing
mix to ensure expected requirements of a new market. For example, product can be slightly
adjusted, altered and submitted to the standardization authorities of a particular country and
instruction manuals could be interpreted into the language of the country where the good is being
exported. Adjusted product obviously should appeal to new consumers. In addition, another method
to develop a market is to expand or stretch the reach by for example organising delivery to remote
areas, or advertising the product within popular megastores.
Diversification
Unfortunately the weakest way to boost leverage of existing product manufacturing, sources, and
advantages of a particular company is to develop a brand new product for a fresh market or a
customer (Hashai and Delios, 2012). This process is diversification and it could be of two types:
unrelated kind or related kind. Related kind is when a business company decides to acquire new
resources as well as competencies and at the same time does not deviate from the core business, for
example a famous restaurant decides to expand by introducing the its branded frozen foods or
signature meals in local supermarkets. Obviously restaurant business is very different from frozen
food business, but brand of the company with some of its famous dishes could link these two
businesses.
Unrelated business is when a company decides to invest into several different firms of various
industries and there is little could be said about reason for unrelated diversification. One good point
is when various businesses come from various economic cycles and could counteract losses in one
industry by profits from the other industry. In the past Ericson company was strongly hit during
2000-01 when telecoms industry experienced downturn, however Siemens, quite well known
telecoms company, due to diversified interests in transportation, construction, lighting, automotive
industries did not suffer greatly in that period.
Doing nothing

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The time when company does not develop any new strategy is known as doing nothing. Obviously,
company will start losing market share and thus it is not a widely used approach. One exception is
when a there is a dominant firm or market player in the matured, stable, non-declining market, so
that dominant firm can approximately do nothing or stay still.
Withdrawal
When business has portfolio of companies all performing differently, then loss making business
units must be subjected to withdrawal consideration. In other words, being ruthless is necessary to
save the rest of the business and avoid drainage of sources. The particular characteristic of this
process is that various stakeholders have various interests vested into the company, which is subject
to withdrawal. Obviously, political as well as trade union strike repercussions, exit difficulties and
implications may inflict significant damage to the image of the parent business. But, in the Unites
States, any business or company heading towards bankruptcy will be scrutinized under Chapter
Eleven in order to save remaining healthy and profitable parts of the business.
In order to develop a business strategy, Benugo need to establish a system that would enable the
business to process and activities to be aligned with the aim, goals and targets of the business, apart
from that also ensure strict monitoring and control based on key performance indicators and other
standards and regular evaluation of the implemented strategic development.
Strategy implementation and alternative ways
Augusto Felcio (2012) detected the following alternative routes to realize the chosen strategy:
acquisition, development within the company, development with another company. These
academics also explain what the subsequent implications are in terms if speed of adjustment,
exposure to risk and relevant costs. Development within an organizaion guarantees that, the
company is in full control and gains near perfect knowledge of the product being developed and as
well as the relevant market. However, internal development may be a slow process. For example: .
Mercedes has developed a well known and respected internal Research and Development team, and
tests are being the F1 races, as a result Mercedes has turned into leader in auto industry and auto
market.
Acquisitions bring specific advantages in terms of speed of acquisition if new entrants with new
potential technology and expertise, so the incumbent company gains near instant access to latest
technology and advancement. Also, during the time when market experiences stabilized growth

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market players or dominant companies tend to consolidate therefore mergers and acquisitions take
place and subsequently alter the market share of companies.
Development with other companies brings its own advantages and results. From observation,
exporting companies form joint ventures, franchise companies to speed up the process. Gains and
risks are obviously divided between parties. Sometimes, I certain countries foreign investments are
not authorized and solution in these circumstances is to involve local agents who will represent the
company in that country and develop the exporting business.
Apart from implementing various strategies of business, it is required to determine factors which
would affect the implementation of the strategies such as financial factor, skills and abilities of the
staffs and etc. The financial factor is the vital part which contributes to the strategy implementation.
Thus, it is important to monitor the financial investment outcomes for any strategy implementation
process. The skills and abilities of the staff is also directly proportional to the strategy implemented,
therefore, it is important to assess the abilities and nature of the staff before implementing any
strategies (David, 2015).

What is the alternative?

Benugos policy has been and whether a client wants it or not, sort of takes it or leave. Benugo
has a strong brand and they do not compromise and customers will not find product of other brands
such as Mars on the shelves of Benugo. Aim is only to sell very high quality products. Although
Benugo operates its branches onsite of different businesses, similar to being in somebodys home,
the most important criteria for successful onsite branch is to be more selective about selling
products and compromise is essential, and Benugo stands for what it thinks is right from its own
commercial experience and brand promise.
In the past, Benugo made some mistakes especially with choosing location, for example Soho
Branch did not work out and instead of keeping loosing the money like drainage, and the better
solution is to cut off the unsuccessful branch. Benugo had no choice but to write off 400.000 GBP
with Soho Branch. Benugo learned something from that mistake. Now, before opening a new
branch, if for example they receive 12 new projects Benugo will only open 2. Benugos
commitment to success, especially not related to business expansion, but Benugo makes sure
everything makes a difference for Benugo brand and its customers. Management has not ambition
to have Benugo shop in every corner in London.

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In 2007 Benugo merged with Baxterstorey and both companies belong to WSH. However, Benugo
remains distinctly independent with its own HR, its own head office at Clerkenwell, and at the same
time with increased back up infrastructure there is a great opportunity to expand. The merger with
Baxterstorey brought advantage for Benugo so that Benugo focuses on coffee bars and Baxterstorey
concentrates on personnel development. And Benugo gained access to previously unavailable
markets.
BaxterStorey, WSH's corporate caterer brand and the largest within its estate.
The business gained contracts with a number of corporates, such as RBS Group, British American
Tobacco and Scottish Power and is currently feeding 20,000 of the worlds media at the London
2012 Olympic and Paralympics Games.
PESTEL
Sociological issues:
In this particular factor the two main sub factors are ageing population and another is change in
taste and demands. The customers who are older in age have different tastes and preferences in
comparison to the younger generations and hence the menu has to be designed accordingly. For this
very same reason skilled workers are highly needed who can carefully understand the requirements
and suggest good options to a family who have both kinds of members. Due to the globalization
and the flexible customer demands more value, so it results in increasing niche market, which must
be carefully handled (Minkler, 2012).
Technological issues:
In this section the three types of factors such as information technologies, new kitchen technology
and internet are plays an important role in the restaurant business. The information technology
helps to enhance the resource management and provides flexible delivery to the customers.
Outsourcing and simplifications of kitchen operations helps to provide more reliable service to the
customers because the food quality is one of the most important factors that help to retain the
customer base. Internet is playing a critical role in enhancing the shopping behaviour of the
customers and it also increases the competition in the market (Morgan, 2004). Therefore, the
restaurants should implement innovative marketing strategies to maintain the customer base.
Economic issues:

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Economy is one of the vital issues that indicate on the business prospective. Although the low cost
menu items may easily attract the customers and it ultimately plays little role to create long term
customer base. So after careful scrutiny the restaurant,s prices have been kept at par with other
restaurants of the brand to build a reputation to serve on long term basis. A balance of cost is
maintained and depending upon the operational cost the price is done accordingly to minimise the
chances of loss. The restaurant paid attention towards the pricing system and after including the
making cost and some amount of profit the general cost of products are prepared. Due to the
globalization the consumer market provides threat and opportunities to the restaurant sector. It is
imperative to manage the operational costs of a restaurant, since there is a constant recurring
expense each month (Rittinghouse and Ransome, 2005) .The food prices also vary and in case of
inflation it becomes difficult for the restaurant to manage the escalating costs and a point comes
when there is no option but to increase the prices of the menu.
Environmental issues:
Environmental issue consists of environmental awareness that deals with pollution and waste
management those results in more environmentally resource utilization. It also increases the costs
that can affect the business. One of major things that a restaurant business has to take care of is to
get the necessary permissions and licenses pertaining to opening of restaurant, serving food, music,
beverages and other miscellaneous activities (Snedaker, 2007).
A thorough investigation on the customers taste and preference today ensures that they support the
environment saving initiatives of an organisation. It has been studied that using recycled products
or conducting CSR activities receive overwhelming support. Though this activity also encourages
brand building and fulfils business expectation, it affects the mind and psychology of the brand user
and he not only trusts the brand but also becomes a loyal customer. Such initiative is very helpful
for the overall restaurant and catering business development.
Political issues:
There are various legislations present such as improvement in working conditions, consumer
protection and product information that increases the overall cost of the business. To maintain those
components the restaurants are highly affected and the improvement helps to encourage the overall
business and it is one of the primary requirements to develop the business. EU enlargement is
another factor that increases the demands and competition in the market. There are various social
dialogues such as better industrial relation and working condition with innovative skill levels are

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one of the most important issue that must be maintain by the restaurant to run the business
smoothly and it provides potential to reduce the labour turnover (Sterling, 2012).
Legal issues:
The owner before starting a restaurant must properly manage the legal issues which will decrease
the additional risks such as expenses, legal actions or fines. Zoning regulations must be done to
ensure the type of location of the restaurant. The business structure affects the restaurants liability
and also the financial responsibilities such as debt and taxes. The restaurant needs licensing of food
that served in it from the respective controlling jurisdiction.
SWOT analysis
SWOT analysis will look into the relevant factors o Benugos strategic paths including marketing
procedure.
Interpretation of SWOT is required to scrutinize a companys external, vinternal surroundings. This
is to be the step number one for a business owner to enable to focus on essential issues. SWOT is
acronym for strengths, weaknesses, opportunities, and treats.
Strength
1. Benugo is a growing and recognised company.
2. Benugo has a beverages license which is being used in restaurant to ensure profits.
3. Benugo has set standards provided by its senior management and a parent company therefore
ensuring growth of the company.
4. Benugo has conference and banqueting businesses and services at its disposal.
5. Benugos prices are Reasonable in comparison with its competitors.
6. Benugo always tries to hire and train professional staff with diverse skills.
7. Benugo is an emerged name in current hospitality sector.
Weaknesses
1. Systems/Processes Regulation could be a weak link if not running properly.
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2. Changes in legislation with price competition

3. Absence of market research (todays market trinds).
4. Benugo has only one orientation, maybe to expand operations at foreign markets or to diversify?
5. Infamously aggressive restaurant / deli / coffee shop industry.
6. Strong need for ongoing marketing analysis at the cost of diverted sources.
7. What advantages the other hospitality players have.
8. Relative price and quality comparison within hospitality industry.
Opportunities
1. Chance for takeover when any hospitality firms insolvent.
2. Following the present recession trend for a nice opportunity for Benugo is to try reducing the
prices in their restaurant section.
3. Pre-Christmas intensity in domestic tourism or travel is a great opportunity to boost profitability,
with provided trained staff and other sources.
4. Catching the opportunity to organise exhibition, consultation meeting, and conferencing and
banqueting at Benugo branches, and with resulting commercial growth, widening business
relationships and opportunity to bring new business sales.
5. Seizing the opportunity of local events.
6. Promoting team collaboration among Benugo divisions to achieve long term aims.
Threats
1. London hospitality sector is on its own a vicious threat for Benugo.
2. Ever-changing legislation, smoking ban in public vicinity are threats for Benugo.
3. Globalising movement brings threat of identical goods, foods, products and unwanted
competitor.
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4. Competitors introduce fresh facilities for patrons and clients.

5. Savvy customers
6. Various political changes
7. Current economic recession in Eurozone.
As per the PESTEL and SWOT analysis, it can be considered that business strategy plays an
important part in every business field. Strategic decisions can be classified into three parts: to
decide the competitive advantage, find out different strategic directions and the ways to achieve the
strategic directions. After discussing various advantages and disadvantages, it is argued that all
strategic directions do not meet for Benugo, therefore, consideration of hospitality market
opportunities and restrictions, specific alternatives should be determined. However, the benefits of
Benugo are mainly its location, availability of variety of food products and long term commitment
towards their strategic management plan.

CiomunciationCommunication Plan
Stakeholder

Message

Marketing Dept

New
for

Audience

Publicity customers
latest

Channel

Frequency/Date

Email, post

One week distribution

20-27 Mar

product

In order to develop a comprehensive communication plan for Benugo, every branch managers
should coordinate to provide better business plan. A strong platform of communication must be
created by the managers of the organization that enables them to discuss matters of business with
their employees and subordinate staffs which will build a positive relationship among them. To
work in a synchronized manner, the manager of Benugo must implement strategies that would send
messages to the staffs of different branches and help the mission of the business. Apart from
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enhancing internal business, the manager should also expand external communication in order to
attract more customers for the restaurant (Tusin, 2006).

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