Business Strategy for the Food & Hospitality Industries Andrew Boer

Analytical Tools Workshop Covered:Covered: –Market / customer analysis –Competitive analysis –Financial analysis –Portfolio analysis –Resource analysis –Operational analysis –Strategic group analysis etc……..

Analytical Tools Workshop Tools are often ineffective when used in isolation / individuallyTools are often ineffective when used in isolation / individually Tools do not always need to be 100% accurate (higher % the better, but no need to ensure 100%)Tools do not always need to be 100% accurate (higher % the better, but no need to ensure 100%) Tools can be interpreted in different ways by different peopleTools can be interpreted in different ways by different people

Analytical Tools Workshop Application of tools also varies, even given the same criteria…hence no such thing as a ‘right’ answerApplication of tools also varies, even given the same criteria…hence no such thing as a ‘right’ answer Complexity of tools and texts : often better to utilise simple solutionsComplexity of tools and texts : often better to utilise simple solutions Tools of analysis not only there to develop insight and analysis but also as tools of communicationTools of analysis not only there to develop insight and analysis but also as tools of communication

Analysis of the Business Environment The Remote EnvironmentThe Remote Environment –those issues which may affect the operating environment but which the business cannot significantly influence The Operating EnvironmentThe Operating Environment –the environment and factors which most immediately concern the business (ie those issues which have impact on the business, its markets and direct competitors)

Analysis of the Business Environment PEST / PESTE analysisPEST / PESTE analysis Critique of PEST / PESTECritique of PEST / PESTE –Limited in scope & parameters due to the recognition of an increasingly diverse environment and the increased likelihood of environmental issues impinging on the organisation (e.g IT ; Globalisation etc)

Examples of environmental influences : DEEPLIST DemographicsEconomic EcologicalPolitical LegalInformation Socio cultural Technological The Enterprise

Analysis of the Business Environment DEEPLIST CritiqueDEEPLIST Critique –Perspective dependent on the ‘timeframes’ in which the organisation is working. –‘Miscategorisation’ of interrelated factors which could be included under more than one heading –May only be indicative of ‘effects’ not ‘causes’ –Not an exhausive / finite listing of categories and may lead to focus on wrong issues –Only as good as the people compiling it ! –Simplistic ? Too detailed ?

DEEPLIST Analysis DemographicDemographic –Characteristics of human populations EconomicEconomic –Structural shifts in economies as well as the nature of economic activity (GDP; taxation; inflation; exchange rates; consumption levels etc) EcologicalEcological –Consequences of environmental change

DEEPLIST Analysis PoliticalPolitical –Policies of governments regarding the infrastructure and trade environment LegalLegal –Policies regarding the legislative infrastructure and environment InformationalInformational –Nature and availability of new sources and types of information

DEEPLIST Analysis Social / Sociological / SocioculturalSocial / Sociological / Sociocultural –Characteristics reflecting lifestyles and social expectations and aspirations TechnologicalTechnological –Impact of technological change on the production process, the customer or the nature of the products or services

Predictive Models Need to consider the dynamics and turbulence of the environment to put predictive models into context.Need to consider the dynamics and turbulence of the environment to put predictive models into context. ChangeabilityChangeability –Degree to which the market is likely to change PredicatbilityPredicatbility –Degree with which such changes can be predicted

Environmental Dynamics and Turbulence

Predictive Models If turbulence is low may be possible to predict the future with confidence (Prescriptive strategies?)If turbulence is low may be possible to predict the future with confidence (Prescriptive strategies?) If turbulence is high, the future is more difficult to predict and the organisation needs to be structured to reflect this (Emergent strategies?)If turbulence is high, the future is more difficult to predict and the organisation needs to be structured to reflect this (Emergent strategies?)

Predictive Models In a reflexive environment, the organisation will need to ensure it has flexibility of both resources and systemsIn a reflexive environment, the organisation will need to ensure it has flexibility of both resources and systems In a proactive environment, the organisation can develop an infrastructure to support continuous developmentIn a proactive environment, the organisation can develop an infrastructure to support continuous development BUT..can you really tell the future??BUT..can you really tell the future??