Based on this...You are the marketing expert for a consulting firm hired to deve

Question

Based on this...You are the marketing expert for a consulting firm hired to develop a marketing plan for a new tourist restaurant in Florida based on a magical fantasy-type theme (think Hogwarts from Harry Potter). The restaurant is similar to other themed restaurants, such as Medieval Times or Capone's found in Orlando, FL, and other tourist destinations, and features a themed menu and entertainment.

Environmental Forces List the five environmental forces discussed, and briefly describe each of them Select two that you believe apply to the restaurant scenario. Explain why you believe they apply, and provide an illustrative example

Explanation / Answer

The business environment of any business is prone to various changes that it can seldom control. These environmental changes have profound impact on the overall business performance and its life. Businesses have to adapt to the changes that happen in order to remain relevant in challenging times. The various environmental forces that affect any business are

The most relevant forces that would affect the theme based restaurant business here are

Social changes: For example, if a society as a whole is comprised more of aging population, the overall needs of the people will also change. There may be less number of young people over time and older people. Hence, this would change the preferences of the society as a whole. In case of theme based restaurants, older people may prefer not going to the place owing to their health restrictions or simple no longer in to the theme. This would eventually result in fall of business. But it is only a gradual phenomenon.

Theme based restaurants are most vulnerable to social changes. For example, if there is a new x men movie coming in the near future, the business of a harry potter themed restaurant may go down as the present mood for the society is more in to other themes. The theme would eventually run its course if no more harry potter movies or related books come out in to the market in order to make public feel the theme relevant.

Economic changes: The economic scenario of the country or state would also influence the performance of business. If the country is going through a bad economic phase, people would be more inclined to spending less which would have an impact on any business. The recent subprime crisis in 2008 is an example of how economic crisis can create less business for all. People cut expenditure where ever they think is not necessary hence only spend minimal.

Competition: The competition influence on any business is the most basic of the external forces that affect it. The presence of healthy competition in any industry help in improving quality and reducing costs which finally translates to more customer friendly business. The presence of more competitors will give customers more choice and hence it keeps the businesses on their toes, to not let go of their existing customer base and at the same time, provide more and better products and services to gain more customers from other competitors.

This is also a most important influence in theme based restaurant. There may be many other theme based restaurants that may offer lesser prices or better customer friendly environment. These factors would directly influence the business of the themed restaurant.

Technological changes: Technological advances happen all the time. It is the reason businesses invest millions of dollars in their R&D activities. Businesses have to be up to date or pioneer in their field if they have to survive as a business. Of course, being technologically advanced alone does not guarantee a successful business, but it is one of the important features that a business cannot afford to do away with, especially if the business is in the fields of science or information technologies.

Legal/regulatory changes: legal or regulatory changes are most unpredictable of all. For example, there could be sudden taxation that government may impose on certain kinds of services or products. It not only affects the individual businesses, but also businesses in the whole industry or sector. Businesses should be flexible enough to have changes made in their model in order to fit in to the legal or regulatory frame works.

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