The following is the problem: \"Alice, the founder\'s granddaughter is a member

Question

The following is the problem: "Alice, the founder's granddaughter is a member of new generation is taking over a mature family owned business. Over the past 7-years the business has been gradually declining. The clients are aging and moving away from the area as they enter retirement. The staff is also approaching retirement and loyal long-term employees may soon be leaving as well. Alice has been around the diner all of her life and really want to run it as her own business. It has been in the family for two generations. Her family even owns the building & property. She has prepared herself for this opportunity. She has an MBA and a MS in Hospitality & Culinary Arts. Cambridge is a great market with new incoming student every years. But Cambridge is becoming increasingly expensive. It is also increasing in ethnic diversity. As the ethnicity of the population expands the existing restaurants are also increasing the diversity of their menus. Many new competitors are entering the area offering diverse menus, environments and price options"

Looking to create SWOT ANALYSIS & SITUATION ANALYSIS base on the story

Explanation / Answer

Answer: The situation and SWOT analysis based on this story is as follows

Strengths

Weakness

Opportunities

Threats

Thus this SWOT analysis reveals that in the long term Alice has a number of opportunities for developing this family business. By using her strengths like MBA and past experience in the business she can identify new target customers and develop new marketing mix that can help the business to renovate and grow. She needs to start developing new target market segments and offer innovative menus. This will help her to tap the potential that Cambridge offer because of rising student population and ethnic diversity.

Strengths

Weakness

• The business is mature and hence it has brand recognition and awareness at the market place

• Building and property owned by the business

• The new potential leadership is well qualified with professional degrees like MBA and MS

• Alice has seen the operations of the diner since her childhood

• Weak client base as the clients are getting older and new clients are not there

• Weak workforce as the employees are getting older

• Limited menu

Opportunities

Threats

• New energetic leadership ready to take up the business

• Developing new customer bases like incoming students

• Improving the menu offered by the restaurant

• Increasing ethnic diversity hence innovative marketing mix can help in creating a competitive advantage

• Declining business since past 7 years

• Declining client base as the clients are migrating after retirement

• Loyal long term employees may leave

• Increasing competition

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.