Entrepreneurship & SMEs

Entrepreneurship & SMEs

Description:

This assignment designed to giveyou theexperienceof investigatingand recommendingsolutions to abusiness problem. Read the scenario (business problem) below and present solutions to managers within the client organisations. Write aclearlystructured, well- argued andappropriatelyreferenced report of3000 words. You are expected todeal with complexissues faced bythe owner,both systematicallyand creatively, makesound judgements in the absenceof complete data,andcommunicate their conclusions clearlyto specialistand non-specialist audiences.

Problem

IntheheartofLondon’scitycentre,thepopularSpiceSkyrestaurantpridesitselfonthequalityandrangeofitsIndianfoodsince

1988.Therestauranthasbeenrecordingayearlyincreaseinsalessinceitsgrandopeningmorethantwodecadesearlier.The restaurantownerAliMahal,nevertheless,hasinvitedyourcompanytooffersolutionstoagradualdeclineinsalesthathasbeen recordedthelast12months.More specifically,Aliexplainedthatsales,which havegrowneveryyearsince he openedthe restaurant, haveactually droppedoverthelasttwelvemonths.Yet,London’scentralrestaurants,aswellasthetown’scity centrehavecontinued to prosper.

Moreover, toget a fullpicture,you havedecided to visitthe restaurant andinvestigatefirst-hand theexperienceof diningin SpiceSky.

Day 1:LunchTime

YouhavevisitedSpiceSkyandfoundyourselvesoveratablewithvegetablesamosa,pakora,chickenspringrolls,lamptikka, tandoorichicken,andtwobottlesofHadiabeer.Oneofyourcolleagues,passionatewithcoldbeer,immediatelystates:thisbeeris lovely;I thinkHadiaisaricebeerisn’tit?Alireplied,"Ah,yes,itiscreatedby mixingherbswithboiledriceandleavingthemixture tofermentforaroundaweek.But,wehadtoremovethatfromourmenuasweneededtoreduceourcosts.WeserveinsteadEnglish

beers. WesaveHadiajustfor friends.Somehow,we hadtoreducethecostsandthereforewedecidedtoremovesomedishesand beverages.

Afteryou finished withyour dinner,you asked Aliexplainingin moredepthwhat he thinks has caused the sharp declineof sales.

Ali:Well,Ihaverealizedthatallthedowntownrestaurantshavedramaticallyincreasedtheirtelevisionadvertising."I'vebeenusing thesameadvertising foryears:afewspotsonlocalradio,anoccasional newspaperspot,andabillboardonthemainhighway,5miles fromtherestaurant.WhenIseethefancyadvertisingrunby my competitors,itisclearthatIhaveanadvertisingproblem.Iwantyou totellmewhatI candotomakemy advertisingmoreeffective!"Oncetheinterviewiscomplete,youinformedAlithatyouwillgo back and prepareaproposal that will describehowhemaybe ableto helpSpiceSkyget back on track.

Day 2:Laterthat day

Backintheoffice,youhavestartedtheexaminationofSpiceSky’sreports.YoubeganstudyingtheadvertisingofbothSpiceSkyand its competitors.At somepoint,youidentified thatthat someoftheneighborhood competitors, includingabig chainIndianrestaurants, havealwayshadalargepromotionalbudget,includingtelevisionads.Theadvertisingdeficitisn'tnew.Hetriestoidentifyallthe thingsthathavechangedsinceSpiceSky’ssalestrendsturneddownward.DoesAlireallyhaveanadvertising problem?Isitaproblem withcompetitivepositioning?Isitaproblemwithachangeintheexternaloperating environment?HasAlijustmissedoutonsome growthopportunities?Then,justashunger startstosetin,you rememberedthevegetable samosa,pakora,lamptikka,andtandoori chickenyouhadforlunch. Maybeyour hunger has led to a discovery!

Day 2

Oneofyourcolleaguescalls Ali fora follow-up interview. Thedialogueis the following:

Colleagues:Ali,asyousuggested,thedownwardsalesbegantwelvemonthsago.Asidefromtheadvertisingyoumentionedearlier, what other changes haveoccurred insideofyour business within thepastyear?

Ali:Just a few things. Although salesaredown, ourprofits haven't suffered verymuch. Sincewe

hiredacostcomptrollerjustoverayearago.Wehaveeffectivelymanagedourcostsbychangingsuppliersanddroppingsomeofthe more costlyitems from ourmenu.

Colleague: Suchas changingthe ricebeer?

Ali:'TheHadia that weserved costsus almost5 poundsper bottle. Customers don't like to pay

morethan 3 pounds perglass forabeer, so weweredoinglittle morethan breakingeven on it. Besides, our competitors also serveEnglish beers.

Colleague: Haveyou noticed changes inyour customers?

Ali: Otherthan the fact that theyare coiningless often, no!Theyarethesame faces thatIhaveseen foryears.

Colleague: Havethecomplaints or comments changed?

Ali:A few complained on removing an item or two from themenu. A couple about the Hadia change.

Colleague: Has therebeena changein personnel?

Ali: Yes, we'vehad morethan theusual shareof turnover.I'veturned overmostpersonnel decisions to the controller. We'vehad trouble maintaining good kitchen help.

Colleague: Haveyou noticed anychanges to thecompetitors thatyou havenot alreadymentioned? Ali: Most of thenearbyplaces aredoingthe samethings theyhavedoneforyears. ThechainIndian

restaurants havethe samepromotions eachyear and theirmenu doesn't changeverymuch.