Question

300-400 words

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Answer 1

The SWOT analysis of the company for opening 10 other resturants in the state will include

Strengths - Unique selling proposition of the restaurant, uniqueness of its resources, intellectual capital ( recipe, formulae, specific processes), market knowledge and experience in the field, fnancial capability, industry linkages, access to supplier network, partnerships and alliances, immovable assets, brand recognition among customers, brand value, goodwill etc.

Weaknesses - Inability to keep up with changing times, different types of constraints related to market position, finances, resources, recognition among customers. Strong competitors prohibiting the company to target huge market, lack of economies of scale etc.

Opportunities - Rising level of consumers' income, inclination of customers towards Italian food, growing popularity if fast food served by the restaurant, faourable policies of the government, rapid urbanisation, availability of skilled manpower in the areas of expansion, no significant competition.

Threats - Issues causing negative publicity about the Italian food in the market, threat of emergence of biggies in the industry affecting market share and profitability, fading taste of Italian cusine among customers, giving way to other types of items, demography of the region which can be attributed to its choice of Chinese, Oriental or other cuisine, Non availability of raw ingredients, lack of sufficient infrastructure to support market growth in some regions, lack of skilled and non skilled labour to run the business.

The inputs from SWOT analysis can be used to decide whether to expand or not, by assessing internal strengths and weaknesses and mapping them with opportunities available and threats /challenges present in the marketplace, and also to choose the most appropriate places among the available choices by keeping in view, the findings of the analysis.