Strategies ought to be both emergent and deliberate,and the companies should be able to adapt both and depending upon thecircumstances which option to choose. These can be learned by paying attentionwhat are the needs and wants of the customers and how that can be fulfilled.When it comes to strategic planning to work, it is the top level managers whoare responsible for planning not only for the current competitive market butalso for the future scenario. Strategicplanning is the procedure of developing the direction and the action plan toreach the desired goals of the company. There are key elements of any strategicplanning process such as: (i) building up an understanding of what is thevision, mission and values of the company; (ii) a present state evaluation ofthe most significant external and internal factors influencing the organizationthat will contribute to well- versed selection for the strategic planningprocess. The foundational elements of any organizations are vision, mission andvalues which are very important part of any strategic planning process.
A well-defined mission and vision gives a clear direction and focus for any company.For any company the strategic planning enables them for setting the priorities,align employees and allocate resources with the company’s vision and missionand it reduces the haziness any gives clarity and right direction to reach thedesired goals. There are many associationsthat invest their most of the time and energy in responding to the unexpectedchange instead of looking at it and anticipating and making the mind aware ofthese changes. This may be known as Crisis management.
There are manyorganizations who spend their time and energy in those situations which areactually no-win situations. Organizations use most of the time and energy inadapting to prompt issues with little energy left with the company to take upand prepare the next challenge. This brutal cycle locks numerous associationinto a reactive stance. It doesn’t need to be in that way. An option which isquite used and well tested process which is called strategic planning whichgives an option which is more practical. Strategic planning is very important forany organization to reach to the desired goals.
It is a procedure which is undertakenby an organization to build up a plan so that the company can achieve all theirlong term goals what are been forecasted. Strategic planning is a procedurethat is done by following series of steps with some objectives which a desiredby the company and the end results that can be evaluated and implemented.Basically, it is procedure by which one can forecast the future, illustrate thepicture of that trends which will be followed in future by seeing the currenttrends and impact the forces and powers that will influence a company. It isbasically planning for the future the looks for three to five years ahead.
It appraises the maximum potential ofthe business and unambiguouslylinks the objective decided within the company to the activity and resourcesthat are required to accomplish them. It offers a precise procedure to ask andanswer the most acute questions to the managerial teams- especially to thelarge. Irreversible resource commitment decisions. A standout amongst the mostessential aspects of starting and managing a business is planning the company’smission and vision goals. Kedai Papa Liem restaurant the first branch was openedin November 2013. The response from the market that they received was quietgood.
Kedai Papa Liem was positioned as a breakfast place for dining in aroundthe residency named Setra Duta, since there were no other café shops orrestaurants opening at that particular time near the residency they were theone to get most of the customers from. The awareness of the market of Kedai PapaLiem was still very low amongst the people living in that city, it would benoticed through the social media that the crowd that is dinning in therestaurant is only the friends and family of the owner. Moreover, they had to puta little extra effort to the gain the popularity amongst the people who all theother restaurants have; to add a little extra more than the breakfast menu forthe growth their business. Kedai Papa Liem needs to get more customers from thearea where they are situated to expand their businesses also. The locationwhere the restaurant is located is perfect for them, considering their maincustomers where coming for the residency located nearby. The restaurant isquiet good and comfortable, it is big enough for customers to come in group anddine in the restaurant.
There were some circumstances during mid-January 2014that was faced by Kedai Papa Liem which did not allow them to grow. The marketbegan to get flooded with many other restaurants that were opened in that area.Those restaurants which were opening in the area where the Kedai Papa Liem wassituated, so it attracted many customers that were visiting Kedai Papa Liem, soit attracted many people who were first dining in the restaurants, the main customersKedai Papa Liem use to get from the Setra Duta Resident, now these customerswere the first one to visit the other restaurants open in that area. The majorissue that was experienced y them were the internal factor, which was the badbusiness process and the human resource management and the other factors wherethe restaurants which were in the competition with them in the city. Porter has acknowledged five competitive forces that shapeeach and every industry, and market too.
These forces determine that how is theintensity of the competition, and henceforth the benefits and profitability andattractiveness that the industry is getting. The target by this should be toenhance the competitive forces in such a way that it improves the position ofthe company. Porter’s model sustained the analysis of the driving in everyindustry.
Those threats were threat ofentering of new participant, risk of substitutes, bargaining power of thecustomers, bargaining powers of the supplier and competition amongst thecompanies. Bargaining powerof the Kedai Papa Liem was viewed very high because there were a good varietyof food and beverage out there that could swap the unique food and the availableherbal beverages in the Kedai Papa Liem restaurant. The bargaining power of thesuppliers were not high the materials that were provided by them not rare andthe suppliers were able to replace it and the cost of switching was also notreally very high. The growth of the cafes and the restaurants industry in theBandung city was very quiet good and high. There were many restaurants andcafes opening there with new and different concepts and themes that attracted alot of the customers out there. It was easy for the customers who were visitingKedai Papa Liem to find a new place for having breakfast and which will givethem a new experience and the cost which might be much lower than the KedaiPapa Liem restaurant. The conditions for substitute for the restaurant KedaiPapa Liem was considered medium as no other restaurant was opening at that timewhen this restaurant was opening.
The condition of the economy in the city ofBandung increased every year that made the opportunity for many people to bringup their start-ups in the sector of food and beverage, this made many peopletry to open their restaurants which definitely increased the threats for the restaurant. This part wouldexamine the factors which are influencing the business from the outside of thecompany. External factors was shaped by the society for each and every companythat brought and lot of change that influenced the industry’s working cultureand in its growth too.
It originated from the society, government involvement inthe business and the general environment. Social factors in the industry like restaurantwere linked in the pattern of lifestyle, behavior and tastes. In the case ofKedai Papa Liem there was a changed observed in the people’s behavior in havingbreakfast that created a trend that would attract people to come and dinethere. Economy in Bandung showed a greatboom in the year 2010-2012 and a significant growth.
This showed that thepeople living in Bandung had an expansion in their income since 2010. By thiseconomic change that was there in the city give a great opportunity to theKedai Papa Liem to gain a good market from the people. The tools that werebrought into the restaurant were of new technology which was a critical factorfor supporting it and which brought some innovation in the dishes they produce.These tools used to get a good result in the taste, texture, and shape andcreated efficiency in cost and time for the production.
There were some rulesand regulations that should be followed in the opening of a restaurant; thegovernment that is ruling regulates the obligations and the rights of the owneras well as the employees.The main targetof the Kedai Papa Liem restaurant was to satisfy the customers who are diningthere with a good quality of food, beverages and a good place where people cangather and enjoy their food with family and friends. The main aim of their restaurantwas to be the best place for breakfast for people who are dining there so thatthe people doesn’t need to search for the kind of food and service they areexpecting to get. To achieve that the restaurant opened early in the morningand provide a good and full service to the guest which are dining there. One thingthat is followed by the restaurant and they made this one of their prioritythat everything should be done so that the customers who are dining aresatisfied with the quality of the service. Internal factors aredesigned by the weakness and the strengths of the particular company that showscertain profits and loss in satisfying the needs and wants of the targetedmarket. Kedai Papa Liem’s location was strategic the target market for them wasthe Setra Duta residency near their restaurant.
They seek out the most potentialof the location, as that area is good for lodging for high class and middleclass people as the area lacks a good restaurant or café near the residency. Theconcept of the restaurant was designed like an old Chinese style bar that was acombination with the current theme to attract the customers. Compared withtheir position, Kedai Papa Liem is one of casual dining restaurant thatprovides all the meals starting from the breakfast, they especially open their restaurantsearly in the morning so that the customers should get a good meal to start onfor the day with. The most important part that gives competition to the othercafes and restaurants is their food and beverages which they are serving. Havinggood equipment to work on they still take a lot of time to serve the food tothe guests in spite of that the taste of the dish they are producing is quitedelicious.