In this short report, I hope to help you understand and change your current situation, using a concept from Study Session 2, The External Environment (B120 Book 1).
I believe the problems affecting The Lodge Bistro are:
High staff turnover.
Inconsistency in the approach of the managers.
Reduced spending by customers.
Company Standards lowering.
Dated Décor and Menu.
Low quality food being served.
Custom Economic Climate.
I have used the concept STEEP to identify the problems at The Lodge Bistro. STEEP has five factors:
These five factors help to define and analyse external environments, providing an accurate understanding of them. By doing a STEEP analysis it means you can identify the external environments that influence your business enabling you to identify problems and solutions. This is my finding
when doing a STEEP analysis for The Lodge Bistro:
The Décor and Menu are based on the first Café that opened in 1989 and are Outdated. Although this image may be keeping your older more loyal customers happy, they are visiting less frequently and are not spending as much money as they used to.
Managers are adopting different approaches in areas including Staff Recruitment, Training and Appraisals, Food Production and Provision, resulting in high staff turnover, inexperienced staff and low quality food being served.
Technology is not being used to its full potential like competitors, therefore you are losing consumers and advertising materials.
There is an increasing number of new restaurants, coffee shops and fast food chains opening up across the Country attracting more custom.
The high turnover in staff decreases morale and put more pressure on existing Staff and Managers having to work longer hours to cover.
Competition has increased significantly since the Bistro opened and what was once a sophisticated concept is now increasingly considered somewhat dated as stated in your case study.
The economy is moving into a recession so consumers are spending less or not using the Bistro.
Part ( c)
My suggestions for the future are:
High staff turnover – Introduce the incentives as stated in your case study of Holiday bonuses, free cinema tickets and shop vouchers, for all Staff not just Managers, If staff keep to the system and prove to be “top achievers” rewards them with one of the above, this will boost morale and staff will have something to work toward.
More structure in the work place will improve the Managers approach to Recruitment, Training, Food Production and Provision also lowering the staff turnover, raise the standard of food production and the staff will be more experienced.
Update the Décor and Menus, make it more appealing to the consumer base within the area.
Make use of technology, use it to advertise the Bistro on social network sites, online newspapers. Offer free wifi this will attract a younger customer base. You could have “The Lodge Bistro” website where consumers can book a table, look at the Menu, see what The Lodge Bistro looks like and what it offers and review from previous or existing customers.
As suggested by one of your younger managers offer a range of less expensive snacks to cater for the consumers on a low budget.
Reduce packaging in response to the environmentally friendly principles of many customers.
Word Count 550.
What makes a good business?
There were many different opinions in the Tutor Group Forum about the key characteristics of “What makes a good business?” , some said the business needs to be adaptable to change and have good customer service, Others believed it was the Product on offer and employee satisfaction other characteristics that were discussed were: Originality, Good Communication, A good business plan and a good structure.
I have learnt that there is no right or wrong answer to this question because businesses will have many characteristics that make it successful not just one or two and they wont always be the same key characteristics either, for example a retail outlet are focused on making a profit and customer satisfaction, in order to achieve this they have to have a good product and excellent customer service, where as a business with Unique product will get the custom regardless of the customer service because they would not be able to get the product anywhere else, their focus would be to produce an excellent product.