Environmental analysis is important to any business organization. It is a strategic tool that is used to analyze and identify the external and internal environment which may affect the business either positively or negatively (Dyson, 2004). The analysis involves taking into account both the external and internal forces and for each element identifying one primary strength, weakness, opportunity, threat, and tread (SWOTT). This paper entails the SWOTT analysis of Catbird Seat Restaurant Strategic plans. Both the external forces, internal forces, and trends are discussed in details.
To begin with, the main external environmental forces and trends in Catbird Seat Restaurant are first put into consideration. There is an industrial revolution that helps an organization move with current affairs. Industrial changes may also involve the use of modern technology and machines to increase production and effective usage of natural resources. Catbird restaurant specializes in offering rotational Du Ju menu and therefore caters for cultural diversification in the food industry. Moreover, the restaurant unique design of U shaped shows a change in food industry design.
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Catbird restaurant has more opportunities as hundreds of exotic Cuisines are yet to be offered and this could be a better opportunity for increasing the customers from different cultures across the world. In addition, the restaurant has an opportunity for future expansion into a larger food industry specializing in offering cultural food. The restaurant applies the emerging trend in food industries offering better and unique services such as giving the customers the chance to watch their food while being prepared. Moreover, the customers choose the type of the meal they want and make a one-month appointment to book the seats. In addition, Catbird is going global by using the modern technology in the food industry and the fact that the restaurant uses online advertisement is likely to be more competitive in the market. The restaurant has also developed a personalized customer care method as a new trend in the social environment. Moreover, venturing into an exotic Cuisines with zero calories is an innovative way if attracting more customers as cardiovascular diseases and obesity are reduced. Economic forces will also play a role in determining the volume of business transacted by Catbird. The trend which results from these forces is that of free trade. It stabilizes the global economy.
Secondly, the internal environment of any business is important as it determines the success of the business. Moreover, the analysis of internal factors and trend assist in the decision making of the business (Dyson, 2004). In catbird restaurant, relevant internal forces such as the strategy, structuring resources, achieving goals, intellectual property, innovation and leadership and their current trend are considered to be a vital tool that helps the restaurant meet the customers’ need. Catbird restaurant has a set of strategies that will assist in achieving the intended goals. The restaurant has a new division that will explore new ideas on new service product to the business. In addition, the restaurant proposes to develop a team of researchers to conduct market research. The restaurant has other sectors such as product development sector with vision and mission to offer unique and delicacy Cuisines. The restaurant is determined to achieve its goals and vision of retaining, attracting more customers and make an impression to customers by meeting their service requirements.
In order to ensure success, Catbird structures its resources using guiding principles and values that meet the cultural, social and business ethics that makes it exceptional. The restaurant is defined by being ethical in the provision of quality product and services to the clients and meet its vision of being an internationally recognized restaurant. The product and services that Catbird offer is of high quality and there are high probabilities of retaining the customers’ loyalty. The leadership and management of Catbird are innovative and employs unique strategies that make the restaurant’s products and services unique. The executive chef and the owner of the restaurant Ryan with assistance from beverage director Matthew ensure smooth operation of the restaurant. Moreover, the restaurant enjoys the intellectual property rights such as industrial design rights which protect the industrial design of the restaurant, trademark which distinguish the products and services and patent rights exclude others from offering similar products and services for a given period of time (Hay & Castilla, 2006).
Catbird Restaurant has the adaptive ability to change as per the environment. Since at present, the restaurant has a small budget, it can only manage to have a small workforce. It has also strategically bypassed the requirement of having a human resource, finance, and procurement department with these roles being played by the two executive owners. This is necessary since the cost of operation is high and therefore this is a survival mechanism. However, as the business grows and the cost of production decreases, the restaurant will expand its organizational structure to include other components. In the event of reduced customer volumes, the restaurant will employ a combination of retrenchments, lower budget, and product diversification to survive.
The supply chain of Catbird Restaurant revolves around the procurement of agricultural supplies. This includes but not limited to wheat, meat, milk and its by-products, vegetables, and fruits. Since direct contact with producers, tender contracts will be issued to select wholesalers to supply these commodities. The primary suppliers will, therefore, be farmers, butchers, and millers. They will then sell their commodities to the contractors who will subsequently sell the same supplies to the restaurant at agreed prices. Their contract will be annual and renewable.
Producers Contractors Catbird Restaurant Customers.
The major internal organization consideration in coming up with this strategic plan is the nature of the business, the recipes on offer, the simple management structure, and budget constraints. The restaurant’s organizational structure can only support one extra department: that of research and product development. This arm will be tasked with the responsibility of implementing the strategic positioning of the restaurant as a premium destination for Du Ju menu. The department will be expected to conduct market research and recommend innovative strategies to enable Catbird to remain competitive.
One of the major issues in the food industry is the existence of legal and regulatory framework that create loopholes for foreign competition to creep in. Secondly, in the economic sphere, the frequent financial crises periodically affect the volume of customers. Thirdly, due to the rapidly changing technology, cuisines information is readily available hence customers may opt for rivals’ restaurant. Lastly, the environment is a major area of concern (Dyson, 2004). Global warming is a challenge as it threatens the flow of agricultural supplies. What are the opportunities arising from these issues? First, the legal loopholes create business opportunities for overseas Investors. Second global financial meltdown creates opportunities for new investors to buy off bankrupt and collapsing commercial enterprises. Table 1 shows the various external forces and trends.
Table 1
External Forces and Trends
| External forces/ SWOTT | Strengths | Weaknesses | Opportunities | Threats | Trends |
| Industry changes | Offering rotational du ju menu that is culture-sensitive changes the food industry | Sometimes owners may impose preferences for customers | There hundreds of exotic cuisines which are yet to be offered | A couple of restaurants in the neighborhood are venturing into this field | A trending is emerging where customers want to watch as their food get prepared |
| Legal and regulatory | Catbird has acquired the relevant licenses and is compliant with labor laws | It might fail to comply with some statutes due to the inability to hire a permanent company attorney. | The existing agrarian laws are lowering the cost of agricultural products. | There are loopholes in the law that allows easy foreign competition in the food industry | The legal regime is making the hospitality industry more and more open. |
| Global | Catbird is reaping benefits from free global trade: the cheaper flow of ingredients | Currently, catbird doesn’t have the capability to export its cuisine overseas. | Opportunities to expand overseas exist | Foreign competitors are creeping in | Globalization has become a trend. |
| Economic | The cost of doing business is stable and predictable in the USA | Profits margins are small due to the high cost of production | Good economic times lie ahead with globalization | Frequent financial crises may periodically affect the volume of customers | Free trade is stabilizing the global economy |
| Technological | Catbird will use online advertisement to stay ahead of rivals | It can’t afford media advertisement due to the small budget. | Social media is still largely uncharted as a marketing platform | Information is readily available hence customers may opt for rivals’ cuisine | The sophistication of technology in the food industry is the trend. |
| Innovation | Catbird will offer zero-calories food to reduce obesity and heart conditions | Customers interested in cuisines rich in calories will keep away | Knowledge of market is low and there is room for research | Rivals delivering the same cuisines at the customer’s doorstep may hurt business | Venturing into exotic cuisines is the trend |
| Social | Catbird allows clients to interact with each other | Opening only 4 days in a week limits this interaction | The restaurant will launch a massive customer relations campaign | Negative publicity may make customers shun away. | Developing a personalized customer contact and feedback is the trend. |
| Environmental | Catbird has a solid waste management system | Managing liquid waste may be a challenge. | Green energy is a future venture since it is clean and environmentally friendly. | Global warming is a challenge as it threatens the flow of agricultural supplies | Cutting carbon emission is the trend. |
| Competitive analysis | Catbird has the competitive edge as customers have a personal touch with the staff: meals are prepared right in their eyes | Requiring that customers book a seat one-month prior is a weakness. Those in a hurry may not have the patience to wait for food to cook. | Catbird has the opportunity to undercut the prices of its rivals and drive them out of business. | Chinese food restaurants are creeping in with their low prices of food. | Innovating to survive in the competitive food industry is the trend. |
Table 2 shows the internal forces and trends, which encompasses various considerations.
Table 2
Internal Forces and Trends
| Internal forces/ SWOTT | Strength | Weakness | Opportunity | Threat | Trend |
| Strategy | Catbird has a strategic plan of becoming an internationally recognized brand | The plan lacks contingency plans in case it fails | The plan can be extended to international markets | Competitor’s strategy is to drive Catbird out of business | Expanding strategic plans to include international markets is the trend. |
| Structures | Catbird has the benefit of having a simple structure: an executive in charge of dinner and a director in charge of beverage | However, this structure lacks important components like human resource, finance, and procurement departments. | The hierarchically complex and sophisticated structure adopted by rivals ensures their competitiveness | Catbird can hire a consultancy firm to advise on the improvement of its operational structure | Streamline of operations through seamless interactions between components of the structure is the trend. |
| Processes and systems | Customers are able to view the process through which their food is prepared. | Any instance of unhygienic practices while preparing food might scare away customers | In future, customers may invite Catbird’s chefs to prepare meals at their homes or during functions. | The home-delivery of cuisines by rivals has reduced the volume of in-house customers. | Making the process of food preparation less and less opaque is the trend |
| Resources | The two owners of Catbird have invested considerable operating capital | Limited human and financial resources | In future, external investors might be interested | Rivals have more human and financial resources at their disposal | Maximizing benefits reaped from limited resources is the trend. |
| Goal | Catbird has the capability of attaining its objective of becoming an international brand | Financial constraints can hinder the realization of this goal | More opportunities for cuisine diversification exist by introducing new recipes | Cultural conservatism may prevent customers from indulging in other culture’s cuisines. | Formulation of long-term goals has become the trend. |
| Strategic Capabilities | Can become an international brand by attracting foreign customers | This will be inhibited by the limited days Catbird operates | The international market is wide open when one has a sound strategy. | The dominance of already established brands may be immune to any strategic challenge | More and more brands are increasingly gaining strategic capabilities through market research |
| Culture | Catbird’s business model is very culture-sensitive as it offers a cycle menu every 3 months | Over-emphasis on culture may not impress every potential customer | Hundreds of cultural delicacies exist worldwide and these can be introduced and served at Catbird | Restaurants serving cultural-exclusive cuisines are blooming everywhere. For instance Chinese restaurants. | Appreciation of people’s culture through food is becoming a trend. |
| Technology | Catbird uses solar-power for its heating and refrigeration systems | Power generated significantly drop during severe winters | The restaurant might supplement its energy supplies by installing a biogas system | President Trump has threatened to impose tariffs on imported solar panels | Use of green energy is the trend |
| Innovations |
Catbird has come up with the unique U-shaped sitting arrangement |
Customers who are too sensitive to eye contact with strangers can find this uncomfortable | Catbird can experiment with other sitting arrangements until a more suitable one is formulated | Rivals have private lounges for VIP customers | Increasing customers’ comfort while eating is the trend. |
| Intellectual property | Catbird has patented its original recipes and trademarked its brand | Some recipes are actually community recipes and can’t be patented. | Inventing new recipes create room for more patents. | Legality of these patients may be challenged in a court of law. | Safeguarding intellectual property rights through lawsuits is the trend |
| Leadership | Catbird has two leaders who also serve as principal owners. Small leadership ensures quick decision making. | Small leadership lacks the diversity of skills, insight, and experience found in larger leaderships. | Decision-making and stake-holding may be increased in future by if the owners sell some of their shares | Leadership wrangles may arise thereby undermine the business | Professional and committed leadership is the trend |
Conclusion
The paper has critically analysed the Catbird Seat Restaurant’s strategic plans using an extensive SWOTT analysis. The evaluation involves a comprehensive discussion of the external and internal forces as well as trends in the market within which the restaurant operates. The SWOTT analysis finds that besides the operations of the restaurant are dependent on not only internal factors but also the external environment of the organisation. Catbird restaurant aims to grow beyond being profitable and reputation as a company. Trough SWOTT analysis, the restaurant believe that being sustainable and meeting customers need is the current trend business.
References
Dyson, R. G. (2004). Strategic development and SWOT analysis at the University of Warwick. European journal of operational research, 152(3), 631-640.
Hay, G. J., & Castilla, G. (2006, July). Object-based image analysis: strengths, weaknesses, opportunities, and threats (SWOT). In Proc. 1st Int. Conf. OBIA (pp. 4-5).
