Esprit Strategic Analysis Essay

In regard to a research of microenterprise in Macau, casino and gambling enterprise is the main source of in observe to the Macau parsimony. everywhere 80% of in amount is contri stilled in 2012. However, microenterprise is in like manner taking an essential role to the healthy long-term relegatement to the topical anesthetic economy.By doing so, a agglomerate of diffe drive strategies go for to be conducted in each bon ton in lay to achieve the goal. Strategic Management is a way to identify competitive advantage and analyze the native and external factors which influence ones performance. It also helps in making a pealingdle of decisions for future direction and attaining sustainable development by formulating and actioning appropriate strategies.In this report, comp any background information, pot and mission, a series of dodge formulations and analysis ar all toldow ford. Further much than, applying various strategies in actions and implementation ar tie in t he following.INTRODUCTIONCaf Thai miscellany Loi Kei is one of the historical cafe in Macau and their exclusive hand-made porc whirlybird bun is the icon while it go out come up in mind of locals and tourists when senmagazinent of Macau. It was established in 1968, with approximately 50 years of history primed(p) at the Thaipa village. The initiate owner of the cafe was Ms. Kuok Loi Ho but the origin is transmitted to her daughter Ms. Chan Ka I and differentwise deuce family members. In the 1960s, Thaipa village is not well-developed as what people see today where there were lots of firecracker factories nonplus up there. Ms. Kuok was originally operating this kind of communication channel but it involves high risks and accidents were often occurred during that time.She later modify her business in opening a cafe which was interchange drinks only. At that period, there were many Portuguese working at the Municipal Council at Thaipa next to the cafe. Ms. Kuok was taught by a Portuguese to view as a pork whoop bun with special Portuguese sauce and it kick the buckets the reputable pork chop bun nowadays.Following the success of the business, more stock certificates argon rapidly opened in Macau and even Hong Kong. Besides of the flagship store at the Rua do Cunha, it cornerstone also be found in Venetian and one near Ruins of St. Paul. The food items argon diversified for options which fish ball, squid, beef, and pork chop rice with onion sauce and so ontera are served as well. With good word-of-mouth and reputation and being recommended by many guidebooks, their main customers are tourists and it is said that the siamese connection florilegium pork chop bun has to be tried when every tourists come to Macau.MISSION concord to the owner of Caf Thai florilegium Loi Kei said, their mission is Whoever talks about pork chop bun, the first shop mention come up with in their mind is Tai wreath Loi Kei. Our throng thinks that it is n ot strong enough in regard to be a good mission tale therefore, we cave in further developed a more comprehensive mission statement below. To be the principal role of pork chop bun market not only in Macau, but also expand the business to South- eastern hemisphere Asian countries.As a top family style pork chop bun store, we are determined to reinforce our image by designing our own logo, slogan and mug of coffeehouse Tai chaplet Loi Kei. With the insistence of fresh ingredients used and friendly sentimental service, we are committed to serve high value and quality products to all visitors and local residents at debateable impairment.In set up to meet the customers needs and demand in the rapid changing market, we will continue to develop freshly technology applying in food production and innovative products. Our dedicated group up is also responsive to hearty community in hiring uneducated local employees as well as contribution in good-will activities, in where prov iding growth opportunity and building a more familiar relationship to employees.VISIONWe are transforming the original operation pattern to microenterprise, with regional franchise operations not only limited to Macau but also to the South- due east Asian market. We believe that an accelerated utility will be kept over the next few years. We will constantly design and launch new menu items in consent to the local appetite in the market. Our goal is to make a remarkable profit for every branch of Caf Tai lei Loi Kei and go through everycustomers expectation. STRATEGY FORMULATIONi. remote Factor military rating Matrix (EFE)Caf Tai lei Loi Kei tombstone External FactorsOpportunitiesWeightRatingWeighted noticeIncrease number of tourists coming to Macau0.1530.45 erupt economy in South easterly Asia and Mainland china0.1030.30 Increase in Macau peoples purchasing mightiness0.1030.30 promotion coupons inc draw and quarterd in Macaus official tourist map may help profit awaren ess0.0520.10 Cooperation with the callowness punitory institution may help finding manpower0.0530.15 ThreatsCustomers are free to change another scar to consume pork chop bun0.1020.20 increase number of rivals in the township selling similar product0.1510.15 Increasing heart and soul of rent in Macau may lead Tai Lei suffer0.0520.10 Local people revoke to work in small-middle enterprises0.0520.10 Negative comments from online reviews and locals0.0520.10 Negative news in Taipas flagship store in celestial latitude 2011 (required to close by IACM)0.0530.15 People seek for healthier food and beverage nowadays0.1020.20 TOTAL1.002.30Caf Tai Lei Loi Kei has a total plodding score of 2.30 revealing that the company is below average in its performance to implement strategies that capitalize on external opportunities and avoid threats.ii.Internal Factor Evaluation Matrix (IFE)Caf Tai Lei Loi Kei Key Internal FactorsStrengths WeightRatingWeighted ScoreOld history and reputable tain t name0.1040.40Use central manufactory to pay back pork chop to ensure same quality and acquired ISO recognition0.0530.15 Earning profit every year0.1540.60 drawing card to investors from South East Asia and Mainland China0.1540.60 Strong marketing team to develop new promotional programs and expansion strategies0.1030.30 WeaknessesLow educational level of all level of the employee0.0520.10 Lack ofmanpower0.1010.10High selling price compares to similar products in the market0.1520.30 Limited amount of branches in Macau Peninsula0.0530.15Most products are in high calories 0.1020.20TOTAL1.002.90Caf Tai Lei Loi Kei has a total weighted score of 2.90 indicating that the company is above average in its effort to implement strategies that utilize on inbred strengths and minimize weaknesses.iii.Competitive Profile Matrix (CPM)Two core competitors are identified in accordance to geographic location, product, quality and price. Caf E.S.KIMO is the first Taiwanese coffee shop in Macau (MGTO , 2012), with the immersion of local favors. It also provide famous pork chop bun with a very nice unit price of cleanse 13. It has many branches across the town as well as mainland China. In the Taipa branch which just located opposite to Caf Tai Lei Loi Kei, it placed an easy-up banner (see picture 1) outside of the store showing that Macaus famous pork chop bun only sells MOP 13 (see picture 2).Another competitor is Taipas famous pork chop bun (named Taipa pork chop bun below) located in Rua do Cunha, which also selling pork chop bun with unit price of MOP 23 and Kopi Luwak (a kind of high quality coffee).Caf Tai Lei Loi KeiCaf E.S.KIMOTaipa Pork Chop BunCritical triumph FactorsWeightRatingScoreRatingScoreRatingScore Advertising0.1020.2030.3010.10Food Quality0.1530.4530.4520.30Dietary Consideration0.1020.2030.3020.20Service Quality0.1030.3030.3020.20Price Competitiveness0.1020.2040.4020.20Management0.0330.0930.0920.06Financial Position0.0530.1530.1520.10Customer Loyalty0.0520.1 040.2010.05Reputation0.0540.2040.2020.10Global Expansion0.1520.3030.4510.15Market Share0.0530.1540.2020.10Accessibility0.0330.0940.1210.03Atmosphere of Restaurant0.0420.0840.1620.08 fundamental1.002.513.321.67According to the result of CPM, it shows that Caf Tai Lei Loi Kei has a total weighted score of 2.51 which is just above average. examine to the other deuce core competitors, the company is situated in the middle while Caf E.S.KIMO is performing the shell among them.iv.Strategic Position & Action Evaluation Matrix (SPACE)According to the result of the SPACE Matrix, it showed that the strategic position of Caf Tai Lei Loi Kei is aggressive (1, 1.11). The environment is stable, have the strong competitiveness and pecuniary background. The appropriate strategies are retracted, forward, even integration, market penetration, market development, product development and diversification.v.SWOT MatrixStrength1.Old history and reputable brand name2.Use central manufactory to produce pork chop to ensure same quality and acquired ISO recognition 3.Earning profit every year4.Attractiveness to investors from South East Asia and Mainland China 5.Strong marketing team to develop new promotional programs and expansion strategiesWeakness 1.Low educational level of all level of the employee2.Lack of manpower3.High selling price compares to similar products in the market 4.Limited amount of branches in Macau Peninsula5.Most products are in high caloriesOpportunities1.Increase number of tourists coming to Macau2.Better economy in South East Asia and Mainland China3.Increase in Macau peoples purchasing power4.Promotion coupons attached in Macaus official tourist map may helpincrease awareness 5.Cooperation with the youth punitory institution may help finding manpowerS1, S4, S5, O2 Expand the business to South East Asia and Mainland ChinaS1, O1, O2, O3 dictate more efforts on the advertizement and promotion in existing marketThreat1.Customers are easy to change anot her brand to consume pork chop bun 2.Increasing number of competitors in the town selling similar product 3.Increasing amount of rent in Macau may lead Tai Lei suffer 4.Local people refuse to work in small-middle enterprises5.Negative comments from online reviews and locals6.Negative news in Taipas flagship store in December 2011 (required to close by IACM) 7.People seek for healthier food and beverage nowadays-W3, T3 Acquire provider company to lower the personify W5, T7 Develop healthier product to capture the market share of the healthy pursuali.Acquire supplier companyAccording to the W3 and T3, it shows that Caf Tai Lei Loi Kei is suffering the very high rent in Macau, oddly the shop located in the Taipa old town which costs them almost MOP 150,000 per month. Furthermore, Tai Lei has set the selling price in a high level comparing with other similar products in the market in order to balance their financial statement. However, it does not help with the cost issue. We sugge st that backward integration strategy would be suitable for them.Caf Tai Lei Loi Kei has already taken care of their distribution therefore, they can acquire just about of the supplier companies much(prenominal) as the company which provides loot and pork chop. With the implementation of this strategy, they can have kick downstairs control in the cost of their business and they talent lower the price to attract more customers. ii.Develop healthier productNowadays, people concern their health more than before. The trend of the current environment is tent to buy healthy and green products and companyalways arouses well-being. However, the products of Caf Tai Lei Loi Kei are high calories and fats and its not what the current market looks for. According to the W5 and T7, it indicated the need to develop healthier food. For example, Tai Lei can invest a new product which claims at healthiness, such as using organic vegetables, low fat milk, vegetable oil, etc.iii.Expand the busin ess to South East Asia and Mainland China According to the strength 1, 4, 5 and opportunity 2 and the concept of the market development, it discloses that Caf Tai Lei Loi Kei have a strong power to expand their business out of Macau. They are successful and have a long history of their business and have already accumulated a well reputation.In addition, they are famous to the South East Asia and Mainland China. Its attractiveness to the investors from those countries to invest a new business in there. Moreover, the economy of South East Asia and Mainland China are doing well nowadays, its one of the motivators that Tai Lei should expand their business to the 2 markets.iv. endue more efforts on the advertisement and promotion in existing market In strength 1 and opportunity 1, 2, 3, we suggest Tai Lei can pass water a new strategy with application of market penetration. Tai Lei owns two branches in Hong Kong and tercet in Macau. Hong Kong and Macau are popular tourism cities in th e world, especially Macau the number of tourists coming to Macau is increasing rapidly. Moreover, gibe to the opportunity 2, there is better economy in South East Asia and Mainland China, and the main tourists of Hong Kong and Macau are come from those countries.Advertisement and promotion can help to introduce Tai Lei to those tourists before the company enters to these two new markets. For example, using celebrities to promote the brand and product or distribute coupons via different channels. If Tai Lei put more efforts to do the advertisement and promotion in Hong Kong and Macau, it can attract more consumers and increase the market share.vi.Quantitative Strategic Planning Matrix (QSPM)A QSPM for Caf de Tai Lei Loi KeiAcquire supplier company go under more efforts on the advertisement and promotion in exiting marketExpand the business to South East Asia andMainland ChinaDevelop healthier product External FactorWeightASTASASTASASTASASTASOpportunities1.Increase number of tourists coming to Macau0.1510.1540.6020.3030.45 2.Better economy in Southeast Asia and Mainland China0.1010.1030.3040.4020.20 3.Increase in Macau peoples purchasing power0.1020.2030.3010.1040.40 4.Promotion coupons attached in Macaus official tourist map may help increase awareness0.0530.1540.2000.0030.15 5.Cooperation with the youth correctional institution may help finding manpower0.05-------- Threat1.Customers are easy to change another brand to consume pork chop bun0.1020.2040.4010.1030.30 2.Increasing number of competitors in the town selling similar product0.1520.3040.6010.1530.45 3.Increasing amount of rent in Macau may lead Tai Lei suffer0.05---- 4.Local people refuse to work in small-middle enterprises0.05--- 5.Negative comments from online reviews and locals0.0510.0540.2030.1520.10 6.Negative news in Taipas flagship store in December 2011 (required to close by IACM)0.0510.0540.2020.1030.15 7.People seek for healthier food and beverage nowadays0.1010.1020.2030.3040.40 Sub Total1.0 01.303.001.602.60Internal FactorWeightASTASASTASASTASASTASStrengths1.Old history and reputable brand name0.1010.1040.4030.3020.20 2.Use central manufactory to produce pork chop to ensure same quality and acquired ISO recognition0.05---- 3.Earning profit every year0.1510.1530.4540.6020.30 4.Attractiveness to investors from South East Asia and Mainland China0.1510.1530.4540.6020.30 5.Strong marketing team to develop new promotional programs and expansion strategies0.1010.1040.4030.3020.20 Weakness1.Low educational level of all level of the employee0.05-------- 2.Lack of manpower0.10---3.High selling price compares to similar products in the market0.1540.6020.3010.1530.45 4.Limited amount of branches in Macau Peninsula0.0510.0540.2030.1520.10 5.Most products are in high calories 0.1010.1030.3020.2040.40 Subtotal1.001.252.502.301.95Sub Total Attractiveness Score2.555.503.904.55As the table of QSPM for Caf de Tai Lei Loi Kei show that the left two columns are extracted verbatim from the EFEM and IFEM of Cafe Tai Lei Loi Kei and also note that four alternative strategies 1) Acquire supplier company 2) Develop healthier product 3) Expand the business to South East Asia and Mainland China 4) Put more efforts on the advertisement and promotion in exiting market were from the companys SWOT Matrix.Moreover, the Attractiveness Score (AS) from1 to 4 is used to reveal each strategys attractiveness given the individual external or internal factor, where 4 is the best and 1 is the least attractive. Work row by row in developing the QSPM and decide which strategy is the best for the external or internal factor. subsequently conducted the QSPM, the strategy of Put more efforts on the advertisement and promotion in exiting market was highly recommended base on the result of the sum total of the Attractiveness Score from QSPM and it acquired the highest score of 5.50.The second recommendation strategy is Develop healthier product and the third one is Expand the business to S outh East Asia and Mainland China due the priority of the Attractiveness Score, which is 4.55 and 3.90. QSPM can be important information for a firm to make decision of strategies. The strategy of the Attractiveness Score below 3 in the QSPM is not taken into the consideration.The reason of chosen Put more efforts on the advertisement and promotion in exiting market as the highly recommend strategy, the Attractiveness Score of this strategy in the sector of external factor, there are twoopportunities are rated as 4 and two rated as 3 reflecting that the strategy was attractive enough to fulfill those opportunities and one of the opportunities is not related those opportunities are related to the market trends the chance for increasing sales because the tourists, especially the South East Asian and Mainland China tourists, are flooding to Macau tourism market and the booming economy increase the spending ability of local people as well.In addition, two threats about the competitors become more and more because of the opportunities that they can gain the market share of pork chop bun, besides two threats related to lots of negative comments, news are appeared on the internet, newspaper and magazine. Therefore, a strategy of Put more efforts on the advertisement and promotion in exiting market got the highest score on Attractiveness Score because it can against this situation by create more promotional advertisements and distributed by mass media in order to capture the largest amount of pork chop bun market share, by the way this strategy can break the negative comments and news as well.The remaining one about the shortage of man power in Macau cannot solve by the firm themselves due to the government policy. On the other hand, in the internal factor, two strengths are rated as 4 and two strengths are rated as 3 to show that Cafe Tai Lei Loi Kei has the ancient and reputation brand name, the ISO recognition and the new hire marketing team so it is attractive en ough to get the attention of investors all over the world, besides they had good financial report on earn profit per year.Thus, Put more efforts on the advertisement and promotion in existing market can be chosen as a tool to attract more investors so as to expand the pork chop bun market by the promotional advertisement about the ancient and reputation brand name and cooperate with the new hire marketing team, the expanding no longer focus on Macao but Southeast Asia. And one strength does not have any relationship of this strategy.Moreover, one of the weaknesses is rated as 2 and one is rated as 4 related to higher price and do not have enough branches in Macau, so the promotional poster or promote in the travel guide book to emphasis the ancient brand name with where to buy breeding that can be a good solution to against the weaknesses which already excited in Tai Lei, what is more one of the weaknesses is rated as 3 for the less of healthier food, thus first at all, Tai Lei pr ove some health product then use Putmore efforts on the advertisement and promotion in existing market to do more promotion of the related product. And the other weaknesses are no impacted on this strategy.STRATEGY IMPLEMENTATIONi.Acquire supplier companyAcquisition is one of the backward integration methods. Caf Tai Lei Loi Kei could acquire suppliers such as the pork chop and bread suppliers, etc. This benefits Tai Lei because it eliminates the profit which normal suppliers get from Tai Lei, causing reduction of cost. Upon the acquisition, Caf Tai Lei Loi Kei may have to keep all the original staff of the suppliers. However, the organizational culture of the two firms may be different so it becomes difficult for Tai Lei to persuade all staff to have full commitment to the Caf. Remuneration package have to been discussed again in order to harbor all experienced staff.ii.Develop healthier productInventing and creating new flavor products will be a way for Caf Tai Lei Loi Kei to sur vive in the keen competition. Customers are always looking for new products and innovations, especially some healthy food. After the launch of new products, it takes Tai Lei a long period of time to test the market response and to see whether the customers accept the new products or not. Caf Tai Lei Loi Kei will definitely bear the risk that the new products do not help them to expand the product line and obtain good response from customers.iii.Expand the business to South East Asia and Mainland China It costs Caf Tai Lei Loi Kei a lot to expand a new market, such as some South East Asian countries. They have to spend a lot on marketing campaigns and promotion methods. Tai Lei has to tolerate the heavy marketing expenses and at the same time, bear the risk that the customers from new market do not accept this kind of new products. The marketing strategies with high cost will affect Caf Tai Lei Loi Keis profit.iv.Put more efforts on the advertisement and promotion in existing market Byapplying the same concept with the expansion of new market in South East Asian countries, Caf Tai Lei Loi Kei has to spend a lot to emphasis more on the marketing effort inwardly the existing markets, Macau and Hong Kong. It will be beneficial for them to focus more on the existing market since it is easier to retain customers rather than attracting new customers. However, the high marketing cost decreases Tai Leis revenue at the same time.CONCLUSIONCaf Tai Lei Loi Kei is a local brand with long history, selling its headmaster pork chop bun to delight customers with most efforts. According to the interview result and data, we created a brand new vision and mission for Tai Lei. Those interview result includes its internal strengths and weaknesses, external opportunities and threats and many other factors which may affect the future development and performance of Tai Lei.A number of matrixes have been conducted to better analysis the current situation of Tai Lei. After all the mat rixes analysis, four strategies have been developed. We suggest Caf Tai Lei Loi Kei to adopt these four strategies, in order to further develop and expand its own business and have a more prosperous future.