The Great Italian Food Company Strategy
The Great Italian Food Company (GIFC) is a family owned business. For the restaurant business to survive, it must give attention in providing high quality products and service, perform corporate social responsibility and integrity. The GIFC managers have understood that for the restaurant business to succeed, in the long run, must focus on integrity in relationships with customers, employees and business partners.
The GIFC is an authentic Italian restaurant, so opening up other ethnic restaurants should not be done as other stakeholders may portray this step as loss in faith in their own food and restaurant and new venture into other ethnic foods could prove disastrous as they have no idea about other ethnic foods. If they have to choose a strategy they should choose a differentiation approach (Porters four competitive strategies). The differentiation strategy is to offer product or services that are of unique and superior value compared to those of competitors and to target a wider market segment.
With many other Italian restaurants in the greater St. Louis area and in the country, how can they differentiate themselves from the rest? Before expanding their business, first they have to do a SWOT analysis (Strength, weakness, opportunity and threat). This is important because careful scanning of an organization’s internal and external environments may detect early sign of opportunity and threat that may influence the firm’s long term plans. Kinicki & Williams, SWOT Analysis) This will help them to gain competitive advantage as they will know if any competitors are doing the same thing as they are doing. They will also need to think on ways they can differentiate themselves from the many other Italian restaurants, it could be the food from only a certain part of Italy, it could be the decor and ambience or it could be the service they provide. It all depends on what their competitors are doing and not imitating them.
Apart from this they also need to analyze the economic environment as the overall economy of the country may be in recession which means most people will try to save money and spend less on restaurants. Growth is very important for a business. Without growth the business will stagnate and ultimately will be taken over by other factors like inflation, competition, etc. . For the growth of GIFC, it is important for them to develop a mission and vision statement. The mission statement expresses the organization’s purpose while the vision statement describes the rganization’s long term direction and strategic intent. (Kinicki & Williams, Mission and Vision statement)
There should also be goals that should be agreed upon by everyone in the organization. For the owners to decide more effectively, they can use the six stages decision making model. Their first goal should be to create a reputation of quality and consistency, so the name Papa Joe’s become synonym with Italian food in the Greater St. Louis area. These goals can help the restaurant be a leader in Italian dining. Another goal can be to open a fifth location in the St. Louis area with focusing on the customer base of young adults.
Also the restaurant can offer take out menu and delivery options. This is not only increase their customer’s base but also provide a wide range of options from dine-in to take away from delivery means more satisfied customers and more revenue for the company. This can help in more satisfied customers. In maintaining sales, new products can be added to keep with the changes in the market. Marketing should be done to remind people of the new delivery and take out menu as well as the other four initial restaurants.
If sales improve and marketing efforts work out, they can scan for their sixth location with an upscale version which is Pap Joe’s dream. For a restaurant to be well recognized, it must focus on high product quality, excellent marketing and distribution and superior service. For GIFC also the same rule applies. The restaurant should apply the growth strategy which means expanding. (Kinicki & K. Williams, the Growth Strategy) This strategy will help them in getting more market share, more revenues and customers.
