Introduction
Street food is one of the growing businesses in the food industry. Several functions opt for their services because of their flexibility and mode of operation which is providing fresh meals. They are also simple because they require few legal formalities and resources such as finance and operational space to be operated. To become a business person, various personal attributes and commitments are compulsory for success (Hitt, Ireland, & Hoskisson, 2016). Preparing quality meals and offering friendly services to customers increases the reputation of the provider. A business person should be capable of understanding the needs of clients and the current trends in the market.
The street food segment is a competitive market having different players that provide consumers with products and services. To compete amongst well-established and new entrepreneurs, a businessman should have well-defined arrays of resources, capabilities, and competencies to enhance the ability to remain viable in the industry (Hostetter & Paden, 2018). A combination of factors such as leadership and finances would be effective in starting and operating fast food.
Resources Required
To compete in the street food market effectively, an entrepreneur should have resources such as finances to purchase cooking equipment and foodstuffs, pay employees’ wages, and rent operation space. Skilled labor is also needed to ensure the proper delivery of quality meals and handling of customers (Alfiero, Giudice, & Bonadonna, 2017). Moreover, a website to create an online platform to advertise the business is important. Additionally, the business needs loyal customers who repeatedly buy from the selling point and refer their friends. Moreover, an organization needs brand awareness that attracts clients to the shop. Lastly, talent is needed to enable management of the production processes and an opportunity to expand the business in the market is required.
Capabilities and Competencies Needed
Some of the capabilities needed for effective competition in the industry include cooking delicious meals, keeping records, creating a friendly atmosphere for consumers, managing inventory, proper planning, managing employees, and decision-making abilities. Similarly, the required competencies are leadership, situational awareness, cooperation, determination, entrepreneurship, and self-knowledge, attention to detail, courage, perseverance, networking, vision, judgment, communication skills, delegating duties, listening, loyalty, customer-oriented, independent learning, persuasiveness, and flexibility. Furthermore, discipline, resistance to stress, financial awareness, critical thinking, and anticipation are crucial in the food market.
Wil’s Grill SWOT Analysis
Wil’s Grill is a street food business that provides meals to various people and events. It offers different types of foodstuffs to its customers in the most hospitable way. SWOT analysis will focus on the business’s internal capabilities that impact its overall operation in the industry. The framework will examine the strengths, weaknesses, opportunities, and threats that Wil’s Grill encounters within its organizational structure. SWOT evaluation would give insight into the ability to perform by revealing areas that require improvement to enhance its viability.
Strengths
Strengths focus on the skills and resources available internally, which Wil’s Grill can use to develop a strong positioning in the minds of its consumers. They allow the firm to expand and consolidate customer coverage. Building on them is essential for the overall growth and performance of the business. They include resources and capabilities which the organization can employ to create a competitive advantage.
Providing quality services and products makes the company attract more loyal customers hence increasing its market coverage. Wil’s Grill also offers different foodstuffs, thus enabling different consumers to find their respective tastes in fast food (Hostetter & Paden, 2018). Furthermore, the business operates in a stable and strong domestic market that facilitates its development with less innovation. Additionally, the firm has a reliable and strong source of capital, which makes it capable of advancing its investment and generating more income for the corporation.
Weaknesses
Weaknesses refer to limitations that Wil’s Grill face that lowers its ability to establish a competitive advantage in the market. Some of the deficiencies include a lack of proper technical skills to advance its operation. The company does not have sufficient talent to boost its communication system; therefore, it lags in relation to its competitors. Furthermore, improper management of its inventory lowers its potential to adjust and accommodate more stock. Based on the case study, it is evident that the return from investment is not adequate; hence it cannot easily launch other activities to diversify the operations (Hostetter & Paden, 2018). Moreover, some customers showed dissatisfaction, according to the online research report in the case study. This would make it lose consumers to the competitors hence reducing its revenue.
Opportunities
These are factors that Wil’s Grill can influence to enhance its market share or adjust areas of operations. Generally, opportunities manifest themselves through increased consumers’ income, improvement in technology, favorable policies and changes in customers’ preferences. The company can use the advancement in technology to use artificial intelligence machines to boost its performance in the industry. It can also use the online platform for advertising and selling its products to consumers. Furthermore, Wil’s Grill can choose to standardize its production to one line of products that generate more profit in the business.
Threats
Threats are factors and developments that undermine the possibilities of growth and advancement of Wil’s Grill Company. They include changes in government policies regarding environmental protection that can impact the overall operation. The business organization should also focus on the effects of new entrants in the market that can interfere with the performance of the industry. In addition, a reduction in middle-class income lowers the number of consumers purchasing the firm’s food products.
Comparison of Resources, Capabilities, and Competencies in Street Food and Catering Segment
Both street market segment and catering offer similar services, that is, meals to customers. To operate effectively, they require adequate resources, capabilities, and competencies. Street food needs a high amount of financial resources to cater to daily operations, including renting the operational space. Furthermore, it is necessary to have employed staff that helps in performing the activities. On the other hand, catering is an off-the-premise service that operates on a given occasion; hence does not entail acquiring shops making it use less finance. Similarly, because of its one-time involvement, it can depend on hired professionals to manage the facilities. They require an equal level of capabilities and competencies for optimal functioning.
Requirement for Effective Competition in Catering Segment
Catering is an on-site food production service that requires a proper reputation in terms of quality foodstuff. Customers can easily observe the processes; hence it is necessary for the management and workers, in general, to enhance cleanliness and cook clean food that satisfies clients’ needs (Teece, 2018). Having competent and skilled employees would also facilitate the ability to compete in the market. Moreover, good leadership would also enable the firm to prosper in the industry.
Aspects Transferable to Catering
Quality foodstuffs, cleanliness, and leadership can be transferred from the street food segment to catering. Customers prefer consuming clean products; hence applying the requirement would guarantee a successful business operation. Furthermore, reliability, access, and creating a friendly atmosphere for clients can also be significant for catering services. Competent workers are also essential for growth and thus should be included in the operation to enhance overall creativity and responsibility.
Gaps in the Market
If John decides to operate catering, he should venture mostly into the provision of organic foodstuffs. Currently, most consumers value their health; hence they have shifted their eating habits towards meals with fewer side effects. Offering such products would enable the firm to attract more customers whose consumption is towards improving their wellbeing. Additionally, it should focus on selling less sugary food to accommodate diabetic individuals.
Acquiring Resources, Capabilities, and Competencies
John can apply for a loan to obtain financial support for facilitating the operations. He can also recruit professional chefs to aid in cooking clean food that meets customers’ satisfaction. Moreover, he offers training services to his workers to equip them with current skills and abilities to enhance their productivity. To achieve core competencies, he can opt to learn and practice to adopt for effective application. Furthermore, he can choose to hire individuals with leadership and management qualifications to help oversee the business’s operations.
Strategic Decision
John should expand his business operation on the street food segment. The market is reliable and active throughout the season hence will enable him to generate more income on constant sales. He should improve his services such as the production of quality and clean foodstuffs to meet customers’ satisfaction. Furthermore, its brand awareness will make it easier for the company to sell easily and realize a bigger profit margin.
Conclusion
To effectively operate a street food segment, adequate resources such as funds, employees, and brand awareness are necessary. Leadership competency and inventory skills are also required to boost productivity. The business organization should analyze its potential and threats to enable it to initiate improvements in necessary areas. The firm’s reputation influences consumers in service delivery; hence a company should ensure they offer foodstuffs that meet the customer’s preference.
References
Alfiero, S., Giudice, A. L., & Bonadonna, A. (2017). Street food and innovation: The food truck phenomenon. British Food Journal. Web.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and cases: Competitiveness and globalization. Cengage Learning.
Hostetter, L. R, & Paden, N. L. (2018). Wil’s grill Harvard business review case study. HBR Publications.
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40-49. Web.