Exploring Smes

Exploring Smes

Individual Assignment of BUS 203 ЎV Exploring SMEs

Introduction

The aim of this assignment is to identify an issue or problem situation in a named organization they have access to and the chosen organizationЎ¦s name is ЎҐShea Wong Biu RestaurantЎ¦ has been established in the year 1982. A brief history background about the owner ЎҐLiЎ¦ as the following:

LiЎ¦s originated career was in the 60Ў¦s as a worker of mechanic. Then at the year 1972 he has begins his lifetime career in food industry. After 10years of experiencing, he had his very first SME established - ЎҐShea Wong Biu RestaurantЎ¦ in a sole trader business, an old fashion but high quality company. Since he has inflexible determination in quality and uniqueness, the voice-over has been increasing rapidly. He is more then a chief as he could fit in all types of duty in the company. No credit history from bank when they first launched the company as their very first capital was from Li and borrowed from relatives. After a period of 3years time, he has managed to expand the size of the restaurant in double. Then within the next 2years, another two branches were launched both without the need of borrowing money from bank.

2. Literature review on concepts to strengthen my findings and analysis when answer the following questions:

2.1 Describe and evaluate the organizationЎ¦s strategic management

A Strategic plan for 2005:

1. A clear vision and translate it into a meaningful mission statement.

LiЎ¦s visions for the restaurant are committed to unique, quality, service and cleanliness. The purpose is to focus customerЎ¦s attention and efforts on the same target, provide nice food to satisfy customerЎ¦s wants.

2. The companyЎ¦s strength and weakness.

Strength ЎV Unique types of food they have, Li even first imported some seafood and game meat to Hong Kong; the owner Mr. and Mrs. Li works almost everyday, only have day off with maximum twice a month, this can encourage the employees to look upon them as they work really hard; quality control were done by Li, in charged in person therefore less mistake would occur; financially no bad credit history; a long-history they have, praises were made by loyalty customers and press releases.

Weakness ЎV In personal the owners are getting older and less work could be deal with, the world is changing rapidly but he is living in his old fashion style; financially loans are getting heavier each year; production were done by employees but lack of communication between them therefore could not cooperate well; lack of marketing concepts as the owner works in the restaurant almost everyday so could not get much change to socialize and try somewhere elseЎ¦s restaurant in order to analysis the market; price of products are in low range but salary are in high range; slowly and fewer development; the whole organization, the average age of employees are 55 which are not very productive even though they got experience.

3. Opportunities and threats facing the business scan from the environment for significant.

Opportunities ЎV Often press release for free since their products are very special and tasty, this could increase their popularity, become more famous and achieve brand expansion; its location were close to MTR and multi bus stations, shopping malls such as ЎҐApmЎ¦ and mega commercial buildings, therefore YAN LAU DOU and easy to get there.

Threats ЎV Competitions surrounding, the whole area are full of similar kind of restaurants; serious disease spreading such as SARS and H5N1 both by human and animals; economy are down, people would spend less in consuming.

Around 2003, SARS has demolished Hong Kong and most industry has been affected especially in food and beverage. Li is also a specialist of game meat and his well-known products are snakes, venison and wallaby etc. Since all of these animals are considered as ЎҐdisease carrierЎ¦, the restaurant did not make profit at all and had a lost in capital for over a period time of 6months. Although they still survives afterwards but this has lead to their first loan borrowed from the bank and Government.

4. Key factors for success in business identified.

Creativities; hard work ship between every staff; well servicing; updated in marketing; honesty and well management in the organization; the creation of a unique, innovative, entertaining, mid-scale atmosphere that will differentiate them from the competition; execution of their primary goal to serve nothing but the highest quality food at unbelievably