...2011 India Food Services Story 2011 Contents Foreword............................................................................................................................................................................................................... 2 Indian Food Service Industry - Sector Highlights................................................................................................................................................... 3 What Drives the Growth of the Industry? ............................................................................................................................................................... 4 Demand Side Drivers – The Demographic Profile of the Indian Consumer Segment ........................................................................................ 4 Supply Side Drivers – Industry Trends Encouraging Growth ............................................................................................................................. 5 Transition Phases ................................................................................................................................................................................................. 6 Structure of the Industry ........................................................................................................................................................................................ 7 Challenges ...............................
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...McDonald’s, a global leader in the fast food industry, remote environment contains many of these factors. Economic Factors: Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability (Kotler, 2000). Changes in income and changes in consumer spending patterns can affect the industry. McDonald’s and other global competitors also face different scale of tax and revenue measurement in different countries. International currency fluctuations especially in global food distribution are also a factor. Social Factors: Current customers are much more health conscious than previous generations and thus are switching to healthier and greener food like salads. In addition, customers are trying to associate themselves with good organizations that they feel are concerned for the environment. Fast food shops are now trying to improve their brand image by portraying their concerns for the environment. Political Factors: Even in stable countries with no political unrest, political trends may have a significant impact on business (Jain, 2004). Different governments may focus on separate laws and enforce them more than other countries. New legislation has also played a major role in the fast food industry. There are many laws and regulations in force for the food industry. The FDA continues to monitor food quality closely. Also, the fast food shops have to maintain a minimum level...
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...pressure cooker: Industry revenue rises but competition threatens to constrain growth IBISWorld Industry Report H5731a April 2011 Restaurants in Australia Suzannah Rowley 2 2 2 2 2 About this Industry Industry Definition Main Activities Similar Industries Additional Resources 16 Demand Determinants 17 Major Markets 17 International Trade 18 Business Locations 26 Revenue Volatility 27 Regulation & Policy 27 Industry Assistance 29 Key Statistics 20 Competitive Landscape 29 Industry Data 29 Annual Change 29 Key Ratios 20 Market Share Concentration 20 Key Success Factors 21 Cost Structure Benchmarks 22 Basis of Competition 23 Barriers to Entry 23 Industry Globalisation 3 4 4 4 6 9 Industry at a Glance Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook 30 Jargon & Glossary 12 Industry Life Cycle 24 Major Companies 25 Operating Conditions 25 Capital Intensity 26 Technology & Systems 14 Products & Markets 14 Supply Chain 14 Products & Services www.ibisworld.com.au | (03) 9655 3881 | info@ibisworld.com www.IbISwORLd.COM.Au Restaurants in Australia April 2011 2 About this Industry Industry definition This industry includes restaurants that serve food and beverages on the premises. The report covers the following business types: licensed restaurants, BYO restaurants, licensed and BYO restaurants, and unlicensed restaurants. This industry excludes takeaway food services, restaurant and...
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...business plan for “Mike’s Trucking Service”, there is evidence of all of these factors. Strengths When looking at the strengths in Mike Smith’s business plan, the first one that is noticeable is simply his motivation. He does not aspire to be a decent trucking company. Mike wants to be one of the largest trucking companies in the United States. Another significant strength is the found in the customers he looks to serve. Mike’s will serve four different market segments – the food industry, the computer industry, the retail industry, and an “other” segment to help catch the rest of the customers. Mike Smith’s experience as a 15 year industry veteran will also be a strength to his business. His extensive knowledge will allow him to better understand the industry and what is needed. Weaknesses Any business that is just starting out is going to be at its weakest point. That being said, Mike’s Trucking Service’s main weakness is their focus on the food industry. While the industry is currently stable and therefore favorable, any slowdown in the food production could end up in the business taking a turn for the worst. Luckily, Mike Smith is able to mitigate this risk by branching out and diversifying the business to include other industries as mentioned above. Another weakness of starting a business from scratch is that there is no clientele built up. Mike’s Trucking is having to try to convince people to give them a chance and in an industry as big as trucking, that is not always...
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...After researching Aramark Dining Services’ website, and discussing our own experiences, we discovered that Aramark uses cost leadership to operate. The cost leadership strategy is beneficial to a company because it has the lowest cost in the industry. The dining service goes through rapid change and has specific ways in which they function on a daily basic. Due to elements such as the strategic target, basis of competitive advantage, product lines, production and marketing emphasis, the strategy a company chooses to have is relative to its goals and characteristics. The only true way to understand the strategies of two companies is through experience. After spending much time at Daly’s, the Rider University cafeteria, we concluded that there are definite traits of the company that directly correlate to the aspects of cost leadership. There is a broad section of the target market that Aramark focuses on, which is the Rider University student body consisting of both graduates and undergraduates. Before Aramark Food Service, Campus Dish had a different way of food distribution, but changed it to lower costs in the industry. Aramark, like almost all food services, attempts to keep their costs down. For instance, in the beginning of 2010 we believe that there was a large amount of food wasted. Even twenty minutes before closing time employees would be continuing with the preparation and cooking of food. It was not smart to continue to cook and serve food at this time because there were...
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...Executive Summary Fresh aroma is a restaurant establishment focusing on healthy, nutritious to the local downtown area. Fresh Aroma Restaurant,Based on this distinct menu, Fresh Aroma Restaurant will follow a differentiation strategy that will provide unique service. The keys to success for Fresh Aroma Restaurantwill be repeat business, an excellent location convenient to downtown businesses and its unique twisted cuisine. The restaurant will be a Partnership business. Entering into this market will not be easy, the industry is highly competitive, with periodic overcapacity, low margins, and low entry/exit barriers. In addition, there is large number of substitutes, and the suppliers to this market have a great deal of power. In order to overcome these issues, the restaurant has acquired an excellent locality in the downtown area and intends to provide a suitably upscale environment to draw in the company's main target market segment, the business professionals. The restaurant will seek to provide these customers with the maximum number of services to create the greatest sales volume during the company's peak hours of operation.The restaurant will have a comprehensive marketing, advertising, and promotion campaign that will maximize word-of-mouth marketing and will consist of radio, printed material, billboards and discounts.The restaurant has planned to offer its products at a slightly higher price than that of its competitors. This is to provide credibility to its clients...
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...Introduction Quality is defined as the distinction of a product or services (Evans, 2011). The American National Standard Institute (ANSI) defines quality as the totality features of a product or service which satisfy given needs. The current market has higher demand of quality products and services due to higher buying power. The increasing buying power caused consumers to be less price-sensitive and prioritizes quality. Organisations find quality to be a crucial matter in determining their success. Hence, many organisations have moved from producing low cost goods into producing quality goods to meet with the market demand. Meeting quality expectations of the guests is decent, but arguably insufficient. Exceeding it however, guarantees customer loyalty, returned business and less complains. Evan (2011) added that quality, business stability and customer’s loyalty needed to be aligned for a success business. Quality in manufacturing industry focuses on technical issues such as equipment reliability, inspections and minimal defects. On the other hand, quality in service industry focuses on the interactions between the provider and customer which do not directly produce a physical product. The service industry picks up the importance of quality later than the manufacturing industry. Evan (2011) mentioned that the 80% workforce in the United States is contributed by the service industry. Body According to Das and De Groote (2008), 75% of the one hundred biggest hotels are...
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...2011 2011 India Food Services Story Contents Foreword............................................................................................................................................................................................................... 2 Indian Food Service Industry - Sector Highlights................................................................................................................................................... 3 What Drives the Growth of the Industry?............................................................................................................................................................... 4 Demand Side Drivers – The Demographic Profile of the Indian Consumer Segment ........................................................................................ 4 Supply Side Drivers – Industry Trends Encouraging Growth ............................................................................................................................. 5 Transition Phases ................................................................................................................................................................................................. 6 Structure of the Industry ........................................................................................................................................................................................ 7 Challenges .......................................
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...Assessment #1: US Foods was founded in the 19th century by several entities and five generations of employees. Monarch Food is one such entity and is linked to a Dubuque, Iowa company that sold provisions for wagon trains heading west in the 1850’s. John Sexton and Company is another entity whose success began as a merchant for tea and coffee in Chicago in 1883 (http://www.usfoods.com). Today, US Foods is one of America’s leading food distributors, servicing every area of the industry, from small restaurants to healthcare, employing about 25,000 people working in over 60 locations nationwide. Their success is based upon their dedication to their customers, through integrity, innovation and teamwork. With a mission to “transform the food service industry by creating a superior food proposition and delivering solutions for customers,” (http://www.usfoods.com) US Foods is able to carry over 350,000 products, establishing relationships with trusted brands, and employing food professionals that are committed to helping customers become more successful. The distribution segment of the food industry began growing in the early 1970’s from specialty distributors to a “one-stop-shop” concept aimed at acquiring additional customers and targeting larger operators by offering them a convenient way of purchasing and acquiring the goods and services necessary to productively run their operations. For US Foods to rank as one of the leaders in food distribution, it needed to...
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...1. The following appeared as part of an annual report sent to stockholders by Olympic Foods, a processor of frozen foods. “Over time, the costs of processing go down because as organizations learn how to do things better, they become more efficient. In color film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day service in 1970 to 20 cents for one-day service in 1984. The same principle applies to the processing of food. And since Olympic Foods will soon celebrate its twenty-fifth birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profits.” Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would make it more logically sound, and what, if anything, would help you better evaluate its conclusion. Citing facts drawn from the color-film processing industry that indicate a downward trend in the costs of film processing over a 24-year period, the author argues that Olympic Foods will likewise be able to minimize costs and thus maximize profits in the future. In support of this conclusion the author cites the general...
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...the industry to be analysed? Under the frozen food industry it would be considered broad for it is not limited to just one style of food type the provide:- 1 Savoury 2 Dessert 3 Fruit 4 Halal Is it Global? Partially. Whilst the majority over 98% over sales are within Australian which would define it as narrow on a global scale, it does export to USA but has had limited success with 1% of sales resulting from the USA. It has developed Halal products with the explicit intention of exporting into Asia and therefore the intention of becoming a global and broad company. PFL is an Australian company founded in Australia in 1966 and continuing with headquarters and production facilities in Bairnsdale Victoria. It is also listed on the ASX. Industry value chain Develops and produces its products in Bairnsdale Victoria. Does not directly sell to the end user the consumer. To the company it has to end users: 1. The retailer ie the shopmarket (PFL defines this as In-House or where products are bought by retailers for home consumption) 2. Food service outlets ie sporting venues or cafes (PFL defines this as Out-of-home or where the products are bought for immediate consumption) Product design → production → distribution → Merchandising advertising retailing shops & sports venues → consumer How would you define the industry to be analysed? Under the frozen food industry it would be considered broad for it is not limited to just one style of food type...
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...VIETNAM: FOOD PROCESSING In the past 15 years Vietnam was grown from a net importer of food to a substantial exporter. It is the world's second most important exporter of rice, and the world's largest coffee exporter and producer of cashew nuts. Tea, peppers, nuts and spices have become important exports. Rice and coffee account for about half of agricultural export revenues. Soybeans, cashews, sugar cane, peanuts, bananas, poultry, fish and seafood are growing. Vietnam's agricultural exports are vulnerable to international price fluctuations because these exports are largely commodity based. Vietnam's agricultural fishing and forestry industries together produce over US$3 billion of goods annually. Roughly 55% of Vietnam's workforce is employed in agriculture. Commensurate with economic development, the sector had gone from a 25% share of GDP to less than 20% in 2008. Farm products accounted for 22% of the country's income in 2008, down sharply from 50% in 2005. Finally 17% of all of its exports are related to the agricultural, fisheries or food processing industries, down from 55% in 2006. Despite the trend, agriculture will continue to be very important as it raises the productivity of the 70% of Vietnam's population that lives in rural areas. Traditionally, Vietnam has protected agricultural market with regulations and high tariffs. Vietnam's WTO accession reduced tariffs and led to sharp increases in imports ($7.3 billion in agricultural goods by 2008). Key agricultural...
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...perspective and the future prospective of profitability of the company. The food service industry is experiencing a steady growth in demand amongst the consumers in Singapore. A microenvironment analysis shows that technological advancements have changed the industry in a drastic manner. Industry analysis using Michael Porter’s five forces shows that the strongest force that affects industry profitability is the threat of substitutes. The food service industry faces threats from a whole range of restaurants, fast food chains and locally owned food businesses. The market is segmented into the various age groups, each have to be catered for. Different marketing strategies can be implemented to tap into the different segments. The obstacle facing TRCS is the fast paced changing scene in the industry by consumers and industry players alike. Consumers changes tastes and habits very quickly. Industry players are investing heavily in reinventing themselves to have a bid on the market share. Competition in the industry are held high as there are many established players which are offering promotions which are competitively priced and strategic locations which are near the consumers. With different promotions already available to the public, we are still able to tap into the market. We are able to differentiate ourselves through value added activities such as catering and quality services at the restaurants. This allows us to have an edge over the rest of our competitors...
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...Patties Foods Ltd Analysis Start by understanding the external environment discussed in the text—the factors that affect both the growth and profitability, and the level of competition in the industry (refer to Module 2). How would you define the industry to be analysed? Is it global? Is the organisation Australian or based overseas? Can you make any inferences about the industry value chain from the Text? What industry key product and services segments are mentioned? Are you able to identify the stage of the industry life cycle from the facts given? Patties Foods Ltd is in the frozen food industry. It is an Australian organisation. Industry segments: frozen savoury – meat pies, sausage rolls, cheese and spinach rolls, pasties, quiches dessert – fruit pies, waffles, crumbles, crepes fruit products – frozen whole fruits, processed fruit products retailers – in-home foodservice outlets – out-of-home exports – less than 1%, US and Asia Frozen food sales increased during the recession as most consumers chose eating at home over dining outside due to reduced household budgets. In addition, most consumers feel frozen foods help in cutting expenses as wastage is less and trips to the supermarket are reduced. Frozen foods are also easy to prepare. The frozen food industry is best described as being in the maturity and moving into shake-out. Characteristics of maturity: Characteristics of shake-out: PFL has grown through acquisition and became a mojor supplier...
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...Agro Industry Scenario | An Introduction The agro industry is regarded as an extended arm of agriculture. The development of the agro industry can help stabilise and make agriculture more lucrative and create employment opportunities both at the production and marketing stages. The broad-based development of the agro-products industry will improve both the social and physical infrastructure of India. Since it would cause diversification and commercialization of agriculture, it will thus enhance the incomes of farmers and create food surpluses. The agro-industry mainly comprises of the post-harvest activities of processing and preserving agricultural products for intermediate or final consumption. It is a well-recognized fact across the world, particularly in the context of industrial development, that the importance of agro-industries is relative to agriculture increases as economies develop. It should be emphasized that ‘food’ is not just produce. Food also encompasses a wide variety of processed products. It is in this sense that the agro-industry is an important and vital part of the manufacturing sector in developing countries and the means for building industrial capacities. | | | The agro Industry is broadly categorised in the following types: (i) Village Industries owned and run by rural households with very little capital investment and a high level of manual labour; products include pickles, papad, etc. (ii) Small scale industry characterized by...
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