South Beauty Essay

Submitted By Osman050792
Words: 2073
Pages: 9

South Beauty SWOT Analysis

Strengths
Weaknesses
Caters for a larger demographic by subdividing the South Beauty group into 3 brands. South Beauty (targeted at upper-middle class business people), LAN Club (upper-class dining) and SUBU (for health-conscious youth)
An owner with a firm business and culinary background that can incorporate a balanced mix of meeting business objectives and providing a state of the art dining experience
Understanding of the culinary market in China allows for translation into correct market selection and expansion.
Strong emphasis on ambience and interior design within the restaurants which is widely neglected in the Chinese dining experience. The Chinese/Western blend of design appeals to the shifting trend of consumer culture.
Innovative and experimental dish structure that incorporates diner involvement in the construction of the dish, adds to the dining experience
Visually tactful dining
High level of employee satisfaction and loyalty. Great commitment to the brand usually reflects a highly quantity and quality of output. Staff members from A Lan restaurant moving to other business ventures involving Zhang Lan.
Separate divisions in high-end functions and restaurant operations with a high level of specialisation in each. Many firms have an amalgamation of both leading to chaotic management.
An implemented company-based model allows corporate level objectives to be met rather then those solely of individual restaurants under the South Beauty Group.
High level of R&D in dish creation, and shifting consumer needs
Consumer relations through IT and direct and personalised promotional communications
Effective standardisation system
Large range of dishes (380 plus) that focus on predominantly Sichuan cuisine. Too much selection when viewed from the perspective of the worlds most successful restaurants.
High reliance on executive chef, less distribution of responsibility with standardised menu
Over reliance on Sichuan food
Opportunities
Threats
Growing average annual income of population in China
With the good-will associated with the catering acquisition of the Chinese Olympics, South Beauty has the potential to attract contracts for other high capacity event within China and worldwide.
Cemented as a high quality brand in architecture, the sale of kitchen design products could be a potential sub-brand.
In flight catering in business and first class is common in legacy airline carriers, the explored cooperation should be pursued as a potential profit developing form of catering.
High end supermarkets could be a potential area for for frozen delicacies made by South Beauty, and the implemented standardisation program would suit this form of additional business.
Internationalisation in cities of high socio-economic demographics and cultured taste could be prospective profit making ventures
Development of western food menus?
Creation of menus in other Chinese cuisines that are also popular?
Entrance into hot-pot chains due to rapid growth in popularity

The possibility of untrained or under-qualified individuals managing a restaurant in the case where an executive chef leaves the company.
Imitability of the company has proven to be quite simple in the brand logo and dish replication. Much to the extent that people have been complaining to the true South Beauty about the faults of their copy companies.
Growth of western fast food and cuisine in China could potentially shift the tide in consumer behaviours and preferences. As China develops and becomes more work savvy, time may be of the essence and fast food a greater option.
Other companies are replicating the franchise of high end restaurants through standardisation. South Beauty's innovation may become monotonous if continuous innovation is not developed. What we are able to draw from a SWOT analysis are the key areas in which South Beauty should maintain, change, add or prevent within their company to further the corporation and develop greater…