MINISTRY OF EDUCATION AND TRAINING

SAIGON BUSINESS SCHOOL

REPORT

Unit Assessor : NGUYEN THUY MINH CHAU

Student implementation : CAO GIA HUY

Class : C

Academic Year : 1

Ho Chi Minh City, Month 5/2024

 TABLE OF CONTENTS

PROLOGUE ................................................................................................... 1

CHAPTER 1: THEORETICAL BASIS ............................................................ 3

1.1 Overview of business strategy ........................................................... 3

1.1.1 The concept of business strategy ................................................ 3

1.1.2 Functions and roles of business .................................................. 3

1.1.3 SWOT model .................................................................................. 4

1.1.4 Porter’s Five Forces ...................................................................... 5

Chapter 2: The current situation of Goument Bistro ................................. 6

2.1 About the company ............................................................................. 6

2.1.1 Overview of Goument Bistro ......................................................... 6

2.1.2 Problem Analysis .......................................................................... 6

Chapter 3: Proposals and solutions ........................................................... 8

3.1 Solutions for the company to overcome............................................ 8

3.2 Propose specific business strategies ................................................ 8

REFERENCE ............................................................................................... 10
 PROLOGUE

1. Reasons for choosing a topic

Nowadays, with the development of living standards and society,

people, especially for young people or families with busy living standards, often
choose restaurants as their preferred choice. But most of the reason is that
eating out is still faster and more convenient.

Along with that is the current trend, when restaurant chains are
increasing in both quantity and quality, leading to the face of a series of different
problems. Therefore, running a restaurant business is not easy. Restaurants are
an extremely important part of the business. Through the restaurant, it is
possible to earn an extremely good source of profit. Thanks to business activities
in the catering sector, thereby meeting the needs of customers in the culinary
segment, the restaurant has stimulated the consumption demand of customers
quite well.

It is for the above reasons that the report on Gourmet Bistro is made to
help the company solve the problems that it is making mistakes, thereby giving
the best proposed solutions to overcome as well as improve the quality of the
restaurant.

2. Topic structure

Chapter 1: Theoretical basis

The content of chapter 1 provides a general overview of the theoretical

basis of business strategy. From there, it is the basis for applying to the process
of developing and implementing the strategy.

Chapter 2: The current situation of Goument Bistro

Give a brief overview of Goument Bistro as well as outline the

company's operations along with the problems it is experiencing, such as
customer dissatisfaction, inefficiency, or financial problems.

1
Chapter 3: Proposals and solutions

Presenting recommendations helps Goument Bistro come up with more

accurate business strategies. At the same time, provide solutions to the
remaining shortcomings, thereby improving the efficiency of business for the
company.

2
 CHAPTER 1: THEORETICAL BASIS

1.1 Overview of business strategy

1.1.1 The concept of business strategy

Business strategies are strategic initiatives that a company pursues in

order to create value for the organization and its stakeholders, while gaining a
competitive advantage in the market. This strategy is critical to the success of
the company and is necessary before any goods or services are produced or
distributed. [1]

It helps department, departments in the business work together, ensuring

that all decisions support the overall direction of the organization. This is a
condition for businesses to enhance their competitive advantage in the market,
bringing the most optimal business performance. [2]

1.1.2 Functions and roles of business

❖ Functions of business
- Identify Competitive Advantage
- Achieve Business Goals
- Create Value for Customers
Important factors in building a business strategy:
- Business Environment Analysis
- Competitor Analysis
- Customer Analysis
- Resources and Capabilities
- Strategy Selection
- Strategy Implementation
- Monitoring and Evaluation

❖ Roles of business
Building a business strategy is not too difficult but it takes time and
concentration. Managers should prioritize business strategy because it plays an
important role for business growth:

3
 Helping businesses orient their development roadmaps in both the short
and long term.

Helping businesses quickly adapt to market fluctuations ensuring that the

operation process takes place smoothly, stably and develops in the right
direction.

Supporting businesses to exploit and manage human resources,

directing everyone towards a common goal, cohesion, and consensus for that
long-term goal.

Seize opportunities and have thorough plans to deal with difficulties and
risks that may occur in the future.

Establish an operational trajectory in the right direction for the business,

concretizing the goals of the business. Help employees and organizations be
aware of where they want to go and what they need to do to realize their goals.

1.1.3 SWOT model

SWOT stand for Strengths Weaknesses Opportunities Threats. The

SWOT model is used to analyze and evaluate the internal and external situation
of an enterprise, thereby making appropriate decisions to achieve the goals. In
there:

Strengths: are internal factors that are beneficial to businesses, helping

businesses create competitive advantages over competitors. Example: Strong
brand, high-quality products, experienced staff, etc.

Weaknesses: are internal factors that are detrimental to the business,

hindering the development of the business. Example: lack of capital, outdated
technology, high marketing costs, etc.

Opportunities: external factors are favorable for the business, which

can help the business develop. Example: New market trends, technological
developments, changing customer needs, etc.

4
 Threats: external factors that are unfavorable to the business, which can
make it difficult for the development of the business. Example: fierce
competition, regulatory changes, economic crises, etc.

1.1.4 Porter’s Five Forces

A framework used to analyze the competitive landscape of an industry. It

helps businesses assess the level of competition they face and the overall
attractiveness of the market. By identifying active forces, companies can make
informed decisions about their strategy and positioning. Including:

1. Industry competition: The level of competition can depend on many

factors such as the number and size of competitors, the competitive strategy
adopted, the growth rate.

2. Customer power: The business depends on a small number of

suppliers or important suppliers who have control over the main supply, the
strength of the supplier will increase.

3. Threat from potential competitors: Customers have a wide range

of options, easy switchability, or high negotiation power, Customers will be strict,
make requirements for price and quality of products/services. This can put
downward pressure on prices and limit business profits.

4. Threat of substitute products/services: There are many

alternatives that can easily replace the current product and provide higher value.
Businesses will be at risk of losing a large number of customers and decreasing
revenue.

5. Threats from potential competitors: Potential competitors are a

barrier factor for businesses when they first join. The fewer new competitors, the
more it will affirm the position of businesses in the industry and reduce the
pressure on businesses.[3]

5
 Chapter 2: The current situation of Goument Bistro

2.1 About the company

2.1.1 Overview of Goument Bistro

• Native name: Gourmet Bistro

• Founded year: 2010 in the vibrant city of San Francisco, California
• Branches: 10 branches in San Francisco, 5 branches in Seattle, 5
branches in Los Angeles
• Number of Employees: 150 employees across its branches

2.1.2 Problem Analysis

Gourmet Bistro faces business losses: Typically, for the first time, a
branch in Los Angeles had to close because of loss-making operations for
several months, and some branches barely broke even.

Exempli Gratia: Bach Hoa Xanh used to lose money and had to close
400 stores with weak business.

Picture 1. Loss-making business board of Bach Hoa Xanh. Source:

https://vnexpress.net/lo-7-nam-lien-tiep-bach-hoa-xanh-tim-cach-chuyen-
minh-4679979.html

The main problem that led to Gourmet Bistro's losses was poor customer
experience, especially in the last months of the year with sales down 30%. The
reason for customer dissatisfaction when experiencing is slow service,

6
correcting the customer's order also requires the intervention of management
and incorrect orders.

Another branch in San Francisco, a cold meal takes 15 minutes to solve

because it requires permission from the manager.

Exempli Gratia: White Palace is one of the wedding restaurants that

provides poor service to customers and the problem of correcting orders requires
the intervention of management, and many times the orders are incorrect.

Picture 2. White Palace. Source: https://forbes.vn/white-palace-noi-cua-long-hieu-

khach-va-tinh-than-duy-my

In addition, the marketing department at Gourmet Bistro has been

working incoherently with the campaign team on advertising campaigns,
affecting store branches not to prepare enough ingredients, leading to a
decrease in the overall effectiveness of the campaign.

Exempli Gratia: Vinamilk's marketing department used to not coordinate

with the shipping team, leading to delays in redeeming gift cards and customers
having to wait a long time to receive gifts.

7
 Chapter 3: Proposals and solutions

3.1 Solutions for the company to overcome

The problem of poor customer experience because of service delays,

incorrect orders, ordering the wrong dishes, and cold foods that need to be
reheated is solved for too long. All problems of handling customer needs must
be managed, causing service delays.

To overcome these problems, it is necessary to change the work of

employees and the management of branches. Customer needs less intervention
from management so that customers can be served quickly

➔ This has been proven by SWOT theory, each person has a different
strength, so it is impossible for one expert to interfere with another because it
will affect the workflow

The problem of the marketing department not working closely with the
operations team makes the lack of communication lead to serious problems
during the campaign implementation.

➔ To handle this problem, the marketing department needs to work

more closely with the operations team to bring a strong campaign and increase
sales for the company. The theory of the connection between departments in the
enterprise proves the above solution

3.2 Propose specific business strategies

• Product/service development strategy: Focus on research and development

of new products/services to meet market demand by improving hot dishes
for longer and fast customer service

• Management Strategy: Train and develop human resources to improve the

capacity and skills of employees.

Example:

- Apple: continuously launches new iPhone products with breakthrough

designs and advanced features, attracting a large number of loyal customers.
8
 Picture 3. Outstanding products innovated by Apple year by year. Source:
https://126.vn/tin-tuc/tin-cong-nghe/cung-nhin-lai-toan-bo-lich-su-cac-dong-iphone-
da-ra-mat-tu-truoc-den-nay/

- FPT Shop: building an effective corporate governance system, applying

advanced technology to sales management and customer care.

9
 REFERENCE

[1] Michael Boyles, 20 OCT 2022, WHAT IS BUSINESS STRATEGY & WHY IS
IT IMPORTANT? [online]. Harvard Business School Online. Available from:
https://online.hbs.edu/blog/post/what-is-business-strategy[Accessed 6.15.2024]

[2] No date, what is a business strategy? Principles and way of construction

[online]. Pace institute of management. Available from:
https://www.pace.edu.vn/tin-kho-tri-thuc/chien-luoc-kinh-doanh [Accessed
6.16.24]

[3] No date, what is a business strategy? Principles and way of construction

[online]. Pace institute of management. Available from:
https://www.pace.edu.vn/tin-kho-tri-thuc/chien-luoc-kinh-doanh [Accessed
6.16.24]

10