Strategic
Review
June 4th
10
Student ID’s:
182520
182512
504214
182515
Submitted to:
Mr Roger London
MGT460 Strategic Management
In agreement with “César Ritz” Colleges
In partial fulfilment of the requirements for the Degree of Bachelor in international Business in Hotel and Tourism
Management
S. Blau, M.Forch, F. Hidayat, A. McKenzie
University Centre “César Ritz”
Englisch-Gruss-Str. 43
3900 Brig
Pascal Berger
Restaurant Alpin Han
Kantonsstrasse
3940 Steg
4th June 2010.
Dear Mr Pascal Berger,
Re: Briefing Paper 4 – Strategic Competitiveness
In response to our interview, Monday, May 17th 2010, please find enclosed the strategic
competitive analysis for Han Mongolian Barbeque as part four of your business’ strategic
review. The paper details the overall businesses capabilities and manageability, identifying
Han’s stakeholders, market and situational position.
The paper elaborates further, through analysis of corporate matrixes; Internal/External Matrix,
Boston Consulting Group Matrix and Internal External Matrix. Additionally a SWOT – factor
analysis is completed.
The strategic competitiveness review is the final application of this evaluation, which
ultimately summarises the processes, performed providing analysis conclusions and
recommendations.
Thank you once again for you cooperation, we wish you all the best for your future business
endeavors. Please feel free to contact us, should you have any further questions.
Best Regards,
S. Blau
M. Forch
F. Hidayat
A. McKenzie
Disclaimer
The following briefing paper for Han Mongolian Barbeque Steg is an analysis performed by
students of University Centre “César Ritz” in partial fulfilment of the requirements for the
Degree of Bachelor in International Business in Hotel and Tourism Management.
The content enclosed is a voluntary association of the students and Han Mongolian Barbeque,
Steg working towards developing a common resource of knowledge and business insight.
Please be advised that this is a student project and used for learning development purposes.
The analysis and recommendations provided is therefore relatively limited and thus applicable
with no liability to the school or students involved.
All published data and information are strictly for informational intentions. The authors
confirm that information will only be available to the business owner as well as the lecturer,
therefore the paper certifies a high level of confidentiality; copies will be pertinent for
education purposes only.
Moreover, business decisions should not only be drawn out of the decisions made in this
report. Thus no reliance should be placed on any of the information and opinions unless
confirmed by qualified professionals.
Brig, June 4th 2010
S. Blau
M. Forch
F. Hidayat
A. McKenzie
Table of Contents
Executive Summary ................................................................................................................................. 6
1.0 Scope ............................................................................................................................................. 6
2.0 Key Findings ................................................................................................................................... 6
2.1 External...................................................................................................................................... 6
2.2 Internal ...................................................................................................................................... 7
2.3 Stakeholders .............................................................................................................................. 7
3.0 Implications ................................................................................................................................... 8
3.1 External...................................................................................................................................... 8
3.2 Internal ...................................................................................................................................... 8
3.3 Stakeholder................................................................................................................................ 8
4.0 Conclusions & Recommendations ................................................................................................. 9
Competition ..................................................................................................................................... 9
Product life cycle ............................................................................................................................. 9
Stakeholders .................................................................................................................................... 9
Development of environmental sustainability .............................................................................. 10
Authenticity of cuisine................................................................................................................... 10
Management Review ............................................................................................................................ 11
Environmental Assessment ............................................................................................................... 11
Competitive Environment ................................................................................................................. 11
Competitor Analysis .......................................................................................................................... 12
Stakeholder analysis .......................................................................................................................... 13
Capability and Strategic Competitiveness Assessment ..................................................................... 15
Sales and Marketing ...................................................................................................................... 16
Financial Resources ....................................................................................................................... 16
Human Resources .......................................................................................................................... 16
Strategic Choice ................................................................................................................................. 17
Corporate level strategy ................................................................................................................ 17
Business level strategy .................................................................................................................. 18
References ............................................................................................................................................. 18
Source Documents .................................................................................... Error! Bookmark not defined.
Appendix................................................................................................................................................ 19
SWOT ................................................................................................................................................. 19
I/E Matrix ........................................................................................................................................... 20
BCG Matrix ........................................................................................................................................ 21
I/E Strategy Matrix ............................................................................................................................ 23
Appendix2 – BP3........................................................................................ Error! Bookmark not defined.
Appendix3 – BP2........................................................................................ Error! Bookmark not defined.
Appendix4 – BP1........................................................................................ Error! Bookmark not defined.
Executive Summary
1.0 Scope
This final paper is going to assess the strategic competitiveness of HAN Mongolian Barbecue
in Steg-Gample, Switzerland. It aspires to support and assist the owner in his decision making
process as well as giving closer insight to his business from an outside group which is not
directly involved in his business.
The whole study has been based on personal interviews, market research and analysis and
current industry data, so that the findings are valid and up-to-date. Furthermore, the team
applied and gathered all relevant knowledge to provide the owner applicable and helpful
information.
This paper contains the key-findings of the internal, external and stakeholder analysis, the
implications arising from those key-findings and conclusions as well as recommendations. An
interpretevist research philosophy is chosen, due to the fact that the group can be seen as an
independent observer.
Limitations are given due to the fact that all findings are based on the previous researches and
on a single interview.
2.0 Key Findings
2.1 External
 National chains established in remote locations (Olsen & Zhao, 2001)
 Global capital demands influence the business’s financial capabilities (Olsen & Zhao,
2001)
 Increasing influence of technology on consumer decision making (Olsen & Zhao,
2001)
 Tight labor market limits business growth (Olsen & Zhao, 2001)
 Trend towards bio food consumption (Olsen & Zhao, 2001)
 Schengen agreement allows free movements of goods, services, labour and capital
(resources) (Appendix4: BP1: AppendixA: PESTEL)
 Han is currently in the growth phase of the business life cycle as sales are still
climbing, and moderate market share and competition is visible. (Appendix4: BP1
AppendixD: Life Cycle)
 The property has two restaurants within its strategic group; Rothis Western City and
Buffet de la Gare. Each offers similar facilities and marketing advocacy techniques,
however differentiated through menu type (Appendix4: BP1 AppendixE Strategic
Group Assessment)
 Han currently does not promote itself through ‘green’ practices however it is important
to recognise its developed through the influence of the media and as a result “Tourism
businesses now, simply cannot afford not to be associated with sustainable operations
because fewer and fewer tourists want to stay at non-sustainable marketed places”
(Appendix4: BP1 Key Findings: Mintel, 2010, p. 6)
2.2 Internal
 Certified restaurant manager adds credibility to the business (Appendix3 BP2
Appendix D Resource Audit Analysis)
 The unique selling point can be defined through the variety of ingredients, cooking
and service style (Appendix3 BP2 Appendix C&E)
 Personalized and customized service is provided in terms of service delivery and
cuisine offered. However, the cuisine is heavily adapted to local environment
(Appendix3 BP2 Appendix E Core Competency Analysis)
2.3 Stakeholders
 Complex stakeholder expectations lead to the imbalance of HAN’s ability to align
strategically (Appendix2 BP3 Appendix B Stakeholder Objectives and Expectations
Analysis)
 The family is the most influential in the businesses success because of financial
groundings (Appendix2 BP3 Appendix C Power Interest Map)
 The restaurant and the club are well aligned in strategic relatedness, maintaining
positions in the heartland business segment (Appendix2 BP3 Appendix D Relatedness
Matrix)
 Relatedness of both the chalet and the driving school strategic business units is
questionable from the manageability reference point (Appendix2 BP3 Appendix D
Relatedness Matrix)
3.0 Implications
3.1 External

Increase of demand from the global capital and in the competitive environment results
in the businesses instability in power over customers

Limited use of technology by HAN reduces competitive advantage and commercial
impact

The increase of opportunities in the knowledge industries is resulting in vacancies in
the food industries therefore an uneducated workforce applies

Bio food consumption results in higher costs of supplies

Greater control of value chain forces due to Schengen agreement

HAN is slowly reaching maturity phase in the product life cycle, which inevitably
results in stagnation of sales

The strategic group is not seen as direct competition; this ignorance might cause harm
in the future

The development of environmental sustainable practices will in effect respond to
environmental challenges and therefore sustain competitive advantage
3.2 Internal
 High education provides a business minded orientation
 Diversified products offered by the business reduce the opportunity to create new
products to grow in the product life cycle
 Due to high personalized services the authenticity of the Mongolian cuisine is
eliminated
3.3 Stakeholder
 As a result of the complexity of stakeholders the mission, vision and value of the
business’s are limited in their compatibility
 In account of family relations the business is highly influenced by varied insights and
therefore leading to limited and complex strategic choices
 Balanced manageability of resources regarding the restaurant and the club gives rise to
growth, development and high returns
 Questionable relatedness of the chalet and driving school, confuse business structure,
resource usage and provide uncertainty of relative manageability and corporate
strategic direction
4.0 Conclusions & Recommendations
From analyzing Han Mongolian Barbecue in the external and internal environment, along
with their stakeholders expectation, it has enabled us to identify certain changes that could be
made for further effective and efficient improvements of the business operations.
We were able to obtain deep insights of the business and find out several key determinants
that make the business have a holistic viewpoint. The competitive advantage and core
competencies were discovered, however, lacking in strategic planning and therefore were not
fully engaged in achieving the optimum profitability of the business.
The following sections will describe the key issues that should be reconsidered in HAN’s
strategic direction.
Competition
Due to the fact that the restaurant manager does not view key competitors as actual
competitors, disables their ability to strategically manage the business in their external
environment. However, by considering that Rothis Western city is a key competitor, will
enable the business to have a deeper insight to facing challenges and increasing teir core
competencies parallel to their competition.
Product life cycle
Although HAN offers a wide range of products in the business, we believe different or
creative innovations such as hosting private events or affiliating packages could extend the
growth phase in the product life cycle. By offering new products continuously, this will
enable them to achieve sustainable competitive advantage through customer retention. A
possibility of altering the menu, could be taken into account to attract future prospects and
keep the interest of loyal customers. Along with the menu alteration, prices should be adapted
accordingly and given more options of buffet selection.
Stakeholders
Clarifying the stakeholders expectations and prioritizing accordingly, will enable HAN to
achieve a more aligned direction of the missions, vision and goals of the business. We advise
to create a hierarchical system that analyses the power of each stakeholders and their
expectation. This will enable the business to establish a level of balance referring to all view
points of the stakeholders.
Development of environmental sustainability
We believe HAN should consider using an environmental sustainable method in approaching
their business practices. Such methods could include an agreement with local suppliers to
purchase bio products. This will increase the creadibility of HAN’s business in social
responsibility. By doing so, HAN will gain an improved reputation amongst the local
population. With this in mind, it will have potential for the franchisor to build on this
viewpoint and thoroughly implement a Corportate Social Responsibility program in the chain
of Its1World. Not only will this result in environmental sustainability, but in economical,
social and technological.
Authenticity of cuisine
Although, Han is trying to adapt to the local mindset of providing the commercial barbecue
and grill products, it has reduced the authenticity of the Mongolian Cuisine concept. This will
decrease the credibility of a themed restaurant. However, what Han can do is distinguish their
food choice more apparent for customers to choose of what cuisine they want to consume. We
believe if HAN is trying to adapt to the local consumers, HAN should maintain the
authenticity by providing an educational cultural experience for its guests. This will enable
HAN to incorporate the Mongolian culture along with the Swiss style of cuisine.
To conclude from the research that we have obtained, HAN’s strategic planning should be
evaluated and reconsidered. By taking into account the recommendations provided, it will
allow HAN to have a clearer vision of future direction. Conclusively, according to the I/E
Matrix, HAN is currently positioned in the hold and maintained strategy. However, if our
insights and recommendations are taken seriously, it is predicted that HAN will improve their
overall effectiveness, efficiency and alignment in this industry.
Management Review
Environmental Assessment
Although many economists consider Switzerland as one of the world’s most stable and
wealthy countries, with a GDP among the highest in the world (CIA Factbook: Switzerland,
2010), the financial crisis impacts the country. Especially in the Valais, the rise in
unemployment and the decrease of the populations spending power will have effects on the
HAN Mongolian Barbecue. In our opinion, these threats might decrease the number of
customers coming to the BBQ which will lead to a decrease of profit. Until the current point,
the manager of the HAN Mongolian Barbecue did not realize any changes due to the financial
crisis. His biggest concern is the tourism season in summer. There, a decrease in customers
and revenue might be recognized, but the manager does not know the exact numbers yet. The
business depends highly on the seasonal customers. Seasons are summer, with the hiking
tourists and winter, with the skiing tourists. In these times his occupancy is between 80-100%.
In contrast, off-season just brings occupancy of 20% during the week and 70-80% on the
week-ends. If the seasonal business does not work, he loses most of his business of the year.
Having a closer look at the location shows the advantage for the business. It is located in Steg,
with 1300 inhabitants, directly at the main road leading through the Valais. Due to the
roundabout in front of the restaurants, the cars have to slow down and see the HAN logo.
Unfortunately, the exterior design does not reflect the interior or the theme so that it is hard to
associate the concept behind it.
Although belonging to a franchise company, the restaurant in Steg is the only one in Valais,
which makes it unique in its concept. No direct competition can be found and its personalized
and unique theme set it apart from local competitor.
The construction of a new highway, leading most of the cars not anymore through Steg is not
seen as a risk. The frequent guests know how to get to the restaurant and instead of declining
numbers of guests, even more are expected, especially during the constructions itself, because
of the workers who come for lunch or for a drink in their break.
Competitive Environment
Differentiation is reached through Han’s unique concept and its themes which is only one of
its kind in the region of Valais. Nevertheless other restaurants have to be considered as
competition although they attract a different target market. The following points present HAN
Mongolian Barbecue in its currents position in the competitive environment:
 High entry barriers are created through a strongly differentiated product
 Competitive advantage is gained through personal contact to all guests which is highly
valued in the region of Valais
 High guests satisfaction is reached through adaption of the food
 With small business units with the driving school, the chalet and the Club Zero,
financial advantages can be met
Competitor Analysis
Despite the ability to create a strong competitive advantage with its concept to differentiate
and its unique Mongolian dining experience, HAN Mongolian Barbecue has to face some
competitors in the direct surrounding.
We believe that the key competitor can be seen in Rothis Western City because of its close
location, to the main road and as well to the train station. Moreover they offer, instead of a
normal meal, a whole dining experience with entertainment for their guests. Although the
cuisine is differently and cannot be compared, the theme and the focus on the experience
make them to competitors.
Another competitor is the “Buffet de la Gare”, which is an authentic Restaurant offering
Swiss food, in a traditional and cozy atmosphere. This might especially attract tourists,
therefore it is seen as a competitor.
Moreover, it has been observed that next to the main road, where Han Mongolian Barbecue is
located, a lot of different restaurants can be found. Most of them are traditional Swiss
restaurants. Therefore it is important to find the two main competitors (Rothis Western City
and Buffet de la Gare) and analyze their strengths and weaknesses in order to built up the own
competitive advantage.
Rothis Western City
Strengths
Buffet de la Gare
 Western theme
 Authentic swiss food
 Experiential dining experience
 Location
 Music entertainment
 Reasonable prices
 Events
 Open 365 days a year
 Authentic design (exterior& interior)
Weaknesses
 Less focusing on food
 No online presentation
 Limited menue
 Poor service
 Just meat dishes
 High prices
 No direct differentiation to
other swiss restaurants
 High employee turnover
Stakeholder analysis
Internal Analysis
The owner and official trademark holder of the HAN Mongolian Barbecue is Mr. Pascal
Berger, who also owns all the rights of the HAN Mongolian Barbecue franchise; however, he
shares the management with his girlfriend, Judith Mathieu. They finish their hospitality
studies in Thun and than wanted to open their own restaurant. By having a closer look at the
management team, Mr Pascal Berger is responsible for marketing, kitchen, supply and
purchases, whereby Judith is in charge of human resource, the accounting department and
service. They agreed to separate the power between them accordingly to their individual
strengths. Therefore, by deciding business questions, the other partner always has to be asked
for approval. However, the goal of the business management is to satisfy customers, increase
quality and deliver a unique eating experience. By being integrated in the family business of
‘Mathieu GmbH’, we, the consulting company, believe that the family Mathieu who owns this
GmbH is a very important stakeholder. In the Mathieu GmbH is a driving school, a chalet, a
club and the HAN Mongolian Barbecue, whereby different family members are responsible
for each SBU. They do not require external stakeholders, and just rely on their own capital to
finance operations for reinvesting in the business. After breaking even after the second year, it
shows the high effectiveness of the establishment. Moreover, they have to keep effectiveness
and long term perspectives in mind but also think about short term effectiveness of all their
SBUs and maintain their vision.
Further we believe that the owners seem to have a good relationship with all of their
employees, due to the fact that they are a small team working in the restaurant. Moreover, the
fact that Judith’s mother is working full-time as a service employee, the relationship is even
stronger. Empowerment and trust are very important aspects within the group. The turnover
rate of employees is quite small, because as full-time, it is just his mother in law and a chef
working in the restaurant. Otherwise they have part-time staff for the peak season and for the
weekends, when the restaurant is fully booked. Moreover, internal training sessions support
the team work, communication as well as the quality standards. So the entire team works as a
family together. Furthermore, a small and united team is easier able to provide personalized
service on the guests (Harris, Reid and McAdam, 2004). That’s what the family emphasises
on, they prefer working with not qualified staff, but people who know how to deal with the
clients relaxed and in a friendly way, because that’s what differentiated them from other
restaurants. The statement of a higher likelihood of small businesses to employ unqualified
staff is supported by Barrett and Mayson (2007). However, as already mentioned, the full time
as well as part time employees receive internal training programs. Moreover, external training
sessions are provided by the its1stworld franchise for a high alignment throughout the entire
franchise.
External Stakeholders
The external stakeholders of HAN Mongolian Restaurant are the customers, suppliers, the
local community and local businesses.
However, we, the consulting team, think that the most important stakeholders of the business
are their customers. By delivering high quality as well as personalized and customised
service, they would like to create and maintain a long term relationship to satisfied customers
of all ages, due to the fact that the success of the business is build up on these factors. We also
believe that HAN Mongolian Barbecue is aware of their main stakeholders and therefore,
would like to deliver a unique eating experience to become the number one choice in
barbecue/grill cuisine. Therefore the owners approach their customers personally and build up
an individual relationship with each customer by talking to them privately. Moreover, survey
have been implemented to see exactly all customer wants and needs. Furthermore, we found
out that they rely on the ambitious and friendly employees to fulfil all requests and
expectations of the customers. HAN Mongolian Barbecue standards and guidelines provide a
guideline for them.
By having a look a the suppliers, the management team of HAN can highly rely on the
partnerships and cooperation’s of its1stworld, due to high reduction in prices of groceries
because of the huge amount of purchases. It can cut costs and save a lot of money with these
profitable relationships to the suppliers, provided through the franchise.
The local community of Steg/ Hohtenn, as a stakeholder, is supporting new businesses with
low interest rates (Gemeinde Steg/Hohtenn, 2010), as well as the fact that a highway will be
build beside the city.
Moreover, local companies, often not hospitality connected also cooperate with the HAN
Mongolian Barbecue. These alliances are on a personal basis, which is, as already mentioned,
very important in the region of Valais. People prefer being in direct contact and doing
business with people they know, instead of total strangers. Using this knowledge, Mr. Pascal
Berger was able to increase his influential area and do marketing and PR through these
companies. Furthermore, word-of-mouth, a traditional, but very useful marketing tool for the
region, is used to attract customers. However this is just possible by considering and staying
in a close contact to the regional stakeholders.
To conclude, it is very important to understand the expectations and interests of all the
stakeholders to be able to fully understand the relationship to the different stakeholders and
how to use them for a continuous and successful growth. We believe, that to be in the future
successful, the management team has to understand that they have to take into consideration
quite a few different aspects and opinion of stakeholders to achieve effective short term as
well as long term goals.
Capability and Strategic Competitiveness Assessment
We believe Han Mongolian Barbeques greatest advantage is it’s franchise concept, which in
essence minimises the risk to the current manager, Mr Pascal. Han is differentiated through a
non-replicable themed restaurant where the food preparation is central to the company’s
uniqueness. It is clear to us that the diversified business has created a niche market in which
both locals and tourists enjoy the fusion of Mongolian and Swiss cuisine.
The manager’s approach appears to is based on trial and error where economic circumstances
provide the flexibility. With maintained support from the franchise group ‘its 1 world’ assures
the process for which limited risk is involved. The franchise allows for relative supplier
control and standardisation of the quality product through regimented franchise operation. It is
apparent that the restaurant has a largely diversified and extensive customer basis as there are
frequent loyal customers form within Steg and also one-time tourists who are driving by.
Variable occupancy observations based on seasonality ultimately conclude in satisfied
customers, it is evident that the restaurant is successful despite its long operational hours and
7-day-a-week availability.
Sales and Marketing
It is evident that Han focuses specifically on word of mouth advocacy as the targeted market
is locally based. Pascal ensures consumer loyalty through these affiliations and thus the
reputation of the restaurant is maintained. We believe the facility is well positioned, as a
versatile entertainment and food and beverage outlet, yet further marketing communication
efforts would strategically broaden market groups. It is evident that Han Mongolian Barbeque
has not exhausted all marketing options and currently does not have its own website, the
restaurant rellies on the franchise branding and wider marketing efforts. We believe
significant efforts could be made to update and innovate the marketing advocacy of Han.
Financial Resources
Due to the lack of financial data available from the restaurant, we were not able to assess the
balance sheet, cash flow and financial forecasts for the establishment. We believe that the
financial soundness of Han Mongolian Barbeque is arguable. As we were provided with no
tangible data, thus assumptions of franchise stability are assumed. It is therefore estimated
that the restaurant has consistent annual revenue growth. Furthermore we believe that
administrative, legal and operational support provided by the franchise ensures Han with a
realistic perspective, financially and for future objectives.
Human Resources
The staff of Han Mongolian Barbeque consists of 3 full-time and 2 part-time employees. The
manager has personal contact with all of the staff members; thus, creating a friendly and
informal atmosphere at the workplace. It is evident that the employees of Han require minimal
training and service standard, both external training from within the franchise is applicable to
management and chief level, while internal is provided to service staff on a consistent basis.
However issues of turnover are an inevitable threat to quality control, moral and the overall
success of such a tight-net family run business. As it is often difficult to recruit
knowledgeable, well-trained staff as well as maintain them. We believe the restaurant is well
staffed in low season periods however additional staff are required in peak times to maintain
standards. We propose that this could be achieved through the employment of university
students.
Han Mongolian Barbeque is further diversified by way of the overall family ownership going
by the name Mathieu GmbH. Under this investment four small business units exist, Han, Club
Zero, the Chalet and the Driving School. Which we believe ultimately provides a complex
framework, providing one instance (the driving school) of extreme diversification. It is
evident that the services are differentiated to many demographic target markets, however the
overall commonality is suggested to be residents from within the region. We believe that the
implications of such an extremely diversified business have lead to the uneven distribution of
each product. Therefore, we suggest emphasis to be put on revenue driving elements and the
successful unique operations (inclusive of the restaurant and club), where growth potential
can be capitalised through alignment in an effort to sustain competitive advantage. The
supporting business unit (Chalet) provides a basis for future development, and finally we
suggest the driving school operations to be run as a completely separate legal entity.
Conclusively the internal capabilities of Han Mongolian Barbeque are evolving over time,
with potential for future improvement. For additional information on the core competencies
and critical success factors refer to appendix 3.
Strategic Choice
When making a strategic choice, the business must keep in mind the environment, the
expectations for stakeholders, the resources and competences. All of these factors influence
the way the business will grow and have sustainable competitive advantage. The two levels of
strategy that will be discussed in the following sections will be Corporate level strategy and
the Business level strategy.
Corporate level strategy
In the Corporate level strategy, the business along with the franchisor are aware of the actions
that must be taken to gain competitive advantage in the industry. There are eight HAN
Mongolian Barbecues throughout Switzerland and each of the premises are given their
freedom to elaborate and adapt to the environment they are in. The HAN that our group is
evaluating takes into account of the challenges that they face and how to adjust to the external
environment. The restaurant manager Mr. Pascal Berger is affiliated with the family business
of the Chalet along with the driving school. This allows the business to differentiate
themselves in several industries and product markets. This is an unrelated diversification that
the HAN business has taken into account. Therefore, this diversification enables them to
create value through more than one type of financial economies. As the restaurant manager is
a Swiss hotel school graduate, it is transferring the competencies in the business. It allows Mr.
Pascal Berger to be using the capabilities to link different businesses in the managerial
knowledge and experience.
Business level strategy
When competing in the individual product market within the business level strategy, HAN has
distinguished itself to gain the competitive advantage in the industry. HAN uses its core
competencies to satisfy the guests needs and continue to improve and upgrade their abilities to
exceed the customers expectations. Han positions itself in performing a different customer
experience compared to its rivals; therefore adds the value in their uniqueness. Due to their
differentiated products amongst their rivals, they are able to command a premium price for its
target market. Additionally, the augmented product that HAN offers is although similar that of
the main competition (Rothis Western City), an entertainment based venue, it has gained its
market through offering a different service and experience for the customers. By recognizing
the opportunity, HAN succeeded in gaining impact for its augmented services.
References
Barrett, R. & Mayson, S. (2007). Human resource management in growing small firms.
Journal of
Small Business and Enterprise Development. Vol.14(2), pp.307-320.
Retrieved May 25, 2010
from Emerald Database
CIA Factbook (2010). The World Factbook, Switzerland. Retrieved on May 10, 2010 from
https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html
Gemeinde Steg/ Hohtenn (2010). Gampel, Bratsch, Steg, Hohtenn, Arbeiten. Retrieved May
15, 2010
from http://www.weibil.ch/waerchu/
Harris, R.L.D., Reid, R.S. & McAdam, R. (2004). International Journal of Entrepreneurial
Behaviour & Research. Vol.10(1/2), pp.49-58. Retrieved May 25, 2010 from
Emerald Database
Harrison S. J. & Enz A. C. (2005). Hospitality strategic management: concepts and cases.
New Jersey United States of America: Wiley & Sons, Inc.
Olsen, M., & Zhao, J. (2001). The restaurant revolution – growth, change and strategy in the
international food service industry. Journal of Restaurant & Foodservice Marekting.
4(3), 1-34.
Appendix
SWOT
Internal Factor Analysis
X= Relative
Y= Potential
importance to SCA impact on business
Strengths
Average
Franchised
property
Unique concept
9
9
9
8
8
8
Augmented
products
8
9
8.5
Weaknesses
Locality
-6
-5
-5.5
Low Staff
experience
Short-term prospect
-7
-8
-7.5
-4
-5
Mean weighted average
External Factor Analysis
X=
Y=
Success/Occurrence Attractiveness/Severity
Opportunities
Networking with
other businesses
Stronger brand
awareness
Customers looking
for new dining
experiences
-4.5
1.3
Average
9
9
9
8
9
8.5
9
9
9
Threats
Local competitors
-7
-8
-7.5
Restricted land
expansion
Decrease of
spending power
-6
-7
-6.5
-6
-7
-6-5
Mean weighted average
1
From analysing the internal and external factors of Han’s Mongolian Barbecue, it is found
that the main weakness is the low experienced staff and the foremost threat is their local
competitors. However, due to the their unique concept and their networking with other
business, it had enabled them to maintain their balance yet still in the SWOT analysis.
I/E Matrix
BCG Matrix
The Boston Consulting Group (BCG) matrix is a diagram created by Bruce Henderson for the
Boston Consulting Group in 1968 to help corporations with analysing their business units or
product lines. The matrix is used to help the company allocate resources and is used as an
analytical tool in brand marketing, product management, strategic management, and portfolio
analysis.
The BCG matrix is based on two factors, business growth rate and relative market share,
which are used to plot all of the SBU’s the organisation is involved in and represented as
‘Stars’, ‘Question Marks’ (Problem Children), ‘Cash Cow’ and ‘Dogs’ (Harrison & Enz,
2005). Notably ‘Cash Cows’ tend to generate more cash than they can effectively reinvest,
while ‘Question Marks’ require additional cash to sustain rapid growth, and ‘Stars’ generate
about as much cash as they use, on average (Harrison et al., 2005).
Furthermore it is evident that ‘Stars’ and ‘Cash Cows’ tend to be the most profitable, with
superior market positions.
The following diagram represents Mathieu GmbH and the operating small business units
(SBU); Han Mongolian Barbeque, Club Zero, the Chalet, and Driving School on the BCG
Matrix.
Sourced by:
http://2.bp.blogspot.com/_HYe8ckGvLRs/SaVmhWkJ9WI/AAAAAAAAAT0/e0kPtk8rkt4/s400/BCG_Matrix.png
The four major sources of revenue for points for Mathieu GmbH also known as its SBU are
inclusive of; Han Mongolian Barbeque, Club Zero, a chalet and driving school. They are all
placed on the BCG matrix relative to their market share and market growth with regard to
profitability.
It is evident that the foundation of the analysis Han Mongolian Barbeque is a ‘Star’ as we
believe that the restaurant has further opportunities for market growth and is yet to mature.
Club Zero is believed to hold a similar stance as this operation is understand to be in the
development- growth phase of its life cycle, we believe that the club has immense revenue
potential, and with further investment will ultimately become a ‘Cash Cow’. It is understood
that the chalet is questionable in its nature, and overall market share, as many other similar
types of accommodation exist in the region. Through prioritisation and concepts of alignment
of the chalet, could become part in parcel with the restaurant and club. Lastly the driving
school although an ‘alien’ (Relatedness matrix: appendix 2) we believe it is nearing to the
likes of a ‘Cash Cow’ as it has relative market power with only one competitor in the region.
Conclusively Mathieu GmbH is believed to have limited balance of it SBU’s with the driving
school having questionable alignment, yet the opportunity of ‘Cash Cow’ status. We believe
that further investment in of either the club or restaurant would further propel the company’s
revenue. Mathieu GmbH is complex in nature and ideally needs to find a balance within the
BCG matrix.
I/E Strategy Matrix
UNIVERSITY CENTRE “CÉSAR RITZ“
BP3: Stakeholder Analysis of the HAN Mongolian Barbeque, Steg
Submitted on
Tuesday, 25th May, 2010
by:
182520
182512
504214
182515
Submitted to:
Mr Roger London
MGT460 Strategic Management
In partial fulfilment of the requirements for the Degree of Bachelor in international Business
in Hotel and Tourism Management
S. Blau, M.Forch, F. Hidayat, A. McKenzie
University Centre “César Ritz”
Englisch-Gruss-Str. 43
3900 Brig
Pascal Berger
Restaurant Alpin Han
Kantonsstrasse
3940 Steg
25th May 2010.
Dear Mr Pascal Berger,
Re: Briefing Paper 3– Stakeholder Analysis
In response to our interview, Monday, May 17th 2010, please find enclosed an stakeholder
analysis of Restaurant Alpin Han as part three of your business’ strategic review. The paper
details the properties stakeholder capabilities and manageability.
The paper elaborates further, by defining Restaurant Alpin Han’s; corporate information,
Stakeholder objectives and expectations, Power interest mapping and Relatedness matrix.
The stakeholder capability assessment provides a clear overview of the company’s
compatibility of the stakeholder’s objectives and interests.
Again, we thank you for your cooperation and will keep you updated on the review’s process.
Best Regards,
S. Blau
M. Forch
F. Hidayat
A. McKenzie
Disclaimer
The following briefing paper for Han Mongolian Barbeque Steg is an analysis performed by
students of University Centre “César Ritz” in partial fulfilment of the requirements for the
Degree of Bachelor in International Business in Hotel and Tourism Management.
The content enclosed is a voluntary association of the students and Han Mongolian Barbeque,
Steg working towards developing a common resource of knowledge and business insight.
Please be advised that this is a student project and used for learning development purposes.
The analysis and recommendations provided is therefore relatively limited and thus applicable
with no liability to the school or students involved.
All published data and information are strictly for informational intentions. The authors
confirm that information will only be available to the business owner as well as the lecturer,
therefore the paper certifies a high level of confidentiality; copies will be pertinent for
education purposes only.
Moreover, business decisions should not only be drawn out of the decisions made in this
report. Thus no reliance should be placed on any of the information and opinions unless
confirmed by qualified professionals.
Brig, May 25th 2010
S. Blau
M. Forch
F. Hidayat
A. McKenzie
Table of Contents
1.0 Executive Summary .......................................................................................................... 28
2.0 Scope ................................................................................................................................. 28
3.0 Key Findings ..................................................................................................................... 28
4.0 Implications ....................................................................................................................... 29
5.0 Conclusions ....................................................................................................................... 30
6.0 References ......................................................................................................................... 30
Appendix A – Corporate Information ..................................................................................... 31
Appendix B – Stakeholder Objectives and Expectations Analysis ......................................... 32
Appendix C – Power Interest Map .......................................................................................... 34
Appendix D – Relatedness Matrix .......................................................................................... 36
Source Documents.................................................................... Error! Bookmark not defined.
Interview Notes
38
1.0 Executive Summary
Mr. Pascal Berger, owner and manager of the Han Mongolian Barbecue provided in depth
information regarding the key strategies and his interactivity with key stakeholders of the
business.
He recognizes the essential relationships that must be built in order to be a sustainable
business in Steg. Although the concept of the business serves a niche market, Mr. Pascal,
however does not limit the relationships established with other businesses. The imperative
factor within the stakeholders is how Han Mongolian Barbecue values relationships with the
local community.
2.0 Scope
This briefing paper examines Han Mongolian Barbecue restaurant in Steg, focusing
particularly on its stakeholders. Expectations, associations as well as the interests of the
stakeholders has been analysed holistically in regards to the establishment. This paper has
identified fundamental information such a the corporate information of the business, the
stakeholder’s objectives and expectations, allocating its position in a power interest map as
well as a related matrix. By evaluating and analysing the information in an in depth level, it
has allowed the group to identify the business’s principles and philosophy. This will aid the
group to provide detailed recommendations for future insights.
3.0 Key Findings
1. The key stakeholders can be defined as:
a. the restaurant-manager Pascal Berger
b. the franchise company
c. the supplier
d. the employees
e. the local community (Appendix B)
2. Balance of stakeholders expectation is challenging to achieve.
3. The family is the most influential in the businesses success, because of financial groundings
(Appendix C).
4. The restaurant and club are well aligned in strategic relatedness, maintaining positions in the
heartland business segment (Appendix D).
5. Relatedness of both the chalet and driving school strategic businesses units is questionable
from a manageability reference point (Appendix D).
4.0 Implications
1. The expectations of the various stakeholders might put negative pressure on the manager.
2. By concentrating on the satisfaction of all stakeholders the details and operational elements of
the business is compromised.
3. Strong power interest of the family results in a bias view.
4. Balanced manageability resources of the restaurant and club gives rise to growth, development
and high returns.
5. Questionable relatedness of the chalet and driving school, confuse business structure, resource
usage and provide uncertainty of relative manageability in corporate strategic direction.
5.0 Conclusions
The mentality of the regional population of Valais is considered to support business and build
rapport with potential stakeholders and customers. This allows the business to consistently
develop with growth of demand. The different expectations and interests of the stakeholders
are a challenge to adapt to, however Han’s Mongolian Barbeque, has found a successful
approach. Many stakeholders, specifically family members influencing the management limit
accuracy of guidelines. The relatedness of four small business units provides greater scope for
revenue however may lead limited clarity of the focus for each unit.
Ultimately stakeholders are vital for the success and growth of the business; therefore
collaboration is key.
6.0 References
Curtice, R.M. (2006). Stakeholder Analysis: The Key to Balanced Performance
Measures. Process Portfolio Management. Retrieved 20th May, 2010 from
http://www.bptrends.com/publicationfiles/04-06-WPStakeholderAnalysis-Curtice.pdf
Harrison S. J. & Enz A. C. (2005). Hospitality strategic management: concepts and cases.
New Jersey United States of America: Wiley & Sons, Inc.
Appendix A – Corporate Information
Organization purpose
Providing a customer orientated service through a Mongolian-style service delivery.
Establishing relationships with all stakeholders to the business.
Gaining nation wide recognition of the restaurant.
Mission/Vision statement
To become the number one choice for barbecue/grill cuisine in the surrounding area.
Values
Offering a personalized and customized service for the guests and maintaining a strong
relationship with the family business.
Goals
Maximize revenue
Accommodate to different guests’ needs
Establishing successful outlets within the business, such as the bar and club.
Creating a unique dining experience for locals and tourists
Objectives
Be sustainable and inimitable by new entrants
Become a place of dining and entertainment
Strategies
Offering a unique dining experience for locals and tourists in the area of Steg.
Tactics
Developing a close relationship with businesses in the area to work be able to work together.
Building a strong customer base through networking in a personal approach.
Appendix B – Stakeholder Objectives and Expectations Analysis
In order to assess the success of a business it is crucial to analyze the stakeholders
expectations and objectives. According to Curtice (2006) “Stakeholders are individuals or
groups who expect certain things from the company, and at the same time have a considerable
influence on its success.” In the case of HAN Mongolian Barbecue, the restaurant-manager in
Steg, the franchise company, the supplier, the employees and the local community/customers
are seen as stakeholders.
Managers Expectation:
The manager’s expectations towards the success of the HAN Mongolian Barbecue in Steg are
set at a high level. When starting the business, he wanted to be profitable after two or three
years and he managed to reach this goal after 2 years. For him, the opportunity to work with a
franchise company offered a lot of advantages, such as security, lower costs for suppliers and
already set guidelines. Additionally to these guidelines he has the freedom to enlarge his
buffet variety (he offers 60 instead of 30 predetermined ingredients). The manager stated “we
are not forced to do anything, but we are allowed to do everything”. This statement shows that
the franchise company its1world just provides guidelines and leaves a certain amount of
freedom to the franchisee. His personal expectation of his business is to offer a unique
concept to the region of Valais. Due to the traditional and “narrow-minded” attitude of the
inhabitants he changed the menu and adapted it to the customs of the region in order to fulfill
his objective to be profitable after the above mentioned amount of time. Another expectation
lies in the character of a family business, which augments the team-spirit between the
different employees. The mother in law is employed as full-time employee and external
employees are just working for 10% in the restaurant. Therefore the manager expects a high
level of team work between him, his wife and the mother in law. This expectation might be
diminished by the part time employees because they just spend a small amount of time in the
restaurant and with the team, therefore the managers responsibility is to ensure a good
integration of all employees in the team.
His interest in innovation (implementation of new technology, such as micros-system) and
growth (objective of profitability reached in 2 years) help to enlarge profit and success of the
business. The direct contact to the customers and the personal distribution of the businesscards show a good understanding of the regional population.
Its1World Expectation:
The franchise company its1world combines 5 different concepts under his name (Nelson Pub,
Lady Hamilton’s Public House, SAM’S Pizza Land, HAN Mongolian Barbecue, Piri Piri
Chili Hühnchen). HAN Mogolian Barbecue is present in 8 different locations all over
Switzerland. The franchise company expects high and standardized quality standards to
ensure freshness of all products. Moreover, high service-standards are expected by its1world.
All in all, the franchisee has to promise high quality standards in all departments so that the
brand is represented in a good and satisfactory way, which supports the brand image.
The Supplier Expectation:
HAN Mongolian Barbecue supplier is used by all HAN restaurants in Switzerland, so that the
price will be reduced. This supplier (Horeca) only delivers HAN Mongolian Barbecue in Steg
in the region of Valais, because of the difficulties to reach the Valais. Due to the contract with
its1world the supplier is obligated to deliver and to continue the cooperation. All goods are
delivered in frozen condition and are directly put into the cooled warehouse, so that the
quality can be ensured.
Employee Expectation:
The employees working in HAN Mongolian Barbecue can be divided into two different
groups, namely part-time and full-time employees. Due to the fact that the restaurant is a
family business, the manager’s wife, Judith, and his mother in law are employed as full-time
employees, working 100%. A chef is as well employed as a full-time worker. Two employees
in service and one in the kitchen are just working part-time in the restaurant, which means
they work on a 10-20% basis. The owner sets high value to the personality of his staff.
Therefore, when recruiting, he looks for a person with the right character and an open-minded
attitude, instead for working experience. In his opinion, the success of a business, especially
in a very traditional region like the Valais, depends heavily on the personnel and its ability to
build rapport with the guests. Therefore employees are also required to speak German
fluently. To sum up, the employee expectations are their ability to connect with the guests and
to represent the business. The focus on the family business will support the success in the
region due to the traditional view of the local population.
Local Community Expectation:
The expectations of the local community are important to consider, due to the above
mentioned fact that the region of Valais and its population have a very traditional mental
attitude. The fact that his wife and her family are from the region facilitates his business,
because they are known. With adjusting to the local habits such as personal promotion, Pascal
Berger is able to get accepted by the community. In a region like the Valais, this acceptance is
crucial to successfully operate a business.
Appendix C – Power Interest Map
Local companies
Full-time employee (Chef)
Suppliers (franchise partners)
High
His GIRLFRIEND
and
FAMILY
‚Mathieu’ GmbH
Close relationship and support
Full-time employees (family members)
3) KEEP INFORMED
1) MANAGE CLOSELY
Part –Time employees
Just 10% employed
Local Community
4) MONITOR (MINIMUM EFFORT)
2) KEEP SATISFIED
INTEREST
Low
Low
POWER
High
Power- interest- map represents the level of influence and the level of interest of different
stakeholders who have power over the organization to the greater or lesser extent. The
classification for those stakeholders is as followed:
1)
2)
3)
4)
Power and interest on the organization are high.
Power is high but the level of interest is low.
Power is low but the interest in the organization is high.
Interest and power are low.
His Family:
 Full support from his family is needed, because his mother-in-law is a full-time
service employee. Moreover the restaurant is integrated in the company ‘Mathieu
GmbH’ consisting of four revenue generating businesses: a chalet which is for rent, a
driving school, the ‘Club 0’ (directly underneath the HAN restaurant) and the HAN
Mongolian Barbecue.
 ‘Mathieu GmbH’ is a family owned business, and different family members are
responsible for one of each integrated business.
 There is financial support within the family business to guarantee success of each subcompany.
Management:
 Trademark holder of HAN Mongolian Restaurant is Mr. Pascal Berger, however,
unofficially his girlfriend and he share the management of the HAN Mongolian
barbecue.
 His girlfriend is responsible for Service, Human Resources and Accounting, whereby
Mr Pascal Berger is responsible for Marketing, Suppliers and Operations
Employees
 The full time employees are his mother-in-law who is working in service and a chef,
who is employed 100%.
 Due to the fact that it is a family business and his mother in law who is working full
time there has quite a big influence on the management, and also shows a high interest
rate.
 Compared to the chef, he does not have a chef apprenticeship, just got specialized
training for the Mongolian style of cooking. Moreover, he is not involved in the family
business; therefore he does not have much power within the system, but he has a lot of
interest, due to the fact that he gets quiet a lot of training and support from the
business.
 At the HAN Mongolian Barbecue are also 2 part time employees employed, who are
just working for around 10-20%. That basically means they are just working there
during the weekends when the restaurant is full. Therefore, their influence rate is
pretty low as well as their interest rate, because there is no close connection to the
family.
 The restaurant tries to increase the interest rate by external as well as internal training
sessions for their employees; moreover, using incentives strengthens the integration to
the company.
Suppliers:
 The supplier power is relatively low, due to the fact that its1stWorld is cooperating
with fixed suppliers, which are happy having them as customers due to the high
turnover figures. So these suppliers do not want to lose this customer.
 As an example, the grocery supplier ‘Horeca’ does not deliver anymore to the Valais
region due to the fact that it’s not profitable anymore for him, however he does have to
come to Steg, just for the HAN Mongolian Barbecue due to the contract with
its1stworld.
 Furthermore, as already mentioned, the high turnover figures of its1stworld allow Mr.
Pascal Berger to purchase all his products for relatively cheap from the contracted
suppliers.
Local Community:
 The local community should be informed about all big changes, but are not actively
involved in company decisions.
Local Companies:
 Cooperation with local companies supports the business’ marketing, but they do not
have any influence in the operations of the business. These companies just show high
interest in each other due to the shared PR and other kinds of activities. (Refer to
source document: brochure).
Appendix D – Relatedness Matrix
The relatedness matrix illustrates the degree of relatedness of business units and their
manageability with regard to the overall corporate structure (Harrison & Enz, 2005). The
concept stems from the ideas of diversification within a common business or market.
Han Mongolian Barbeque in Steg is a franchise of ‘its 1 world’ and further operates four
strategic business units (SBUs) under the title. However two of the units have questionable
relativity to the core restaurant franchise. Aplin Han owns and operates the restaurant, a
chalet, club zero and a driving school.
Degree of Relatedness of Business units
Low
High
High
Club
Zero
Manageability
Chalet
Low
Driving
School
The four Strategic Business Units (SBUs) operate under the one family, suggesting the
diversity of business units is a reflection of the varried characteristics of family members.
Both the Han restaurant and Club Zero are strategically placed in the ‘Heartland Business’
category as both interlink in resources and facilities. Which coordinates alignment and
integration harmoniously, creating a good fit between the corporate (Han) and SBU (Club
Zero), which ultimately lead to possible further successful developments.
The Chalet has questionable value as it is separated from the restaurant and little is understood
to the connection other than ideals of full service hospitality. Lastly the driving school is
undoubtedly an alien with regard to the relatedness matrix, as it has no relative connections to
the fundamental business operation. The school is part of a completely different market
segment and target group, which questions the business motive and orientation.
Stakeholders Chart of Objectives and Expectations of Stakeholders
Internal
Stakeholders
Owner &
Manager
Employees
External
Customers
Local
Communities
Government
Competitors
Ownership
Economic
Dependence
Social
Dependence
X
X
****
X
****
Importance
(Rated from
* to *****)
X
X
****
X
X
***
X
X
***
X
X
**
Interview Notes
Overview of HAN
 HAN-brand: 8-9 years
 Owners graduated from hospitality school Thun
 Wanted to create something on their own
 Normal restaurant is difficult to maintain, brand/franchise has many advantages
o Security
 This restaurant in Steg since 6 years a HAN Mongolian Barbecue
 They took over 2 years ago
 Valais is a special region, due to very traditional and narrow views of inhabitants
 Personal reasons to open the BBQ
o Judith (his girlfriend) is from Valais
o Wanted to get an insight in all different “departments” of a restautant, because they
have to do everything by themselves
 No experience and connection with Mongolia
o Challenge
 No focus on Mongolian cuisine but more on BBQ
 Experiential gastronomy/experiential dining experience
 Restaurant is a limited liabitlity company with the name Mathieu GmbH
o Cooperation between restaurant, driving school and Chalet
Brief Financial Overview
 Own restaurant would be too risky
 Competitive advantage: unique concept in valais
 Profitable after 2-3 years
 Reached level of profitability already after 2 years
 Customers: 50% tourists
 Occupancy
o Week/off-season: 20%
o Weekend/off-season: 70-80%
o Week/season: 80%
o Weekend/season: 100%
 Financial crisis: until now, no direct effect, but perhaps this summer
Sales and Marketing
 Most handled by franchise company its1world (Brochures etc)
 Restaurant itself: special events (Children-Disco) + press-releases
 Public relations through manager
o He goes to events and distributes his business cards
o Personal contact very important in Valais
o Traditional and “old-fashioned”
 Unique Selling Point:
o Buffett with 60 ingredients
o 2 years same quality
o Not easy to copy
Consumers
 Dependent on season
 In holiday-season less local people
 Customer satisfaction:
o Quality & standard control
o Set by brand
o Recipes given from franchise company
o Internal and external control
o Guest-surveys to measure satisfaction
o Personal contact to each guest
 Offers: eat 10 times get one meal free
 Birthday special, but just if person in personally known by managers
 Discothek “Club Zero” in basement since last December
 More groups are coming (15-40 people)
 Capacity: 100 people
Human Resources
 Family owned
 Pascal Berger (??) is the manager, employed by Mathieu GmbH
 He owns the rights of HAN Mongolian Barbecue
 Judith: accounting department, service, HR
 Pascal: Marketing, kitchen, supply and purchases
 Mother in law: employed at full-time
 Chef: full time
 3 part time employees: 2 in service, 1 in kitchen (each work at a 10% basis)
 Training done by its1world for management and kitchen (1x per year)
 Service training: internal
 Incentives when goal of the months is reached (exp.: increase sales of starters)
Internal Operations/Suppliers
 Use of Horeca, supplier for all HAN restaurants
o Lower prices
o Horeca delivers directly to business
 Concept of restaurant: less effort, lower numbers of employees, high guest turn-over, low
costs for suppliers and personnel, no food wastage
 Costs of personnel: 30% (normal restaurant: 35-40%)
Quality
 Everything is fresh
 Food stock will be used within 2 days
 Control by company
Technology
 WiFi
 Wireless Credit-Card terminal
 Screen behind the grill with presentation of restaurant, club or other adverts
 TV at the bar
 Cleaning-Machine = Ferrari ;) necessary for 300m² floor
External Operations
 Rothis is no real competition
o Different style
o Different theme
o More focused on drinks and entertainment
 Competition seen in the high amount of restaurants in the area
 Alliances: difficult to maintain
 No real alliances but personal contact to different businesses (hairdresser, Orange…) which
distribute HAN’s flyers and brochures
 Highway no disadvantage:
o Most people who pass by do not stop at the restaurant right now
o During constructions of highway maybe more guests especially for lunch
UNIVERSITY CENTRE “CÉSAR RITZ“
BP2: Internal Analysis of the HAN Mongolian Barbecue, Steg
Submitted on
Tuesday, 18th May, 2010
by:
182520
182512
504214
182515
Submitted to:
Mr Roger London
MGT460 Strategic Management
In partial fulfilment of the requirements for the Degree of Bachelor in international Business
in Hotel and Tourism Management
S. Blau, M.Forch, F. Hidayat, A. McKenzie
University Centre “César Ritz”
Englisch-Gruss-Str. 43
3900 Brig
Pascal Berger
Han Mongolian Barbeque
Kantonsstrasse
3940 Steg
18th May 2010.
Dear Mr Pascal Berger,
Re: Briefing Paper 2– Internal Analysis
In response to our interview, Monday, May 17th 2010, please find enclosed an internal
analysis of Restaurant Alpin Han as part two of your business’ strategic review. The paper
details the properties internal capabilities and controllable factors, which endeavour to define
the Hotels resource competencies and therefore its competitive advantage.
The paper elaborates further, by defining Restaurant Alpin Han’s; Perceptual Map, Statement
of Sustainable Competitive Advantage, Critical Success Factors, Resource Audit Analysis,
Core Competence Analysis, Linkages and Strategic Alliances Analysis and Value Chain
Analysis.
These capability assessments provides a clear overview of the properties critical success
factors as well as review its opportunity to create a further competitive advantage from its
already existing resources, through possible relative sustainable activities of outsourcing
options.
Again, we thank you for your cooperation and will keep you updated on the review’s process.
Best Regards,
S. Blau
M. Forch
F. Hidayat
A. McKenzie
Disclaimer
The following briefing paper for Han Mongolian Barbeque Steg is an analysis performed by
students of University Centre “César Ritz” in partial fulfilment of the requirements for the
Degree of Bachelor in International Business in Hotel and Tourism Management.
The content enclosed is a voluntary association of the students and Han Mongolian Barbeque,
Steg working towards developing a common resource of knowledge and business insight.
Please be advised that this is a student project and used for learning development purposes.
The analysis and recommendations provided is therefore relatively limited and thus applicable
with no liability to the school or students involved.
All published data and information are strictly for informational intentions. The authors
confirm that information will only be available to the business owner as well as the lecturer,
therefore the paper certifies a high level of confidentiality; copies will be pertinent for
education purposes only.
Moreover, business decisions should not only be drawn out of the decisions made in this
report. Thus no reliance should be placed on any of the information and opinions unless
confirmed by qualified professionals.
Brig, May 18th 2010
S. Blau
M. Forch
F. Hidayat
A. McKenzie
Table of Contents
1.0 Executive Summary ........................................................................................................... 45
2.0 Scope ................................................................................................................................. 45
3.0 Key Findings ....................................................................................................................... 45
4.0 Implications ....................................................................................................................... 46
5.0 Conclusions ........................................................................................................................ 46
References ............................................................................................................................... 47
Appendix A - Perceptual Map.................................................................................................. 48
Appendix B - Statement of Sustainable Competitive Advantage ............................................ 51
Appendix C - Critical Success Factors ...................................................................................... 53
Appendix D - Resource Audit Analysis..................................................................................... 55
Appendix E - Core Competence Analysis................................................................................. 56
Appendix F - Linkages and strategic alliances analysis ............................................................ 57
Appendix G- Value Chain Analysis ........................................................................................... 58
Source Documents ...................................................................... Error! Bookmark not defined.
1.0 Executive Summary
Han Mongolian Barbecue has established their competitive advantage though providing
unique dining experience through consistent and reliable service quality. The owners of Han
Mongolian Barbecue must match up with the standards of the franchised partners of
Its1World throughout Switzerland.
2.0 Scope
This paper is focused on the internal factors of Han Mongolian Barbecue in order to critically
analyse key factors to their success and aspects that need to be improved. Therefore, certain
frameworks have been applied to investigate an in depth study of this restaurant. A perceptual
map, resource audit analysis, core competence analysis, as well as the value chain analysis
have been conducted to give an internal overview of the business. Additionally, the
sustainable competitive advantage and linkages and strategic alliances analysis have also been
examined.
The information was obtained though research from the Internet as well as a personal
interview with the owner, Mr. Pascal Berger. This has enabled the study to capture the holistic
overview of the business.
The objective of this analysis is to provide the owners of Han Mongolian Barbecue an internal
outline of its operations from an outside perspective and propose strategic recommendations
in order to maximize business operations.
3.0 Key Findings
1. Han Mongolian barbecue is a franchised brand by Its1World group, supporting four other
brands (Appendix B and D)
2. After 2 years in business the Han Mongolian Barbecue is already profitable (Personal Interview
see BP3).
3. The owners do not consider any restaurants in the surrounding area as direct competitors, as
their concept is unique. (Appendix A)
4. Management is highly educated with a degree form the hospitality school in Thun (Appendix
D)
5. The line workers, half- and full-time employed, are not required to have any experience in
gastronomy or service, but have to show dedication to service and the characteristics to build
and maintain a strong connection to the guest (Appendix A and D)
6. Although most of the marketing activities are done by the franchise company, the restaurant
focuses on personal contact to potential customers with distributing the business cards at
events, festivals etc.
7. The unique selling point is the variety of 60 ingredients and its unique concept in the area
which is difficult to duplicate (Appendix E)
8. To reach sustainable competitive advantage, HAN differentiates with their ‘all you can eat’,
personalized buffet style (Appendix B and C)
9. Moreover, direct and personal attachment with guests guarantees a unique eating experience.
(Appendix B)
10. Currently no formal strategic alliances exist outside of the franchise (Appendix F).
11. Limited advancements in technology are utilised within the restaurant as well as in terms of
external promotion. (Appendix G).
4.0 Implications
1. Limited awareness and acknowledgement of direct competitors in the surrounding area
jeopardizes the growth of the business.
2. Even though the concept with combining part-time and full-time employees does not have any
effect right now on the revenue of the business it could cause harm due to untrained line staff.
3. The manager uses marketing strategies according to the cultural customs of the region, but to
reach the national market, advanced marketing methods such as online marketing should be
established.
4. Strategic alliances with other restaurants or businesses would help to create a wider customer
base and to gain public awareness
5. Insufficient use of technology will hinder the business to grow in future
5.0 Conclusions
In the last 2 years the HAN Mongolian Barbecue was able to reach sustainable competitive
advantage by providing a unique and personalized dining experience. It is noted that the
strategic alliance with the franchise and close cooperation with regional businesses supports
Han’s market positioning. However, different aspects have to be carefully looked at and
taken into consideration in order to guarantee future growth. The areas recommended for
further reflection, are Marketing and Competitor Analysis.
References
Gascht. (2010). Restaurants. Retrieved May 3, 2010, from Gampel Bratsch Steg
Hohtenn: http://www.weibil.ch/feriae/beizae/
Haag, S. & Cummings, N. (2008). Management information systems for the
information age (7th ed.). New York: McGraw-Hill/Irwin
Hamel, G. & Prahalad, C.K. (1990). strategy - core competencies. Tutor2u. Retrieved
on May 17th 2010 from http://tutor2u.net/business/strategy/core_competencies.htm
Hit, A., Ireland, D., & Hoskisson, R. (2005). Strategic management, competitiveness
and globalisation: concepts and cases (6th ed.).United States of America: Thomson
South-Western.
Ireland, D., Hitt, A., & Vaidyanath, D. (2002). Alliance management as a source of
competitive advantage. Journal of Management, 28: 413 - 446.
Its1World. (2010). Its1World. Retrieved May 3, 2010, from Han Mongolian
Barbeque: http://www.itsoneworld.ch/Default.aspx?MenuId=14&sec=5
Porter, M. (1985). Competitive advantage, New York: Free Press, 33-61.
Scribd. (2009). Strategy Management. Retrieved May 4, 2010, from Strategy
Management : http://www.scribd.com/doc/7513870/Strategy-Management-15
Subramani, M., & Venkatraman, N. (2003). Safeguarding investments in asymmetric
interogranizational relationships: Theory and evidence. Academy of Management
Journal, 46: 46-62.
Quick MBA (2010). Strategic Management, Competitive Advantage.
Retrieved May 14, 2010 from http://www.quickmba.com/strategy/competitiveadvantage/
Appendix A - Perceptual Map
Unique Perceptual Map
The closer the brands are positioned to the space, the more competitive they are to each
other(Scribd, 2009). In this scenario, Kentucky Saloon, Rothis Western City and Han
Mongolian Barbeque are closely positioned. The outlet that is most unique is the Kentucky
Saloon. Han Mongolian Barbeque is perceived amongst them as the most future orientated.
This is due to their franchised business and locations throughout Switzerland(Its1World,
2010). It1World franchised brands include Nelsons, Lady Hamiltons, Piripiri and Sam’s Pizza
Land. There are 14 outlets combines under Its1World group. Eight of the 14 outlets are Han
Mongolian Barbeque. Figure 1 shows the locations of the brands.
Locations of ‘Its 1 World’ brands throughout Switzerland
Source: Its 1world
http://www.han.ch/Default.aspx?MenuId=72&sel=1&sec=5
Appendix B - Statement of Sustainable Competitive Advantage
Statement of Sustainable Competitive Advantage of the HAN Mongolian BBQ Restaurant
A Model of Competitive Advantage according to Porter
Ref. Quick MBA (2010). Strategic Management, Competitive Advantage.
Retrieved May 14, 2010 from http://www.quickmba.com/strategy/competitiveadvantage/
Resources
-
franchise; reputation
of the firm, brand
equity
-
proprietary knowhow: Swiss hotel
school
Value Creation
Distinctive
Competencies
Cost Advantage or
Differentiation Advantage
(see following table)
By considering Porter’s
value chain: creation of
more value than
competitors Lower costs and higher
differentiation (greater
benefits for customers)
Capabilities
- difficult to replicate
due to unique theme
of the restaurant
- difficult to get
another franchise for
the same area
Porter’s Sustainable competitive advantage
With above average performance, sustainable competitive advantage can be reached
Both can be more broadly approached or narrow, which results in the third viable competitive
strategy: focus
Cost Leadership
 HAN Mongolian Barbeque does not set out to become a low cost producer in its
industry
 All menus are served as a buffet with overall prices per person, however, the average
price for a buffet menu is quite high; An ‘A Discrétion’-Menu for CHF42.- and an all
inclusive menu for CHF67.Differentiation



Focus
HAN Mongolian Barbeque is a unique restaurant with an exceptional eating
experience in the area of Valais
The buffet style is widely valued by customers in the area of Valais
For the HAN Mongolian BBQ Restaurant, areas of differentiation are: the product

-
It can have two different kind of focus: differentiation focus and cost focus; hereby the
Han Mongolian BBQ relies on differentiation focus
Diversity of food choices (60 different ingredients)
Product differentiation: second income through club, which is located underneath the original
restaurant
“Our competitive advantage lies in our
ability to …”
“…provide our customer a personalized and
exceptional eating experience…”
“employing our unique…”
“…buffet style and theme which is supported
by the interior design”
“... direct and personal contact to all of our
customers, as well as a very young and
creative management.”
“maintained by…”
Appendix C - Critical Success Factors
Critical Success Factors
Success Factors
Business Viability
Strategic choices
Han Mongolian Barbeque
















Marketing

Swiss higher diploma qualification, knowledgeable in area
of business.
Franchised business with Its1World
High uniqueness in surround area, Valais.
Future orientated
Family friendly, prices reflect target market
Highly specialised on cuisine
Hospitality concentrated
Focused on providing the atmosphere of ultimate Mongolian
cuisine/culture
Personalized and customized service
Allowing the customers to be innovative
Experience orientated
Service quality and hygiene level up to highest standards
Systemized business processes
Respect guests, build relationships
Continuous learning experience for employees
Consistency
Franchised brand with Its1World
o Future marketing campaigns
o Print media

Resources&
Capabilities
Owner Qualities












o Focus groups within stakeholders
o Providing marketing cycle to all franchisees
Cross-selling with the different brands
o Nelsons
o Lady Hamilton
o Han Mongolian Barbeque
o PiriPiri
o Sam’s Pizza Land
Building ‘friendly’ alliances with other companies in Valais
Word of mouth technique
Events and promotion, personal approach
Augmented product: buffet/personalized platter; experience;
bar and club
Suppliers: franchised
Staff: combination of part time and fulltime staff
Family run business
Provide trainings and internal seminars
Orientation weeks
Line employees, no distinct qualifications needed
Swiss Higher Diploma from Thun Hospitality School
Family business, in cooperation with spouse
Appendix D - Resource Audit Analysis
Appendix E - Core Competence Analysis
Core competencies are necessary in order to create competitive advantage over other
companies. According to Hamel and Prahalad (2010) “companies may develop key areas of
expertise which are distinctive to that company and critical to the company's long term
growth.” For the “HAN Mongolian Barbecue” these areas of expertise can be described as in
the following table.
Benchmark
Regional
leader
In-competencies
(need for
improvement)
-
Threshold Competencies
Marketing to
-
WiFi
create awareness
-
Menu variety
-
Location right next
Core Competencies
-
more security
-
the Valais
-
Medium size
business (100 seats)
Family owned
business
to train station and at
main street through
Franchise gives
-
Unique concept of
Mongolian food
-
Personalized food
-
Special offers
-
Highly educated
Industry
manager (hotel
leader
school)
-
Good team spirit
-
Reasonable prices
-
High quality
standards
-
Personal contact to
all guests
Best in
class
Appendix F - Linkages and strategic alliances analysis
A strategic alliance is a cooperative strategy in which firms combine some of their resources
and capabilities to create a competitive advantage (Ireland, Hitt, & Vaidyanath, 2002). Thus,
as linkages between them, strategic alliances involve firms with some degree of exchange and
sharing of resources and capabilities to co-develop or distribute goods or services (Subramani
& Venkatraman, 2003). Linkages and strategic alliances are therefore those who are not
stakeholders but add value to the product being delivered. This includes co-operations and
partnerships, which can be very helpful for the purpose of becoming more successful,
innovative and reach more customers. Furthermore, capabilities and resources can be shared
to reach joint objectives or goals.
Han Mongolian Barbeque is part of a franchise, which operates under the entitlement of ‘its 1
world’, which further incorporates Sam’s, Nelson, Lady Hamilton, and Piripiri in Switzerland.
Thus in essence the operation of franchise is considered a form of strategic alliance, through
the development of opportunities and client recognition of the Han brand throughout
Switzerland. This is considered a successful network however limited in its application, to
broaden clientele. Currently no other formal strategic alliances exist outside of the larger
franchise ‘its 1 world’.
Appendix G- Value Chain Analysis
Value chain analysis is utilized in strategic review allowing firms to understand all parts of its
operations that both increase and decrease its value (Hitt, Ireland,
& Hoskisson, 2005). It is recognized that it is important to understand all these issues as the
firm earns above average returns only when the value it creates is greater than the costs
incurred to create that value (Porter, 1985). Therefore in essence the value chain permits the
creation of additional value without incurring significant costs during the process. The
analysis ultimately aims to enhance business operations and consequently competitive
advantage (Haag and Cummings, 2008).
The diagram bellow represents the elements of the value chain, separating them into both
primary and support activities.
Source: kbr consulting: http://kbrconsulting.com/methods/value_chain/porters_generic.gif
The following text and diagrammatical
Barbeque activities in alignment with the
format is an analysis of Han Mongolian
value chain, discussing both primary and
support activities. A value of + or – is given within the chart to define the stipulation of the
function and its implied added value or not.
Primary Activities
Inbound Logistics:
Inbound logistics is focused on materials handling, warehousing and inventory control used to
receive, store and disseminate inputs to a product. All products are purchased from the
franchise suppliers located in Zurich, at a reduced cost because of franchise agreements. Thus
stock quality is assured, and delivered directly to Han’s storage room, and the restaurant
further utilises a freezer to cooling system process. Stock is limited in its wastage as usage is
per guest and, used within two days of delivery. Thus quality stock and cost control is
ultimately ensured.
Operations:
Operations activities focus on the way all goods or services are prepared. It is concerned with
the actions necessary to convert the inputs provided by inbound logistics into the final product
form. Which includes quality management, assembly of food and the delivery process. Han
uses internal and external controls provided by the franchise. External controls from Han are
inclusive of quality control, which includes hygiene and product delivery standards. While
internal controls are done on a weekly basis within Han itself, which discus improvements is
service delivery. Han provides effectiveness and ensures hygienic standards through its on
demand product delivery.
Outbound Logistics:
This aspect of the value chain includes collecting, storing, and the physically distribution of
the final product to the customers. Examples of these activities include finished goods
warehousing, materials handling and delivery of all prepared goods and the accomplished
services. Within Han diversified and differentiated through the consumer personal selection of
food items, sauces and salad condiments.
Marketing & Sales:
Marketing and sales incorporates activities completed to provide means through which
customers can purchase products and to induce them to do so. To effectively market and sell
its products, Han utilises the franchises advertising and promotional campaigns of generic
franchise public relations, website and brochures. While on an individual scale the restaurant,
focuses on personal consumer contact advocacy as its primary mode of endorsement. Public
events within the Valais are also used on occasions. Han however does not have its own
website currently, as it is viewed as having limited impact.
Service:
This part concentrates mainly on after-sales, which is designed to enhance or maintain a
product’s value, through customer relationship management. This entails the engagement of a
range of service related activities, including, training and adjustment, to guest satisfaction.
Han approaches’ guest satisfaction through the use of consumer surveys on a random basis
used to assess quality and ideally ensure consumer retention.
Inbound Logistics
Operations
Function
All products are purchased from the
franchise suppliers at a reduced cost
because of franchise agreements.
Stock quality is assured, and delivered
directly to the storage room, and the
restaurant further utilises a freezer to
cooling system process.
Stock is limited in its wastage as usage is
per guest and, used within two days of
delivery.
Surveillance of inventory is limited, as
incoming stock is not counted nor is it
locked is storage
External controls are provided from the
Han franchise through quality control and
include hygiene and product delivery
protocol, which must be maintained to
ensure the franchise.
Internal controls are done on a weekly
basis, which discus improvements in
service delivery.
Value (+/-)
+
+
+
-
+
+
Outbound Logistics
Marketing and Sales
Service
Effectiveness and hygienic standards are
ensured through its on demand product
delivery.
Standardisation of presentation and
quantity cannot be controlled, as it is
buffet style.
The restaurant is diversified and
differentiated through the consumer
personal selection of food items, sauces
and salad condiments.
Personal intimacy is further gained
through direct contact with the chief and
manager at the grill.
The restaurant utilises the franchises
advertising and promotional campaigns of
generic franchise public relations, website
and brochures.
While on an individual scale the
restaurant, focuses on personal consumer
contact advocacy as its primary mode of
endorsement.
Public events within the Valais are also
used on occasions.
The restaurant does not have its own
website currently, as it is viewed as having
limited impact.
Consumer surveys are used on a random
basis to assess quality and ideally ensure
consumer retention.
Loyalty programs through the use of stamp
cards are used as a retention tool.
(Purchase 10 dinners and get the 11th
complementary).
The strength of customer relationship is
emphasised in the family orientation of the
restaurant and the Valais community.
+
-
+
+
+
+
+
-
+
+
+
Supportive activities
Infrastructure:
Firm infrastructure includes activities such as general management, planning, finance,
accounting, legal support, and governmental relations that are required to support the work of
the entire value chain. Through its infrastructure, the firm strives to effectively and
consistently identify external opportunities and threats, identify resources and capabilities,
and support core competencies. The company’s infrastructure is quite developed as
everything regarding the restaurant, the food and the music delivered is based on the Han
franchise concept. The Han management team have a good understanding on the Mongolian
concept and its diversity to adapt to Swiss clientele and thus the whole strategic plan of the
restaurant. Due to franchise standards all support operations are provided, thus the legal,
management, finance and planning formats are easily accessible.
Human Resource Management:
Human resource management activities involve recruiting, hiring, training, developing and
compensating all personnel. The Han franchise offers training at management and culinary
level to ensure standardisation of operational delivery. While, internal training is provided for
the service line staff, in adaptation the Han facilities and regional clientele expectations.
Technology:
Technology concentrates on activities completed to improve a firm’s product and the
processes used to manufacture it. Technological development takes many forms, such as
process equipment, basic research and product design, and servicing procedures. Han
endorses limited innovation is technology usage, through standardised applications of wireless
Internet, cash machine and credit card operations.
Procurement:
Procurement includes all activities completed to purchase the inputs needed to produce a
firm’s products. Purchased inputs include items fully consumed during the manufacture of
products. This is concerned further with the franchise agreement and its ownership
advantages. Ownership of the facilities capital assets ultimately belong to the franchise, while
basic procurement of stock and utilities is specific to Han.
Infrastructure
Human Resource
Management
Function
Well developed as everything regarding the
restaurant, the food and the music delivered
is based on the Han franchise concept.
The management team have a good
understanding on the Mongolian concept
and its diversity to adapt to Swiss clientele.
Due to franchise standards all support
operations are provided, thus the legal,
management, finance and planning formats
are easily accessible.
The Han franchise offers training at
management and culinary level to assist in
standardisation of operational delivery.
Internal training is provided for the service
line staff, in adaptation the facilities and
regional clientele expectations.
Incentive programs are offered by the
Value (+/-)
+
+
+
+
+
+
Technology
Procurement
franchise for improvements in sales.
Structured in house hierarchy of employees.
Limited innovation in technology usage is
endorsed. (Standardised applications of
wireless internet, cash machine and credit
card operations are used).
Ownership of the facilities capital assets
ultimately belong to the franchise. (Thus the
owner has little personal equity accessible in
the sale of the restaurant. However limited
liability is also assumed in this case.
Basic procurement of stock and utilities is
specific and fixable for the restaurant
manager.
+
-
+/-
+
UNIVERSITY CENTRE “CÉSAR RITZ“
Briefing Paper1: External Analysis: HAN Mongolian Barbecue, Steg-Gampel
Submitted on
Tuesday, 4th May, 2010
by:
182520
182512
504214
182515
Submitted to:
Mr Roger London
MGT460 Strategic Management
In partial fulfilment of the requirements for the Degree of Bachelor in international Business
in Hotel and Tourism Management
S. Blau, M.Forch, F. Hidayat, A. McKenzie
University Centre “César Ritz”
Englisch-Gruss-Str. 43
3900 Brig
Pascal Berger
Han Mongolian Barbecue
Kantonsstrasse
3940 Steg
4th May 2010.
Dear Mr Pascal Berger,
Re: Briefing Paper 1– External Analysis
Enclosed is an external analysis of Restaurant Aplin Han. The paper details the properties
external factors that influence the Hotels operational and strategic management process. The
paper endeavours to identify the attractors of Han’s industry and market foundation in current
and future terms.
The paper evaluates Han by defining: PESTEL, Porters Five Forces, Competitor Assessment,
Life Cycle Analysis and Strategic Group Assessment.
The assessment provides a clear overview of the trends and forces of the external environment
defining possible opportunities.
Again, we thank you for your cooperation and will keep you updated on the review’s process.
Best Regards,
S. Blau
M. Forch
F. Hidayat
A. McKenzie
Disclaimer
The following briefing paper for Han Mongolian Barbeque Steg is an analysis performed by
students of University Centre “César Ritz” in partial fulfilment of the requirements for the
Degree of Bachelor in International Business in Hotel and Tourism Management.
The content enclosed is a voluntary association of the students and Han Mongolian Barbeque,
Steg working towards developing a common resource of knowledge and business insight.
Please be advised that this is a student project and used for learning development purposes.
The analysis and recommendations provided is therefore relatively limited and thus applicable
with no liability to the school or students involved.
All published data and information are strictly for informational intentions. The authors
confirm that information will only be available to the business owner as well as the lecturer,
therefore the paper certifies a high level of confidentiality; copies will be pertinent for
education purposes only.
Moreover, business decisions should not only be drawn out of the decisions made in this
report. Thus no reliance should be placed on any of the information and opinions unless
confirmed by qualified professionals.
Brig, May 4th 2010
S. Blau
M. Forch
F. Hidayat
A. McKenzie
Table of Contents
1.0 Executive Summary ........................................................................................................... 67
2.0 Scope ................................................................................................................................. 67
3.0 Key Findings ....................................................................................................................... 67
4.0 Implications ....................................................................................................................... 68
5.0 Conclusion ......................................................................................................................... 68
References ............................................................................................................................... 68
Appendix A - PESTEL Analysis .................................................................................................. 70
Appendix B - Porter’s 5 forces ................................................................................................. 72
Appendix C - Competitor Assessment ..................................................................................... 73
Appendix D - Life Cycle Analysis .............................................................................................. 74
Appendix E - Strategic Groups Assessment ............................................................................. 76
Source Documents ...................................................................... Error! Bookmark not defined.
1.0 Executive Summary
This report will illustrate the strategic management of Han Mongolian Barbecue situated in
Steg, Valais. It is a Food and Beverage outlet focusing on the traditional method of dining in
Mongolia. The establishment is a restaurant, bar and club. It aims to provide a Mongolian
atmosphere through its cuisine and interior design. The target market for the business can be
classified to the locals as well as tourists seeking a unique dining experience.
2.0 Scope
The external environment to the business will be critically analysed of how the factors
influence the overall business operations. Therefore a PESTEL analysis (AppendixA),
Porter’s 5 forces (AppendixB), a Competitor Assessment (AppendixC), a Life Cycle Analysis
(AppendixD) and a Strategic Group Assessment (AppendixE) has been conducted. This
external analysis shows the current situation of the establishment and provides information
concerning the threats and opportunities, which facilitates changes within the company’s
strategy to improve performance.
3.0 Key Findings

Han Mongolian Barbecue is part of the Its1World group, franchised throughout Switzerland,
14 outlets in total, 8 of them are Han Mongolian Barbecue restaurants.

This restaurant in Steg is the only Han Mongolian Barbecue allocated in Valais.

Key competitor is Rothis Western City

Local Competitor is the “Buffet a la Gare”

The competitive advantage can be found in their unique concept

The major threats are on an economical basis, due to decreasing tourist numbers and
decreasing spending power of the Swiss population

The political and social factors influence the business positively, due to a political stability and
a potential increase of tourist numbers because of the Schengen Agreement.

Han currently does not promote itself through ‘green’ practices however it is important to
recognise its developed through the influence of the media and as a result “Tourism
businesses now, simply cannot afford not to be associated with sustainable operations
because fewer and fewer tourists want to stay at non-sustainably marketed places” (Mintel,
2010, p. 6).

Han is currently in the growth phase of the business life cycle as sales are still climbing, and
moderate market share and competition is visible.

The property has two restaurants within its strategic group; Rothis Western City and Buffet
de la Gare. Each offers similar facilities and marketing advocacy techniques, however
differentiated through menu type.
4.0 Implications

Mongolian cuisine is unique in its concept, however possibly leaning towards a niche market
unsuitable for the Valais population.

Owners do not see the key competitor as a real competition which might cause harm to the
business in future

Han need’s to develop environmental sustainable practices in an effort to survive and remain
competitive.

Diversity of the product within the strategic group is fundamental for the continued growth
of Han. The strategic group is seemingly similar in a number of areas, and without the use of
competitive marketing strategies the restaurants appeal will not be optimised.

By being aware of the threats and making use of them successfully, the business could alter
these into opportunities.
5.0 Conclusion
In conclusion the external environment holds a lot of threats for the business, and lack of
awareness could endanger Han Mongolian Barbeque. The awareness of direct competitors is
very important to be able to minimise pressure from the, and enforce successful growth. It is
evident that the Han concept may not however suit a wide enough segment of the Valais and
passers by. Furthermore it is questionable whether the concept is the right fit for the tradition
Valais target market.
References
CIA Factbook (2010). The World Factbook, Switzerland. Retrieved on May 10, 2010 from
https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html
Greve, H. (1999). Managerial cognition and the mimetic adoption of market
positions: What you see is what you do. Strategic Management Journal, 19, 103 –
123.
Hit, A., Ireland, D., & Hoskisson, R. (2005). Strategic management, competitiveness
and globalisation: concepts and cases (6th ed.).United States of America: Thomson
South-Western.
Hunt, M. (1972). Competition in the major home appliance industry: 1960 -1970
(doctoral dissertation, Harvard University); Porter, Competitive Strategy, 129.
Idea Sandbox. (2010). Remarkable ideas to grow your business. Retrieved May 2,
2010 from http://www.idea-sandbox.com/blog_images/life_cycle.png
Keiser. (2007, December 01). Switzerland´s new tourism ambassador. Swissinfo.
Retrieved on May 11, 2010 from
http://www.swissinfo.ch/eng/index/Switzerlands_new_toruism_ambassor.html
?cid=80237262
McNamara, G., Deephouse, D., & Luce, R. (2003). Competitive positioning within
and across a strategic group structure: The performance of core, secondary and solitary
firms. Strategic Management Journal, 24, 161 – 181.
Mintel. (2010). Sustainability in protected tourism areas: international, February.
More Business. (2010). The small business life cycle: 5 stages of small businesses.
Retrieved May 1, 2010 from http://www.morebusiness.com/small-business-life-cycle
Morgan, N., Pritchard, A. & Pride, R. (2004). Destination branding: creating the
unique destination proposition (2nd ed.). Oxford: Butterworth-Heinemann.
Peteraf, M., & Shanley, M. (1997). Getting to know you: a theory of strategic
group identity, Strategic Management Journal, 18, 165 – 186.
Schweizerische Eidgenossenschaft (2010). Key Data, Valais. Retrieved on May 10, 2010
from
http://www.bfs.admin.ch/bfs/portal/en/index/regionen/regionalportraets/wallis/blank/k
ennzahlen.html
“Swiss” (2008, December 16). Swiss still vacationing abroad despite downturn.
Swissinfo. Retrieved on May 10, 2010 from
http://www.swissinfo.ch/eng/index/Swiss_still_vacationing_abroad_despite_downturn
.html?theView=print&view=popup&cid=1017610
“Schengen benefits” (2008, December 12). Schengen benefits all Swiss citizens. Swissinfo.
Retrieved on May 11, 2010 from
http://www.swissinfo.ch/eng/specials/switzerland_schengen/Schengen_benefits_all_S
wiss_citizens.html?cid=653804
Stadtgemeinde Brig-Glis. (2009). Leben in Brig-Glis. Retrieved on May 10, 2010 from
http://www.brig.ch/
Appendix A - PESTEL Analysis
Macro environment of the HAN Mongolian Barbecue, Steg Valais
PESTEL Factors
Features
Opportunities / Threats
High / Medium
Political


Opportunity/ low

Opportunity/ high


Threat/ high
Threat/ medium

Threat/ medium

Threat/ high

Economical




Social

Technology



Environmental

Legal


political stability, safety and security within the
country is guaranteed and a good basis for high
tourism numbers provided
Member of the Schengen Zone, free movement
within the European Union – attracts more tourists
Rise in unemployment in the Valais
Decrease of spending power of potential customers/
decrease of disposable income
Decrease in tourist numbers – rely heavily on
tourists and groups
"Consumers are saving more and spending less."
Bank Julius Bär chief economist Janwillem Acket
(2010) (“Swiss”, 2008)
Influenced by the bad economy, Swiss choose to
stay at `home´ than travelling abroad (“Swiss”,
2008)
Highly skilled labour force (CIA Factbook, 2010)
Usage of cost control/ revenue management
Building of a highway directly next to the main
street/ HAN Mongolian Barbecue
Global warming is a threat mainly towards medium
altitude resorts (Keiser, 2007), therefore less ski
tourist are to be expected (Winterseason –
decreasing tourism numbers)
Non-smoking regulations in restaurants
Commune Steg/ Hohtenn offers really low taxes to
attract more businesses

Opportunity/ medium



Opportunity/ high
Opportunity/ medium
Threat + Opportunity

Thread/ medium


Threat/ medium
Opportunity/ medium
Between Sion and Brig is a construction of a highway planned. This highway would directly
pass by the HAN Mongolian Barbecue. This highway could be an opportunity and a threat at
the same time. Threat, because of the construction time, when the street will be blocked and
less people will pass by. Moreover a threat, that there is the danger, that everybody is just
passing by and does not stop anymore, because it cannot market itself anymore. Customers
cannot see the restaurant anymore; therefore big advertisement would be necessary.
However, it could be still an opportunity due to the fact that most probably more people will
use this street. Moreover, an opportunity could be during the construction time that workers
will be attracted for lunch at the restaurant. However, the construction of the highway will go
on, and nobody knows so far, when it will be finished, even not the municipally (Interview).
Due to the non-smoking policies in the Valais, the restaurant is threatened by not having any
smoking room. Therefore guests always have to sit outside, which is not really comfortable
when having bad weather conditions.
Increasing unemployment numbers is leading to an decrease of disposable income, especially
in the countryside/ in small villages and towns. Therefore it is a threat for the HAN
Mongolian Barbecue.
Technological improvement, such as a Micros machine is so far not available in the restaurant
and would be necessary.
Appendix B - Porter’s 5 forces
Features
High/Medium/Low
Established restaurants in the
surrounding area, customer
base, lack of real estate
properties
Medium
Themed restaurant opposite
of the business: Rotis
Western City, buffet
restaurant in near proximity,
however no direct competitor
of Mongolian barbecue
Medium/High
Power of buyers
High prices, experiential
dining, Swiss/Mongolian
cuisine, barbecue, wide range
of choices of restaurants
High
Power of suppliers
Franchised by the Han
Mongolian Barbecue through
Its1World group
Low
Rivalry
Variety choices of
restaurants according to
theme, no intense rivalry
amongst owners
Medium/High
Barriers to entry
Availability of substitutes
Appendix C - Competitor Assessment
Barbecue in Steg, the restaurant owners do not consider them as direct competitors due to
different themes and different concepts. Despite this ignorance, the neighbouring restaurants
have to be analysed to see HAN’s competitive advantage and its own weaknesses. Following
will be a competitive set analysis to gain more insight.
Rothis Western City (Key competitor)
Strengths:






Western theme
Experiential dining experience
Music-entertainment at week-ends
Offering different events
Open 365 days a year
Authentic design (exterior and interior)
Weaknesses:




More focusing on events than on food
Limited menu, just focusing on meat
High employee turnover
High prices
Buffet de la Gare (Steg Gampel; Local Competitor)
Strengths
 Authentic Swiss food
 Location at main street through Valais
 Reasonable prices for daily specials
Weaknesses
 No online presentation
 Poor service
 No direct differentiation to other traditional Swiss restaurants
Appendix D - Life Cycle Analysis
The life cycle analysis is the progression of a business as it moves through successive stages
from origin to eventual decline. Stages of a life cycle typically include development, growth,
expansion/shakeout, maturity, and decline/rebound. The life cycle analysis can assist in
understanding what is happening to the business and help develop an appropriate business
strategy for the product to ensure future business survival. The five stages are briefly outlined
below:
1. Development/Introduction: at this stage the business is being created and in the early
days of its operation.
2. Growth: during this phase the business has an initial time of negative profit, then
increased revenues show the firms growth. The ability to make profit and prove
market share is essential in this stage.
3. Expansion/Shakeout: at this point the business is gaining sufficient revenue; with no
doubt of survival the firm can expand its horizons. Through investments in property,
people, products and market segments. (Not always featured as a specific life cycle
stage).
4. Maturity: this phase represents business stability of even the most unforseen
circumstances. The business ultimately has the capital to maintain in volatile markets,
with temporary revenue declines.
5. Decline/Rebound: This is the decline in profits, the business at this stage with either
fail or cease operations to avoid further losses.
(More Business, 2010).
The following diagram illustrates the business life cycle with reference to four stages, and
highlights the key business and consumer behaviour underneath.
(Source: Idea Sandbox, 2010).
Han Mongolian Barbeque is a franchise of ‘its 1 world’, which operates four other branded
franchises; Nelson, Lay Hamilton, Piripiri and Sam’s Pizza Land. Han was established in Steg
in 2002, and has been under the current management since 2008. Over the eight years the
restaurant has augmented in popularity (market share) and operation (sales and focus) from
introduction/development phase by the initial managers to its current phase; growth.
Through continued growth and achieved market share in strategic operations Han will
ultimately expand into the shakeout or maturity phases of the business cycle, providing even
more profit for future stability prospects.
Appendix E - Strategic Groups Assessment
A strategic group is a set of firms that have similar strategic dimensions and use similar
management strategies (Hunt, 1972). Performance leader strategies within this group are
parallel to other companies within the group, yet maintain strategic distinctiveness to gain and
sustain competitive advantage (McNamara, Deephouse & Luce, 2003). It is noted that
competition within a strategic group is greater than with companies outside of that group.
The extent of product quality, distribution channels, customer service and technological
leadership are some examples of strategic dimensions that are generally treated similarly
within the group (Hit, Ireland & Hoskisson, 2005). Furthermore “organisations in a strategic
group occupy similar positions in the market, offer similar goods to similar customers, and
may also make similar choices about production technology and other organisational features”
(Greve, 1999). Therefore membership within a strategic group helps define certain
characteristics of a firm’s strategy.
The strategic groups assessment is used to determine position, competition and profitability
within the industry (Peteraf, M. & Shanley, M, 1997). They are also used to help understand
a company’s competitive actions and responses to strategic dimensions. Several implications
exist through strategic groups; these are as follows:
1. Similar products, and consumers creates heavy competition and the higher the rivalry the more
threat to a firms profitability
2. Strengths of the five forces differ across strategic groups
3. The closer the strategies within the strategic group, the greater the likelihood of rivalry (Hit et
al., 2005).
Ultimately the understanding of primary competitors means that a firm can formulate and
implement the suitable strategies.
The following is the strategic groups assessment for Han Mongolian Barbeque in Steg
configured to stipulate specific strategic dimensions.
Product or Service Diversity:
There are 15 restaurants in and around Steg ranging in size, facilities and cuisines. As
discussed in the competitor analysis it is evident that Rothis Western City and Buffet de la
Gare are within the same strategic group, with regard to theme differentiation and service
style. The competing restaurants offer product diversity through the following:
Rothis Western City
- Western theme
- Live musical entertainment
Buffet de la Gare
- Authentic Swiss cuisine
- Buffet style service
Han Mongolian Barbeque - Mongolian theme
- Cooking style
These restaurants are competitive through central geographic location however Han’s
diversity of cuisine creates a seemingly different appeal to the area.
Geographic Coverage:
The geographic coverage of the restaurants within the strategic group is seemingly similar.
Each restaurant attracts consumer’s form within Switzerland, specifically the Valsis and
tourists passing by. Thus the strategic group reflects a relatively minimal market, however it
is estimated that each is a seemingly large threat to one another. The small geographic market
coverage suggests possibilities for greater competition within the strategic group.
Market Segments Served:
The Swiss market is Steg’s primary market segment, thus it is relatively narrow. All three
restaurants within the segment attract similar markets, with little suggested effort to go
outside the current Valsis resident market.
Distribution Channels:
The distribution of sales through marketing advocacy is questionable for the strategic group,
which is outlined within the table below.
Rothis Western City
- Own web site
Buffet de la Gare
- No online presents
Han Mongolian Barbeque
- Franchise website only
- Personal contact with people of the Valsis
The limited use of online distribution is perhaps a reflection of the restaurant industry slower
development in of online presents and the market that the strategic group is targeting.
However the distribution channels may become an essential element in consumer decisionmaking of the restaurants within this strategic group in the future.
Extent of branding:
Both Rothis Western City and Buffet de la Gare are individual in operation and neither
belongs to a broader branded group, they are family run and seemingly rely on the regions
residents.
On the other hand Restaurant Aplin Han belongs to the franchise Han Mongolian Barbeque,
which is under the broader management of ‘its 1 world’ a management investment company
that features four brands: Nelson, Lay Hamilton, Piripiri and Sam’s Pizza Land. The
application of the restaurant to a largely popular franchise within Switzerland givens an
overall competitive advantage and established market share purely as a result of brand
recognition.
Marketing Effort:
The strategic group reflects comparable marketing strategies year round, which specifically
includes minimal national promotion, other than direct consumer advocacy with regional
consumers. It is not directly evident that any of the restaurants within the prescribed group go
further in advocacy efforts towards possibilities of local sponsorship, fairs or competitions.
Thus the marketing effort is standard, with neither gaining a greater market share, by way of
standout/ experimental marketing opportunities.
Vertical Integration:
Strength of both Rothis Western City and Buffet de la Gare is by virtue of the reseller
network, thus neither attains an advantage through vertical integration. However Restaurant
Aplin Han achieves integration through the franchises suppliers, which is beneficial reducing
costs, and increasing the entities power in the marketplace.
Quality (point of difference):
It is evident through research that Buffet de la Gare holds tradition, and family characteristics
at the centre. While both Rothis and Han endeavour to seek difference by theme of design and
cuisine.
Tech Leadership:
No specific technical excellence and innovation is clearly defined by any of the hotels within
the strategic group. This is perhaps due to the traditional nature of the region and culture as
well technology is conceivably not essential in the attraction of the targeted market.
Relationship to influence groups:
The restaurants within the strategic group have no affiliation with any governmental tourism
corporate group. Possible support through these services would provide a great source of
consumer reference and enhance the restaurants; reputation and market share.
Size of organisation:
The strategic groups maximum guest numbers are similar, thus economies of scale is minimal
in the functional operation of each restaurant.
The following is a diagrammatically format of the strategic groups assessment.
Category
Product
Service
Diversity
Geographic
Coverage
Market
Segments
Assessment
Similar differentiation in theme concept and service style.
Han Mongolian Barbeque
or Mongolian theme
Cooking style
Buffet de la Gare
Rothis Western City
Authentic Swiss cuisine
Western theme
Buffet style service
Live musical entertainment



Seemingly similar.
Swiss consumers, specifically the Valais
Tourists passing by
Thus the strategic group reflects a relatively minimal market,
however it is estimated that each is a seemingly large threat to one
another.

The Swiss market is Steg’s
market segment
and the strategic groups primary
All three restaurants within the segment attract similar markets,
with little suggested effort to go outside the current Valsis
resident market.
The distribution of sales through marketing advocacy is
questionable for the strategic group with limited online presents.
Han Mongoligan Barbeque
Franchise website only
Personal contract with people of the Valsis
Rothis Western City
Buffet de la Gare
Own web site
No online presents
Served
Distribution
Channels

Extent
Branding
of


Marketing
Effort


Vertical
Integration


Quality

Both Rothis Western City and Buffet de la Gare are individual in
operation and neither belongs to a broader branded group, they are
family run and seemingly rely on the regions residents.
Restaurant Aplin Han belongs to the franchise Han Mongolian
Barbeque, which is under the broader management of ‘its 1 world’ a
management investment company that features four brands: Nelson,
Lay Hamilton, Piripiri and Sam’s Pizza Land.
The strategic group reflects comparable marketing strategies year
round, which specifically includes minimal national promotion,
other than direct consumer advocacy with regional consumers.
Thus the marketing effort is standard, with neither gaining a greater
market share, by way of standout/ experimental marketing
opportunities.
Strength of both Rothis Western City and Buffet de la Gare is by
virtue of the reseller network, thus neither attains an advantage
through vertical integration.
Restaurant Aplin Han achieves integration through the franchises
suppliers, which is beneficial reducing costs, and increasing the
entities power in the marketplace.
Buffet de la Gare holds tradition, and family characteristics at the
centre.
Both Rothis and Han endeavour to seek difference by theme of
design and cuisine.
No specific technical excellence and innovation is clearly defined
Tech
by any of the hotels within the strategic group.
Leadership
Relationship to The restaurants within the strategic group have no affiliation with
any governmental tourism corporate group.
Inference
Groups
The strategic groups maximum guest numbers are similar, thus
Size
of
economies of scale is minimal in the functional operation of each
Organisation
restaurant.
Restaurant Aplin Han’s strategic group inclusive of Rothis Western City and Buffet de la
Gare are focused on the Valsis market, and all maintain differentiation through cuisine
selection with similar service quality.
Restaurant Aplin Han has diversified itself through a contemporary theme and franchise
affiliations, while the competitors remain standardised from a global perspective. Seemingly
this diversification and innovation of concept to the area gives Restaurant Aplin Han
competitive advantage. Further competitive advantage could be gained through strategic
marketing, in distribution channels and geographic coverage to influence a greater market
share.