Ward (2011) defines a mission statement as a concise description of an organisation's essential purpose, and the business mission is described as a mission statement in relation to its customers, products or services or philosophy among others (hjventures 2003).Â
Accordingly to the official web site O'Neill's, (2011) the mission and mission statement are to offer a service of premium food with special offers and an extensive drinks range with all favourite Irish draughts, and where the team members and managers are essential in delivering the best service and experience for our all our customers.
O,Neill,s business objective is a link between the mission and the strategies that the pub will take to accomplish the aim proposed. (Ehow 2011)
The overall objective of the pub is to satisfy a need for the people who work around. The pub is exclusively surrounded by offices and other business. The segment customers are business man aged between 25 and 65 years old who like to have lunch and drinks in a nice atmosphere to enjoy a good time with their colleagues.
Get your grade
or your money back
using our Essay Writing Service!
The specificity objectives are:
Staying in the market in a time of recession and being prepare for economic growth.
Provide the best choice, value for money, for food and beverage.
Provide a wide range of food and beverage.
Anticipate and meet customer's demand.
Offer good customer service.
Establish an effective and accessible marketing strategy and to obtain the maximum profit.
Maximizing shareholder value and profitability.
Innovate constantly, to avoid fail or to be behind of the competence.
BUSINESS PERFORMANCE ANALYSIS
2.1 SWOT analysis
SWOT analysis (Strengths, Weakness, Opportunities, Threatens) is the chosen strategic tool to determine the present situation of the pub. It identifies the pub's threats and opportunities arising from the environment and internal strengths and weaknesses.
The main objective of this analysis is to enhance the strengths of the pub to take advantage of opportunities, to offset threats and correct weaknesses. According to Hill and Jones (2004) it is used by managers to design a business model which help the pub to get a competitive advantage in its industry increasing profitability and maximizing the challenge to survive and develop.
Stutely (2007) states that it is important to identify, analyse and understand the internal and external influences to exert control over them and create an advantage over the competition. These include, among other, current and potential competitors and current and prospective customers.
Stutely (2007) argues the need to write a SWOT analysis to add great value to the written plan. In addition, he indicates the importance to execute it, to facilitate to make a strategy and even help to perform a risk analysis of the business plan.
The threats and opportunities are identified in the exterior of the pub, hence the need to:
Analyze the major competitors and the competitive position of the company among them.
The market trends
The impact of the globalisation
Macroeconomic social, governmental, legal and technological factors affecting the sector.
The strengths and weaknesses are identified in the internal structure of the pub, so it is evaluated:
The quality and quantity of the resources available to the pub.
The efficiency and innovation in the actions and the procedures.
The ability to satisfy the client.
Strengths are those positive aspects or distinctive attributes or competencies which provide a significant market advantage or upon which the pub can build. (Mullins, 2002)
The food and drinks prices are competitive; they are the lowest in the area.
Shortly staff involved in the operation. Four employees full time and the manager are enough to run the pub, which supposes a low expense in staff.
The pub offers two floors open to the customers. The basement is intended for private parties to give customers privacy.
Excellent strategic location, the pub is located in one of the main streets of "The City".
The pub offers a range of foods at low prices.
The people know the existence of the pub cause for its location and because the pub is running for long time.
Always on Time
Marked to Standard
The appearance of the pub is particular; it is decorated in an Irish atmosphere.
Weaknesses are those negative aspects or deficiencies in the present competencies or resources of the pub, or its image or reputation, which limit its effectiveness and which need to be corrected or need action taken to minimize their effect. (Mullins, 2002)
The food is not high quality
The food is made in microwave or on a grill.
The pub does not have a good reputation among the people and it is considered as a low standing pub.
High staff turnover, this hampers the efficiency of service offered to customers and produce more recruitment and training costs.
Opportunities are favourable conditions and usually arise from the nature of changes in the external environment. (Mullins, 2002:141)
The country is in recession and people do not want to spend much money on food.
Competitors offer the same drinks more expensive.
High demand to take lunch and drinks after work by the local office workers.
The pub offers the opportunity to take lunch and drink at low prices in an expensive area.
The pub is situated close to the offices. The people can make the most of their breaks.
The pub is located in an area with people who have high incomes.
The pub is considered as a national institution.
Threats refer to unfavourable situations which arise from external developments likely to endanger the operations and effectiveness of the pub. (Mullins, 2002:141)
High number of competitors in the area. There are lots of pubs offering similar services at different prices and there are also nationally recognized franchises such EAT or Pret a Manger which offer food to take away.
Worsening economic situation and recess of the people eating out or going to the pub for a few drinks after work.
The pub is a business easy to imitate.
Incursion of new pubs with similar characteristics.
PUB COMPETENCE ENVIRONMENT
The map shows where is located O'Neill's and the red dots are the rest pubs nearby.
BUSINESS STRATEGY AND MEASURES
According to Stutely (2007) once the mission statement and business objectives have been defined and the strengths, weaknesses, opportunities and threats have been identified, the strategies and measures to be incorporated to the pub to create a successful business.
This means that in formulating the strategy for the pub involves three major steps:
Determinate where the company is: the external and internal situation has already been analysed through the SWOT analysis.
Determinate to where the company want to go: the mission and objectives has already been established.
Determinate how to get there: it is to say, the business-level strategy. The series of decisions to be taken, based on factors such as:
The target is business man aged between 25-60 years old.
They have the need and want of receive a service for food and drinks.
It will be satisfied offering a excellent customer service and a low cost products.
As Hill and Jones (2004) state these last questions are the base to choose a strategy because they are going to help us to get a competitive advantage against the other pubs. It is how the pub plans to create a value for customers.
3.1 Business strategy
The current strategy used by O'Neill's is Cost Leadership. It has consisted of being a cost leader in the area, for what it has leaded to realise actions that have managed to give a service at lowest cost, for example, it has not offered table service, which supposes save expenses in staff or offer not high quality food. Therefore, it had have an impact on that O'Neill's does not have a good reputation in concern a customer services although it offers food and drinks with an excellent price-quality relation.
The strategy of the pubs around is mostly differentiation. Its strategy is to provide a differentiation in customer service. It is excellent, the pubs provide table service, provide a personal waitress for parties and the staff is highly qualified. In exchange for this differentiate service, customers are willing to pay a higher price for food and drinks. For example, the average of a burger with chips is £13, when O'Neill's offer it for £3.99. Must be taken into account, these pubs offer a higher quality food. In addition, some of them change the menu weekly.
This Essay is
a Student's Work
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.Examples of our work
For these reasons it is recommended to O'Neill's to follow an integrated strategy of cost leadership and differentiation, in order to maintain the current clients, who will enjoy a better service and catch customers from the competition, due to the service will be improved and it will also create a wide difference of prices.
Thus, Or, Neill, s will offer two types of values to the clients. On the one hand, O'Neill's will offer some differentiated features, as excellent service to the client and some cost leadership characteristics, as a low price.
It is not recommended to raise the prices at the moment, it is necessary to bear in mind that it is a moment of recession and as Knox (2009) states, the pub industry is one that has more problems to recover, and as Hope (2009) says the number of pub closures is growing very rapidly. It is recommended to use this strategy but keep prices until the economic situation improves.
It is recommended to keep the following measures:
Provide table service, thereby the customer service is improved and staff will receive more gratuity, increasing their income and motivating them to do better their job and avoiding the high turnover.
Give short courses to the staff to get better knowledge about the products that O'Neill's offers, in order to be able to make better recommendations to the customers. Thus, they will be more confident doing their job and it will increase the quality of the customer service.
Make a communication plan aimed to the customers about the products offered by O'Neill's, in order to remind customers that the pub offers a wide menu and they have available seven traditional dishes for £3.99. Highlighting that the pub offers an improved customers service, included table service. It will be realised with the customer database that O'Neill's, already has by previous promotions and with an A board at the door of the pub.
Keep focus in communication with customers, catching the data of new customers who visit the pub and send them promotions as a reminder in order to have them back to the pub.
Use social networks for the same purpose
Make promotions of Irish brands that O'Neill's offers and the competitors does not.
Make periodic controls to rectify the possible shortcomings of the strategy.
CONTRIBUTION OF SMALL BUSINESS IN UK ECONOMY
Small businesses in UK have a great contribution to the overall productivity of the British economy. They buy the products of other companies and generate economic growth. The small businesses contribute to the national production and generate expenses and profits. There areÂ 4.8 million small businesses in the UK (up fromÂ 4 millionÂ in 2003) 
Small businesses contribute to employment generation, providing an opportunity for minority groups and unskilled labour. Small and medium-sizedÂ firms employ more than 59.8 per cent of the private sector workforce. 22.8 million people work in small and medium-sizedÂ firms1
These contribute to gross domestic product with their activities. Small firms collect and pay Tax, NICs, VAT and other dues which help pay for public services1
These contribute to productivity growth as these companies have the ability to adapt more effectively their products and services to consumer needs. Small firms contribute more than 49 per cent of theÂ UK turnover1
They offer economic dynamisms and flexibility because they have a higher level of flexibility to adapt to new market requirement. Furthermore, these companies have minor investments in equipments and it facilitates the adoption of new technologies. 64 per cent of commercial innovations come from small firms1
It also makes a small contribution to international trade.
These companies are a source of initiative, they are the first step to build a big company. Over 500,000 people start up their own business every year1
Hill, C. & Jones, G. (2004) Strategic Management Theory: an integrated approach. 6th ed. Boston: Houghton Mifflin.
Mullins, L. (2002). Management and Organisational Behaviour. 6th ed. Essex: Prentice Hall.
Sutely, R. (2007). The definitive business plan: The fast-track to intelligent business planning for executives and entrepreneurs. 3rd ed. Glasgow: Prentice Hall.
Hope, C. (2009), "Record six pubs closing every day due to economic downturn", Telegraph [Online]. Available from: http://www.telegraph.co.uk/finance/recession/4283250/Record-six-pubs-closing-every-day-due-to-economic-downturn.html 19 January 2009(accessed 05 March 2011)
Knox, C. (2009), "New measures to help man the pumps", The journal [Online]. Available from: http://www.nebusiness.co.uk/business-news/interviews-with-business-people/2009/12/02/new-measures-to-help-man-the-pumps-51140-25296611/3/ 2 December 2009 (accessed 06 March 2011)
EHow (2011) Available from: http://www.ehow.com/about_5068177_definition-business-objectives.html (14 February 2011 accessed)
Hjventures. Available from: http://www.hjventures.com/glossary-business-mission.html (13 February 2011 accessed)
Nigelfrith (2011) Small Businesses are the lifeblood of the UK economy, Nigelfrith.com. Available from: http://www.nigelfrith.com/small-businesses-are-the-lifeblood-of-the-uk-economy/ (19 March 2011 accessed)
O,Neill,s (2011) Available from: http://www.oneills.co.uk/ (11 February 2011 accessed)
Socialanimal (2011) Available from: http://www.socialanimal.com/pubs/ (12 March 2011 accessed)
Ward, S. (2011) Mission Statement, About.com. Available from: http://sbinfocanada.about.com/od/businessplanning/g/missionstatemen.htm (10February 2011 accessed)