External factors (1).docx

External factors1.What are the most important demographic, technological, political-legal,competitive trends and social-cultural trends affecting my brands and my customers?The most important demographic trends that heavily impacts Georgian restaurant is Kirksville since the target customers of this business is local residents of Kirksville and students of Truman State University. Due to the variety of cushions in Kirksville, the Georgian restaurant tries its best to accommodate the demands of different taste. The social culture of Kirksville is not very highly educated, so the Georgian restaurant will be a cafe-restaurant where offers quick and delicious food in a relatively competitive price. 2.How are local, regional, national, and global economic trends likely to affect mymarketing plan?Since Georgian restaurant is in the restaurant business, local economy heavily impacts the business. Locally, when the economy is good, people are more generous with spending money on food. Of course, since the Georgian restaurant is designed to be a cafe-restaurant, it can do well in many economic situations. When the economy goes negative, since the Georgian restaurant offers good food with competitive price, customers will still be attracted. After all, although the business of Georgian restaurant is intensively related to the local economy, the business can tolerate changes in the economy, whether good or bad, due to the competitive price and great quality the restaurant offers to its customers. The business of Georgian restaurant relates to national economic trends as well, though not as strong as the local economy. Most of the impact from national economy to the Georgian restaurant comes from the general impact from national economy to the local economy. That is, when the national economy goes well, the local economy will also do good, so people are more likely to spend their money. Meanwhile, Georgians uniquely different combination of spices are likely to attract more tourists when the national economy is doing well. Similarly, the global economy has an impact towards the Georgian restaurant, but not very significantly at this point.3.What are the latest competitive trends, and which ones require immediatemarketing attention?Potentially, other restaurants may open in the same area offering similar products. The ones require immediate marketing attention is how to differentiate the Georgian restaurant from the existing restaurants nearby. 4.What industries and companies might present future competition?The restaurant industry has always been competitive. Nowadays, not only the traditional restaurant industry, but also the delivery industry may present future competition to the Georgian restaurant. Besides the traditional restaurant business, which has similar setting to the Georgian restaurant, the food delivery industry has various ways to impact the Georgian restaurant. First, many restaurant has its own delivery. This may divide apart of the customers who do not have strong wills to travel for the restaurant. Also, many delivery businesses have partnership with restaurants, such as Foodler and Grubhub. The delivery businesses may have promotions that impacts the traffic of the restaurant. 5.How quickly are changes occurring in the external environment?The changes occurring in the external environment regarding the Georgian restaurant is rapid in general. The customers feedback changes every time they visit. The Georgian restaurant has a dominant control on this change. The Georgian restaurant can monitor this change through asking reviews, viewing review websites such as TripAdvisor, Yelp, and Google, setting up an advice box.etc. From this, the Georgian restaurant also learns the trend of taste from customers. Meanwhile, external changes occur when similar business open or close. When a similar restaurant opens nearby, the competition require the Georgian restaurant to differentiate itself from the competitor so that the Georgian restaurant can remain its uniqueness. When a different restaurant opens nearby, it could be positive and negative. On the positive side, a new restaurant opening nearby may bring more people over, and the increase of traffic helps the Georgian restaurant to be exposed and gives the Georgian restaurant free marketing. On the negative side, a new restaurant opening nearby may take the market share from the Georgian restaurant. This change occurs during a period of time, usually few weeks. Additionally, the trend of what people desire to eat may be impacted by media and news. When a positive report about the Georgian restaurant and/or the kind of food that the Georgian restaurant offers come out, the Georgian restaurant will be more popular. However, even if a negative report about the kind of food offered by the Georgian restaurant, the business will be negatively impacted. After the report comes out, customers preference changes overnight. 6.What opportunities and threats do external factors pose for my organization?Currently, Kirksville has a shortage of restaurant business. With this opportunity, the Georgian restaurant can take advantage of the market demand to occupy market shares and have a relatively high profit margin. Also, many students from Truman University are nearby. They give the Georgian restaurant a great opportunity because college students are more likely to dine out since they have less time in cooking. Meanwhile, opening a restaurant in Kirksville is cost-efficient. This indicates that the opening of Georgian restaurant will not face many financial challenges. In this way, it is not difficult to have a good cash flow at the beginning of the business. Opening the Georgian restaurant in Kirksville also faces threats. Other business people can also open a similar restaurant nearby. Opening a new restaurant is not expensive in Kirksville. This means that the restaurant industry in Kirksville has an easy entry on finance. Many people, if they want to, can open a restaurant. Meanwhile, the population nearby also attracts competition in this area. The students from the university are great target clients for the restaurant business, and therefore many competitors want to compete in this area to take some market shares. Also, the Georgian restaurant does not have unique business model or product, at this point, makes it irreplaceable. For the restaurant industry at the lower price end, customers usually can find substitutes. This is mostly determined by the nature of restaurant industry. What the Georgian restaurant can do is to offer not only good quality food with competitive price but also a great service. With all this, the Georgian restaurant differentiates itself from other restaurants. 7.What risks would my organization be willing to accept when dealing with these opportunities and threats?The organization is willing to accept most of the risk when dealing opportunities and threats in the business. The restaurant industry has various risks in general, yet the Georgian restaurant is estimated as a low risk business in Kirksville. Financially, opening a new restaurant is cost efficient, so the risk on finance i