B120 Tma01 Essay

871 Words4 Pages
Informal report Part 1 Concepts from Session 2, The External Environment (B120, Book 1) (a) Issues found at The Lodge Bistro Chain were: * Lack of dealing with growing competition and increasingly threatening external environment. With a rise in the amount of cafés and restaurants it is essential for managers to be creative and competitive in order to attract customers. * Weaknesses in CEO’s leadership and individual managers – Using a Laissez-faire style leadership(Cameron and Bridge, 2012) is clearly not working with some of the managers, giving them more autonomy without proper supervision in place can damage the Lodge Bistro chain’s reputation. * Falling standards, meeting agreed targets rather than how they were achieved, high staff turnover, perhaps due to lack of motivation resulting in new staff leaving after being trained, furthermore putting pressure on existing staff and managers. Word count: 120 (b) The Open University (2012, p17) cite: ‘’A key success factor for any type of business is an accurate understanding of the external environment on which it operates. External environment can be defined and analysed using the STEEP model’’. Sociological factors The Bistro chain décor and menu are outdated. A more modern French décor and a creative menu can help grow your customer base and attract younger customers. Technological Internet has become part of our lives. By designing a website customers can look at the menu and offers online and leave feedback. Also free Wi-Fi in the café can be beneficial for the business. Economic factors With the economy not doing very well, price plays a big role in customers coming in; an introduction of early bird menus and 2 for 1 offers will help attract more customers. Environment Factors Open University (2012, p 21) states: ‘’Some customers are willing to favour green organisation which may

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