External and Internal Analysis

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Running Head: External and Internal Analysis External and Internal Environmental Analysis Strategic Planning & Implementation 581 April 16, 2012 Dr. Robert Chiodo Salvo’s Bar & Grill External and Internal Environmental Analysis Introduction Salvo’s Bar & Grill will be a new establishment in Long Beach, California. Stephen Salvo the owner and operator of Salvo’s Bar & Grill, is opening the business by taking over a current bar named Iguana Kelley’s. As restaurant business declines due to current economic conditions, consumers still have resources to have a cocktail with friends and associates. A key to having a successful business in hard economic times is to offer what the customer wants and more. A business knowing their internal and external environment will give the business competitive edge of their competition. External Analysis A company’s remote environment is based off of factors that go beyond a businesses operating situation. The factors are economic, social, political, technological and ecological factors (Pearce & Robinson, 2011). Under the remote environment, one of the most important factors of owning a bar in Long Beach, California is the political factors. The political factors are so important because of the city’s regulations on receiving a new liquor license. Currently there is a waiting period in the city of Long Beach for receiving a liquor license for a new establishment. However, if you are purchasing an establishment that currently holds an existing liquor license, it may be transferred from one person to another. This process takes around seventy-five days to complete ("Alcohol Beverage Control", 2011). Another political factor in a company’s remote environment is that the business has to keep into account other regulations in place by state and federal authorities. Not only is a liquor
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