In the epoch of various occurrences such as globalization, industrialization and technological advancement, the international marketplace including the particular areas and systems is overly affected by the processes intrinsic to these occurrences. Among the observable impacts of such emerging conditions in the business world is competition. Competition among the various industries in every given economy is rapid and stiff. It is as if ‘survival of the fittest, extinction of the weakest’ phenomenon. Today, as various industries are aiming for competitive advantage and sustainable development among its management and operations, there are numerous actions that are being implemented and are directed to the eventual success and growth of the company’s assets. In competition, there is motivation in every business to improve and develop their objectives. For an enterprise to succeed in global competition, hence, there is a continuous plan to develop marketing techniques such as innovation of new products with higher quality than its competitors.
Aside from competition, there are countless factors that affect the overall conditions of business like customer satisfaction, loyalty, service (brand) quality, and others. Initially, it is determined that the ability of a business to stay in significant period of time in the industry where it belongs is on measure of its success. This means that being able to survive is a necessity and survival translates to the ability of a business to compete. Since the 1980s, marketing strategies have played key roles in planning to overcome challenges. It is believed that this line of thinking will continue to direct the activities of business into the 21st century (Paley 1999). Accordingly, every business is subject to factors that affect its function as a whole. These factors are the ones attributed for the success or even the failure of a business (Oliver 1997). As a result, there are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the marketplace and address the needs of clients and changes in terms of marketing and management. In a profit-making business, the business organization obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit (Moschis 1994).
However, there are several other factors that are relevant to consider when talking about the future of the business. Among these are the internal as well as external conditions affecting the overall operations and its management. Basing it from the existing knowledge of management, internal conditions such as management, marketing, financial capability, human resources, business strategies, etc. are supplemental factors to the overall business status. On the other hand, external conditions like target market, competition, economic environment of the business, legal matters and legislations, emerging approaches, relevant occurrences (e.g. threat of terrorism, outbreak of diseases), etc. are sample determinants of business progression or downfall.
In any business like food and beverage industry, it is important to recognize the most appropriate strategy to be used in promoting the deliberate goals. With this, the management‘s decision in conceptualizing the strategy to be utilized in all the operations of the business is crucial. The position that the management will take in relation to this matter can make or break the overall stature of the firm. As a universal fact, it is natural for every goal-oriented business to plan or learn new things that will facilitate its problem-solution process, expansion and eventual progression. So, it is safe to claim that relevant marketing strategy, planning, and learning within the organization can improve its adaptability and overall competitive advantage.
BACKGROUND OF THE STUDY
Today, companies within and outside the food and beverage industry particularly restaurants are striving to deliver not only their products and services but also high or even world class quality and satisfaction that will lead to increased customer loyalty and market share. The significance of customer satisfaction and its relationship with service quality, occupancy rate and profitability has long been exhorted by both management experts and researchers in the tourism field (Callan, 1994; Gundersen, Heide, and Olsson, 1996). Customer satisfaction and service quality in the restaurant business have been precipitated by the need to position organizations competitively in the marketplace. The positioning in the Hong Kong’s restaurant industry propelled marketing managers to build brand image for their brand names in order to create brand loyalty among its customers. However, in line with this propelled brand-building initiative organizations must address on many issues in order to create brand loyalty among its customers and improve its position.
On the given issues, organizations like Tao Heung Seafood Hotpot Restaurant require a massive amount of skill in specialized marketing – that includes establishing sales quotas, establishing relationships with tourists and local agents and the corporate tour and even travel departments of major corporations, and more. Specialized management and accounting skills are also called for and in these kinds of issues as many organizations are searching for possible solutions in challenging these events.
Tao Heung Seafood Hotpot Restaurant: a Corporate Background
The Hong Kong Restaurant Industry in 2001 on Statistical Facts
An article published by Eurofood on March 14, 2002 presented the statistical figures on Hong Kong food sales. In the same report, it highlighted the decrease of sales among restaurants as to compare with the previous terms. Here are the important facts reported by Eurofood (2002):
- Hong Kong restaurant receipts fell 2.5% to HK$56.4 or 8.78bn (euro) last year. The reason on this depreciation is attributed to the diners’ lost appetite for expensive meals and cut back on spending due to the worsening economy during the period.
- Specifically, the report of the Census and Statistic department stated that receipts from bars were reduced to 8.4% in value while the Chinese restaurants went down to 3.4 % average.
- Fast food outlets as well as non-Chinese restaurants both accounted 1.2% decrease in value.
- The last quarter of 2001 recorded 4.9% year-on-year total restaurant receipts depreciation or amounting to HK$14bn.
- A prediction from leaders of HK’s food and drinks industry also affirmed that another 1000 restaurants will close in 2002 as downturn resulted further into unrestricted expenditure.
- A sharp recession in trade among HK’s mainstream dim sum restaurants and teahouses is also reported.
--- 2002, Hong Kong food sales fall – Food Industry Report, Eurofood, March 14, viewed January 12, 2007, from http://findarticles.com/p/articles/mi_m0DQA/is_2002_March_14/ai_84147266
Ng Kin Hung
Hong Kong
Pls see attached
6000 words - 24 pages
Content
- Introduction
- Executive Summary
- Methodology
- Literature Review
- Presentation and analysis data
- Recommendation
- Conclusion
- Progress review report (250 words)
- Reference Harvard
According to the Company’s website, the first Tao Heung Seafood Hotpot Restaurant was established by Tao Heung in 1990 and located at Sai Wan. With its tradition in providing outstanding hotpot business and innovative promotional strategy, Tao Heung remains one lf the most stable Chinese restaurants in China and Hong Kong. Today, this restaurant is very much welcomed by the public because of its wide array of products such as fresh and economical seafood, delicious dishes and dim sum. Also, the original style of cooking and artistic interior design of the place helps in increasing the number of customers.
In 1992, the restaurant’s management launched the “One Dollar Cuisine” promotional campaign that became a hit and served as its key selling point in the restaurant industry.
With its consistent and outstanding promotional campaign, the restaurant introduced the “One Dollar Chicken” in 1996 that led to a breakthrough in the Chinese restaurant market. The following year, they seize the services of professional and specialized management consultants to develop and maintain their expertise in relation to serving the consumers with the highest and finest quality of service and successfully gained the certification in 2002. Three years later (in 2000), they ventured into mainland China market by opening the country’s first hotpot restaurant in Shenzhen; established their second brand – Tao Heung Super 88; and opened up more restaurants in Guangzhou for the creation of a local dining culture for the following year as well as to enhance direct involvement to its clientele.
Aside from its very satisfactory services, the restaurant’s management also aided in providing $15million full sponsorship to establish the “Chinese Cuisine Culture Development Program”, Hong Kong’s first Chinese restaurant management course.
In 2002, the continuing commitment to serve the highest number of consumers with the most outstanding services paved way to the attainment of the 5-S Certification in three (3) restaurants situated in mainland China. It became the first restaurant group to attain such Certification and used it as a new management concept directed to the enhancement of the quality of services as well as staff. Due to its blossoming productivity, the restaurant opened more outlets in Shenzhen. In the same year, Tao Heung continued its expansion and innovative business strategy by establishing a modern Hakka restaurant and called it the “Hak-ka Hut” and a “wedding” theme restaurant called the “Cheers Restaurant”.
The year 2003 is another major breakthrough in the restaurant’s management for they set up Tao Heung Logistics Center in Fotan for the purposes of ensuring consistent and stable food qualities. Similarly, to turn a new leaf of Chaozhou cuisine, they opened another modern Chaozhou restaurant called “Chao Inn”.
The following years (2004-2005), many significant happenings that took place. Among these are:
- Opening of Tao Heung Museum (August 18).
- Allotment of $250,000 from the last financial year (September 2003 to August 2004) for the Tao Heung Staff’s Children Grant Award Scheme wherein 90 children were considered as recipients. This is also an important human resource management action that helps to back up the financial burdens of its staff especially in providing their children’s education. Furthermore, it aims to train talents who will contribute to the community and to implement the Holding’s objective as people-oriented.
- Launching of “Customer Service Hotline 29470818” in October 18, with its voice prompt instructions and the aim of facilitating effective communication with customers particularly for diversified customer needs.
- Joining in the 5th World Championship of Chinese Cuisine (November 18-21) where the Guangzhou shop won 7 different awards for team and individual categories. This competition was joined by professionals from 18 countries and districts.
- Supporting the relief operation in South Asia by conducting a 3-day (January 1-3) fund raising through selling “Tao Heung charity cash coupons for relief operation” in all its 26 shops in Hong Kong and collected a total of HK$3 million. The donation was given directly to World Vision Hong Kong.
- Receiving the “Catering Industry Safety Award Scheme 2004/2005”, silver medal for Mong Kok outlet of Tao Heung Super88, and bronze medal for causeway Bay outlet of Chao Inn. Also, Chung’s Cuisine in Causeway Bay became a member of Quality Tourism Services Scheme organized by Hong Kong Tourism Board and at the same time awarded an Indoor Air Quality certification Scheme for Offices and Public Places by the Good Class from Environmental Protection Department in February.
- CEO Mr. Chung Wai Ping was awarded as Innovative Entrepreneur of the Year 2005 by Junior Chamber International Hong Kong and Pearl River Delta Catering Business Top Ten Characters by China Hotel Management Association.
- SGS certified the Tao Heung Logistics Center as ISO9001-2000.
- Received the award “Superbrands” from a renowned global magazine with the same name.
- Using olive oil in all dim sum making among Chung’s Cuisine as a response to the growing importance of health among Hong Kong people.
- Opening Tao Heung’s Shanghai Inn and Chow Inn in Mangkok to cater the consumer’s demand for new taste as well as unusual and creative dishes. Shanghai Inn is a new brand that aims for the expansion of its predominance in thematic lines.
Because of the universal identity of the Chinese dining culture, there is a need to create one Chinese restaurant group that will uphold the time-honored and profound identity of Chinese cuisine. Tao Heung Seafood Hotpot Restaurant is committed to enhance the image of Chinese catering. In doing so, they invest in training employees and put focus in the development of the competencies of their staff as well as enhancing the abilities to come up with innovative ideas. The restaurant’s long term mission is to become the most esteemed Chinese restaurant group and a leader in the opening up of a new direction for Chinese dining.
Tao Heung’s aim is to go into the crowd and served them while practicing the Delicious & Value business strategy. Meanwhile, they are also dedicated to share the value of money with the public at large.
Group Awards
v Acknowledged to be the ‘Superbrands’
v 2005/2006 Acknowledged to be the ‘Superbrands’
v The Outstanding Enterprise Award in Food and Beverage
v Innovative Entrepreneur of the Year 2005’
v Tao Heung Logistics Center was certified ISO9001-2000
v Tao Heung brands were certifiied 'Quality Tourism Services Scheme' (Q mark)
v Pearl River Delta Catering Business Top Ten Characters’
v Indoor Air Quality Certification Scheme for Offices and Public Places
v Catering Industry Safety Award Scheme 2004/2005
v Good Housekeeping Seminar and Award Presentation
v The 5th World Championship of Chinese Cuisines
v The Quality Brand of Integrity in Hong Kong
v Customer Relationship Excellence Awards
v The 1st group of Chinese restaurants in the world to attain the “5-S”Practise Certification
In a study conducted by Lan and Khan (1995), they evaluated Hong Kong’s fast-food industry. They found out that despite rapid growth, fast-food chains face various challenges that directly and indirectly affect their operations such as intense competition to the point of saturation, high inflation, rent escalation, labor shortages, and political uncertainty. Furthermore, the presence of international fast-food chains and their diverse offering of core product like hamburger, chicken, or pizza-and their strategies are focused on image building through aggressive marketing. This adds as an additional operational burden. But by comparison, Lan and Khan concluded that Chinese-style fast-food chains are product-oriented and offer great variety. In terms of expansion, they identified that international fast-food chains are expanding through franchising while local fast-food companies like the ones in Hong Kong are expanding through private (such as family) ownership.
Lan, L & Khan, MA, 1995, Hong Kong's Fast-Food Industry: An Overview, Cornell Hotel and Restaurant Administration Quarterly, vol. 36, no. 3, pp. 34-41.
Hong Kong is known for sustaining its competitive advantage especially in Asia’s hotel as well as tourism industry (Lloyd, La Lopa and Braunlich 2000; Yu 1994).
Lloyd, J, La Lopa, JM & Braunlich, CG 2000, Predicting Changes in Hong Kong's Hotel Industry Given the Change in Sovereignty from Britain to China in 1997, Journal of Travel Research, vol. 38, no. 4, pp. 405-410.
Yu, R 1994, Hong Kong: sustaining competitive advantage in Asia’s hotel industry, Cornell Hotel & Restaurant Administration Quarterly, October.
No comments:
Post a Comment