Fork and Dagger

Case 11: Fork and Dagger

Name: Chao Han

Student #: 100359681

Course title: MRKT 2333

Professor: Imran Raza

Date: Feb 1, 2018

1. Define the main problem.

According to the situations of Fork and Dagger, there are several operating issues that Richard Lynch, the owner and founder of the Fork and Dagger pub, are facing right now. One of the biggest and main problem is that both revenue and net income are decreasing seriously in four consecutive fiscal years. To compare the net income from the year of 2008 and 2011, from the report of Fork and Dagger’s Year-End Income Statements, we can apparently get the result of net income of 2011 is shrink to only 42.68% ($79,649/ $186,617) of the same net income as its fiscal year of 2008. By the reduction of nearly 50% percent of net income of this catering business, Fork and Dagger as well as Richard are both confronted with severe either operation issues or unclear positioning or targeting market dilemma.

1. Elaborate on the key issues in order of importance.

The primary issue of Fork and Dagger is that the restaurant has an unreasonable and distinct recession in aspects of both revenue and net income. Due to the facts of Fork and Dagger, this restaurant is pretty reputed and community-supported business even at the changing economic climate duration. But since after the 2008, which regarded as the peak sales season, the sales and net profit are both going down in a large proportion scale. Plus, the financial report table indicates that both sales and net income are going down in a consistent and constant trend.

The secondary issue will be the unbalanced scale of profit margin. For instance, from the year of 2011, the total revenue is $2,224,650, the total net income is only 79,649, which reflex the profit margin is only 3.58%. For a catering business like Fork and Dagger, the return rate of 3.58% is way too low for expected profit margin even compared to other commercial fields.

The tertiary matter is about the company’s development direction. Back to the foundation date of this company in 1993, the positioning of this company is considerable accurate and precise for its potential customers. But there are two voices within the company about their market positioning in the future. Bradley’s proposal is all about we should target a new market, a brand-new niche market which put our focus on the LGBT community as a result of their high tipping rate and more constant loyal customers compared to other groups of people. In contrast, Jason think they should focus on the new modern looking interior design and decoration, a few pool tables and installation of karaoke system which costs estimated about around $33,000.

1. Environmental analysis – Economics, Political, Demographic, Competitive, Technological

To evaluate the environmental analysis, we are going to address the concept of competitive advantages to analyze this topic. In terms of Fork and Dagger’s company background, the company was established in 1993 by Richard Lynch and has been in service this community and Struan with credible reputation and profitable returns. To mention about the competitive advantage, even during the world financial crisis of 2008, the company’s revenue is still growth in a good development tendency in both revenue and net income point of views. The second point is that many of their loyal customers are local residents who live within the community or city, there are a group of strong supporters and constantly loyal consumers. The last advantage is that the restaurant itself has been around for decades, it has reliable food sources and credible influences for the entire community.

1. S.W.O.T. Analysis --- Based on company’s micro and macro environment.

To diversify and give implementation about Fork and Dagger in a perspective of S.W.O.T. analysis, we need to distinguish into four parts

For the aspects of company’s strengths, the first one would be as the establishment of this restaurant in 1993, Dagger needed all the features the current market offered, he invested in 10 wall-mounted televisions and a cable subscription. The sporting events played continuously on the screens in the bar area, while in the dining area programing varied

 depending on the screens in the bar area. As well as they broadcasted the live sports event of 1994 Winter Olympics. The second strength is they attracted a lot of nearby college students and faculties to dine in or take a few bottles of drinks on Thursday and Friday nights. In addition, they offer specially food sales during the Saturday and Sunday with many local community coming in for lunch or dinner on those days.

For the weaknesses, due to the decades of managerial operation of this restaurant, Fork and Dagger really needs some updating and renovation right now. The ceiling and interior design is relatively out of fashion compared to other modern newer bar and kitchens. Most inventory or equipment needs to be updated or replaced.

Opportunities are always available for Fork and Dagger to adapt. There are two voices within the company about their market positioning in the future. No other pub in the Struan area was targeting the segment, and Bradley began to wonder whether there was an opportunity here. Bradley’s proposal is all about we should target a new market, a brand-new niche market which put our focus on the LGBT community as a result of their high tipping rate and more constant loyal customers compared to other groups of people.

For the threat point of view, as a result of lack of renovation, people were no longer looking for a place to simply eat and drink especially for Fork and Dagger’s fixed customers. People have the tendency to try out other newer pubs and want to experience some places they have never been there before.

1. Alternatives --- Generate and list available alternatives to address main problem and issues.

Among all the preferred alternatives, as the most possible outcomes of alternatives. Both Bradley and Jason have their favoured proposals to resolve this issue. Bradley’s proposal is all about we should target a new market, a brand-new niche market which put our focus on the LGBT community as a result of their high tipping rate and more constant loyal customers compared to other groups of people. In contrast, Jason think they should focus on the new modern looking interior design and decoration, a few pool tables and installation of karaoke system which costs estimated about around $33,000.