🗊Презентация The Pub

The Pub (29.1.) Task/Questions: Identify the industry in which the Pub operates and conduct a macro environmental analysis for The Pub. What are the structural drivers of change affecting the industry? Conduct a Five Forces analysis of the industry in which The Pub operates. Is this an attractive industry? Conduct a value chain analysis of The Pub. Identify the value and non-value adding activities of The Pub in its current location. Conduct a SWOT analysis for The Pub in its current location. Is The Pub well positioned to take advantage of the opportunities available and minimize the threats it faces? How would this change when it moved to its new location? What should Scooter and the board of directors do to ensure the future sustainability of The Pub?

Identify the industry in which the Pub operates and conduct a macro environmental analysis for The Pub. What are the structural drivers of change affecting the industry? Political Government. Provincial law/ politics. Change: advertising of prices is now allowed but forbidden by the university. University. Interested in reducing drinking (alc) Economical - Minimum wages increasing, leading to higher expenses for the Pub Financial crises, disposable income of students low/ decreasing. Industry (drinking & food) increasing Sociocultural Low brand loyalty Socialising increasing vs. drinking (advertising against drinking) Students want more food, less drinking Increase of enrolment Undergrads

Identify the industry in which the Pub operates and conduct a macro environmental analysis for The Pub. What are the structural drivers of change affecting the industry? Technological Growing internet penetration/ usage Environmental Opportunity to use more environmental applicances Legal - Legal drinking age 19 years

2) Conduct a Five Forces analysis of the industry in which The Pub operates. Is this an attractive industry? Suppliers (low) Food / drinks: Labour: low skilled worker, students, University: location, financing Buyers (medium/ high) Students. Medium to high bargaining power Teachers, staff, visiting people have different preferences but less bargaining power Substitutes (high) - (dance) clubs, sport, reading .. club, gaming

2) Conduct a Five Forces analysis of the industry in which The Pub operates. Is this an attractive industry? New Entrants (low) Barriers for entrants are low, alc license, no big capital investment needed. Not very attractive industry, decreasing drinking, low profitability Rivalry (high) - Some bars are closing, dying industry, other pubs will run activities to attract students and other people Summary: hard to survive, low profits and increasing competition, declining industry.

3) Conduct a value chain analysis of The Pub. Identify the value and non-value adding activities of The Pub in its current location. Support Activities: General Management - Experienced Scooter, good/ strong relation with university, informal/ not structured management style, long holiday break in summer is limiting the development of the Pub. Board of directors. Takes most decisions, monitoring situation, hands-off, slow in decision taking HR Hiring students form university, trying to reduce turnover rate, people like to work at the Pub, informal communication style, friendly, informal, fun place to work (= workforce is motivated), no formal job descriptions, high salary expenses for Scooter. Technological - Website (low technology) Procurement - - Buying from local liquor shop

3) Conduct a value chain analysis of The Pub. Identify the value and non-value adding activities of The Pub in its current location. Primary Activities: Inbound/Outbound Logistics. N/a Operations One cash register only, slow service and consumer complaints. No credit card accepted Dance/ DJ. DJ booth, dance floor at current location No kitchen (= no food) Marketing & Sales Membership cards to increase loyalty, email updates No discounts at night Clear target group with access (students) Cross marketing activities Lowest prices in town but are not allowed to advertise Service No ATM available?

4) Conduct a SWOT analysis for The Pub in its current location. Is The Pub well positioned to take advantage of the opportunities available and minimize the threats it faces? How would this change when it moved to its new location? Strength location, stable customer base, (emotional) direct connection with experienced manager Diverse staff from different student groups Low prices in the city Informal, friendly (working) culture - Clear management structure/ clear job descriptions / know what to do

4) Conduct a SWOT analysis for The Pub in its current location. Is The Pub well positioned to take advantage of the opportunities available and minimize the threats it faces? How would this change when it moved to its new location? Strength …. Weaknesses Financial difficulties Retention of employees (changing fast) Low capacity Physical conditions of the Pub (run down) Lack of management in summer months Not working with other target groups (conference guests, teachers, ….) Not (slowly) adopting to changing market conditions e.g. food/ … Missing (?) market analysis

4) Conduct a SWOT analysis for The Pub in its current location. Is The Pub well positioned to take advantage of the opportunities available and minimize the threats it faces? How would this change when it moved to its new location? Strength Weaknesses Opportunities Increased spending on food and entertainment Enrolment of students increasing Conference guests looking for a place to socialize Increasing customer base because other bars are closing

4) Conduct a SWOT analysis for The Pub in its current location. Is The Pub well positioned to take advantage of the opportunities available and minimize the threats it faces? How would this change when it moved to its new location? Strength Weaknesses Opportunities Threats Less spending on alcohol (financial threat) Minimum wages regulation (further increase?) University authorities coming up with new regulations (advertising of prices) Prohibited advertisement of price Change of location necessary (can have advantages/ disadvantages) large number (increasing?) of substitutes (coffee shops, theatre…sport..)

Strength Strength location, stable customer base, (emotional) direct connection with experienced manager Diverse staff from different student groups Low prices in the city Informal, friendly (working) culture - Clear management structure/ clear job descriptions / know what to do

5) What should Scooter and the board of directors do to ensure the future sustainability of The Pub? Moving to another location (….) Partnerships with student café and other organizations Special meal for students Discount programs for students, “bring a friend” See photo