Business environment refers to the internal and external factors that play a crucial role in influencing the nature of the discussions of a restaurant. It is interesting to note that both these internal and external factors affect each other and affects the sustainability of a business of a restaurant. The Internal factors refer to various organizational factors in the form of shortage of employees that affects the way in which a business is conducted. The external factors are the total of economic, social and political factors.Business organizations such as restaurants are the profit motive and are connected directly to the external environment. There exist business organizations that are of varied types in its nature. Moreover, a new kind of restaurant has emerged in the marketplace in the form of steakhouse restaurant. On the flipside, the best steakhouses all over the globe are actively taking note of the business environment in which they operate.
The extent to which restaurants achieves the objectives of several stakeholders
A stakeholder is an individual or a business entity that have a direct or indirect interest in the proceedings and processes of business. Stakeholders of a business entity are mainly divided into two parts such as internal and external. The list of speakers also comprises of trade unions and employees of a business organization. Restaurants have various stakeholders who play a vital role in helping it to achieve several business objectives in the global competitive market. The speakers of a restaurant can be segmented into primary and secondary stakeholders.
The major stakeholders of the restaurant include its customers. On the other hand, the best steakhouses have several policies in place to tackle non-profit situations. Like other business organizations, the restaurant’s customers form the central core of its business activities. The business strategies of the restaurants are based on the preferences of its clients.The communities are in the shape of the employees and consumers of the restaurants. The restaurants should be able to facilitate the several needs of its employees by addressing them in a proper manner. It operates as per the industrial norms laid out by the government of a particular nation.
How do market structures determine output decisions and pricing of a restaurant’s business?
Different types of marketing structure require the restaurant owners to apply various types of pricing strategies. For instance, if a company exists in a monopoly market then the organization might cost higher price than what the organization needed to cost in a perfect competition market. In monopolistic market structure, the company can determine a price of the product based on the consumer’s approach toward the distinctive feature that they avail, while in duopoly the company needs to ensure that the consumers prefer their product over the competitor through pricing policies too. In such cases, the business organizations tend to use the product price as their competitive advantage.In monopolistic structures organizations have several competitors, but they sell different products.On the other side, it can be said that these restaurants are perfect competitors to each other. It can be stated that they are operating in duopoly market because no other organizations are as powerful as them.