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Great Italian Food Company

In: Business and Management

Submitted By gharma
Words 755
Pages 4
The Great Italian Food Company (GIFC) is a family owned business. For the restaurant business to survive, it must give attention in providing high quality products and service, perform corporate social responsibility and integrity. The GIFC managers have understood that for the restaurant business to succeed, in the long run, must focus on integrity in relationships with customers, employees and business partners. The GIFC is an authentic Italian restaurant, so opening up other ethnic restaurants should not be done as other stakeholders may portray this step as loss in faith in their own food and restaurant and new venture into other ethnic foods could prove disastrous as they have no idea about other ethnic foods. If they have to choose a strategy they should choose a differentiation approach (Porters four competitive strategies). The differentiation strategy is to offer product or services that are of unique and superior value compared to those of competitors and to target a wider market segment. (Kinicki & Williams) With many other Italian restaurants in the greater St. Louis area and in the country, how can they differentiate themselves from the rest?
Before expanding their business, first they have to do a SWOT analysis (Strength, weakness, opportunity and threat). This is important because careful scanning of an organization’s internal and external environments may detect early sign of opportunity and threat that may influence the firm’s long term plans. (Kinicki & Williams, SWOT Analysis) This will help them to gain competitive advantage as they will know if any competitors are doing the same thing as they are doing. They will also need to think on ways they can differentiate themselves from the many other Italian restaurants, it could be the food from only a certain part of Italy, it could be the décor and ambience or it could be the service they...

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