Business strategy in Chinese restaurant Assignment - 1

Business st countgy in Chinese restaurant - Assignment ExampleThe purpose of this topic is to explore the marketing strategies of Hai Di Lao hot pot by applying the PESTEL and SWOT framework. The strategic options for expansion of the restaurant ar discussed in this report and finally the recommendations are suggested.Political The Chinese governance has been following liberalization policies and this includes a drive of opening foreign based truehearted food chains in the country. Since 2007, the government have banned all the unlicensed food suppliers. This implies that the restaurant owners have to be highly careful in terms of procurement of food from suppliers. The Chinese governments policy on food safety is paramount.Economic China is one of the fastest growing markets among the emerging market economies with an average rate of growth of 9.10 % from 1990 to 2014 (Trading Economics, 2014). The growth of the Chinese economy has been coupled with the growth of disposable inco me of middle class (Wang, 2012). The average rate of per capita GDP of China is estimated to be well-nigh $ 2611 dollars (World Bank, 2014). According to statistics, the fast food restaurant in China is expected to grow by 6% in terms of value sales (Euromonitor International, 2014). favorable Based on social taste and preferences, Chinese fast food market can be differentiated on the basis of domestic fast food industry and foreign fast food industry (Deloitte, 2012). Though, the consumers are acquiring a taste of foreign fast foods yet the domestic Chinese fast food is very popular representing 70% of market share (Research and Markets, 2011).Technological Technological elements like using Electronic Funds Transfer at Point of Sale (EFTPOS) and advanced equipments in the kitchen reduce cost of production of the company. Using social media marketing and using internet technology to manage stemma can also help companies reduce their costs.Legal Legislations for restaurant industry in China is