Strategic Management Project
La Tasca Group PLC - Organisational Strategy Report
Contents Page Page 1
1 - Introduction Page 2
2 -Environmental Scanning Page 2
2.0 Industry Structure Page 2
3 - External Strategic Analysis Page 3
3.0 Task Environment and PEST factors Page 3
4 - Internal Strategic AnalysisPage 4
4.0 Organisational History Page 4
4.1 Company Resources Page 5
4.2 Company Capabilities Page 6
5 - Strategic Analysis and Recommendations Page 7
5.0 Strategic Analysis Page 7
5.1 Recommendations Page 7
6 - Appendix Page 8
6.0 - Overview of company performance 2005/6 Fiscal Year Page 8
6.1 - Consolidated P&L La Tasca 2005/6Fiscal Year Page 9
6.2 - Interim Report 2006/7 Fiscal Year Page 10
6.3 - Consolidated P&L 6 Months to October 29th 2006 Page 11
7 - Bibliography Page 12
1 - Introduction
La Tasca operates in the casual dining sector of restaurants in the United Kingdom, and in the U.S. The company operates three brands; La Tasca - a casual dining Spanish tapas bar and restaurant brand, LaVina - a casual dining Spanish tapas bar and restaurant that operates loosely in the same sector as La Tasca but is marketed towards older, wealthier demographics, and Sam and Maxie's Bar, Grill and Smokehouse, an American diner concept, aimed at families. The company started out as a single restaurant in Manchester's Deansgate in 1993, and has since become one of the most well recognised, andfinancially successful restaurant brands both at in the U.K. and abroad, operating 58 La Tasca outlets (four of which are in the U.S.), 8 La Vina outlets and 3 Sam and Maxie's. The company is currently under offer from a number of private investors that aim to buy out the brand.
'Our approach is to pursue our strategy of measured growth, based on our successful track record to date.' - La Tasca'sstrategy statement.
2 - Environmental Scanning
La Tasca Group operates primarily in the wide and diverse U.K. hospitality market. As a casual dining restaurant and bar the company benefits from appealing to a wide customer base. The casual dining sector of the hospitality industry can be considered La Tasca's Task Environment.
2.0 -Industry Structure
'In 2005 the restaurant sector was estimated to be worth just under £6 billion, of which around a third could be attributed to ethnic restaurants. The growth in sales in the restaurant market has been in line with the overall growth of the eating out market and as such restaurants are retaining their share at around a fifth.'http://academic.mintel.com/sinatra/academic/search_results/show&&type=RCItem&page=0&noaccess_page=0/display/id=173596/display/id=211928#heading5_1
The U.K. restaurant market has continued to grow as a whole since La Tasca first opened in 1993, and importantly, the popularity and proliferation of ethnically branded restaurants has been widespread and profitable. It is not, therefore, surprising that the La Tasca brand has been able to developinto the size that it is now, with such a large market share and a dominant company in this sector.
'New concepts are flooding into the MLP (Multi-Leisure Parks) market which tend to be aimed at the ‘premium casual dining’ sector. For example, Stevenage Leisure Park has been the first siting of both Sam & Maxie’s (La Tasca's new offering) as well as the Outback Steakhouse.'http://academic.mintel.com/sinatra/academic/search_results/show&&type=RCItem&page=0&noaccess_page=0/display/id=173622/display/id=236046#heading9_1
The casual dining market operates in varying sectors of the industry and is increasingly successful in each. Ranging from city-centre locations, to leisure parks and shopping centres (such as Trafford Centre and Meadowhall), the casual dining restaurant sector is...