Healthcare test assignment

Running Head: HEALTHCARE TEST ASSIGNMENT
Healthcare Test Assignment
Topic: Analyse how food and beverage outlets can use tools such as “Competitive
Advantage” and “Value
Chain Analysis” to ensure they meet their strategic objectives.
Student’s Name:
Institutional Affiliation:
HEALTHCARE TEST ASSIGNMENT 2
Table of Contents
Introduction ..................................................................................................................................... 3
1. Concepts of Competitive Advantage and Value Chain Analysis from food and beverage
perspective ...................................................................................................................................... 3
2. Examining competitive nature of food and beverage industry of Sydney .................................. 5
3. Exemplifying discussions in the shed of bars and upmarket restaurants in Australia ................ 6
4. Analysing effects of using menu engineering by food and beverage outlets ............................. 7
Conclusion ...................................................................................................................................... 7
Reference List: ................................................................................................................................ 8
Appendices:..................................................................................................................................... 9
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Introduction
Food and beverage industries of nowadays are far more concerned about their timely
products and services than the previous years. In most of the countries or cities, they are required
to acknowledge the competitive advantages and value chain analysis theories categorically to
ensure strategic objectives. This study has strongly focused on the Sydney food and beverage
industry in the shade of the behaviour of entire Australian food and beverage sector.
1. Concepts of Competitive Advantage and Value Chain Analysis from the perception of
food and beverage industry
Competitive advantage and Value chain analysis are subjected to help organisations in
gaining profits in any market. Both these factors are found to be highly useful in improving
brand equity as well, which have encouraged most of the industries existed in the market.
Competitive advantage refers to describe useful attributes related to the products or services
offered by an organisation. However, as argued by Leonidou et al. (2013), competitive
advantage mostly focuses on the attributes of the other organisations from the same sector. Thus,
the organisations need to develop understanding on their rival to ensure benefits by offering
better services and products to the customers. Food and beverage industry is also no exception in
acknowledging this theory, while defining strategic objectives. Companies must ensure effective
implementation of cost advantages and differentiation advantages in regards to this. In this
context, an organisation within the food and beverage industry must assess the demands of the
customers to provide more benefits than the rivals.
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Figure 1: Competitive advantage in Food and Beverage industry
(Source: Leonidou et al. 2013)
Value chain analysis is another considerable most theory that an organisation within food
and beverage industry must acknowledge. As stated by Fearne, Garcia Martinez & Dent (2012),
it is usually divided into two major activities, such as primary activities and support activities.
The primary activities include inbound and outbound logistics, operations, marketing and sales
along with services to ensure the profit of an organisation. However, the support activities
include firm infrastructure, human resource management, procurement and technology to
anticipate the desired profits. In food and beverage industry, it is highly recommended to the
management of the organisations to stay unique and distinct in offering products. This can be
seen as the key factors for the organisations to stay ahead in any competitive market and ensure a
sustainable growth.
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Figure 2: Value Chain Analysis for Food and Beverage Industry
(Source: Ozdemir, 2012)
2. Examining competitive nature of Sydney food and beverage industry
In Australian economy, food and beverage industry plays a significant role. This industry
already has provided over 800,000 employments till date with yearly revenue of $74 billion
(Food and Beverage, 2017). It clearly shows how beneficial is this industry in regards to business
and that is too staying connected with the Australian customers so closely. Like most of the parts
in Australia, Sydney has also witnessed a massive growth in local economy among the
inhabitants in last few years, which have create delightful opportunities for the companies within
this industry. With a graceful improvement of daily wages of the people in Sydney, they have
become capable of consuming on leisure products. However, the demand of this industry was
never out of the market.
With all the upmarket values, food and beverage industry of Sydney has successfully
acknowledged the consumers within the city. As per the opinion of Mok, Sparks, & Kadampully
(2012), this has been possible due to the emerging concerns of the consumers about their health
along with their family members. At this point of time, they are sorted enough to select the most
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appropriate products that suit them and that is too from a wide range of choices. In many
restaurants of Sydney, it is observed that the managements have enlisted several beverage
products as well considering the health issues and preferences of the consumers. According to
Hughes et al. (2013), fierce competition among the companies, especially on pricing and quality
have set the mark higher for this particular industry. However, innovation is arguably the most
effective factor that promoted this industry to some other levels.
3. Exemplifying discussions in the shed of bars and upmarket restaurants in Australia
The food and beverage industry of Australia is expected to take a growth by 9.5% till the
financial year of 2021-21 from now. Ozdemir (2012) states, it includes the sales in diverse
industry classes, such as restaurants, cafes, takeaways, pubs, bars and nightclubs. In this way, the
restaurants, cafes and takeaways are expected to increase their overall market share to $34.8
billion within the financial year of 2020-21 from the present $31.6 billion. On the other hand, the
bars, pubs and nightclubs are expected to take a growth about $17.9 billion till the financial year
of 2020-21 from the present figure of $16.8 billion (Food and Beverage, 2017). It clearly refers
to a massive diversity between the first category and the second category within this industry.
This difference indicates at the preferences of the consumers in Sydney whole choosing their
favourite foods and beverages.
Australian consumers have been found considering the health concerns above anything in
these last few years. Thus, the organisations also need to gain their understandings in this regard
and define their logistics, operations, marketing and sales according to it. Most of the companies
within this industry of Australia have been found paying values to these factors categorically and
confirming inclusion of them in their menu lists as well.
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4. Analysing effects of using menu engineering by food and beverage outlets
Menu engineering refers to ensure the profitability of a restaurant or food and beverage
chain by providing best offers. It also indicates at gaining maximum popularity among the
consumers considering all their demands of food. In this regard, Stanton (2015) opines that the
companies within the food and beverage industry in Australia always focus on it to influence
their customers. In most of the cases, they also shed light on the issue of health along with the
taste concern. However, it may also include diverse other issues like customisation of platters,
drink or cocktail preferences, innovative designs of food or beverage services and interiors of the
outlets to attract customers of diverse choices.
Conclusion
Examining the implications of value chain analysis and competitive advantage theory of
the food and beverage industry has led this study to diverse avenues. This study has tried to shed
lights on different statistical figure related to this sector to develop understanding on it. In this
regard, it had to go through various aspects of health concerns of the consumers along with the
consideration of menu engineering by the managements of organisations in this industry.
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Reference
Fearne, A., Garcia Martinez, M., & Dent, B. (2012). Dimensions of sustainable value chains:
implications for value chain analysis. Supply Chain Management: An International
Journal, 17(6), 575-581.
Food and Beverage. (2017). Australian Trade and Investment Commission. Retrieved 1 May
2017, from https://www.austrade.gov.au/International/Buy/Australian-industry-
capabilities/Food-and-Beverage
Hughes, C., Wellard, L., Lin, J., Suen, K. L., & Chapman, K. (2013). Regulating health claims
on food labels using nutrient profiling: what will the proposed standard mean in the
Australian supermarket? Public health nutrition, 16(12), 2154-2161.
Leonidou, L. C., Leonidou, C. N., Fotiadis, T. A., & Zeriti, A. (2013). Resources and capabilities
as drivers of hotel environmental marketing strategy: Implications for competitive
advantage and performance. Tourism Management, 35, 94-110.
Mok, C., Sparks, B., & Kadampully, J. (2013). Service quality management in hospitality,
tourism, and leisure. Routledge.
Ozdemir, B. (2012). A review on menu performance investigation and some guiding
propositions. Journal of Foodservice Business Research, 15(4), 378-397.
Stanton, R. A. (2015). Food retailers and obesity. Current obesity reports, 4(1), 54-59.
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Appendices:
Appendix 1: Healthy eating and drinking in Australia
(Source: http://www.beactivecockburn.com.au/healthy-eating/)