Business Policy

and conduct a macro environmental analysis for The Pub. What are the structural drivers of change affecting the industry?
Conduct a Five Forces analysis of the industry in which The Pub operates. Is this an attractive industry?
Conduct a value chain analysis of The Pub. Identify the value and non-value adding activities of The Pub in its current location.
Conduct a SWOT analysis for The Pub in its current location. Is The Pub well positioned to take advantage of the opportunities available and minimize the threats it faces? How would this change when it moved to its new location?
What should Scooter and the board of directors do to ensure the future sustainability of The Pub?

macro environmental analysis for The Pub. What are the structural drivers of change affecting the industry?

Political
Government. Provincial law/ politics. Change: advertising of prices is now allowed but forbidden by the university.
University. Interested in reducing drinking (alc)
Economical
- Minimum wages increasing, leading to higher expenses for the Pub
Financial crises, disposable income of students low/ decreasing.
Industry (drinking & food) increasing
Sociocultural
Low brand loyalty
Socialising increasing vs. drinking (advertising against drinking)
Students want more food, less drinking
Increase of enrolment Undergrads

macro environmental analysis for The Pub. What are the structural drivers of change affecting the industry?

Technological
Growing internet penetration/ usage
Environmental
Opportunity to use more environmental applicances
Legal
- Legal drinking age 19 years

The Pub operates. Is this an attractive industry?

Suppliers (low)
Food / drinks:
Labour: low skilled worker, students,
University: location, financing
Buyers (medium/ high)
Students. Medium to high bargaining power
Teachers, staff, visiting people have different preferences but less bargaining power
Substitutes (high)
- (dance) clubs, sport, reading .. club, gaming

The Pub operates. Is this an attractive industry?
New Entrants (low)
Barriers for entrants are low, alc license, no big capital investment needed.
Not very attractive industry, decreasing drinking, low profitability
Rivalry (high)
- Some bars are closing, dying industry, other pubs will run activities to attract students and other people
Summary: hard to survive, low profits and increasing competition, declining industry.

value and non-value adding activities of The Pub in its current location.

Support Activities:
General Management
- Experienced Scooter, good/ strong relation with university, informal/ not structured management style, long holiday break in summer is limiting the development of the Pub.
Board of directors. Takes most decisions, monitoring situation, hands-off, slow in decision taking
HR
Hiring students form university, trying to reduce turnover rate, people like to work at the Pub, informal communication style, friendly, informal, fun place to work (= workforce is motivated), no formal job descriptions, high salary expenses for Scooter.
Technological
- Website (low technology)
Procurement
- - Buying from local liquor shop

value and non-value adding activities of The Pub in its current location.

Primary Activities:
Inbound/Outbound Logistics. N/a
Operations
One cash register only, slow service and consumer complaints.
No credit card accepted
Dance/ DJ. DJ booth, dance floor at current location
No kitchen (= no food)
Marketing & Sales
Membership cards to increase loyalty, email updates
No discounts at night
Clear target group with access (students)
Cross marketing activities
Lowest prices in town but are not allowed to advertise
Service
No ATM available?

location. Is The Pub well positioned to take advantage of the opportunities available and minimize the threats it faces? How would this change when it moved to its new location?

Strength
Weaknesses
Opportunities
Threats