Business strategy in Chinese restaurant Assignment - 1

Business strategy in Chinese restaurant - Assignment guinea pigThe purpose of this report is to explore the regimenstuffing strategies of Hai Di Lao hot pot by applying the PESTEL and SWOT framework. The strategic options for expansion of the restaurant are discussed in this report and finally the recommendations are suggested.Political The Chinese government has been following liberalization policies and this includes a drive of opening unusual based fast food arrange 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 constitution on food safety is paramount.Economic China is one of the fastest growing grocerys 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 d isposable income of nerve center class (Wang, 2012). The average rate of per capita GDP of China is estimated to be about $ 2611 dollars (World Bank, 2014). According to statistics, the fast food restaurant in China is expected to grow by 6% in terms of hold dear sales (Euromonitor International, 2014).Social 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 as 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 sophisticated equipments in the kitchen reduce cost of production of the company. Using social media marketing and using internet engineering to manage inventory can also help companies reduce their costs.Legal Legisl ations for restaurant industry in China is