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Business Investment Strategy Of SME Restaurants
Published 2015 · Economics
The aim of this research is to develop a business investment strategy in support of SME restaurants in Yaowarach area, Bangkok, Thailand, using the qualitative method of in-depth interviews with key management personnel, such as business owners, managers. The key informants, for in-depth interviews, included thirty-one entrepreneurs--twenty-nine sole propritopship business owners and two limited partnership owners, selected by purposive sampling of twelve entrepreneurs listed by Sampantawong District officials and Sampantawong District officials as well as the Crown Property Bureau official. Research Findings: Strategic investments improved investment efficiency on three levels: (1) Corporate strategy; Businesses used proactive strategies aimed to increase market share from diversification in which a business, limited by physical space would lead to branches elsewhere. Operators of two restaurants planned expansion and implemented expansion--a long-term strategy for growth, required in order to keep the businesses expanding market share. (2) Businesses strategy: Strategies were formulated aiming at differentiation focus with product diversification. Additionally, operators included strategies to rectify product development issues and differentiation by focusing on product diversification and developing innovative products or services, different from the competition. Cost management, including, strategies for analyzing production costs were implemented and grouped together to increases bargaining power with manufacturers, given lower raw material costs. The strategy included maintaining existing customers, given each restaurant SME existing client base. New marketing strategies included lower food prices and discount coupons for dining, the next time, etc. (3) Functional Strategy: The operational level is used to achieve the objectives of the organization. Furthermore, strategy must cover all departments within the organization to collaborate for success, by focusing on operational units. The China Town restaurants should have a financial plan. Investment plan analyze problems and determine financial investment responsibility in the future. According to the investment plan in place, monitoring, evaluation and improvement are continuous. The preparation of the income statement accounts control expenses using the budget as planned.