Post on 19-Feb-2018
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Entrepreneurship Case Study
Salman Yousaf Talha Khalil Sherani
Misbah Abbas Shaheer AhmadMS 381
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Table of ContentsCurrent Business Analysis:..............................................................................................................4
1. Situation Analysis:................................................................................................................4
A. External Environment:..................................................................................................4B. Corporate Review:.........................................................................................................5
C. ro!u"t Cate#ory Review:.............................................................................................$
%. Competitive Analysis:...................................................................................................8
E. Consumer Analysis:.......................................................................................................8
&. S'() Analysis:......................................................................................................................*
Stren#t+s:.................................................................................................................................*
'ea,nesses:.............................................................................................................................*
(pportunities:........................................................................................................................1-
)+reats:..................................................................................................................................1-
3. Strate#i" lannin#:.................................................................................................................1-
a. Mar,etin# (/e"tives:.....................................................................................................1-
. Mar,etin# Strate#ies:..................................................................................................1-
". )ar#etin# an! se#mentin#:..............................................................................................11
!. Competitive A!vanta#es:.............................................................................................11
e. ositionin# an! Bran!in#:...............................................................................................11
4. Mar,etin# Mix:......................................................................................................................11
ro!u"t:..................................................................................................................................11
ri"e:......................................................................................................................................11
la"e:......................................................................................................................................1&
romotion:.............................................................................................................................1&
5. Controllin# an! Evaluation:...................................................................................................1&
a. 0ore"astin#:........................................................................................................................1&
. Bu!#etin#:..........................................................................................................................1&". Evaluation:.........................................................................................................................1&
0uture o Savour 0oo!s.................................................................................................................13
Su##estions or 0urt+er 2mprovement o Business:......................................................................13
Story ine o Savour 0oo!s...........................................................................................................14
Beore Startin# a Business:........................................................................................................14
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0irst 5 ears o Business: 67i!eo 1 8:-1*:489.......................................................................14
Current Business Situation:.......................................................................................................14
0uture Business Strate#y:..........................................................................................................15
Savour 0oo!s................................................................................................................................1;
Case Stu!y.....................................................................................................................................1;
Savour 0oo!s Case Stu!y:............................................................................................................1$
(verview:..................................................................................................................................1$
Resear"+ Met+o!olo#y:.............................................................................................................18
R(02E (0 )ESS:...............................................................................................18
Con"lusion:................................................................................................................................18
)+e Case Stu!y:.........................................................................................................................1*
iterature Review..........................................................................................................................&3
Con"lusion:................................................................................................................................&;
Reeren"es......................................................................................................................................&$
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Savour Foods
Current BusinessAnalysis
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Current Business Analysis:
Savour 0oo!s? is one o t+e amous eatin# pla"es o Rawalpin!i an! 2slamaa!. Most o t+e
population o twin "ities is aware o @Savour 0oo!s?. 2t is lo"ate! in populate! area o
Rawalpin!i an! 2slamaa!. Savour 0oo!s is provi!in# a,istani as well as ast oo!. )+e
a,istani oo! in"lu!es ulao ,aa an! C+i",en roast w+ile ast oo! in"lu!es Bur#ers an!ries. 2"e "ream is also sol! at Savour 0oo!s ran"+es.
Mo+amma! >aeem C+au!+ary is a Business 2"on o t+e usiness "ommunity o 2slamaa! an!
Rawalpin!i.
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ii. "oliti#al:
Savour 0oo! is a,istani as well as ast oo! eatin# pla"es. 2ts poli"es are
ae"te! i t+ere is unstale politi"al environment. Savour 0oo! +as ull
support o #overnments to manua"ture +ealt+ier an! uality oo!s or
tar#et mar,et an! t+ey +ave ma!e si#nii"ant "+an#es in pro!u"ts
a""or!in# to t+e "ustomers nee!s.
iii. $#onomi#:
)+e E"onomi" mar,et s+are or Savour 0oo!s in ast oo! "+ain is &&G.
'+ereasD t+e mar,et s+are Savour 0oo!s in ulao is almost 85G as t+at o
2slamaa! an! Rawalpin!i. )+e e"onomi" #rowt+ o Savour oo! is 3.5 G
in &-14. )+e sales o Savour oo! per !ay are 3 million rupees in one
ran"+.
iv. So#ial
Savour oo!s are preparin# oo!s pro!u"ts a""or!in# to so"ial an!
"ommunity stan!ar!s as le#al an! +ealt+ier or people. So in t+is way
tar#et mar,et an! people are more satisie! wit+ t+eir pro!u"t.
v. %nternational:
Savour oo!s is a lo"al a,istani Restaurant an! ast oo! eatin# pla"e an!
+ave not yet ran"+ in any ot+er "ountry. But in uture t+ey want to start
also in ot+er "ountries li,e =AE et".
B. Corporate Review:
i. Mission:
To be leader in Quality food at most reasonable prices and preferred choice of
enthusiastic manpower.
ii. Moto:
To provide quality and clean Pakistani food specially and fast food generally
at reasonable prices.
iii. Strate!i# intent:
Savour oo! is a ast oo! eatin# pla"e. 2n past years t+ey pro!u"e! estuality pro!u"ts to t+eir "ustomers. 2t in!i"ates "ompany "orporate plan t+at
"ompany promise to !eliver est uality pro!u"ts w+i"+ are +ealt+ier or lie.
)+e Savour oo! is ale to "reate value amon# "onsumers y intro!u"in# new
pro!u"ts "ontinuously wit+ usiness pro"ess.
iv. Cor&orate "lan:
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Savour oo!s tar#et +ealt+ "ons"ious people as t+eir tar#et mar,et t+an t+ey
provi!e est ualityD tastyD +ealt+ier oo! to t+eir "ustomers. Savour oo! +as
use! as a usiness plan to a"+ieve #oals. )+ey "an "+an#e t+eir pro!u"ts
a""or!in# to "onsumers nee!s. Mar,etin# plan o Savour oo! "onsist o to
pro!u"e est uality pro!u"ts in aor!ale pri"e or typi"al mar,et t+ey use
est promotion sour"es to intera"t wit+ "ustomers.
v. 'on! term !oals
)o expen! usiness to all over a,istan.
)o expen! usiness to ot+er "ountries.
)o en+an"e t+e value o ran! name.
)o #enerate more proit an! in"rease t+e annual e"onomi" #rowt+.
)o satisie! t+eir "ustomer wit+ ualityD +ealt+y tasty oo!s.
vi. (b)e#tives:
Savour oo! restaurant o/e"tive is to e t+e a,istans lar#est an! est
ran!e! oo!s usiness pro!u"e wit+ est uality pro!u"ts.
)o uil! trust an! stron# usiness relations+ip wit+ "onsumersD
#overnmental an! aut+orities.
2ntro!u"e new pro!u"ts an! tasty oo!s.
Monitor perorman"e an! results an! ma,e "+an#es to a"+ieve reuire!
#oals.
vii. (r!ani*ational Chart:
C.
C.
C.
C.
C.
C.
C.
C.
C.
C.
C.
C.
C.
C.
Product Category Review:
i. +eneral ,es#ri&tion:
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Savour oo! is one o t+e lar#est ast oo!s restaurant. Savour oo!s provi!e
pro!u"ts w+i"+ are +ealt+ier an! !eliver est uality pro!u"ts to t+eir
"ustomers. )+ey !o not use any +armul in#re!ients. So t+eir pro!u"ts are or
all peopleD a#es an! #en!er. All pro!u"ts are a""or!in# to Customers nee!s
an! wants. So +ere "ustomers are more satisie! wit+ taste o Savour oo!s.
ii. Sales Trends:
eople in now a !ays more "ons"ious aout t+eir !iets an! +ealt+. Savour
oo!s intro!u"e est uality ran!s w+i"+ are +ealt+ier an! tasty. Ma/or s+ares
o ran!s a""or!in# to or#ani" #rowt+ are:
ulao ,aa 13GD C+i",en roast 1-GD Bur#er an! ries 11GD Har!a an! I+eer
1&G J i"eK"ream 1-G.
iii. ,istribution:
Savour oo! +as its own !istriution networ, wit+ all transportation a"ilities.
)+ey transport t+eir raw materials an! supplies to its own ran"+es. )+e
!istriution pro"ess "onsist o ollowin# steps:
Raw materialD manua"turerD pro"essin#D pro!u"tD pa",a#in#D transportationD
!istriutorD "onsumers an! "ustomers.
iv. "ri#in!:
ri"e !epen! upon t+e mar,et o pro!u"t. Savour oo!s "+ar#e air pri"es
a""or!in# to t+e pro!u"t ualityD "ompetition in t+e mar,et an! t+ey ma!e
pro!u"t a""or!in# to t+e uyin# power o t+e "ustomers e.#. ulao ,aa
sin#le 1;- Rs er pa",etD C+i",en roast 48- Rs in Rawalpin!i an! 2slamaa!ot+.
v. "a#-a!in!:
Savour oo! use! est material or pa",a#in# o pro!u"t in or!er to prevent
oo! waste an! avoi! to !ama#e environmentD 2t also avoi!e! t+e wasta#e o
pa",a#in# material. Savour oo!s !esi#n pa",a#in# in su"+ a way t+at it
attra"t "ustomers to uy t+e pro!u"t.
D. Competitive Analysis:
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i. ,es#ri&tions of ma)or #om&etitors stren!th and ea-ness:
Competitors are t+ose entrepreneurs w+o are also en#a#e! in t+e same nature o
usiness.
1. Com&etitors in i#e:Ri"e
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A""or!in# to latest resear"+ Savour oo! restaurant is one o t+e most love!
restaurant all over in Rawalpin!i an! 2slamaa!. 2t is !ue to t+e "onsumers
ran! loyalty. )+e mission o Savour 0oo! is to provi!e "onsumers wit+ t+e est
tastin# an! uality ran#e o oo! rom mornin# to ni#+t. )+ey are provi!in# est
uality pro!u"ts to t+eir "ustomers. 2n t+is way "ustomers e"ome loyal t+ey
pur"+ase less "ompetin# pro!u"ts availale in mar,et.
iii. "ur#hase ate:
Savour oo! restaurant provi!e pro!u"ts w+i"+ are +ealt+ier an! tasty. 2n t+is
way t+ey attra"t +ealt+ "ons"ious people ater !eliverin# est uality pro!u"ts
t+eir "ustomer e"ome ran! loyal. )+ey pur"+ase Savour oo! pro!u"ts an!
#ivin# preeren"e to t+eir pro!u"ts amon# "ompetitors pro!u"ts. ur"+ase s+are
o some Savour oo! pro!u"t are:
Ri"e &-.3 GD mil, an! i"e "ream pro!u"ts 1;.$G. Col! !rin,s 13.5GD 'ater
;.*G J C+i",en 1&.8G et".
/. S0(T Analysis:
)+e purpose o S'() analysis is to !etermine t+e Stren#t+sD 'ea,nessesD (pportunities
an! )+reats in Con"erne! usiness. 2t +elps to ,eep t+e usiness on tra", an! proitale
an! also +elps to a"+ieve t+e !esire! #oals o any or#aniation. 2t also +elp to !evelop
strate#y an! will rele"t t+e reality i an or#aniation analye on t+e asis o a"ts an!
i#ures.
Strengths:
reat taste.
oo! uality oo!.
)a,e +ome ui", or!er servi"e. %ierent pa",a#es or !ierent
"ustomers.
Reasonale pri"es.
Sui"ient wit+ respe"t to uantity.
=se o te"+nolo#y in pro!u"tion o S+ami ,aa.
2!ea a!option rom orei#n restaurants.
Stron# ran! name in 2slamaa! an! Rawalpin!i
ea!nesses:
2naility to provi!e uality servi"es in rus+ +ours.
a", o ,nowle!#e aout t+eir "ustomers.
a", o relations+ip uil!in# wit+ "ustomers.
imite! to "ertain areas.
(nly in t+e "ity o 2slamaa! an! Rawalpin!i.
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"pportunities:
Many people are livin# at !istant pla"es rom t+e Savour 0oo!s
ran"+es. An! "ustomers +ave to travel +u#e !istan"e to rea"+ t+e
ran"+. SoD t+ey "an open ran"+es in many areas o 2slamaa! an!
Rawalpin!i. eople rom a+ore a!mire t+e taste o Savour 0oo!s an! are votin#
on t+e internet to open Savour 0oo!s t+ere. Many "ities o a,istan are
untappe! an! t+ey also la", uality. )+e Savour 0oo!s "an tap t+em as
well.
i,e t+ey +ave intro!u"e! Har!a in t+e pro!u"t !ept+. )+ey "an
intro!u"e ot+er pro!u"ts as C+inese ri"e.
#hreats:
2nlation.
oliti"al instaility. 2n"rease! sales tax rate.
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c. #argeting and segmenting:
Tar!et Mar-et: Savour 0oo!s? +as tar#ete! t+e mi!!le "lass an! upper mi!!le
"lass "ustomers in Rawalpin!i an! 2slamaa!. Espe"ially t+ey +ave tar#ete! t+e
wor,in# "lass o t+e private se"torD stu!entsD small an! me!ium entrepreneurs an!t+e ot+er or#aniations.
Mar-et Se!mentation: Savour 0oo! +as !ivi!e! t+e mar,et #eo#rap+i"D
!emo#rap+i"D psy"+o#rap+i"D e+avioral se#ments an! a""or!in# to t+e nee! an!
!eman! o t+eir value ale "ustomers. 0or t+isD t+ey +ave ma!e !ierent !eals at
!ierent pri"es t+at t+e in!ivi!ual "ustomer an! "ustomers in #roups "an or!er
a""or!in# to t+eir !eman! an! nee! o pro!u"ts.
d. Competitive Advantages: ea!in# in ri"e an! ast oo!.
Best uality pro!u"ts to "apture lar#e +ealt+ "ons"ious mar,et
)+e resear"+ an! !evelopment "apailities allow t+e Company to lea! t+e way
in innovation amon# its "ompetitors
e. Positioning and Branding:
As Savour 0oo! tryin# to positionin# t+at t+eir pro!u"ts are or everyone an!
+ealt+ier or +ealt+. )+ey !o not use "+emi"als an! +armul in#re!ients w+i"+ are
also +armul or +uman ein#s as well as environment. 2n t+is way t+ey attra"t
+ealt+ "ons"ious lar#e mar,et.
2. Mar-etin! Mi3:
Product:
Savour 0oo!s provi!es wi!e ran#e o a,istani oo!s nutritious an!
+y#ieni" pro!u"ts at aor!ale rate. i.e. C+i",enD Ri"eD C+i",en ulao
Sin#leFDulao IaaD Savour IrispoD 0ren"+ riesD C+i",en RoastD Savour
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Place:
or!on Colle#e Roa!D Rawalpin!i starte! in &--1.
Melo!y 0oo! ar,D 2slamaa! starte! in &--4.
Blue AreaD 2slamaa! inau#urate! on &4t+Mar"+D &--5.
Cri",et Sta!iumD Rawalpin!i inau#urate! on 14
t+
Au#ustD &--5. >ext in 0uture plan to start ran"+ in a+ore an! 0aisalaa! an!
Murree.
Promotion:
Savour oo! +as a!opte! t+e "+annels or promotion t+rou#+ lo"al )7D
>ewspapersD ma#ainesD personal sellin# an! !ire"t mar,etin#D sales
promotionD pa",a#in# et". 0or t+is purpose Savour oo! issues a!s aout
t+eir pro!u"ts to lo"al )7 "+annels to intera"t wit+ "ustomers an!
similarly to t+e newspapersD t+ey also use! +oar!in#s on mar,ets or roa!s
to "ommuni"ate wit+ "ustomers.
4. Controllin! and $valuation:
a. 'orecasting:
0ore"astin# is use! y "ompanies to !etermine +ow to allo"ate t+eir
u!#ets or an up"omin# perio! o time. Savour oo! t+e lar#est pa",a#e!
oo!s provi!er ore"ast sales to rise 1- per"ent t+is yearD in line wit+ its
lon#Kterm #oalsD ollowin# a stron#er year in &-1;. An! +ope to raise 15
G in next year.
%. Budgeting:A""or!in# to annual Savour oo! report in &-14K&-15D t+ey are operatin#
in two "ities +avin# aout 51- employees. Savour oo! +a! sales o 3.5
million rupees o one ran"+ per !ay an! aout 1.85 million proit per !ay.
Savour oo! spent 5 million Rs per year on me!ia or a!vertisement
purpose.
c. Evaluation:
Savour 0oo! is one o t+e lar#est restaurant in Rawalpin!i an! 2slamaa!.
2n past years t+ey !elivere! est uality pro!u"ts to t+eir "ustomers.Savour oo! is amous restaurants w+i"+ "ame to t+e sta#e it is to!ay y
#ainin# superior "ompetitive a!vanta#e over its rivals. )+e o"us pro!u"t
!ierentiation strate#y +as een very su""essul alt+ou#+ it may not wor,
or ot+er irms. )+e "ompany is ale to "reate an! !eliver value y
oerin# !istin#uis+e! pro!u"ts. 'e are sure t+at Savour oo! will !o
etter in t+e uture t+an t+eir "ompetitors an! mi#+t e t+e new tren!setter
in some "riteria an! also #ain its aoveKavera#e returns to t+eir "ompany.
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Future of Savour Foods
'it+ all t+e su""ess "omin# upD one must t+in, o t+e main reason e+in! it. As per t+e irm
elie o any MuslimD t+e real sour"e o su""ess or ailure is Alla+ Almi#+ty. (t+er t+an t+atD
+ar! wor, an! !e!i"ation o a person lea!s to #reat +ei#+ts in lie. )+is mo!el o su""ess "an
truly e ta,en as a #reat inspiration. 0rom a "art to a multiKran"+ oo! "+ainD t+is story serves asa mo!el an! an inspirin# "+ara"ter. A "art person turne! a usiness ty"oon wit+ a vision an!
mission to ma,e +is oo! "+ain t+e est a,istani oo! "+ain an! +as intro!u"e! te"+nolo#y to
meet t+e !eman! w+ile maintainin# t+e uality o oo!.
)+e uture plans are to sprea! it a"ross t+e "ountry an! t+e irst step outsi!e twin "ities is a+oreD
t+en in Muree an! 0aisalaa!.
Su!!estions for Further %m&rovement of Business:
1. Folloin! Businesses #an be introdu#ed by Savour:
Savour ia
Savour C+inese 0oo!
Savour appetiers
Savour %esi 0oo!
Savour Biryani et".
/. Chan!e the menu:
All usinesses rely on re#ularsN t+e restaurant i is no ex"eption. Even a
ris,Kaverse !iner will tire o eatin# t+e same !is+ every wee,en!. Ieep
your !inersD an! your employeesD intereste! y "+an#in# up your oerin#s
"onstantly. )+e est way to !o t+is is y ma,in# use o w+at in#re!ients
are in season ri#+t now. An a!!e! onus is t+at t+ese in#re!ients are otent+e tastiest an! "+eapest.
. %m&rove every day:
)+ere are t+ousan!s o !etails involve! in runnin# a restaurantD an!
t+ereore t+ousan!s o opportunities to ma,e t+in#s etter. As soon as you
sta#nateD you are in troule. 2 you /ust nee! to #et t+rou#+ servi"eol!
t+e nap,insD sear t+e stea,sD #et t+e oo! outyou are in troule.
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Story 'ine of Savour Foods
Before Startin! a Business:
@)+is pro"ess starte! in 1*8&. 0rom 1*8&K1*88 we experimente! it. 0irst we sear"+e! t+at w+at
,in! o usiness we s+oul!. A usiness t+at is allowe! in t+e reli#ion as well as it is proitale.
So inally we !e"i!e! to /ump in oo! usinessD e"ause it is allowe! in 2slam an! S+aria.?
67i!eo P 1 ;:3;KK$:5;9
@2t too, ; mont+s to sele"t t+e name Savour 0oo!s an! till now w+atever we #aine! rom t+is
usiness is investe! in t+e same usiness.?
67i!eo P & 18:-8KK18:&;9
First 4 Years of Business: 56ideo 1 7:819:27;
Ater experimentin# or a lon# time an! uil!in# a #oo! tasteD in 1*88 we !e"i!e! to ori#inate in
t+e mar,et. 'e ,ept t+e same stan!ar! o taste o oo!. 'e love our "ustomer an! t+ey were ourmar,eter. 'e elieve! in "ustomer to "ustomer mar,etin#.
67i!eo P 1 8:--KK8:359
@Money is important ut or me my "ustomers are importantD no !out on t+e pri"e to ear some
lossD /ust e"ause "ustomers "omes irst. Lust e"ause o t+is Savour 0oo!s +as #ot popularity
worl!wi!e.?
67i!eo P 1 8:3*KK*:--9
@'e starts rom a small s+op on rent wit+out a name an! #aine! "ustomers y provi!in# #oo!
uality oo!. )+en slowly an! #ra!ually we #aine! pur"+ase! t+e s+op so t+at t+e amount o rent"an e reinveste! in "ustomers. 'e t+en opene! anot+er outlet wit+ t+e same poli"y t+at irst to
pur"+ase t+e property an! t+en to start usiness in it to save t+e amount o rent.
67i!eo P & ;:-$KK;:&8 13:3*14:&59
Current Business Situation:
ro Ars+a! @>aeem Saa use! to wor, 1; to 18 +ours !aily.
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Mu+amma! >aeem @
@)+e pro!u"ts to e use! in pro!u"tion s+oul! e pur"+ase! wit+ est uality an! t+ere s+oul! e
no "ompromise on uality. An! t+en t+e pro!u"tion s+oul! in ree o !irt an! #oo! environment
an! t+en to sell wit+ wellKmannere! to t+e "ustomer.?
67i!eo P 1 *:55KK1-:&-9
@)+is #oo! an! ree pro!u"tion is possile i we uy res+ pro!u"ts rom t+e mar,et at t+e ri#+t
time an! pro!u"ts w+i"+ are o !aily usa#e s+oul! e ou#+t orm "ertain mar,et w+i"+ are
spe"ii" or t+e pro!u"ts an! spe"ially openin# time o t+ese spe"ii" mar,etsD at t+at time t+e
pro!u"ts are ree an! wit+ #oo! uality?
67i!eo P 1 1-:&3
11:&&9
@(ur mission is ui", servi"e?
67i!eo P 1 1:54KK&:-19
@(ur usiness !epen!s on t+ree t+in#s?
1. ur"+asin#
&. ro!u"tion
3. Sales
67i!eo P 1 11:38KK13:519
@
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67i!eo P & 1&:38KK1&:5&9
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Savour Foods
Case Study
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Savour Foods Case Study:
#his part is speci(ically (or the understanding on how the data was collected (or the Case
Study.
(vervie:
+is paper simpliies t+e !eterminants o t+e su""ess o small usiness #ettin# up
an! e"omin# t+e mar,et lea!ers in t+at iel!D an! t+ese trut+s are reveale! y t+e
owners o t+e small usiness in an attempt to motivate yout+ into !evelopin# an!
implementin# t+e i!eas t+at are #oin# to +elp in t+e #rowt+ o t+e in!ustry as well
as lea!in# e"onomi" prosperity to t+e sta,e+ol!ers o t+e usiness. )+ere are
numerous examples o su"+ types o usiness t+rou#+out t+e worl!. Ater "areully sele"tin# t+e
usiness w+i"+ we +ave "+osenD we "an say t+at all t+e !ata "olle"te! in t+is resear"+ is rimary
!ataD w+i"+ in"lu!es t+e one sour"e t+at is interview wit+ t+e owner o t+e usiness w+o was
assiste! y two people "urrently wor,in# or +im.
))+e usiness we are #oin# to write aout is Savour 0oo!s t+at is owne! y Mr. >aeem
C+au!+ary.
Ater "on!u"tin# t+e interview session an! listenin# to it a#ain an! a#ainD t+e reasons t+at we"oul! in! was t+at +e mostly stresse! upon a ew a"tors an! +is lo"us o "ontrol.
)+e Iey wor!s: Savour oo!sD %eterminantsD Entrepreneur.
)+e t+in#s t+at s+oul! e ,ept in min! w+ile rea!in# t+is "ase stu!y is t+e !ieren"e in t+e
situations t+at t+e usiness as it starte! in 1*8-s to &-1-s an! t+ere were many ups an! !owns
in t+e situation o a,istan an! we +ave to ,eep t+ese a"tors in min! w+ile !is"ussin# t+ese "ase
stu!y. )+ere were not as many a"ilities as t+ere are now a !aysD simple t+in, li,e "omputers to,eep re"or! so t+ere many !ierent strate#ies use! in all t+e !ierent situationsD ut t+is ein# a
simple "ase stu!y t+ere is not mu"+ !etail aout t+ese prolemsD w+ile t+e main o"us remains on
t+e owner an! +ow +e was ale to transer a ,ios, into well repute! ran! in )win "ities. )+ere
woul! e !is"ussion on t+eir "ompetitors an! t+at +ow t+e ta",le! t+em.
'e +ave seen in past t+at usiness +ave een re!u"e! !ue to t+eir most o"us on t+e proit
ma,in# rat+er t+an "ustomer o"us. )o survive in t+e usiness worl! to!ayD t+ere is so mu"+ to e
1$ a # e
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!one as well put y Mr.
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The Case Study:
t was in 1*88 t+at a small ,ios, was opene! on t+e or!on Colle#e Roa!D Rawalpin!iun!er t+e name o Savour oo!s. )+is was a new s+op oerin# a !ierent type o pro!u"t
in t+e mar,et t+at was t+e ulao. )+ere was no +otel at t+at time t+at was oerin# t+ese
pro!u"t an! Mr. >aeem C+au!+ary t+e owner o t+is +otel was "oni!ent t+at i +e elieve!
in Alla+ an! !i! +ar! wor, +e woul! e a su""essul. 'it+ t+e passa#e o time +e starte! to
realie t+e #ap in t+e oo! in!ustry an! sou#+t out +elp rom people o +is amily to "arry out a
resear"+ so t+at +e "an possily in! t+e voi! t+at +e t+in, is t+ere an! to ill it.
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)+e irst t+in# t+at +e !i! ater namin# t+e usiness was to allo"ate t+e un!s so t+at t+ey uy t+e
pla"e t+at t+ey +ave rente! or t+e usiness as +e elieve! t+at instea! o payin# t+e rent +e
woul! #ive t+e same !is"ount to t+e "ustomers an! t+at woul! +elp +is usiness #et an a!vanta#e
to t+e "ompany in term o eneits t+at t+ey "oul! provi!e to all t+e "ustomers visitin# t+em.
'it+ t+e passa#e o time +e realie! t+at +is usiness was #ainin# popularity an! ut t+e spe"ii"
!ays or t+e potato Iaas were not as mu"+ popular as t+e rest so +e !e"i!e! to "ut a", on
t+is pro!u"t an! starte! to oer sweet !is+ t+at was "ustar! in its pla"e an! t+is !e"ision turne!
out to e very popular an! t+ere was su!!en in"rease in t+e usiness wit+ t+e popularity o t+is
!is+.
)+e usiness was #ainin# popularity on one +an! an! was e"omin# more o an e"onomi"al
ran! an! t+e name was ein# lin,e! wit+ t+e restaurant t+at was oerin# +i#+ uality o oo! in
t+e rea"+ o a "ommon man. )+is was all ma!e possile wit+ t+e +elp o wor, !one e+in! wit+
t+e lin, wit+ t+e suppliers o t+e main oo! mar,et. 2t was elieve! y +im t+at t+ere will e t+e
est way to stri,e a !eal wit+ t+em to #ain "+eap raw material an! a#ain t+e same sour"e o t+e
"ustomer eneit ein# ,ept in min!.
As t+e time passe! t+e "ustomers in"rease! an! t+e only s+op e"ame very "row!e! an! resulte!
in or"in# o a !e"ision t+at t+ey nee!e! to expan! t+eir +otel into more "+ainsD so t+e sear"+ or
t+e !ierent lo"ations starte! an! as t+e o"us was only on Rawalpin!iD t+e oo! street was
"+osen as t+e est lo"ation to expan! t+e usiness an! irst ran"+ise was starte! apart rom t+e
main +otel.
)+en t+ere was a tou#+ !e"ision as t+e result o t+is expansion le! t+em to t+in, o t+e twin
"ities as separate "onsumer mar,ets an! t+ey loo,e! to start wit+ #rain# t+e opportunity in
2slamaa!. )+e main prolem a"e! in t+is was "ustomer "+oi"e !ieren"e an! t+ey were let
won!erin# wit+ +ow to "ompete wit+ t+e multi nationals "+ain i t+ey wante! to #et su""ess in
2slamaa!.
)+is was a very tou#+ !e"ision as t+ey were to expan! t+eir pro!u"ts an! were let won!erin# i
t+is is #oin# to e enei"ial or t+em or result in a loss. )+ey "+oose t+e lo"ation pere"t or
t+eir ol! mission an! tar#ete! t+e wor,in# "lass !urin# t+e !ay an! opte! to open t+eir "+ain in
Blue Area w+ere t+ere were oi"es an! la",e! +otel or t+e "ommon man.
'it+ t+is t+ey in"rease! t+eir pro!u"ts an! +a! to "ut !own some pro!u"ts in t+e pro"ess wit+
t+e result ein# t+at ast oo! an! i"e "ream ein# a!!e! to t+eir system an! t+e sweet !is+ ein#
repla"e! wit+ t+e tra!itional I+eer.
)+is was a very ol! move at t+e time an! rewar! or t+is !e"ision ein# t+at t+ey +a! nowestalis+e! t+emselves in ot+ t+e twin "ities. )+ere was a lon# span in t+is in"rease o t+eir
usiness in ot+ t+e "ities. 2t loo, approximately aout &- years to #et t+ese usiness up an!
runnin# rom s"rat"+ to lea!er in ulao ,aa in ot+ "ities.
)+ey a"e! a lot o intervention rom t+e #overnment in its initial years an! +a! re#istere!
everyw+ere. )+e owner ein# a reli#ious !i! not elieve in unair pra"ti"es an! t+is was an
+onest usiness so t+ere was not too mu"+ troule wit+ any #overnment oi"es.
&- a # e
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=ntil now Savour oo!s !i! not +ave any puli"ity an! !i! only rely on t+e "onsumer t+at were
sprea!in# t+e wor! o t+eir uality to all t+e people t+ey en"ountere!. But t+e "+allen#e rose up
re"ently wit+ t+e laun"+in# o t+e similar types o +otels ein# opene! in all t+e twin "ities t+at
let t+em to won!er w+et+er to o"us on t+e mar,et a!vertisement or to ma,e t+eir servi"es etter
to retain t+e "ustomers.
)+e !i! not eel any "ompetition e"ause o t+e way t+ey +a! estalis+e! t+eir ran! an! t+e
"ompetitors !i! not oer any "ompetition to t+em resultin# in t+e !ominan"e in t+e usiness an!
no troule ein# a"e! t+rou#+out t+e !uration.
)+e t+ou#+t o not ein# "ompete! #ave t+em a moral oost an! lea! t+em to #enerate a new
i!ea t+at is in its initial sta#es an! woul! soon e "omplete! an! let t+em to explore ot+er re#ions
outsi!e t+e twin "ities an! t+ere is a "+allen#e t+at t+e Savour 0oo!s will a"e or t+e irst time
wit+ t+e !isa!vanta#e ein# in t+eir avor.
)+e irst priority o Savor 0oo!s is rom start to now is +ow t+ey !eal wit+ t+e "ustomers an! t+e
values t+ey "an a!! to t+em or t+em at every sta#e rom re!u"in# "ost to ownin# t+e property
instea! is a well t+ou#+t o a strate#y an! +as een exe"ute! to its maximum utiliation an! still
t+ere is no !out aout it.
)+e owner Mr. >aeem C+au!+ary +as s+own some !ynami"s o entrepreneurial s,ills wit+ +elp
rom +is amily an! employees. )+is +as le! to elieve t+at to +im t+e reli#ion will rewar! you as
lon# as you ollow t+e ri#+t prin"iples an! !o +ar! wor,D i t+ere is any t+in# missin# rom itD
well t+ere "an e a "+an#e in ate. 0rom all t+e aoveD it "an e sai! t+at Mr. >aeem C+au!+ary
t+in,s o internal lo"us o "ontrol rat+er t+an t+e external lo"us o "ontrol as +e ase! +is su""ess
on t+e +ar! wor, +e +as put in t+e usiness.
&1 a # e
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&& a # e
'iterature(f
$ntre&reneurshi
&
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'iterature evie
Servi"e uality is "onsi!ere! t+e lie o +otel Min J MinD 1**;F an! "ore o servi"e
mana#ement C+enD &--8F Servi"e uality is relate! wit+ "ustomer satisa"tion S+i J SuD
&--$F an! "ustomer satisa"tion is asso"iate! wit+ "ustomers revisit intention aeemulla+35:&5K35:35F. Customer satisa"tion plays an important
role in inan"ial perorman"e o +otel >ilssom Lo+nson J ustassonD &--1F. 2n +otel
in!ustryD as servi"e +as !ire"t intera"tion wit+ "ustomersD t+at is w+y "ustomer satisa"tion"an e a repli"ation o servi"e uality in +otels S+i J SuD &--$F. )+ere are some a"tors
t+at +ave si#nii"ant role in measurin# "ustomer asso"iation wit+ +otel: a#eD #en!erD
in"ome an! "ulture RyuD
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mana#ers s+oul! o"us on ,eepin# t+e numer o servi"e ailure low an! oserve "ustomer
"omplaints "onstantly Min J MinD 1**;F.
0or improvin# servi"e ualityD our aspe"ts were i!entiie!: 1F servi"e !eliveryD &F +otel
employeesD 3F #uest amenities an! surroun!in#sD an! 4F presti#e >aran#a/avana an! aran#a/avana an!
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servi"e employeesD an! t+eir appraisal system. )o rin# improvement in servi"e ualityD t+ere
is a nee! to emp+asis on tan#ile an! intan#ile assets >aran#a/avana an! aeemulla+ says. &-:-;K&-:35F. Besi!es t+isD !ierent "ustomers +ave!ierent per"eption o servi"e ualityD so t+ere is a nee! to "ater t+is prolem also S+i J
SuD &--$F. Customers expe"tation aout uality an! or inexpensive pro!u"ts is +i#+er
et,ova J San!er J Broma"+er &---F. Servi"e uality s+oul! e sensitive to
"+an#es in room li,e temperatureD "omort an! atmosp+ereD ut insensitive to "+an#es
in room sie an! ixtures Min J MinD 1**;F.
)+ree t+in#s are in"lu!e! in servi"e stan!ar!iation: 1F Servi"e uality stan!ar!iationD
&F servi"e met+o! stan!ar!iationD an! 3F servi"e pro"ess pro"ee!in# C+enD &--8F. 2n a
!evelopment met+o!olo#y t+ere are our sta#es w+i"+ in"lu!e reuirements analysisD
,nowle!#e a"uisitionD system !evelopmentD an! system assessment
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0e &-1-F. 'it+ t+e a!vertise o +otel in!ustry ein# intenseD it is "riti"al t+at +otels oer a
variety o resour"e an! more lexile orms to meet t+e nee!s o a "+an#in# mar,etpla"e
C+en#K
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eferen#es
>aran#a/avanaD eam!aoD o. ;D 1**$D
pp. 58&K5*$.
7alarie A. Heit+amlD eonar! . BerryD A. arasuraman 1**;F. W)+e Be+avioral
Conseuen"es o Servi"e ualityD )+e Lournal o Mar,etin#D 7ol. ;-D >o. & Apr.D 1**;FD
pp. 31K4;.
eonar! . BerryD A. arasuramanD 7alarie A. Heit+amlD %ennis A!sitD Lo+n o. & MayD 1**4FD pp. 3&K5&.
Lin#K+ua S+iD ian# Su &--$F. WEvaluation o
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7alia ). et,ovaD eter C. San!erD Aarnout C. Broma"+er &---F. W)+e use o uality
metri"s in servi"e "entresD 2nternational Lournal ro!u"tion E"onomi"s ;$D pp. &$K3;.
Bo E!var!sson 1**$F. uality in new servi"e !evelopment: Iey "on"epts an! a rame o
reeren"eD 2nternational Lournal ro!u"tion E"onomi"s 5&D pp. 31K4;.
'enKBao in &--$F. WAn empiri"al o servi"e uality mo!el rom t+e viewpoint omana#ementD Expert Systems wit+ Appli"ations 3&D pp.3;4X3$5