Student Biryani Strategic Management

Strategic Management
(Final Project)
Submitted To
Ms. Aleena Mukarram
Submitted By
Mamoona Naz
Anum Javed
Sumra Arif
Anam Saleem
Tayyaba Gul Niazi
Zarqa Zareen
MBA V
6th January 2014
Table of Contents
Executive Summary ............................................................................................................................... 1
Introduction ............................................................................................................................................ 2
Entrepreneurial Journey Of Student Biryani (History) .......................................................................... 2
Setup Of Student Biryani ................................................................................................................... 2
Philosophy Of Student Biryani: ......................................................................................................... 3
The Journey ........................................................................................................................................ 4
Company Profile ................................................................................................................................ 4
Products & Services ........................................................................................................................... 5
Strategic Objectives .............................................................................................................................. 6
Vision & Mission Statement .............................................................................................................. 6
Objectives: .......................................................................................................................................... 8
External Assessment .............................................................................................................................. 9
Food Industry: .................................................................................................................................... 9
I/O View ............................................................................................................................................. 9
Competitive Analysis: ...................................................................................................................... 10
PEST Analysis: ................................................................................................................................ 12
Internal Assessment ............................................................................................................................. 15
Resource based view: ....................................................................................................................... 15
Evaluation of Environment .................................................................................................................. 19
SWOT Analysis: .............................................................................................................................. 19
External Environment: ..................................................................................................................... 20
The External Factor Evaluation (EFE) Matrix: ............................................................................ 20
The Competitive Profile Matrix (CPM): ...................................................................................... 22
Internal Environment: ...................................................................................................................... 22

BCG Matrix for Student Biryani: ................................................................................................. 22
The Internal Factor Evaluation (IFE) matrix: ............................................................................... 24
Strategies Recommended ..................................................................................................................... 25
Market Development: ....................................................................................................................... 25
Franchising: ...................................................................................................................................... 26
New Product Development: ............................................................................................................. 26
Related Diversification:.................................................................................................................... 27
OD Through Training And Development: ....................................................................................... 27
Integration Of Internal System Through ERP: ................................................................................. 27
Strategic Alliances: .......................................................................................................................... 28
Backward Integration: ...................................................................................................................... 28
Marketing Efforts: ............................................................................................................................ 28
Conclusion ........................................................................................................................................... 29
EXECUTIVE SUMMARY
Haji Muhammad Ali started off selling Biryani in 1969 in a small area of Saddar, Karachi near some
educational institutes. He named his small business Student Caf. This business got so much fame
that helped in expansion of this small Dhaba into a complete dine out restaurant with working chains
in Pakistan but also in U.A.E, famous with a brand name of Student Biryani just because of its clear
mission, vision and by setting strategic objectives.
We have suggested some effective strategies to Student biryani in order to make it more efficient. By
doing External assessment and applying Industrial Organization view we got to know that there exists
a strong market of fusion of eastern and western cuisine due to changes in eating trends. Student
Biryani along with tradition food is also focusing on fast food to catch young generation. Analyzing
Student Biryani by Five Forces Model, we extracted that Student Biryani is facing strong competition
from KFC, McDonalds etc. and Customers can only be grabbed by offering innovative and quality
food. Political condition of Pakistan has direct impact on Food chains as Student Biryani belongs to
Karachi and there exists the instability.
From the angle of Resource based view, Student Biryani is focusing on team work by indulging all
departments to give their best to earn customer loyalty. Major Strength of Student Biryani is its strong
Market share in Karachi (Big city of Pakistan). It is accelerating towards U.A.E as well and availing
opportunities to expand it to U.K and U.S.A as well to promote Asian food.
The suggested strategies are Market & Product Development, Related Diversification, Backward
integration, Franchising, Organization Development, Marketing efforts and information integration
would really help Student Biryani to attain a big market share in the Food industry of Pakistan.
1
STUDENT BIRYANI
Introduction
Student Biryani is a famous national brand making waves in the ethnic food
markets in Pakistan since 1969. It is enjoying market leadership by
providing Biryani with a consistent taste and quality. It is having the largest
franchise network of outlets within the country by having its presence in
the major urban cities of Pakistan. It has already expanded its market
internationally by stepping in UAE and exploring its potential market in
UK, USA and Europe soon.
Entrepreneurial Journey Of Student Biryani (History)

Student Biryani is one of the impressive examples of entrepreneurship in
Pakistan. It started off with a sunny afternoon of October 1969 when 40
years old man Haji Mohammad Ali came up with an idea of supplying
Biryani in Saddar Karachi. As biryani was a popular dish for the masses and
the area was deprived of a proper food supplier, so, it was an ideal time and
place to start selling this popular dish. This prompted Haji Sahib to test the
market by selling Biryani.
The Biryani was prepared by Haji Mohammad Ali and his family members at home, from homemade
spices and recipe. The set up was a small Dhaaba with a bamboo roof supported by wooden pillars,
with waiting staff comprised of two elder sons serving with limited seating capacity. It started off with
one tumbler (Daig) of Biryani serving about 40 people per day. So, it was a humble beginning with
that popular taste of Biryani which dominated the business name of Caf Student, and now Student
Biryani is the title of fame serving nationally as well as internationally on a large scale.
Significance of Name Caf Student

As the outlet was surrounded by various educational institutes i.e. St. Joseph, St. Patricks, St.
Pauls and various Government schools so thats why it was named Caf Student to attract students
in order to provide them quality Biryani with economical price to grasp the market.
Improvement in Infrastructure
Patience and hard work resulted in a stable and gradual increase in the business. Responding to the
market demand resulted in various milestones achievements. In 1976, the first infrastructural
improvement was made by creating a seating capacity of a hundred people.
Afterwards, there was a series of daring business decisions taking into account various needs
spanning from business development, beating competition, making use of technological
improvements, development of management systems, creating a niche market, to ensure a
dominating presence within this competitive market.
Started off by standing behind the stall with few plates and a bucket full of aromatic rice Biryani
catching attention of passersby is now a well-known Dine out Restaurant. From a humble start to
becoming a brand, from a brand to a trend and from a trend to an icon, it has come a long way.
This has of course been possible through extreme hard work, a clear vision and unfailing customer
loyalty.
Student Biryani is an organization built up totally, on hard work, passion, honesty and dedication.
1969
Haji Sahib started off with opening Dhaba Hotel with limited seating capacity.
1976
Made arrangements for a proper seating area.
1983
Setup a restaurant as a joint venture in Saudi Arabia.
1989
Initiated process to start a large Restaurant (300 seats)
2000
Started Home Delivery services.
2003
Dedicated wireless communication system was introduced.
2005
Opened Nursery Take away.
2006
Expansion of Saddar Restaurant (900 seats)
2007
Opened branches at all important places of Karachi.
2008
Set up a State-of-the-Art Call Centre for centralized Order taking.
2008
Opened branch at North Karachi covering all areas in Karachi.
2008
Opening up Branch at Fortress Stadium, Lahore.
Name of the
Cafe:
Main Branch:
Other Branches:
International
Branches:
Website:
Student Biryani
ZC-57 Katrak Road, Saddar, Karachi 74400,
Pakistan.
Karachi and Lahore.
UAE (Dubai, Abu- Dhabi, Kuwait)
http://www.studentbiryani.com/
4
Products:
Biryani Bucket
Burger
Biryani Tumbler
(Daig)
Student Family/
Party Pack
Kids Biryani
Tin Pack
Meal
Sweet Dishes
Services:
For Student Biryani, customers are priority and they have adopted a number of approaches to serve
their customers in the most efficient way.
Dine In Restaurants
Student Biryani ensured their presence in almost all the
main residential, commercial and business areas all across
Karachi through their own and franchised restaurants.
Take Away
Take Away Counter Service is available in all restaurants for customers satisfying their various
types of needs. This service is cherished by customers due to its high level of efficiency.
5
Home Delivery Service

Through a modern centralized Call Center System and
dedicated motorbike service delivers food at customer
doorstep with highest level of efficiency. Delco Units are
the setups serving delivery operation for customers of far
areas from any restaurant.
Remote Resort Bulk Delivery

This unique and daring service is a great initiative. By adding spice to the joys of picnickers,
they deliver delicious hot foods at the picnic points of your choice, within or around the city.
Corporate Sales/ Institutional Catering

Student Biryani is having the capacity of catering to big orders of any volumes keeping
consistent taste and service standard. In addition they offer Prepaid Meal Voucher for their
corporate customer which may be co-branded as per their requirement.
Party/ Outside Catering

They have a big kitchen facility run by their experienced chefs. They also cater to the needs of
bulk supplies for all kinds of parties, birthday functions, wedding, and Religious festivals.
Strategic Objectives
A vision statement identifies what the company would like to achieve
or accomplish. A good vision statement provides the inspiration for
the daily operations of a business and molds its strategic decisions.
Aspirational in nature, vision statements lay out the most important
primary goals for a company.
Whereas mission statement defines the way through which the vision
is to be accomplished. Mission is the business that the company wants to carry on to achieve the desired
future place.
Vision Statement of Student Biryani

It shows that Student Biryanis vision is Customer focused. Their vision is to give quality and tasty
Asian food to the customers. We can say that Student Biryani vision is clear and concise. Student
Biryani is no doubt focusing on their vision and applying them through the help of their Mission
Statement.
Our implicit faith is to

reach at your level by
serving authentic and
delicious Asian foods.
Mission Statement of Student Biryani

Mission statement of any organization focuses on attaining long term organizational goal by
creating small objectives. Student Biryanis Mission statement states:
Our mission is to
the
tastes and needs of our

consumers. Our efforts are
focused on bringing the most
and
products to the market.
7
Student Biryanis Mission Statement is fulfilling some of the Mission Statement components that
are:
Customers: Satisfy the tastes and needs of our consumer.
Product or services: Innovative food products although they should have used the world
Asian.
Markets: They used the word market but they can elaborate it National and International
markets as they have stepped up in International markets as well i.e.: UAE.
Technology: Although they havent used the technology factor in their mission statement but
word innovative is depicting advancement factor.
Self-Concept: Distinctive and innovative word is depicting their competence.
Philosophy, Concern for survival, growth and profitability, public image and employees is
although missing in the mission statement of Student Biryani but still its Mission statement is
concise, clear and focused on their main objective.
Youve got to think about big things while youre doing small things, so that all the small things go
in the right direction.
Alvin Toffler
To bring their dreams into reality, they are working towards creating a kitchen infrastructure in line
with internationally recognized kitchen standards. Along with this, a careful and objective strategy has
been adopted and the following strategic objects taken up:
The objective is to attain the number one position in providing quality food with national
standards, taste and freshness.
The aim is to be a leader in the area of ethics and values in the continuously growing food
industry in the national markets.
Superior quality food in reasonable prices.
Maximization of customer satisfaction levels.
Deliver hygienic and healthy food items.
8
External Assessment
In Pakistan fast food industry is growing year on year at a very fast rate due to innovation and the
presence of multinational chains like (McDonalds, KFC, and Domino). These multinational chains
have set high levels of revenue generation by using market Led approach and by modifying their
menus. In Pakistan, multinational chains are considerably more expensive, they usually are frequented
because they are considered chic and somewhat glamorous and because they usually are much cleaner
than local eateries.
Due to such aspect there is a rapid increase in trend of fast food restaurants outlets in recent years.
These are satellite shaped outlets which have a very little or no seating capacity formed in nontraditional places such as plazas, office buildings, airports. Etc. This is done to provide more
convenience to the final consumer.
Nowadays not just in Pakistan but all over the world hectic jobs which people try to cover on daily
routine and tend not to go to places to eat instead they call in urgency for food. Such scenarios also
build the rate of growth of a product. In Pakistan, similar kind of situation has been developed over
the past years and people are trying to save their job time as much as they can.
Secondly an option has increased due to innovation of fast food in the category of eatables and it has
become a taste for the consumers of all ages due to separate type of meals with different prices suitable
for everyone.
Traditional food places like Savour foods, Student Caf, Rahat Bakers, Tehzeeb Bakers, Namak
Mandi, Des Pardes and alike are focusing on the fusion of western and eastern cuisine to best suit the
changing needs of the customers. The urgency of life has forced them to bring out delivery vans to sell
on demand to far areas.
Industrial view also known as I/O view propagates the importance of external factors upon the growth
and success of any business. In this view, strategy is about the firm creating for itself a market
position whereby it can defend itself from competitive forces and/or influence them in a way that
places it at an advantage in relation to its competitors and suppliers.
9
Considering the same approach the organization under study has leapt out of the bounds of internal
focus. It is competing in the industry by molding its resources (internal factors) to strategize in the
market of competitiveness.
The management at Student Biryani doesnt shut its eyes to the
astoundingly changing consumer behavior nor does it ignore the
competition. Since the food industry is changing rapidly with the changing
lifestyles, Student biryani has come forward with products and services to
best capitalize, free delivery, catering services, urgent delivery, and fast
food items being some of the developments that have been made to adjust
to the changing climate.
We do not place especial value on the possession of a virtue until we notice its total absence in our
opponent.
Friedrich Nietzsche
Porters Five-Force Model:

Porters five-force model is framework to analysis the
industry. This model is an analytical tool which helps
Potential
entry of new
competitors.
organization to understand the competitor behavior, its

strengths and weakness and the strategic position of firm
which helps the firm to make strategies in order to take
the competitive advantage in the industry.
These five forces are
Bargaining
power of
customers.
Rivalry
among
competing
firm.
Potential
entry of
substitute
products.
Rivalry among Competing Firm:

Competition in the food industry is very high. Now
Bargaining
power of
suppliers.
trend has changed people like to eat food outside

from different restaurants they have busy life and
want cooked meal therefore number of restaurants has increased you can see restaurants .
10
The competitors of student biryani are:
BBQ Tonight.
Food Centre.
Karachi Food Centre.
Bundoo Khans Restaurants.
Pakistan Foods.
KFC
McDonalds
All these firms provide same products as Student Biryani provides. Student biryani competes
with these restaurants on different basis like Food Center provide food at low price and has
variety of dishes. Pakistan Food also provides food at low prices. KFC provides quality food
and has relaxed and pleasant environment. Karachi food has variety of food and free home
delivery.
Potential entry of new competitors:

If the barriers to enter the industry are high, than there are less chances of the entry of new
business and less threat for existing players. In restaurant industry the threat of new entrants is
very high as there is no as such legal restriction in opening restaurants and any other barrier.
Opening of restaurant is not too much expensive one can easily open a restaurant.
Bargaining power of supplier:

Suppliers are very important for the success of business because they provide the resources to
produce product. As they supply the raw material they have power over industry. In restaurant
industry the bargaining power of supplier is very week because there is large number of
suppliers and cost of switching is quite low. Raw material is rice, meat, chicken and different
spices etc. all these are easily available.
Bargaining power of customer:

Bargaining power of customer is very essential aspect. Try to fulfill the expectation of customer.
Prices should be low as compared to the competitors and provide good quality product.
Bargaining power of customer is high in the restaurant industry because the restaurant industry
has much matured, preferences of customer has changed they want quality product at
11
reasonable prices. If someone is not providing quality product, charge reasonable prices or
variety of product then they can easily switch to another one that provides which they want
because cost of switching is very low.
PEST analysis (Political, Economic, Social and Technological factors analysis) describes a framework
of macro-environmental factors used in the environmental scanning component of strategic
management. These macro-economic factors are the key determinants of the opportunities and threats
for both small and large organizations. Moreover, they have a major impact on the strategies of any
organization.
The food intake of the people of any country is related to a number of factors like income of consumers,
employment status, educational level and cultural differences. These factors largely affect the market
growth rates, trends, structure, stability, customer preferences, profitability, etc. A successful
organization will not only understand existing factors but also forecast change so that it can take
advantage of changes in the environments in which it operates.
In this regard, Students Biryani had been involved in series of business decisions taking into account
various market needs spanning from business development, beating competition, making use of
technological improvements, development of management systems, creating a market niche, to ensure
dominance.
Political:
Political factors are basically to what degree the government
intervenes in the economy. Specifically, political factors include
areas such as tax policy, labor law, environmental law, trade
restrictions, tariffs, and political stability. Changes in patents laws,
antitrust legislation, tax rates, and lobbying activities can affect
firms significantly. These factors have a direct impact on the
strategies of all organizations and so the political forecast becomes
an important part of external audit.
Student Biryani being the most famous food business of Karachi has to face severe conditions of
political instability. Due to the widespread terrorism and violent conditions, there prevails
unfavorable circumstances which has a direct impact on the daily earnings of the organization.
12
insecurity for almost all the businesses. At times, government has to impose curfew due to
Moreover, there has been a continuous increase in sales tax rates being imposed by government
which affects the profits. There exists a potential for the firm to have its own distributors to
distribute its rice and other ingredients countrywide as well as internationally. For this it has to
take into consideration, the tariffs, trade agreements and other restrictions.
Economical:
Economic factors include economic growth, interest rates, exchange rates and the inflation rate.
These factors have major impacts on how businesses operate and make decisions and on the
potential attractiveness of various strategies.
During past few decades, the purchasing power of people has been increased and customers are
willing to pay for the products that ensure quality and meet their demands than ever before. Higher
level of income enables customers to dine out more often.
Consumers are becoming more budget and health
conscious demanding healthier menu and the
lifestyles of people are changing. This provides
an opportunity for the firm to generate maximum
revenue by utilizing inputs at maximum.
Increasing competition in an already struggling
market is causing it to change its menu and
broaden its product offerings in order to stay
afloat.
Furthermore, inflation rate is also observed to be showing a continuous increase due to which
Student Biryani is also increasing its prices accordingly but at relatively slow pace as it is not meant
to target upper class or charge premium.
Social:
Social factors include the cultural aspects and include health consciousness, population growth rate,
age distribution, career attitudes and emphasis on safety. Consumers buying patterns is one of the
major determinants for the firm to formulate its strategies regarding products. Students Biryani has
an edge over other fast food businesses in Pakistan as it focuses on serving the most important
13
traditional cuisine Biryani. This takes into account the cultural implications and trends in the
society where there exists strong preference for local food items which helps to generate sufficient
demand.
It basically targets youth as the name indicates towards students so the prices are set according to
the affordability of students. Despite of less advertisement, Student Biryani enjoys a wellestablished brand image and customer
loyalty mainly due to positive word of
mouth by satisfied customers. It deals
with the ethical issues in a quite well
manner by providing halal, healthy
and tasty food ensuring food safety as
well. It also considers its corporate
social responsibility effectively.
Technological:
Technological factors include technological aspects such as R&D activity, automation, technology
incentives and the rate of technological change. Revolutionary technological changes and
discoveries are having a dramatic impact on organizations all over the world. The internet has
changed the very nature of opportunities and threats by altering the life cycles of products,
increasing the speed of distribution, and erasing limitations of traditional geographical markets.
The pace of technological change is
increasing and wiping out businesses
every day, so in order to survive in the
market, firms need to adapt to the
technological
changes
as
soon
as
possible. Students Biryani has performed

quite
well
in
this
regard.
They
incorporated the technology into their

system efficiently as well as effectively
which
contributes
to
attaining
competitive advantage.
They also offer prepaid meal voucher for their corporate customer. Restaurants are renovating
14
Due to increasing demand, they started taking orders online using a centralized call center system.
outlets and also locating outlets on more prominent locations and upgrading the facilities of
kitchens. Processes are streamlined to improve efficiency.
Technology is also being used to improve the supply chain management system. The organization
has a unique remote resort bulk delivery system which uses a fleet of Suzuki pickups, and Shahzor
Trucks for bulk deliveries having a wireless communication system.
Internal Assessment
If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you
know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know
neither the enemy nor yourself, you will succumb in every battle.
Sun Tzu~ The Art of War
It is the internal analysis of the organization, in which the

strengths and weaknesses of any organization is known. The
aspects which are part of RBV include managerial, marketing,
research and development, financing and operations.
Student biryani is a Pakistani brand, which serves locally in
Karachi and Lahore and internationally in Dubai and Abu Dhabi.
Management/Administration
Student biryani has a very strong managerial team which makes its business a success. These
managers are performing their best in related departments.
The administration department is working very effectively and it is dealing with all the duties such
as fielding telephone calls, receiving and directing the customers, filing and faxing, handling of
different software, coordinating the work activities, management of all the administrative details,
handling of all the inquiries and responding to all the complaints regarding the work performance.
15
Marketing
Their marketing department is targeting all the age groups. They provide
their services on all the religious as well as other special occasions. Their
special deals and offerings are their major promotional tools.
place and Promotion on the bases of the customers.
Customers
Student biryani has analyzed their customer very much to give them
value by providing according to the demands of their customer.
Product
Sales and
marketing
Finance and
accounts
Quality assurance
Product
development
Business
development
Inventory control
departments
Student Biryani
As marketing is responsible for four Ps which include Product, Price,
Administration
Operations
The products which they supply are biryani and other related food
items. They provide biryani with a unique same taste and quality every
time.
Research and
development
Catering
Price
The pricing strategy of student biryani is very effective according the price sensitive customers
of Pakistan.
Place
The distribution channels of students are very effective whether its restaurants or home delivery
service they provide the product always on time. For this purpose they have very skilled
workers and delivery staff. They provide services within 30 minutes of order whether is for
single plate or for a whole Daig.
Promotion
The promotional mix which they are using is very much economical yet effective. As their
target market is students and for communication with them, they are using social media sites
like Facebook page. On the other hand they are also providing different deals and offers
depending upon the occasions now a days they are promoting on the bases of Rabi-ul-awal.
16
Finance
Student biryani is conducting business on franchising basis. For this purpose they do not need
much of the money for their future plans. The franchising strategy is helping them in expanding
and in growth because it requires less internal resources.
One
time
Monthly
Upfront
franchise fee
Royalty
percentage of
their total sales,
Marketing and
promotional
contribution of
percentage sales
Periodic
Renewal fee
Quality Assurance:
Quality assurance (QA) is a way of preventing mistakes or defects in manufactured products and
avoiding problems when delivering services to customers.
Student biryani has a quality assurance department which refers to administrative and procedural
activities implemented in a quality system so that requirements and goals for a product, service or
activity will be fulfilled. It is using the systematic measurement, comparison with a standard,
monitoring of processes and an associated feedback loop that confers error prevention.
Product Development:
The product development department of student biryani is fully devoted toward the overall
development of the product and always new and additional taste and healthy effects to their
product. In addition Student Biryani always try to come with a new specification in their product.
Business Development:
This department of student biryani is always hunting for new opportunities in order to increase and
their growth. They also try on finding the areas where they can maximize their strengths.
Operation:
Operation department of student biryani is concerned with all the features of the product from the
time of its manufacturing that is cooking till its final destination that is when it is serving to the
final customers.
17
Inventory Control Department:

This business is really dependent on the inventory level and shortage or surplus of inventory can
affect the entire business. The inventory control department has a proper check over inventory.
They always remain updated with the external environment and political conditions and effectively
maintain their inventory level
Research and Development:

The research and development department is major strength and always find out the best
opportunities to get a dominant position in the market that is the reason they find out the
opportunities for their business overseas.
Catering Department:
Their catering department is very energetic and provides services at remote areas as well. They
even provide their services at the picnic areas and on special events and occasions as well which
is the reason for their successful business.
Human Resource Department:

Their HR department is working effectively along with other departments and its long term
commitment is being appreciated by the top management. They are making use of strategic
management concepts at each level
Their goals and objectives are measurable. Managers at all levels believe on strategic planning and
they delegate the authority in order to get the best usage of time. There is a complete description
of each job and the requirements for each job, their recruiting criteria completely describe their job
specification.
As far as job satisfaction is concerned their employees are really satisfied with the salary package,
working hours and work environment. All employees are much diligent toward their duties in
addition the absenteeism rate is also low.
18
Evaluation of Environment
"Build up your faith while starving the fears."
Jaachynma N.E. Agu
SWOT analyses is also known as TWOS analysis in which the internal strengths and weakness and
external factors opportunities and threats are analyzed. This is a very effective tool to analyze and
examine the overall performance of any organization. SWOT analysis of student biryani is as under:
Strengths:
Student biryani is well recognized brand. It has strong brand name in Karachi, Lahore and UAE.
Student biryani got brand of the year award in 2009.
Student biryani has unique taste and provides food of good quality. The recipe of biryani has
never been replicated by any restaurant.
Student biryani always provides free home delivery service to its customers and always on time.
Prices which are being charged by the company are reasonable yet economical.
All the franchisees are providing all three the Take Away service, dine in and home delivery
to their customers.
Also provides in bulk for all kind of parties and to the different organizations for their daily
consumptions.
Marketing specially the promotion done by the company is very strong.
The company is also receiving online orders for delivery and reservation.
Weaknesses:
The menu is limited due to which they are losing their market share.
Currently customer retention is a problem for student biryani as they are losing customer
loyalty.
Student biryani doesnt focuses on R&D' and on innovating news products.
The organization does not focus on building relationship with customers.
Student biryani is currently serving in limited areas of Pakistan.
19
Opportunities:
Expansion in Pakistan through franchising or direct expansion.
Expansion in international market like in USA, UK.
Increase the variety of products.
There are opportunities in Rawalpindi and Islamabad as the literacy rate is very high in twin
cities, there are more students which mean more customers.
Threats:
Economic changes like inflation rate, income of customers and affect the sale of student biryani.
Political instability and poor law and order situations can affect the sales of the company.
There are many direct and indirect competitors of student biryani, which have a negative impact
on the performance of the organization.
There is a threat of new entrants in food industry because biryani is not a difficult dish to create.
Customers are also a big threat because now it is very easy to switch to another brand.
The External Factor Evaluation (EFE) Matrix:

An External Factor Evaluation (EFE) matrix is strategic management tool which allows strategist
to summarize and evaluate the social, cultural, economic, demographics, political, legal and
competitive information (opportunities and threats in the external environment). It tells about the
current strategic position of company whether the firm take the advantage of opportunities and
minimizing the threats. It helps to strategist in formulating new strategies on the basis of existing
position. The EFE matrix is developed in five steps:
List key external factors, all the opportunities and threats. The number of factors should be 1020.
Assign weight to each factor ranges from 0.0(not important) to 1(very important).The rate
indicate the relative importance in the success of firm. The sum of all the weights should be
one.
Assign the rate to each factor between 1 and4 which indicate how firm well firm strategies
response to the factors.
Multiply each factors weight by its rating.
20
Sum the weighted scores for each factor to determine the total weighted score. The highest
possible score is 4 which indicate the firm is responding in an outstanding way to the
opportunities and threat and lowest possible rate is 1 which means firm strategies are bad and
the average is 2.5.
Rating is done between 1 and 4 to each key factors, where
4 = superior
3 = above average
2 = average
1 = poor
Student Biryani
Weight
Rating
Weighted score
Expansion in Pakistan(local market)
0.15
0.3
Expansion in international market(in USA,UK)
0.14
0.28
Increase the variety of product
0.12
0.24
Economic changes
0.09
0.27
Law suits
0.05
0.2
Competitors
0.15
0.45
New entrants in industry
0.10
0.2
Change in taste of customer
0.08
0.16
Change in purchasing power of customer
0.07
0.21
Health conscious people
0.05
0.1
Key external factors

Opportunities
Threats
Total
2.41
The weighted score is below the average which means the firm strategies are not capitalizing on
opportunities and avoiding threats so the company should have to formulate new strategies in order
to take the advantage of opportunities and to minimize threats.
21
The Competitive Profile Matrix (CPM):
Critical success factor
Student biryani
BBQ tonight
Food center
Karachi foods
Weight
Rating
Score
Rating
Score
Rating
Score
Rating
Score
Advertising
0.12
0.48
0.48
0.48
0.48
Product quality
0.10
0.4
0.3
0.3
0.4
Price competitiveness
0.10
0.3
0.2
0.2
0.3
Customer service
0.08
0.32
0.16
0.16
0.16
Product innovation
0.13
0.26
0.26
0.39
0.52
Global expansion
0.10
0.2
0.10
0.10
0.10
Local expansion
0.10
0.2
0.10
0.10
0.10
Market share
0.05
0.2
0.15
0.15
0.10
Financial position
0.10
0.3
0.3
0.3
0.3
Taste
0.12
0.48
0.24
0.24
0.36
Total
3.14
2.29
2.42
2.82
The weighted score of student biryani is 3.14 which mean overall company is stronger than the
major competitors like BBQ tonight, Food Centre and Karachi Foods. Student Biryani is
leading due to its taste, Customer Service, Advertisement, and Product quality. Meanwhile the
critical factor of local expansion and innovation are not been given due attention.
BCG Matrix for Student Biryani:

Boston Consulting Group Matrix is commonly known as BCG matrix, in BCG matrix is portfolio
planning model which is used to measure the performance and profitability of different units based
on their growth and market share.
Student biryani does not only provide biryani but they also provide other different food items
Chicken biryani
Beef biryani
Kids biryani
Chicken nuggets
Zarda
Crispy chicken burger
Haleem
22
Market Share
Cash Generation
High
Low
Crispy chicken
burger
Market Growth
Cash Usage
High
Zarda
Low
Chicken
nuggets
Chicken
biryani
Cash Cow
The product with high growth and high market share is the chicken
biryani. Chicken biryani is the product which is the market share
representative. Most of the cash is generated from sale of chicken
biryani. As the market of chicken biryani is well established thats
why there is a low growth in the sale of biryani. Biryani is in lime
light of student biryani product portfolio.
Star
Zarda is a part of star category because of its high growth rate and
high market share. The market of Zarda is increasing and on the
23
same time Zarda is a good representative of student biryani portfolio.
Question Mark
There is a question mark on the future of crispy chicken burger
because of its high growth and low market share. The demand of
crispy burger is increasing but the share of the market is less in the
portfolio of student biryani.
Dog
Chicken nuggets are the dogs of BCG matrix as there is low growth
and low market share representation. Student biryani customers
dont see the food provider as a brand for western food rather they
recognize it to be a Pakistani cuisine caf.
The Internal Factor Evaluation (IFE) matrix:

Internal Factor Evaluation (IFE) matrix is a forecasting tool of strategic management, which helps
to analyze the internal factors affecting the performance of the company. Internal factors include
the strengths and weakness of the organization. Through this analysis the strategic position of
company is examined and helps to develop the further strategies to improve the performance of the
organization. The IFE matrix is developed in five steps:
List key internal factors all the strengths and weakness. The number of factors should be 1020.
Assign weight to each factor ranges from 0.0(not important) to 1(very important).The rate
indicate the relative importance in the success of firm. The sum of all the weights should be
one.
Assign the rate to each factor between 1 and4 which indicate how firm well firm strategies
response to the factors. where
o 4 = superior
o 3 = above average
o 2 = average
o 1 = poor
Multiply each factors weight by its rating.
Sum the weighted scores for each factor to determine the total weighted score. The highest
possible score is 4 which indicate the firm is responding in an outstanding way to the
24
opportunities and threat and lowest possible rate is 1 which means firm strategies are bad and
the average is 2.5.
Student Biryani
Key Internal factors
Strengths
Well recognized
Quality
Unique taste
Economical prices
Marketing
Financial resources
Weakness
Menu is limited
Decreased customer loyalty
No innovation
Limited area served
Total
Weight
Rating
Weighted score
0.1
0.15
0.2
0.1
0.15
0.05
4
2
3
4
2
2
0.4
0.3
0.6
0.4
0.3
0.1
0.05
0.05
0.05
0.1
1
3
4
3
2
0.05
0.15
0.1
0.2
2.6
The weighted score of internal factors analyses is average 2.6 which means they are using mediocre
strategies and not capitalizing and utilizing the full capacity of the all available resources and are not
using these resources to reduce their weaknesses. With the help of the analyses it is realized that there
is a strong need to emphasis on the strategic management of the organization.
Strategies Recommended
By looking at the SWOT analyses it is evident that Student Biryani needs to expand their operations
to other markets locally and internationally. Locally, they should operate in the major cities like Twin
cities, Multan, Faisalabad, Hyderabad, Quetta, and Peshawar. These cities are known to be populated
with the youth. And youth being the main target of Student biryani from the outset, promises a great
market share and growth. Cities like Faisalabad and Rawalpindi have mostly working or studying
youth, who need eateries like Student biryani for their survival in fast moving era.
The Recommendation here is to tap these unsought markets by opening up branches near to the
educational institutions, commercial areas and residential colonies, as did Savour Foods by opening
up in the midst of commercial Islamabad (Blue-area). Following the same approach Student Biryani
25
can increase the market share.
Globally, Student biryani should concentrate on the geographical areas/regions which are populated
by Asians; such as USA, UK, Saudi Arabia, Qatar etc. These areas have been the focal point for the
traditional cuisine providers for the last 2 decades. Being a brand that is well recognized in Pakistan
and UAE it can surely hope to compete with the best quality food, as a competence because quality
and taste are all what it takes to win a foodie customer.
"Great results, can be achieved with small forces."

Sun Tzu (The Art of War)
To achieve Market development, Student Biryani should give franchises to those who have passion
for excellence, are committed towards profession, have vision to explore and expand and have capacity
to afford the price of promising business. Franchising can lead the business to new geographic areas
without massive expansionary investment.
To make better out of it, the franchises must be given to those who plan to open them in educational
and commercial/business areas as explained before. Here caution should be made to eliminate the
chances of quality deterioration by centralizing the quality and marketing efforts.
If you want something new, you have to stop doing something old
Peter F. Drucker
An organization must innovate in the form of new and successful products, same is for Student biryani;
it must innovate and develop new products that satisfy masses to survive and grow in the ever changing
environment. With the flagship of Biryani it can go into Pulao business to increase the number of
customers by capitalizing on its brand name.
They should bring new tastes into their menu, innovation in the term of tasty traditional food
augmented with technological ease of access i.e. fast delivery can take the brand to success. As done
by McDonalds, every now and then they introduce new deals and tastes and whatever gets more than
expected demand gets a place in the menu.
Biryani, Pulao and such cuisines can be transformed into new food items by a few tweaks in the recipe
for which having creativity and a magnificent taste bud is the prerequisite.
26
Related diversification can be taken up as a strategy for expansion. In this case, the firm can bring out
new recipes from the same resources i.e. rice, chicken, and spices. The possibilities are limit less. It
should spin off in to new businesses that have similar resources but different nature, for example
chicken can be used in ready to cook meals, package stock cubes, fried delights, bakery items etc.
This diversification would help the organization to explore new horizon without developing new
supply chains, results if favorable would bring out a star otherwise no great damage would incur while
experimenting.
Training employees correctly is essential for any successful restaurant. Food service is a customercontact-intensive business. Staff needs to be attentive to customer demands while displaying the
personality of the organization. The restaurant business is challenged with the trade-offs of quality and
speed of service. Staff must manage these constraints effectively; training will help to achieve this
goal.
There is no right way to train a food service staff; instead, the organization should pick and mix
methods to meet operation's particular situation and needs that now is the communication skills of the
waiting staff. The waiting staff, should be well trained before hitting the floor. They must be skilled
enough to deal with extreme situations.
As the organization expects to expand the logistical and information handling problems will arise. To
curtail this problem the firm must integrate management information system through ERP (Enterprise
Resource Planning). ERP is basically a set of software that gather and store information regarding the
processes of an organization, making it interactive to ease decision making.
A data Base must be developed to centralize the flow and storage of data for problem solving and
decision making. It will help the management to have real time information for better decision making.
It will also make the processes of the organization transparent to the management making it responsive
to the problems as they arise.
making the delivery of services exponentially faster than that of the traditional data system.
27
The centralization of the data will also make the financial and operational processes easy ultimately
As the organization is going global the procurement of raw material at a low cost with good and
consistent quality becomes difficult. Student biryani can form strategic alliance with the exporters of
Rice in Pakistan, to supply the same quality rice to off shore franchises of the brand, to ensure low cost
and consistent quality supply of the major ingredient of the famous biryani. This will not only ensure
cost reduction but will also make possible the consistency in quality.
In food business everything comes down to taste and quality of the food. To ensure this many
organizations do backward integration that not only brings desired taste to the product but also
eliminates the supplier authority and manipulative prices, while standardizing the cost.
Being a small and rapidly growing food chain, Student Biryani cannot be expected to get into massive
backward integration as rice being the basic raw material cannot be produced in house without major
investment. But chicken, the other important ingredient can be made an in house resource by acquiring
poultry farms; the trick here would be to go slow, one by one acquire the suppliers to ensure desired
quality production.
Spices the most important of all can be processed in house to ensure the required and desired quality
and this integration can be made with least investment.
A product is incomplete without marketing. Organizations spend more on marketing than on the
production itself, reason?? The more effective the marketing efforts are the more satisfied and loyal
customer an organization can expect to have. Marketing is everything an organization does for a
flawless delivery of product/services to the customer. Whenever any aspect of an organization comes
into contact with a customer it is an opportunity for marketing. After all;
A satisfied customer is the best business strategy of all.
Michael LeBoeuf
In food business marketing is all the more essential, customer should be aware of the services a
restaurant is providing so that he can best benefit from them. Organizations have come forward with
different price levels.
28
the idea of meals and deals that are packages containing different combinations of food items at
Student Biryani also offers deals for different customer segments; marketing department has devised
perfect product and price combinations to satisfy the customers, while making the distribution top of
the class. But it has failed to give much attention to the promotion facet of marketing and has narrowed
the focus to social media marketing; where it can certainly use print media to attract customers, and
also could have used TVS for occasional marketing campaigns. No wonder that brand awareness of
Student biryani is limited to Sindh and Lahore.
Conclusion
A company without a strategy is willing to try everything
-- Michael Porter
After the analysis of Student Biryani with the help of different strategic management tools we can
conclude that all though Student Biryani is a well-known brand but strategies and managerial activities
of firm are very weak. There is need to develop strong strategies which include Market developing,
franchising, related diversification, backward and forward integration, organizational development and
marketing efforts. All these strategies and efforts will not only increase the financial profits of the
firms but will also increase the customer satisfaction and will bring customers loyalty. There is also a
need to make efforts to transform weaknesses in to strengths and create immunity from threats.
29
References
Facebook. 2014. Student Biryani. [online] Available at:
https://www.facebook.com/StudentBiryaniOfficial [Accessed: 1 Jan 2014].
Foodjournal.pk. 2014. Pakistan Food Journal.. [online] Available at:
http://www.foodjournal.pk [Accessed: 1 Jan 2014].
Hafeez, Z. 2013. Strategic Management at Student Biryani. [radio] Skype, 28 Dec.
Studentbiryani.com. 2014. Student Biryani Pakistan & Dubai - Biryani | Chicken Biryani
| Order Online. [online] Available at: http://studentbiryani.com [Accessed: 5 Jan
2014].
30

Student Biryani Strategic Management

Uploaded by

Document Information

Original Title

Copyright

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Student Biryani Strategic Management

Uploaded by

Copyright:

Strategic Management

Internal Environment: ...................................................................................................................... 22

Entrepreneurial Journey Of Student Biryani (History)

Significance of Name Caf Student

Made arrangements for a proper seating area.

Setup a restaurant as a joint venture in Saudi Arabia.

Initiated process to start a large Restaurant (300 seats)

Started Home Delivery services.

Dedicated wireless communication system was introduced.

Opened Nursery Take away.

Expansion of Saddar Restaurant (900 seats)

Opened branches at all important places of Karachi.

Set up a State-of-the-Art Call Centre for centralized Order taking.

Opened branch at North Karachi covering all areas in Karachi.

Opening up Branch at Fortress Stadium, Lahore.

Home Delivery Service

Remote Resort Bulk Delivery

Corporate Sales/ Institutional Catering

Party/ Outside Catering

Vision Statement of Student Biryani

Our implicit faith is to

Mission Statement of Student Biryani

tastes and needs of our

Customers: Satisfy the tastes and needs of our consumer.

Self-Concept: Distinctive and innovative word is depicting their competence.

Superior quality food in reasonable prices.

Maximization of customer satisfaction levels.

Deliver hygienic and healthy food items.

Porters Five-Force Model:

organization to understand the competitor behavior, its

Rivalry among Competing Firm:

trend has changed people like to eat food outside

The competitors of student biryani are:

Potential entry of new competitors:

Bargaining power of supplier:

Bargaining power of customer:

possible. Students Biryani has performed

incorporated the technology into their

It is the internal analysis of the organization, in which the

place and Promotion on the bases of the customers.

As marketing is responsible for four Ps which include Product, Price,

Inventory Control Department:

Research and Development:

Human Resource Department:

Student biryani got brand of the year award in 2009.

Marketing specially the promotion done by the company is very strong.

Student biryani doesnt focuses on R&D' and on innovating news products.

The organization does not focus on building relationship with customers.

Student biryani is currently serving in limited areas of Pakistan.

Expansion in Pakistan through franchising or direct expansion.

Expansion in international market like in USA, UK.

Increase the variety of products.

The External Factor Evaluation (EFE) Matrix:

Rating is done between 1 and 4 to each key factors, where

Expansion in Pakistan(local market)

Expansion in international market(in USA,UK)

Increase the variety of product

New entrants in industry

Change in taste of customer

Change in purchasing power of customer

Health conscious people

Key external factors

The Competitive Profile Matrix (CPM):

Critical success factor

BCG Matrix for Student Biryani:

same time Zarda is a good representative of student biryani portfolio.