IDBMT001 Management Themes & Case Studies
NCUK INTERNATIONAL YEAR ONE BUSINESS
IDBMT001 Management Themes & Case Studies
2022-2023
Case Study Analysis Coursework:
Group Presentation and Individual Report
IDBMT001 Management Themes & Case Studies
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Case Study:
Mexican Restaurant Group, Wahaca, to Expand Operations in London
The restaurant group, Wahaca, announced plans earlier in 2022 to expand its number of
restaurants across London, UK, targeting environmentally conscious sites in areas such as
King’s Cross, Victoria, and the suburbs.
There are currently 13 Wahaca restaurants in operation and the company’s expansion plans
will mark a return to growth following the closure in 2020 of 10 of its restaurants in cities
such as Manchester, Liverpool and Bristol as a result of difficult trading conditions resulting
from the UK COVID-19 lockdowns and other related measures which impacted significantly
on the whole of the UK hospitality industry.
The founders of Wahaca, Thomasina Miers and Mark Selby, wanted to create a restaurant
business which was different from that of competitors and firmly built on a foundation of
sustainability which recognises the impact of their business on the environment, society,
supply chain and carbon footprint.
The focus on sustainability continues to be a driving force for the company in its expansion
plans. Co-founder Mark Selby is on record as saying, “We want to work with landlords to open
restaurants in places that share not only our ethos but are as committed as we are to taking
positive, affirmative action on the environment.”
Thomas Rose, co-founder of Wahaca’s exclusive property provider, P-THREE, added his
support to Mark Selby’s position saying “Landlords are rightly prioritising environmental social
governance (ESG) corporately, but there is a growing move to do so at an asset-level too as
they respond to changing consumer behaviours. While Wahaca’s new strategy lays down a
challenge, it is being welcomed by landlords and leading to some exciting conversations.”
The chain’s sustainable site selection strategy coincides with its introduction of carbon ratings
to its menus from this week, which it claims is an industry first for a British restaurant group.
Towards the end of 2021, the Wahaca restaurant chain released its avocado-free Wahacamole,
a sustainable alternative to guacamole, which is known to contribute to deforestation and
water shortages.
In January 2022, the company received three stars out of three from the Sustainable
Restaurant Association and its site in London’s Southbank has been named as the capital’s
most sustainable restaurant build.
www.wahaca.co.uk
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Task 1
With other members of your group use the case material provided, and appropriate
research, to produce a detailed PESTEL analysis that can inform Wahaca’s strategic
planning for its expansion of restaurant outlets across London.
[10]
Notes:
Your presentation should include an explanation of the nature and purpose of PESTEL analysis
and a detailed PESTEL analysis that can inform. All members of the group should be able to
justify the inclusion of each factor in the PESTEL analysis in a question and answer session at
the end your presentation.
Before the start of your presentation you must give a copy of your PESTEL analysis to your
tutor.
The presentation can take any format you choose but should be no longer than 15 minutes in
length – including time for questions and answers. Your presentation will be recorded for the
purposes of assessment.
The mark you receive for this part of the coursework assessment is based on the group
performance i.e. everyone in the group, regardless of their individual contribution to the task,
will receive the same mark.
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Task 2
Discuss the importance of each stage of strategy implementation to the success of
Wahaca’s proposed expansion of restaurants outlets across London.
[15]
Notes:
i) The answer should be no more than 1000 words (not including the reference list).
The penalty for exceeding this limit is a deduction of 10% of the overall mark.
ii) The assignment should be formatted in the following way:
Use Arial font
Use font size 12
Use 1.5 spacing
Use the title of the document as the header
Use your student name, number, class number and page number as the footer
iii) At all times you should express your ideas and develop your answers in your own
words. Of course, you may use quotes or refer generally to text books, quality websites
or journals. This is acceptable as long as they are properly referenced in the text and
acknowledged in a reference list.
iv) Do not use bullet points.
Task 1: PESTEL Analysis for Wahaca’s Expansion in London
Introduction:
PESTEL analysis is a tool used to analyze external factors affecting a business. The factors are political, economic, sociocultural, technological, environmental, and legal. This analysis will help Wahaca to make informed decisions about its expansion in London.
Political Factors:
Political factors refer to the government’s policies and regulations that affect the business. The following are the political factors affecting Wahaca:
Taxation policies: Wahaca will be subject to various taxes such as income tax, corporation tax, and value-added tax.
Brexit: The exit of the UK from the European Union may affect Wahaca’s supply chain, labor, and regulations.
Immigration laws: Wahaca relies on skilled and unskilled labor, and changes in immigration laws may limit its ability to hire the required workforce.
Economic Factors:
Economic factors refer to the economic conditions that affect the business. The following are the economic factors affecting Wahaca:
Inflation: Inflation affects the prices of food and other essential supplies, increasing Wahaca’s costs.
Exchange rates: Wahaca imports some ingredients from other countries, and fluctuations in exchange rates may increase its costs.
Economic recession: Economic recession affects people’s disposable income, and they may reduce their spending on eating out.
Sociocultural Factors:
Sociocultural factors refer to the social and cultural factors that affect the business. The following are the sociocultural factors affecting Wahaca:
Health and diet: There is a growing trend of healthy eating, and Wahaca may need to introduce more healthy options.
Changing lifestyles: People are becoming busier, and there is a growing demand for takeout and delivery services.
Diversity: London is a diverse city, and Wahaca may need to cater to different cultures and tastes.
Technological Factors:
Technological factors refer to the technological advancements that affect the business. The following are the technological factors affecting Wahaca:
Automation: Wahaca may need to automate some processes such as ordering and payment systems.
Online presence: Wahaca may need to improve its online presence, including website and social media platforms.
Innovation: Wahaca may need to invest in new technologies to enhance the customer experience.
Environmental Factors:
Environmental factors refer to the environmental factors that affect the business. The following are the environmental factors affecting Wahaca:
Sustainable practices: Wahaca has a strong focus on sustainability, and it may need to continue this focus in its expansion plans.
Waste management: Wahaca may need to implement more efficient waste management systems.
Carbon footprint: Wahaca may need to reduce its carbon footprint by using renewable energy and reducing waste.
Legal Factors:
Legal factors refer to the laws and regulations that affect the business. The following are the legal factors affecting Wahaca:
Health and safety regulations: Wahaca needs to comply with health and safety regulations to ensure customer safety.
Employment laws: Wahaca needs to comply with employment laws to ensure fair treatment of its employees.
Food safety regulations: Wahaca needs to comply with food safety regulations to ensure the safety of its customers.
Conclusion:
In conclusion, the PESTEL analysis provides a comprehensive view of the external factors affecting Wahaca’s expansion plans in London. The analysis highlights the importance of sustainability, innovation, and compliance with regulations in Wahaca’s expansion plans.
Task 2: Importance of Each Stage of Strategy Implementation
Introduction:
Strategy implementation is the process of turning a strategic plan into action. The success of Wahaca’s proposed expansion of restaurants outlets across London depends on each stage of strategy implementation.
Importance of Each Stage:
Setting Objectives and Goals:
Setting objectives and goals is the first stage of strategy implementation. It is essential for Wahaca to set
