A critical discussion of Porters view that the economic structure of Essay

A critical discussion of Porters view that the economic structure of the restaurant industry determines the pattern of competition in that industry - Essay Example The global restaurant industry is highly saturated and in a mature stage of development along the industry life cycle, a factor that is driven by the economics of the industry. The economic structure is influenced by the tangibles along the value chain for food services organisations, including the volume of suppliers along the supply chain and the pricing structure of procurement, which impacts all restaurant organisations. The industry is also impacted by the demographics of the consuming public in terms of income as well as the availability of financial capital or ability to raise capital in the regions where the food services organisations operate. Hence, there are a variety of factors that will determine the methods and strategies by which competitors attempt to compete to attain some form of competitive advantage that are all linked with the economics of the industry. The restaurant industry In China, as one example, there is a high concentration of Western fast food companies that have saturated the industry. Growth in consumer demand for Western food brands has given food service companies ample opportunities for expansion out of the North American and European markets. However, it not only consumer demand that has provided these opportunities, it is the investment by a more liberal Chinese government that has stabilised the regional economy that provides advantages for market entry and expansion. The government has injected considerable financial capital into urban development, there is more interest by venture capitalists for this same pursuit, and government policies have provided much more incentives for foreign direct investment in the country (Areddy 2009). Inflation has been largely stabilised by government intervention and policy development, thereby offering consumers much more disposable income that is crucial for sustaining profitability. In 2012, the government invested 57.92 billion USD to motivate more effective corporate borrowing and to control interest rates (Safe Trading 2013). From a social perspective, as Chinese culture begins adopting more ideologies and principles associated with a capitalistic economy, lifestyle preferences are changing that are favourable for new entrants in the fast food industry. In contemporary China, 50 percent of consumers prefer eating in restaurants over that of household consumption (Ganster 2006), which provides a potential market of approximately one half billion consumers. In 2008, consumers in Shanghai spent approximately seven percent of their total disposable income on restaurant dining which represented a whopping 20 percent increase in spending from that of 2007 (Rentz and Xu 2010). Therefore, the economic structure of the industry, coupled with higher guarantees of consumer expenditures on food services, establishes an industry environment that can satisfy profit expectations for a variety of major competitors and new market entrants into the country. The entire fast food industry in China, from a market value perspective, increased 16 percent between 2010 and 2011 and is estimated to be worth 74.8 billion USD in revenues to all competitors (Ho 2011). Therefore, major fast food companies, such as KFC, McDonald’s, Pizza Hut and Taco Bell, have found considerable profit success by entering the Chinese fast food market. Prior to recent years, however, in order for the aforementioned companies (and their large variety of other competitors) to achieve market success, they were forced to import food products from the West which significantly raised operating

Case study 2 Essay Example | Topics and Well Written Essays - 500 words - 2

Case study 2 - Essay Example This paper will describe the approach to care that is necessary to be given to Mr. P and the treatment plan. The paper will also describe the methods for providing both the patient and family members with education. In order to give the proper care needed for any sickness, the care provider should first seek the doctors’ guidance. Since Mr. P is suffering from heart failure, it would be necessary that a follow up is made to ensure that he uses the prescribed drug as required without missing a single prescription. The care will also involve ensuring that Mr. P visits the hospital at the right time. It is also essential that care should involve provision of moral support. In this case, he should be provided with all assistance needed, especially with activities that he cannot do due to his condition (Maron, 2008). The treatment plan of cardiomyopathy and heart failure is to cope with the disease symptoms and signs. It also involves ensuring that the condition is not left to worsen and risks and complications are minimized. The recommended treatments for Mr. P regarding his health status include the use of angiotensin-converting enzyme (ACE) inhibitors. This enzyme assists in boosting heart pumping aptitude. The enzymes include lisinopril, enalapril, captopril, and ramipril. In case he is not able to take ACE, he should be given angiostensin recerpter blockers such as valsartan and losartan. This should be taken in accordance with doctor’s prescriptions. Cardiomyopathy can also be treated using Digoxin (lanoxin) drug. This drug helps in increasing the strength of the patient’s heart muscle contraction. The drug is also said to slow down rate of heartbeat. It minimizes symptoms of heart failure thereby improving the patient’s ability to live with the disease (Maron, 2008). Since Mr. P has some traces of blood fluid in his lungs, it would be necessary that he be given Diuretics water pills that make the patient urinate