Background of star kabab

Dhaka being under the Mughal rule for years has a rich heritage in terms of culinary history.
Whether it is the basics like rice or bread, or the main dishes like chicken or beef, Dhaka foods
bear a significant influence of Mughal taste. So the city has a good number of kabab joints
scattered throughout the entire capital. Downtown Dhaka is famous for its kabab’s. Star Kabab is
almost a household name in this part of the city. It offers a wide range of tandooris and grills,
along with naans and parathas. Apart from the kabab’s, Star is also famed for its Chicken Jhalfry,
Brain Masala, Liver Curry and of course Kaachi Biryani.

Star Hotel & Kabab Restaurant is one of the best places where people from all over the country
come to console their stomach. It is one of very old restaurant located in the city of Dhaka. Its
main branch is located at Thatari Bazar, Nawabpur. Other branches are located at Dhanmondi-2
and Dhanmondi-16. Star Hotel is popularly known as Star Kabab because of its delicious
kabab’s. It is best known as the kabab [Link] not mistaken, the star hotel had started its journey
on 1967 to serve better and hygienic food and serves an economic benefit to the country’s
economy. The founder Haji Mohammad Momtaz Uddin Ahmed was born on 23 rd September
1941 who came up with such a great idea of popularizing kabab with a new taste. His hard work
came to a success as people rushes into the hotel to eat his different types of special kabab.

Kabab’s are an all-time favorite in this part of the world. Although it is a bit on the spicy side in
terms of taste, but being quite succulent and soft, it has earned a global popularity too, in the last
few decades. Be it grilled, fried or salted, kabab’s have an amazing taste, which is liked by one
and [Link] of the popular names of kabab are- Beef Sheek kabab, Mutton Botty kabab, Grill
Chicken kabab, Tikka kabab, Chicken Tikka kabab, Chicken Rashmi kabab, Khiri kabab &
Ghurda kabab.

SWOT analysis of Star Kabab

Strengths
1. They have strong market position.

2. They have good reputation for their tasty food items at cheaper prices.

3. They have huge number of customers.

4. They have well qualified and specialized chefs in this restaurant.

Weaknesses
1. Loud and packed environment.

2. Poor hygiene and quality management.

3. They lack new products and services.

4. The company has no official website.

Opportunities
1. Their foods attract almost every demographic group of customers and they do exist in Mirpur
area.

2. The customers have brand loyalty for Star Kabab.

3. The customers have preference for the familiar taste of Star Kabab.

4. The company can expand to new locations and expand product variety.

Threats
1. They have huge local competition.

2. The customers want variety in the food menu.

3. The customers are becoming more health and hygiene conscious.

4. The restaurant needs to face local political issues and other administrative barriers for opening
a branch at Mirpur.

PESTEL analysis of star kabab

Political Factors Affecting Star Kabab’s Business

Star Kabab considers the impacts of the political environment on its business. This aspect of the
PESTEL/PESTLE analysis refers to the effects of governmental action on environment of
businesses. In Star Kabab case, the most significant political external factors are as follows:

1. Pending tax reform (opportunity)

2. Evolving public health policies (threat and opportunity)

Star Kabab has the opportunity to expand its business based on improved international trade,
which can enhance global supply chains Star Kabab also has the opportunity to reform its
practices and strategies to lessen the impact of taxation on the business without violating the law.
However, public health policy increasingly tends to discourage people from consuming fast
foods from firms like Star Kabab. Nonetheless, the company has the opportunity to address this
external factor by improving the healthfulness of its products. In this aspect of the
PESTEL/PESTLE analysis of Star Kabab, the political external factors present opportunities that
outweigh threats.

Economic Factors Important to Star Kabab’s Business

Economic changes around the world influence Star Kabab’s business environment, considering
its global nature. This aspect of the PESTEL/PESTLE analysis pertains to the effects of
economic conditions and trends on the remote or macro-environment of firms. In Star Kabab’s
case, the following are the most notable economic external factor is Increasing growth of the
Bangladesh economy (opportunity).

Star Kabab has the opportunity to grow, even highly in the Bangladeshi economy, which is the
firm’s biggest market in this aspect of the PESTEL/PESTLE analysis of Star Kabab, is the
economic external factors mainly threaten the business.

Social Factors Influencing Star Kabab’s Business Environment

Star Kabab must respond to social culture changes in its business. This aspect of the
PESTEL/PESTLE analysis refers to the social conditions that support or limit businesses. In Star
Kabab case, the most significant social external factors are as follows:
1. Increasing cultural diversity (opportunity)

2. Healthy lifestyle trend (threat & opportunity)

Star Kabab has the opportunity to improve its products mix to satisfy a more diverse target
market. However, the healthy lifestyle trend is a threat because many of Star Kabab’s products
are often criticized for their negative health effects. Nonetheless, the company has the
opportunity to improve the healthfulness of its products. In this aspect of the PESTEL/PESTLE
analysis of Star Kabab, the social external factors create mostly opportunities for business
development.

Technological Factors in Star Kabab’s Business

Star Kabab’s success partly depends on technological applications. This aspect of the
PESTEL/PESTLE analysis pertains to the impact of technologies and related trends on the
environment of business. Star Kabab must address the following technological external factors:

1. Increasing business automation (opportunity)

2. Increasing sales through mobile devices (opportunity)

Star Kabab’s has the opportunity to increase its research and development investments to
improve business effectiveness and efficiency. Also, Star Kabab can apply more automation to
maximize productivity, based on the external factor of increasing business automation. In the
technological aspect of the PESTEL/PESTLE analysis, Star Kabab’s has major opportunities for
growth.

Environmental Factors

Ecological external factors affect Star Kabab’s consumers and, thus, the company’s performance.
This aspect of the PESTEL/PESTLE analysis refers to the environmental issues in firms’
environment. In Star Kabab, the following are the most significant ecological external factors:

1. Rising interest for corporate environmental programs (opportunity)

2. Increasing emphasis on sustainable business strategies (opportunity)

Star Kabab can expand its corporate social responsibility strategies to reach even high
performance in addressing environmental concerns. However, climate change remains a threat
because of its negative effects on farms and, thus, Star Kabab’s supply chain. In this aspect of the
PESTEL/PESTLE analysis, the ecological external factors highlight corporate social
responsibility opportunities.
Legal Factors

Star Kabab must follow legal requirements imposed on its remote or macro-environment. This
aspect of the PESTEL/PESTLE analysis pertains to the impact of laws or regulations on firms.
The most significant legal external factors for Star Kabab are as follows:

1. New legal minimum wage levels in the Bangladesh (threat)

2. Local health regulations in workplaces and schools (threat)

Star Kabab faces the threat of higher minimum wages, which lead to higher costs and prices.
Also, local health regulations impacting food service in workplaces and schools could reduce the
company’s revenues from these areas. Star Kabab faces mainly threats based on legal external
factors in this aspect of the PESTEL/PESTLE analysis.

Porter’s Five Forces analysis of Star Kabab

Threat of new entrants  

Now-a-days Star Kabab has many competitors in Dhaka city because there are many big and
small hotel as well as restaurant is available in this busy city who are providing the same types of
[Link] Dhaka city the food and restaurant business is growing day by day and many new
business man are invest in this business. Specifically, the threat of new entrants depends on the
following set of factors:

1. Product differentiation
2. Capital requirements.
3. Customer switching costs
4. Access to distribution channels
5. Legal and regulatory barriers
6. Expected retaliation from existing businesses
7. Time of entry

Bargaining power of buyers

Buyer bargaining power is associated with the extent of impact customers can have on the
industry. There are many hotel and restaurant are available in Dhaka city and that is why the
buying power of the buyers is very strong right this moment. The stronger the buyer is, the
greater his ability to reduce prices and/or increase the quality of products and services. The
following set of factors determines bargaining power of buyers:

1. Size and concentration of buyers compared to suppliers

2. Buyers’ price sensitivity
3. Product differentiation
4. Switching costs
5. Information about products and services
6. Buyer’s ability to go for substitute products and services

Bargaining power of suppliers

Star Kabab works with a number of large suppliers such as Coca-Cola Company, Pran Company,
pepsi Company, Akij food & beverage and [Link] they collect vegetables, chickens, beef
,wheat from varies suppliers. This relies upon numerous independent suppliers, including service
providers for the supply of food and other related items. A set of important factors such as an
abundance of potential suppliers, low level of uniqueness of products provided by suppliers and
the importance of volume of order for each supplier reduce the bargaining power of Star
Kabab’[Link] bargaining power forms the nature of supplier-manufacturer relationships.
Suppliers with strong bargaining power are able to sell raw materials for higher prices with direct
implications on the levels of profit to be generated by manufacturers. Supplier bargaining power
depends on the following:

1. Number of suppliers
2. Size of suppliers
3. Differentiation of products provided by suppliers
 4. Uniqueness of products and services provided by suppliers
5. Switching costs
6. Forward integration
7. Importance of volume to supplier
8. Cost of supplies relative to selling price of products
9. Ability of the firm to substitute suppliers

Threat of substitute products and services

It has already mentioned that there are many hotels and restaurants are providing same or
substitute types of food item on Dhaka city which is a great threat for Star Kabab. Firms have
less bargaining power if substitutes exit to their products and services. Substitutes can be direct
or indirect and the threat of substitute products and services depends on the following set of
factors:

1. Existence of close substitutes

2. Existence of indirect substitutes
3. Switching costs
4. Perceived level of product differentiation
5. Buyers’ propensity to substitute
6. Performance and quality of substitute products and services

Rivalry among existing firms

Star Kabab faces competition from quick-service eating establishments, casual dining full-
service restaurants, street stalls or kiosks, cafés,100% home delivery/takeaway providers,
specialist coffee shops, self-service cafeterias. Star Kabab also maintains a leadership position in
terms of the brand value among its major competitors. The level of intensity of competition in
the industry determines the level of its profitability. The more competitive is the industry, the
more difficult for firms to maintain and increase their market share. The following set of factors
determines the extent of rivalry among existing firms:

1. Rate of growth of the industry

2. Number of competitors and the balance between them
3. Diversity of competitors
4. Differentiation of rival products and services
5. Differences in quality among competing firms
6. Switching costs
7. Excess capacity and exit barriers
8. Brand equity
9. Level of advertising expenditure
10. Degree of transparency