Profile and Operation of Local Business in Darwin: PFD Food Services Case Analysis Assessment 1 Answer
The purpose of the assessment is to identify a local business that operates in Darwin and focussing on its profile in order to understand the business operations. In this paper, a SWOT analysis will be conducted after considering the internal environment. The background details and the market competitors of the selected business shall be considered. Following that, the organisation structure along with the presence and outreach of the local business in Darwin shall be outlined. After analysing the existing state of the business, a few recommendations will be given so that the local business can outperform the competitors in the market. A conclusion will be drawn based on the findings of the research.
Profile of the selected local business in Darwin
PFD Food Services was founded in 1943 and initially, it was located around the chaotic fish market in Melbourne. Gradually, the business expanded and in order to meet the growing demands of the Australian customer base and it has now become one of the largest and privately-owned networks of foodservice (About us — PFD Foods, 2020). The business offers superior quality and diverse range of meat, fresh seafood, frozen products, dry goods, paper products, confectionary as well as cleaning services. The company serves a wide range of customer base and it includes cafes, hotels, restaurants, airlines, retirement villages, theme parks, resorts, field caterers, schools, fast food centres, childcare, sporting facilities and lastly correctional facilities. Hence, the market reach of the business is wide. The company offers the best services in one place and serves other businesses as well. The food products of PFD Food Services can be categorised into Dry Goods, Frozen and Chilled, Paper Products and Fresh to Go. In the case of Dry Goods, the latest products are offered and customers are ensured the best dining experience. Similarly, Frozen and Chilled products are offered based on customer requirements. Quality in chilled products has been prioritised. In terms of Paper Products, the company offers baking paper, disposable cutlery, cups, napkins, and foil and takeaway containers. The Fresh to Go products have gained popularity in the market because customers are offered on-the-go solutions and it is quite convenient for them.
Figure 1: Logo of PFD food services
(Source: About us — PFD Foods, 2020)
Moreover, the food service business managed to gain a reputation in the Australian community because it is an active supporter of charitable activities, sports activities as well as art initiatives. The company emphasises on the compliance-related safety. Therefore, it ensures the delivery of products in premium condition. Apart from delivering to restaurants and cafes, food services are also delivered across hospitals and aged care facilities. Nearly 800 refrigerated trucks are used for delivering food services (Promotions — PFD Foods, 2020). The business has more than 70 warehouses located across Australia and it has managed to maintain consistency in the delivery services since 1943. Customers might choose to order on the official website so that they can receive the services safely at home or they might choose the warehouse pickup option.
Figure 2: Two types of the product range of PFD
Information and background details about competitors in the market
The online food delivery market in Australia has generated revenue of US$ 2,082m as of 2020 (statista.com, 2020). Around 8.7m users are registered. The market is characterised by two types of delivery service solutions. These are Platform-to-Consumer and Restaurant-to-Consumer. The prepared meals or food is offered and it is built for direct consumption. The users can be categorised based on age, income and gender. The consumers in the 25-34 years age group are most likely to order food online. Similarly, females prefer these services to males because the females contributed around 51.4% of revenue and males contributed around 48.6% to the revenue. Lastly, consumers in the middle-income category are more likely to prefer these services in comparison to consumers in the low income and high-income categories.
Figure 3: Users of online food delivery services by age
(Source: statista.com, 2020)
The top competitors of PFD Food Services in the market are MenuLog, Eat Now Services, Delivery Hero, Dimmi, FantAsia, Just Eat, SurfStitch, Uber Eats, THE ICONIC and the GrubHub. Among these, the number one competitor of PFD Food services is Menulog.
Menulog - It is one of the biggest rivals and headquartered in Sydney (menulog.com.au, 2020). The company is now considered one of Australia's largest online food delivery services because it connects the customers with local restaurants located across the nation. It is a fierce competitor of PFD food services because it delivers to 87% of the Australian population and customers can choose food items from 20,600 restaurants. The customers are rarely dissatisfied with the services because they receive up-to-date information about the status of their orders.
Eat Now Services - Similarly, the second-best competitor of PFD food services is Eat Now Services. It is another food delivery platform and customers can order online in order to get home-delivered services. The company has a wide business presence and network across Australia (menulog.com.au, 2020). It was founded in 2010 and currently, it has been acquired or merged with Menulog. At present, it has connections with more than 15,000 restaurants across Australia and it offers delicious offers to a wide range of service users. The users can track the delivery process and it enhances the authenticity of the business. It has managed to become a market player because it delivers a wide range of cuisines including Chinese, Korean, Indian, Thai, Italian and Vietnamese. Services are offered across major Australian cities such as Melbourne, Sydney, Adelaide, Hobart, Perth, Canberra and Newcastle.
FantAsia- Another notable rival of PFD food services is FantAsia. One of the USP of the company is its menu. Asian food is served to the Australian population and focus has been given on seasonal and fresh food. The business has employed traditional Asian cooking methods and authentic flavours are used so that the Australian population can be satisfied (fant-asia.com.au, 2020). The first store was opened in 2010 and since then, it has gained popularity because it serves the best and fast authentic Asian delicacies. The business offers wholesome high-quality meals because traditional and healthy ingredients are used to serve the customers. Consequently, the business has employed competitive pricing method.
Figure 4: Top three competitors of PFD food services
(Source: owler.com, 2020)
Organisation structure and presence in Darwin
Organisation structure mainly refers to the system that outlines the direction of organisational activities so that goals can be achieved. The structure is mainly composed of roles, rules and responsibilities. The structure determines the flow of information and orders within the organisation and across the various levels (Ahmady et al., 206). An organisation structure can be categorised into four types such as divisional, flat, matrix and functional. However, the increasing of the digital marketplace trend has started to disrupt the traditional business models and focus has now shifted to team-based and decentralised structures. At PFD food services, the divisional structure has been employed. Every division of PFD food services consists of resources and functions that offer support to the product line. The CEO of PFD is Kerry Smith (forbes.com, 2020). The CFO and COO are also the board members of PFD. The other divisions are marketing, product, communication and business development. The divisions are self-sufficient and therefore every division can operate as a self-sufficient and separate entity. The supplies, resources and equipment are different. It allows an independent or autonomous form of operation. However, one of the disadvantages of divisional structure is that cost of operations could be high and rivalries among the divisions are likely to develop soon.
The business has gained wide popularity in the Darwin. The food service industry in Australia is likely to generate a profit of USD 80.7 billion and the predictions are for 2024 (Singh, 2020). In Darwin, the popularity of PFD food services has increased because the population prefers major cuisine such as the Thai, Vietnamese, Japanese, Mexican and Korean. The food service market in Darwin has grown steadily over the years. The rise of the digital marketplace has also allowed the rise of the food service market. PFD offers customised solutions to the customers and innovation in the food menu has been prioritised as well. It has been a major driver of the growth of this business. Moreover, the Darwin is located in Australia and the nation has emerged as the highest food service market. The company managed to get hold the rising food service opportunities prevailing in the market. It considered the changing dietary trends and food preferences of the customers and thereafter, designed the menus. It focussed on reflecting the culture of the locals. Now, focus has been given on the rising demand for healthy and nutritious food, the convenience of the delivery system and healthier takeaway options so that customers’ needs can be fulfilled (Soriano et al., 2019). The business already possesses store locations, distribution centres and warehouses across the nation. It has emerged as one of the major players in the food service market by generating revenue of approximately 1.6 billion.
A SWOT analysis is mainly undertaken so that the internal weaknesses and strengths of an organisation can be identified and the process helps in identifying the external threats and opportunities that might affect the business positively or negatively (Gürel and Tat, 2017). The SWOT analysis of PFD food services has been conducted so that the internal business environment of the local business can be understood.
Table 1: SWOT analysis of PFD food services
(Source: Created by the learner)
Recommendations to perform better than the competitors
The research findings on PFD food services revealed that the online food delivery business has already managed to gain a reputation in the market. However, the threats from competitors are prevailing and it might affect the future outcomes of the business. Few recommendations have been given after analysing market trends.
- The company should focus on improving its customer management system and the employee management system (hbr.org, 2020). The focus should be given on combining both the elements and creating an appropriate design that can help reduce the gap between the company and the customers.
- An effective strategy also involves improvement in service excellence and getting over inferior performance issues. A service business can thrive in the market when the offered packages are worthy of thriving in the competitive market.
- Successful manager of a food service business should always focus on involving the staffs so that the staff turnover rate can be reduced. It can be done by enhancing communication and offering positive reinforcement such as training and performance-based rewards (Choi and Joung, 2017). It would allow the staff to perform better.
- The service managers at PFD should also focus on delivering the food service facilities during rush hours and maintaining the product quality at the same time.
- Research and industry analysis should be one of the top priorities of PFD because the threat from competitors is rising and the company might be replaced at any time if managers do not emphasise data gathering.
- The company should never leave the opportunity to promote its business because customers are attracted to various options. It should take every opportunity to promote its family deals, side meal deals, drinks and meals-drinks packages.
- The company operates in the service delivery industry and here the first impression is the last impression. Emphasis should be given on the right food packaging and high quality of food and the presentation efforts should be high at the same time (Robertson, 2016).
The assessment is based on the Darwin-based food delivery business, PFD food services. It is a local business that has managed to gain popularity across Australia. In the beginning, a brief account of the food service business has been outlined and its profile has been understood. Following that, research has been conducted on the competitors of PFD food services. It has been found that the top three competitors of the business are Eat Now, FantAsia and Menulog. The food service industry in Australia is highly competitive and the offerings of PFD food service is not completely unique. Nevertheless, the industry is likely to grow and the current situation created due to the pandemic has created opportunities for online delivery services. Customers are avoiding public places and preferring online food services. A SWOT analysis of the business suggests the internal strengths, weaknesses, threats and opportunities. Lastly, a few recommendations have been given so that the company can outperform its competitors.