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Beefeater Restaurants

Key Learning points

  • Business performance over time (sales and earnings) depends on the organisations resources.
  • Resources are won and lost over time (customers = sum of all customers won, minus all lost).
  • Resources bring with them a characteristic contribution to the rest of the system (increasing restaurant numbers brings a diminishing incremental market opportunity).
  • Growth depends on existing resources, including intangible factors (customers are won if service, menu, and environment are acceptable vs. the price charged).
AND
  • Business growth depends on winning investor support (i.e. headquarters allocation of capital expenditure). Maximising value in a mature market is difficult because market exploitation inevitably imposes limits on further opportunities to grow.
  • Shareholder value reflects earnings growth, not merely earnings levels (and hence is hard to sustain).

Additional materials

Take a tour: 3 mins, no sound )

Take a tour: 12 mins, with sound

Related materials

White Label Restaurants tour,
an 'unbranded' version of Beefeater.
(22 minutes)

Glion logo
"As programme leader for the Bachelor degree programme at Glion Institute of Higher Education in Switzerland I am happy to recommend the use of the Beefeater Microworld software supplied by Strategy Dynamics."
Paul Chappell, Glion Institute of Higher Education
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