(Tiểu luận) principles of management reportanalyze the business level strategy of noirrestaurant noir dining in the dark

Dining In The Dark Ho Chi Minh City, Vietnam, and evaluate the key factors influencing the performance of the establishment.ABSTRACTBusiness-level strategy is an essential part of any bu

FOREIGN TRADE UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

-*** -PRINCIPLES OF MANAGEMENT REPORT ANALYZE THE BUSINESS-LEVEL STRATEGY OF ‘NOIR RESTAURANT’ - NOIR DINING IN THE DARK

Hanoi, September 2023

LIST OF MEMBERS

3 Nguyễn Việt Bảo Huy (Leader) 2212530020

TABLE OF CONTENTS

INTRODUCTION 4

ABSTRACT 4

CHAPTER 1: AN INTRODUCTION TO NOIR: DINING IN THE DARK 6

1.1 General information about Noir Dining In The Dark 6

1.2 History of establishment and development of dark restaurants and Noir Dining In The Dark 6

1.3 Core values 7

1.4 Scale and Operation 7

CHAPTER 2: AN ANALYSIS OF BUSINESS-LEVEL STRATEGY IN NOIR DINING IN THE DARK 9

2.1 Theoretical basis on business-level strategy: 9

2.1.1 Theoretical definitions 9

2.1.2 Types of business-level strategy 9

2.1.3 Importance of business-level strategy and its impact on a business 11

2.2 Analysis of business-level strategy in Noir Dining in The Dark 11

CHAPTER 3: AN EVALUATION OF THE BUSINESS-LEVEL STRATEGY IN NOIR DINING THE DARK 14

3.1 Some factors resulting in the success of the business-level strategy applied in Noir Dining In The Dark 14

3.1.1 Differentiation 14

3.1.2 Social responsibility and Inclusivity 14

3.1.3 Marketing and promotion 15

3.2 Risks of the business-level strategy to Noir’s performance 16

3.2.1 Misunderstanding the core value of the restaurant 16

3.2.2 Rate of customers coming back is not high 16

3.2.3 Difficult for firm to scale-up 17

3.3 The failures the business-level strategy of Noir Dining in the Dark 17

CONCLUSION 19

REFERENCES 20

3

Intense modern-day business competitiveness has placed organizations in a position where they must plan strategically to gain an advantage over their rivals Business-level strategy refers to a company's deliberate and purposeful actions to achieve competitive advantage within their specific market segments It involves making critical choices about how to allocate resources, differentiate offerings, and create unique value for customers By effectively implementing a well-defined business-levelstrategy, companies can carve out a distinct position in the market, attract customers, and drive sustainable growth Therefore, it is believed that business-level strategy is anindispensable part of a business’ success To gain more insight into business-level strategy, this report will research and analyze the business-level strategy of the Noir Restaurant – Noir Dining In The Dark (Ho Chi Minh City, Vietnam), and evaluate the key factors influencing the performance of the establishment

management

The scope of the report is limited to the business of Noir Dining In The Dark from

2014 to 2022 The majority of data upon the business of this restaurant are secondary sources, including journal articles, social media reviews and posts, and some primary

data such as the autobiography website Based on the information found via various online sources, we believe that the business implemented business-level strategy and concentrated on focused differentiation strategy for the most part of its business

This report will benefit the study of the principle of management in university and provide valuable insight into how a business can compete in a market and bring value

to customers The report about Noir Dining In The Dark’s business strategy helps identify benefits as well as drawbacks for businesses that are attempting to follow the focused differentiation strategy This allows students to prepare for possible future eventualities Furthermore, this report is helpful for any business looking towards winning in their particular market segments and creating value to customers To clarify, this report will analyze the business-level strategy, and determine how the business applied it in their business and its impacts on the business’ performance

5

CHAPTER 1: AN INTRODUCTION TO NOIR: DINING IN THE DARK 1.1 General information about Noir Dining In The Dark

Noir restaurant, or the full name is Noir Dining in the dark is the most uniquerestaurant in Vietnam Noir Dining in The Dark is also one of the 10 best fine diningrestaurants in Ho Chi Minh city (According to tripadvisor.com) Noir dining in thedark is the concept that originated in Europe in which you dine in complete darkness,guided and served by visually impaired staff The idea is to challenge your perception

of food and enhance your other senses, while also raising awareness and empathy forthe blind community They have brought another career for the blind and visuallyimpaired Through our innovative training techniques, they improve these talentedindividuals’ self-confidence and career trajectory

1.2 History of establishment and development of dark restaurants and Noir Dining In The Dark

First experience of a dark restaurant took place in Paris, set up by MichelReilhac and called ‘Le gout du noir’ in 1997

During summer 1999, a temporary restaurant opened in the Montorgueil district

in Paris

In 1999, the first permanent restaurant, Blindekuh (Blind man’s buff inGermany) also opened by a blind clergyman, Jorge Spielmann in Zurich,Switzerland

In 2003, Edouard de Broglie, a French entrepreneur in cooperation with theblind foundation Paul Guinot established the first international chain ofrestaurants in the dark, called ‘Dans le Noir’

In the next few years, the opening of three restaurants was followed by otherdark restaurants in cities in Europe, North American and Asia The mostsignificant is the Opaque, another chain operation in the US after Dans le Noir

In 2014, the two founders of Noir: Dining In The Dark Vu Anh Tu and GermDoornbos quitted their jobs to set up project ‘Journey of Senses’ (JOS), whichwas owned by An Viet Nam LLC At the same time, they opened Noir Dining

In The Dark at located at 180D Hai Ba Trung St., District 3, Ho Chi Minh city

Management 100% (5)

36

Group project-TBFinancial

In 2017, JOS opened Blanc, a restaurant with deaf servers.

In 2019, JOS opened the flower store ‘La Hoa’ and Noir Spa with deaf servers

In 2020, JOS opened Noir Café In The Dark

Since 2014, JOS have welcomed over 74,000 visitors at 5 business locations,with around 60 visitors per day

1.3 Core values

Noir is a restaurant served by visually impaired employees, aiming to awaken thesenses of the customers, diners in a stronger way through the experience of eating inthe dark

Vision accounts for 83% of the 5 human senses, so people often rely too much on whatthey see, without thoroughly perceiving things through the remaining wonderfulsenses While eating, the current human condition is that the mouth is still chewingand swallowing food; but eyes are glued to the phone screen, wondering if the food isgood or not

But once the vision is covered, the other senses will arise, clear The sense of smellbecomes more refined Taste becomes sharper Hearing becomes more acute Touchbecomes more sensitive and sensation becomes deeper Only then can we truly awakenwithin ourselves to what this world has to offer us: the deliciousness of food and thewonder of our senses that are still serving us every day

The Dining in the Dark model has been present in many countries, offering anexperience that helps the senses connect and become the fullest But Noir is a specialmodel when it integrates the social impact factor because most of the service staff hereare blind and deaf

Statistically, in Vietnam, the unemployment rate of the blind and visually impaired is

up to 94%, in Saigon, this number is 4,000 people They face many difficulties infinding work

Lth banking cần nhớFinancial

Management 100% (1)

7

1.4 Scale and Operation

Noir Dining in the Dark is the member of Journey of the Senses - a social impact business operating 5 sustainable business models with unique, friendly and

professional product/service experiences provided by staff who are deaf and visually impaired:

Journey of the Senses system, including: Noir Dining in the Dark; Noir Spa and Noir Coffee in the Dark — served by visually impaired staff; Blanc — restaurant served by deaf staff; La Hoa (Flowers Speak) — a deaf flower shop

8

CHAPTER 2: AN ANALYSIS OF BUSINESS-LEVEL STRATEGY IN NOIR DINING IN THE DARK

2.1 Theoretical basis on business-level strategy:

2.1.1 Theoretical definitions

Business-level strategy refers to the combined set of moves and actions taken with anaim of offering value to the customers and developing a competitive advantage, byusing the firm’s core competencies, in the individual product or service market Itdetermines the market position of an enterprise, in relation to its rivals

Business-Level Strategies are mainly concerned with the firms having multiplebusinesses and each business is considered as Strategic Business Unit (SBU) Itdetermines how the firm is going to compete in the market within each line ofBusiness, i.e SBU Further, it focuses on how the firm will compete successfully ineach line of business and how to effectively manage the interest and operations of aspecific unit

So, these strategies are the course of action selected by a firm for each line of business

or SBU individually and intend to attain competitive advantage, in separate lines ofbusiness, which the firm is having in its portfolio currently

2.1.2 Types of business-level strategy:

The first high-level decision to make is how a firm want to attract customers:With a lower price of its product

With its product being different from the competition

Developing business strategy further, company should choose a competitive scope:Broaden market – offering products to a diverse market

Narrow market – offering products to a niche market

Combining these two approaches can further refine the business strategy into a focusedcost leadership strategy and a focused differentiation strategy

Here is a more detailed look at several different types of business-level strategies:

Cost Leadership Strategy

This business strategy relies on offering products at a low cost thus becoming the leastexpensive producer or provider of goods and services in a particular industry Toachieve this, companies need to cut costs across the entire value chain, so they canoffer their products or services at higher prices than rivals By being cost leaders,businesses can draw in customers who are looking for affordable products, expandtheir market share, and possibly increase their profits

Differentiation Strategy

Differentiation strategy focuses on offering products or services perceived as superior

or distinct from competitors Companies pursuing differentiation aim to provideunique value, features, quality, innovation, customer service, or brand image that setthem apart in the eyes of customers

Focused Cost Leadership Strategy

Companies using this business strategy gain an advantage in cost within a particularand specific market segment They concentrate on serving a specific group ofcustomers with affordable products This allows them to optimize their operations,processes, and products to create cost-efficient solutions that meet the specific needs oftheir customers

Focused Differentiation Strategy

A focused differentiation strategy concentrates on delivering unique and specializedproducts or services to a specific market segment Companies try to differentiatethemselves in the targeted niche through superior quality, innovation, customization,customer experience, or unique features

Integrated Strategy

10

Also known as a hybrid strategy or integrated cost leadership/differentiation strategy, itcombines elements of both cost leadership and differentiation strategies Companiesthrough unique and differentiated offerings while maintaining cost efficiency andoperational effectiveness.

2.1.3 Importance of business-level strategy and its impact on a business

The significance of business strategies lies in their ability to provide a clear road mapfor organizations to achieve competitive advantage in their specific markets Here iswhy a properly defined strategy is important and what benefits it brings to companies

Differentiation and Unique Value Proposition

A crucial aspect of business-level strategy is differentiation It enables companies todistinguish themselves from competitors by offering unique value to customers.Companies can tailor their products, services, and experiences to stand out in themarketplace by understanding customer needs and preferences

Effective Resource Allocation

Business-level strategies play a vital role in guiding resource distribution decisions.They ensure that resources are effectively managed, optimizing their utilization andmaximizing returns Whether it is investing in research and development, marketingcampaigns, or operational improvements, a focused business-level strategy helpsallocate resources to initiatives that align with the company’s competitive positioning

Building Sustainability

Business-level strategies contribute to long-term sustainability by creating barriers toentry for potential competitors By building a strong market position, reputation, andcustomer loyalty, companies can withstand competitive pressures and maintainprofitability overtime This sustainability is achieved through a combination ofdifferentiation, customer-centric strategies, and continuous innovation

2.2 Analysis of business-level strategy in Noir Dining in The Dark

The business-level strategy of Noir Dining in the Dark can be analyzed using Porter's generic strategies framework Based on the information provided, Noir primarily

employs a focused differentiation strategy, targeting a specific niche market with a

unique dining experience Here's a closer analysis:

1 Focus: Noir Restaurant focuses on a specific segment of customers seeking an unconventional dining experience By catering to this niche market, the restaurant aims to create a strong competitive advantage and build customer loyalty The focus allows Noir to meet the specific needs and preferences of its target customers more effectively than broader competitors

2 Differentiation: The key element of Noir's strategy is differentiation By offering

dining in complete darkness, the restaurant sets itself apart from traditional dining establishments This unique concept creates a memorable and immersive experience for customers, enhancing their perception of value The absence of visual cues amplifies the importance of other sensory elements, such as taste and aroma, making the dining experience truly distinct

3 Customer Experience: Noir prioritizes customer experience by providing a sensory

journey that engages multiple senses The concept of dining in the dark creates an atmosphere of mystery and surprise, stimulating curiosity and anticipation among customers The restaurant's trained staff guides customers through the experience, enhancing engagement and ensuring a seamless dining experience

4 Branding and Positioning: Noir's brand is built around the concept of dining in thedark and the sensory exploration it offers The restaurant positions itself as a unique and exclusive destination, appealing to customers seeking novel experiences and willing to pay a premium for them The branding focuses on the emotional and experiential aspects of dining, emphasizing the heightened sensory experience and the social engagement it encourages

12