Tangible Resources - Café De Coral Group

Tangible Resources

Financial Resource

Café de Coral Group (HKG. 0341) is the largest publicly listed Chinese Fast Food restaurant group in Hong Kong. Its shares are listed on the Main Board of the Stock Exchange of Hong Kong Limited.

(http://www.google.com.hk/finance?q=0341)

It could get a good result in recovery of financial crisis, with turnover and profit attributable to shareholder reaching a high record. In 2010, it got HKD 4.88 billion and HKD 513 million respectively.

(Annual Report 2009/2010, Café De Coral Holdings Limited)

The Financial resource achieved as Temporary Competitive advantage.

In annual report, it shows the Café de Coral group earned a large profit in last year. That means they have a strong financial strength and stable financial position. It evidences that the groups have a good value for its financial resources to exploit a good financial states, and create opportunities with a good financial supporting.

Also, Café de Coral is an only one and the largest publicly listed Chinese Fast Food restaurant group in Hong Kong, the financial benefit in the form of raising capital is the most distinct advantage. So, their financial capacity is larger than their competitors, and they enjoy a greater of borrowing power. Besides, it is an advantage to increase public awareness and generate publicity of the group.

Physical Resource

Café de Coral has a large of fast food chain with over 140 restaurants in Hong Kong. It establishes many branches in busy commercial districts, popular shopping malls and large residential complexes, for instance, Central, Admiralty, Tsim Sha Tsui, Mong Kok and Sha Tin. Those are the favorable locations in Hong Kong.

(http://www.cafedecoralfastfood.com/shops.php?lang=en&district=37)

In addition, Café de Coral equipped with user friendly operative design to maximize its operation efficiency, such as:

 Attach hooks to table edges to facilitate customers with handbags.

 Direct data transmission between cashiers and kitchens for better and more efficient operation. Customers no longer need to submit order tickets to service counters.

 Provide a self-counter for customer to take a packet of sauce.

(http://www.cafedecoralfastfood.com/companyinfo3.php?lang=en)

The Physical resource only achieved Competitive parity.

Organizational Resource

Café de Coral has developed its own "F.A.C.T.S" strategies, as identify as "Strategic Business Unit level strategic plan". The strategies include:

Focus on executing the "Five-Year Corporate Plan" with good progress during 2010.

Anticipate the worst; they took business consolidation measures for Eastern China and North America.

Change the mindset of rental reduction and enhance their operational efficiencies in terms of staff productivity.

Turn crisis into opportunities, by create new restaurant brands to cope with the trade down dining behavior at times of the economic downturn.

Shape up the business infrastructure by constructing the two additional new central food processing plants.

(Annual Report 2009/2010, Café De Coral Holdings Limited)

Café de Coral develops other sub-branding and specialty restaurants such as Oliver's Super Sandwiches, Spaghetti House, Spaghetti 360o & ME.N.U, Super Super Congee and Noodles, and Espressamente illy, as well as the well-established institutional catering business under the trade name of Hong Kong.

(http://www.cafedecoral.com/web/ci/coporate1.htm)

The "F.A.C.T.S" strategies of Café de Coral are neutralized the external threat such as economic crisis. Those strategies could minimize the risk and shape up the business infrastructure.

Also, the local operating environment remained highly