Entrepreneurship Case Study

Salman Yousaf
Misbah Abbas

Talha Khalil Sherani

Shaheer Ahmad

MS 381

Table of Contents
Current Business Analysis:..............................................................................................................4
1.

Situation Analysis:................................................................................................................4
A.

External Environment:..................................................................................................4

B.

Corporate Review:.........................................................................................................5

C.

Product Category Review:.............................................................................................7

D.

Competitive Analysis:...................................................................................................8

E.

Consumer Analysis:.......................................................................................................8

2. SWOT Analysis:......................................................................................................................9
Strengths:.................................................................................................................................9
Weaknesses:.............................................................................................................................9
Opportunities:........................................................................................................................10
Threats:..................................................................................................................................10
3. Strategic Planning:.................................................................................................................10
a. Marketing Objectives:.....................................................................................................10
b.

Marketing Strategies:..................................................................................................10

c. Targeting and segmenting:..............................................................................................11

d.

Competitive Advantages:.............................................................................................11

e. Positioning and Branding:...............................................................................................11

4. Marketing Mix:......................................................................................................................11
Product:..................................................................................................................................11
Price:......................................................................................................................................11
Place:......................................................................................................................................12
Promotion:.............................................................................................................................12
5. Controlling and Evaluation:...................................................................................................12
a. Forecasting:........................................................................................................................12
b. Budgeting:..........................................................................................................................12
c. Evaluation:.........................................................................................................................12
Future of Savour Foods.................................................................................................................13
Suggestions for Further Improvement of Business:......................................................................13
Story Line of Savour Foods...........................................................................................................14
Before Starting a Business:........................................................................................................14
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First 5 Years of Business: [Video 1 8:019:48].......................................................................14

Current Business Situation:.......................................................................................................14
Future Business Strategy:..........................................................................................................15
Savour Foods................................................................................................................................16
Case Study.....................................................................................................................................16
Savour Foods Case Study:............................................................................................................17
Overview:..................................................................................................................................17
Research Methodology:.............................................................................................................18
PROFILE OF THE BUSINESS:...............................................................................................18
Conclusion:................................................................................................................................18
The Case Study:.........................................................................................................................19
Literature Review..........................................................................................................................23
Conclusion:................................................................................................................................26
References......................................................................................................................................27

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Savour Foods
Current Business
Analysis

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Current Business Analysis:

Savour Foods is one of the famous eating places of Rawalpindi and Islamabad. Most of the
population of twin cities is aware of Savour Foods. It is located in populated area of
Rawalpindi and Islamabad. Savour Foods is providing Pakistani as well as fast food. The
Pakistani food includes Pulao kabab and Chicken roast while fast food includes Burgers and
fries. Ice cream is also sold at Savour Foods branches.
Mohammad Naeem Chaudhary is a Business Icon of the business community of Islamabad and
Rawalpindi. He is also involved in social activities. He started selling Pulao at cart at Gordon
College Road Rawalpindi in 1982. This was the time when Rawalpindi was developing as
Business Hub and demand of ready to eat quality food was emerging in population. Mohammad
Naeem Chaudhary realized the need of the emerging customers at large. He started planning to
develop the Dining place which may fulfill the increasing demand of the customers. For this, he
started to pool sources to establish a proper dining place for his customers. The market research
was made by him based on his personal experience and result was positive with respect to future
growth of his business.

1.
1.
1.
1.
1.
1.
1.
1.
1.
1.
1.
1.
Situation Analysis:
A. External Environment:
i.

Regulatory:
A regulatory agency (also regulatory authority, regulatory body or
regulator) is a public authority or government agency responsible for
exercising autonomous authority over some area of human activity in a
regulatory or supervisory capacity. Like CDA, RDA, Labor unions can
affect the Savour foods strategies and policies. Savour foods work
according to those Regulatory bodies laws.
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ii.

Political:
Savour Food is Pakistani as well as fast food eating places. Its polices are
affected if there is unstable political environment. Savour Food has full
support of governments to manufacture healthier and quality foods for
target market and they have made significant changes in products
according to the customers needs.

iii.

Economic:
The Economic market share for Savour Foods in fast food chain is 22%.
Whereas, the market share Savour Foods in Pulao is almost 85% as that of
Islamabad and Rawalpindi. The economic growth of Savour food is 3.5 %
in 2014. The sales of Savour food per day are 3 million rupees in one
branch.

iv.

Social
Savour foods are preparing foods products according to social and
community standards as legal and healthier for people. So in this way
target market and people are more satisfied with their product.

v.

International:
Savour foods is a local Pakistani Restaurant and fast food eating place and
have not yet branch in any other country. But in future they want to start
also in other countries like UAE etc.

B. Corporate Review:
i.

Mission:
To be leader in Quality food at most reasonable prices and preferred choice of
enthusiastic manpower.

ii.

Moto:
To provide quality and clean Pakistani food specially and fast food generally
at reasonable prices.

iii.

Strategic intent:
Savour food is a fast food eating place. In past years they produced best
quality products to their customers. It indicates company corporate plan that
company promise to deliver best quality products which are healthier for life.
The Savour food is able to create value among consumers by introducing new
products continuously with business process.

iv.

Corporate Plan:

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Savour foods target health conscious people as their target market than they
provide best quality, tasty, healthier food to their customers. Savour food has
used as a business plan to achieve goals. They can change their products
according to consumers needs. Marketing plan of Savour food consist of to
produce best quality products in affordable price for typical market they use
best promotion sources to interact with customers.
v.

Long term goals

vi.

Objectives:

vii.

To expend business to all over Pakistan.

To expend business to other countries.
To enhance the value of brand name.
To generate more profit and increase the annual economic growth.
To satisfied their customer with quality, healthy tasty foods.

Savour food restaurant objective is to be the Pakistans largest and best

branded foods business produce with best quality products.
To build trust and strong business relationship with consumers,
governmental and authorities.
Introduce new products and tasty foods.
Monitor performance and results and make changes to achieve required
goals.

Organizational Chart:

C.
C.
C.
C.
C.
C.
C.
C.
C.
C.
C.
C.
C.
C.
Product Category Review:
i.

General Description:
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Savour food is one of the largest fast foods restaurant. Savour foods provide
products which are healthier and deliver best quality products to their
customers. They do not use any harmful ingredients. So their products are for
all people, ages and gender. All products are according to Customers needs
and wants. So here customers are more satisfied with taste of Savour foods.
ii.

Sales Trends:
People in now a days more conscious about their diets and health. Savour
foods introduce best quality brands which are healthier and tasty. Major shares
of brands according to organic growth are:
Pulao kabab 13%, Chicken roast 10%, Burger and fries 11%, Zarda and Kheer
12% & ice-cream 10%.

iii.

Distribution:
Savour food has its own distribution network with all transportation facilities.
They transport their raw materials and supplies to its own branches. The
distribution process consist of following steps:
Raw material, manufacturer, processing, product, packaging, transportation,
distributor, consumers and customers.

iv.

Pricing:
Price depend upon the market of product. Savour foods charge fair prices
according to the product quality, competition in the market and they made
product according to the buying power of the customers e.g. Pulao kabab
single 160 Rs Per packet, Chicken roast 480 Rs in Rawalpindi and Islamabad
both.

v.

Packaging:
Savour food used best material for packaging of product in order to prevent
food waste and avoid to damage environment, It also avoided the wastage of
packaging material. Savour foods design packaging in such a way that it
attract customers to buy the product.

D. Competitive Analysis:

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i.

Descriptions of major competitors strength and weakness:

Competitors are those entrepreneurs who are also engaged in the same nature of
business.
1. Competitors in Rice: Rice Hut, Student biryani, Saeen Jee Murg
Pulao, Bhaoo Jee Murg Pulao, Kamran Pulao Kabab.
2. Competitors in fast food: Macdonald, Rahat Bakers, Tehzeeb
Bakers, KFC, Hardees, Munches Snack Bar, Sogo grill, Danty fast
food.
These all provide same products like Savour foods and used best distribution
sources, make changes in price of products to challenge Savour food in the
market.

ii.

Brand Positioning and advertising:

1. Media Spending:
Savour food media spending rate is lower than their competitors, like
Macdonald, KFC uses expensive and all media sources and savour
food just uses local and less medial source. So it is about 65% less
media expense than KFC.

2. Sales Promotion:
It was one of the best advertising campaign used by companies to
attract customers. Savour food done the promotion of the products
very smartly at the starting of the business in Rawalpindi and
Islamabad. Savour foods try to positioning that their products are for
all ages and healthier for everyone in this way they attract large market
in both twin cities.

E. Consumer Analysis:
i.

Demographical Factors:
If we look on Savour food restaurant demographic segmentation then we will
find that their some products are for everyone, people from any area, culture,
age, and any beliefs etc.

ii.

Brand Loyalty:
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According to latest research Savour food restaurant is one of the most loved
restaurant all over in Rawalpindi and Islamabad. It is due to the consumers
brand loyalty. The mission of Savour Food is to provide consumers with the best
tasting and quality range of food from morning to night. They are providing best
quality products to their customers. In this way customers become loyal they
purchase less competing products available in market.
iii.

Purchase Rate:
Savour food restaurant provide products which are healthier and tasty. In this
way they attract health conscious people after delivering best quality products
their customer become brand loyal. They purchase Savour food products and
giving preference to their products among competitors products. Purchase share
of some Savour food product are:
Rice 20.3 %, milk and ice cream products 16.7%. Cold drinks 13.5%, Water
6.9% & Chicken 12.8% etc.

2. SWOT Analysis:
The purpose of SWOT analysis is to determine the Strengths, Weaknesses, Opportunities
and Threats in Concerned business. It helps to keep the business on track and profitable
and also helps to achieve the desired goals of any organization. It also help to develop
strategy and will reflect the reality if an organization analyze on the basis of facts and
figures.

Strengths:

Great taste.
Good quality food.
Take home quick order service. Different packages for different
customers.
Reasonable prices.
Sufficient with respect to quantity.
Use of technology in production of Shami kabab.
Idea adoption from foreign restaurants.
Strong brand name in Islamabad and Rawalpindi

Weaknesses:

Inability to provide quality services in rush hours.

Lack of knowledge about their customers.
Lack of relationship building with customers.
Limited to certain areas.
Only in the city of Islamabad and Rawalpindi.

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Opportunities:

Many people are living at distant places from the Savour Foods
branches. And customers have to travel huge distance to reach the
branch. So, they can open branches in many areas of Islamabad and
Rawalpindi.
People from Lahore admire the taste of Savour Foods and are voting
on the internet to open Savour Foods there. Many cities of Pakistan are
untapped and they also lack quality. The Savour Foods can tap them as
well.
Like they have introduced Zarda in the product depth. They can
introduce other products as Chinese rice.

Threats:

Inflation.
Political instability.
Increased sales tax rate.
Higher transportation rates.
Economic backwardness
Bomb blasts.

3. Strategic Planning:
a. Marketing Objectives:
Savour food restaurant business objective is to provide and market its products in
a way that creates value that can be sustained over the long term for owners,
employees, consumers, business partners and national economies in which Savour
food restaurant operates. The aim of the creating values for the company include
with improve business condition for the firm. To obtain more reliable and high
qualify source of raw materials, improved government functioning and regulatory,
employed skill and loyal workforce and superior quality products which
successfully complete.

b. Marketing Strategies:
Savour food define Marketing as the social process by which they obtain what
they need and want through creating and exchanging values with others.
Marketing strategy includes:

How to divide-up markets into meaning full customers (Segmentation).

Choose which customer groups to be served (Targeting).
Create market offering that best serve targeted customers (Differentiation).
Positioning the offer the minds of customer (Positioning).
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c. Targeting and segmenting:

Target Market: Savour Foods has targeted the middle class and upper middle
class customers in Rawalpindi and Islamabad. Especially they have targeted the
working class of the private sector, students, small and medium entrepreneurs and
the other organizations.
Market Segmentation: Savour Food has divided the market geographic,
demographic, psychographic, behavioral segments and according to the need and
demand of their value able customers. For this, they have made different deals at
different prices that the individual customer and customers in groups can order
according to their demand and need of products.

d. Competitive Advantages:

Leading in rice and fast food.

Best quality products to capture large health conscious market
The research and development capabilities allow the Company to lead the way
in innovation among its competitors

e. Positioning and Branding:

As Savour Food trying to positioning that their products are for everyone and
healthier for health. They do not use chemicals and harmful ingredients which are
also harmful for human beings as well as environment. In this way they attract
health conscious large market.

4. Marketing Mix:
Product:
Savour Foods provides wide range of 'Pakistani foods nutritious and
hygienic products at affordable rate. i.e. Chicken, Rice, Chicken Pulao
(Single),Pulao Kabab, Savour Krispo, French fries, Chicken Roast, Savour
Hot Shots, Kheer, Zarda, Ice cream etc.

Price:
Savour food uses different affordable price rate according to market and
competitors. Some product price in Rs i.e. Chicken Pulao (Single) 160,
Pulao Kabab 100, Savour Krispo 185 , French fries 200, Chicken Roast
480, Savour Hot Shots 300, Kheer 40 per serving, Zarda 60, Ice cream 85.

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Place:

Gordon College Road, Rawalpindi started in 2001.

Melody Food Park, Islamabad started in 2004.
Blue Area, Islamabad inaugurated on 24th March, 2005.
Cricket Stadium, Rawalpindi inaugurated on 14th August, 2005.
Next in Future plan to start branch in Lahore and Faisalabad and
Murree.

Promotion:
Savour food has adopted the channels for promotion through local TV,
Newspapers, magazines, personal selling and direct marketing, sales
promotion, packaging etc. For this purpose Savour food issues ads about
their products to local TV channels to interact with customers and
similarly to the newspapers, they also used hoardings on markets or roads
to communicate with customers.

5. Controlling and Evaluation:

a. Forecasting:
Forecasting is used by companies to determine how to allocate their
budgets for an upcoming period of time. Savour food the largest packaged
foods provider forecast sales to rise 10 percent this year, in line with its
long-term goals, following a stronger year in 2016. And hope to raise 15
% in next year.

b. Budgeting:
According to annual Savour food report in 2014-2015, they are operating
in two cities having about 510 employees. Savour food had sales of 3.5
million rupees of one branch per day and about 1.85 million profit per day.
Savour food spent 5 million Rs per year on media for advertisement
purpose.

c. Evaluation:
Savour Food is one of the largest restaurant in Rawalpindi and Islamabad.
In past years they delivered best quality products to their customers.
Savour food is famous restaurants which came to the stage it is today by
gaining superior competitive advantage over its rivals. The focus product
differentiation strategy has been very successful although it may not work
for other firms. The company is able to create and deliver value by
offering distinguished products. We are sure that Savour food will do
better in the future than their competitors and might be the new trendsetter
in some criteria and also gain its above-average returns to their company.
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Future of Savour Foods

With all the success coming up, one must think of the main reason behind it. As per the firm
belief of any Muslim, the real source of success or failure is Allah Almighty. Other than that,
hard work and dedication of a person leads to great heights in life. This model of success can
truly be taken as a great inspiration. From a cart to a multi-branch food chain, this story serves as
a model and an inspiring character. A cart person turned a business tycoon with a vision and
mission to make his food chain the best Pakistani food chain and has introduced technology to
meet the demand while maintaining the quality of food.
The future plans are to spread it across the country and the first step outside twin cities is Lahore,
then in Muree and Faisalabad.

Suggestions for Further Improvement of Business:

1. Following Businesses can be introduced by Savour:
Savour Pizza
Savour Chinese Food
Savour appetizers
Savour Desi Food
Savour Biryani etc.
2. Change the menu:
All businesses rely on regulars; the restaurant biz is no exception. Even a
risk-averse diner will tire of eating the same dish every weekend. Keep
your diners, and your employees, interested by changing up your offerings
constantly. The best way to do this is by making use of what ingredients
are in season right now. An added bonus is that these ingredients are often
the tastiest and cheapest.
3. Improve every day:
There are thousands of details involved in running a restaurant, and
therefore thousands of opportunities to make things better. As soon as you
stagnate, you are in trouble. If you just need to get through servicefold
the napkins, sear the steaks, get the food outyou are in trouble. How can
you make the service better? How can your staff become more educated?
How can you procure much higher quality tuna? How can you be better
than you were last night?
4. Give amazing service:
It's difficult to pull off impeccable service. Give great service and your
customers will notice and come back for more. Treat every person who
walks in the door with warmth and respect, and train your staff to do the
same. Go out of your way to make your guests happy.
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Story Line of Savour Foods

Before Starting a Business:
This process started in 1982. From 1982-1988 we experimented it. First we searched that what
kind of business we should. A business that is allowed in the religion as well as it is profitable.
So finally we decided to jump in food business, because it is allowed in Islam and Sharia.
[Video # 1

6:36--7:56]

It took 6 months to select the name Savour Foods and till now whatever we gained from this
business is invested in the same business.
[Video # 2 18:08--18:26]

First 5 Years of Business: [Video 1 8:019:48]

After experimenting for a long time and building a good taste, in 1988 we decided to originate in
the market. We kept the same standard of taste of food. We love our customer and they were our
marketer. We believed in customer to customer marketing.
[Video # 1

8:00--8:35]

Money is important but for me my customers are important, no doubt on the price to bear some
loss, just because customers comes first. Just because of this Savour Foods has got popularity
worldwide.
[Video # 1

8:39--9:00]

We starts from a small shop on rent without a name and gained customers by providing good
quality food. Then slowly and gradually we gained purchased the shop so that the amount of rent
can be reinvested in customers. We then opened another outlet with the same policy that first to
purchase the property and then to start business in it to save the amount of rent.
[Video # 2

6:07--6:28

13:3914:25]

Current Business Situation:

Prof Arshad Naeem Saab used to work 16 to 18 hours daily. He is fully work dedicated. Have
you ever seen a person who has around 600 employees that he check all the rice cooked by
himself and check whether it is cooked according to the standard or not? It is the main reason
that the taste which was at the first day of Savour Foods is maintained still and that why people
like us.
[Video # 1

1:43--3:01]

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Muhammad Naeem
The products to be used in production should be purchased with best quality and there should be
no compromise on quality. And then the production should in free of dirt and good environment
and then to sell with well-mannered to the customer.
[Video # 1

9:55--10:20]

This good and free production is possible if we buy fresh products from the market at the right
time and products which are of daily usage should be bought form certain market which are
specific for the products and specially opening time of these specific markets, at that time the
products are free and with good quality
[Video # 1

10:23

11:22]
Our mission is quick service
[Video # 1

1:54--

2:01]
Our business depends on three things
1.

Purchasing

2.

Production

3.

Sales
[Video # 1

11:38--13:51]

How good a customer will feel if he enters into a shop, and there are three to five employees
serving him? This will not only satisfy customer but also will help to gain loyalty with the
product
[Video # 2

00:34--01:39]

Future Business Strategy:

Idea of introducing Fast-food and ice-cream was my idea because people demand for certain
food items was increasing
[Video # 2 12:02--12:33]
Expanding business by opening two outlets in Lahore and two outlets in Rawalpindi and
Islamabad
[Video # 2

20:10--

20:35]
We are also going to open an outlet in Murree and Bahria Town as we have properties over
there
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[Video # 2

12:38--12:52]

Savour Foods
Case Study

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Savour Foods Case Study:

This part is specifically for the understanding on how the data was collected for the Case
Study.

Overview:

his paper simplifies the determinants of the success of small business getting up
and becoming the market leaders in that field, and these truths are revealed by the
owners of the small business in an attempt to motivate youth into developing and
implementing the ideas that are going to help in the growth of the industry as well
as leading economic prosperity to the stakeholders of the business. There are
numerous examples of such types of business throughout the world. After carefully selecting the
business which we have chosen, we can say that all the data collected in this research is Primary
data, which includes the one source that is interview with the owner of the business who was
assisted by two people currently working for him.
The business we are going to write about is Savour Foods that is owned by Mr. Naeem
Chaudhary.
After conducting the interview session and listening to it again and again, the reasons that we
could find was that he mostly stressed upon a few factors and his locus of control.

The Key words: Savour foods, Determinants, Entrepreneur.

The things that should be kept in mind while reading this case study is the difference in the
situations that the business as it started in 1980s to 2010s and there were many ups and downs
in the situation of Pakistan and we have to keep these factors in mind while discussing these case
study. There were not as many facilities as there are now a days, simple think like computers to
keep record so there many different strategies used in all the different situations, but this being a
simple case study there is not much detail about these problems, while the main focus remains on
the owner and how he was able to transfer a kiosk into well reputed brand in Twin cities. There
would be discussion on their competitors and that how the tackled them.
We have seen in past that business have been reduced due to their most focus on the profit
making rather than customer focus. To survive in the business world today, there is so much to be
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done as well put by Mr. Henry Ford "Businesses that grow by development and improvement do
not die." And we have seen Savour foods focusing both on development and improvements.
These are the qualities that are shown by Savour foods and now to continue with the rest of the
case study.

Research Methodology:
The research was conducted to figure out the determinants of the
success his customers by knowing their needs and requirements.

PROFILE OF THE BUSINESS:

The main purpose of the research was to interview successful business owner of Rawalpindi and
Islamabad area. Despite a lot of variations among the operations, practices, product line and
target market, and this business had one common point and that was their inception from a very
small scale. Another interesting fact about this business was that all of them encountered many
tribulations on their way but they were successful just because of their persistence. The factor of
success that exists in this business is the strong relation with the customers and considering
customers top priorities through valuing them with provision of good quality food and services.
Businesses in Pakistan are currently facing downward trend due to economic recession, lack of
good governance, political chaos and natural calamities. But the analyses of this study show that
one can still make his way towards success with determination and hard work.

Conclusion:
Businesses of any kind cannot touch the ends of productivity, profitability, growth, diversity and
fame until unless consistent efforts are not put forward to get the desired position in the market.
As we know technological changes in the present scenario brings immense modifications in the
way businesses are being conducted, however, no one can neglect the supreme factor that always
work to provide exponential growth and that is the faith on all mighty ALLAH. The success
factors discussed by the owner are honest, hard work, interest in the field and commitment.
Combining these factors, one can excel in any field, in any realm. Furthermore people who wish
to enter, grow and lead into contemporary business environment should have complete
understanding of the rivals and business dynamics, he/she striving in. The research concludes
that to gain success, an organization should have complete market analysis before step in and
only engage in those businesses which can result in maximum profitability and customer
satisfaction. This study shows that there are certain practices that must be adopted by the
businesses to attain triumph such as providing appropriate skills and training to the employees
and labors. This research further highlights the fact that businesses should preferably maintain
lasting and honest relationship with the customers by delivering high quality services.

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The Case Study:

t was in 1988 that a small kiosk was opened on the Gordon College Road, Rawalpindi
under the name of Savour foods. This was a new shop offering a different type of product
in the market that was the Pulao. There was no hotel at that time that was offering these
product and Mr. Naeem Chaudhary the owner of this hotel was confident that if he believed
in Allah and did hard work he would be a successful. With the passage of time he started to
realize the gap in the food industry and sought out help from people of his family to carry out a
research so that he can possibly find the void that he think is there and to fill it. His family
helped him as being illiterate was a draw back for him but he was never shy of it and sought help
from educated people whenever needed.
The trend he saw in the food industry was that people were focusing on traditional foods and fast
food whereas the traditional dishes like Pulao was left behind in the process. To fill this gap he
set up this food industry so that he could maximize from the profit best possible way.
It was just the beginning of a long time business when he first opened the shop in Rawalpindi,
the first of the coming in future Savour foods that even he himself has not predicted that would
become a leader in the food industry and revolutionize the way of how market opportunities are
scanned and how strategies are implemented in the real world and especially in Pakistan.
To analyze how this all came to be possible there are somethings that are to be understood. The
way how he turned this business and became a brand name and some important aspect of his life
that transfigured a normal kiosk into a multiple chain of hotels.
The first problem as faced by the entrepreneurs is to arrange the finance for the startup and he
sought help of his family and the gladly helped him to get the money and the first shop that did
not have the name of Savour was opened in 1984 with the seating capacity of 30 to 40 persons.
Still being illiterate he knew that to develop the business the most important aspect is to gain the
trust of the customers and to provide them a quality that should be unmatched in all aspects so
that the people only prefer his hotel. As the time went on he introduced some of the special
things like making days for some specific products that were like Tuesday was the day on which
instead kabab potatoes kabab were made available and the most important thing that he
introduced was the system of free rice that would help them in the gain the customers. This
system was to help so that they would gain customer with providing them all they can eat rice if
they were in the sit in. not for the parcel system.
As they grew in business he knew that there was to be some name assigned to the business to
make it grow and the name should be the one that would be related to the food sector and easy to
be in mind of the customers. It took him six month to come up with this name and by the end of
1988 his business had a name and was now known as the Savour Foods.

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The first thing that he did after naming the business was to allocate the funds so that they buy the
place that they have rented for the business as he believed that instead of paying the rent he
would give the same discount to the customers and that would help his business get an advantage
to the company in term of benefits that they could provide to all the customers visiting them.
With the passage of time he realized that his business was gaining popularity and but the specific
days for the potato Kababs were not as much popular as the rest so he decided to cut back on
this product and started to offer sweet dish that was custard in its place and this decision turned
out to be very popular and there was sudden increase in the business with the popularity of this
dish.
The business was gaining popularity on one hand and was becoming more of an economical
brand and the name was being linked with the restaurant that was offering high quality of food in
the reach of a common man. This was all made possible with the help of work done behind with
the link with the suppliers of the main food market. It was believed by him that there will be the
best way to strike a deal with them to gain cheap raw material and again the same source of the
customer benefit being kept in mind.
As the time passed the customers increased and the only shop became very crowded and resulted
in forcing of a decision that they needed to expand their hotel into more chains, so the search for
the different locations started and as the focus was only on Rawalpindi, the food street was
chosen as the best location to expand the business and first franchise was started apart from the
main hotel.
Then there was a tough decision as the result of this expansion led them to think of the twin
cities as separate consumer markets and they looked to start with grabbing the opportunity in
Islamabad. The main problem faced in this was customer choice difference and they were left
wondering with how to compete with the multi nationals chain if they wanted to get success in
Islamabad.
This was a very tough decision as they were to expand their products and were left wondering if
this is going to be beneficial for them or result in a loss. They choose the location perfect for
their old mission and targeted the working class during the day and opted to open their chain in
Blue Area where there were offices and lacked hotel for the common man.
With this they increased their products and had to cut down some products in the process with
the result being that fast food and ice cream being added to their system and the sweet dish being
replaced with the traditional Kheer.
This was a very bold move at the time and reward for this decision being that they had now
established themselves in both the twin cities. There was a long span in this increase of their
business in both the cities. It look approximately about 20 years to get these business up and
running from scratch to leader in Pulao kabab in both cities.
They faced a lot of intervention from the government in its initial years and had registered
everywhere. The owner being a religious did not believe in unfair practices and this was an
honest business so there was not too much trouble with any government offices.
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Until now Savour foods did not have any publicity and did only rely on the consumer that were
spreading the word of their quality to all the people they encountered. But the challenge rose up
recently with the launching of the similar types of hotels being opened in all the twin cities that
left them to wonder whether to focus on the market advertisement or to make their services better
to retain the customers.
The did not feel any competition because of the way they had established their brand and the
competitors did not offer any competition to them resulting in the dominance in the business and
no trouble being faced throughout the duration.
The thought of not being competed gave them a moral boost and lead them to generate a new
idea that is in its initial stages and would soon be completed and let them to explore other regions
outside the twin cities and there is a challenge that the Savour Foods will face for the first time
with the disadvantage being in their favor.
The first priority of Savor Foods is from start to now is how they deal with the customers and the
values they can add to them for them at every stage from reducing cost to owning the property
instead is a well thought of a strategy and has been executed to its maximum utilization and still
there is no doubt about it.
The owner Mr. Naeem Chaudhary has shown some dynamics of entrepreneurial skills with help
from his family and employees. This has led to believe that to him the religion will reward you as
long as you follow the right principles and do hard work, if there is any thing missing from it,
well there can be a change in fate. From all the above, it can be said that Mr. Naeem Chaudhary
thinks of internal locus of control rather than the external locus of control as he based his success
on the hard work he has put in the business.

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Literature
Of
Entrepreneurshi
p
22 | P a g e

Literature Review
Service quality is considered the life of hotel (Min & Min, 1996) and core of service
management (Chen, 2008) Service quality is related with customer satisfaction (Shi & Su,
2007) and customer satisfaction is associated with customers revisit intention (Han, Back
& Barrett, 2009). If an effective image is portrayed to customers, it will create competitive
advantage for hotel (Ryu, Han & Kim, 2008). As a result of service development process three
concept of service is composed and these three steps are service process, system and Service
resources-structure (Edvardsson, 1997). The owner of Savour Foods describes the importance of
quality service,
We always try to focus our customers, and there shouldnt be any
compromise over the quality of things purchased. It should be prepared and presented to
customers in a good environment. (15:35-15:56)
Marketing is the main factor that only focused on the Customer satisfaction (Flint & Woodruff &
Gardial 1997 & Peter & Olson, 1996). Our marketing is done through banners and
advertisements in print media, but most importantly customers do our publicity after having a
good experience. Mr, Naeemullah(35:25-35:35). Customer satisfaction plays an important
role in financial performance of hotel (Nilssom Johnson & Gustafsson, 2001). In hotel
industry, as service has direct interaction with customers, that is why customer satisfaction
can be a replication of service quality in hotels (Shi & Su, 2007). There are some factors
that have significant role in measuring customer association with hotel: age, gender,
income and culture (Ryu, Han & Kim, 2008).
Hotel performance is directly allied to service quality improvement. There is a significant
relationship exist between improvement in service quality and hotel performance
change (Narangajavana and Hu, 2008). High-level development tools are used for the
satisfaction of multiple users about service and quality (Hope & Wild, 1994). The key problem
lies with hotel manager is to retain and fascinate customers (Shi & Su, 2007). Customers revisit
intention and emotions are mediated by customer satisfaction (Han, Back & Barrett, 2009).
Customer satisfaction plays a role of mediator in perceived value of hotel and behavioral
intention (Ryu, Han & Kim, 2008). Both Public and private sectors have reviewed the Service
quality and to fulfill their demand, customer-focused approach was highly practiced (Pyon & Lee
& Park, 2009).
The managers of hotels are key element of decision makers. It is necessary to scrutinize the
perceptions of hotel managers about hotel ranking and they should correlate it with
improving
service
quality
and
performance (Narangajavana and Hu, 2008). Hotel
23 | P a g e

managers should focus on keeping the number of service failure low and observe customer
complaints constantly (Min & Min, 1996).
For improving service quality, four aspects were identified: (1) service delivery, (2) hotel
employees, (3) guest amenities and surroundings, and (4) prestige (Narangajavana and
Hu,
2008). There are many aspects of service performance and quality, some of them
are: (1) Service quality of reception hall, guestroom and restaurant, (2) Technique of
employee, (3) Decoration and atmosphere of hall, guestroom and restaurant (Han, Back &
Barrett, 2009; Ryu, Han & Kim, 2008), (4) Safety of room and courtesy of attendants, and (5)
Savor and variation of food (Han, Back & Barrett, 2009; Shi & Su, 2007). For providing
good quality service, employee management is a critical issue for organizations. It
affects business results directly (Nilssom Johnson & Gustafsson, 2001). Quality service
values customers' satisfaction and is necessary step for a competitive advantage (Berry &
Parasuraman & Zeithaml, & Adsit & Hater & Vanetti & Veale, 1993) and service quality
is affirmative to please the attitude of consumers toward the noticeable utility value in the
future (Lin 2007). In any business the attitude and character matters when you are dealing with
customers, they dont just eat food and leave rather they want to take good experiences with
them. Mr. Naeemullah. (22:10-22:30)
In every organization service and quality plays a vital role for every customers
(Brombacher, 2000). Customer is the main person who defines the Quality (Berry &
Parasuraman & Zeithaml, & Adsit & Hater& Vanetti & Veale, 1993). For providing good
quality service to customers, it is necessary for hotel managers to understand the expectations
of its customers (Shi & Su, 2007; Nilssom. Johnson & Gustafsson, 2001) and then
develop such programs that can address issues of customers (Narangajavana and
Hu, 2008) and bring improvement in service quality (Chen, 2008). Expectation is based
on the customer's demands and values but company's image or status in the market also
plays an important role (Edvardsson, 1997). To identify and enumerate what drives what
will track towards quality improvement, reduction in cost and ultimately customer
satisfaction (Buckley & Chillarege, 1995). To measure customer behavioral intention:
hotel image, value and customer satisfaction should be included (Ryu, Han & Kim, 2008).
Service is able to collect vital information about the behavior of products in dealings with
customers (Petkova & Sander & Brombacher 2000). Service quality has an encouraging
effect on the attitude of consumers toward the professed transaction value in the future
(Lin, 2007). Customers' behavioral intention shows great interest in being influenced
by
service
quality
(Zeithaml
&
Berry
& Parasuraman, 1996). Service quality
improvement with changing requirements of customers can be done with team work (Chen,
2008). When customers face any problem related to service, like unclean room,
uncomfortable room temperature and non-functioning phone lines, then these problems
must be resolved within now time (Min & Min, 1996). Reception hall is considered the
most important source of customer satisfaction (Shi & Su, 2007).
Program to progress service quality should comprise issues of customer dissection, service
provided, culture of hotel, communication with customers, recruitment and training of
24 | P a g e

service employees, and their appraisal system. To bring improvement in service quality, there
is a need to emphasis on tangible and intangible assets (Narangajavana and Hu, 2008).
For hotel managers, it is not necessary to just get room related revenue, but revenue can be
generated by improving service related facilities like better service production, error free
delivery, upgrading guest facilities and augmenting prestige of hotel (Narangajavana
and Hu, 2008). Hotel employees generally perceive that only two things are
important in service quality, one is cleanliness of room and other is courtesy of
employees (Shi & Su, 2007), but other aspects that make a standard of hospitality and
important for service quality improvement are atmospheric impression and decoration of hotel
(Shi & Su, 2007) along with previous two aspects (Min & Min, 1996).
Customers demand and expectations continue to change according to market that is why hotel
managers must timely know those expectations and improve their service quality accordingly
(Chen, 2008). We purchase things on time and supply it to the kitchen overnights so that
cooking starts early in the morning and customers get food on time because nobody waits when
they are hungry., Mr. Naeemullah says. (20:06-20:35). Besides this, different customers have
different perception of service quality, so there is a need to cater this problem also (Shi &
Su, 2007). Customers expectation about quality and for inexpensive products is higher
(Petkova & Sander & Brombacher 2000). Service quality should be sensitive to
changes in room like temperature, comfort and atmosphere, but insensitive to changes
in room size and fixtures (Min & Min, 1996).
Three things are included in service standardization: (1) Service
quality
standardization,
(2) service method standardization, and (3) service process proceeding (Chen, 2008). In a
development methodology there are four stages which include requirements analysis,
knowledge acquisition, system development, and system assessment (Hope & Wild). When
service quality is improved, then it will lead to customer satisfaction that will result in
good business results (Johnson & Gustafsson, 2001).
There is a difference of culture among countries that have different quality expectations.
The higher the difference in culture is, the higher the technical quality will be in
performance than that of functional quality, while the lower the difference in culture is, the
higher the functional quality will be in performance than that of technical quality (Lin
2007). Research about service and quality shows that many companies are to increase the
impact of service quality on profits (Zeithaml & Berry & Parasuraman 1996). The service
company introduces a service concept and this concept contains attractive addedvalue which is suitable to the customer's needs .resources is needed for the service process
that must provide by the service system (Edvardsson, 1997). Hotels that recognize high
pressure in the competitive environment tend to adopt standardized management systems
more willingly than hotels that fail to extricate such pressure (Mara del Mar Alonso-Almeida,
Jos Miguel Rodrguez- Antn, and April 2011).
A QM system based on the implementation of technical norms will acquire a similar meaning as
the official hotel grade (Josep Maria Bech Serrat, Feb 2010). Quality of hotel services is a
main issue that needed to discusse by an authorized perception (Josep Maria Bech Serrat,
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Feb 2010). With the advertise of hotel industry being intense, it is critical that hotels offer a
variety of resource and more flexible forms to meet the needs of a changing marketplace
(Cheng-Hua Wanga, Kuan-YuChenb, Shiu-ChunChena, 2011). The rising competition emerging
from burgeoning global markets aggravates the demand for hotels to innovate their
services and processes for a guaranteed success (Wen-Jung Chen, 2011).
Based on literature review, following hypotheses are being developed to be tested in this research
paper.

Theory 1: Impression of the reception hall is linked with customer satisfaction.

Theory 2: Cleanliness and atmosphere of hotel are associated with customer satisfaction

and behavioral design.

Theory 3: Courtesy of employees is associated with customer satisfaction.
Theory 4: Guestroom comfort is associated with customer satisfaction.
Hypothesis 5: Customers expectation level is high in the restaurant.

Conclusion:
This study examined the aspects of service quality in hotels that influence the satisfaction
of customers and their intention to revisit. The outcomes of this research conclude to provide
quality service is the amalgamation of different elements which are intricately linked with
each other. The findings of this study suggested that impact of service quality affects the
customer satisfaction that results in success of hotel and it is an irrefutable fact.
Moreover, sustaining the customer satisfaction level is an ongoing process that entails
unremitting improvement in service quality at hotels.

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Hotel
Rating
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Service
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Fan Chen (2008). Study on the Service Quality Evaluation and Improvement for Medium and
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Hokey Min, Hyesung Min (1996). Benchmarking the quality of hotel services: managerial
perspectives, International Journal of Quality & Reliability Management, Vol. 14 No. 6, 1997,
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Valarie A. Zeithaml, Leonard L. Berry, A. Parasuraman (1996). The
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