need in terms of variety and cost. Current data shows many Americans have disposable income and are dining out more often. Darden capitalized on this information and is now targeting the more affluent market with Bahama Breeze. Increased emphasis is on bar service and menu selections will ideally increase the average check price.A good reputation cannot be bought, but must be earned. That is why companies are spending millions of dollars a year on branding efforts. Darden is one of the fortunate few that have an established brand. The strength of Dardens brands has enabled it to develop catering services, different menus and specials, and now, a new restaurant chain.Company WeaknessesTangible resources are assets that can be seen and quantified. (Hitt, Ireland, & Hoskisson, 2001) The financial assets of a company are an example of a tangible resource. Based upon the ratio analysis (as seen in the table beginning on page 22) this is a weakness. While the company is earning record returns, it is also allocating considerable assets to expansion. In the long term, Darden will benefit from its growing property assets. However, from a financial perspective, Darden has a comparatively high leverage ratio and a low current ratio within its industry segment.Another company weakness is that Darden is not diverse enough in its restaurant chain portfolio. For instance, Brinker International, Inc. has nine different brands whereas Darden has four, of which Bahama Breeze and Smokey Bones BBQ represent a small portion. Diversity enables companies to benefit from many different ventures as opposed to being limited in resources. ENVIRONMENTAL OPPORTUNITIES AND THREATSIt is vital for a company to research, analyze, and react to its environmental opportunities and threats. Darden is no exception. Once identified, companies need to spend time, money, and manpower to analyze and react to environmental elements. Strategic decisions will determine whe...
