Applied Business Research



HI6008 Assignment 1 Requirements Structure:
1. Introduction
2. Project Objective
3. Project Scope
4. Literature Review
(Students’ needs to do full literature review (2500 -3000 words) on chosen
5. Conclusion
6. Reference List
7. Appendix
? Students need to decide on a business-related topic/concept. Students
need to select approximately eight to twelve (8-12) peer-reviewed
articles or comparable sources (online resource can be accessed using
ProQuest or Google Scholar) that are related to the topic (as the basis of
their literature review).
? In the context of their chosen topic, students need to review the articles
and sources selected, i.e. read and critically analyse (compare and
contrast) the literature. In doing so, students are required to discuss
the key ideas/arguments put forward by authors, identify
communalities/similarities, differences and conclusions drawn by
different authors. Based on this analysis and discussion, students
are expected to point out potential gaps in the literature that will form
the basis of Assessment 2, the research proposal.




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Social media is considered as the appropriate tool for the businesses in the context of marketing and making communication with their stakeholders or customers. In the present era, social media is growing with the diverse speed, as more and more business are joining social media tool, for expanding its business. The present study is concerned with the impact of social networking sites on business.In the present paper the research has been conducted on knowing the impact of social media in the coffee chains and restaurants of Sydney, Australia and their impact on the business in terms of increasing sales and retention of customers. In the present paper, we have identified Starbucks, as the organization in Sydney, to know the impact of social networking on business. The report focused on the use of social media tools like Facebook, Twitter, Instagram, and YouTube, that has been growing from the last few decades. The present study helps the researcher in identifying the gaps in methodology and literature review by studying dependent and independent variables by making a comparison of the viewpoint of different research scholars that has been conducted on the same field of study.
Objective of study 
The present research study is based on knowing the impact of social media on Starbucks, Australia. The research helps in identification of solutions to the following questions:
    • Impact of social media on the coffee chain and restaurant industry and its influence on the overall sales of the business?
    • What advantages and disadvantages are enjoyed by the coffee chains and restaurant industry by the use of social media in business?
The results that have been identified from the objectives of the study, will be proved helpful in the further studies that are based on the similar topic of study and also beneficial for business, who want to expand their business by using social networks in business. 


Scope of study 


The restaurant industry of Australia is growing day by day in terms of growth and sales in the last two decades, by having a presence of approximately 18000 restaurants in the country. For the growth and diversification of business it is essential to foster the sales of the business, and for that effective marketing and advertising strategy is required. According to (Malhotra, 2017), for the success of the business, an effective marketing strategy is required which includes the use of latest technologies and trends, to create interest in the minds of consumers. So the present study is trying to find out the impact of social networks in the restaurant industry of Australia.


Literature review 


The term social media is used and known by everybody in the present world. The urban areas, as well as the rural areas of the world, are well known with the words like Facebook, Instagram, Twitter, YouTube they are using them on the regular basis. It is seen as the recent trend but it is practiced since two decades before. Invention of sources like Facebook, twitter and YouTube has gain popularity in the concept of social networks, by creating availability to all the users around the world. Social media marketing has completely changed the concept of national and international marketing by dominating the traditional trends of marketing in business. The use of traditional media is seen as the costly one in comparison with social media marketing, and this is seen as the major reason of adopting social media marketing in business. In the traditional social media marketing, the concept of word of mouth plays an important role, in terms of making communication with the consumers. according to (Madziwa, 2017), primarily marketers a refocusing only on 4 P's of marketing but after the presence of social media a new "P” has been derived in the market with the literal meaning “participation”, which helps the marketers in creating new platforms for the business by creating long-lasting relationship with the customers and stakeholders that helps in maintaining the good brand image of the product and the business.
Different business tactics are created in the business by the use of social media platforms that ultimately helps the business in identification and creation of brand awareness, which ultimately led to business success. Social media also provides many benefits to the business in terms of loyal fan base, increase in business traffic, which ultimately leads to business exposure.

In the present paper we have discussed the impact of social media marketing in the context of the restaurant business, and for that, the organization chosen is this part of the study we will explore the benefits or drawbacks that are faced by Starbucks by using the concept of social marketing. In the year 2008, it is proposed by the CEO of the Starbucks that the company has to close approximately 17000 stores worldwide, due to the drop in the share value of the company by having 61 stores closed only in Australia. For resolving the problem the company went through the cost-cutting concept, but the cost-cutting involves the budget of advertising and marketing as well. But marketing and advertising are seen as the vital concept in increasing the sales volume of the company ( (2018). So for that company has to adopt the alternative channel for the advertising and marketing strategy.
For that proper analysis and implementation is essential. On the part of Starbucks, managing the communication mix is desired at all levels of marketing. And for that Starbucks has to grab the opportunity of using social media for the reorganization of an image. The concept of social media creates high value for the company, by creating a positive relationship with the customers, which ultimately leads to cost-effectiveness and efficiency of the organization. For promoting business by the use of social media Starbucks have appointed the team of social media which will be looking towards the monitoring and evaluation of the use of social media marketing.
By using the small team of social media, Starbucks began engaging in social media by creating official Starbucks Facebook fan page, which helps the company in connecting the company to the cyber world of social media. As Facebook is seen as the media platform which makes incorporation with the bank by the use of interactive videos, and contents that are seen as the interactive activities among the fans. 
The social media strategy of Starbucks include offers, coupons, discounts, and samples, that will be distributed through Facebook, as Starbucks is adopting Facebook as the major social networking site for its promotion and advertisement. For making promotional tactics the company is using the promotion event with the name of “Free cake Day”, which is designed exclusively for the Facebook fans, on a purchase of four liters cold drinks.  Besides this company also used Facebook for promoting the campaign of “coffee challenge” by offering Starbucks new lemon coffee on a purchase of Starbucks coffee, and in addition to that, the discount of AUD 1 will be provided on further purchases within a month.

 Starbucks created a high level of attention by the use of product promotion on Facebook, which results in high customer engagement. this example state that social media marketing creates a push and pull marketing, in which Facebook is used as the push marketing strategy for transmission of messages across the audiences. 
According to (Ellison,2015), restaurant businesses are using the concept of social networking, as it helps in providing an easy access to the customers,  by developing long-lasting relationships with the customers in the long run. on the other side(Sias,2017) said that only 60% of the population are getting awareness about the brand by the use of social networking sites and this 60 % comprised of millennial generations, who are actively engaged in the social sites on regular basis.   
According to (Vaast,2017) , he stated that in the restaurant businesses, the most perplexing part is to stay in social media marketing, as it is seen as the time-consuming process of marketing, because businesses have to spend long hours in search engine optimization and in sharing of events with the potential customers in terms of blogging, posting, sharing etc.
According to (Clark,2017 ) , as per the study conducted on impact of social media on business, the base of her analysis is based on twelve restaurants which include McDonald's, Pizza Hut, Taco Bell, Burger King, Subway etc. , and the analysis part of this study states that marketing tactics of all these businesses are seen as the combination of traditional and social marketing, in which the majority of marketing is done by the use of social media marketing due to cost effectiveness and faster accessibility among customers. 
On the other hand in the words of (Grabner,2015), he stated that marketers use the social marketing strategies by the use of mobile marketing by creating banner ads on the mobile websites or apps, by the introduction of Android applications or I-Phone applications, which helps in mobile advertisement. 
Recently a new research has been done, to know the impact of social media in creating a buzz in the market and attracting customers. The previous researchers state that social media is creating a buzz in the market (Balkrishna, 2017). To inspect the impact of tweets on sales and return on investments. 1500 Australian consumers were examined in the study for around 50 product areas in the year 2015 and 2016 in which respondents were asked to how degree does the online networking impact their choice ventures and about occurrences when they prescribe items. Effects of online networking on purchasing choice are more noteworthy than previously and it is developing in duplicating rate (Kietzmann, 2014). In spite of the fact that the span of social influencers making the buzz is little.
On the other hand, other research stated that normally about 26% of the buys on all item classes were prompted by social suggestions which are altogether 10-15% higher than assessed. Thirty item classifications were contemplated where two-thirds of the effect was immediate that is proposals assumed a basic part of the purpose of procurement (Han, 2016). Staying third was backhanded which implies online networking impacts at prior choice voyage touch focuses for instance suggestions makes familiarity with an item or interchanges with companions causes buyers to contrast quality and with assess higher esteem highlights. Additionally, in 2016, the outcome demonstrated that online networking proposals have expanded 10% more purchases that have been done in 2015.
In the context of Australian business, the internet forum is adopted easily by the Australian users in which it is recognized that Australians are using internet on regular basis and approximately 70% of the users are doing online purchases from these social networking sites.

The researchers show that businesses nowadays are using many social networking tools which leads to the success of the organization as these tools provide a better opportunity in terms of increasing brand awareness and gains. But every coin is having its two sides, in the same way along with the advantages social media marketing also led to several disadvantages. In the words of (Ghiselli, 2015), social networks are choosing by the organization according to the size of the organization, and if the relevant network is not adopted in selecting the target group it leads to disharmony. on the other hand (Kim,2016), he stated that social media requires a long time investment for maintaining cordial relations with the consumers, and for that latest updates are required for creating curiosity among consumers. The most ultimate negative effect of digital marketing is the negative reviews from the side of consumers, as the negative reviews will hamper the image of the business, and for the social media managers have to respond to these reviews as soon as possible by deleting disapproving opinion from the fan page, so that others cannot be able to see it, and by responding negative feedbacks in a positive way (Yang, 2014). In the context of Starbucks, the company also faced negative sides as they do not update the content on the social media platforms frequently, which led to the controversy that company is focusing on quality of content rather than quantity of content. This will be seen as the good thing but at the same time it raises controversy, so the company has to focus on content to avoid raising of such controversies. One little exemption that will be seen with the company is the Twitter campaign amid Christmas of 2014 in the U.K. In it, Starbucks begged individuals to "spread the cheer." People who reacted beseeched the organization to "pay its charges" for promoting it which also seen as the negative side of the social media which is faced by Starbucks.
According to (Mangold, 2014), he stated that about 80% of the consumers are more likely to recommend the brand to others if they are experiencing positive experience with the brand on social media. whereas according to (Hoffman,2014) , he said that fresh content matters in social media marketing as  it increases the reach to customers by 10times, by the use of  Facebook, Twitter, Pinterest etc. by using social media concept, the marketers will diversify their efforts by connecting to the versatile customer base to create the niche market. Each content on social media is creating new doors for the customers and creating opportunities for the marketers to connect with the target customers. 

Research gap
From the literature review, it is evident that many researchers have been conducted to know the impact of social networks on the restaurant and food chain business. in the present research, we have made an effort to know that how social networking sites have helped the restaurants of Australia in terms of enhancement of business by taking the reference of Starbucks, Sydney, to know the impact of social networking on business. With the help of this report, we have identified that how social media marketing strategies help the businesses in increasing revenue and sales by reaching easily to the potential consumers. For developing the report we have used the framework of the dependent variable and independent variable, where the use of social networking is seen as the independent variable and the impact of an independent variable is seen on the dependent variable which is defined as reaching to the target consumers by making an increase in sales.
The gap that has been identified in the present study on  the basis of literature reviews conducted on similar field is that although social networks are seen as the concept of international marketing  which leads to increase in sales by reaching it to the potential customers in an easy way, but  for getting an accurate picture of the findings the quantitative research has been conducted for getting the deeper understanding of the study which will be done by the use of sampling methods , so that the qualitative assessment will be done regarding the involvement of social media in the restaurant businesses. 




In the present scenario, social networking media is seen as the important platform for expansion of business on the global domain. It helps the marketers in seeking out potential customers. The main objective of this study is to know the impact of social media in business by taking the concept of advantages and disadvantages. The findings of this study proved that direct impact of social media is seen in terms of increased sales and customers. The social media strategy of Starbucks is used as an example, to understand that how businesses use the advantages of social networking in promoting and expanding the business. But social media marketing also suffers from few disadvantages, like negative feedbacks from customers, negative word of mouth publicity, which will directly or indirectly impact on the sales of the business. But on the whole social networks bring higher revenues by enhancing the market.




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