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Transcription of this question: 3.Sokol restaurantSokol is a well-established traditional restaurant in a village in Slovenia. Sokol has a new owner,Andrej Marinié. Andrej conducted some market research in order to analyse Sokol’s businessenvironment and reached the following conclusions:• Sokol has a good market share: last year, it served 12000 out Ofthe 60000 meals served in total byall the restaurants in the village• Sokol has two target markets: (i) young locals who want to eat out with friends, (ii) tourists whowant traditional Slovenian dishes.Andrej has constructed a position map* using the two axes Of price (cheap or expensive) and styles Offood (traditional or modern). The research showed that Sokol is perceived as cheap and traditional.Sokol three main competitors have the following characteristics:• Restaurant A: very expensive and very modernRestaurant B: cheap and traditionalRestaurant C: cheap and modern.The position map helps Andrej identify a new business opportunity: keeping the same traditionalstyle but changing to a more expensive, exclusive, up-market image. Sokol would target two newmarket segments: (i) locals for special occasions such as family celebrations, (ii) tourists who areprepared to pay higher-than-average prices.Andrej has three options:1. TO set up a joint venture with a five-star hotel that is to open in the nearby village.2. TO set up a strategic alliance with Restaurant A. The manager Of Restaurant A is keen tocollaborate in events such as the annual village festival.3. TO merge with Restaurant B, as they are the only two restaurants serving traditionalSlovenian dishes. This merger, however, would result in redundancy (lay-off) for some employees,which would create negative publicity in the village.position map: sometimes called “perception map” or “perceptual map”IC Intemational Baccalaureate Organization, 2013](a)(b)(c)(d)(e)Define the term redundancy (lay-off).Calculate Sokol market share for the last year.Construct the position map Of Sokol before Andrej made any changes to hisrestaurant _Analyse the usefulness Of market segmentation and targeting specific marketsfor Sokol_Advise Andrej about the most suitable option for Sokol.[2 marks][l mark][5 marks][5 marks][7 marks]

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