Studio67 Mission & Vision, Strategies - Example

Table of Contents Executive Summary 2 Description about the business 3 Services 4 Industry Analysis 5 Market Analysis 6 Marketing Plan 9 Operational Plan 13 Organizational Plan 15 Contingency Plan 16 Financial Plan 16 Conclusion 20 References 21 Executive Summary Studio67 is looking towards a business opportunity in Australia where the investor is investing $50,000 and has to look forward towards borrowing another $50,000 from the market so that it is able to start its business effectively. Studio67 will look to serve non greasy food to its customers who will have low oil and fat content. This report thereby presents the complete business plan for Studio67. To ensure efficiency in services Studio67 looks towards understanding the market dynamics by looking into the industry and market analysis. These present a bright opportunity for a restaurant business on a different theme due to increase in health conscious people and rising disposable income. To fight competition Studio67 looks to hire the best workforce and ensure maxiumum pleasure for customers so that they become loyal. The operational plan also highlights that the business will start operative in six months. The financial plan shows that the business has an opportunity for earning high profits and if the management is able to solve and work according to the planned outlines will be able to fetch higher revenues. The restaurant has also looked into the marketing aspect and prepared a contingency plan which can be used in case of difficulties. The overall situation seems bright and if Studio67 is able to convert the opportunity into a real business scenario the restaurant will be able to grow and ensure high returns for its investors. 1.0. Description about the business This section tends to provide the information about the company and the idea that about the venture and the manner it will help in the growth of the business. 1.1. Company Overview Studio67 will look towards providing food which is organic and creative in nature. This will help the restaurant to present itself as one which looks to supply healthy food which is totally organic by ensuring that the service provided is of high quality and supplies which is non greasy and has low oil content. 1.2. Mission & Vision Mission: Studio67 will look to provide quality food to the visitors by ensuring that the ambience provides a soothing experience at the same time having excellent facilities which matches to those of top quality restaurant. In addition to it Studio67 will look to have food which is non greasy and ensure that the delivery of services helps to generate profits for the owners. Vision: To provide food low in oil content and ensuring high quality and taste so that customer’s conscious about the health can dine in. 1.3. Objectives To ensure sales which will be greater that then the cost in the first two years so that profits in the future can be more than 7.5% To ensure quality and develop a brand name so that customers visiting the restaurant become loyal and visit the place again and again. 1.4. Strengths & Core Competencies The ability to have employees who understand the culture and provide food according to the wants of the customers Dedicated workforce looking towards enhancement of customer satisfaction Ability to differentiate from the other restaurants in Australia due to a different theme and model being used by the restaurant 1.5. Challenges Studio67 will face severe challenge from other players performing in the industry as to understand the taste and preference of customers is difficult. This will make Studio67 face the following challenge Different theme restaurant present in Australia Increased concern towards obesity and oil and fat content in food consumed at restaurant 2.0. Services This section will help to understand the services that will be provided by Studio67 and the manner the restaurant will look towards molding the market scenario to be able to attract maximum people to the restaurant. 2.1. The Menu Studio67 looks towards having a menu which will consist of food which is non-greasy. To ensure a change in taste the menu will be different everyday and will look towards having limited range so that the chef can prepare the food of top quality. Studio67 also looks towards increasing the food range as the restaurant gains popularity. Having a limited range in the beginning will also help to ensure a check on expenses by having the limited items in store. Ingredients Studio67 looks to have the ingredients procured form outside as well as the local vendors. To ensure quality stuffs will be purchased fresh and steps taken to ensure that the core constituent is organic and ensures healthy food habit for customers. 3.0. Industry Analysis Studio67 is a different type of restaurant having a different theme where they intend to supply with food which has little oil content. This will make the restaurant appeal to both male and females as increasing concerns towards obesity and heart problems has made people look towards alternative which will ensure proper food that benefits the people (Czinkota & Ronkainen, 2004) It has been identified that Australia has over 30,000 well renowned restaurants which looks towards catering millions of people. Out of the total restuarant around 49% are located in Melbourne, Sydney, Perth, Adelaide, and Brisbane. This has thereby increased the concentration of restaurants thereby intensifying competition. 4.0. Market Analysis This section will help to understand the market for Studio67 and the manner in which the different factors dominate the demand for food products in the area (Phillip & Gary, 2001). 4.1 Market Description The market analysis highlights that Australia has over 30,000 well renowned restaurants which looks towards catering millions of people. Out of the total restuarant around 49% are located in Melbourne, Sydney, Perth, Adelaide, and Brisbane. This has made it difficult for a restaurant working on a normal theme to be able to ensure success. 4.2. Industry Life Cycle The restaurant market is highly concentrated with restaurants offering similar products and the differentiating factor has been the quality of service and the different themes used by restaurant. This helps to predict the industry to be in growing phase as the income level on an average for people visiting the restaurant is $76,000 and covers only 23% of the population thereby having a scope for growth makes the industry look as 4.3. Cyclical Trends The restaurant industry is affected by cyclical trends as the number of visitors’ increases during festivals and decreases during the rainy season. The trends further gets affected for places which have tourist as people tend to be attracted more towards the restaurant when the flow of tourist is more and looks to dine at places which provides quality food. 4.4. Market Growth The hospitality industry is growing rapidly and with people preferring Australia as a place of tourist destination the growth is bound to be steady. The industry has witnessed a growth of more than 12% which has resulted in the market to grow. The manner in which people are looking towards having more holidays and the increasing trend towards dining in restaurants will further bolster the market growth rate (Cateora, Mary & Graham, 2009) 4.5. Market Demand The restaurant industry is witnessing a huge demand because of following factors which have made more people dine in restaurants Customization: Restaurants look towards having customization by having specially prepared and served food for each customer so that each customer is able to identify himself with the restaurant and looks towards visiting the restaurant again and again. Ease of Service: Increase concern which has made restaurants look towards providing food which is of high quality and having the food oil free and non greasy so that it doesn’t lead to obesity. 4.6 Market Trends The market trend for the restaurant industry highlights various changes which the industry has witnessed over the years thereby making more people look towards investing and doing business in the industry Increase concern towards food which have low fat content Increasing concern towards obesity making people postpone and change their food habits towards healthy food Increased excercising technique to be able to burn the calories consumed by people so that they are able to have junk food 4.7. Market Opportunities The restaurant industry offers different opportunities to the investors because of the following factors which have increased concerns Around 300 million people face the risk of obesity More than 60 million people are overweigh and obese in Australia which has increased the demand for health conscious food More than 15% children in Australia have more weight 4.8. Barriers to Entry There is no barrier to open a restaurant and needs to confine to some of the rules and regulation prescribed by the government 4.9. Target Customers Studio67 will look towards targeting both the male and the female population which includes children. Since, the business model is based on providing grease free food to the customers so the target will be more towards people who are obese or look towards having food which is healthy and will fight obesity. Also, the fact that the restaurant tends to use organic material while preparing food which will make them target the correct customer base and look towards customers in the correct segment. 4.10. Competition The restaurant industry offers stiff competition as all the players in the restaurant industry looks to offer similar food with slight difference. The major difference that arises between the restaurants is the quality of service. Also, the increase in different theme restaurant has intensified competition and restaurants need to look towards devising a mechanism which will help them to differentiate themselves from the other players in the market and fight competition that will develop loyal customers for the future. 5.0. Marketing Plan This aspect will help to understand the marketing strategy that Studio67 looks to have. This will also look into various factors which will have an effect on the working and the manner the value will be delivered to the customers (Luther, 2011). 5.1. Value Proposition Having food which is low in oil and fat content at the same time ensuring quality and taste which matches the taste buds of customers Having qualified and highly experienced chef who is able to make the orders made by customer of high value Quality service by having a workforce which looks to deliver food to the customers at the most competitive price and within the shortest period of time 5.2. Branding Studio67 looks towards branding itself and creating a different perception in the mind of the customer by eying the niche market so that they are able to brand themselves differently and able to make the customers coming to their outlets have a different feel. This will add to their brand growth and will make people experience a different feeling which will help to create an atmosphere where the brand Studio67 is able to grow. 5.3. Marketing Objectives Studio67 will look towards creating a halo effect around their restaurant and will look to participate in different health care programs which will make the customers understand the manner in which dining in Studio67 ads to their health and helps to check obesity. 5.4. Strategy Studio67 will look towards marketing itself to customers who are obese. This will stand as their primary objective because being able to provide and check obesity will help to spread word of mouth which will add to the popularity of the brand. Studio67 will also look towards children and families and help to highlight the quality of food provided by them. This will be aided by different promotional campaigns and awareness program which will make people understand the manner in which dining in the restaurants will help them to fight obesity and act as tool in marketing themselves (Krasnikov & Jayachandran, 2008). 5.5. Marketing Budget Studio67 has looked towards allotting $5,000 for marketing itself. In the first year the restaurant will use different mediums like newspaper, bill boards, pamphlets, radio and other cost effective promotional tools. 5.6. SWOT Analysis This will help to understand the manner in which the restaurant will look towards working on its strength and develop a framework which is able to ensure maximum growth opportunity for the restaurant.   Helpful Harmful Internal Strength Weakness Looking to fight obesity Increasing competition from similar provider Trained 7 experienced Chef High Cost of training staff Quality Service External Opportunities Threats Increasing concern towards obesity Similar service offered by other players Growing population Increasing regulations from food department Increasing disposable income The analysis shows that Studio67 has looked towards identifying their strengths and using it towards the development of their business and ensuring maximum return and satisfaction for its customers. 5.7. Marketing Mix The marketing mix for Studio67 will help to understand the manner in which the restaurant looks towards providing the services. The description of the services in accordance with marketing mix is as follows Product: Studio67 looks to provide service by serving quality food which is low in oil and fat content. Studio67 also looks towards ensuring that they provide non-greasy food and ensuring that the health conscious customers are provided with different variety of food as per their taste. This will ensure variety and help Studio67 to provide different products to its customers Price: Studio67 looks to price its product for the premium category of customer as it looks towards designing the ambience, have quality food and ensure proper delivery of food and services so that customers are satisfied. For this purpose Studio67 looks towards pricing their product slightly high so that they are able to fetch sufficient revenues for their business. Place: Studio67 will provide services at the restaurant and the food will be delivered by the customers at the table. Studio67 looks towards providing food directly to the customer and ensure enhancement of customer satisfaction. Promotion: Studio67 based on the budgeted allocation for marketing looks towards marketing the restaurant through newspaper, bill boards, pamphlets, radio and other cost effective promotional tools. Studio67 is also aiming at high customer satisfaction so that word of mouth can be used to attract customers and spread the popularity about the restaurant. 6. 0. Operational Plan This section of the report presents the strategy that will be used by Studio67 to ensure that they are able to operate in the manner they have desired. 6.1. Service Execution Timeline The service execution timeline for Studio67 looks as follows (Kramar, Bartram, De Cieri, Noe, Hollenbeck, Gerhart & Wright, 2011) Task Execution Period 1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month Choosing Location √ Legal Formalities √ √ Hiring of Staff √ √ √ Advertising √ √ √ Opening of Studio67 √ The above chart highlights that Studio67 by following the timeline set by them will be able to deliver and open the restaurant within a period of 6 months and will also be able to ensure that they are able to market themselves properly. 8.2. Location Studio67 will locate the restaurant in the cities of Australia which has grown and provides a high disposable income so that people are able to spend on the restaurant and eat the health food that the restaurant provides. 8.3. Legal Environment Studio67 will look towards adhering to the local formalities provided by the government. Along with it Studio67 will also look towards ensuring that they are able to adhere to the legal requirement laid down by food department and maintain quaility and hygiene in the food servide by them. 8.4. Personnel Studio67 will look to have chef, washer, manager, staff and other employees that will help them to fulfill and work in a manner that helps them to deliver quality services. For this purpose Studio67 will look towards hiring around 15-20 employees in total. 9.0. Organizational Plan This aspect of the report will help to understand the manner in which the organization will be able to manage the workforce and develop a mechanism that will ensure efficiency in operations (Fletcher & Crawford, 2011) 9.1. Personnel Plan Studio67 looks towards hiring the best talent from the industry so that the workforce can be used towards customer enhancement. This will help to ensure that customers are able to satisfy their wants and will be able to make loyal customers Personnel Plan   1st year 2nd Year 3rd Year Manager 6000 6500 7500 Hostess 3200 3500 3800 Chef 7200 7800 8500 Cleaning 2500 2900 3300 Waiters 3200 3500 3800 Others 1800 2500 3000 Total People 10 12 14 Payroll 23900 26700 29900 The above strategy states that Studio67 is looking towards having the best workforce so that the restaurant can be able to mold the services of the employees towards the development of customer satisfaction. 9.2. Bankers Studio67 will look towards identifying the bank during the process and will choose the bank as per the requirements of the business 9.3. Advisors Studio67 will look to have advisors that are able to guide the management and ensures that they choose an advisor that will guide the business according to the requirements of the business so that all the problems can be solved. 10.0. Contingency Plan Studio67 has also identified a contingency plan that the restaurat looks towards using in case there is some problem and the business is unable to grow as per the set standards. To ensure conformity with the objectives Studio67 looks towards evaluating the performance over a period of 6 months so that necessary inputs which will help the business to grow can be identified. Studio67 has also looked to ensure that the management and advisor is available to the business at all times so that problems can be brought to the notice early on and steps taken to improve the condition of the business towards the accomplishment of goals (Ireland, Hoskisson & Hitt, 2007) 11.0. Financial Plan This section will help to understand the expenditure that Studio67 will require and will help to understand the manner the business will be profitable for the investors (Chew, Cheng & Petrovic-Lazarevic, 2006). 11.1. Start up Expenses The Start up expenses for Studio67 is as follows Source of Capital In $ Self Financing 50,000 Borrowed Funds 50,000 Total 100,000     Expenses In $ Development of Restaurant 35,235 Capital Expenditure 28,000 Promotion 5,000 Recruitment 12,000 Other Expenses 8,700 Total 88,935 The chart depicting the manner of expenses that will be incurred by Studio67 is as follows 11.2. Revenue Forecast The three revenue forecast for Studio67 based on the premise that the restaurant industry growth will be seen by Studio67 is as follows Sales Forecast (3 years)   Year 1 Year 2 Year 3 Revenue from Restaurant Business $118,000     Revenue from Restaurant Business   $148,000   Revenue from Restaurant Business     203,000 Other:       Delivery of packaged food   $12,000 $27,000 Total $118,000 $160,000 $230,000 This is seen by the chart which shows the income pattern as 11.3 Profit & Loss Projections The profit & loss projection for Studio67 will be as follows Sales Forecast (3 years)   Year 1 Year 2 Year 3 Revenue from Restaurant Business $118,000     Revenue from Restaurant Business   $148,000   Revenue from Restaurant Business     203,000 Other:       Delivery of packaged food   $12,000 $27,000 Total Revenues $118,000 $160,000 $230,000 Expenses       Development of Restaurant 35,235 21,000 18,000 Capital Expenditure 28,000 24,000 21,500 Promotion 5,000 13,000 19,000 Recruitment 12,000 23,000 29,000 Other Expenses 8,700 10,500 12,200 Total Expenses 88,935 91,500 99,700 Profit Before Tax $29,065 $68,500 $130,300 Income tax (10%) $2,906.50 $6,850.00 $13,030.00 Profit after tax $26,158.50 $61,650.00 $117,270.00 The above projections for Studio67 highlights that the restaurant is able to earn profits for all the year as the growth in the business is providing an opportunity for the restaurant to be able to grow. 11.4. Break Even Analysis The break even analysis will help to understand the manner in which Studio67 will be able to ensure that they don’t have to incur any losses. This is shown in the Performa below Break Even Analysis Cost Description Fixed Cost Variable Cost (%) of fixed cost Variable Cost     Employees & Chef   10% Other Services   3% Fixed Cost     Development of Restaurant 35,235   Capital Expenditure 28,000   Promotion 5,000   Recruitment 12,000   Other Expenses 8,700   Taxes 2,907   Total Fixed Cost 91,842   Total Variable Cost   13% Breakeven Sales Analysis 103,782   The above analysis shows that Studio67 will be able to achieve the breakeven point when they are able to sell food and services worth $103,782. This will ensure that Studio67 is able to ensure no loss and the business provides an opportunity for growth. Conclusion This report thereby looks to present the business plan for Studio67 where the report dwells on different aspect of the management. The report presents the manner in which Studio67 will go about developing the business and concentrates on the financial aspect to find out whether the business will be able to benefit from investing into the business. This report also looks to provide the manner in which Studio67 will look towards marketing the restaurant and the manner in which it will operates. It thereby presents all the important details pertaining to the restaurant business and the manner the industry and market is growing which will enable the investor to get the money both from self financing and borrowing from the market. References Czinkota, M.R. & Ronkainen, I. A. 2004. International Marketing, 7th edn. South-WesternPublishing:Australia. Cateora, P.R. & Mary, C. G. & Graham, J.L. 2009. International Marketing, 14th edn. Irwin: McGraw-Hill. Chew, M.M.M., Cheng, J.S.L. & S. Petrovic-Lazarevic, 2006. Managers’ Role in Implementing Organizational Change, Journal of Global Business and Technology, Vol. 2, No. 1 Fletcher, R. and Crawford, H. 2011, International Marketing: An Asia-Pacific Perspective,PearsonAustralia. Ireland, R. D, Hoskisson, R. E, and Hitt, M. A, 2007. Competing for advantage, Cengage Learning Kramar, R., Bartram, T., De Cieri, H., Noe, R., Hollenbeck., J, Gerhart., B, and Wright, P. 2011. Human Resource Management: Strategy, People, Performance, McGraw Hill: Sydney. Krasnikov, A. and Jayachandran, S. 2008. The relative impact of marketing, research and development, and operational capabilities on firms performance, Journal of Marketing, 72 (4) Luther, W. 2011. The Marketing Plan: How to Prepare and Implement It, Fourth edition, AMACOM Div American Mgmt Assn Phillip, K. & Gary. A. 2001. Principles of Marketing, 9th ed. Upper Saddle River, NJ: Prentice Hall, p.245 Read More