Entrepreneurship Assessment - Green Fast Food Restaurant - Example

ENTREPRENUERSHIP ASSESSMENT Name Institution Professor Course Date Entrepreneurship Assessment Executive Summary The business entity will adopt the name, Green Fast Food Restaurant. The restaurant will aim at attracting a minimum of 100 regular customers daily for the products and services in the first year of its operations. This new business plan will focus on targeting the individuals seeking to engage in the consumption of healthy food products. This is through engaging in the provision of the following products: chili-topped potato, grilled chicken, grilled chicken breast with mashed potatoes, chick-n-minis breakfast, teriyaki chicken bowl, chargrilled chicken cool wrap, and southwest salad and fruit-n-yogurt parfait. The mission of the new business entity will be to offer the residents of Melbourne the best fast food products and services in the area. This is through the expression of the commitment to the delivery of service quality while offering value to the consumers in satisfaction of their needs and expectations. The values of the organization will incorporate performance excellence, teamwork, and integrity. Introduction In the case of Australia, the fast food industry is growing annual at a very fast rate because of the influence of innovation, as well as the presence of the multinational chains such as KFC and McDonald’s. The multinational chains have focused on setting high levels regarding the generation of revenues through the exploitation of market-based approach, as well as modification of their food menus (Dunn et al., 2008). Fast food consumers in the case of Australia continues to demand more regarding the food quality and service, thus, the tendency to demonstrate higher expectations on the entire experience during the case of visiting their preferred fast food restaurant. In the midst of quick, easy meal to grab on the go, there continues to be a critical issue relating to the consumption of the fast food products. This relates to the increase in the incidences of obesity among the target audiences (Chen, Yao, and Kotha, 2009). Individuals have focused on the adoption and integration of new healthy eating habits in spite of visiting the fast food restaurants. From this perspective, this new business plan will focus on targeting the individuals seeking to engage in the consumption of healthy food products. The business entity will adopt the name, Green Fast Food Restaurant. The restaurant will aim at attracting a minimum of 100 regular customers daily for the products and services in the first year of its operations. Besides, the business will focus on the delivery of excellent or quality services at reasonable prices, thus, the platform for the generation of outstanding customers’ experience. The mission of the new business entity will be to offer the residents of Melbourne the best fast food products and services in the area. This is through the expression of the commitment to the delivery of service quality while offering value to the consumers in satisfaction of their needs and expectations (Gilbert et al., 2004). The values of the organization will incorporate performance excellence, teamwork, and integrity. For instance, the organization will focus on acting like responsible owners seeking to meet and surpass the expectations of the consumers. From the teamwork perspective, the staff members will act as a team committed to each other in the influence of trust and loyalty. Integrity will focus on treating the members and other relevant stakeholders with dignity and respect (Zimmerer, Scarborough, and Wilson, 2002). Categorically, Green Fast Food Restaurant will incorporate honesty, ethical behavior, and integrity as critical elements of the business conduct. The company will focus on maximizing its resources and revenues through utilization of diversity in its business model (Block, Scribner, and DeSalvo, 2004). This is through engaging in the provision of the following products: chili-topped potato, grilled chicken, grilled chicken breast with mashed potatoes, chick-n-minis breakfast, teriyaki chicken bowl, chargrilled chicken cool wrap, and southwest salad and fruit-n-yogurt parfait. This business plan will incorporate market, technical, human, and financial feasibility. The approach will be valuable in the examination of the techniques for the achievement of success in the integration of the new business platform. Market Feasibility In the context, it is valuable to note that the business will aim at attracting a minimum of 100 customers on a daily basis. The business entity will concentrate in targeting the market in which consumers are busy to prepare their food products, but still want to engage in the consumption of quality products (Sahlman, 2008). The business will target middle-income earners in the context of Melbourne with the intention of maximizing the revenues and profit levels at the end of the fiscal period. The fast food industry is at the maturity stage, thus, the need for adoption and exploitation of differentiation business model in the course of maximizing the revenues and profit levels. The growth rate in this industry is approximately 5 percent. The fast food market is not at full capacity because of the continuously changing demands and expectations of the consumers in pursuit of quality products and services. In this context, consumers focus on the consumption of health food products in the course of limiting contraction of diverse diseases and healthcare conditions. From this perspective, there is enormous room for involvement in the fast food industry concerning the case of Australia. Nevertheless, the industry tends to have multinational corporations and chains such as KFC and McDonald’s, which have enormous global coverage, thus, the ability to compete effectively. The new business will at exploring unique market segments in the course of maximizing the opportunities to increase the profit levels while reducing the cost of operation. Currently, consumers are getting these products from the multinational chains in the fast food industry, thus, the need to create a new angle regarding healthy eating habits. The existing customers work in Melbourne; thus, the platform to visit our business or order for the delivery in their offices. The approach will be essential in enhancing effectiveness and efficiency in the delivery of quality services to the consumers. The existing consumers will have the opportunity to procure our products and services because of the intention to maximize the marketing strategies in agreement with the demands and expectations of the consumers. Integration of effective and efficient marketing strategies such as TV, radio, and social media platforms will enhance the awareness of the consumers about our products and services at their disposal. This will aid the approach by the organization to achieve its target of offering quality products to the consumers, thus, targeting a minimum of 100 consumers. These 100 consumers will have the ability and potentiality to enable the organization to sustain its profit and revenues at the end of each fiscal period. The organization will focus on adhering to the government regulations, competition, market price, demands of the consumers, and advertising costs in the determination of the most appropriate prices. These prices will enable the organization to adhere to its low-cost business model in addressing the demands and expectations of the consumers (Zimmerer, Scarborough, and Wilson, 2002). Barriers to entry in this industry might include the high cost of capital to start a competitive firm in the fast food industry concerning the case of Australia. The existing firms tend to have enormous influence on the market coverage because of their resources and vast capabilities to address the demands and expectations of the consumers effectively and efficiently in the modern context. From this illustration, Green Fast Food Restaurant will focus on utilization of its vast capital resources in the course of addressing the demands and expectations of the consumers; thus, the platform to venture into the market effectively and efficiently. Technical Feasibility Technology continues to shape the perception of the society members, consumers, and business practitioners. From this perspective, business entities focus on the utilization of technology to enhance interaction with the consumers. In this context, the consumers will have the ability to utilize technological advancements in the course evaluating the products and services from our organization. The company will focus on engaging a contractor in the development of the organizational website. The website will play a critical role in providing information relating to the products, services, and mechanisms of delivery of the products in agreement with the demands and expectations of the consumers. The website will adhere to diverse authenticity criteria such as authority, credibility, and ease of navigation for efficiency. The organization will focus on the utilization of diverse options in the course of producing the products and services. In the first instance, the company will focus on integrating in-house option in the preparation of products and services such as the healthy food products at the disposal of the consumers in the market. On the other hand, the company will utilize subcontract approach through increased engagement of the suppliers in the delivery of certain raw materials and equipment to facilitate production and delivery of products and services in agreement with the demands and expectations of the consumers. Sales and distribution are critical in satisfaction of the needs and demands of the consumers. From this perspective, it is valuable to adopt and implement flexible and agile sales and distribution approaches for effectiveness and efficiency in addressing the demands and eventual needs of our customers. For instance, the institution will focus on the utilization of in-house distribution approaches, as well as distributors and sales representatives to facilitate delivery of the products to respective locations at the disposal of the customers. These approaches will reduce the cost of operation while increasing the volume of profit levels at the end of each fiscal period. There are various resources for the technological development. This is through utilization of resources such as skills of the workforce, components, facilities, and suppliers, as well as equipment. The approach will be valuable in addressing the demands of the consumers. There are numerous regulations and laws, which will affect the operations of the new company. For instance, the company will adhere to the industrial standards and regulations regarding competition and provision of quality products to the consumers. The company will also apply for the personal certifications for the employees, especially the chefs to ensure that they engage in the provision of quality food products in agreement with the demands and expectations of the consumers. The company will also focus on adhering to the environmental regulations through adoption and integration of quality approaches, which will keep the environment clean and safe for numerous procurement aspects by out consumers or customers in the case of Melbourne. The new business will consider utilization of new technological elements, especially in the menu to enable consumers surf through our products and services before making informed orders on what to consumers and satisfy their needs. These technological advancements are valuable in the improvement of the image of the new corporation; thus, the platform to interact effectively and efficiently with the consumers. Human Resource Feasibility In the contemporary society, human resources tend to play a critical role in the course of improving the image and reputation of the firm. From this perspective, the new business will focus on valuing the employees through engaging them with honesty, loyalty, and integrity. Motivated and inspired employees are essential in the course of offering quality services and products in satisfaction of the needs and expectations of the customers. The development of the business entity will require minimum technical and management experience. The business will adopt a partnership ownership structure; thus, a platform for integration of 6 business partners in the generation of valuable capital to start up the business. The business owners will engage in the business as shareholders, but will delegate management duties to specifically qualified personnel for efficiency and effectiveness in the delivery of quality products and services. The new business will require employees in diverse sectors. For instance, there will be executive operators such as CEO, sales manager, financial officer, and supervisors. On the other hand, there will be staff members such as distributors or delivery agents, waiters, OTC service practitioners, chefs, and security personnel. These entities will focus on enabling the firm to execute its obligations effectively and appropriately. The practitioners will have adequate training and development programs to facilitate and enable their growth into quality members and contributors in pursuit of the goals and targets in the fast food industry. Finding the right employees will depend on the ability and potentiality of the new firm to integrate ideal recruitment, hiring, and selection strategies (Hebden, King, Grunseit, Kelly, and Chapman, 2011). The approach will culminate with the integration of effective training and development programs to ensure that employees adhere to the rules and expectations of the firm. The institution will consider compensating employees for their time spent with the firm during the day, thus, the need to pay the workforce per hour (Henderson et al., 2009). The motivation of the employees will incorporate diverse mechanisms such as teambuilding, the delegation of duties, and timely payments. The company will focus on the utilization of integrity, honesty, and loyalty as critical values in the course of motivating the employees in pursuit of their goals and targets concerning the purpose of the business. These mechanisms will enhance the image and reputation of the firm in the fast food industry in the case of Australia. Financial Feasibility In the course of starting up this new business entity, each partner will have the obligation to contribute $200,000 for the same amount of share, 16.67 percent. This will be essential in the course of covering the start-up requirements and cash cushion for the expansion over the first three operational years in pursuit of quality services and products in agreement with the demands and expectations of the consumers. The start-up expenses to fund will be $180,000 while the start-up assets to fund will be $450,000. From this perspective, the total funding for the start-up for the new business will be $630,000. Year 1 Year 2 Year 3 Sales $280,000 $560,000 $1,120,000 Direct Cost of Sales $60,000 $120,000 $240,000 Other Costs of Sales $0 $0 $0 From the above illustration, the new business entity will have the ability and potentiality to generate close to $900,000 in revenues, thus, the platform for maximization of the returns on investment. The institution will focus on the utilization of effective and efficient costs structure in the course of offering quality products at low prices, thus, targeting several consumers in the market and industry of operation. The low costs structure will be ideal for improving the image and reputation of the firm against other competitors in the case of Australia. From the aforementioned statement, the business entity will utilize the large financial pool of the partners to generate $1,200,000 as the investment amount to aid the execution of the business in agreement with the demands and expectations of the consumers. One time assets and start-up expenses will be about $400,000 inclusive of the hiring and training of the employees to facilitate the achievement of the goal and target. The institution will operate from one of the partners’ plant, hence; the obligation to carter for only equipment and raw materials for the production of the products and services (Honig and Karlsson, 2004). The institution will also invest $30,000 in research and development in the course of pursuing adequate information on the expectations of the consumers to determine the most appropriate platform to address and satisfy such needs. Similarly, the institution will consider investing $20,000 for marketing and advertisement for increased awareness of the consumers on the available products and services at their disposal. In the course of assessing the financial feasibility, it is advisable to examine the financial risks. One of the potential financial risks is the payback risk. The company will integrate effective mechanisms and approaches to ensure that the business can deliver on the expectations. The ability of the firm to generate a gross margin of 25 percent will be an indication of the positive implications of the venture in addressing the demands and expectations of the consumers. Moreover, the payback of the company will be in the first three operational yeas through the realization of the break even during the two financial periods. Categorically, with the financial prowess of the business partners, the new business venture is feasible, thus, the platform for the maximization of the image and reputation, as well as profits and revenues at the end of each financial year. List of References Block, J.P., Scribner, R.A. and DeSalvo, K.B., 2004. Fast food, race/ethnicity, and income: a geographic analysis. American journal of preventive medicine, 27(3), pp.211-217. Chen, X.P., Yao, X. and Kotha, S., 2009. Entrepreneur passion and preparedness in business plan presentations: a persuasion analysis of venture capitalists' funding decisions. Academy of Management Journal, 52(1), pp.199-214. Dunn, K.I., Mohr, P.B., Wilson, C.J. and Wittert, G.A., 2008. Beliefs about fast food in Australia: A qualitative analysis. Appetite, 51(2), pp.331-334. Gilbert, G.R., Veloutsou, C., Goode, M.M. and Moutinho, L., 2004. Measuring customer satisfaction in the fast food industry: a cross-national approach. Journal of Services Marketing, 18(5), pp.371-383. Hebden, L.A., King, L., Grunseit, A., Kelly, B. and Chapman, K., 2011. Advertising of fast food to children on Australian television: the impact of industry self-regulation. Med J Aust, 195(1), pp.20-4. Henderson, J., Coveney, J., Ward, P. and Taylor, A., 2009. Governing childhood obesity: Framing regulation of fast food advertising in the Australian print media. Social Science & Medicine, 69(9), pp.1402-1408. Honig, B. and Karlsson, T., 2004. Institutional forces and the written business plan. Journal of Management, 30(1), pp.29-48. Royle, T. and Towers, B. eds., 2004. Labour relations in the global fast-food industry. Routledge. Sahlman, W.A., 2008. How to write a great business plan. Harvard Business Press. Vilkhu, K., Mawson, R., Simons, L. and Bates, D., 2008. Applications and opportunities for ultrasound assisted extraction in the food industry—A review. Innovative Food Science & Emerging Technologies, 9(2), pp.161-169. Zimmerer, T., Scarborough, N.M. and Wilson, D., 2002. Essentials of entrepreneurship and small business management (pp. 1-3). Upper Saddle River, NJ: Prentice Hall. Appendix Start-up Expenditures and Expenses Worksheet Item Total Cost Cash Required Land ______$0____ __________ Capital Equipment ____$120,000 Computer ______$3,000 Beginning Inventory ____$100,000___ Start-up Supplies ________$80,000___ Licenses and Permits ______$5,000____ Leasehold Improvements _____$20,000_____ __________ Utility hookups & Installation ______$20,000____ Advertising (Preopening) _______$20,000_____ Insurance ______$30,000___ Other _______$50,000___ __________ _______________ __________ __________ Total Estimated One-Time Cash Requirements ____$448,000______ __________ Start-up Operating Expenses Estimate No. of Months Total Cash Item Monthly Expense X before Break even = Required Owners Salary __________$60,000 __________ __________ Employee’s salary, wages, benefits ____$20,000______ __________ __________ Rent __________ ____$0______ __________ Promotion expenses ______$10,000________ Supplies and postage ______$30,000__________ Vehicle Expenses _________$5,000______ Telephone __________ __$3,000_______ Travel __________ ___$0_______ Interest __________ $0_______ Maintenance ________$10,000______ Other __________ __$30,000________ ____________ __________ __________ __________ Total Cash Required Covering Operating Expenses __$178,000____ Plus: Total One-Time Cash Requirements (Previous Table) __$626,000___ Add 10% Safety Factor ____$4,000______ Total Cash Required for Start-up _____$630,000____ Read More