Business Plan for The Stef Kitchen

This business plan focuses on analyzing the external environment, competitive situations, and suggestions for the target market of The Stef Kitchen, a vegan restaurant.

BUSINESS PLAN
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of business idea..........................................................................................................3
Evaluation of external environment using PEST analysis..........................................................4
POLITICAL FACTORS:............................................................................................................4
ECONOMICAL FACTORS:......................................................................................................4
SOCIAL FACTORS:..................................................................................................................5
TECHNOLOGICAL FACTOR:.................................................................................................5
Discuss competition and their competitive advantage in business.............................................5
Suggestions for proposed target market......................................................................................7
CONCLUSION................................................................................................................................8
REFERNCES...................................................................................................................................9
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INTRODUCTION
In this growing and developing phase where people are focused on earning more in order
to satisfied their needs and desires. The living standards of people are increasing and people don't
want to remain dependent on others. Hence young people are coming up with new and
innovative ideas and setting their own business (Barrow, Barrow and Brown, 2018). They are
able to run their business in most effective manner with the use of latest technology and able to
achieve their set goals and objectives. This trend in the market place has major contribution in
growth an development of economy as leading to generation of employment opportunities. This
report is based on business plan where focus is on analysing external environment, competitive
situations and suggestions for target market.
MAIN BODY
Overview of business idea
A business idea is an opinion through which owners of business can gain financial
benefits by offering products and services which are valuable and good for attracting numerous
customers through which business can gain competitive advantage.
The new business idea used in this project report is about launching a new restaurant
“The Stef kitchen” which will provide vegan food items to customers and promote healthy
lifestyle in marketplace. The location of restaurant is Riverview Building, North Bank, London,
UK (DeNoble and Zoller, 2017).
As we know vegan diet is a plant based diet and it involves no exploitation and is cruelty
free. The menu which we will provide will be based on fruits, vegetables, legumes, nuts, seeds,
dairy alternatives, vegetable oils, breads, rice and pasta. Through providing vegan food products,
we will aim to attract customers who are health conscious and we will aim to reduce heart
disease related risk by providing variety of vegan foods which are low in cholesterol level. This
plant based diet will help us to create awareness about healthy lifestyle and encourage customers
to opt for better options through which customers can enhance their living standards. Due to
rapidly changing trends, it can be analysed that nowadays people are opting food varieties which
are healthier rather than eating junk food or food which is bad for health. Through providing
vegan food products, we aim to target health conscious people, young and old generation people
through attractive advertisement and maintaining the quality of all food variety which will help
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in building image and maintaining loyal customers with business. We will provide variety of
vegan products through attractive presentation and will also maintain social media platforms
through which wide number of customers can be attracted globally. By handling social media
platforms several benefits of vegan diet will be promoted and will encourage people to analyse
these advantages and opt for food products which are healthy and plant based. Our restaurant
will provide an opportunity for young and talented people who can make delicious food options
through which overall productivity of business can be enhanced (Ekanem, 2017).
Evaluation of external environment using PEST analysis
For analysing impact of external factors on operations of business, we used PEST
analysis through which opportunities can be used and threats which can influence can be
reduced. PESTEL analysis is used to understand and study the external factors effecting the
business organisation. External factors can also be termed as Macro Environmental factors. It
also helps an organisation to find its weaknesses and threats by which organisational productivity
can be enhanced (Genadinik, 2019). The initials of PESTEL stands for Political, Economical,
Social, Technological, Environmental and legal factors which influence operations of
management.
POLITICAL FACTORS:
This factor depends on how much government intervention is been faced by the
organisation Some of political factors which affect business environment are political stability,
trade restrictions and others. Government intervention in economy including changes in tax
policies, labour law, foreign trade policies, environmental laws, and etc. An organisation needs
to adapt with the future and the current changes in political factor in order to sustain in the
market. The political factors has direct impact on the growth and development of The Stef
Kitchen. The political stability is important for running business in effective and efficient
manner.
ECONOMICAL FACTORS:
Economic factors create a significant impact on how an organisation works, on their
profitability and on their successful growth in industry. Economical Factor includes- inflation ,
deflation , economic growth , interest rates , etc. The factor are further broken down to Macro
And Micro, where Government uses interest rate control strategies, taxation policies as there
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main fundamental. Micro economy depends on how a consumer is willing to distribute or spend
their income in the market. These factors has impact on The Stef Kitchen as with increase in
disposable income of the customers the business would able to make high profits where
economic factors play major role (Hanák and Grežo, 2020).
SOCIAL FACTORS:
Social factors are also known as socio-cultural factor. In this an organisation needs to
observe beliefs, values and opinions of population. Economic factors include population growth,
age discrimination, gender, career choices and others. Such responsible factors affects the market
and business environment directly. The Stef kitchen have major impact due to social factors that
is according to the preferences of customers they should make changes and addition in its current
offerings.
TECHNOLOGICAL FACTOR:
Technology factors plays an important role in the market, a business needs to be up to
date with the latest technology in order to sustain in the market It affects the market in three
aspects-
 New techniques of producing goods and services.
 New measures of distributing goods and services .
 New strategies for communicating with the targeted market.
The Stef kitchen need to focus on latest technology and should use it in order to gain comeptitive
advantage and to attract more customers (Hopp and et.al., 2018).
Discuss competition and their competitive advantage in business
For analysing competitors and competitive rivalry several measures are taken for
monitoring external factors which can affect our business environment. The strategic approach
through which analysis of competition and how these factors create competitive advantage for
business is performed with help of Porter Five Forces. Porter's Five forces model helps to
evaluate organization's competitive environment. This technique was given by Michael E. Porter
in his book “Competitive Strategy” in 1980. It directs organization in making business strategy.
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This model helps to analyse these forces: new entities entered in the market, threat of product
substitution, potential of buyers and suppliers.
With the help of Porter five force analysis, several factors which affect external business
environment of The Stef Kitchen are observed and are mentioned below:
 Competition in the industry: Competitive rivalry is one of the aspect of porter five
forces which refers to the competitors in the market. In case of less competition in the
market, a business can increase the prices of their products and services to target massive
sale and profit. Competitive rivalry in vegan industry is increasing as due to rapidly
changing preferences of customers in marketplace. There are several business which are
promoting healthy diet and attract health conscious customer, the business must focus on
providing quality products through attractive advertisement which can retain customers
(Mariani, Bartoloni and Morelli, 2019).
 Potential of new entrants in the industry: A existing organization can have threats
from new entries into the industry which can arise due to cost, technological protection,
scale of economy, specialist knowledge and other responsible factors. The Stef Kitchen
must use several strategies through which they can analyse new entities which can affect
the sale, profit of organisation. Through analysing the changing market trends and
through using strategic approaches of analysing new entrants will help business to
minimise risk within time and gain competitive advantage.
 Power of buyers: Consumer buying potential holds a valuable impact, as power of an
organization depends upon its consumers and their buying habits. The power of buyers is
one of the basic source of business to enhance their sale and earn more profit from their
operations. The Stef Kitchen must scan the business environment and use strategic
approaches through which they can analyse the consumer trends and their preferences.
Through conducting an effective research it can help management to analyse the buying
potential of consumers and meet the demand (Masciocchi, 2019).
 Power of suppliers: Supplier power denotes how suppliers increase the price. The
factors that must be noted by suppliers can be the price of the goods and how much
unique their goods are from other businesses so that the consumer don't switch to other
brands. The Stef kitchen must use strategic supply chain management as it can help
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business in analysing the demand and meeting the market demand through effective
distribution of products and services.
 Threat of product substitution: Substitution of product and services can create a threat
to the existing organization as an easy substitution can easily reduce organization profit
and can diminish their goodwill in the market. The Stef Kitchen must analyse the external
environment through which they can monitor the threat of substitution of products and
provide different and better quality products to retain customers and maintain brand
image in market (Susanto, Gaol and Kom, 2018).
Suggestions for proposed target market
Some of the suggestions through which numerous customers can be targeted and
organisation can gain competitive advantage, are given below:
 Through increasing awareness about vegan food- One of the basic strategy that must
be adopted by The Stef Kitchen is to create and increase awareness about vegan food
products by providing all information and telling benefits of this food variety through
which living standards can also be enhanced. By telling customers and delivering right
message about benefits of this plant based diet will help business in creating brand image
in market and maintain loyal customers. This will also help in creating awareness related
to health benefits.
 By using google ads for vegan searches- Through using google ads it is one of the
approach through which The Stef Kitchen can attract numerous customers and promote
their business and products which are provided by them. The business must use attractive
advertisement through which customers can be attracted.
 By investing in local search listing- By listing business on google and other search
engines and through promoting business through listing in local searches will help The
Stef Kitchen in attracting local customers through which competitive advantage can be
gained and maximum profits can be earned (Tipu, 2019).
 Through collaboration with event planners- By collaborating with event planners and
providing space for conducting workshops can help business in creating awareness about
vegan food and their benefits to health. This will also help in increasing engagement and
attract more customers through which more profit can be earned and competitive
advantage can be gained by business.
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 Marketing through vegan influencers- The Stef Kitchen must promote vegan food and
their benefits with the help of vegan influencers as people who follow these influencers
can be attracted which will help in business growth and promotions. Such influencers
who promote vegan products can help business to create awareness about advantages to
heath and thus healthy lifestyle can be promoted. This can also help in increasing
engagement through attractive advertisement ideas and promotional activities.
 Promote fitness and healthy lifestyle social media platforms- The Stef Kitchen must
form plans and strategies of promoting fitness and healthy lifestyle witch the help of
social media, as this will help in attracting m,ore customers and will also help to increase
awareness about vegan food and their benefits. The cruelty free world can also be
promoted through which many environmental and animal friendly ideas can be promoted.
By using social media platforms, business must aim to create awareness about vegan food
and their benefits for individual health (Xu, 2020).
CONCLUSION
A business plan is an idea of starting a new business through which organisation can earn
profit and gain maximum advantage from their operations. The business plan of vegan products
help management in increasing awareness about benefits of plant based diet through which
healthy lifestyle can be promoted and more number of customers can be encouraged for eating
healthy foods and avoid eating junk foods through which health benefits can be monitored. There
are several factors which affect the business environment, some of the external factors are
analysed through which business can monitor opportunities and threats through which
competitive advantage can be gained.
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REFERNCES
Books and journals
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-by-step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
DeNoble, A. F. and Zoller, T. D., 2017. Is the business plan really dead and should it be?: a case
for the lean start-up approach. In The Great Debates in Entrepreneurship. Emerald
Publishing Limited.
Ekanem, I., 2017. Writing a business plan: a practical guide. Taylor & Francis.
Genadinik, A., 2019. Business plan template and example: how to write a business plan:
Business planning made simple. Alex Genadinik.
Hanák, R. and Grežo, M., 2020. The effect of entrepreneurial experience on the quality of a
business plan proposal in applying for angel investment. International Journal of
Entrepreneurial Venturing. 12(6). pp.617-647.
Hopp, C and et.al., 2018. Revisiting the influence of institutional forces on the written business
plan: a replication study. Management Review Quarterly. 68(4). pp.361-398.
Mariani, G., Bartoloni, L. and Morelli, D., 2019. Managing uncertainty in the start-up
environment: is a business plan an incentive or a limitation?. Managing uncertainty in
the start-up environment: is a business plan an incentive or a limitation?, pp.73-96.
Masciocchi, B., 2019. How to make a business plan. In Studies in Surface Science and
Catalysis (Vol. 179, pp. 465-484). Elsevier.
Susanto, B., Gaol, F. L. and Kom, M., 2018. Web-based catering marketplace business plan:
Cateringku. com. Issues and Trends in Interdisciplinary Behaviour and Social Science,
Jakarta, Taylor & Francis Group. pp.41-55.
Tipu, S. A. A., 2019. Business plan competitions in developed and emerging economies: What
do we still need to know?. Journal of entrepreneurship in emerging economies.
Xu, X., 2020. Compose the Business Plan. In Introduction to Entrepreneurship (pp. 139-163).
Springer, Singapore.
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