Business Plan Report

This report provides a detailed analysis of a business plan for a new restaurant in London, UK. It includes an evaluation of the external environment, competitors, and market segmentation. The report also discusses the use of PEST analysis and Porter's generic model to enhance competitive advantage.

Business plan report

Table of Contents
INTRODUCTION...........................................................................................................................1
Business plan...................................................................................................................................1
Overview view of proposed business idea.............................................................................1
An evaluation of the external environment (PEST)...............................................................2
Evaluation of competitors and competitive advantage...........................................................4
Market segment of business idea............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business plan is a detailed written document the provide description about main features
and components of a business that includes its nature of business, sales and there strategy. Use of
business plan report is essential for launch of a new venture as it provide better analysis and
evaluation of external business environment and also yield information about competition level
and suitable strategy (Louhaichi, 2018). This assignment is based on a launch of a new restaurant
in UK and includes various aspects associated with this. An overview of this new project is
provided in this report together with evaluation of external environment and other strategies
formed to face competition and ensure adequate level of success.
Business plan
Overview view of proposed business idea
In today’s world, the profit margin and growth opportunity are highly increasing in
service sector thus, the new business idea is associated with launch of a new restaurant in
London, UK. It has been evaluated that a tough competition is a prevailing in the hospitality
industry thus, it is necessary to come up with some new ideas and unique products. Thus, the
launched restaurant will be a vegan restaurant providing foods prepared with fresh vegetables,
fruits and other natural necessary ingredients (Policy, 2018). A western style starters, and snacks
together with various types of sandwiches, hotdogs, burgers, shakes, coffee, etc will also
provided by this restaurant at an adequate level of price.
Brand name- The proposed name for new restaurant is, “ Buzz time London Restaurant”
which will be located at London, UK.
Tag line- The tag line of this restaurant will be, “ Have a heart and serve food with
integrity.”
Mission
The mission of Buzz time London restaurant is, “ To provide bets quality food at most
reasonable price tighter with a quick service and most clean and attractive surroundings.”
Vision
The vision of this new restaurant is, “ To become most profitable and successful
restaurant through serving best food items and services to customers”.
List of product and services offered by the new restaurant
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The products that will be provided by the Buzz Time London restaurant will include a
main meal, desserts and drinks that will consists of some vegan food items made of fruits and
vegetables together with snacks and fast food items like Hotdog, Burgers and other shakes,
coffee, drinks and ice creams (Rothenbach, 2018). The service that will be provided by Buzz
Time London restaurant will include the waiter services, Chinese banquet services together with
packaging and online delivery service to its local customers.
Reasons for unique product and service
Various product like vegan food items is a unique product that will be offered by the
Buzz time London restaurant as these items are made up of fresh fruits and vegetables only thus,
suitable fir diabetic and other health conscious customers. Further, the online delivery and
packaging services that will be offered by this restaurant is also unique and attract larger
customers as it enhance their convince and satisfaction level.
Same business in local market- There are large number of restaurants in London that
includes Bincho restaurant, Club Gascon, China Tang, The Cube and many other similar
restaurant (Frankova, 2018). Thus, it become essential for Buzz time London restaurant to come
up with some new and most unique features and product to face competition from existing
restaurants in London.
An evaluation of the external environment (PEST)
While launching any new business venture it is necessary to conduct PEST analysis to get
better understanding and evaluation of external factors present in the macro environment of a
business.
Explanation about PEST analysis
It is commonly used strategic business tool that is used by an organisation to evaluate,
discover and analysis various factors of business environment. Use of PEST analysis is important
at the time of launch of a new venture as it makes an organisation aware about current and
prevailing opportunity and threats that makes it easy and viable to form better strategies and
plans for success of business (Louhaichi, 2018).
Application of PEST
A large number of opportunity and threats are pervading in the business environment of
UK that is offering many suitable reasons and opportunities for launch and success of Buzz Time
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restaurant. A description about these threats and opportunities prevailing in the external
environment of Buzz time London restaurant are provided below:
Political factor- It represent the nature and attitude of political parties towards a business
venture and represent the degree and level of government intervention in operations of business
organisation. The consistent and stable political conditions of UK are facilitating an opportunity
for Buzz Time London Restaurant as consistent regulation and policies makes it easy to come
with a new idea and also ensures sustainability in the markets of London (Dhraief, 2018). But the
recent issue of Brexit can lead to a negative influence and threat for Buzz Time London
Restaurant and could adversely impact its productivity and profit margin.
Economical factors- These are the factors that directly impact and affects the
profitability level of an organisation. It includes various aspects like interest rates, economic
growth, inflation rate, exchange rate, population, disposable income, taxation policy, etc. The
economic conditions of UK are well developed and having constant interest rate and taxation
policy is offer opportunity for Buzz time restaurant. But the recent issue of Brexit has enhanced
the problem of labour turnover and thus, makes workforce and employees a little expensive that
will definitely enhance the cost of operation, thus lead to reduction in profit margin of Buzz time
London restaurant.
Social factors- This factor of external environment reflects the socio- cultural aspects of
an area and involve the shared beliefs and attitudes of society on which the taste and preference
of customers relies. In UK the number of health issues are increasing especially in old ones thus,
introduction of vegan food items which are prepared only through fresh fruits and vegetables is
creating an opportunity for Buzz Time London restaurant. Further, a bend and attraction towards
fast food and snacks is also seen in young individuals of UK thus, offering of snacks and other
fast food will also be beneficial for Buzz time London Restaurant on the basis of social factors
(Sheffield, 2019). The negative impact associated with social factor is related with the fact that
the needs and expectation of society and customer is highly dynamic thus, regular market
analysis and research become essential that can be quite expensive for a new venture.
Technological factors- It represent the level of technological landscape and new
advancement in technology that is taking at random phase. UK is having a rich technology and
regular advancement that has created many opportunities for business venture in for of e-
commerce and online facilities. Thus, the technical factor of UK has created a positive impact for
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Buzz time London Restaurant through facilitating feature of online delivery with easy use of its
online website. But at the same time random changes in technology environment also lead to a
pressure on Buzz time London restaurant as it become necessary to spent an adequate amount of
money to adopt and make use of new technology in order to maintain its competitive strength
and viability that is expensive for a new venture, thus technological factor also lead to a threat of
high implementation cost (Policy, 2018).
Evaluation of competitors and competitive advantage
A large number of competitors are there in hospitality industry especially in field of
restaurant thus, it become necessary for Buzz time London restaurant to come with some
extreme and unique features and characteristics to attract larger number of customers. The main
competitors if Buzz time London restaurant includes Bincho restaurant, Club Gascon, China
Tang, The Cube and many other similar restaurant. Therefore, use of Porter’s generic model is
made which has provided four strategies that can be adopted by an organisation to have more
competitive strength and advantage in business environment. A description and evaluation of
these strategies are provided below in context of Buzz time London restaurant (Porter's Generic
Competitive Strategies (ways of competing, 2016).
Cost leadership- This includes offering of product at most reasonable price through
reducing operation and production cost in order to attract large number of customers. Cost
leadership can be achieved by an organisation through reducing and eliminating all unnecessary
wastage to improve the efficiency of operation (Xu, 2020). Use of this strategy is most suitable
for a new venture as it attract larger number of customers. This strategy will help Buzz time
London restaurant to increase its market share by charging lower prices, while still making and
maintaining a reasonable profit on each product sold.
Differentiation strategy- This concept of porter’s generic models consists of making
products or services different, more attractive and unique than those of other competitors to
attract larger number of customers. For making use of Differentiation strategy regular market
analysis and research are required by Buzz time London restaurant to have better understanding
about taste and preference of customers. This, strategy support better innovation an enhance
creativity in Buzz Time London Restaurant that attract larger number of customer through
yielding better competitive strength (Lieberman, 2019).
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Focus strategy- It is bifurcated into two categories i.e. cost focus and differentiation focus
where in both cases a niche or small market is targeted by an organisation to earn higher profit.
Cost focus aim at providing products at lower price to cater local market while use of
Differentiation focus is associated with producing a new and unique product in niche market.
This strategy of focus can be adopted by Buzz time to attract and get better position in local
market of London.
Out of the above strategy, use of differentiation strategy has been adopted by Buzz time
London Restaurant to enhance its competitive strength as many unique Vegan food items and
new drinks and shake are offered by this organisation. Further, the adequate level of price that is
set for its product is also enhancing its strength and will attract larger number of customer for
this organisation.
Market segment of business idea
To ensure long term success and enhance profitability level it is necessary to target a
correct and suitable market and customers base. Thus, use of STP model is made by Buzz Time
London restaurant to firm effective strategies about its segmentation, targeting and positioning,
discussion of which is provided below:
Segmentation
It is a process of bifurcating and dividing a market into small groups and chunks so that a
suitable target market and group of customers can be selected according to needs and desires of
which the product will be delivered (Götz, 2020). Buzz time London Restaurant is making use of
demographic segmentation to divide its market on the basis of their age group and financial
aspects.
Targeting
It reflects a process of targeting a most suitable and profitable chunk or section of market
that is most likely to satisfy by delivered product. Buzz time restaurant aims at targeting old
individuals which are mostly left out by many restaurants through offering vegan food items that
are sugar free and prepared by use of only fresh fruit and healthy vegetables. Further, to attract
young individuals some fast foods, snacks and drinks are also provided by Buzz time London
restaurant.
Positioning
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It is process that aim at creating better image and improved physical existence of an
organisation (O’Dowd, 2018). For better positioning and marketing of its brand use of digital and
social media will be made by Buzz time London restaurant.
CONCLUSION
On the basis of above assignment it can be concluded that business plan report is an
important document for all organisation that includes information about the mission and vision
of an organisation together with various strategies that can be adopted by a company to ensure its
success and viability. It can be summarised that use of PEST analysis is made to evaluate
external environment that facilitates better understanding about prevailing opportunity and
threats. Further use of Porter’s generic model is made to enhance competitive strength and STP
model provides better strategies and process for making effective targeting and positioning.
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REFERENCES
Books and journal
Louhaichi, M., 2018. Survey design, data management and analysis, and business plan
development training report.
Policy, A., 2018. Corporate Policy & Resources Committee Work Plan Purpose. Policy. 19. p.07.
Rothenbach, J., 2018. Business plan for a frozen food wholesaler (Doctoral dissertation,
California State University, Northridge).
Frankova, H., 2018. Will the CQC's new business plan bring greater efficiency?. Nursing And
Residential Care. 20(7). pp.336-338.
Dhraief, M. Z., 2018. Business plan and feasibility analysis of an On-farm solar powered milk
cooling system.
Sheffield, A. J., 2019. Improving Access to Health: A Business Plan Approach to Creating a
Sustainable Nurse-Led Community Clinic. Nursing Economics. 37(6). pp.306-316.
Xu, X., 2020. Compose the Business Plan. In Introduction to Entrepreneurship (pp. 139-163).
Springer, Singapore.
Lieberman, G., 2019. A Start-Up Business Plan as a Scholarly Project (Doctoral dissertation).
Götz, J., 2020. Business Plan. In Seasonal Affective Disorder and Light Therapy (pp. 165-203).
Springer, Wiesbaden.
O’Dowd, A., 2018. Child obesity plan must include legal action on junk food advertising and
discounts, say MPs.
Online:
Porter's Generic Competitive Strategies (ways of competing). 2016. [Online] Available
Through:< https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-
strategies/ >.
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