Entrepreneurship and Innovation in Business

Entrepreneurship and Innovation Student’s Name: Teacher’s Name: University: Date: 1.0 Executive Summary 4 2.0 Introduction 5 3.0 Business Venture Description 5 4.0 Management 6 4.1 Operational Management 6 4.2 Legal Structure 6 5.0 Marketing 8 5.1 Target Market 8 5.2 Strategy for Communication 9 6.0 Competitor Analysis 9 6.1 Competitive Rivalry 9 6.2 Threat of New Entrant 10 7.0 Financial Analysis 10 8.0 Risk and Challenges 12 8.1 Foodborne Illness 12 8.2 Injuries in the workplace 12 Reference List 13 Appendices 15

Entrepreneurship and Innovation
Student’s Name:
Teacher’s Name:
University:
Date:

Table of Contents
1.0 Executive Summary...................................................................................................................4
2.0 Introduction................................................................................................................................5
3.0 Business Venture Description....................................................................................................5
4.0 Management..............................................................................................................................6
4.1 Operational Management.......................................................................................................6
4.2 Legal Structure.......................................................................................................................6
5.0 Marketing...................................................................................................................................8
5.1 Target Market........................................................................................................................8
5.2 Strategy for Communication..................................................................................................9
6.0 Competitor Analysis..................................................................................................................9
6.1 Competitive Rivalry...............................................................................................................9
6.2 Threat of New Entrant.........................................................................................................10
7.0 Financial Analysis...................................................................................................................10
8.0 Risk and Challenges................................................................................................................12
8.1 Foodborne Illness.................................................................................................................12
8.2 Injuries in the workplace.....................................................................................................12
Reference List................................................................................................................................13
Appendices....................................................................................................................................15
Appendix A................................................................................................................................15
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1.0 Executive Summary
The finest and delicious of all the food in Australia can be found in one place, which is Pier One
Sydney Harbor. It simply promotes living with breathtaking views. One of the most effective
parts of the hotel is that it is built over water and creates a unique living experience. The hotel
provides a unique view for the guests, who will be staying in the premium hotel. However, the
effective use of an in-built catering system into the property of the hotel will bring in innovation
and entrepreneur growth.
In respect of the growing competition in the Hospitality sector, most of the large companies are
trying to improvise with the rational implementation of quality entrepreneurship skills and
innovative designs. The catering market in Australia is growing rationally and opens up a new
direction for the growth of Pier One Sydney Harbor. In respect of the present bar system,
restaurants and different events, the hotel tends to improvise and enter the catering market, with
a service for providing food to different cities. The catering service will follow the structure of a
private limited company and rational improvement can be attained shortly. The company will
target the market of Australia and the USA and will use social media and the hotel service to
improve communication. The level of competition in the catering service is quite large in
Australia. The venture will be financed with the effective use of angel investor and
crowdfunding. The return of capital is effectively better than the industry average, which makes
it a lucrative venture.
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2.0 Introduction
Effective use of innovation and proper entrepreneur skills helps in the growth of a company. Pier
One Sydney Harbor is one of the finest hotels that attract domestic and international people into
the most iconic hotel over the water in Australia. The following report tends to take into
consideration of implementing the new design into the hotel and expand its catering service
around the city to attract more customers and increase the overall revenue of the company. This
report will help the early stage in the venture for the business and attract the investors who are
potential in nature for seed funding. A business plan will be produced to the investors so that
they get a better understanding of the venture, analysis of the financial aspect, the challenges and
risk that are associated with the venture, the structure of the management and the relevant
competitors of the company. Getting a proper understanding of the factors that affect the growth
of the business, will attract more investors for the venture.
3.0 Business Venture Description
It has been determined that the Australian food market is growing at a tremendous rate. The food
industry consists of various sectors, but the most promising and rapidly growing sector is the
catering sector. It has been determined that the demand for the catering service has significantly
increased over the last decade and intends to reach a new height by 2023. The writer has
effectively chosen the catering service as associated with a brand name such as Pier One Sydney
Harbor will boost the overall sales and improve its profitability in a significant manner. The
popularity of online catering has increased rationally as it has been accelerating at a growth rate
of 6 per cent each year. The growth rate for catering service has reached over $ 185 billion,
which creates a new opportunity for investment (Powell, Ryan and Lamb, 2017).
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The trend in the market shows an upward trend and the new catering service will bring in a new
opportunity for the Hotel to serve its exceptional quality food to various cities, which were out of
their reach. The catering service is an example of innovation as it will also take into
consideration of online food catering service and improve the reach of the customers to the
diversified cuisines, which the company has to offer (Calderón et al., 2018). The catering service
will also be added to the hotel as a new department so that the service can add more effectiveness
to the profitability of the hotel. Expanding into various cities, will improve the revenue structure
of the company and satisfy the customer structure of the Hotel in Australia. The service will be
named as ‘Pier One Catering service’ to maintain the brand name to the new extension of
service.
4.0 Management
4.1 Operational Management
The company will be operated by a new managing director, who will be selected from the Pier
One Sydney Harbor Hotel. The company will have an initial shareholder, which will be the Pier
One Sydney Harbor Hotel so that it can be managed and operated fluidly. The company will also
hire a manager for overlooking the operation and service. The company will hire the employees
on a contract basis, which will be renewed every year. The operation management intends to hire
experienced people from the food industry to have a competitive advantage (Annarelli and
Nonino, 2016).
4.2 Legal Structure
The legal structure is one of the most important aspects for a new venture as it will help in
tackling the problems and complexities that are a part of the organization. It has been determined
that the legal department of a company will effectively tackle the various factors and issues
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related to tax and legal problems that may arise in future for the company. The capital
requirement will be evaluated based on the legal structure that has been chosen for the company.
The structure takes into account of the employed staff, the investors or the partners of the
company and the cost that is associated in the initial stage of setting up the company Haigh, N.,
(Kennedy and Walker, 2015). The company will be a private company as it limits the liability of
the business with respect to the owner. Due to the flexible nature, the company will be able to
enter into a new potential partnership with new companies or increase the overall capital
requirement of the company.
Cost of Pty Ltd Reporting Requirements Registration
AUD $ 490 for registering the
company
Tax return is to be logged
every year to the ATO
Registration with the ASIC
AUD $ 90 for the Business name
registration
None Australian Business Registration
Number for the catering service
Goods and service tax
registration, when the turnover
for a year is above 75,000
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Table. 1: Reporting and the Cost requirement for the company
5.0 Marketing
5.1 Target Market
The market that will be targeted by the catering service is one of the most effective factors,
which derives the overall success and improvement in the performance. The company will target
the market of Asian countries such as India, Malaysia and Thailand. On the other hand, the
company will further target the European market, by targeting the UK, France, and Italy.
However, at the initial stage, the company will target the market of the USA and Australia. The
individuals who are working at an organization and are related to business, are the most
important aspect for the company. Furthermore, events such as charity, wedding, birthday are the
target market for the catering service. It has been determined further that the travelers will also
be a target for the catering service. The age group that will be targeted will range from 16 to 51
for the service (Turner, 2018).
Country Market size
India 48 Million Dollars
USA 63 Billion Dollars
Australia 3.5 Billion Dollar
UK 8.2 billion Dollar
Table. 2: Target Market
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5.2 Strategy for Communication
A strategic communication is important for capturing the target market in an effective manner.
This will help in better and effective relation with the targeted group of individuals. The
communication will be done with the help of the social media and through the hotel itself to
improve the level of interaction with the people. Various factors such as AdWords will be used
to improve the filtration of the search that are done in respect of catering service. The catering
service will provide free catering to the one who are staying at the Pier One Sydney Harbor hotel
(McAlexander, Koenig and DuFault, 2016).
6.0 Competitor Analysis
To understand and analyze the competitors for the catering service, the most effective factors,
which are competitors rivalry and the threat of new entry has been taken into consideration for
the analysis (Serrat, 2017). An effective understanding of the other forces is stated in appendix
A.
6.1 Competitive Rivalry
It has been determined that the growth of the catering service has attracted a lot of new
companies and has increased level competition. The most efficient catering service in Australia
is Fabulous Catering, Big Flavors, Catering Home affairs, Jora and Lasa. Effective competition
is expected in respect of the mentioned companies as they have been dominating the catering
market of Australia. The company also have indirect competitors, which mainly comprises of the
online catering services. This indirect competitors also holds a large portion of the market in the
catering service of Australia. The companies mainly comprise of Zomato, Uber eats and other
online applications (Singal, 2015).
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6.2 Threat of New Entrant
The food industry is one of the most efficient sectors, which has a large level of competition
among the companies for gaining more competitive advantage and improve the market share. It
has been determined that numerous new companies are entering the catering service market and
implements the low-cost model. This affects the overall profitability of the company as it needs
to provide the service at a lower cost to sustain in the competitive market, which directly affects
the performance of the company. This factor acts as a major threat to the overall business model
of the catering service in Australia (Porter, 2008).
7.0 Financial Analysis
The financing of a company is very important and it has various factors, which can be chosen
effectively. The venture can be financed by IPO, venture capital, equity, debt, angel investing
and the use of crowdfunding (Belleflamme, Lambert and Schwienbacher, 2014). The catering
service venture will need funding in the form of seed funding and it will be divided into two
parts for the company. At first, it will require 1,000,000 dollars and on the second phase, it will
need 4,000,000 dollars. The funding will be done with the use of crowdfunding and angel
investor respectively. The number of investors can be more with the use of the stated two
methods and improves the overall performance as there is less control over the business
(Williams and Dobelman, 2017).
6 Months of phase one Cost (Amount)
Cost for the operation (Building, legal,
Accounting and administration)
$ 1,000,000.00
TOTAL $ 1,000,000.00
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Table. 3: Crowdfunding
12 Months of phase one Cost (Amount)
Cost for the operation (Building, legal,
Accounting and administration)
$ 2,000,000.00
Equipment 1,000,000.00
Marketing 1,000,000.00
TOTAL $ 4,000,000.00
Table. 4: Angel Investors
In phase one as stated in table 3, the capital that will be required by the catering service will be
used for the initial operational cost. This operation cost will be related to administration,
accounting, legal and building that will be used for the business. On the other hand, in the second
phase of the venture, the capital will be used for operation cost, implementing marketing of the
product and buy equipment for setting up the venture in a rational manner.
It has been determined that the investment that is being made into the catering service is
5,000,000.00 and the expected profit of the company for the first year has been determined to the
1,000,000, which stated that the Return on Investment or ROI is relatively 20 per cent of the
invested capital. Typically, the catering service industry provides 10 to 12 per cent of return to
the investors, in respect of their invested capital. However, the company with its reputed brand
name is able to provide more margin for the profit to the investors in comparison to its
competitors (Phillips, 2012).
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8.0 Risk and Challenges
It has been determined that in every form of business, there are some effective risk and
challenges that limit their overall growth. The major risk and challenges of the catering service
company are the workplace injury, liability for liquor, foodborne illness and accidents from the
vehicle. However, only two of the risk will be analyzed effectively, which are illness from
foodborne and injuries that occur in the workplace. (Garayoa et al., 2017).
8.1 Foodborne Illness
It has been determined that there is a major risk for individuals to suffer from food illness as
many times the storing and the cooking is not done expertly. Lack of hygiene among the
employees further affects the company and adds a bad reputation in the name of the company. In
the last couple of years, it has been noted that due to the effective growth in the catering service,
there has been a rational increase in the degradation of the food quality in the overall industry
(Cleide et al., 2015).
8.2 Injuries in the workplace
The companies in catering industries use people on a part-time basis and hire people who are
new to the industry, this adds a chance for injuries at the job and add liability for the company.
Even after taking safety measures, the increasing rush in the catering service leads to a large
number of injury at the workplace. The increase in the injuries can lead to an overall decrease in
credibility of the company as it will not be considered as a safe place to work (Célérier and
Vallée, 2017).
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Reference List
Annarelli, A. and Nonino, F., 2016. Strategic and operational management of organizational
resilience: Current state of research and future directions. Omega, 62, pp.1-18.
Belleflamme, P., Lambert, T. and Schwienbacher, A., 2014. Crowdfunding: Tapping the right
crowd. Journal of business venturing, 29(5), pp.585-609.
Calderón, L.A., Herrero, M., Laca, A. and Díaz, M., 2018. Environmental impact of a traditional
cooked dish at four different manufacturing scales: from ready meal industry and catering
company to traditional restaurant and homemade. The International Journal of Life Cycle
Assessment, 23(4), pp.811-823.
Célérier, C. and Vallée, B., 2017. Catering to investors through security design: Headline rate
and complexity. The Quarterly Journal of Economics, 132(3), pp.1469-1508.
Cleide, O.D.A., Nauta, M.J., Schaffner, D.W., Dalgaard, P., Christensen, B.B. and Hansen, T.B.,
2015. Risk assessment of Salmonella in Danish meatballs produced in the catering
sector. International journal of food microbiology, 196, pp.109-125.
Garayoa, R., Abundancia, C., Díez-Leturia, M. and Vitas, A.I., 2017. Essential tools for food
safety surveillance in catering services: On-site inspections and control of high risk cross-
contamination surfaces. Food Control, 75, pp.48-54.
Haigh, N., Kennedy, E.D. and Walker, J., 2015. Hybrid organizations as shape-shifters: Altering
legal structure for strategic gain. California Management Review, 57(3), pp.59-82.
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McAlexander, J.H., Koenig, H.F. and DuFault, B., 2016. Millennials and boomers: Increasing
alumni affinity and intent to give by target market segmentation. International Journal of
Nonprofit and Voluntary Sector Marketing, 21(2), pp.82-95.
MindTools, 2019. Porter’s five forces. Understanding competitive forces to maximize
profitability. [Online] available at: https://www.mindtools.com/pages/article/newTMC_08.htm
[Accessed On: 24th September, 2019]
Phillips, J.J., 2012. Return on investment in training and performance improvement programs.
Routledge.
Porter, M.E., 2008. The five competitive forces that shape strategy. Harvard business
review, 86(1), pp.25-40.
Powell, R., Ryan, M. and Lamb, S., 2017. The impact of the mining boom on the dining industry
in Western Australia. Australasian Journal of Regional Studies, The, 23(2), p.243.
Serrat, O., 2017. The SCAMPER technique. In Knowledge Solutions (pp. 311-314). Springer,
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Singal, M., 2015. How is the hospitality and tourism industry different? An empirical test of
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Turner, F.E., 2018. The effect of different visual variables and images on the reaction of a
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Williams, E.E. and Dobelman, J.A., 2017. Financial statement analysis. World Scientific Book
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Appendices
Appendix A
Figure. 1: Porter’s Five Force
(Source: MindTools, 2019)
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