Entrepreneurship and New Business Development - Sam's Restaurant Case Study
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This report provides information about entrepreneurship and new business development, focusing on Sam's Restaurant, a new venture in the UK. It covers market analysis, competitor analysis, financial strategies, market offerings, sales and marketing plan, and more.
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ENREPRENEURSHIP
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EXECUTIVE SUMMARY This report delivers the information about the entrepreneurial ventures and new business development. Entrepreneurship is an activity of developing new business ideas and strategies in order to accomplish determined objectives. In the context of Sam’s Restaurant which is a new business delivering quality food services to its targeted customers in UK. It delivers food services at the doorsteps of the customers. This report covers the different market analysis, competitor’s analysis, financial strategies, the market offerings, sales and marketing plan and other to accomplish the determined set of objectives. The entrepreneurial business develops these strategies which helps to develops effective market offering and meet the market demand which further render business stability.
Table of Contents EXECUTIVE SUMMARY.............................................................................................................2 INTRODUCTION...........................................................................................................................4 MAIN BODY..................................................................................................................................4 Market analysis............................................................................................................................4 Market offerings description........................................................................................................5 USP and competitor analysis.......................................................................................................6 Operational plan...........................................................................................................................7 Risk and Contingency plans........................................................................................................9 Sales and marketing strategy.....................................................................................................10 Finance and funding plans.........................................................................................................11 Management team – justifying your ability to lead and manage this venture...........................11 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Entrepreneurshipisanactivitythatinvolvesmakingtheideaintonewbusiness developments. An Entrepreneur is a person who generates the idea of new business and strategize it for development of the new business(Berger and et.al., 2019). An entrepreneur generates some innovative ideas that are new in the market and easily attracts the attention of the segmentedcustomers.Entrepreneurshipstartsassmallbusinessstartsupwhichinvolves investments to finance the business function and later after ads the business grows the business’s financial capabilities tends to grows(Blundel, Lockett and Wang, 2017). This report is in the context of new entrepreneurial business called as “Sam’s restaurant”which is a new business startup based in London, UK. In accordance to the new business idea, the business strategies to sell vegan products and organic ingredients to deliver quality food to the customers. In context of Sam Food Restaurants this report covers the market analysis of the business, market offerings which it is going to deliver, USP and competitor analysis, the operational plan involved, risk and contingency plan, sales and marketing plan, financial plans and internal management strategies. MAIN BODY Market analysis Market analysis is important to defines the trends, market demand of the determined market in order to develop effective market offerings to the set of targeted market. In order to support the market analysis, Pestle analysis is being conducted to evaluate the market place and implement the set of effectives strategies. These are discussed below: P-Political factors:Sam’s Restaurant complies with all the legal policies and legislations by the UK government for operating the entrepreneurial businesses to run the business in the most ethical manner. BREXIT, has impacted with the business by increased taxes on raw materials, distribution challenges to the company(Bylund and McCaffrey, 2017). Due, to COVID-19 the business is unable to get hype in sales and profit figures. E-Economic factors:Due to BREXIT, the value of pound has decreased which have led to increased prices of acquiring ram material and operating business in UK. With COVID-19, pandemic the business is facing issues by fluctuation in the sales and profitability.
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S-Social factors:Sam’s Restaurant follows and fulfils the cultural and social values of its targeted customers. With high living standards in UK and healthy lifestyle patterns in UK, Sam’ Restaurant offers food products which are gluten free, chemical free, organic and 100% vegan in nature which further helps the business to develops the social image and goodwill in the market place. T-Technologicalfactors:Sam’sRestaurantuseslatesttechnologiesinordertobring efficiencies in business functions and stay updated as per the market demand. Technologies such as cloud based technology and customer relationship management software that helps the business to store all ate relevant consumer and business data(Frederick, O'Connorand Kuratko, 2018). Sam’s Restaurant also develops online website wherein; customers can order food online without the physically visiting to the outlets and the company delivers the ordered food at the doorsteps of the customers. L-Legal factors:Sam’s Restaurant complies with all the legal factors framed by the government of UK, which involves right from developing the products and services, marketing, financing, internal management and other business functions that in order to conduct the business function in the ethical and legal manner. E-Environmental factors:Sam’s Restaurant conducts the business function in manner that addresses the environmentalconcerns of the develops measures to protect the environmental concerns. These measures involve digital payments, recycling waste and of plastic bags and others to develop the corporate image of the business in the marketplace. Market offerings description Sam’s Restaurant develops the market offerings which involves food services to ten targeted customers. It delivers quality food services to the targeted customers wherein the business uses vegan products, gluten free, organic and chemical free ingredients in order to improve the food quality. It is multi cuisine startup restaurant that promises to deliver the quality food at best prices. The business uses paper cups and plates to serve the food to the customers that shows ecofriendly measures including in the market offerings delivers. The company comes up with own home made ice-cream and coffee, wherein the customers can experience the real and natural taste of the coffee and ice cream at the restaurant. Sam’s restaurant delivers all these offerings of the customers at affordable ranges(Maritzand Donovan, 2015). Customers from
different parts of UK, who want to avoid visiting to the physical outlets due to COVID-19. Sam’s restaurants deliver the food services to the customers as they can order to desired food from the online website of company and the restaurant delivers the food to the ordered customers at the doorsteps, which furthers helps the company to deliver services to the customers irrespective of the location and makes targeted customers access the services irrespective of the location they reside. Sam’s restaurant promises to deliver quality food services that fulfils the high loving standards and healthy lifestyle patterns of the people in UK. These marketing approaches helps the business to deliver best out of the offerings and grab the attention of the targeted customers that furthers helps the business to accomplish the targeted market share and profit goals. USP and competitor analysis The Unique Selling Proposition of Sam Restaurant is that they serve Vegan foods with gluten free, organic and chemical free ingredients. The main aim of the restaurant is to serve the best quality food to their customers so that they can gain loyalty of people towards brand.The Organization also offers homemade ice creams for their customers so that they can experience the sweet that is just like we eat at home. By offering vegan foods it makes restaurant different than its competitors as in UK more than restaurants serve non vegetarian meal to people. In UK, there are most of the people who love to eat Vegetarian food as comparison to non-vegetarian food. So by offering vegan meal they can target the people who like to have a vegetarian food in respect of Non-vegan food. The USP of Sam restaurant defines why their items are better and different from its competing alternatives. With the help of unique selling proposition, the restaurant makes clear differentiation of its products which helps in increasing profit and sales. Generally, people get attracted with the food which is different from other firms and serves best quality product at affordable price. There are various competitors of Sam restaurant in London which can create an impact on its performance, growth and profitability. Few Competitors are Village Eat Inn, Unity Diner, Beza, 222 Vegan Cuisine and many others(Lee, 2021). It is important to notice each steps and action taken by Competitors as it influences the decision making of business. For example, Beza and Sam restaurant are competitors offering same products to its customers, if Beza has implement a strategy by offering a discount on its food for limited time, it creates a huge impact
on Sam restaurant business so, they must also look out the strategy which helps in increases the sales and compete with Beza efficiently and effectively. The Strategy which Sam restaurant can use to compete with Beza could be offering one item for free on meal which is purchased by customers; this strategy attracts more and more number of people and influences them to have a food in restaurant. To remain competitive in Market, it is necessary to identify and analyze the strength and weakness of Competitors(Fenton, Gallagher and Heinze, 2019). Operational plan With the help of operational plan, Sam restaurant can make a plan by defining functions and activities of department that helps in contributing to achieve its goals and objectives. By operational plan, employees and managers can know about their roles and duties which they have to perform in restaurant.To create an operational planning, Sam restaurant have to follow the steps- Plot Operational Plan The Operational plan starts when an organization has any purpose to achieve. The restaurant must visualize the primary features of plan including staffing needs, required tasks goals and management process as it helps in maintaining and managing the business activities effectively and efficiently through which restaurant can achieve its desired goals(Fernando, 2019). Set Goals When restaurant has visualized its plan, they identify the goals which they want to achieve in future. The Goal of Sam restaurant is to increase customer base and gain competitive advantage in Market. The goals can be achieved by proper planning and making s strategy that stand out different from its competitors and can beat their products. Sam restaurant have to put more emphasis on their products quality and price which can make them unique from its competitors. By adding some innovative food items in their menu, restaurant can attract more customers which can increase the customer base. Plan Budget
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After identifying the goals, Sam restaurant have to plan the necessary budget for covering all the tasks and activities which am anger and employee will perform to achieve the goals. The Budget must include the activities which are required to promote the business and other expenses which incurred while conducting the business activities. Strategic budget Particulars1st year2nd year3rd year4th year5th year Initial money5500033900337002090020100 Investment15000220001570013000 Total5500048900357003660033100 Marketing expenditures Advertisement110007000660064006600 Sales promotion230021005400320091200 Direct marketing78006200320073003400 Total2110015200148001650018300 Available balance3390033700209002010014800
Appendix 1 emphasizes that in order to stay competitive in the industry, an organization must comprehend operating expenses. This contains employees pay, equipment and supplies, rent, and a number of other conditions. SAM Restaurant has a multitude of investments in which to generate cash. These would be trades that happen even with an app store and a websites in payment traffic from app sales. The total revenue for the first year is predicted to be 20,000 dollars, with sales of around 60,000 dollars. After the first year, a profit of about 40,000 was achieved. For the first year, the BEP is 596.49 units. If the business sells up to 596 dishes for the first year, the costs will be returned, so all the company’s network with failures must be eliminated. The cost - benefit analysis is set to unveil yearly revenue of 60,000 for the first year, but also a maturity date of 40,000 for transactions in the first year. Create System for reporting When restaurant map out the operational plan activities, they should create a system for reporting. With the help of reporting, the restaurant can find out whether the operational planning isworkingappropriately(Zevelevaandet.al.,2020).Thesystemforreportingallows departments to hold itself accountable to leadership, stakeholders and other department heads. Make Necessary adjustment It is important to make necessary adjustment if required which can improve the efficiency and productivity of restaurant. Risk and Contingency plans When an organization runs its business activities they face many risk and contingencies which they have to overcome. The risk which Sam restaurant can face are insufficient cash flows, Inadequate marketing, poor brand and reputation management, food storage, fire safety, Workplace injuries and Certification & Licensing(Halvorsen, 2018). Sam restaurant have taken aprecautionaryactiontoovercometheserisksasitaffectsthebusinessactivitiesand performance and also reduces its profitability. With the help of risk and Contingencies plan, restaurant can respond effectively to future situation and event that may or may not happen. Contingencies plan includes the necessary actions or steps which staff and managers must take in response to situation that could happen in future. The Contingencies plan includes the risk which must be identified, prioritize the risk,
develop the plan and maintain plan systematically. The restaurant must prepare for a possible risk that could affect the Organization, and then spend some resources and time to prepare for the situation which has high chance to occur(Lai and Wong, 2020). When risk is assessed then develop a contingency plan including the risk that could reduce the performance and productivity of business. After developing a contingency plan, the restaurant must maintain the plan by communicating the plan to staff members and describe their roles and responsibilities when crisis occurs. Sales and marketing strategy In orderdevelopseffectivemarketingstrategiesof thebusiness, Sam’srestaurant implements the required but effective marketing and sales strategies in order to accomplish the set of sales and profit objectives. Sam’s Restaurant bringing up the idea of digitalization wherein the business chooses the digital marketing tool in order to deliver the marketing objectives to targeted customers these involves social media marketing, email marketing, search engine optimization. Selecting digital media marketing for delivering its marketing message is the most effective strategies implemented by the company as digital media marketing involves low cost but helps to reach out the customers at larger pace which not only helps to establish the brand image in the marketplace but also helps the business to covers it sales and profit margin. These digital marketing tools adopted by Sam’s Restaurant is discussed below: Social media marketing With millions of UK’s population involves in the social media platforms thus, it tends to become and emerging and growing platforms to reach out the targeted customers. Alsowith the increasing technological advancement in UK, social media marketing leads to the attractive tools for marketing and promotion of the marketing offerings of the organisation. Social media platforms like Instagram and Facebook. The company uses these platforms in order to deliver the marketing message, wherein the company uploads timely pictures and videos of the products. The company also delivers shares story’s and reviews of the customers which influences the purchase behavior of the customers. Email marketing
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Email marketing is an effective tool that helps to deliver the marketing message of the business to the selected targeted customers. Sam’s Restaurant delivers the derailed message to its customers including the pricing strategies, new product development, the COVID-19 guidelines and other relevant information to the customers via emails(Martínez-Fierro, Biedma-Ferrer and Ruiz-Navarro, 2016). It also helps to collect feedbacks from the customers that helps to evaluate the effectiveness of the market offering delivered by the company. Finance and funding plans In order to operate the business activities in the most effective manner, it is important to finance the business activities. For a small business accompany like Sam’s Restaurant, it becomestochallengingforthebusinesstofinancethebusinessactivitieswhichinvolve identifying the cheapest sources of financing and then allocating them into the business utilities in order to maintain the flow of cash into the business(Mayer, Siegel and Wright, 2018). The finance plans developed by Sam’s Restaurant involves: Calculating the new worth Net worth of any business is determined total assets the business own deducting the liabilities ofthe business. Wherein, the business evaluates the total assets owned by the business including cash and other assets. Similarly, liabilities of the business are also calculated mortgage, loans and other outstanding expenses of the business. Thus, new worth helps the business to determine the profitability and financial stability in the market place. Determining the cash flow It is important to evaluate the cash flow of the business wherein, it involves the total cash inflow and outflow from the businessfunctionswhich helps Sam’s Restaurant to evaluate that what the operational and other revenues of the business that needs to emphasis and want are the sources that generates revenue to the business, keeping the check on the business cash flow is important to determine the new profit and loss of the business(Morris, 2015). Considering the priorities
It is important to determine the priorities of the business, which involves that where the business should actually spend the funds first, Sam’s Restaurant and sets the properties in accordance to the functions that needs to done priority like maintain the stock of raw materials, supply chain and other in other to reduce the inconvenience in the regular operational activities. Management team – justifying your ability to lead and manage this venture Sam’s Restaurant is being divided into segments that monitors that functioning of the business and implement the required strategies for each business unit. These management units are being divided on basis of the different functionalities of the business these are marketing department, research and development unit, finance and operational(Olanrewajuand et.al., 2020). These different business unit coordinates with each other in order to conduct the proper functioning of the business activities. Management of team is determined by scrutinising the performance and managing mission of the work as per the business objectives. These are discussed below in brief: Marketing unit The marketing business unit Sam’s Restaurant is responsible to promote and conduct marketing of the market offerings of the company. Wherein the business unit turns it to turn it to a business opportunity and engage with the targeted customers by delivering the marketing messages to the customers. Finance unit The role of finance department in Sam’s Restaurant is important in order to identify the sources of the finance and allocate them into the business activities in order to maintain flow of funds in the business and right mange different business function(Welterand Gartner eds., 2016). The finance manager in Sam’s Restaurant also develops the financial statements in order to determine the finical stability of the business. Research and development unit The role of research and development is to identify the recent market trends and demands which helps to adopt specific changes in the business as per the changing marketing demand and determine the strategies in accordance to external business opportunities.
Operational unit The operational business unit of Sam’s unit conducts the day to day operational of the business including the cooking unit wherein the business adopts the professional chef that meets the quality and the delicious food expectation of the business. The operational unit of the business communicates with other departments of the business regarding the total raw material required in order to conduct operational activities of the business. Managementofrawmaterials:Managementofrawmaterialsincludesmonitoringand controlling over the requirements are raw material in order to maintain and manage the supply and demand and conducting Business activities in the most efficient manner by up to utilization of the resources and minimizing the cost involved. Personal management:Personal management is that remind by managing The performances of the employees at work by providing them specialized training in guidance in order to derive the determined standards of working. CONCLUSION Thus, the above report delivers the defined information about entrepreneurial business which includes startups that comes with range of innovative ideas in order to achieve business success. These entrepreneur’s frames out different strategies to support the business ideas. This reportreflectedmarketanalysiswhereinPestleanalysiswasdiscussed,marketofferings description, competitor analysis, the operational plan which helps to business to conduct day to day activities, risk and contingency plan, sales and marketing plans wherein the concept of digitalization was involved, finance and funding plans and internal management strategies to coordinate the team and employees of the business.
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