Business Structure and Management - Hunger Planet

Running Head: Business Plan
1
Hunger Planet
Sydney, Australia
Prepared by:

Business Plan
2
Contents
Business overview............................................................................................................3
Products/ services.............................................................................................................4
Market analysis.................................................................................................................4
Competition......................................................................................................................5
Marketing strategy............................................................................................................6
Business structure and management.................................................................................8
Finances............................................................................................................................8
Action plan........................................................................................................................9
References.......................................................................................................................12
Appendix.........................................................................................................................14

Business Plan
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Business overview:
The business name would be “hunger planet”. Hungry planet is the fast food
restaurant in Sydney Australia. This would offer fast food such as burger, pizza, French fries,
onion rings, fried chicken, fish, chips, pitas, sandwiches, hamburgers, tacos, ice cream, hot
dogs etc. this cafe is offering the home delivery services also to its customers. A fixed limit
has been set by the company on delivering the foods at doorstep. This company is operating
its business from last 1 year in the market. Many ups and downs have been faced by the
company in the market.
This company is operating its business under the restaurant industry of Australia. This
company has grabbed more than expected market. The taste of this restaurant makes it
different from the other restaurants in the market. The main competitive advantages of this
restaurant are its taste and the cheaper price. Main competitors of this company are
McDonalds, Pizza hut, subway and various other local restaurants which are also trying to
grab the market through offering them various varieties and opening their outlets at various
places in the Australia. But this restaurant has been opened near a university where no other
restaurant is situated as of now and the prices and services are also in the budget of the
college students. That is the main reason behind the success of this restaurant1.
According to the historical data, present condition and future prediction; it has been
investigated that this business will achieve the great heights in near future. The revenue and
the profitability of the company would be thrice than current profit in next 3 hours. After 3
years, there would be 2 more branches of this restaurant in Sydney itself and the market
shares would be grabbed by the company more than any other competitors in the market.
Currently, the situation of the company depict about the better financial and marketing
performance2.
1 D, Elmuti, & Y, Kathawala, “An overview of strategic alliances”, Management
Decision, vol, 39, no, 3, pp, 205-217, 2011.
2 K, Dopfer, Evolutionary economics: program and scope (Vol, 74), Springer Science &
Business Media, 2012.

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Products/ services:
This Hunger planet restaurant is offering various fast food to its customers such as
burger, pizza, French fries, onion rings, fried chicken, fish, chips, pitas, sandwiches,
hamburgers, tacos, ice cream, hot dogs etc. further, home delivery services are also offered
by this company to its clients. Though some terms and conditions have been implemented on
the services such as the clients are required to place an order more than AUD 15 to grab the
services of free home delivery3.
The branding of the restaurant is linked with its name, logo, slogan etc. The Hunger
planet has done branding of itself in such a manner that the name and slogan has been learnt
by every customers and nearby people easily. This business has branded and positioned itself
in such a manner that this name is recognized by everyone and due to this; the turnover of the
company has also been enhanced.
Various products have been offered by the restaurant and it is planning to introduce
and launch various other products under its special category. Regards with it, various new
services such as music, gaming zone etc. would also be offered by the company to enhance
the satisfaction level of its customers. The main competitive advantages of this restaurant are
its taste and the cheaper price which is making this company more competitive. This
company is directly dealing with the suppliers and taking the raw material from them which
affects the price of the company’s product and enhance the revenue of the company4.
The pricing of the direct material has been lower as the material is directly taken from
the suppliers, the labour of the company are 5 in numbers as the owner is chef itself and he
only need labour to do chores. Other overheads of the company are indirect material, delivery
charges, wastage etc.
3 J. Du, and S. Girma, Source of finance, growth and firm size: evidence from China (No,
2009,03), Research paper/UNU-WIDER, 2009.
4 M,J, Dotson, and E,M, Hyatt, Major influence factors in children's consumer socialization,
Journal of Consumer Marketing, 22(1), pp,35-42, 2005.

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Market analysis:
The business plan is related to a fast food restaurant and it has been opened in front of
a college to attract the student to buy the products. So mainly, the products of this restaurant
would be purchased by the university student and the youth who are residing near to that
area. The restaurant is situated at Sydney in Australia. This company is offering its services
into the local market and predicting that in near future, the market would be expanded to the
state level5.
Currently, the state of the restaurant market is on growing stage and according to the
various analyses; the market of restaurant would never reached on the decline stage. The
restaurant market is an ever green market whether there is boom in the market or recession in
the market; people will never stop to have food. Further, according to the industry data and
market prediction, it has been found that as the restaurant has been opened in front of an
university so at the time of vacations, the sales of the restaurant would be affected as there
would be less people to buy food from that outlet6.
This would hardly impact over the price and market trends as the market trend of the
restaurant industry depicts that there are not any season and trend which impact over the
turnover of the industry. This company has used the penetration pricing strategy and
according to that the price of the restaurant is quite lower right now which is lower according
to the target market and thus people are attracting more towards this restaurant.
Competition:
Further, the competetors of the business has been analyzed. The main competitors of
the business are McDonalds, Pizza hut, subway and various other local restaurants which are
also trying to grab the market through offering them various varieties and opening their
5 E, Dean, & K, Yunus,”An overview of strategic alliances”, Management Decision, Vol, 39
Iss 3 pp, 205 – 218, 2001.
6 B, Mcleish, Successful Marketing Strategies for Nonprofit Organizations: Winning in the
Age of the Elusive Donor, New York: John Wiley & Sons, 2010.

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outlets at various places in the Australia. These competitors are already existed players from
last few decades and also offering the same product and the prices of these outlets are also
competitive.
The business could offer the best quality and taste to position its product against the
product of these competitors and the various new services could also help the company to
manage and achieve the competition level of the company. The main feature of this restaurant
would be its gaming zone and the various other facilities such as nice seating area, library,
massage facilities and relaxation areas. This would offer a competitive edge to this restaurant
from its competitors. The main pros of these products and services would be less price of the
products, instant food for the customers, relaxation time for the customers; various healthy
options which would help the customer to maintain their health7.
The comparative study has been done over the policies and strategy of pricing,
promotion and distribution. The study of pricing depict that the Hunger Planet and other
competitive of the company, all are having the competitive price and the company has just
planned to reduce the price by taking the material directly from the suppliers and by reducing
the level of scrap8. The company is using the print and Radio advertisement and local news
channel to promote its products whereas the other competitors of the company are using the
international level promotional tactics to promote their product and further, it has been found
that the distribution policies of Hunger planet and the other competitors are also same, they
all are delivering the products according to the demand of the customer.
Marketing strategy:
Further, marketing strategy of the company has also been analyzed which would help
the business to enhance its market share and grab the new market. The Hunger planet would
take the help of print and Radio advertisement and local news channel to promote its products
7 D, Elmuti, & Y, Kathawala,“An overview of strategic alliances”, Management
Decision, vol, 39, no, 3, pp, 205-217, 2009.
8 C, FIRER et al Fundamentals of Corporate Finance, 5th Edition,Berkshire,McGraw-Hill
Companies, Inc, 2012.

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and further, various activities would also been done by the company such as some activity in
a shopping mall to promote the products of the company. Business would take the help of
print advertisement more to promote its product and for print advertisement; company would
print an advertisement in the local newspaper of the company and would distribute the
template of the business to the people9.
The business would register itself on various apps from where the customers could
directly order the products and a website has also been created by the company for making it
easier for the customers to identify anything about the company, the website of the company
is hungerplanett.com.
The company would spend around $ 150 in first month and then $ 210 and $ 2016 in
next 2 months on print media, radio media, TV media and online sources. This cost of the
company is a kind of investment which would help the company to enhance its turnover.
Company is also planning to launch and introduce various new products and services for its
customers and these products would be launched by the business through launching an
event10.
The measurement of the marketing strategy of the company could be analyzed
through evaluating the sales of the company with other local restaurants and through
evaluating the budgeted and actual result of the company. Various other tools and techniques
are also available through which it would be easy for the company to manage and enhance
the level of the success11. The benefit of promotional strategies could be analyzed through
9 H, Kaufmann, Customer-Centric Marketing Strategies: Tools for Building Organizational
Performance: Tools for Building Organizational Performance, United States: IGI Global,
2009.
10 S,C, Jain, and G,T, Haley, Marketing planning and strategy, Cincinnati South-Western
Publishing Company 1985, 2009.
11 S, Fournier, and L, Lee, Getting brand communities right, Harvard business review, 87(4),
pp,105-111, 2009.

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comparing the last 6 months sales before launching the promotional activities to the after 6
month sales.
Lastly, under the head of marketing strategy of the company, pricing strategy of the
company has been analyzed. The company is following the penetration pricing strategy to
analyze the price of a product. Through this analysis, it has been found that the sales could be
enhanced by the restaurant through providing various offers such as 10% discount on
birthdays, 5% cash back on the bill above $ 50 etc.
Business structure and management:
This business is a sole proprietorship. Sole proprietorship business has been chose as
single person runs this business. And huge investment is not required for this business, so this
business structure has been opted. The main advantage of this business is that decision is
made by the owner only and the main drawback of this business is funding issues. For
starting the restaurant, any specific patent and trademarks are not required. The address of the
business is at Sydney in Australia whereas the web address of the company is
Hungerplanet.com. Any other intellectual property is also not required to start a restaurant.
The owner is just required to take a place and some machinery on lease to start the business.
Any other legal formalities are not involved with this business. The key staff of this
restaurant is the chef and as the owner is itself a chef so it becomes easy to maintain the
activity of the company12.
The exit strategy of the company is just to sell out the set up business to already
existing players or the one who is willing to enter into the industry and exit.
Finances:
Further, the finance analysis has been done over the business plan and it has been
found that the firm would required to raise and manage the funds from the friends, bank loan
and through mortgaging as the organizational structure is sole proprietorship so shareholders
12 PA, Gaughan, Mergers, Acquisitions, and Corporate Restructurings, John Wiley & Sons,
2010.

Business Plan
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cannot help the restaurant to raise the funds13. Through the analysis, it has been estimated that
the total revenue of the company is 5500 and the total expenses of the restaurant would be
1800. Further, it has been calculated that the monthly net profit of the company would be $
1670, $ 2035 and $ 2940 respectively. The start up cost of the company would be $ 1800.
The salary offered by the company to its employees would be $ 100, $ 125 and $ 156.25 in
Sep, Oct and Nov respectively14.
Further, the fixed over head of the company has been analyzed. The fixed cost of the
company is $ 625 which is related to various expenses such as advertisement. Accoutring to
the calculation and estimations over the financial figures of this restaurant, it has been found
that the total 8 units must be sold by the company to reach over a breakeven point as the
Fixed Expenses of the company is lower than the variable cost of the company. According to
the evaluations, it has been analyzed further that the company would achieve high growth in
the market and the profitability of the company would also enhance15.
13 H, Dallas, “Strategic Management; competitiveness and globalization”, Strategic
management, Asia-Pacific 4th ed, pp 434-440, 2011.
14 D, Lacalle, Credit‐rating agencies, Life in the Financial Markets: How they really work and
why they matter to you, pp,95-98, 2017.
15 S, Fulin, Preface by SHANG Fulin, Corporate Governance of Listed Companies in China,
9-10, 2011.

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Action plan:
Key
Objectives Task By Whom By
When
Establishment
Register the name of
the business
Owner Aug
17
Research over the
market
Owner Aug-
2017
Finalize
premises
- Rental agreement
- Official Set up
- manage the furniture
-manage the extra
required material
Owner
and Labour
Aug
-2017
Legal
Contracts Finalize contract Owner Sept
-207
Rent contract Owner Sept
- 2017
Finance
Determine fixed
overheads
- hire an accountant
- make the budgeting
plan16
Owner Sept
-2017
Determine
financial objectives
Main objective of the
company is to enhance the
profit
Owner Oct -
2017
16 D,W, Cravens, and N, Piercy, Strategic marketing (Vol, 7), New York: McGraw-Hill, 2006.

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Finalize the
cash flow plan
- evaluate the P&L a/c
with managers
- cash flow plan
Accountan
t
Oct -
2017
Finalize initial
finance
Evaluate the finance
documents17
Owner Oct -
2017
Marketing
Determine
marketing objectives
Enhance and manage
the sales
Owner Sept
-2017
Determine
launch plan
Blue print of the plan Expert Sept
-2017
Create a
brochure
Agree conception Owner Sept
-2017
Print Owner Sept
-2017
dispense brochure Owner Sept
-2017
17 Blundell, R, and Dias, M.C, Alternative approaches to evaluation in empirical
microeconomics, Journal of Human Resources, 44(3), pp,565-640, 2009.

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References:
Blundell, R, and Dias, M.C, Alternative approaches to evaluation in empirical
microeconomics, Journal of Human Resources, 44(3), pp,565-640, 2009.
Cravens, D,W, and Piercy, N, Strategic marketing (Vol, 7), New York: McGraw-Hill, 2006.
Dallas, H, “Strategic Management; competitiveness and globalization”, Strategic
management, Asia-Pacific 4th ed, pp 434-440, 2011.
Dean, E, & Yunus, K, ”An overview of strategic alliances”, Management Decision, Vol, 39
Iss 3 pp, 205 – 218, 2001.
Dopfer, K, ed,, Evolutionary economics: program and scope (Vol, 74), Springer Science &
Business Media, 2012.
Dotson, M,J, and Hyatt, E,M, Major influence factors in children's consumer socialization,
Journal of Consumer Marketing, 22(1), pp,35-42, 2005.
Du, J. and Girma, S., Source of finance, growth and firm size: evidence from China (No,
2009,03), Research paper/UNU-WIDER, 2009.
Elmuti, D, & Kathawala, Y,“An overview of strategic alliances”, Management Decision, vol,
39, no, 3, pp, 205-217, 2009.
Elmuti, D, & Kathawala, Y, “An overview of strategic alliances”, Management Decision, vol,
39, no, 3, pp, 205-217, 2011.
FIRER, C, et al, Fundamentals of Corporate Finance, 5th Edition,Berkshire,McGraw-Hill
Companies, Inc, 2012.
Fournier, S, and Lee, L, Getting brand communities right, Harvard business review, 87(4),
pp,105-111, 2009.
Fulin, S, Preface by SHANG Fulin, Corporate Governance of Listed Companies in China, 9-
10, 2011.

Business Plan
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Gaughan, PA, Mergers, Acquisitions, and Corporate Restructurings, John Wiley & Sons,
2010.
Jain, S,C, and Haley, G,T, Marketing planning and strategy, Cincinnati South-Western
Publishing Company 1985, 2009.
Kaufmann, H, Customer-Centric Marketing Strategies: Tools for Building Organizational
Performance: Tools for Building Organizational Performance, United States: IGI Global,
2009.
Lacalle, D, Credit‐rating agencies, Life in the Financial Markets: How they really work and
why they matter to you, pp,95-98, 2017.
Mcleish, B, Successful Marketing Strategies for Nonprofit Organizations: Winning in the Age
of the Elusive Donor, New York: John Wiley & Sons, 2010.

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Appendix:
Competitor analysis:
Compet
itor
Date
Established
S
ize
Marke
t share (%)
Value to
customers
Stren
gths
Weakne
sses
McDonal
d
1971 A
UD 15
billion
12% Prices and
various outlets
Price
and service
Huge
competition
KFC 1991
A
UD 10
billion
10% Quality
and price
Taste
and price
Less
focus on
quantity
Pizza
Hut 1995
A
UD
12.5
billion
11% Taste and
price
Variou
s options
and quality
Huge
competition
Subway 1997
A
UD 8
billion
8% Quality
and quantity
Variou
s options
and price
Less
focus on
quality
SWOT Analysis:
Strengths Weaknesses
 New services such as
library and relaxation
area
 Strong product offering
 Best place
 High technology
 Best taste
 Seasonal Work
 Students are the only
customer
 Growth rate is lower
 No expert help

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Opportunities Strategies using
strengths to address
opportunities
Strategies to reverse
weaknesses to address
opportunities
 Menu innovation
 Low interest rate
 Diversification strategy
 Take the help of expert
 Invest more maount into
the company
 Must diversify the market
at other places
 Hire an expert
 Better financial
management
Threats Strategies to counter
threats with strengths
Strategies to fix
vulnerabilities
 Competition
 Established players
 suppliers
 New products and the
services
 Unique products
 Direct contact with
suppliers
 Hire an expert
 Better financial
management
 Better management
strategies
Risk identification and strategy:
Potential Risk Strategies to Minimize Impact
Financial risk Manage the funds of the company
Raise the funds from better
sources
Hire an expert to manage the
funds
Marketing Risk Huge competition in the market

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Better promotional strategies
The promotion tactics must be
chosen through analyzing every aspect
Legal risk
Must take permits to start the
business.
Establishment risk Blue print of the business plan
Better implement of the strategies
Health and safety Better policies must be there
related to the health of the employees.
Negligence against customers Better policies must be there
related to the health of the customers.