Gloria Jones Business Analysis

RUNNING HEADER: GLORIA JONES BUSINESS ANALYSIS
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Gloria Jones Business Analysis
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Gloria Jones Business Analysis 2
Executive Summary
It is every wish for an entrepreneur to take charge of own self and start a business that will be a
route to independence. Gloria Jones always had this dream of having her own company. She
sought advice from her bank and was given the nod to pursue her dream as she had sufficient
saving from her job. However, she sought assistance to get informed advice on some of the
factors that she needs to consider.
The factors were on the basis of pricing, demographics, and location. Data were collected from a
sample of 2,000 individuals but only 400 responded. The ethical considerations had to be put
into consideration to ensure the study is pertinent to the rules of research.
The study found out that the potential patrons were ready to pay a worth for a meal that is higher
than $15. Moreover, there was a difference in the willingness to pay between males and females
as females were willing to spend more. However, Gloria should not anticipate all clients to
expend $200 monthly on average on food as they were ready to devote $150 on food monthly on
average. The zip code areas of 10, 11, and 12 provided the best location for the café as the
spending expectations were high. Subsequently, the prospect of patronizing the café differed
between people with dissimilar income levels. Finally, it was found out that the average people
devoted to food monthly could be described by the price on average people were prepared to pay
for meals, age, and gender.

Gloria Jones Business Analysis 3
Introduction
The following study aims to analyze some of the factors that should be considered before
establishing a start-up company. Gloria Jones is motivated by her dream to have her own café
one day. However, starting up a company comes with a myriad of challenges either personal or
financial (Stevenson & Jarillo, 2007).
Starting up a company is such a challenge. An individual who takes this path needs to be highly
motivated, with the will to accept work days which involve long hours and should be resilient
enough to bounce back from shortfalls which almost certainly occur (Davidson & Wiklund,
2007). Most people who are driven into such ventures need to keep in mind that they are starting
a company from ground level and building it (Sharma & Chrisma, 2007). Regardless of the
excitement of the risks versus the reward tradeoff, the startup ‘CEO’ needs to be proficient in all
aspects of the operations of the company which includes product development, marketing, and
finance.
The following study aims at tackling some of the issues and factors which Gloria Jones needs to
consider before setting up own café. Though she has a substantial capital from her savings from
her restaurant supply she is curious to get informed. To make the inform Gloria Jones about the
decisions she needs to make, the following research questions were developed:
Research questions
1. How much are potential patrons willing to pay for a meal? Is $15 a reasonable price? Is there a
difference in the willingness to pay between males and females?
2. Can Gloria expect all patrons to spend an average of $200 a month on food?

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3. Which zip code area(s) provide the best location for the café? Does the expected average
monthly spend differ between potential patrons residing in different zip codes?
4. Does the likelihood to patronize the café differ between people with different income levels?
5. Can the average amount people spend on food each month be explained by the average price
people are willing to pay for meals, age, and gender?
Research Design
According to Bryman & Bell (2007), a research design is used in providing a framework that is
used in data analysis and data collection. There are three types of research designs which
include descriptive design, correlational design, experimental design and causal-comparative
design (Cresswell & Cresswell, 2017). The following study used a descriptive design, a
correlational design, and a causal-comparative design to test the various hypotheses.
A descriptive research design will be used to define the various characteristics of a variable.
They include the mean, standard deviation, the median and the mode (Shuttleworth, 2008). A
correlation design was also adapted to determine whether or not two or more variables are
correlated. On the other hand, a causal-comparative design is used to focus on the analysis of a a
specific problem so as to explain the pattern of relationship between variables.
When carrying out any research, it is paramount to gather the pertinent data which suits the
research design and the methodology. Data collection can either be primary or secondary.
According to Saunders (2011), primary data collection entails different methods such as
observation, survey, and focus groups. The following research made us of primary data. Data
were collected using questionnaires.