MGMT720 Applied Management

Running head: MGMT720 APPLIED MANAGEMENT
MGMT720 APPLIED MANAGEMENT
TOUR701 APPLIED TOURISM MANAGEMENT PROJECT
HOSP701 APPLIED HOSPITALITY MANAGEMENT PROJECT
STUDENT NAME:
ID: #

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MGMT720 APPLIED MANAGEMENT
Executive Summary
This report has aimed at carrying out a business of foods on truck or foods-truck, for
which the entire business plan has been carried out. The first section reflected the objectives of
this business plan, where the target market and other aspects of carrying out a business plan have
also been provided.
The second part of the assignment is based on the market research for the company. The
following section discussed PESTLE analysis of the company that highlights the six major
factors for a company. With the PESTLE analysis, the company will be able to identify the
market threats and opportunities. Along with this, Porter’s five forces has been done to identify
market threats and customer behaviour. Both primary and secondary research has been done
using survey and analysis of printed and online article to identify the market trends and the
potential of the new business.
In the third section, the data obtained from NZ statistics reflect that the respective business has a
great opportunity to carry out the proposed business targeting the Indian people, who majorly
reside in Auckland.

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MGMT720 APPLIED MANAGEMENT
Table of Contents
1. Business Profile...........................................................................................................................7
1.1 Business Activity...................................................................................................................7
1.2 Products/Services...................................................................................................................7
1.3 Type of opportunity.............................................................................................................10
1.4 Uniqueness...........................................................................................................................11
1.5 Growth Potential..................................................................................................................11
1.6 Vision, Mission, objectives..................................................................................................12
2. Research.....................................................................................................................................13
2.1 Environmental Scanning......................................................................................................13
2.1.1 Mega Environment.......................................................................................................13
2.1.2 Industry Environment...................................................................................................17
2.2 Primary research..................................................................................................................20
2.2.1 Trade Survey.................................................................................................................20
2.2.2 Customer Survey..........................................................................................................23
2.2.3 Observation...................................................................................................................27
2.3 Secondary Research.............................................................................................................28
2.3.1 Online...........................................................................................................................28
2.3.2 Printed...........................................................................................................................29
3. Cultural issues............................................................................................................................30
3.1 Issues identified...................................................................................................................30
3.2 Implications.........................................................................................................................30
4. Operations..................................................................................................................................31
4.1 Business location.................................................................................................................31

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MGMT720 APPLIED MANAGEMENT
4.2 Product/Service Process.......................................................................................................33
4.3 Resource Requirements.......................................................................................................36
4.4 Suppliers..............................................................................................................................37
5. Marketing...................................................................................................................................38
5.1 Target Market......................................................................................................................38
5.2 Market Size..........................................................................................................................39
5.3 Market Trends......................................................................................................................40
5.4 Competition.........................................................................................................................40
5.5 P/S Positioning.....................................................................................................................40
5.6 P/S Design...........................................................................................................................40
5.7 Pricing..................................................................................................................................40
5.8 Pricing Strategy...................................................................................................................40
5.9 Distribution Strategy............................................................................................................40
5.10 Media Strategy...................................................................................................................40
6. Organisation...............................................................................................................................40
6.1 Staff Requirements..............................................................................................................40
6.2 Job Descriptions...................................................................................................................40
6.3 Business Partners.................................................................................................................40
6.4 Legal Form of Ownership....................................................................................................40
6.5 Licences and Permits...........................................................................................................40
7. Financials...................................................................................................................................40
7.1 Financial forecasts...............................................................................................................40
7.1.1 Sales (COGS)................................................................................................................40
7.1.2 Capacity Analysis.........................................................................................................40
7.1.3 Inventory Schedule and Management..........................................................................40

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MGMT720 APPLIED MANAGEMENT
7.1.4 Cash Flow.....................................................................................................................40
7.1.5 Depreciation..................................................................................................................41
7.1.6 Income Statement.........................................................................................................41
7.1.7 Balance Sheet................................................................................................................41
7.2 Financial Ratios...................................................................................................................41
7.2.1 Return on Capital..........................................................................................................41
7.2.2 Gross Profit...................................................................................................................41
7.2.3 Net Profit......................................................................................................................41
7.2.4 Current Ratio................................................................................................................41
7.2.5 Liquidity Ratio..............................................................................................................41
7.2.6 Equity Ratio..................................................................................................................41
7.2.7 Debt Ratio.....................................................................................................................41
7.2.8 Return on Total Assets..................................................................................................41
7.2.9 Interest Cover................................................................................................................41
7.2.10 Breakeven Analysis....................................................................................................41
8. MIS............................................................................................................................................41
8.1 Type of Info Required.........................................................................................................41
8.2 Type of Info Available.........................................................................................................41
9. Critical Risks.............................................................................................................................41
9.1 Potential problems...............................................................................................................41
9.2 Probability of Occurrence....................................................................................................41
9.3 Management of Problems....................................................................................................42
10. Start-up Schedule.....................................................................................................................42
11. Conclusion...............................................................................................................................42
12. Recommendations....................................................................................................................42

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MGMT720 APPLIED MANAGEMENT
References......................................................................................................................................43
1. Business Profile
1.1 Business Activity
The Food Truck industry has become a phenomenon and further gained popularity across
the world (Mokhtar et al., 2018). The proposed business is based on the "Food Truck" business,
which is not a new type of business in NZ but a new concept is aligned to its menu. Food trucks
are one of the examples of SMEs (Small Medium Enterprises) that SMEs are a large part of the
NZ economy (Fahlevi et al., 2019). This proposed business is aiming to provide “Indian food and
beverage items” to the people of Auckland, specifically the Indian people. These food and
beverage items are Toasted Bread, Bhaji Bread, Indian Style Bread Omelette, Indian Tea, some
other traditional dishes of India. This business would be carried out on a truck, which would be
kept on rent, although the rest of the investments would be made by the business owner. This
proposed business sounds competitive enough as the food truck businesses in Auckland are
limited to provide one type of food such as kebab, chips, burger and many others. Based on this
fact, Indian people in this region would surely be missing their casual cultural foods; this missed
opportunity by the existing Auckland food truck businesses would now be grabbed by the current
proposed business, "Indian Tea and Snacks Food Truck". The role of the food truck has been
expanding for being a part of food tourism in NZ, which gives motivation to this proposed
business to conduct a food truck business in Auckland.
Objectives are as follows:
 To gain Auckland people's attention and interest in this business
 To target the Indian people
 To grab the Millennial attention towards its products
 To grab the attention of bachelor, employees and those, who are in a hurry
 To list the product’s price as per the economic condition of Auckland
 To provide healthy, delicious and less time-consuming breakfast and supper to the
targeted audience

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MGMT720 APPLIED MANAGEMENT
1.2 Products/Services
The products delivered by the service, "Snack and Beverage on Wheel", are driven by the
Indian style that follows a causal culture of India, which is quite famous in India and its
neighbouring countries like NZ. The products to be delivered are “Indian-Style bread omelette,
Bhaji Bread, Indian Tea, Toasted Bread, and other Indian culturally-driven snacks”. For
example, the following table would be the blueprint of the products to be delivered to the
respective region people:
Items Size Weight Features Material
composition
Benefits
Bhaji Bread 9 pieces
packet
27gm Fast-food
dish, four
rows of bread
or Pav, easy-
to-make
snack, can be
eaten solely
or with Mixed
vegetable
Instant yeast
(rapid rise
yeast),
Lukewarm
water, flour
and sugar
Low calorie
Indian Tea 1 Litre = 4.22
cups; 1 cup =
2.5gm
2gm Tasty,
healthy,
sugar-free,
Tulsi Tea,
herbal tea
with Indian
herbal
ingredients
Tea leaves,
heat, water,
milk (if
needed), sugar
(if it is liked),
herbals such
as Tulsi,
Ajwain,
elaichi, and
other Indian
herbs
Relief from
cold, cough
and headache
No calorie
gain
Toasted
bread
2 round of
toast = 2
50gm Golden
brown, light
Whole grain,
organic, butter
Low calorie

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MGMT720 APPLIED MANAGEMENT
slices brown, dry
texture,
crunchy,
delicious,
caramel-y
flavour and
long-lasting
and wheat
flour; protein,
fibre,
carbohydrates,
dietary fibre
and a low
composition
of fat
Indian-Style
omelette
8 inches or 20
cm
100gm Various types
of omelette,
savoury
omelette,
tasty, healthy
and fluffy
Egg, oil, salt,
spices,
vegetables,
heat; rest
depends on its
type
Easy-to-cook,
easy-to-
digest, good
for health,
regulates
cholesterol
Table 1: Products’ characteristics
Figure 1: Bhaji Bread
(Source: Google.com)