Business Plan for Rainbow Roof-top in Sri-Lanka

This business plan focuses on launching Rainbow Roof-top, a food and beverage center in Sri-Lanka. The plan includes a brief profile of the proposed business idea, core competencies, external environmental analysis, and strategy formulation. The external environmental analysis includes political, economic, socio-cultural, technological, and legal factors, as well as Porter's six forces analysis. The strategy formulation includes identifying business opportunities and threats, linking core competencies with strengths and weaknesses, and mitigating identified threats.

Running head: BUSINESS PLAN
Business Plan
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Task 1: Report..................................................................................................................................2
1. Introduction:................................................................................................................................2
2. Business descriptions:..................................................................................................................3
2.1 Brief profile of the proposed business idea:..............................................................................3
2.2 Identify core competencies of business.....................................................................................5
2.3 Analysis of the external environment:.......................................................................................5
3. Strategy........................................................................................................................................7
3.1 Business opportunities and threats for the organization:...........................................................7
3.2 How the threats identified can be mitigated..............................................................................8
Conclusion:......................................................................................................................................9
Reference List:...............................................................................................................................11

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Task 1: Report
1. Introduction:
This study has focused to provide detailed business plan of launching a new venture in
the market of Sri-Lanka. Rainbow Roof-top is planned to spread out its business process as a
food and beverage centre. Providing superior quality of products in fast service method is the
primary mission of this new start-up. Sri-Lanka being an island nation is not economically well
developed and structured. Therefore, while launching a new business set-up the business experts
would have to focus on designing product and service quality as per customers’ needs and
demands. An estimated budget would be prepared for making human resources, financial
resources, technological resources and physical resources of the company. The study would also
evaluate necessary opportunities and threats that Rainbow Roof-top would have to face in
establishing their start-up amidst the other competitors.
2. Business descriptions:
2.1 Brief profile of the proposed business idea:
Rainbow Rooftop is designed as one of the most attractive and colourful rooftop food and
beverage centres established in the market of Sri-Lanka. The service method of delivering foods
and customer management is designed in an innovative way that can easily drag the attention of
target audience (Burns and Dewhurst 2016). With the help of advanced technology the business
experts will design Smart dining table with the help of which customers can select their menu by
touching on the screen of table. With kind of digitalization in the rooftop restaurant of Sri-Lanka

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will leave a major impact in customers’ mind (Ross and Byrd 2015). Providing delicious Indian
dishes and Asian Cuisine along with mock tails and various tasty milk shakes is the core
products that Rainbow Roof-top service providers supply to its target customers.
However, in order to control the business the owner needs to form and establish a proper
business profile who can handle every department separately.
Rainbow Roof-top
Industry: Food and beverage
Head office: Sri-Lanka
Office Address: No. 65 C W W Kannangara Mawatha, Colombo 00700, Sri Lanka
Website: www.rainbow.com.sri
Business department
Human resource:
Human resource manager
Human resource executives
Finance:
Chief finance manager
Finance executives
Technical:
Technical head
IT executives

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Sales:
Customer service manager
Customer service providers
Marketing manager
Marketing executive
Table 1: Business Profile of Rainbow Roof-top
(Source: As Created by the Author)
As Rainbow Roof-top is a start-up venture the business experts will hire 50 employees
for proving effective services. Those 50 employees are apart from managerial department in
Rainbow Roof-top.
2.2 Identify core competencies of business
Core competency is the management theory introduced by Prahalad and Gary (Gately and
Cunningham 2014). The overarching concept of core competency defines that every business
organization is possessed with its unique features and core values that distinguishes the company
from others (Wheadon and Duval-Couetil 2014). While establishing Rainbow Roof-top, the
business expert decides to make some distinct features within its product and services. The core
competencies of Rainbow Roof-top are as follows:
 Providing homes services to the customers in stipulated time
 Providing superior quality of Indian dishes along with Asian Cuisine
 Delivering innovative services by using Smart dining table
 Customers can place online order and receiving their services at the stipulated destination

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 Employees are well trained and professional to deal with the customers
2.3 Analysis of the external environment:
While running a business process in the realm of food and beverage industry the business
experts of Rainbow Roof-top would have to focus on evaluating external environmental factors
of Sri-Lanka which are as follows.
Political Sri Lanka is a democratic and unitary nation governed by semi-
presidential system. As per the stability of political scenario, this
particular nation faces frequent changes of their business policies
(Mariotti and Glackin 2014). As a result, the business experts
would have face challenges in running Rainbow Roof-top
effectively. The corruption level of Sri-Lanka is not very high due
to transparent trade control policy. The tax rate is affordable for
running the entire process of business. The degree of bureaucracy
is highly maintained within organizations of Sri-Lanka. For an
example, before sending the sales executives in field work the
business authority compels the employees for a thorough health
check-up so that they get to know about their physical
competency. As per government structure there is a good rapport
between trade union and Sri-Lanka government. As a result,
business experts do not have to face challenges in following

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government regulations and taxation policies.
Economic As already stated Sri-Lanka is not well developed in economy
(Örnek and Danyal 2015). As a result, business administrator
would have to be strategic in selecting product price (Kiznyte,
Welker and Dechange 2016). High cost product would be
challenges for the customers of Sri-Lanka in using services. Sri-
Lanka’s estimated population as per 2016 is 21.252 million. The
unemployment rate is 4% as per total labour force. It is however
expected that by 2022 the unemployment rate will be increased
due to the raise of population. Due to average population rate the
country does not have to face inflation in the business market.
Being an underdeveloped country the rate of poverty is average in
the soil of Sri-Lanka.
Socio-Cultural Around 20 million people have already spread their wings in the
soil of Sri-Lanka. However, the literacy rate of this nation is
around 92.5% which will help the company in hiring skilled labour
within services (Motoyama and Knowlton 2017). People
belonging to diverse culture and religion belong to Sri-Lanka.
The customers also maintain professional approach while using the
services. As the lifestyle of Sri-Lankan is average, the people are
possessed with moderate consuming habits.
Technological Technological availability in Sri-Lanka is high (Dempwolf, Auer
and D’Ippolito 2014). As a result, the business experts do not have

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to face challenges in using Smart dining table (Brinckmann and
Kim 2015). Customers can easily access the services by operating
advanced technology. The internet accessibility and connectivity
is high. People do not have to face difficulties in using
advancement of technology. The organizations by implementing
automation technology are running their entire operations.
Environmental Sri-Lanka is possessed with tropical climate due to which
temperature varies from one location to another. The rate of
natural disaster in this country is moderate. Ministry of
Environment and Natural Resources has implemented
Environmental Act with the help of which the inhabitants are
bound to maintain ecological balance (Uhl and Gollenia 2016).
The environmental pollution can be controlled as well by
implementing environmental act. At the same time, the business
experts can produce environmental friendly products with the help
of which customers do not get affected in having the foods of
Rainbow Roof-top.
Legal As already mentioned the labour market existed in Sri-Lanka is
very skilled and competent (Honig and Samuelsson 2014).
Therefore, the business experts have to follow organizational acts
and regulations strictly (Brooks, Heffner and Henderson 2014).
Health and safety act, data protection act, right to information
act, anti-discrimination act should be strictly followed at the

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workplace of Rainbow Roof-top. On the other hand, employment
act should be strictly followed at the workplace. With the help of
this act the employees would get necessary benefits and facilities
from the organization.
Table 2: External Environmental Analysis of Sri-Lanka
(Source: York and Danes 2014)
Porter’s six forces:
Bargaining power of the
suppliers’:
Bargaining power of the suppliers’ in Sri-Lanka is low due to
the large number of distributors and raw material suppliers
in the country. Customers’ knowledge regarding the raw
material supplier is not very detailed. Due to innumerable
number of distributors in food and beverage industry the
suppliers’ have to switch the price of raw materials
frequently as per demand.
Bargaining power of the buyers’: Bargaining power of the buyers is high due to large number
of suppliers. The organizations as per market needs and
demands can switch product cost. Sri-Lanka is possessed
with low number of customers in food industry. Therefore,
bargaining power becomes high so that business experts can
fulfil the expectation of limited number of customers.
Competitors’ rivalry: Innumerable organizations on food and beverage industry are
already established in the market of Sri-Lanka. Still,

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Rainbow Roof-top runs their business with smart operations.
Therefore, from that perspective the rate of competition for
this organization is low.
Threat of new market entry The factors which can give a major threat to the organization
in establishing their business process includes level of capital
use of technology, government regulations, distribution
channels and so on.
Complementary products Rainbow Roof-top has given priority on complementary
products. Therefore, their market demand is expected to be
high.
Threat of the substitutes Rainbow Roof-top is primarily made in Indian and Asian
Cuisine. The restaurants which are dependent on Continental
and Chinese Cuisine are its major substitutes. Therefore,
these restaurants are major threats for Rainbow Roof-top.
Rationale for choosing Sri-Lanka as new market:
After making effective PESTEL analysis and Porter’s six factors it can be concluded that
food and beverage industry in the soil of Sri-Lanka is expected to be prosperous. The country as
per government regulations, environment acts and labour market scenario is compatible enough
to give Rainbow Rooftop a secured place for running their business. After making Porters’ six
factor analysis it is evaluated that the competitive market, its substitute threat is low which
enables the business experts of Rainbow Rooftop to launch a new business process.

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3. Strategy
3.1 Business opportunities and threats for the organization:
Opportunities:
The opportunities that the business experts can find out after opening Rainbow Roof-top
in the market of Sri-Lanka are as follows:
 Expanding the business in multi-national countries
 Enhancing the number of workforces for providing more effective services
 Rendering more innovation in the service method
 Rendering product diversity for increasing the number of target audience
Threats:
After identifying the areas of opportunities the business experts of Rainbow Roof-top can
find out the areas of threats as well that can exploit the rhythmic process of business.
 Rainbow Roof-top may have to receive threat for new market entry in order to establish the
business in multi-national countries
 Rainbow Roof-top may have to face challenges in investing money for hiring large number of
workforces within services
 In order to render more innovation within services the organization would have to follow
high cost price strategy. High cost product strategy is very challenging for running business
in the market of Sri-Lanka due to the low economic strength of this nation.

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 Rainbow Roof-top may have to receive immense threats in dragging the attention of large
number of target customers due to limited products. The restaurant is limited within Indian
dishes and Asian Cuisine.
Strengths:
 Innovative business design with advancement of technology
 Skilled and competent labour market
 Professional customer services
Weakness:
 Low capital in business
 Low product diversification and market penetration
 Limited number of customers
Strategy formulation:
Link core competencies with strengths and weakness:
Providing quality of products and services by using innovative business operation is the
primary strength of Rainbow Rooftop. In order to overcome the weakness the organization can
take effective financial assistance from the banks to increase its capital and invest money in
business for more expansion. In order to enhance the number of customers the organization can
increase product diversification.
TWOS Matrix:

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Based on the company market analysis and internal strengths and weakness TWOS
enables the customers for analysing external threats, weakness, opportunities and strength
factors.
Threats
Competitors’ market strategy and their product
diversification as well as market penetration
Weakness
As per internal weakness the company does not
have sufficient capital for business investment.
As a result, as per external weakness the
organization would face difficulties in
expanding new market in other geographic
region.
Opportunities
By enhancing the number of workforces the
company can deliver the products in multi-
national countries
Strengths
Due to skilled labour market the organization
would be able to deliver superior quality of
services that can meet customers’ needs and
demands.
3.2 How the threats identified can be mitigated
Some of the most effective ways are there based on which the identified threats can be
mitigated:
1. Before expanding the business in other geographic area the business experts of Rainbow
Roof-top would have to make strong environmental analysis (Thomas et al. 2014). Based on the
external environment the business experts would form feasible business strategy and policy.

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2. In order to overcome economic barrier the organization would have to gain sufficient business
profitability. However, the product designers would have to render variable food and beverages
to grab the attention of customers from diverse cultural backgrounds and attitudes (Abdesamed,
and Wahab 2014). In addition, the business experts may use low cost pricing strategy to enhance
the number of target customers.
3. In order to drag the attention of international customers the organization would have to focus
on service and product diversification and market penetration. In addition, before designing the
product the business experts would have to focus on evaluating the needs and demands of target
customers (Wheadon and Duval-Couetil 2014). The range of target audience can be segregated
as per geographic, demographic and psychographic segmentation.
4. In order to overcome technological barriers faced by the existing employees the business
experts of Rainbow Roof-top would like to focus on providing effective training and
development session to the employees (Dempwolf, Auer and D’Ippolito 2014). As a result, they
do not have to face challenges in operating advanced technology. In addition, the employees
would be able to handle sudden technological barriers as well.
Conclusion:
This study has provided in-depth business plan of initiating a new business set-up in food
and beverage industry in the market of Sri-Lanka. Providing superior quality of products in fast
service method is the primary mission of Rainbow Roof-top. Sri-Lanka being an island nation is
not economically strengthened. It is observed that the service method of delivering foods and
customer management is designed in an innovative way that can easily drag the attention of
target audience. As Rainbow Roof-top is a start-up venture the business experts will hire 50

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employees for proving effective services. It is however undeniable that while establishing
Rainbow Roof-top, the business expert decides to make some distinct features within its product
and services.
Delivering innovative services by using Smart dining table is the core competency of this
organization. Customers can place online order and receiving their services at the stipulated
destination. As Sri-Lanka is not well developed in economy, business administrator would have
to be strategic in selecting product price. While running the organization, the business experts
have to follow organizational acts and regulations strictly. Health and safety act, data protection
act, right to information act, anti-discrimination act should be strictly followed at the workplace
of Rainbow Roof-top. At the time of analyzing its threats, Rainbow Roof-top may have to
receive threat for new market entry in order to establish the business in multi-national countries.

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