Social Media and Online Food Delivery Business

This assignment analyzes the strategic use of social media for an online food delivery business. It examines various financial ratios, such as Acid Test and Sales/Net Worth, to assess the business's financial health. A break-even analysis is performed, outlining the monthly revenue needed to cover fixed costs. The document also explores how the business leverages platforms like Facebook and Twitter to engage with customers, advertise its services, and build brand awareness through content like food preparation videos.

THINK BIG - MGMT20143
TERM-2, (2017)
BUSINESS IDEA AND ITS MOST ESSENTIAL BUSINESS MODEL
COMPONENTS
SUBMITTED BY:
STUDENT NAME: DEEPAK RAJ VIJAYAKUMAR
STUDENT ID: 12045126
EMAIL: [e-mail]
SUBMITTED TO:
COORDINATOR & LECTURER: Dr. ANGELINA ZUBAC

DISCUSSION:
Ordering and delivering of food is not a new business idea. However, with the
concept of innovation and advancement, the idea of food business has evolved with changing
times. There have been various options for me to initiate a start-up regarding the grocery
delivery, restaurant table booking, midnight food delivery, etc. I recognized that with the
hectic schedule of people with high-stress factor and juggling of work at both work place and
home, there is always a scarcity of time for cooking and preparing own food for work (Ebner,
Buhnen &Urbach, 2014). With the upheaval of a hectic lifestyle, there is a direct effect on the
health of the people in a negative way. This inspired me to initiate a business idea regarding
online delivery of meal boxes which are completely oriented to healthy dietary patterns.
The meal boxes that my business would provide would have food dishes that are very
customized by considering health and diet considerations. People can be very conveniently
ordered for the dishes and meals according to their likeness and diet concerns as we do not
use any excessive amount of oil, flours and other food items that pose adverse effects to
health. People having a hectic work schedule and at the same time desire to have a
completely structured diet through well prepared, light meals can very easily book order their
meal boxes which will be delivered to them at their desired location within an hour (Ferretti,
et al., 2015).
They would also be able to have their meals customized which will allow them the
liberty to have a mixed combination of food every day. My business of online food delivery
of meal boxes also offers the facility for consumers to book meal boxes for the entire month
where they can choose their meals every day at once (Lai, et al., 2016).
IMPLEMENTATION OF INNOVATIVE IDEAS:
The business model that we follow is much in resonance with the objective of the
business to provide healthy meals to people having a hectic schedule. Our business
understands that having same boring meals may tend to bore any employee. In order to bring
back the deliciousness into the lives of the employees along with removing the hassle of
preparing food, our business model completely matches the mission of the business.

• The consumers will need to create a profile on our official website and get registered with
the service platform.
• The users will be receiving a message regarding the available options for meals every day
at a particular time so that they can very well be aware and notified regarding the meals
without making any effort (Winfield, 2015).
• The interested users and consumers can very conveniently place the order and make the
required payment online. We would then forward the order to our kitchen to prepare the
meals box well accordance with the order of the consumer keeping his or her dietary
requirements and preferences in consideration (Lai, et al., 2016). After the processing of the
order has taken place, the meal platform will make the collection of the order and implement
the delivery of the ordered meal box to the respective location (work place or home, etc) at
the specified time.
DESCRIPTION OF THE INNOVATIVE PROCESS
The innovation process that would be used in the online dietary food delivery
business involves the use of new and innovative software and technologies that would be
handy to gain orders from the customers and along with timely notification to the customers
about the ordering of the food. This innovative software requires capital as well. The use of
such software would be useful for the maintaining records for the orders, the address where
the order would be delivered, the items that have been ordered along with transactions
undertaken for the business. It is essential to maintain all the records of the activities of the
business so that the construction of the financial statements would be possible and this would
lead to understanding the operational position of the business. The online food delivery
business can be deemed as a business that is not new in the market, but it is seen that the
innovative process has been the use of the dietary materials and healthy products that would
make the healthy food along with reenergising the taste buds of the consumers. The USP of
this business has been the assurance given to the consumers about the use of healthy and
dietary products for the preparation of their food. The business would even expand with the
help of receiving feedback from the consumers so that their suggestions and complaints can
be considered and effective plans can be taken with the help of which the business and the
operational activity would enhance and development. The development of the business is

possible with the help of capital and the inflow and outflow of the cash and hence the
projections with respect to finance would be underlined in the following section.
FINANCIAL PROJECTIONS
Cash Flow
Cash Flow
Year 1 Year 2
Cash Received $100,000
Cash From Operations $92,188
Sales $42,728 $58,000
Receivables $0 $0
Cash Flow from Operations $0 $0
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0
New Current Borrowing $0 $0
New Other Liabilities (interest-free) $0 $0
New Long-term Liabilities $0 $0
Sales of Other Current Assets $0 $0
Sales of Long-term Assets $0 $0
New Investment Received $0 $0
SUBTOTAL CASH RECEIVED $142,728 $150,188
Expenditures Year 1 Year 2
Expenditures from Operations
Cash Spending $2000 $3600
Bill Payments $6550 $3950
SUBTOTAL SPENT ON
OPERATIONS $8550 $7550
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0
Principal Repayment of Current
Borrowing $0 $0
Other Liabilities Principal Repayment $0 $0
Long-term Liabilities Principal
Repayment $0 $0
Purchase Other Current Assets $0 $0
Purchase Long-term Assets $0 $7550
Dividends $0 $0
SUBTOTAL CASH SPENT $8550 $7550
Net Cash Flow $134,178 $142,638
Cash Balance $92,188 $1,02,328

Overall Financial Report of the Business
Year 1 Year 2
Industry
Profile
Sales Growth 0.00% 0.00% 8.79%
Percent of Total Assets
Accounts Receivable 0.00% 0.00% 28.12%
Other Current Assets 0.00% 0.00% 44.18%
Total Current Assets 24.61% 78.72% 76.27%
Long-term Assets 75.39% 21.28% 23.73%
TOTAL ASSETS 100.00% 100.00% 100.00%
Current Liabilities 14.43% 13.77% 38.61%
Long-term Liabilities 0.00% 0.00% 13.60%
Total Liabilities 14.43% 13.77% 52.21%
NET WORTH 85.57% 86.23% 47.79%
Percent of Sales
Sales 100.00% 100.00% 100.00%
Gross Margin 0.00% 100.00% 100.00%
Selling, General & Administrative
Expenses 0.00% 74.84% 82.68%
Advertising Expenses 0.00% 1.00% 1.66%
Profit Before Interest and Taxes 0.00% 33.55% 1.37%
Main Ratios
Current 1.71 5.72 1.59
Quick 1.71 5.72 1.22
Total Debt to Total Assets 14.43% 13.77% 60.22%
Pre-tax Return on Net Worth -179.37% 101.73% 3.09%
Pre-tax Return on Assets -153.49% 87.72% 7.76%
Additional Ratios Year 1 Year 2
Industry
Profile
Net Profit Margin 0.00% 25.16% n.a
Return on Equity -179.37% 76.30% n.a
Activity Ratios
Accounts Receivable Turnover 0 0 n.a
Collection Days 0 0 n.a
Accounts Payable Turnover 9.57 12.17 n.a
Payment Days 27 19 n.a
Total Asset Turnover 0 2.61 n.a
Debt Ratios
Debt to Net Worth 0.17 0.16 n.a
Current Liab. to Liab. 1 1 n.a
Liquidity Ratios
Net Working Capital $177,000 $4,727,910 n.a
Interest Coverage 0 0 n.a

Additional Ratios
Assets to Sales n.a. 0.38 n.a
Current Debt/Total Assets 14% 14% n.a
Acid Test 1.71 5.72 n.a
Sales/Net Worth 0 3.03 n.a
Dividend Payout 0 0 n.a
Break-even Analysis
Break-even Analysis
Monthly Revenue Break-
even
$222,41
7
Assumptions:
Average Percent Variable
Cost 0%
Estimated Monthly Fixed
Cost
$222,41
7
USE OF SOCIAL MEDIA
In the current era, with the development of the science and technology, there has been
use of various online as well as media services by the consumers globally. In the current era,
there has been development of the social media like Facebook, Twitter etc where the
consumers communicate with each other and stay connected with the activities all over the
globe. Hence, the businesses has been exploiting these social media websites in order to gain
knowledge about the consumers as well as communicate and advertise their business in such
websites in order to attract the consumers about their business and convince them to become
their customers. The business therefore has created a page in Twitter and in Facebook where
the details about the business along with the services offered and the benefit of the services
are even highlighted. This would be influential for the undertaking an effective promotional
plan for the business. The food menu as well as the rate charts is even provided in order to
create a clear view about the online food delivery business to the consumers. As discussed
above, the main aim of the business has been to provide healthy and dietary food to the
consumers and hence the business even uploads videos with respect to the procedures used
for the preparation of the food items so that the consumers would have an idea about the
products used and the safety measures taken so that the consumers can order and purchase
their meal boxes trustworthily. Hence, the use of the social media can be useful for the
establishment of the business effectively.

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University students encourages them to think big, says lecturer Louise Winfield.
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