Balti Palace Business Expansion Report

This report details a comprehensive market research study conducted for Balti Palace, a restaurant considering expansion. The study uses primary data (questionnaires) and secondary data (online resources, government records) to analyze customer preferences, food habits, and competitor analysis. Statistical methods, including mean, median, mode, standard deviation, and percentiles, are applied to the collected data. Visualizations such as bar charts, pie charts, and scatter diagrams are used to present the findings. The report also includes financial projections using NPV and IRR, along with project management tools like Gantt charts and network diagrams to assess the feasibility of the expansion. The conclusion summarizes the findings and recommendations based on the analysis.

Learner declaration

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1.................................................................................................................................................3
1.2.................................................................................................................................................4
1.3.................................................................................................................................................5
2.1.................................................................................................................................................6
2.2.................................................................................................................................................9
2.3...............................................................................................................................................10
2.4...............................................................................................................................................11
TASK 2..........................................................................................................................................13
3.1...............................................................................................................................................13
3.2...............................................................................................................................................16
3.3 Enclosed in PowerPoint.......................................................................................................17
3.4 Business report.....................................................................................................................19
4.1...............................................................................................................................................20
4.2...............................................................................................................................................21
4.3...............................................................................................................................................24
CONCLUSION..............................................................................................................................25
REFERENCES..............................................................................................................................26
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INTRODUCTION
The external business complexity has increased the role of the existing business by
incorporating changes in their current business environment. The statistical measures have been
used throughout the report which will help an entity in order to recognize the hidden talent of the
business entity. Balti Palace has been selected for this project report by applying the current
business tactics in order to reduce the market burden. It is also emphasizes on information
processing tools and performance evaluation techniques. The current business of Balti palace is
owned by single owner in order to take their own decisions. The initial investment is taken by
venture capitalist mode in order to operate their business without any initial hindrances. The
business has started in the past 5 years that is the reason the owner decided to expand their
business two different location. The locations where they can expand their business is in
different segments of the UK. The business can be expand in different situations such as
Birmingham, Spain.
TASK 1
1.1
Market research is essential aspects covered in framing business plan which helps an
entity in order to define all the prospective limitation that may arise in the future business path.
The current business plan of the researcher is to open a new restaurant in the City of London
whose viability need to assess by the researcher by conducting the existing market research
study. The focus of the researcher while conducting a study is to resolve all the issues arises in
the study. This study primarily focused on scientific knowledge, design, processes and objects in
order to gather facts and figures to support their study.
Opening a new restaurant in specific country imposes serious responsibilities on
enterprise owner in order to select best appropriate location to cater the needs and expectations
of all kinds of customers (Gerow, 2010). Balti palace need to collect data by personally visiting
the location in order to analyses the food habits and tastes and preferences of the customers. The
place is important as less number of competitors around that place will attract wide number of
customers in order to enhance the profitability of the business.
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Primary data
The external market changes need to be closely conducted in order to assess the viability of the
project by conducting survey through circulating questionnaires. These will be distributed in
order to take consent of all customers to know their food preferences.
Secondary data
Balti palace can gather data by assessing online materials with the help of internet that collects
all accurate sources of data. The government can be used in order to know the total population of
London which are bifurcated into demographic and the geographical area. Balti Palace can
obtain information from books and journals by seeking external market trends of the food and
beverage industry. The data can be collected from internet and other records regarding area of
population by searching government records.
1.2
The survey methodology that could be adopted by Balti Palace may include designing a
questionnaire, use of face to face, interview, focus group among others. Questionnaire involves
designing simple questionnaires that will be easy and simple for the respondent to respond to,
while the face to face may require meeting respondents face to face and getting feedbacks from
them concerning the new restaurant. Interview also requires meeting the respondent or calling
them on the telephone. The focus group may involve selecting a group of professionals or
reputable customers who eat out mainly and seek their opinion in this regard.
Sampling is regarded as one of the important element in gathering data as it relieve the overall
work pressure on an enterprise (Black, 2011). The researcher need to gather data by applying
appropriate technique that can be used in order collect information from accurate sources which
will able to produce good and reliable results in order to resolve all kinds of issues. Balti palaces
are required to select the best suitable technique which will help an entity in order to analyze the
food trends in the external market. It can generate a good informational source which is related
to several things such as consumer tastes, food habits and overall price comparison. The survey
will be conducted in order to resolve all prospective issues arises in an enterprise will be resolved
by using questionnaire method. This questionnaire will be circulated among customers which is
fill up by the observer who will note down all the answers given by different respondents. Balti
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palace need top target two set of 100 customers that is in total 200 customers are cross
questioned to obtain the truth. There are various sampling methods which can be used by Balti
Palace which are given as below:
Random sampling- It is one of the sampling collection technique in which different samples are
randomly selected y the researcher in order to bring out the truth (Berenson, 2012). The sample
size of the overall population is 200 customers which are targeted by this entity as customers are
the king of the market while opening that business that success is determined by the customers.
The food need to be quality oriented in terms of tastes and hygienic methods used by an
enterprise while preparing food also play a significant role for the buyers. The image of an entity
is reflected by the food served to all the customers.
Stratified sampling- The samples selected out of the total population is bifurcated into various
similar categories which will help an entity in order to deal with various needs and aspirations of
the different set of customers. The groups are designs by the researcher are referred to as the
stratum as all these groups are personally designed by the researcher. This division is done which
will help an entity for completing their research to be completed in a given time span. The
categories are segmented which will assist an entity to target all set of customers to accomplish
their entire goal and the objectives. This short achievement after completing all goals within
given time frame which will help an entity.
1.3 Questionaire
Questionnaire
Name-
Age-
Gender:
Male
Female
Transgender
1. What do you like to eat in restaurant?
 Vegetarian
 Non-Vegetarian
2. How may times do you visit Balti Palace restaurant in a month?
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 1-2 times
 2-4 times
 5-7 times
 7-10 times
3. How much do you spend on food in every time you visit Balti palace restaurant?
 £50
 £60-£150
 £200-£250
 More than £250
4. Do you like quality of food services offered in this restaurant?
 Yes
 No
5. The price is offered here is less than their competitors in the London?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
6. Which kind of food cuisine who prefer to eat in the Balti palace restaurant?
 Italian
 Chinese
 continental
 Thai
 European
7. Which factors will determine your decision of visiting this restaurant?
 Price
 Quality
 Taste
 Food hygiene
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 Waiting time
 Ambience
8. Are you satisfied with the prices offered by restaurant?
Yes
No
9. What factors of Restaurants you don't like?
Waiting time
Low food quality
10. Do you find special features in the existing restaurant?
Yes
No
11. Please provide your feedback_______________________________________
2.1
Type of cuisine Frequency
European 20
Italian 28
Chinese 10
Continental 42
TOTAL 100
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European Italian Chinese Continental
0
5
10
15
20
25
30
35
40
45
20
28
10
42
Frequency
Interpretation
It has been observed from the above that Balti palace has offered variety of food cuisine
in order to catch the interest of most of the customers. The food variety is essential to attract
wide number of customers (Black, 2011). The variety of food cuisine likes European, Chinese,
Italian and continental food will retain all kinds of customers for long period with an enterprise.
The above bar chart will reveal the business efficiency which can be utilized by an enterprise in
order to gain higher level of customer satisfaction which is regarded as the basic factor. This
customer satisfaction can change an enterprise's condition by attracting them towards an entity.
The above ratio shows that out of total batch of 100 customer’s majority of the customers like
continental food as their flavors are phenomenons to attract the healthy individual to eat healthy
food in order to remain fit.
Essential factor Frequency
Price 15
Quality 20
Taste 15
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Food hygiene 10
Waiting time 10
Ambience 30
Total 100
Price
Quality
Taste
Food hygiene
Waiting time
Ambiance
0
5
10
15
20
25
30
35
15
20
15
10 10
30
Frequency
Interpretation
It has been observed that an enterprise owner has classified different tastes and
preferences of an individual into different segments that attract an individual's interest towards
an enterprise (Gerow, 2010). The opinions of all the customers are segmented into different
variety which can be helpful for an entity in assessing their strengths and weaknesses. These
factors are those things which need to be incorporated by an entity in improving the existing
conditions of the business. Out of the total batch of 100 customers Balti palace has observed that
quality always remains in the top priority for an entity in attracting the basic interest of all kinds
of customers. The price and taste is another important factor for an enterprise as the customer
think it is the highly important factors for an enterprise. But the results had shown than ambiance
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of overall restaurant to facilitate all kinds of customers to feel comfortable while eating at the
outlet or take the food away with them.
2.2 mean, median, mode
Amount
Spent (£)
Number of
customers (f) Mid- value(x) fx Cumulative Frequency (CF)
10-20 18 15 270 18
20-30 20 25 500 38
30-40 16 35 560 54
40-50 14 45 630 68
50-60 12 55 660 80
60-70 8 65 520 88
70-80 6 75 450 94
80-90 4 85 340 98
90-100 2 95 190 100
100 4120
Mean calculation
Mean Formula= ∑FX/∑F
=4120/100
=41.2
Computation of Median
Formula= ∑F/2
=100/2
=50
The median value of 50 is in range of 30-40
Median= L1+[(N/2-C)/F]*i(class size)
M=30+[(100/2-38)/16]*10
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M=30+7.5
=37.5
L1= Lower limits of the class interval
N= number of frequency
C= preceding cumulative frequency of 30-40 interval
F= Frequency of 30-40 class interval
i= class size that is difference between the class interval
Mode calculation
Z= L1+ (F1-F0)/[2(F1)-F0-F2]*i(class size)
Z= 20+ (20-18)/[2(20)-18-16]*10
=23.33
L1= Lower limits of class interval
F1= preceding frequency of class interval 30-40
F0= Succeeding frequency of class interval 30-40
F2= Frequency of class interval 30-40
Interpretation
The value of median and mode can be different while using continuous frequency system.
The value of mode is the repetitive value occur in the total data set which can be appear in the
any point of total data set. The median will only show mid value which divided whole data set
into two.
Mean-The arithmetic mean is the average of all the elements to be used by taking the overall
average that states a complete trend (Sobhani, 2011). It is one of the important measures of the
central tendency. The mean of the current business proposal is 41.2 which can be said that
average number of customers can spent money on food by paying bills in the restaurant is around
41.2 out of the total 100 set of customers. This will clarify all their doubts related to the
customer’s visit to this particular restaurant.
Median-It is another measure of the central tendency which is used to select the middle part of
the overall sample of population. From the above set of data gathered by conducting primary
research states that the median of the above data is 37.5 that shows lies between the class interval
of 40-50 pounds spent by the customer who visited this place.
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Mode- It is regarded as the trio element of the triangle of all the three components which re
connected to each other that is mean, median and mode of an enterprise. It is those methods
which occur repeatedly in the set of data. The above calculated mode shows that it belongs to the
category of 20-30 pounds spent.
2.3
Table 1: Calculation of standard deviation
Amount Spent
(£)
Number of
customers (f) Mid- value(x) FX X^2 FX^2
10-20 18 15 270 225 4050
20-30 20 25 500 625 12500
30-40 16 35 560 1225 19600
40-50 14 45 630 2025 28350
50-60 12 55 660 3025 36300
60-70 8 65 520 4225 33800
70-80 6 75 450 5625 33750
80-90 4 85 340 7225 28900
90-100 2 95 190 9025 18050
100 4120 33225 215300
Variance (S^2) = ∑Fx2 – ((∑Fx)2 /n)/ n – 1
= 215300 – (4120)^2/100/(100-1)
= 460.16
Standard deviation = √ Variance
= √ 460.16
= 21.45
Interpretation
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