Entrepreneurship Project: Golden Fast Foods Business Plan Analysis

The assignment presents a comprehensive business plan for Golden Fast Foods, a startup fast-food venture aiming to enter the Australian market. The plan begins with an executive summary and introduction, followed by a detailed market analysis, including market segmentation, target market identification, and a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. The plan also includes competitor analysis, marketing strategies focusing on the 4Ps (place, price, product, and promotion), and financial analysis with the business objectives. The assignment emphasizes competitive advantages through lower prices due to sourcing raw materials and a family-run structure, and aims to create a strong customer base and awareness. The document concludes with references, providing a thorough overview of the business plan's components.

Running header
Name:
Title:
Institution:

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Executive summary
The is based on the business plan of a startup fast food business which is Golden Fast Foods. The
report begins with an introduction which is followed by the body that incorporates the literature
review. The literature review entails a concise analysis of the business plan for market entry into
Australia. This is then followed by a conclusion and finally is the list of references from where
the data was sourced.

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Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................4
Background of business...................................................................................................................4
Description of the business..............................................................................................................5
Market segmentation.......................................................................................................................5
Target market...................................................................................................................................6
Swot analysis...................................................................................................................................7
Competitor analysis.........................................................................................................................8
Marketing strategy...........................................................................................................................9
Financial analysis.............................................................................................................................9
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
Formulating a superb business idea is one thing but its implementation to ensure its fruition and
success is the uphill task. The implementation plan will be the difference between success and
failure of the business idea. Entrepreneurship can be defined as the activity of starting a business
using the resources at hand while at the same time incorporating all the anticipated business risks
in a bid to get rewards which are the profits. Kirzner, (2015). Entrepreneurship may entail
rejuvenation of an already existing business or company. As of 2018, Australia became the
country with the largest median wealth per adult and politically stable. Thus, Australia is really
ideal for doing business.
Golden Fast Foods is a new business venture that wants to enter the Australian market have
evaluated the market comprehensively. Australian fast food industry is growing rapidly with
2015 data indicating Australia spent $ 7.16 billion on fast food for that year which is an average
of $ 311 per annum per individual.
Business objectives
The business objectives are what the company has set to accomplish in a given timescale. Golden
Fast Foods has set a time frame of 6 months. The objectives are as follows:
1. Break even in the first six months
2. Create awareness about the new business venture to the general public
3. Customer acquisition and have a market share of 5%
Background of business
The theme of the business will be “where quality meets your budget”. The theme is supposed to
create an image of quality fast foods at an affordable budget. Golden Fast Foods is maiden in the
industry as it is a startup business. Golden Fast Food is a family business. The idea of the
business was due to the large market available in Australia and also the increased consumption
of Fast Foods. Thornton, Lamb, and Ball, (2016). The competitive advantage of the company
will be that it will provide fast foods at a relatively lower price. This is because the family
owning the business have large greenhouses and ranches where they source their raw materials
such as potatoes and meat products.

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Description of the business
The Golden Fast Foods Restaurant is a maiden business that will seek to operate numerous
branches across Australia. However, the business will mainly focus on the urban areas where fast
food demand is high. The company will aim at offering competitive prices for high-quality foods
to customers. The products to be offered by the business include; hamburgers, pizza, fries,
chicken, coffee, tacos, grilled cheese, and beverages such as coffee, milkshake, and sodas. In
order to attract more customers, all their restaurant will have free Wi-Fi for customers.
The business will also have a drive-through section where customers who are driving can
purchase their take away foods at the comfort of their vehicles. The business will also ensure that
their premises have ample parking space for its customers. Every Thursday, there will be a
promotion where two pizzas will be sold for the price of one. This is meant to create customer
loyalty. Kursunluoglu, (2014).
Market segmentation
Market segmentation is quite essential for the business to identify its target market. Market
segmentation refers to the subdivision of the market into a smaller section. In order to identify
the target customers, the market will be subdivided into;
a) Demographic segmentation
This involves subdividing the market according to age, gender, education, marital status,
education, religion, and race. Golden Fast Foods will divide the market according to age and
marital status. Birdir, (2015).
b) Geographic segmentation
This is a subdivision of the market according to a physical location. The market will be
subdivided according to the rural and urban area. Golden Fast food will target urban areas.
(Gupta, 2017).
c) Psychographic segmentation
This is a division of the market in accordance with people's lifestyles, activities and
socioeconomic class. In this case, the market will be subdivided in accordance with people's
healthy lifestyles.

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d) Behavioral segmentation
This is a subdivision of the market according to usage, behavior and decision-making patterns.
The market will be segmented according to decision making patterns by the youth and the single
population. Ailawadi, et al., (2014).
After market segmentation is done, it will be simpler to identify the target customers whose need
are closely related to the business’ product and thus concentrate on their specific needs. Having
segmented the market, Golden Fast Foods came up with its intended customer base.
Target market
This is the potential customers that Golden Fast Foods wants to turn into actual customers. The
target market was arrived at after a careful review of the Australian market. The targeted
customers for Golden Fast Foods are as follows:
1. Urban residents
These are Australian residents. The main target will be Australian citizens who reside in urban
areas. Australia is a fast-moving economy with the urban centers housing formally employed
people and businessmen. Due to the fast-paced economy, most urban residents are quite busy and
have little time for recess. They thus have little time for whole meals and prefer take-away foods
which are in the form of fast foods. They prefer fast foods as they can consume them from their
place of work or take a short time for them to be served and consumed in a fast food outlet. Fast
food in urban areas is also cheaper compared to whole meals.
2. Single youth
These are people who range from 18 years to 35 years. Most of these people rarely cook and
mostly prefer fast foods as a substitute. Also, young people are rarely cautious on their dietary
health thus an ideal target for fast food which is linked to obesity and other health complications
if taken in huge amounts.
3. Tourist

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Some foreign tourist finds it difficult to acclimate to the Australian diet and prefers fast foods
which are of international standard. The business name also creates a sense of inclusivity as it
has no Australian attachment thus tourist will perceive the foods like those at their home country.
Swot analysis
This is an analysis of a company’s or business strengths, weaknesses, opportunities and threats
for developing a strategic plan and for evaluation of a company’s competitive position. The
analysis assesses the external and internal factors that affect or influence the business thus
improving the chances of profitability. Gürel, and Tat, (2017). The swot analysis that was carried
out revealed the following:
Strengths
These are the areas where a business excels in. they are as follows:
 The business will avail free WI-FI in all its outlets which will ensure customers take
more time in the food outlets and thus buy more. It will also attract customers who are
interested in the internet but have to buy something for them to have access to WI-FI.
 The business will have ample parking space which will be secured by CCTV cameras and
a guard. This will ensure convenience for customers with vehicles and also assuring them
safety for their vehicles.
 Every Thursday, Golden Fast Foods will be selling 2 pizzas for the price of one. This will
be geared towards building a strong and loyal customer base.
 The business will also offer online stores where customers can order online and have
their orders timely delivered door to door.
 The products will be priced a bit low as the business will source most of the raw material
from their own ranches and greenhouses.
Weaknesses
These are the factors that influence a business negatively and thus stopping it from performing to
its optimum level. The weaknesses identified are as follows:

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 Sourcing of talented employees will be a major impediment as the business is new and
will not afford to attractive pay packages. Also, there exist major fast food outlets who
have already tapped the talented employee force.
 It will take some time and resources in creating awareness of the business to the targeted
customers.
Opportunities
These are the factors that ready to be explored in giving the business a competitive advantage
over its rivals. They are as follows:
 There is increased demand for fast foods in Australia, especially in urban areas. Most of
the fast food outlets are congested which means demand is more than supply.
 Australian bureaucracy in starting a business is relatively easier and short meaning it will
be easy and cheaper to start the business. Also, a business that operates sustainably is
given tax rebates and holidays.
Threats
This refers to factors with the potential to hurt a business. They are as follows;
 Drought – Australia faces spells of hot temperature which will affect the production of
ranches and greenhouses thus creating a shortage of raw materials for Golden Fast Foods.
 The Australian fast food industry has the presence of giant international players like KFC
and McDonalds who have more experience in the industry and are massively endowed
with financial resources. Anaf, et al., (2017).
Competitor analysis
This is a review of current and potential strengths and weakness of rivals in the same industry.
The competitors in Australia in the fast food industry include; McDonald's, Kentucky Fried
Chicken (KFC), Domino's, Pizza Hut, Hungry Jack among others. However, the largest
competitor in Australia and that has the largest market share are McDonald's. After reviewing the
companies, they are well established and have no significant weaknesses. Golden Fast Foods has
an advantage over the rivals in that they outsource their raw products which makes their products
a bit expensive. Thus, Golden Fast Foods will be better placed to compete with their rivals in

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terms of price as they produce their own raw materials thus making their products relatively
cheaper. A major detriment and strength of the rivals is that they are quite established in the
market and also due to their financial power, they are able to pay their employees better also
attracting the most talented employees.
Marketing strategy
Having identified the potential customers and done a swot analysis, the business has to come up
with a marketing strategy. Marketing advantage is a plan that is aimed at achieving a competitive
advantage over rivals. The marketing strategy can be classified according to the 4P's of
marketing. The 4p's are price, place, promotion, and product. Khan, (2014). Golden Fast food
will utilize the 4p’s in the following way to ensure it competes favorably thus ensuring
profitability:
1. Place
The company will set up shop in numerous cities and at strategic points such as highways.
Golden Fast Food will ensure that where it starts the business, there will be ample space for
parking and drive-through services.
2. Price
To ensure competitive advantage, the business will offer their products at a lower price than
those of their rivals. This will be made possible because they produce their own raw materials in
their greenhouses and ranches.
3. Product
Golden Fast Foods will ensure that their product quality matches if not betters those of their
rivals. Customer care services such as waiting, delivery, security, and WI-FI will also be at its
best so as to create a positive image and create customer loyalty.
4. Promotion
In order for the business to earn a profit and have a strong customer base, it should create
awareness of its existence and any other information such as their location to potential
customers. Golden Fast Foods will do a lot of advertising via television and radio at timers when

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the audience is large like in between trending shows and news. The company will also advertise
via billboards strategically set along busy highways.
Financial analysis
Projected profit and loss
The financial analysis will be done for the first six months where the company is expected to
break-even.
PROJECTED PROFIT AND LOSS STATEMENT
AS AT 10TH AUGUST 2019
Details Amount in $
Income
Total sales
Less: total discounts/ commission
Total net income
Less: cost of goods sold
Gross profit
Expenses
Administrative and general
Promotional and marketing
Operating expenses
Expenses of motor vehicles
Website expenses
Salaries and wages
Rent
Other expenses
Total expenses
Net profit for first six months
250,000
(45,000)
205,000
(109,000)
96,000
10,000
5,000
6,000
1,000
500
22,000
27,500
8,000
(80,000)
16,000
The business broke even and even made a profit in the first six months of operation. Thus, the
business is viable as per the projection.

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Sustainability plan
This is plan geared towards sustainable production ensuring that you conserve the environment
and ensuring that scarce resources are conserved and at the same time ensuring maximization of
profits. Ericksen, Berke, and Dixon, (2017). The conservation plan will be listed in a table
according to priority.
Priority area Sustainability activity
Water conservation  Ensure that water appliances are of the legally
recommended standards.
 Regular servicing and maintenance of the plumbing
system to discover any leaks or pending damage.
 Ensuring recycling of water where possible.
 Tapping of rainwater and storing it in emergency
reservoirs.
Energy consumption
reduction
 Ensure that all electrical equipment is turned off if not
in use.
 Use of energy saving lighting and switch off lights if
not in use.
 Proper ventilation to ensure minimum use of air
conditioning facilities.
Recycling of waste and
sustainability
 Ensure all plastic bottles are recycled in the recycle bin.
 Use of sustainable materials for packaging
 Waste segregation and sorting before disposal.
 Ensuring there are collection points for recyclable
waste materials and that they are properly labeled.
 Reuse of bio-degradable waste in their greenhouses.
 Ensure collaboration with the community on
sustainability and sensitizing them the importance of a
green environment.

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Conclusion
Given the major player in the business, it is quite evident that there exists cut-throat competition
in the industry. It is also quite evident that there is a large market in Australia on fast foods and
the demand is also large. A major cause of any business failure is unfair competition from rival
firms. From the analysis done, Golden Fast Foods came up with the remedies to remain relevant
in the market and meet its objective of breaking even in the first six months of operation. If the
findings are followed to the dot, then as projected, the company will break-even and even realize
a profit.