University of Canberra: Small Business Management - Frank's BBQ Plan

This assignment evaluates the business plan of Frank's All-American BarBeQue, focusing on the decision to open a second location in Darien, Connecticut. The student begins by agreeing with the decision and then provides a definition of business planning, emphasizing its importance in establishing operational frameworks and achieving long-term growth. The plan's strengths and weaknesses are analyzed, considering factors such as demographics, market analysis, and competitive comparisons. The assignment highlights the importance of advertising, market diversification, and a comprehensive understanding of target demographics. The analysis suggests alternative factors that should have been considered, such as population density, income levels, and the potential for attracting a broader customer base beyond families. The student incorporates the definition of business planning, its importance, and the factors examined in the plan, providing a comprehensive evaluation of the case study and offering recommendations for improvement. The solution is contributed by a student to Desklib, a platform for AI-based study tools.

Running head: SMALL BUSINESS MANAGEMENT EVALUATION
SMALL BUSINESS MANAGEMENT EVALUATION
Name of the Student
Name of the University
Author Note

1SMALL BUSINESS MANAGEMENT EVALUATION
Definition of business planning
Business planning refers to the formation of effective operational and functional
frameworks for businesses considering the environment within which a specific business is to be
established. It helps businesses to form relevant goals and objectives that can help organization
grow and develop in the long run.
Importance of business planning
It is important as it creates an effective framework for maintaining the functions of the
organization for gaining effective productivity. It also helps to understand the challenges that can
be faced by the given organization and the specific decisions that can be made to tackle the same.
Business planning is essential for the long term profitability and market survival of businesses in
growing environments of competition and other corporate challenges (Din, Anuar & Usman,
2016).
Factors examined by the organization
The business plan was for Frank’s All-American BarBeQue. Various factors have been
considered and the location of Darien, Connecticut was selected. The factors that were
considered were, demographics, products and services, competitive comparison, fulfillment,
future products and services, market analysis with factors such as increase of GDP and
disposable national income, market needs and developmental requirements. These factors were
examined as the organization thought these were the best factors that could be considered for the
study.

2SMALL BUSINESS MANAGEMENT EVALUATION
Evaluation of the business plan
It can be said that opening a second shop in the same state was not a very effective
decision from the part of Frank’s All-American BarBeQue. Another important weakness of the
plan is that the organization is focusing on a mission that would provide them with only a limited
scope for growth. The bank loan that they seek to gain an amount of 175,000 dollars can
jeopardize their growth for the first two years and they might not be able to make any effective
initial headway. The mission and vision can be effective but limited in scope considering the
factor that they do not want to diversify into the other regions. The only objective seems to be
giving the finest food. This is not effective as many other organizations have similar motives.
Considering the fact the product offerings of the organization is engaged in the barbecue sauce
business which calls for product specialization. The lack of advertising can cost the company as
there would be much low exposure. There is not much emphasis on promoting the barbeque
sauces that had become the signature products for the organization. Demographically, Darien
only has a population of 19,375. Norwalk having a population of 83,802 with a population
density of 3,675 was a much better option. The income is around 180,475 this means that there
are lesser availability of the target market that the organization is wanting to reach and more
availability of higher level buyers. Family sizes however, are good in Darien. With the amount of
disposable income the company could have planned for a far better business model. Another
important factor that can be considered to be a weakness is the fact that Frank’s is not going
towards attracting other sets of customers and only focusing towards the families. There should
have been more emphasis on the sauces that are growing in importance.

3SMALL BUSINESS MANAGEMENT EVALUATION
References
Din, B. H., Anuar, A. R., & Usman, M. (2016). The effectiveness of the entrepreneurship
education program in upgrading entrepreneurial skills among public university
students. Procedia-Social and Behavioral Sciences, 224, 117-123.