Green Chinese House: Comprehensive Business Plan Project

This document presents a detailed business plan for the Green Chinese House, a new Chinese restaurant venture planned for Dhaka, Bangladesh. The plan includes an executive summary outlining the restaurant's concept, which emphasizes an environmentally friendly approach and focuses on Chinese cuisine. The plan covers market analysis, including industry outlook, competition, and target market segmentation, as well as a feasibility study assessing product, technical, organizational, resource, and financial aspects. Strategic analysis incorporates PEST, SWOT, Value Chain, Ansoff Matrix, VRIO framework, and Business Canvas models. The plan also includes a comprehensive marketing strategy, operational plan, and financial projections, with cost-profit analysis and cash flow statements. The research methodology, including research philosophy, design, approach, and methods, is also described. The business plan aims to secure investment and guide the successful launch and operation of the Green Chinese House.

Running head: NEW BUSINESS PLAN
New Business Plan
(Green Chinese House)
Student’s name:
Name of the university:
Author’s note:

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Executive Summary
A business plan has been designed in this study, where the development of a new Chinese
restaurant will be taken into consideration. This restaurant will be an environment-friendly and
name of the business venture has been given 'Green Chinese House'. The restaurant will be
majorly serving Chinese delicacies. The key to success regarding the Chinese restaurant will be
repeat business, a convenient location in Dhaka, Bangladesh as well as its distinctive Chinese
cuisine. However, making an entry into this market will be having a lot of challenges, since the
restaurant industry is considered being very much competitive, having periodic overcapacity,
low margins, as well as low barriers to entry or exit. Moreover, there is a huge number of
substitutes, and the suppliers to this market are having a huge amount of powerful influence. The
restaurant will be having a widespread marketing, advertising as well as promotion campaign
that will be maximizing word-of-mouth marketing and will be comprised of printed materials,
billboards, as well as discounts.
Gulshan, Dhaka is a posh location and the restaurant is going to have rooftop facility and a touch
of green will make it more attractive. In regard to location, it can be stated that convenience is
very important for the restaurant’s business to thrive. For conducting the business plan, a
feasibility research needs to be conducted that will be including the research methodology,
research onion, research philosophy, research design, research approach, research method, data
collection method, sampling technique, sampling size, time horizon, data analysis, reliability and
validity of the research as well as ethical consideration. A strategic analysis needs to be
conducted that will be including data analysis and market attractiveness for Green Chinese
House, strategies and capability analysis for Green Chinese House, PEST analysis for Green
Chinese House, SWOT analysis for Green Chinese House, Value Chain and competitive

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advantage for the company, Ansoff matrix regarding Green Chinese House, VRIO framework
analysis in respect of Green Chinese House, Business Canvas Model as well as the Competitor’s
analysis for Green Chinese House. Moreover, a financial projection has been given in this study
with cost-profit analysis and cash flow.

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Table of Contents
Chapter – 01:Introduction..............................................................................................................10
1.1 Terms of Reference..................................................................................................................10
1.2 Rationale of the study..............................................................................................................10
1.3 Outline New Business concept............................................................................................10
1.3.1 Assess the existing position..............................................................................................11
1.4 Industry Outlook..................................................................................................................11
1.5 Selection of the Scenario Analysis......................................................................................11
1.5 Concepts and Models Applied:................................................................................................12
1.5.1. SWOT analysis................................................................................................................12
1.5.2. Five forces analysis..........................................................................................................12
1.5.3. PESTEL analysis.............................................................................................................13
1.5.4. Ansoff Matrix..................................................................................................................13
1.5.5. Value Chain Model..........................................................................................................13
1.6 Research question....................................................................................................................13
1.7 Research objectives.................................................................................................................14
1.8 Assumptions............................................................................................................................14
1.9 Timescale.................................................................................................................................14
Chapter -02: Create a Business Concept.......................................................................................16

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2.1 Outline of creating new business.............................................................................................16
2.2. Create a Business concept statement......................................................................................16
2.2.1 Green Chinese House Product & Services Description....................................................17
2.2.2. Green Chinese House open hours and staff management...............................................17
2.2.3. The Green Chinese House breakfast set menu....................................................................18
2.2.4. The Green Chinese House Lunch and Dinner menu.......................................................18
2.2.5. Green Chinese House exceptional occasion service........................................................21
2.2.6. Green Chinese Restaurant Home and office delivery service.........................................22
2.3. Green Chinese Restaurant Market Segmentation, Targeting and Positioning.......................22
2.3.1. Green Chinese Restaurant market segmentation.............................................................22
2.3.2. Green Chinese House demographic market segmentation..............................................23
2.3.3. Green Chinese House psychographic market segmentation............................................23
2.3.4. Green Chinese House behavioural market segmentation................................................23
2.3.5 Green Chinese House Geographical market segmentation..............................................24
2.3.6. Green Chinese House target customers...........................................................................24
2.3.7. Product Positioning..........................................................................................................25
2.3.8. Perceptual mapping for creating a new business.............................................................26
2.3.9 The Green Chinese Restaurant Value added service for the clients.................................26
2.4. The Green Chinese Restaurant investment and partners’ information’s............................27
2.4.1. The Green Chinese Restaurant management and staff structure.....................................27

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2.4.2. The Green Chinese House External partners...................................................................28
2.5. Marketing mix........................................................................................................................29
2.5.1. Products...........................................................................................................................29
2.5.2. Price.................................................................................................................................29
2.5.3. Place.................................................................................................................................30
2.5.4. Promotion mix.................................................................................................................30
2.5.5. People..............................................................................................................................31
2.5.7. Physical evidence.............................................................................................................31
2.6. Window of opportunity.......................................................................................................32
2.7. Industry attractiveness............................................................................................................32
2.7.1. Industry attractiveness analysis with porter five-force theory.............................................32
2.7.2. Industry competition........................................................................................................32
2.7.3. New entrance threat.........................................................................................................32
2.7.4. Customers power.............................................................................................................33
2.7.5. Supplier power.................................................................................................................33
2.7.6. Market substitute.............................................................................................................33
2.8. Legal possibility for the new business....................................................................................33
2.9. Market analysis for Green Chinese House business plan.......................................................34
2.10. Feasibility study for Green Chinese House business proposal.............................................34
2.10.1. Product and service feasibility.......................................................................................34

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2.10.2. Technical Feasibility......................................................................................................35
2.10.3. Organisational Feasibility..............................................................................................35
2.10.4. Resources feasibility......................................................................................................35
2.10.5 Financial feasibility............................................................................................................36
2.10.6 The total investment and partner contribution................................................................36
Total Investment and Partner Contributions for Green Chinese Restaurant.................................36
2.10.7: Yearly Promotional Budget for Green Chinese Restaurant:.............................................38
For the year 2019...........................................................................................................................39
2.10.8 Financial Statement for the year 2019:...........................................................................41
2.10.9 The Balance Sheet..........................................................................................................43
Balance Sheet for Green Chinese House 2019:.............................................................................43
Chapter 3-Feasibility Research......................................................................................................45
3. Research Methodology..........................................................................................................45
3.1 Research Onion........................................................................................................................45
3.2 Research Philosophy................................................................................................................46
3.3 Research Design......................................................................................................................47
3.4 Research Approach..................................................................................................................48
3.5 Research Method.....................................................................................................................49
3.6 Data Collection Method...........................................................................................................49
3.7 Sampling Technique................................................................................................................50

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3.8 Sampling Size..........................................................................................................................50
3.9 Time Horizon.......................................................................................................................50
3.10 Data Analysis.........................................................................................................................51
3.11 Reliability and validity of the research..................................................................................51
3.12 Ethical Consideration.............................................................................................................52
Chapter 4 – Strategic Analysis......................................................................................................53
4.1 Data Analysis and Market Attractiveness for Green Chinese House......................................53
4.2 Strategies and Capability analysis for Green Chinese House..................................................54
4.3 PEST Analysis for Green Chinese House...............................................................................54
4.3.1 Political factors analysis for Green Chinese House..........................................................54
4.3.2 Economic factors Analysis for Green Chinese House......................................................55
4.3.3 Social and cultural factors Analysis for Green Chinese House........................................55
4.3.4 Technological factors analysis for Green Chinese House................................................55
4.4 SWOT Analysis for Green Chinese House.............................................................................56
4.5 Value Chain and competitive advantage.................................................................................57
4.5.1 Inbound Logistics activities..............................................................................................57
4.5.2 Operations Activities........................................................................................................57
4.5.3 Outbound Logistics Activities..........................................................................................57
4.5.4 Marketing and sales activities...........................................................................................58
4.5.5 Service activities...............................................................................................................58

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4.6 Ansoff Matrix..........................................................................................................................58
4.6.1. Market Penetration...........................................................................................................58
4.6.2. Product Development......................................................................................................59
4.6.3 Market Development........................................................................................................59
4.6.4 Diversification..................................................................................................................59
4.7. VRIO framework analysis for Green Chinese House.............................................................60
4.8. Business Canvas Model..........................................................................................................61
4.9. Competitor’s analysis for Green Chinese House....................................................................64
Chapter 5 – Business Plan.............................................................................................................66
5.1 The industry, company and products.......................................................................................66
5.2 The market place and location for Green Chinese House...................................................66
5.3 Cost and Profit Analysis......................................................................................................66
5.4 Marketing plan for Green Chinese House...............................................................................67
5.4.1 Company direction............................................................................................................67
5.4.2 Business Logo for Green Chinese House.........................................................................68
5.4.3 Vision for Green Chinese House......................................................................................68
5.4.4 Mission for Green Chinese House....................................................................................68
5.4.5 Objective for Green Chinese House.................................................................................69
5.5 Internal marketing................................................................................................................69
5.6 External marketing...............................................................................................................70

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5.7 The development plan for Green Chinese House....................................................................70
5.8 The marketing plan for Green Chinese House........................................................................71
5.9 The Management and operations plan.....................................................................................71
5.10 The Human resources recruitment plan for Green Chinese House.......................................71
5.11 The Risk Assessment.............................................................................................................73
5.12 Critical Success Factors.........................................................................................................75
5.13 The implementation schedule for Green Chinese House......................................................76
5.14 Conclusion and Recommendations for new business proposal.............................................77
5.15 Financial Projections.............................................................................................................77
5.15.1 Financial Statements of Green Chinese Restaurants......................................................77
5.15.2 Sales and Net Profit Projections.....................................................................................79
5.15.3 Balance Sheet Statements...............................................................................................82
Balance Sheet for Green Chinese Restaurant:...............................................................................82
References......................................................................................................................................85
Bibliography..................................................................................................................................91
Appendices....................................................................................................................................97
Appendix A................................................................................................................................97
Appendix B................................................................................................................................98
Appendix C....................................................................................................................................99

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Chapter – 01:Introduction
1.1 Terms of Reference
In Bangladesh, fast-food restaurant industry is growing as the increasing population of
millennial, preference of people to dine out and busy working schedule are the reasons behind
this. The customers’ food choices and preferences have been going through alteration. Changing
demand in the Bangladeshi population in food choices is noticed. Fast food culture in
Bangladesh started in the late 90s and competition is increasing rapidly. This new venture mainly
focuses on Chinese food items and it has chances to be successful as Bangladesh is globalising
and it shows an increase in population (Lang and Heasman 2015).
1.2 Rationale of the study
The fast food restaurant industry is providing the significant portion of employment in
Bangladesh. Between 2008 and 2015, the fast food restaurant industry in Bangladesh observed
rapid growth at 7.8% per annum (Leonidou et al. 2013). The fast-food industry in Bangladesh
employs almost 2.5% of whole Bangladesh's total labour force. Competition in the fast food
industry is high and the competitions are based on price, location, franchisee and food quality. In
the Bangladesh, the food preferences of the people are changing and positive facts of the industry
are nutrition value, healthier alternatives and children’s meal.
1.3 Outline New Business concept
The green restaurant is a new concept in the fast food industry in Bangladesh. The new
restaurant business is going to open at Dhaka, in Bangladesh. This is going to be a fast food
restaurant and focus will be on Chinese food items. This restaurant will provide rooftop facility