Innovation and Entrepreneurship Assignment: Business Plan Report

This report presents a comprehensive business plan for a themed restaurant called 'Layers of Heaven'. It begins with an introduction to innovation and entrepreneurship, emphasizing their close relationship and the importance of new ideas and concepts. Task 1 focuses on the business idea development, highlighting the concept of a themed restaurant designed to provide a unique experience through its architecture, music, and overall atmosphere. Task 2 delves into the business plan, including a detailed market analysis identifying the target market, its characteristics, and customer needs. The report also covers industry analysis, operational details, a SWOT analysis, and financial requirements. The market analysis assesses the size, value, geographic location, and demographic details of the target market. The industry analysis examines the UK restaurant industry, its growth, and the impact of the COVID-19 pandemic, along with Porter's five forces. Operational details cover employee training and task delegation. The SWOT analysis evaluates the business's strengths, weaknesses, opportunities, and threats. The report concludes with a financial requirement section and relevant appendices, including an income statement and cash flow statement.

Innovation and
entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Business idea development.........................................................................................................1
TASK 2............................................................................................................................................2
Business plan...................................................................................................................................2
Market analysis...........................................................................................................................2
Industry analysis.........................................................................................................................3
Operational details......................................................................................................................5
SWOT analysis...........................................................................................................................5
Financial requirement.................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
Appendices.....................................................................................................................................10
Income Statement......................................................................................................................10
Cash Flow Statement................................................................................................................11

INTRODUCTION
The innovation and entrepreneurship is effectively and closely related to each other and
its contrast of it innovation is completely related to the bringing of new ideas and concept with
this social invention so that customer get better product and services on regular period of
constrained as with this sustained amount of changes is attained with adequateness (Kim and
Jang, 2019). The report below is based on the new business i.e. a themed restaurant and named
as “Layers of Heaven”. In addition, the business idea development is based on incremental
innovation as with this wider competitive advantage is attained by business on regular manner.
The report below comprises of business idea development and a business plan consist of market
analysis, industry analysis, operational detailing, SWOT analysis and financial requirement.
MAIN BODY
TASK 1
Business idea development
Innovation is always being necessary for an entrepreneur as with this they have comes up
with effective creation of something new under which improvised and changed product and
services is offered to the customer base and it is in concern of gaining of strong competitive
advantage. In this new business is developed that is of named as “Layers of Heaven” and it is a
themed restaurant that worked to fulfil the priority of the business that is influenced with
prospect of food, music, architecture so that effectual presentation is provided to attract more of
the potential customers.
The business provide a sustained amount of change within the provide a space that is
completely looks like heaven and also get architect with the same theme. It also offer a
memorable experience to the customers as the services are taken by the people with having fairy
and seems to be most attractive aspect as well (Moreno and Tejada, 2019). Moreover, a foggy
white platform is processed that provides a clear look as per heaven and entire restaurant is
painted like a flourisher with this systematic change is resultant with effectiveness. There are
certain benefit that is attained by the theme based restaurant and it is dependent over the potential
to attain higher profit in presence period of instance in this sustained creation and introduction of
unique and creative change is induced in balanced manner.
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TASK 2
Business plan
Market analysis
It is an analysis that provide clear evidence about the incremental innovation with this
possible range of benefit is attained as per continuous basis. It is also be referred as the small and
sustained improvements within the goods and services that is already offered in the marketplace
with productiveness. In addition, the low cost improvements and advancement is used to build
advantage as by differentiating the services from market offering so that probability to make
productive improvisation in offered products is processed on regular basis.
The customer need is to get a favoured amount of service that is of better quality and with
reasonable price and for that customer is also being ready to pay adequate amount (Ogunmokun
and et. al., 2020). The business and its management must have worked to assure about to fulfil
the need and demand of marketplace with this continuous range of benefit is attained with
regularity. The management of “Layers of Heaven” worked over business planning and with this
target the wider marketplace and age group of in between 16-60. Furthermore, there are various
characteristics as well and that is as explained below as:
Size: The “Layers of Heaven” is basically of medium size that have a strength of 50-60
number of people along with that also be used for a normal parties as have a space of DJ and
wider sound.
Value: “Layers of Heaven” is having a wider values and proposition as with this provide
an additional range of service so that working possibility and ability to attract more of customers
is processed in relative manner.
Geographic location: The geographical basis is based on the location that is usually in
connect with wider amount of people. It is an aspect that is also being used to make clear
correspondence about the relative location that is more likely to be in relative to respective
surround such as availability of other business and a crowded location (Cavusoglu, 2019). For
this “Layers of Heaven” assure to open the business at a location near by place where gathering
of people is more usual. For this selective location is near by a community parks or theatre.
Demographic details: The “Layers of Heaven” and its management segment the
marketplace on the basis of shared characteristics that consist of age, income, educational
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background, race, religion and behaviour of customers so that proficient amount of changes are
attained as by maintaining clear target towards aspiration, value and attitude of customers. In
addition, it is also be in respect of population segmentation that is dependent over behaviour of
potential customer such as buying habit and digital behaviour as it defined the likelihood of
business in newer marketplace.
The planning of business is processed to expect certain range of growth and development
with this sustained amount of goods and effective services are provided to the marketplace with
this beneficial range of growth is achieved in timely constrained (Halawa and et. al., 2020).
Industry analysis
The restaurant industry within UK is undergone with concern of growth prior and it is
due to impact of pandemic or COVID 19 (Restaurant industry in the United Kingdom (UK) -
Statistics & Facts, 2021). The economic recession also induced negative impact and deduction
over the investment of customer and for even before this the restaurant also get struggled to
survive as due to over saturation consumer spending and its likelihood both get reduced.
The industry basically get down pose due to customer serving and it also get comprise of
both licensed and unlicensed restaurants and it in combine take away its establishment. In
addition, the value of restaurant in UK is having an expectation to measure a growth of 32.1%
and with this ability to reach towards £11.7 Billion as in 2021 and back with the market
contraction of 53.1%. In regardless, of all the UK government also take an initiative to maintain
a roadmap as with this recovery option and its transition get affect in positive manner. It is also
being used to make clear anticipation about to induced sustained encouragement under which
market offering and its attentiveness both get controlled in timely constrained.
The public of UK also being more focused and concern about healthy food but with this
also likeable to go to restaurants and it is an anticipation about to induced wider role so as to
reassure about customer base and its attentiveness (Lounsbury and et. al., 2019). It make
profitable and balanced platform for the new business named as “Layers of Heaven” and in this
terms and condition management always assure about to make a change in respect of recent
condition. In this induced product and services are directly in relation to customer attentiveness
and likelihood so that ability to perceive higher benefits is processed on regular basis. The
working tendency and its suitability is used to measure sustained outcome for this possibility to
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encourage and advance working in productive manner is processed with this market availability
and its relative consequences get enhanced in successful manner.
Porters five force: It is an analysis that provide clear basis about the certain dynamic of
industry and its impact over “Layers of Heaven” and it is as briefly explained below as:
Threat of new
entrant
The initialisation of business is processed as per concern of modern range of
investment that is in concern of economy of scale and also induced direct
impact over achieving of operational efficiency (Bhagavatula, Mudambi and
Murmann, 2019). It is a basis that has less impact over “Layers of Heaven” as
it itself a new business and looking forward to implement favoured changes.
Bargaining
power of buyer
It induces higher impact over the buyers thus having higher influence as well.
The buyer basically get influenced with the pricing decision of an organisation
and with this switching behaviour and buyer choice get affects on direct basis.
In this “Layers of Heaven” worked on to target the audience with accordance
to target market so that affordability get advanced in moderate manner.
Bargaining
power of
supplier
The supplier provide raw material to the restaurant such as equipments,
machinery, spices and other essential products as well. In has lower influence
as there are various supplier in the market and management target the one as
per appropriateness.
Threat of
substitute
product
It is an entity that make easiness for customers and make productive choice in
between different restaurants. Thus it has higher influence over the working
under which premium price is focused by “Layers of Heaven” along with
maintaining direct focus towards quality advancement.
Competitive
rivalry
There are many competitors in the marketplace such as The Ledbury, Chez
Bruce, The French Table and many others. They all have worked harder to
gain favoured competitive advantage as for this possible range of benefits also
get offered by businesses (Nambisan, Wright and Feldman, 2019). Thus to
maintain its sight “Layers of Heaven” seek to gain adjustive amount of benefit
so that long term growth and sustainability is attained in successful manner.
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Operational details
The operational basis comprise of different activities that is required to carried a perfect
involvement of customer service, purchasing of raw material, reporting, accounting, cleaning and
food preparation. The operational concept of a restaurant assist the different set of task and
activities to perform and accomplish in comprehensive manner in this need and demand of
marketplace is processed in effective manner (Cunningham and et. al., 2019). In concern of
“Layers of Heaven” different operations get performed in clear basis and that is as explained
below as:
Makes Employees All-Rounders: It is an aspect and operation within this management of
“Layers of Heaven” assure to provide balanced training and development to its employee so that
they could have able to manage and control productive working in balanced manner. The all-
rounders employee works productively and with this able to manage and control working
consequence in productive mode.
Delegating Tasks Become Easy: The task delegations and its completion is dependent
over the required time and for this management of “Layers of Heaven” assure to segment the
overall work in clear basis. It is an aspect with this overall activity segment into favoured
segment under which working proficiency and its effectiveness get controlled in measured way.
The delegation of task is used to process easy working through which tendency to achieve
standardised outcome within specific period of time is developed with progressiveness.
SWOT analysis
It is an internal analysis that is used by the business in order to make effectual evaluation
about certain position in specific marketplace so that probability of “Layers of Heaven” and its
management to strengthen its strong aspect and by working on weaken point is processed on
regular basis. The SWOT analysis of “Layers of Heaven” is as briefly explained below as:
Strength The working standards and the theme that is selected by the business is basic
strength of it and with this possibility to attract attentiveness of audience is
processed in clear manner (Si and et. al., 2020). The management target to
provide outstanding customer services as with managing both modern and
relaxed environment is localised with taste. In addition, people used to be at
there home for long time and due to this they select restaurant for fun and to
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spend a better time.
Weaknesses The economic recession due to pandemic is the biggest weaknesses that is faced
by business and due to this business take longer time to make adjustive balance
in working attribute. The working tendency and its consequences is dependent
over market sustainability and in this “Layers of Heaven” assure to analyse
overall situation and than take favoured benefit by inducing strategic implication
of goals and objectives.
Opportunity The people are more attractive towards health consciousness and to expose
maximum location with this working possibility and its attentiveness get adjust
in relative manner. For this management assure about to maintain loyal customer
base as in return of customers likelihood (Nakara, Messeghem and Ramaroson,
2019). In this “Layers of Heaven” assure to provide quality and hygiene service
along with health consciousness.
Threat The market competition and already present restaurant and hotels are the biggest
threat for “Layers of Heaven” as they have reduced the market share and profit
due to cut throat competition. All the different businesses worked to maintain
clear focus on customer likeliness and produces the same products and services
so that customer have a lot of options in this it is required that new business
must comes with strategical moves and initiative with this profitability get
increases on regular basis.
Financial requirement
It is a basis that is required for the business as with this working credibility and
possibility to make productive analysis of all the input is defined on clear basis (Kukanja and
Planinc, 2020). The start-up cost of “Layers of Heaven” is £833000 and it include all the
particular basis and it is as explained below as:
Basis Cost
Furniture £85500
Equipment £90000
Premises costs (building cost) £50000/ month
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Opening stock £2,00,000
Human resource £200000
Marketing £50000
Billing £55000
Operational cost £62500
Legal cost £40000
Total £833000
The estimated cost of sales is around £85500 in a month and an expected integrated
selling price is about £57500.
CONCLUSION
It has been concluded from the above that innovation and entrepreneurship is processed
to provide or offer something new and reluctant within the marketplace with this possible range
of benefit in terms of sale and profit is achieved successfully. The idea development is also be
processed with support of incremental innovation so that market and industry analysis is induced
in respect of suitable planning. Moreover, operational basis is being used to facilitate the
distribution network and it is induced as by examining the strength and working on weaknesses.
In addition, the financial requirement also being used to breakdown overall cost in selective
manner as with this requirement of business is developed with regularity.
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REFERENCES
Books and Journals
Bhagavatula, S., Mudambi, R. and Murmann, J.P., 2019. Innovation and entrepreneurship in
India: An overview. Management and Organization Review. 15(3). pp.467-493.
Cavusoglu, M., 2019. An analysis of technology applications in the restaurant industry. Journal
of Hospitality and Tourism Technology.
Cunningham, J.A. and et. al., 2019. The impact of university focused technology transfer policies
on regional innovation and entrepreneurship. The Journal of Technology Transfer.
44(5). pp.1451-1475.
Halawa, F. and et. al., 2020. Introduction of a real time location system to enhance the warehouse
safety and operational efficiency. International Journal of Production Economics. 224.
p.107541.
Kim, H.S. and Jang, S.S., 2019. Minimum wage increase and firm productivity: Evidence from
the restaurant industry. Tourism Management. 71. pp.378-388.
Kukanja, M. and Planinc, T., 2020. Toward cost-effective service excellence: Exploring the
relationship between managers’ perceptions of quality and the operational efficiency
and profitability of restaurants. Quality Management Journal. 27(2). pp.95-105.
Lounsbury, M. and et. al., 2019. Culture, innovation and entrepreneurship. Innovation. 21(1).
pp.1-12.
Moreno, P. and Tejada, P., 2019. Reviewing the progress of information and communication
technology in the restaurant industry. Journal of Hospitality and Tourism Technology.
Nakara, W.A., Messeghem, K. and Ramaroson, A., 2019. Innovation and entrepreneurship in a
context of poverty: a multilevel approach. Small Business Economics, pp.1-17.
Nambisan, S., Wright, M. and Feldman, M., 2019. The digital transformation of innovation and
entrepreneurship: Progress, challenges and key themes. Research Policy. 48(8).
p.103773.
Ogunmokun, O.A. and et. al., 2020. Propensity to trust and knowledge sharing behavior: An
evaluation of importance-performance analysis among Nigerian restaurant employees.
Tourism Management Perspectives. 33. p.100590.
Si, S. and et. al., 2020. Disruptive innovation and entrepreneurship in emerging economics.
Journal of Engineering and Technology Management. 58. p.101601.
ONLINE
Restaurant industry in the United Kingdom (UK) - Statistics & Facts, 2021. [Online] Available
through: <https://www.statista.com/topics/3131/restaurant-industry-in-the-united-
kingdom-uk/>.
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Appendices
Income Statement
2021 2022
Revenue 32,410.00 29,397.00
Total Revenue 32,410.00 29,397.00
Cost of Revenue, Total 22,825.00 20,860.00
Gross Profit 9,585.00 8,537.00
Selling/General/Admin.
Expenses, Total 7,924.00 7,800.00
Other Operating Expenses,
Total -101 -171
Total Operating Expense 30,648.00 28,489.00
Operating Income 1,762.00 908
Interest Inc.(Exp.),Net-Non-
Op., Total -449 -55
Other, Net 9 5
Net Income Before Taxes 1,322.00 853
Provision for Income Taxes 390 256
Net Income After Taxes 932 597
Minority Interest -45 -24
Net Income Before Extra.
Items 887 573
Total Extraordinary Items 0 1,141.00
Net Income 887 1,714.00
Income Available 887 573
Income Available 887 1,714.00
Diluted Net Income 887 1,714.00
Diluted Weighted Average
Shares 1,263.53 1,311.54
Diluted EPS Excluding
Items 0.7 0.44
DPS - Common Stock 0.46 0.57
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Primary Issue
Diluted Normalized EPS 0.7 0.44
Cash Flow Statement
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