Comprehensive Analysis of App Development in the Food Industry

The assignment presents a comprehensive analysis of an innovative food app designed to streamline food distribution. The study evaluates pricing models, market strategy, startup costs, competitive advantages, and potential for growth and expansion. Financial projections such as IRR and ROI are analyzed, alongside the team's capability in developing and marketing the app. Key actions such as research, capital sourcing, and product launch strategies are outlined to assess the feasibility of this venture.

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MBA assignment
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MBA assignment 2
Question 1.
The pricing of this app is highly rated as a very unique and highly applicable in the industries
dealing with food products and community surrounding these industries (Nolan, 2015). This
product is highly competitive. Basing the product in terms of dollar percentage markup and gross
margin per unit, we find this product very profitable once the venture is in progress. Markup
relate to sales and gross profit while margin relate to cost of sale and gross profits. Therefore,
there is perfect positive correlation between the product and the profit indicated by markup and
gross margin per unit.
Question 2.
This app need to be initiated due anticipated demand by the customers. There is minimum
resources required to initiate the app.
i. Product or service development. This will require the general views and proposals of
services that the product is expected to provide. Once this is established, the product is
ready for development (Phillips, 2017).
ii. Capital equipment. The capital needed to venture this product to the ready available
market will include capital for research, payment of skilled manpower and for securing a
patent and copyright.
iii. Raw materials. The main raw materials for this app is the human expertise. They will use
other software and hardware tools to develop the app.
iv. Market research. There is anticipated market for this product. This include restaurants,
shelters, non-profit organizations, grocery stores and cafeterias with food banks.
v. Sales expense. This is the initial cost that will be used when selling the product. This
involves payment of sale representatives.
vi. Overhead. The salaries, insurance and rent will be required for the product development.
The initial resources for this overhead costs can be borrowed from financial institutions.
vii. Other relevant startup costs. These costs would include advertising costs, marketing costs
and costs of updating the app.

MBA assignment 3
Question 3.
The total capital required to put the venture in to progress will involve salaries, rent, research
cost, and other subsidiary expenses. The estimated costs could be about $ 80,000. The main
source of this capital will be members’ contribution. This contribution will indicate the share
capital of individual member. Any additional capital will be borrowed from financial institutions.
Question 4.
We intend to to have full control of the market. There will be no over pricing since the costs of
acquiring the product will be agreed and a common standard will be set. The distribution of the
product will be from the certified sale representatives and company official page.
Question 5.
This venture of this product will have several cost advantages. For now, there no anticipated cost
disadvantages. In production process, there are few raw materials needed for the venture. For
marketing, there is ready market that displays a huge gap that need to be filled. Distribution is
very friendly since the product can easily reach the buyers from our official page.
Question 6.
The competitive advantage for this venture is the huge gap that exist for this product. This is a
unique app that has not been developed in the past. Therefore, if it is well presented to the
market, a lot of profit can be generated.
Question 7.
This kind of venture is subjected to corporation tax. This tax is filed on profits generated. It is
usually rated at 30% (Mathias, 2016). Therefore profit after tax will be subjected to sharing
based on individual share capital.
Question 8.
The anticipated time to break even will be two months after the venture. Due to the high demand
for this app, we anticipate huge profits in the first two months. This will enable us to clear any

MBA assignment 4
loan from financial institutions and other expenses. There after the profit generated will be more
than monthly costs.
Question 9.
The cash flow is anticipated to be positive in the sixth month. At this time, the product will have
full control and all the requirement for the app will have been met. Thus, no more cash demand
for the app will be required. This has been achieved by conducting time series analysis trends
and forecasting.
Question 10.
Basing the income/expense from case studies, the monthly income will likely exceed the
expenses. This is because, as consumers use this app, money is generated. The only expense
expected will be maintenance of the app which is done once at a given period of time.
Question 11.
There is huge profit potential compared to the capital investment. Therefore, return on
investment financial ratio will be favorable. Assuming the app is sold for $100, then we require
800 users to get back the initial capital invested. This is reasonable figure.
Question 12.
This venture does not require large capital investment. The main investment is skilled human
expertise. The maintenance and application of this app is not so involving. Therefore there is no
need of outsourcing equipment, land or buildings.
Question 13.
IRR is a technique used in capital budgeting. The time value of money for this project will
depend on the profit generated each month. By comparing the venture to similar ventures, this
project has higher IRR (Keur, 2017). This project therefore is preferred to the previous case
studies.

MBA assignment 5
Question 14.
The expansion and viability of this project is very high. The cash flow is very high since the
services offered by this app are applicable every day. This provide room for growth and
expansion. Apart from the monthly needs, this venture ensures food security and distribution.
Therefore, any point of exit is null and void.
Question 15.
By looking at Apple iphone 7, in the first year of announcement, there was low sales of the
phone (Griffith, 2017). However, three years later, the stock price increased. Therefore, this
venture is expected to have high valuation in the next 3 to 5 years.
Question 16.
The team for this project have vast skill in computer programming, marketing and management.
Others have been involved in executing similar ventures in the last 5 years. Therefore, with total
confidence, I believe this team will produce the best app to undertake the anticipated activities.
Question 17.
Towards the launch of this app, a team is required to oversee various tasks. A project coordinator
will oversee all the progress of the entire venture (Clifton, 2015). A marketer will be involves in
sales of the product. A computer software engineer will be the chief expert in maintenance of the
app.
Question 18.
These team member need to be fully compensated for their active involvement in the venture.
The plan for compensation will be contractual in nature. Since they gave members contribution
during the start of the venture, the venture will be based on share contribution. This venture is
unique in the sense that, the target market will be able to dispose food at a profit by selling to the
consumers. This app will make easier to get resources available.
1. This venture does not have any fatal flaws due to its uniqueness.
2. The underlying assumption is that the customers are technologically enabled.
3. a) Conduct research.

MBA assignment 6
b) Value the result from the research.
c) Source for a team.
d) Agree on various ideas to develop the project.
f) Contribution of capital.
g) Sourcing any additional capital from financial institutions.
h) Division of labor and specialization.
i) Valuation of work done by each team member.
j) Testing the workability of the app.
k) Launching the app to the market for consumption.
7. However, these actions are not feasible. For now, there is not business plan to generate.

MBA assignment 7
References.
Clifton, I.G. (2015). Android User Interface Design: Implementing Material Design for
Developers. Addison-Wesley Professional.
Griffith,D. (2017). Head First Android Development: A Brain-Friendly Guide. O’Reilly Media.
Keur, C. (2017). IOS Programming:The Big Nerd Ranch Guide. Big Nerd Ranch Guides.
Mathias,M. (2016). Swift Programming. The Big Nerd Ranch Guide. Big Nerd Ranch Guides.
Nolan,G. (2015). Agile Android. Apress.
Phillips, B. (2017). Android Programming: The Big Nerd Ranch Guide. Big Nerd Ranch Guides.