BA Management: Evaluation of Business Plan - New Venture Creation

This assignment provides an evaluation of DLS Limited's business plan, covering key aspects such as market size and growth, customer and competitor analysis, and financial performance. The evaluation assesses the company's potential for growth within the fast-food market, its competitive positioning against major players like McDonald's and KFC, and the strengths and weaknesses of its financial statements. Ratio analysis, including growth rate, debt-to-asset ratio, earnings per share, and return on assets, is performed to gauge the company's financial health. The report also critiques the plan's content, presentation, and coherence, highlighting areas for improvement in data analysis, marketing mix, and overall strategic vision. Recommendations are provided to enhance the business plan's effectiveness and attractiveness to potential investors. The document is available on Desklib, a platform offering study tools and resources for students.

Running head: EVALUATION OF BUSINESS PLAN
Evaluation of Business Plan
Name of the Student
Name of the University
Author note

1EVALUATION OF BUSINESS PLAN
Table of Contents
Idea.............................................................................................................................................2
Overview................................................................................................................................2
Market Size and Growth............................................................................................................3
Size of the Fast Food Market.................................................................................................3
The potential for Growth of DLS Limited.............................................................................3
Evaluation of Customers Analysis.........................................................................................3
Evaluation of Competitor Analysis........................................................................................4
Financials...................................................................................................................................4
Ratio analysis of the Statements................................................................................................5
Content.......................................................................................................................................8
Presentation and Coherence...................................................................................................8
Founders and Management........................................................................................................9
Skills, Ability, and Characters...............................................................................................9
Investment Opportunity...........................................................................................................10
Recommendations....................................................................................................................11
References and Bibliography...................................................................................................13

2EVALUATION OF BUSINESS PLAN
Idea
Overview
The overall evaluation of the business plan guide will be scoring the elements of the same on
the scale of 1 to 10 wherein ten will be the best possible rating. The respective restaurant
business is currently limited liability organization, and the total shares which have been
earned by the company are 8000 shares, and the restaurant is planning to increase the number
to 10000 which is one of the positive aspects as it will help in reducing the percentage of the
shares of different members in the restaurant.
From the organization history, it can be identified that the company has grown to a
large extent in the last few years and they have gained profitability in the market as well.
However, it has been noticed that the management of the restaurant is not effective in
comparison to the other competitors and the employees are still inexperienced, and they
require to undergo rigorous training.
Lastly, the financial aspects of the company have been analyzed from wherein it can
be identified that the position of the company is stable and they can perform exceedingly well
in the competitive business environment. During the initial phase, it has been noticed that the
company acted in an exceedingly proper manner and there were huge revenues and
profitability gained by the company.
However, in the present scenario, the performance of the company is decreasing
gradually, and it requires to improve the overall situation of their business growth through
adoption of the different techniques appropriately in the competitive business environment.

3EVALUATION OF BUSINESS PLAN
Market Size and Growth
Size of the Fast Food Market
From the business plan of the restaurant business, it can be analyzed that the fast food
market chain is vast and there are various companies which are selling similar kinds of
products for the customers in the market as well. It is one of the major threats which can be
faced by DLS Limited Restaurant as the other competitors can reduce their percentage of
profitability and shares in the market.
The potential for Growth of DLS Limited
The business plan analysis has helped in understanding that DLS Limited have huge
potential for growth in the competitive business environment. The reason behind the fact is
that the restaurant has included different options for the office goers, anti-chain customers
along with the families who prefer to eat at such food joints once in a while. As the fast food
chain is vast, therefore it provides the respective organization with wide scope to meet the
different needs of the customers appropriately. However, the major potential area is the
quality of the food which is being served by them is of the highest quality, and the suppliers
can be of enormous importance for improving their overall effectiveness. The other area of
opportunity which can be gained by the restaurant is the recognition of shakes in the UK
market which will provide colossal profitability, and it will increase the overall revenue.
Evaluation of Customers Analysis
From the analysis of the market size, it can be identified that there are a varied group
of customers in the market who prefer to eat the best quality food, however at a low price. In
such circumstances, DLS Limited can be a suitable option for different customers. From the
various studies and surveys, it has been identified that majority of the households visits the
restaurant a minimum of once every three months which will be a suitable aspect for the

4EVALUATION OF BUSINESS PLAN
business to grow in the future competitive business environment (Apostolou 2019).
Moreover, the respective organization provides friendly, and cost-effective food and the
ambiance is being liked by the individuals who will be beneficial for the overall effectiveness
of the firm in the future.
Evaluation of Competitor Analysis
As per the overall business plan, it can be identified that the respective business of
DLS Limited, it can be determined that there are various competitors of DLS Limited such as
McDonald’s, KFC and Burger King who are the giants of the company and it can affect the
overall profitability of the firm. However, due to the quality of the food and the low pricing
strategy used by Eastside Burger, the sales of the other competitors have been decreased, and
it has helped the company in gaining competitive advantage.
Additionally, the supplier’s aspect is useful for Eastside Burger in which all the meat
is sourced locally, and it will be beneficial for the overall growth of the company in the
future, and they will be performing well in the competitive business environment as well. It
has been noticed that as the size of the business is small and it is easier for them to adapt to
the different changes in a quick manner. As from the overall analysis, it can be seen that the
main aim of the company will limit the store's number per city to a small amount and gain
profitability effectively.
Financials
The financial statements of any organization form a critical part of the firm and with
respect to this, it can be mentioned that it becomes considerably essential for any business to
ensure that they are presenting their financial in a manner such that it becomes possible for
the analysts as well as the different investors to get an overview of the overall business
operations (Bekaert and Hodrick 2017). Concerning this, it is required to be understood that

5EVALUATION OF BUSINESS PLAN
any business in any business environment would be necessary to ensure that they follow a
universal format concerning the statements to provide direct information to the different
investors. In the case of the given organization, DLS Limited it can be primarily understood
that the firm although portrays impressive figures of financial performance, however, the firm
has not been able to successfully abide by the universal standards of financial reporting as
clear images of the performance of the firm have not been provided. Moreover, it is also
required to be noted that, no financial statements like the Balance sheet statement, the profit
and loss account, and the cash flow statements have not been provided (McKinney 2015).
Additionally, as these figures have not been provided, it is not possible to trust these financial
projections without any relevant proofs or reports having been delivered. Hence, it would
have been much better if the firm had successfully provided the overall financial statements
of the firm to the company which would have been much better in the global analysis.
Ratio analysis of the Statements
In the given section analysis of the relevant ratios of the firm will be done as per the
financial highlights which have been provided. A summary of these financial statements has
presented the following ratio figures.
The growth of the firm
2
0
1
3
9
3
%
2
0
1
4
6
2
%

6EVALUATION OF BUSINESS PLAN
2
0
1
5
-
2
%
2
0
1
6
7
2
%
2
0
1
7
7
9
%
2
0
1
9
2
9
%
From the given analysis, it can be understood that the growth rate of the firm is falling
at an alarming rate. Previously, the organization was growing at a consistent rate; however,
currently, from the last two or three years, it can be observed that the firm`s growth has been
staggering. However, this can be stated to be a good scenario as compared to the competitive
business environment.
Total debt to assets ratio
The total debts to assets ratio are considered to be a measure of the Total liabilities
which the firm holds and as compared to it the total assets the firm holds with the help of
which one can pay off the obligations of the firm.
Total debt of the firm:
 A loan of £100,000 with Barclays Bank to be paid by end 2019.
 Overdraft facility with Standard Chartered bank of up to £1,500,000.
Hence, the total of these amounts comes up to £1,600,000.

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The total assets of the firm can be stated to be as follows:
 1 Property (Manchester) owned non-mortgaged purchased 2007 £105,000
current valuation £400,000.
 Equipment valued at £1,350,000
Total assets have come up to £1,750,000.
Hence, the total debts to Asset ratio are
=1600000/1750000
=0.914285714: 1
This can be considered to be a good figure
Earnings per share
The earnings per share can be calculated as an amount which assists in calculating the
profitability to one individual; the earnings per share are as follows:
=Net income available to shareholders/ Number of shares
= £26,800,000/ 8000
=3350£ (As per 2019)
Hence, this fair return can be considered to be a fairly good amount to each shareholder.
Return on Assets
The return on Assets is a calculated measure which can be used to measure the
amount of returns being earned by the firm in return of the assets. Hence, the calculation will
be done as follows:
=Net income/ Total assets

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=£26,800,000/ £1,750,000
=15.3149
This figure can be considered to be high and good
Comment:
Although the figures seem reasonable, the proper format needs to be followed to
ensure that the accuracy of the financial statements can be measured.

9EVALUATION OF BUSINESS PLAN
Content
Presentation and Coherence
From the overall business plan of the DLS Limited, it can be identified that the
presentation could have been better as there is no inclusion of the proper financial data which
is essential for analyzing the performance of the company in terms of the other competitors
who are present in the market. There is no inclusion of the critical elements of the business
plan which plays a crucial role in achieving the different marketing objectives appropriately.
Additionally, it has been noticed that the marketing mix of the company has not been
adequately analyzed, due to which the information has been in a haphazard manner, and it
affected the overall process of evaluation effectively.
Furthermore, it has been seen that the entire business plan did not follow systematic
format and the business plan lacked proper analysis of data and references which affected the
overall evaluation negatively. The financial statements are presented in a haphazard manner
wherein no clear picture has been gained on the market size and growth. The competitor
analysis has been another significant aspect which has been not analyzed appropriately and
therefore, the business activities performed by the organization is not apparent at any point.
The external and internal environmental analysis through SWOT and PESTEL analysis has
not been performed, and it is not clear about the different threats which are faced by the
company from the other competitors present in the market (Cant 2018). In the competitor
analysis, it has been noticed that the revenues and sales of the competitor companies have not
been analyzed which is the major missing part in the business plan.
Moreover, the problem has not been identified appropriately in the business plan;
therefore the solutions are not proposed in such a manner. The projections or milestones are

10EVALUATION OF BUSINESS PLAN
not being included in the business plan which is the other negative aspect of the plan, and the
presentation is not polished and professional. The program was not a clear and well-
conceived workable strategy for getting business, and there is no inclusion of real policy as
well. The program did not communicate the vision for the business, and there is a scope of
more improvement to review the deficiencies and make the entire project workable.
Founders and Management
Skills, Ability, and Characters
In accordance to the founders and management of the organization, it can be
identified that there are three significant positions included in the organization which
comprises of Chief Executive, Chief Technology Officer, and Chief Operations Manager.
Firstly, the skills of the chief executive officer are up to the standard, and the respective
person is trying to formalize the different business operations successfully.
Additionally, the chief technology officer has numerous working experiences in
different sectors which is the other decisive factor which can be considered and it improved
the overall stability of the working environment positively. The company has a chief
operations officer as well; however, the qualification does not suit the requirements in the
respective fast food chain.
Additionally, on the contrary, the other observation which has been made that Ffion is
one of the talented yet enthusiastic employees who will help gain the different requirements
of the organization and it will be improving the overall performance of the company.
However, there should be the inclusion of the few other employees who are experienced, and
they will be an asset for the organization as well.

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As per the opinion of the TWF Limited, the Board of Directors feel that the entire
success of the company is based on the fact that the higher officials of the company need to
appoint few more talented individuals which will be helpful for necessary for the future
growth of the company.
Moreover, as per the observations of the board of directors, it has been identified that
Bryn is perfectionist; however the thought of the person is backward which can affect the
overall growth of the firm negatively. However, on the contrary, the person is passionate
about the tasks which are being performed by him and is driven towards success as well.
Investment Opportunity
From the above analysis and evaluation of the business plan, it can be identified that
the investment can be awarded to the to the company and it would be helpful for the company
to become more competitive towards the growth shortly as well. As per the financial data
analysis, it can be identified that the firm is operating in the growing fast food industry and it
will be one of the primary reasons to invest in the respective company. The fast-casual
restaurants are the current trend in the present scenario, and they are performing
exceptionally well in the United States of America market.
As per the financial aspects of the last three years of the company, it can be identified
and analyzed that the company had strong financial growth and health which is one of the key
aspects which can be beneficial for the overall success of the firm. From the global financial
growth of the company of the past few years, the future can be identified, and the business
can flourish with the massive implementation of profit in the market as well. Moreover, the
other reason for the awarding of investment opportunity is that the management of the
company is active and they are talented enough to improve the overall growth of the
company in the fast food industry.