Opportunity Analysis Report: Fast Frites Entrepreneurship Venture

This report presents an opportunity analysis for Fast Frites, an entrepreneurial venture planning to establish a fast-food outlet in Singaporean malls. It highlights Singapore's stable political and economic environment as advantageous for the business. The report includes an external environmental analysis, indicating a progressive environment beneficial for investment, and an industry analysis revealing existing and potential competitors. Key aspects covered are supplier selection, the importance of skilled cooks, and the financial feasibility of the venture, outlining capital sources and loan requirements. The analysis concludes that the venture is financially feasible and poised for success in Singapore's dynamic fast-food market.

MARKETING

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EXECUTIVE SUMMARY
This report presents the entrepreneurial idea of fast frites about opening their venture in the
malls of Singapore. Since Singapore is an emerging country with stable political and
economic environment hence this company will not face serious challenges in stabilising
their business. This report shows the overall external environment of the company. This
external analysis shows that they have a stable and progressive external environment that will
benefit the firm in their investment. This report also shows the analysis of the industry and
from the analysis it is found that there are lots of players exist in the industry and there are
many more to come. There are large numbers of suppliers available but the company needs to
select the suppliers that offer raw materials of high quality. Company needs to hire cooks
who have an excellent knowledge about cooking and especially making of the sauces of
different types. At last this report showcases the way their idea is financially feasible for them
as this venture has the enough of capital sources to implement their strategies and plans and
the rest amount will be taken in the form of loans.

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Content
s
INTRODUCTION......................................................................................................................3
Environment Analysis................................................................................................................3
Industry Analysis.......................................................................................................................5
Key People and Skills................................................................................................................7
Financial feasibility....................................................................................................................8
Conclusion..................................................................................................................................9
REFERENCES...........................................................................................................................9
APPENDICES..........................................................................................................................11

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INTRODUCTION
Singapore is one of the fastest developing nations having a great scope for the activities
related to food industry (Ng, 2012). With the fast changing society in the nation, demand of
fast food at crowded places. Many entrepreneurs have come up with their idea of business. In
this regards Fast Frites is another similar venture that aims to provide snacks at the cheapest
of rates. With the aim of becoming one of the most successful outlets of Fast food this
venture offers Delicious Belgian Fries with signature sauces.
Environment Analysis
Business environment in Singapore has changed considerably and these changes have a great
impact on the entrepreneurial activities going on in the industry. With the changing food
habit like looking for more snacks types of food shows that company will have good
opportunity for its venture (Department of Statistics Singapore, 2016). This trend is also
supported by the fact that number of youngsters in the country has increased especially the
ones that are studying in colleges and schools (Schaper, et al. 2014). Along with this, number
of people who wants to enjoy at the shopping centres have also increased, they want to come
enjoy a different kind of snacks.
In the coming future Singapore expects to notice an increase in the numbers of tourist coming
in the country (Henderson, 2017). Along with this the fast food market is also expected to
enhance hence indulging in the business of Belgian Fries could be a good option for the
entrepreneurs.
Some of the factors that are going to effect the business environment in the coming years are
as follows:
 Political: With the stability in the government it is easier for the entrepreneurs to
invest in the country (Catherine Henderson, 2014). The rules and regulations by the

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government are also favouring new ventures to come up. They have made changes in
the rules and regulation so as to make the investments easier but this venture will have
to look for the changes in that were made in the food safety and health law. Since the
types of food that Fast Frites will serve will have health implication to some extent
hence they need to adhere to the regulation related to it in the country.
 Economic: There is huge stability in the economic condition of Singapore and the
perfect example of it was seen at the time of recession of the 2009 (Olise, Okoli and
Ekeke, 2015). As the world was experiencing a downfall in the economy the
economic condition of Singapore was stable even better than America (Tan, 2016).
There is a controlled inflation in the country which promotes them to make more
purchases.
 Social: Society’s food habits have changed and demands for the food variety of
different tastes have also increased. More preference is given to the local taste and
hence stabilizing themselves with different tastes will be a challenge for the company
(Nezakati, Kuan and Asgari, 2011). But the society has acceptance for all the kinds of
culture and their eating habits hence Fast Frites will not face much bigger problems in
this regards.
 Technological: Singapore has an advanced technological environment and hence
companies will have to ensure that they take use of best of technologies so as to do
their business (Henderson, 2010). As they do not have enough of resources to do
traditional marketing hence for creating buzz use of technological platforms can be
very much essential. Since their major target market is youngsters hence the use of
social media technologies can be very much effective. Use of technology will also
help them in maintaining their quality (Wonglimpiyarat, 2013). Use of data
management system will be beneficial for the company especially when it is
concerned with decision making. Sales can also be improved with the help of online
technologies and distribution coupons and free bees.
 Legal: Legalities related to consumer and employment has changed which resulted in
their empowerment. Singapore has a strict health laws which might act as a challenge
for opening up the shop at different locations (Namin, 2017). Labour laws have a
direct impact on the minimum wages and the timings of the employees.
 Environmental: In recent years, Singapore has been one of those countries which have
given special attention towards environmental factors (Whitton, et al. 2014). Fast
Frites will have to give special attention towards packaging and proper waste

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management so as to ensure that they do not face any kind of environmental
challenges.
Industry Analysis
In the modern day business environment, it is very much essential to analyse the industry so
as to position the offering of the company appropriately. This is also crucial for facing the
competition and taking the decisions based on the industry trends that could help in ensuring
the success of your new venture (Gomez and Hsiao, 2013). Industry must be analysed on the
basis of various terms. For new venture it is always crucial to segment their market
appropriately. This helps them in making strategies that helps in targeting and positioning
themselves as per the requirement.
Segmentation and Targeting for Fast Frites is provided in the table:
Types of Segmentation Segmentation criteria Target segment
Geographic Density Urban
Region Domestic
Demographic Gender Male and Female
Life cycle stage Bachelor and married both
Age 8-40
Occupation Professionals, Employees
and Students
Income Middle and low Income
Behavioural Degree of Loyalty Switchers
Benefit sought Time efficient and cost
benefits
Personality Careless and easy going
people
User status Regular and potential fast
food lovers
Psychographic Lifestyle Strugglers and Mainstream
people, tourism lovers, fun
loving people.

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Social Class Working, lower and middle
class
All these segments have been highlighted based on the data that is collected from the
business reports by the already established competitors in the market. Along with this
company has positioned itself as a company that offers its products at lowest of rates. They
have also positioned itself as a company that is capable of meeting the taste needs of the
people in Singapore that too at the lower prices. Their positioning statement states “Fries is
not the only thing that we serve” which is capable of attracting the people that looks for some
special taste with a time to celebrate.
In the analysis of the market, it can be said that company is needs to focus on the people of
younger age. This is in between the age of 8-to 40 years. There are two considerable reasons
for it first that they are in huge numbers in the country and they love to have fast foods. Their
frequency of making the purchase is also high as they visit the shopping malls regularly.
Since this venture aims to offer Belgian fries with multiple type of sauces hence they will
require suppliers of different types of ingredients. Along with this they will also need
efficient chef and it will not be a problem as there are many good chefs just graduated from
the colleges of Singapore.
Company aims to use blue ocean strategy so as to create a space for themselves. This can be
done with the help of sauces as they have all their own type of taste as most of their
competitors have looked towards adding ingredients to the fries. The USP of this venture is
the taste that is served with the help of various types of spices. Our competitors have till now
created value in terms of prices which this venture is going to challenge in the coming years.
Porter five force analysis of the company:
 Bargaining power of suppliers: It remains on the lower side as lot of suppliers are
available in this area. Many national and international suppliers are available with the
company that is supplying high quality raw materials (Mok, 2015).
 Bargaining power of customers: It is on the higher side as people have lots of choices.
There are some big names in the industry that is offering products at lower rates
(Henderson, 2016).

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 Threat of competitors: There are large numbers of competitors in the market. Some of
them are operating at national and some are operating at international levels (Hudson,
Roth and Hudson, 2015). This will make difficult for the Fast Fries to improve its
market share. This makes the threat high.
 Threat of new entrants: Since the cost of investment in Singapore’s small restaurants
industry is less hence this threat is on the higher side (Nigam, 2012). More investors
are looking for such investments hence the threat seems to increase.
 Threat of Substitute: There are large numbers of substitute available in the market.
With large numbers of fast food options available in different competitor’s outlets,
this threat also remains to be on the higher side (Chua and Bedford, 2016).
Key People and Skills
The organisational structure of the company is flat and has two levels. Mr Jones is the
business development and accounting head in the company. Mr Henry is the head of the
human resource department head in the company. Company will have two cooks and two
cashiers.
Mr Henry needs to have skills related to proper management of the human resource at the
workplace. This includes using both traditional and technical ways of managing the records
and data about the people. On the other hand Mr Jones needs to have different types of skills.
First Mr Jones needs to have a good communicational skill and second he needs to have
excellent command on the internet mediums for doing marketing and other business
operations. For business development, he needs to have idea about social media management
so that visibility of the company must be improved. Mr Jones must have the skills of using
accounting software so as to maintain the accounting properly. He also needs to have strong
and creative decision making power so that they are able to make decisions that help in fast
and speedy expansion of the business.
Apart from this cooks must have the knowledge about different recipes and must be skilful in
making the Belgian fries. They must also need to have skills to learn new kinds of foods
especially when it comes to perfectly using spices for the making of the sauces. Cashiers need
to have skills related to the management of accounts especially proper handling of POS
systems. They also need to have good communicational skills so as to serve the customers
appropriately.

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Financial feasibility
It is understood as the level to which the company will be able to make financial
arrangements so as to implement their business idea. This takes account of the financial
resources that will be required for actually making the projects done (Gomulya, et al. 2015).
This feasibility analysis is necessary to be done before actually making any kinds of
investment so as to ensure that investments do not go in vein. Making strategies under
financial capability always helps an organisation to improve its success ratio (Wang, et al.
2014). Financial feasibility of the company for the initial process such as research and putting
money in the business development programs is good.
Financial Feasibility
Year
1 2 3
Sales 3,50,0
00
7,10,0
00
8,40,0
00
Less: Cost
of sales
21000
0
39050
0
42000
0
Gross profit 1,40,0
00
3,19,5
00
4,20,0
00
Less:
Administrat
ive and
other costs
70000 14200
0
16800
0
Net profit 70,000 1,77,5
00
2,52,0
00
Net margin 20% 25% 30%
It is assumed that cost of sales is assumed to be 60% of sales in the first year and 55% and
50% in the next two years. Further, the administrative and other costs are assumed to be 20%
of sales. The financial feasibility of the company seems to be good as the net margin is
assumed to be increasing in the coming years by around 5% hence this will increase the
overall profit of the company.

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Conclusion
From the above based report it can be concluded that Singapore is one of the excellent
countries for the ventures like Fast Frites. They aim to serve Belgian fries at one of the
cheapest rates in the market. They are opening their stores in the malls. Their major target
customers are youngsters and especially the ones that love fast food at cheaper rates. Its
sauces of different varieties give them a competitive advantage over the rivals. The external
environment of Singapore is investment friendly and it the economic and political condition
in the country will also supports the ventures like Fast frites. Threat such as competitors, new
entrant and substitutes are on the higher side. At the same time bargaining power of suppliers
is weak and the bargaining power of customers is on the higher side. The company needs
employees having good skills in their respective job roles. This company is also financially
feasible to implement to implement its plan.

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REFERENCES
Catherine Henderson, J., 2014. Food and culture: in search of a Singapore cuisine. British
Food Journal, 116(6), pp.904-917.
Chua, H.S. and Bedford, O., 2016. A qualitative exploration of fear of failure and
entrepreneurial intent in Singapore. Journal of Career Development, 43(4), pp.319-334.
Department of Statistics Singapore, 2016. Food and Beverages Services Industry. [Online]
Available at: https://www.singstat.gov.sg/modules/infographics/food-and-beverage.
[Accessed on 18th January 2019]
Gomez, T.E. and Hsiao, H.H.M. eds., 2013. Chinese business in Southeast Asia: contesting
cultural explanations, researching entrepreneurship. Routledge.
Gomulya, D., Chernyshenko, O., Uy, M.A., Francis, W.L.K., Moon-Ho, R.H., Yin, C.K. and
Ong, H.L.C., 2015. Entrepreneurship in Singapore: Growth and challenges. In The
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Henderson, J.C., 2017. Street food, hawkers and the Michelin Guide in Singapore. British
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Mok, K.H., 2015. The quest for global competitiveness: promotion of innovation and
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Namin, A., 2017. Revisiting customers' perception of service quality in fast food restaurants.
Journal of Retailing and Consumer Services, 34, pp.70-81.
Nezakati, H., Kuan, Y.L. and Asgari, O., 2011. Factors influencing customer loyalty towards
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Development (Vol. 10, pp. 12-16).

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Ng, P.T., 2012. The quest for innovation and entrepreneurship in Singapore: strategies and
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Olise, M.C., Okoli, M.I. and Ekeke, J.N., 2015. Factors influencing customers patronage of
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Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
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APPENDICES
Composition of fast food industry in Singapore