MBA Business Plan Report: Rainbow Roof-top Food and Beverage Centre

This business plan details the launch of Rainbow Roof-top, a food and beverage center in Sri Lanka. It includes a comprehensive market analysis, business descriptions, and strategic planning. The plan outlines core competencies like innovative service methods and diverse cuisine offerings, alongside an analysis of the external environment using PESTEL and Porter's Five Forces. It identifies opportunities such as business expansion and product diversification, and addresses potential threats like market competition and economic challenges. The report also presents a TWOS matrix to link core competencies with strengths and weaknesses, and provides a rationale for choosing Sri Lanka as the market, concluding that the country's environment is suitable for the business venture.

Running head: BUSINESS PLAN
Business Plan
Name of the Student
Name of the University
Author’s Note

1BUSINESS PLAN
Table of Contents
Task 1: Report..................................................................................................................................2
1. Introduction:................................................................................................................................2
2. Business descriptions:..................................................................................................................3
2.1 Brief profile of the proposed business idea:..............................................................................3
2.2 Identify core competencies of business.....................................................................................5
2.3 Analysis of the external environment:.......................................................................................5
3. Strategy........................................................................................................................................7
3.1 Business opportunities and threats for the organization:...........................................................7
3.2 How the threats identified can be mitigated..............................................................................8
Conclusion:......................................................................................................................................9
Reference List:...............................................................................................................................11

2BUSINESS PLAN
Task 1: Report
1. Introduction:
This study has focused to provide detailed business plan of launching a new venture in
the market of Sri-Lanka. Rainbow Roof-top is planned to spread out its business process as a
food and beverage centre. Providing superior quality of products in fast service method is the
primary mission of this new start-up. Sri-Lanka being an island nation is not economically well
developed and structured. Therefore, while launching a new business set-up the business experts
would have to focus on designing product and service quality as per customers’ needs and
demands. An estimated budget would be prepared for making human resources, financial
resources, technological resources and physical resources of the company. The study would also
evaluate necessary opportunities and threats that Rainbow Roof-top would have to face in
establishing their start-up amidst the other competitors.
2. Business descriptions:
2.1 Brief profile of the proposed business idea:
Rainbow Rooftop is designed as one of the most attractive and colourful rooftop food and
beverage centres established in the market of Sri-Lanka. The service method of delivering foods
and customer management is designed in an innovative way that can easily drag the attention of
target audience (Burns and Dewhurst 2016). With the help of advanced technology the business
experts will design Smart dining table with the help of which customers can select their menu by
touching on the screen of table. With kind of digitalization in the rooftop restaurant of Sri-Lanka

3BUSINESS PLAN
will leave a major impact in customers’ mind (Ross and Byrd 2015). Providing delicious Indian
dishes and Asian Cuisine along with mock tails and various tasty milk shakes is the core
products that Rainbow Roof-top service providers supply to its target customers.
However, in order to control the business the owner needs to form and establish a proper
business profile who can handle every department separately.
Rainbow Roof-top
Industry: Food and beverage
Head office: Sri-Lanka
Office Address: No. 65 C W W Kannangara Mawatha, Colombo 00700, Sri Lanka
Website: www.rainbow.com.sri
Business department
Human resource:
Human resource manager
Human resource executives
Finance:
Chief finance manager
Finance executives
Technical:
Technical head
IT executives

4BUSINESS PLAN
Sales:
Customer service manager
Customer service providers
Marketing manager
Marketing executive
Table 1: Business Profile of Rainbow Roof-top
(Source: As Created by the Author)
As Rainbow Roof-top is a start-up venture the business experts will hire 50 employees
for proving effective services. Those 50 employees are apart from managerial department in
Rainbow Roof-top.
2.2 Identify core competencies of business
Core competency is the management theory introduced by Prahalad and Gary (Gately and
Cunningham 2014). The overarching concept of core competency defines that every business
organization is possessed with its unique features and core values that distinguishes the company
from others (Wheadon and Duval-Couetil 2014). While establishing Rainbow Roof-top, the
business expert decides to make some distinct features within its product and services. The core
competencies of Rainbow Roof-top are as follows:
 Providing homes services to the customers in stipulated time
 Providing superior quality of Indian dishes along with Asian Cuisine
 Delivering innovative services by using Smart dining table
 Customers can place online order and receiving their services at the stipulated destination

5BUSINESS PLAN
 Employees are well trained and professional to deal with the customers
2.3 Analysis of the external environment:
While running a business process in the realm of food and beverage industry the business
experts of Rainbow Roof-top would have to focus on evaluating external environmental factors
of Sri-Lanka which are as follows.
Political Sri Lanka is a democratic and unitary nation governed by semi-
presidential system. As per the stability of political scenario, this
particular nation faces frequent changes of their business policies
(Mariotti and Glackin 2014). As a result, the business experts
would have face challenges in running Rainbow Roof-top
effectively. The corruption level of Sri-Lanka is not very high due
to transparent trade control policy. The tax rate is affordable for
running the entire process of business. The degree of bureaucracy
is highly maintained within organizations of Sri-Lanka. For an
example, before sending the sales executives in field work the
business authority compels the employees for a thorough health
check-up so that they get to know about their physical
competency. As per government structure there is a good rapport
between trade union and Sri-Lanka government. As a result,
business experts do not have to face challenges in following

6BUSINESS PLAN
government regulations and taxation policies.
Economic As already stated Sri-Lanka is not well developed in economy
(Örnek and Danyal 2015). As a result, business administrator
would have to be strategic in selecting product price (Kiznyte,
Welker and Dechange 2016). High cost product would be
challenges for the customers of Sri-Lanka in using services. Sri-
Lanka’s estimated population as per 2016 is 21.252 million. The
unemployment rate is 4% as per total labour force. It is however
expected that by 2022 the unemployment rate will be increased
due to the raise of population. Due to average population rate the
country does not have to face inflation in the business market.
Being an underdeveloped country the rate of poverty is average in
the soil of Sri-Lanka.
Socio-Cultural Around 20 million people have already spread their wings in the
soil of Sri-Lanka. However, the literacy rate of this nation is
around 92.5% which will help the company in hiring skilled labour
within services (Motoyama and Knowlton 2017). People
belonging to diverse culture and religion belong to Sri-Lanka.
The customers also maintain professional approach while using the
services. As the lifestyle of Sri-Lankan is average, the people are
possessed with moderate consuming habits.
Technological Technological availability in Sri-Lanka is high (Dempwolf, Auer
and D’Ippolito 2014). As a result, the business experts do not have

7BUSINESS PLAN
to face challenges in using Smart dining table (Brinckmann and
Kim 2015). Customers can easily access the services by operating
advanced technology. The internet accessibility and connectivity
is high. People do not have to face difficulties in using
advancement of technology. The organizations by implementing
automation technology are running their entire operations.
Environmental Sri-Lanka is possessed with tropical climate due to which
temperature varies from one location to another. The rate of
natural disaster in this country is moderate. Ministry of
Environment and Natural Resources has implemented
Environmental Act with the help of which the inhabitants are
bound to maintain ecological balance (Uhl and Gollenia 2016).
The environmental pollution can be controlled as well by
implementing environmental act. At the same time, the business
experts can produce environmental friendly products with the help
of which customers do not get affected in having the foods of
Rainbow Roof-top.
Legal As already mentioned the labour market existed in Sri-Lanka is
very skilled and competent (Honig and Samuelsson 2014).
Therefore, the business experts have to follow organizational acts
and regulations strictly (Brooks, Heffner and Henderson 2014).
Health and safety act, data protection act, right to information
act, anti-discrimination act should be strictly followed at the

8BUSINESS PLAN
workplace of Rainbow Roof-top. On the other hand, employment
act should be strictly followed at the workplace. With the help of
this act the employees would get necessary benefits and facilities
from the organization.
Table 2: External Environmental Analysis of Sri-Lanka
(Source: York and Danes 2014)
Porter’s six forces:
Bargaining power of the
suppliers’:
Bargaining power of the suppliers’ in Sri-Lanka is low due to
the large number of distributors and raw material suppliers
in the country. Customers’ knowledge regarding the raw
material supplier is not very detailed. Due to innumerable
number of distributors in food and beverage industry the
suppliers’ have to switch the price of raw materials
frequently as per demand.
Bargaining power of the buyers’: Bargaining power of the buyers is high due to large number
of suppliers. The organizations as per market needs and
demands can switch product cost. Sri-Lanka is possessed
with low number of customers in food industry. Therefore,
bargaining power becomes high so that business experts can
fulfil the expectation of limited number of customers.
Competitors’ rivalry: Innumerable organizations on food and beverage industry are
already established in the market of Sri-Lanka. Still,

9BUSINESS PLAN
Rainbow Roof-top runs their business with smart operations.
Therefore, from that perspective the rate of competition for
this organization is low.
Threat of new market entry The factors which can give a major threat to the organization
in establishing their business process includes level of capital
use of technology, government regulations, distribution
channels and so on.
Complementary products Rainbow Roof-top has given priority on complementary
products. Therefore, their market demand is expected to be
high.
Threat of the substitutes Rainbow Roof-top is primarily made in Indian and Asian
Cuisine. The restaurants which are dependent on Continental
and Chinese Cuisine are its major substitutes. Therefore,
these restaurants are major threats for Rainbow Roof-top.
Rationale for choosing Sri-Lanka as new market:
After making effective PESTEL analysis and Porter’s six factors it can be concluded that
food and beverage industry in the soil of Sri-Lanka is expected to be prosperous. The country as
per government regulations, environment acts and labour market scenario is compatible enough
to give Rainbow Rooftop a secured place for running their business. After making Porters’ six
factor analysis it is evaluated that the competitive market, its substitute threat is low which
enables the business experts of Rainbow Rooftop to launch a new business process.

10BUSINESS PLAN
3. Strategy
3.1 Business opportunities and threats for the organization:
Opportunities:
The opportunities that the business experts can find out after opening Rainbow Roof-top
in the market of Sri-Lanka are as follows:
 Expanding the business in multi-national countries
 Enhancing the number of workforces for providing more effective services
 Rendering more innovation in the service method
 Rendering product diversity for increasing the number of target audience
Threats:
After identifying the areas of opportunities the business experts of Rainbow Roof-top can
find out the areas of threats as well that can exploit the rhythmic process of business.
 Rainbow Roof-top may have to receive threat for new market entry in order to establish the
business in multi-national countries
 Rainbow Roof-top may have to face challenges in investing money for hiring large number of
workforces within services
 In order to render more innovation within services the organization would have to follow
high cost price strategy. High cost product strategy is very challenging for running business
in the market of Sri-Lanka due to the low economic strength of this nation.

11BUSINESS PLAN
 Rainbow Roof-top may have to receive immense threats in dragging the attention of large
number of target customers due to limited products. The restaurant is limited within Indian
dishes and Asian Cuisine.
Strengths:
 Innovative business design with advancement of technology
 Skilled and competent labour market
 Professional customer services
Weakness:
 Low capital in business
 Low product diversification and market penetration
 Limited number of customers
Strategy formulation:
Link core competencies with strengths and weakness:
Providing quality of products and services by using innovative business operation is the
primary strength of Rainbow Rooftop. In order to overcome the weakness the organization can
take effective financial assistance from the banks to increase its capital and invest money in
business for more expansion. In order to enhance the number of customers the organization can
increase product diversification.
TWOS Matrix: