MGT306 Strategic Management: A 5-Year Business Plan for RD's Cafe

This document outlines a comprehensive 5-year marketing plan for RD’s café in Australia, encompassing various critical aspects for business establishment and development. It begins with an analysis of the business environment, identifying factors that will impact RD’s café. The plan details the mission, vision, goals, milestones, and strategies necessary for achieving desired targets. A competitive environment analysis is included, highlighting factors influencing the business. The plan provides financial statements and estimated expenses for operating the business, covering set-up costs, profit and loss forecasts, cash flow projections, balance sheet forecasts, and a break-even analysis. Key areas such as marketing strategies, sales approaches, customer retention, and pricing models are addressed, alongside a SWOT analysis and considerations for plant, premises, equipment, information technology, and intellectual property.

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Executive summary
The below presented is a marketing plan for five years of RD’s café in Australia. The
marketing plan has been developed on the basis of the various aspects that are
considered as integral parts at the time of the business establishment and
development in initial stages. The main segments in which the marketing plan is
divided are as follows. The first part is analyzing the business environment that will
impact the RD’s café on various grounds while and before operating the business.
The next section is describing the goals, milestones, and strategies that are required
to be developed by the business firm for making attainments of the desired targets.
The next segment comprises of the analysis of the competitive environment as this
aspect is held liable for stimulating the business environment of the business
organization. The last part includes all the financial statements and all the types of
estimated expenses that will be incurred for operating and executing the business
practices and processes.

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Contents
Business environment..................................................................................................4
Mission and vision.....................................................................................................4
Products and services...............................................................................................4
Business organization and financial structure...........................................................4
Information technology and telecommunications......................................................5
Goals, milestones, strategies.......................................................................................6
Goals and milestones................................................................................................6
Marketing...................................................................................................................6
Sales..........................................................................................................................7
Customer retention and management.......................................................................7
Pricing........................................................................................................................7
Suitable business strategy .......................................................................................7
Business competition....................................................................................................8
The Industry...............................................................................................................8
Target market............................................................................................................8
Market competition....................................................................................................8
Five forces.................................................................................................................8
Financial forecasts........................................................................................................9
Set-up costs...............................................................................................................9
Profit and loss forecast..............................................................................................9

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Cash flow forecast...................................................................................................10
Balance sheet forecast............................................................................................11
Break-even analysis................................................................................................12
References.................................................................................................................13

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Business environment
Mission and vision
The mission of RD’s café is '' Creating extraordinary experiences with high-quality
food, friendliest staff, and best value." And the vision of the business organization is
all about getting people together and having the good time (Abidi et al., 2015). They
also have a belief that they serve positivity on a platter which can go on from the
café and out to the world.
Products and services
Comprehensive promoting ways start with product and repair development. Low
outlets will particularly like developing a good, customer-friendly chain of services
since spoken advertising is an efficient thanks to flip giant teams of individuals into
loyal customers (Armelini and Villanueva, 2011). Make sure to supply free Wi-Fi, as
an example, and to put in electrical shops at every table for laptops. Book live
diversion in the search on a daily basis, host poetry meet-ups and alternative events
with a community gesture and if customers have quite one eating house choice in
your space, confirm your search offers one thing the others don't, so patrons need to
bring their friends to envision the distinction.
Business organization and financial structure
Financials
Financial structure refers to the well-blended mixture of long-term debt and equity
that the RD's café will be utilized for financing the business operations. In this the
business entity will have to make decisions how much money should be borrowed,
the best mixture of debt and equity to obtain and also the most affordable sources of

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collecting funds (Arrawatia, 2018). For instance, RD’s café can attract investors by
presenting plans and can also raise funds by organizing charity events and
sponsoring sports events.
Business structure
On the basis of the research, it has been analyzed that the business entity can make
adoption of divisional structure. Under this, the business practices will be developed
around geographical market or product and the service groups. The business entity
will be segmented into various forms of divisions as per their functions and
obligations.
SWOT Analysis
Strengths:
 Strong loyalty from the customers.
 Working with people who have the expertise to provide exceptional quality.
 Focused marketing campaign (Bienkowski et al., 2010).
Weaknesses
 No customer base.
 The initial expenses will be higher as compared to the normal café.
 Experience will be less for running the business at the starting days.
 Brand equity will be low .
Opportunities
 Ability to build brand equity.
 Shifting or moving to a different target market will be done with an ease
 Ability to expand (Darrin and Stadter, 2017)

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Threats
 Other cafes in the area.
 Changing market tastes.
 Other cafes opening in other suburbs.
Plant, premises, and equipment
The below mentioned are some of the main factors that are required to be present
while designing and developing the premise, and equipment’s for the restaurant:
 The environment or the restaurant premise should be so developed that it
should be able to protect the guests from dirt, dangerous materials.
 A hygienic level should be maintained in and for doing that some sensible
food hygiene norms and laws should be implemented in the restaurant
 prevent persecutor access and stop them living in your business (Edwards
and Wilson, 2017)
 Where necessary, make sure you will keep food cold or hot while it's being
ready, hold on and before it's sold.
All the equipment’s with the business organization and the utensils ought to have a
dishwasher. The quantity and size of sinks in the restaurant business should be
related to the extents and nature of the operation executed.
Information technology and telecommunications
 Mobile ordering: Introducing a mobile app that allows the customers place
orders from their phones will have major perks for the business.
 Mobile arrival services: Many restaurants are creating use of geo-location
apps like Foursquare and Facebook's "places nearby" to supply special deals

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to customers who "check-in," and providing incentives for larger teams and for
purchasers who visit often (Gregory, 2018).
 Digital menus: For restaurants that wish to update their offerings often, or
give customers with photos and extra data regarding their dishes, digital
menus square measure wherever it’s at.
Intellectual property, licenses, and insurance memberships
Trademarks and license
Trademarks are important to the stigmatization of an edifice. A trademark may be a
word, phrase, or design, among different things, that distinguishes the products and
services of one business from those of another.
Copyright for restaurant
Copyright generally refers to the exclusive legal right to repeat and to have
interaction in other protected uses, of original creative, literary, dramatic and musical
works happening in the café premises (Haight, 2017). And this tool will be proven the
integral tool for developing brand image of RD's café.
Goals, milestones, strategies
Goals and milestones
Client service
Customer service can build or break eating place or the restaurant. In fact,
customers additionally forgive for food mistakes than they're service mistakes. Which
means that client service utterly dictates whether the entity gets repeated customers,
larger bills, and a local business or not. These goals ought to be extremely particular,

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measurable, and track-able (Haque and Anastase, 2017). All workers should get on
a constant page so as to confirm these goals are met.
Food quality
Prime quality of food in the service is one of the empirical factors that should be kept
in focus by the RD’s café as the prime goal. This suggests setting sturdy goals for
room workers. These goals don't need to relate specifically to internal control,
however, they will. For instance, a goal can be that you just solely supply organic for
3 months (Hollensen, 2015). Once 3 months, the entity will assess however that
method wedged different areas of the business, or even your goal are going to be to
feature a replacement item to the menu every month as some way of encouraging
power and enthusiasm amongst the room workers.
Marketing
Client service and food quality are however the firm please the customers and build
them regulars. Promoting is, however, the entity brings dinners within the door within
the 1st place. The firm must contemplate team goals for promoting a campaign.
Perhaps the workers agree that the organization all post one image of the eating
place monthly on the personal Instagram pages (Kim and Hyun, 2011). This gets the
word dead set friends and family, and it involves the complete team within the goal
along. But the entity opt to promote, build it a team effort for the complete restaurant;
firm all have a stake in what number customers come back through the door,
therefore it must all have a stake within the promoting campaign in addition to it.
Marketing
 Attract new customers by first customer program, and social media.
 Make use of customer retention strategies to increase customer loyalty.

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 Offer customers various ways to buy.
 Train your servers to upcycle your techniques.
Sales
1. Offering different and innovative modes of payments and buying or
experiencing the services
2. Attracting new targets or segments of customers by presenting various offers
can be proven a beneficial sales strategy
3. Maximizing the Table Turnover Rate can also be considered as an
appropriate sales strategy
Customer retention and management
 Develop a customer loyalty program.
 Get involved in a local community.
 Organize events.
Pricing
One of the most suitable pricing strategy that can be adopted by RD’s café is
penetration pricing strategy in which the business organizations are supposed to
quote lower prices for the products at the time of initial sales (Lam and Harker,
2015). This pricing strategy can be used by RD’s cafe at the initial stages of
establishing the business. This will be proven as an integral step for the business
firm as the entity will be introducing the products and services at the minimum price
and that will be attracting more and more customers.
Suitable business strategy
The below mentioned are the steps that can be adopted by RD's café for developing
the business strategy:

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Determine the target market.
Each eating house attracts a definite cluster of individuals. For developing the selling
set up the entity will require possessing information of the target client. Analyse
things like the requirements and needs of the customers (Lane and Dieterlen, 2018),
why they prefer to eat outside the house and what they'll pay money for a dinner out.
Analysis of the competitors
So as to square up to the fierce competition outside, RD’s café should recognize
what different institutions are giving. Recognize their strengths and weaknesses, and
therefore the reasons their customers are loyal to the institution.
Update your menu.
Each year close to, you must reconsider your menu and confirm what's marketing
well and what desires change (Lee, Barker and Mouasher, 2013). Perhaps there's a
bunch of individuals not selecting you’re eating house due to your menu selections.
Become a vigorous a part of the community.
Offer meals to shelters and discounts on non-profits. Provide fundraising nights at
the restaurant, with a proportion of sales aiming to a neighbourhood group or an
organization (Nunan and Domenico, 2013).
Business competition
The Industry
The restaurant business is very competitive with relevancy worth and promotions,
service, location and food quality. There is a considerable variety of eating place
operations that contend with us for client traffic, a number of that have considerably

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been bigger resources to sharply market to shoppers that may lead to our ideas
losing market share. Shoppers are extremely centered on worth and if different
restaurants are able to promote and deliver a better degree importance to the guest
traffic levels which might suffer, affecting revenues.
Target market
The construction of target market ought to meet the interests of the patronage you
wish to draw in. as an example, if you wish to attract a fleet of 20 to 40-somethings
who want to relax and have a decent time, a sports bar, complete with televisions, an
informal menu atmosphere can possible charm to the current demographic. This
gets back to the idea of specializing in one target client rather than attempting to
please everyone. In general terms, the business entity can target individuals of every
age group.
Market competition
As the business organization is a new venture in the market there is the number of
competing brands that will be coming across as barriers to the success and growth.
Wendy's, Burger King, Hungry Jack's, Red Rooster and Pizza Hut are some of the
leading brand names that are operating in the same sector.
Five forces
Competitive rivalry
The sustenance edifice business has several corporations of varied sizes, like
international chains like Wendy's, Burger King and native mom-and-pop sustenance
restaurants (Shorrick, Aspinall and Serpis, 2017). Most medium and enormous
corporations sharply market their product. Additionally, RD’s customer’s expertise