Business Context Report: Comprehensive Analysis of Slainte Meal Center

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This report provides a comprehensive business context analysis for a proposed Slainte Meal Center, focusing on key operational aspects. It begins by examining the location strategy, selecting Dublin city center based on Naylor's review and considering future expansion to other urban centers. The report then delves into the logistics of manufacturing, outlining the procurement of raw materials from local Irish farmers and the use of vertical integration. Forecasting methods are explored, including both qualitative assessments of the Irish market's health consciousness and quantitative analysis using averaging techniques to predict sales. Quality control measures, including energy-efficient practices and green technology, are also discussed. Finally, the report details the implementation of an automated inventory system to track and manage stock levels effectively. The report references various sources including government websites, industry reports, and academic publications.
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Running head: BUSINESS CONTEXT
Business Context
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1BUSINESS CONTEXT
Table of Contents
4.3. Location – based on Naylor’s Location Strategy.....................................................................2
4.4. Logistics of manufacture..........................................................................................................2
4.5. Forecasting................................................................................................................................3
4.5.1. Qualitative Forecasting......................................................................................................3
4.5.2. Quantitative Forecasting....................................................................................................3
4.6. Quality......................................................................................................................................4
4.7. Inventory...................................................................................................................................5
Reference List..................................................................................................................................6
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2BUSINESS CONTEXT
4.3. Location – based on Naylor’s Location Strategy
It is found based on the Naylor Review that in Europe, opportunity in Ireland is 13% and
57% by size and value respectively (Gov.uk 2018). This also reflects that very high value sites in
Ireland are in the east or south eastern regions. Thus, the selected city where the cheap, fast and
healthy alternative of meals will be available is in Dublin city centre. Moreover, for future
expansion of the project urban centers in other bigger cities like Birmingham, Bradford, Bristol,
Manchester and Sheffield will also be selected.
The raw material that is required is fresh fruits and vegetables and will be obtained
through the local Irish farmers. Thus, the farmers, whom we have planned to contact and develop
partnership, are Rian Coulter and sellers of Blackrock Market.
We have also planned for expanding our business operations we have planned to turn raw
material into a product and then offer to our customers through the concept of vertical
integration. The farmer can hold some of our market shares and provide materials to us that can
be served by our company, Slainte.
4.4. Logistics of manufacture
Since we have planned to open our shop in a particular place, we do not need nay
logistics to deliver the final products. However, we need logistics to get the raw materials from
the local farmer. The strategy of inbound logistics is currently planned through which the fresh
fruits and vegetables along with other food products can be obtained. This inbound logistics will
also be used for purchasing the utensils and crockery when required.
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3BUSINESS CONTEXT
These suppliers follow The Food Hygiene Regulations 2006 (SR 2006 No 3), Food
Standards Act, 1974, Council Regulation (EC) No. 1234/2007, European Food Information to
Consumers Regulation and Food Safety Authority of Ireland Act, 1998 (Fsai.ie 2018).
The key determination factors that are selected for opening our meal centre is to allocate
money on selecting suitable suppliers based on their performances and legislations they follow.
Moreover, we have also planned for establishing service logistics, where meeting is conducted
among the team of experienced food service logistics professionals to discuss on renovation of
outdated spaces and improvement of the logistics system. Cost effective logistics is also included
to discuss on transportation management, inventory management services, centralized reporting,
capital equipment accounting and identification and transition management.
4.5. Forecasting
4.5.1. Qualitative Forecasting
The food experts from Ireland have depicted their views that young generation of Ireland
are very much health conscious and desire to consume food that are good for the health. In the
past few years, there were thousands of employments obtained in the hospitality industry and
thus, it can be said that the restaurant industry is on the rise in Ireland market.
4.5.2. Quantitative Forecasting
In the year 2017, total of €3 billion was earned through the hospitality industry and there
were 148,000 workforces employed in the accommodation and Food sector (Ihf.ie 2018). Among
these sectors- 14% are hotels and other accommodation, 45% are catering and food service
providers and remaining 41% have restaurants and beverage servicing activities. It is also given
forecasted that the growth in the value of the foodservice industry was €7.5 billion in the years
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4BUSINESS CONTEXT
2016 and it is expected to grow more than €9 billion by the year 2020 (The Irish Times 2018).
Though there will be 9% VAT for the hospitality services (The Irish Times 2018).
We will follow the technique of averaging in order to forecast the sales of our food by
considering the average of the three month in order to estimate the value of the fourth month.
Here, for the month of April, the forecast value is obtained by averaging the value of January,
February and March that is (35,000+57,000+70,000)/3 = 54,000. We expect a value close to the
average value.
Period Actual Demand Forecast
January 35,000
February 57,000 35,000
March 70,000 57,000
April 56,000 70,000
May 56,000
Table: Quantitative Forecasting by using technique of averaging
(Source: Created by Author)
4.6. Quality
All the food ns consuming food products are quality checked and passed through series of
such quality controls. These quality controls are for checking the food hygiene, back of house,
front of the house for checking the dining environment and giving training and management. All
the products that will be used in Slainte are energy and power efficient and consume less
electricity. The packaging materials that are used follow the green technology and utilize the
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5BUSINESS CONTEXT
technology of reusing and recycling. The building that is planned to develop the centre is
Leadership in Energy and Environmental Design (LEED) certified building in order to provide a
safe environment in the organization.
4.7. Inventory
We have planned for automated inventory system in the workplace so that real-time
tracking of all inventory items can be obtained. This inventory control system allows our
organization to measure the inventory returns, identify multiple inventory storage locations. One
inventory within Slainte is automated that was aligned with an alarm that rings once the
inventory reached to a limit. Apart from that, we have also planned for an extra inventory with
these raw materials in case we have to satisfy the demands of crowd. We will also incorporate
electronic vendor integration and invoice reconciliation. The reason for using these inventory
management tools is that it is simple to configure and order.
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6BUSINESS CONTEXT
Reference List
Fsai.ie., 2018. The Food Safety Authority of Ireland. [online] Available at:
https://www.fsai.ie/legislation/food_legislation.html [Accessed 27 Feb. 2018].
Gov.uk., 2018. Naylor Review Data Analysis. [online] Available at:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/604913/
Naylor_review_data_analysis. [Accessed 27 Feb. 2018].
Hair, J.F., 2015. Essentials of business research methods. ME Sharpe.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Ihf.ie., 2018. Final Hospitality Sector Oversight Group Report. [online] Available at:
https://www.ihf.ie/sites/default/files/upload/final_hospitality_sector_oversight_group_report_jun
e_2017. [Accessed 27 Feb. 2018].
The Irish Times., 2018. ‘Quick-serve’ restaurants devour one third of Ireland’s food spend.
[online] Available at: https://www.irishtimes.com/business/agribusiness-and-food/quick-serve-
restaurants-devour-one-third-of-ireland-s-food-spend-1.2851723 [Accessed 27 Feb. 2018].
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