Business Plan A case of Go Veggie Restaurants

Question: Describe about the External and internal environmental analysis, SWOT analysis and Develop a risk management plan of Go Veggie Restaurants? Answer: 1.Business profile a.Vision of Go Veggies Enhancing the goodwill via serving the best healthy food in the New Zealand market b.Mission Go Veggies restaurants is committed to provide the highest quality , fresh and organic natural food that will help to keep up the healthy living habits among the populations. Our employees are friendly, eager to serve quickly with polished and professional behvaiour (Barrow, 2011). Objectives Profitability worth of double the investment which is more than half million after second year. Offers foods without artificial colures, flavour and rotten items Enhance the customer base by 23% per year with the support of promoting the organic farms that keep our earth and water pure. SMART SMART Measuring the objectives of Go Veggies Specific The objectives of the Go veggies Restaurants states that, it is looking to creates healthy environment by introducing organic food habits among the population. Measurable The objectives are measurable as the company is looking to earn double the investment within the 2017 (Clarke, 2010). Achievable The objectives is very much achievable because marketing environment suggest that there is dearth of veggies restaurants in Auckland along with financer like bank and owners has enough fund to open the business. Realistic The objectives real too because the time of earning profitability is given between 2016-2017. Time The objective is time bound because the time elements is given for earning the profitability is 2 years from the opening and enhance the customer base with 23% per year is also one of the evidence of the objective is very much time bound. d. Legal structure Figure 1: Legal structure of the Go veggies Restaurants (Source: Drummond, Ensor Ashford, 2012, pp-234) e. Go veggies offerings Vegetarian Menu (As per seasonal change) All main courses Stir fried vegetables in oyster sauce (fresh vegetables deep fired with garlic and ginger served on bed of rice along with tow tea spoon of love oil) Nut roasted vegetables and pasta (cooked in a spicy tomato and white sauce) Roasted vegetables served with French loaf and pill up rice Mushroom and sweet red capsicum served on the bed of rice along with bread tick with tomato soup Sweet and sour fruits masala and vegetables served on the platter with cheese bread Some of the major items and products sold by the Go veggies in their main courses items to the customers along with changing menu as per seasonal variations. f. Identify the competitive edge for Go Veggies Organic ingredients and feature will add the local flavour which would make the food more delicious and healthy. Apart from that, company will also serves the salads and fruit in order to keep the reprise the menu extremely hale and hearty (Jackson Sawyers Jenkins, 2008). Besides that, the menu of the Go veggies will be tropical and changes with changing season in order to cater seasonal fruit and vegetables to the items not the hybrid one. g. Business background Go Veggies restaurants is vegetarian organic food restaurants in the heart of the Auckland, Queen street. The market has footfall of more than 50000 per day. The business will sole proprietorship because the business is small (Seshadri, 2009). The owner of the company will be capitalizing on the growing demand of local organic food which fresh and no chemical and preservatives are added to it which would bring eco household environment. h. Purpose of business plan Business is about making money and business plan would help to manage the business from start up to profitability prospect. Organic restaurants business chain is one of the booming industries and is very much attracting the general population of New Zealand (Shaw, 2008). Business plan would helps in determining the best possible way of allocating the resources along with conducting the research on the market feasibility, financial feasibility of the business which will help in decision making. i. Critical success factors of Go Veggies Brand value: One of the basic critical success factors for the Go veggies is demand of the organ ic food times are been risings worldwide. As the more and more people are opting for veggies in order to stay healthy and fit. This is lowered the toxic in the air and earth which would reduce the problems of obesity and thyroid (Germain Claycomb Droge, 2008). Countries with large domestic market for organic restaurants opportunities 2013 (million,$) USA 12 Germany 7.20 France 6 UK 5.12 New Zealand 6.26 Japan 1.85 Italy 0.93 Graph 1: Countries with large domestic market for organic restaurants opportunities (Source: Morris Schindehutte Allen, 2011, pp-748) Unique items: Other major factors for the Go veggies restaurants would have unique food items with seasonal variations items which is not been present in existing restaurants. Quality and Value pricing: Apart from that another major factor would be quality service which would be quick and pleasant. Lastly, the price would be keep as the value pricing or penetration pricing in order to cater large customer base (Goksoy Ozsoy, 2007). 2. External and internal environmental analysis PESTLE analysis Political Minister of food and agriculture Mr. David carter MP has announced to tax levied of more than 0.12% on total amount for those SME business who are into the business of buying and selling of organic food products (Germain Claycomb Droge, 2008). Economical The GDP of the New Zealand is 1.56% higher than the previous years which shows consumer are willing to spend more on improving the life style. As rise in the customer of veggies food items with 1.20 million in New Zealand also suggest that demand is increasing per year (Matsuda Hirano, 2007). Social As per the report summoned by Organic Trade Associations and New Zealand Natural Health magazines suggest that, around 34.28% of total population of New Zealand are has change their food habits to prefer organic food products in compare to pesticide products. Technological As the changing new technology would creates one of the major problems for the Go veggies in order to control their food waste. Legal Legal structure like registration from the state bureau is required for the business in order to attain legal name. Along with that, employee identifications number (EIN) and Flammable materials permits are costly to acquire (Mohammed Rashid, 2012). Environmental Environment protection authority permission is needed for the granted for the music in restaurants. Sewerage permits form NBLIS is required. Porters five forces model Threat of new entrants Since the restaurants business is one of the booming industries in New Zealand. Therefore the chances of new restaurants will be higher in near future. High threat of substitute products As there is less competition in the organic and veggies restaurants in Auckland which would help the Go veggies to capture the large market shares (Mohammed Rashid, 2012). Low Bargain power of buyers Bargain power of buyer is currently lower but there is always fear of losing the customer because of poor quality, high price. Medium Bargaining power of suppliers Bargaining power of suppliers would be increasing future because the demand of the organic food item is all time high in retail stores and restaurants. High SWOT analysis Figure 2: SWOT analysis on Go Veggies restaurants (Source: Shaw, 2008, pp-445) 4. Marketing plan Target customers Segmentation bases Target customers segment of Fast food industry Geographic Region New Zealand, Auckland , High street market Density Urban (40000) Age All age category Gender Male, females and others Income High and middle income groups Occupation Employees and professionals Demographic Social status Working class, middle class and higher class Family size Single, nuclear, joint family Psychographic Lifestyle Traditional and moderns Occasions Regular and other Festive seasons Price strategy Penetration pricings: Go veggies will be choosing the penetration pricing which is to give higher quality products with low price. Figure 3: Pricing strategy of Go Veggies (Source: Germain Claycomb Droge, 2008, pp-558) Property strategy Go Veggies Restaurants will promote the store opening via live music and fresh food in the parking lot at weekends. The ambience of the store would be based on neo classical and design on the vegetables and fruits. Place The trade fair and the Auckland music festivals are been generally happens at the queens street so the restaurant have excellent foot traffic (Seshadri, 2009). Go veggies will be hosting number of projects like food banks and community programmes for the benefit of organic food. The closet restaurant to the high street area is 12 minutes drive from the main market. The location has lots of parking space for the cars. Positioning Figure 4: Positioning of products of Go veggies (Source: Barrow, 2011, pp-567) Most of the multi cuisine restaurants are being looking to achieve the cost leadership in the market in order to increase their brand value. However, Go Veggies are looking for product differentiation by innovating the recipes. Promotion With the of sharp rise in the internet users, Go veggies are looking to promote their products in the in social media platform like Face book and Twitter fan page in order to gain the popularity . Mobile app is other major strategy to book the restaurants (Goksoy Ozsoy, 2007). Rest, TV and magazines are traditional way of promoting the restaurants and its vision of making the world better place. Marketing budget and time line Promotional strategies Expenditure (AUD $) Time line (Week) Social media (Face book, Twitter, and YouTube) 30,000 3 weeks TV 9200 2 weeks Websites 40,000 4 weeks Mobile app 20,500 3 weeks Magazines and Newspapers 12,000 2 weeks Offers, free discounts coupons 4000 1 week 5. Human resources Plan Human resources requirements Particulars 2014 2015 2016 Wages 126738 129,228 136,982 Total people 7 9 14 Total payroll 126738 129,228 136,982 Pro forma of staff roster Labor Amount AUD $ Total output per day 1250 Manpower 32 Working time 600 SAM 8.90 Target hour 173 (129 =60% efficiency) (86=40% efficiency) Labour productivity 39 Machine productivity 66 Line efficiency 58 Information flow within the business and outside the environment Figure 5: Communication flows within the Go veggies restaurants (Source: Germain Claycomb Droge, 2008, pp-446) Team formation Plan Analysis Members Strategies Penetration pricings and product differentiation in terms of comfort and style Owners Tactics Strengthen the customer relationship Manager GAP Innovation Innovating the new veggies items Head chef Social media Face fan page and twitter accounts along with YouTube innovative videos Sales manager 6. Develop a risk management plan Major risk in the business Inadequate funds: 9 out 10 restaurant business fails because of inadequate capital. Restaurants business needs more than 30, 0000 capital in order to run its business operation day to day. Most of restaurants struggle to find their ground in the first year while the owners makes necessary strategy in menu or staffing and customers find out the place (Seshadri, 2009). Food safety concern: Food poisoning is major cuisine of concern for restaurants owners. Restaurants personnel are trained in food safety but fails to pay enough attention towards its which could turns into allergies. Impact of risks supported with a risk management strategy Budget: In order to decrease the risk, plan to make expected budget for several months expenditure and expected profit would reduce the risk of funding (Jackson Sawyers Jenkins, 2008). Apart from that, funding via bank with lowered interet rate would also decarse the burden for the financial liabilities. Examine the cooks and other staff: Clean the aprons and uniforms. Clean and manicured hands with no cuts, washing the dishcloths regularly along with separate chopping board and finally avoid using the rotten vegetables which is spreading the risk of bacteria around the kitchen. Monitoring and Implementations These all could be monitored via making the financial feasibility for the restaurants business by making the expected income statement , expected sales plan , balance sheet for 3 years and the cash flow statement of the existing business. Cleanliness: The food poising would be stooped and waste can be control via keeping clean within the Kitchen area operations (Clarke, 2010). This would help to reduce the wastage which can be find out in parking lot bin. Apart from that, using guacamole which is centre of disease are one of the major cause of food poisoning. Benchmarking the resources Operational benchmarks: Operational benchmarking is based on staff and chef efficiency to cook the items of menu as soon as possible with quality (Germain Claycomb Droge, 2008). Apart from that waiter and the finance manager efficiency for focusing extensively on the serving the food at right time and processing right amount of bill. This will be benchmarked via 360 degree appraisal system. Strategic benchmarks: This is where the owners of Go veggies will be making their budget to make sure that, restaurants need to perform well in 5 to 10 years. With the help of implementation of TQM or Price 2 methodology will help to reduce the wastage and maintain consistency. This could be benchmarked via balance score card (Drummond, Ensor Ashford, 2012). Action plan With the help of prince 2 methodology, Go veggies will be able to manage and control its financial budge and monitor within the operation system of the kitchen which is would restraints to use the products that would cause the food poisoning. Figure 6: Risk management techniques used by the Go veggies (Source: Rhyne, 2009, pp-319) Reference List Books Barrow, C. (2011) Practical Financial Management: A Guide to Business planning and budgeting, 8th ed. London: Kogan Page Limited Clarke, G. (2010) Business Start Up and Future Planning, Bringhton: Emerald Publishing Drummond, G., Ensor, J. Ashford, R. (2012) Strategic Marketing: Planning and Control, 4th ed. London: Palgrave Macmillan. Jackson, S. R., Sawyers, R. B. Jenkins, G. (2008) Managerial Accounting: A Focus on Ethical Decision Making, 5th ed. London: Chapman and Hall. Seshadri, S. (2009) Sourcing strategy: principles, policy, and designs, India: PHI Learning Pvt. Ltd Shaw, J. K. (2008) Strategic management in telecommunications, 4th ed. Belgium: Peeters Publisher. Journals Germain, R., Claycomb, C. Droge, C. (2008) Supply chain variability, organizational structure and performance: the moderating effect of demand unpredictability. Journal of operations management, 26, 557-570 Goksoy, A., Ozsoy, B., (2007). Business Process Reengineering: Strategic Tool for Managing Organizational Change an Application in a Multinational Company. International Journal of Business and Management, 22: 256-264. Morris, M., Schindehutte, M. Allen, J. (2011) The entrepreneurs business model: Toward a unified perspective. Journal of Business Research, 58: 726-735. Rhyne, L. C. (2009) The relationship of strategic planning to financial performance, Strategic Management Journal, 4, 319-337 Matsuda, T. Hirano, M. (2007) A perspective of planning literature, European Journal of Operational Planning, 12(2), 138-45 Mohammed, A. A. Rashid, R. (2012) Customer Relationship Management (CRM) in Hotel Industry: A framework Proposal on the Relationship among CRM Dimensions, Marketing Capabilities and Hotel Performance. International Review of Management and Marketing, 2(4), 220-230