BMM5102 Business Development Component 2 Assignment Sample

Introduction Of BMM5102 Business Development Component 2 Assignment

Industry Background and Market Analysis Background

Med 3 Taps is an authentic small restaurant that specialises in Mediterranean cuisines and offer customers a memorable dining experience. The restaurant operates under the food and beverage (F&B) industry. The F&B industry is growing rapidly in the UK due to increasing demand of food and drinks. Total revenue is anticipated to develop by 5.42% (CAGR 2025 to 2030) (Statista, 2025). Also, the demand for plant-based and organic food is regularly increasing which raise the growth chances of food and beverage sector.

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Porter’s five forces

• Bargaining power of suppliers: There are numerous suppliers in the food and beverage industry that supply raw ingredients to the restaurants. Therefore, the impact of this force is low for the Med 3 Tapas. The restaurant can choose suppliers which offer raw products at the best prices.
• Bargaining power of customers: The power of customers is quite high because there are many restaurants in the England (Ceynowa et al, 2024). Internet also makes it easy for the customers to search the best restaurant. Customers can choose other restaurant over Med 3 Tapas according to their preferences.
• Threat of new entrants: New restaurants need moderate level of investment which makes it quite easy for them to enter into the market. Therefore, the impact of this force is high for the Med 3 Tapas as new restaurants can give competition.
• Threat of substitution: The restaurant sector has different entities which makes it easier for the consumers to take decision (Porter Analysis, 2018). Although, Med 3 Tapas offers quality and tasty food dishes including vegan meals. Thus, the impact of force is moderate for restaurant.
• Competitive rivalry: There is an intense competition among restaurants in the England. Adam’s Restaurant, The Woodspeen Restaurant, The Ledbury, and Grace & Savour are some popular restaurants that give tough competition to Med 3 Tapas.

PESTEL analysis

• Political: The UK government has changed the rules after Brexit that impacts the Med 3 Tapas to the significant level. Further, regular increasing wages is another problem as it puts pressure on the restaurant to offer good salary according to the market demand.
• Economic: Inflation rate is continuously rising in UK which affects the disposable income of the customers. Current inflation rate in UK is 3.9% (ONS, 2025). Due to the rising inflation, customer started to cut down their expenses which are serious issue for the Med 3 Tapas as it directly affects the sales.
• Social: Currently, people prefer the healthy, organic and plant-based food products. To cater the diverse needs, Med 3 Tapas offers vegan and plant-based food including quality wine and beverages.
• Technological: Med 3 Tapas has own website which provides pre-booking facilities to the customers. The restaurant also invests in digital marketing to attract the more customers and thereby boosts sales (Med 3 Tapas, 2025).
• Environmental: Customers are supporting sustainability and waste reduction for the environment protection. The restaurant needs to make focus on this issue and sourcing raw materials ethically. They also use proper waste management technique to reduce waste.
• Legal: It is crucial for Med 3 Tapas to follow the consumer protection, employment rights and food safety laws. It would be helpful for the restaurant to avoid any legal problems.

Internal Analysis

SWOT analysis

• Strengths: Med 3 Tapas offers unique Mediterranean dining experience and uses fresh ingredients. The restaurant also has warm ambience and robust local appeal which recognized as the strength of restaurant.
• Weaknesses: Lack of online presence and high operational costs is recognized as one of the main weaknesses of the restaurant. Due to the limited market reach, the Med 3 Tapas cannot offer their products and services to the large audience which limits the profit margins.
• Opportunities: Rising demand for the Mediterranean food, digital marketing and online services create opportunities for the Med 3 Tapas. The restaurant can also take loyalty programs as opportunity (Korede et al, 2023). With the loyalty programmes, the business can gain more loyal customers which further help to stay competitive.
• Threats: Intense rivalry from chain restaurants and ever-changing needs of the customers are biggest threats. Economic crisis, staffing issues and reputational damage are also considered as threats.

Proposed Area of Business Development

From both external and internal analysis, it has identified that there are many opportunities for the Med 3 Tapas to develop business. Although, the restaurant is facing some issues they also has capabilities to achieve more growth in business. There are three main three business development opportunities for the Med 3 Tapas.

Opportunity 1: Expanding revenue

Med 3 Tapas can focus on financial cash as well as long-term sustainability (Ntounis et al, 2022). The restaurant can also make strategies to enhance the cost efficiency and achieve profit margins by offering online services or increasing product line.

Opportunity 2: Leveraging technology

The restaurant can also focus on enhancing customer engagement by offering the loyalty programs, personalised and excellent services (Sanderson Bellamy et al, 2021). Improving digital marketing strategy can be also opportunity for restaurant.

Opportunity 3: Brand development and expansion

To achieve long-term resilience, the restaurant can focus on diversifying its supply chains and improving the financial planning. Med 3 Tapas can also adopt new business model.

From all the three opportunities, Med 3 Tapas should go for the business opportunity first as at present the restaurant only deliver food in limited areas. Under this opportunity, the restaurant can expand delivery and takeaway services for further revenue streams. Financial stability is the crucial area where the restaurant is facing problems and need improvement (Do et al, 2021). By increasing takeaway services, Med 3 Tapas can generate higher revenue and enhance financial health. Nowadays, tourists are also demanding vegan and plant-based food while their travelling instead of junk food. Thus, the restaurant can leverage it by offering organic and natural food and beverages made by fresh and high quality ingredients. Once, the business will gain profit as planned they can open their restaurant in other regions.

Specific Area of Expertise

Own contribution and specialism area

Med 3 Tapas already has great knowledge about food and beverage industry. The restaurant is also popular for their Mediterranean and vegan food. The manager has adopted and implemented the democratic leadership style that empowers staff members to provide ideas and opinions to perform things in the more effective way. The restaurant has large network of suppliers and offer great customer services. Chefs have an excellent experience in making tapas food dishes and always try to prepare the new dishes. All these expertise will help the restaurant to execute new business strategy.

7p’s of marketing mix

• Product: Med 3 Tapas will increase its delivery and takeaway services across the different areas of England. It will allow the customers from other areas to order food online and receive at their home.
• Price: The restaurant will charge reasonable food and shipping prices so that more people can leverage services (Jain, Jain and Jain, 2022). Discount on online orders will be also provided to the customers. It is obvious when customers get discount they will be more likely to order food.
• Place: The restaurant will offer the delivery services to other areas including existing area Euxton. People who live in Lancaster, Silverdale and Ormskirk can use takeaway services of Med 3 Tapas and order food online.
• Promotion: The restaurant will increase its marketing efforts and make more eye-catching and relevant campaigns to attract the customers. Med 3 Tapas will share their experience with customers on Instagram and Facebook to connect with the audience (Hasan et al, 2023). Apart from this, influencer marketing will be utilised where famous influencers will promote restaurant on social media.
• People: Med 3 Tapas will hire food delivery staff and customer representatives to carry out business operations. The business will expand its marketing team to improve online presence and to reach new customers. The restaurant will also offer training to the staff so that they can improve their skills.
• Process: Med 3 Tapas will focus on streamlining the online order and delivery services. The customer will also track their order via their smart phones and can contact with the delivery boy if there any changes in delivery address.
• Physical evidence: Med 3 Tapas will embrace the sustainable and environment-friendly practices to contribute to environment protection. The restaurant will use paper packaging to pack the food products (Koc and Ayyildiz, 2021). The company will utilise eco-friendly disposable boxes for packaging. It will help to reduce the waste and carbon emission level.

Financial strategy

The restaurant can use different funding sources to get capital to initiate the proposed business venture.

• Angel investor: Med 3 Tapas can choose angel investor who is wealthy private investors concentrated on financial small firms. They utilise their own net worth and offer money often in exchange for equity (Siefkes, 2025). It is an equity-based financing option, the business does not require to pay any monthly payments as an interest, enabling them to invest borrowed money into developing business.
• Bank loan: A bank loan is fastest and common method to get money for the business. The restaurant can apply for the loan in trustworthy bank. But they need to repay loan with interest rate otherwise they can face legal problem. Business loans have tax advantages because the interest payable is usually tax deductible which will be good for the restaurant.
• Selling assets: Med 3 Tapas can sell some of its assets which are no longer of use to get money to execute project. The assets can be tangible such as; old machinery, equipment etc. or intangible such as property (Akepanidtaworn et al, 2023). Basically, changing assets into money can offer source of funding without taking any kind of debt. It also allows the company to raise money quickly and start the project as soon as possible.

The restaurant will require £80,000 to carry out the new business venture. The breakdown of required budget is given below:

Funding sources	Amount
Angel investor	£30,000
Bank loan	£30,000
Selling assets	£20,000

Operational strategy

The following operational strategy will be used to effectively execute the project:

Post	Number of required persons	Roles and responsibilities
Operational manager	1	Operational manager will be responsible for supervising the everyday business operations related and organising resources for new business venture. Manager will also make sure customers will receive quality food and reliable customer services. Operational manager will allocate the budget for different functions like marketing, hiring and supply chain operations.
Marketing employees	2	Marketing staff will be liable for promoting restaurant and its food dishes and services in new areas (Kushwaha et al, 2022). Marketing team will make advertising campaigns to grab the attention of new customers. The team will monitor and evaluate daily marketing activities in order to know the performance of campaigns.
Customer service	1	Customer representative will keep records of complaints, transactions and feedbacks. The customer representative will solve the customer queries as soon as possible. Customer representative will also give information to the customers about restaurant’s products and services.
Food delivery staff	6	Food delivery staff will be crucial part of the company. Without hiring sufficient number of delivery staff, the company cannot deliver products (Francioni, 2022). The responsibilities of the delivery boys are to deliver orders on time, complying with rules and following schedules. They will also liable for collect the payments if customer used cash on delivery.
Chef	2	When the restaurant will expand their deliver service, they will get more orders. To deliver order on time the restaurant will need more chef who can prepare food timely. The chefs will comply with the food safety regulations and prepare delicious dishes.

Key Recommendations with Implications

 From above analysis, there are some recommendations for the Med 3 Tapas that would be helpful for the development of the business.

• As mentioned above, it is recommended to the restaurant to focus on the expanding their delivery and takeaway services. If the restaurant will offer the services to other areas then it will increase their revenue sources. It is obvious when a business will serve more customers, it will directly increase their sales and profit margins.
• It is suggested to the business to increase their marketing efforts by making more attractive content and advertisements. The company should improve online presence and digital marketing to reach wider audience. Further, the manager should monitor performance on regular basis in order to find out the bottlenecks and use corrective options to overcome it.
• Training and development of staff members is crucial. Med 3 Tapas can organise the training programmes at the workplace. It will allow the staff members to get insights regarding latest market trends, customer’s demands and technology. They can use their knowledge to perform business operations and contribute to success of the restaurant.

CONCLUSION

As per above report, it can be concluded that it is essential for the small and medium businesses to constantly focus on the growth of the business. If they do not pay attention on business development then they cannot survive in this competitive market. The report has explained about the business development of the Med 3 Tapas which is restaurant located in England. From analysis, it has figured out that the restaurant has strengths like vegan product line, quality ingredients, Mediterranean and many more that would help in business growth. The restaurant should focus on delivery and takeaway services to get more revenue streams and improve their financial conditions.

REFERENCES

Books and Journals

• Akepanidtaworn, K., Mascio, R.D., Imas, A. and Schmidt, L.D., 2023. Selling fast and buying slow: Heuristics and trading performance of institutional investors. The Journal of Finance, 78(6), pp.3055-3098.
• Ceynowa, W., Przybyłowski, A., Wojtasik, P. and Ciskowski, Ł., 2024. Digitalization and Sustainability of Supply Chains: Assessing the Potential of the DYLLI Application in the Hotel, Restaurant, and Catering Industry. Sustainability, 16(23), p.10380.
• Do, Q.N., Mishra, N., Wulandhari, N.B.I., Ramudhin, A., Sivarajah, U. and Milligan, G., 2021. Supply chain agility responding to unprecedented changes: empirical evidence from the UK food supply chain during COVID-19 crisis. Supply Chain Management: An International Journal, 26(6), pp.737-752.
• Francioni, B., Curina, I., Hegner, S.M. and Cioppi, M., 2022. Predictors of continuance intention of online food delivery services: gender as moderator. International Journal of Retail & Distribution Management, 50(12), pp.1437-1457.
• Hasan, M., Ahmad, M.I.S., Kamaruddin, C.A. and Tahir, T., 2023. 7P Marketing Mix in Processed Farm Products by Urban Farming Businesses. International Journal of Social Science and Business, 7(3), pp.645-658.
• Jain, R., Jain, S. and Jain, S., 2022. Analyzing and exploring the effectiveness of each element of 7Ps of marketing mix. International Journal of All Research Education and Scientific Methods (IJARESM), 10(1), pp.2455-6211.
• Koc, E. and Ayyildiz, A.Y., 2021. Culture’s influence on the design and delivery of the marketing mix elements in tourism and hospitality. Sustainability, 13(21), p.11630.
• Korede, T., Al Mamun, A., Lassalle, P. and Giazitzoglu, A., 2023. Exploring innovation in challenging contexts: The experiences of ethnic minority restaurant owners during COVID-19. The International Journal of Entrepreneurship and Innovation, 24(1), pp.19-31.
• Kushwaha, B.P., Kaur, G., Singh, N. and Sharma, A., 2022. Integrating employees, customers and technology to build an effective sustainable marketing strategy. International Journal of Sustainable Society, 14(4), pp.310-322.
• Ntounis, N., Parker, C., Skinner, H., Steadman, C. and Warnaby, G., 2022. Tourism and Hospitality industry resilience during the Covid-19 pandemic: Evidence from England. Current Issues in Tourism, 25(1), pp.46-59.
• Sanderson Bellamy, A., Furness, E., Nicol, P., Pitt, H. and Taherzadeh, A., 2021. Shaping more resilient and just food systems: Lessons from the COVID-19 Pandemic. Ambio, 50, pp.782-793.
• Siefkes, M., 2025. A guide to becoming green: Insights from angel investors developing sustainability-specific knowledge. Journal of Small Business Management, 63(1), pp.306-336.