Business Plan of Yummy Food Word Assignment Sample

Business Plan of- Yummy Food Word

Introduction of Business Plan Assignment

Setting up a new business is not an easy task in the complex business environment. With the increasing globalisation and digitalisation the competition has increased to a greater level in the business world. There is a need for the start-ups to focus on multiple factors while setting up a new venture. This report is a business plan which will focus on elaborating that how the businesses need to focus on multiple analyses while entering into a new business. In this report an effective business plan will be conducted for a new venture. For this the business model, industry and market analysis, and different recommendations based on the analysis will be made for the new venture (Geissdoerfer et. al. 2018).

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While establishing a new venture there are a lot of factors which needs to be taken in concern before investing in any of the venture and setting up it. For this it is necessary to conduct effective research related to the market, business environment and the industry analysis of the industry in which the company is looking forward to enter. In this report the researcher is looking forward to set up a new venture of Fast food restaurant in Nepal. So this report will make use of effective models and tools for getting better insight about the target market and industry in which the start-up needs to be established. This report will help in understanding that how the businesses or the new small ventures are being set up in the real world. Along with this the different issues faced by the new ventures are also discussed through the analysis.

Aim

The aim of the present report is to conduct an effective business plan for setting up a new venture of a fast food restaurant in Nepal.

Company Profile

This business plan is for a new company which will be offering fast food to their customers. For the fast food restaurant the chosen name of the company is “Yummy Food Word”. The new venture will be an fast food offering restaurant which will be established in Nepal. The major reason behind selecting the fast food industry is that the millennial and the Gen Z people love to have fast food only. Due to this reason the food industry is having the major tread to eat fast food. Also the customers belonging to different age groups love to have fast food. In this context setting up a new fast food restaurant can help a lot in generating better revenue and developing effective customer base.

The geographical location for the new venture is selected to be Nepal. Nepal is the place where fast food is the most loved food and the fast food industry of growing in a fast pace. Due to these reasons Nepal is one of the most preferred locations for setting up a fast food restaurant (Ikwundu, 2021). In this Nepalian food market the company will be offering wide range of products which would include momos, sandwich, sausage, roll, chowmein, fries, etc. All these products will help the company in attracting the target customers easily. For establishing in an effective manner the company will focus on understanding the customer preferences and then will make changes in the product range based on it.

Besides all this the company need to have an effective business structure. For this sole proprietorship is being considered as the business structure for the company as this will reduce the complexities. Along with this the company will focus on having a functional structure on the company which will help the employees in managing the different operations of the new venture in an effective manner.

Business Model Canvas

Business model canvas is an effective tool which is being used for offering better details related to the business plan in more presentable manner. For the new startup the BMC will provide a path for understanding the key functions of the company. There are nine different parts of BMC which explains about the company in detail which are:

• Key partners
• Key resources
• Cost structure
• Key activities
• Value proposition
• Customer relationships
• Customer segment channels
• Revenue streams
• Channels

The below mentioned model is a business canvas model for the new venture of fast food.

Analysis of Industry and Business Environment

Industry Analysis

Before entering into the industry it is necessary to get better insight related to the business environment and the industry itself. For this different models are being used for Yummy food Word and are listed below such as:

Business environment analysis

For exploring about the internal and external business environment it is necessary to use better models such as Pestle for external and Swot for internal.

Pestle

The social factors of Nepal support the fast food offering firms to a greater extent so this will favour the new venture (Bohara et. al. 2021). Along with this the company has to focus on meeting the guidelines related to the environment protection and safety measures as well. For Fast Food Company it is also important to meet the legislations related to the food safety and quality standards. Also the company has to take care of the political impact on the firm. Lastly the economic factors are quite in favour of the company as the fast food sector of Nepal is expected to grow more in the upcoming years.

Swot

• Strength- a new style restaurant with good taste and better price will be an important strength for the company. Along with this having major target customer base loving fast food will help the company in attracting customers easily.
• Weakness- having an common business idea is an major weakness for the company.
• Opportunity- attracting the customers with different taste and a better ambience is an opportunity for the new venture (Li al. 2021).
• Threat- as there is large number of firms already operating in fast food industry of Nepal so competition would be the major threat for the company.

Industry Analysis- Porter’s five forces

For understanding the industry in an effective manner the Porter’s five forces and their impact on the new venture is important to be explored. For this the Porter five forces analysis is being mentioned below such as:

• Bargain power of buyers- In the case of the fast food industry customers as there are a lot of restaurants and outlets which are offering fast food in Nepal so the bargain power of customers is more. In this context the new venture has to focus on create unique selling point for the customers (Karki al. 2019).
• Bargain power of suppliers- There are a lot of suppliers of food products in Nepal as a result of which the bargain power of suppliers is limited. This will help the company in negotiating with the suppliers while getting the raw material.
• Threat of substitute- Due to large number of fast food serving companies in Nepal the threat for substitution is higher for the new venture.
• Threat of new entrance- Entering into the fast food industry or the restaurant industry is not an easy task. Due to higher rules and regulations and capital requirements the threat of new entrance is moderate for this industry.
• Competitive rivalry- competitive rivalry is higher in the industry.

Strategy Analysis

Strategic Position

For establishing in the new market it is important for the company to understand that how they can create new value for the customers and can get competitive advantage over others. For this it is important for the company to have effective vision, mission, objective and strategies (George et. al. 2019). In this context the VMOST Analysis needs to be used as it can help in having clear strategies and better strategic planning for the organisation.

VMOST Analysis

• Vision- the vision of Yummy Food Word is to establish better position in the food industry of Nepal.
• Mission- the mission of the Yummy Food Word is to be serve high quality fast food in Nepal.
• Objectives- the major objective of the company is to offer high quality fast food for developing effective customer base in the industry for generating higher revenue.
• Strategy- the core strategy of the company is to focus on keeping the cost low and quality high for satisfying the customers and increasing the customer base (Hanaysha, 2022).
• Tactics- for meeting the objective the different tactics would be used by the new venture. The company will focus on online marketing and promotions, recruiting talented employees, designing effective CRM and using better technologies in terms of order processing and payment methods at the restaurant.

Strategic Choice

As per the industry analysis it is necessary for the businesses to focus on developing effective strategies which can help them in being effective.The generic strategy of the company needs to effective as it helps the company in establishing themselves in a successful manner. The Yummy Food Word will be using cost leadership strategy as a generic strategy (Bismark et. al. 2018). As per this strategy the company will focus on keeping their prices low as compared from the competitors for getting advantage over them.

Strategic Action

The business operations are having a major impact on the company. Due to this reason it is important to make sure that the company is making strategic actions for managing the firm in a successful manner. For being effective the company has to plan for sustainable. For this let us discuss the Tripple bottom line a sustainability framework for the company. The three important areas of this framework are well stated below in the context of new venture such as:

• People- for taking care of the people the company will make sure to offer high quality products. Along with this for the employees the company will offer better pay and benefits for keeping them satisfied.
• Planet- for the environment the Yummy Food Word will focus on operating in an sustainable or environment friendly manner. For this they will use reusable products and will limit the use of the plastic or disposable while serving the food to the customers.
• Profit- for generating better profit the company will focus on generating better revenue and managing sales in an appropriate manner.

Stakeholder Analysis and Marketing Analysis

Stakeholder Analysis

Keeping the stakeholders satisfied is one of the most challenging tasks for the businesses. For an new venture it is necessary to make sure that they are taking care of all the stakeholders rights and benefits. For this it is necessary to keep a closer eye on stakeholder’s management. For this stakeholder mapping is very important as it helps in better visualisation of the key stakeholders of the company. The key stakeholders of Yummy Food word are stated below as per the internal and external stakeholders. The stakeholders mapping of Yummy Food Word is being represented below such as:

Marketing Analysis

Marketing practices of the company are having major role to play in the overall success of the company. For this there are different concepts over which the company needs to pay attention. Some of the effective models related to marketing are being explained in the context of new venture.

STP Framework

Segmentation, targeting and positioning are the three most important factors over which the company needs to pay attention (Alam, 2020). For this Yummy Food Word targeting the customers and developing marketing strategies to it are quite effective. STP is being stated below in the context of new venture:

• Segmentation- the Company will be driving the entire customer base on the basis of their age and eating preferences. As per this the company will be focusing over using different marketing strategy on the customers as per their taste and preferences of eating fast food.
• Targeting- For targeting the company is going to target the young customers or the people belonging to Gen Z and the millennial. This is because this section of the society is the one who loves to eat fast food more.
• Positioning- For positioning itself in the Nepal food industry the Yummy Food Word will focus on positioning itself as the company which offer high quality food at the least possible price.

Integrated marketing communication

The case company will be making use of effective marketing platforms which will include digital marketing platforms such as Google, social media platform such as Facebook, instagram, etc. for targeting the customers and attracting them in an successful manner. Having integrated marketing communications is effective for the company. For this the case company will focus on ensuring that deliver same marketing message to the customers across all the media platforms which are being used (Halim and Halim, 2019). The company will focus on offering same promotional message through the customers from social media platforms, digital marketing platforms and the traditional promotional methods such as banners and discount offers used at the restaurant.

Resource and Capability Analysis

Managing the resources of the company in an effective manner is an challenging task for the businesses. For a new start-up it is important to classify the different resources and managing them wisely for using them to the fullest (Lee, 2022) Vrio model is an effective model which helps in categorising the models in an effective manner. The Vrio model for the new venture is stated below such as:

VRIO Analysis

• Valuable- The valuable resources for the company will be the customers and employees of the company.
• Rare- the effective market image which the company will earn in the industry will be its rare resource for the company. Along with this customer positioning in the market will also be rare.
• Imitable- the products offered by the company will be the imitable resource for the company.
• Organised- Organised resource- physical outlet and the infrastructure will be the organised resources of the company.

Financial Analysis

Funding strategy

Managing funds for starting up a new business is one of the most difficult tasks for the entrepreneur. It is important to focus on different types of funding methods and then the best one need to be selected. For setting up a new restaurant in Nepal a lot of capital would be required. There are different sources of funding which can be used. The different sources of funding which can be used includes the venture capital, personal investment, bank loans, government grants, angles, etc. All the all the sources are having some of the pros and cons which needs to be taken in concern while taking funding. For the case company it can be suggested that the bank loan would be the best source of funding which should be used by the company (Sweeting, 2022). The banks are offering loans with low interest rate for setting up the business. This is having lower risks and will help in getting the funding easily. For this it can be said that the bank loan would be the best source of funding which should be used for Yummy Food Word.

Conclusion

The above mentioned report is an effective business plan which includes all the different processes and procedures which are required to be taken in concern while setting up a new business. The idea of a new business is to set up a new fast food restaurant in Nepal. For this the different key recommendations related to the business strategy, planning, fundings all the other factors in an effective manner. For this the report has included all the details in an effective manner.

The detailed environmental and the industry analysis is well conducted for making effective suggestions for setting up a new business in an effec manner.

From the environment and the industry analysis represented above it is clear that there is a great potential to set up a new business in the fast food industry of Nepal. As the social, political and the economic factors of the external business environment of Nepal are in favor of the company so it is a good idea to set up a business over there. Not only this the factors related to the market trends are also supporting new ventures. Based on the analysis all the planning needs to be done in an effective way. The funding is the most important thing for setting up a business. For this the bank loan is being suggested at the best one for setting up the bhsiness in an better way. This method will help the company in ensuring that they are having enough funds for setting up a new business in an effective manner.

The suggested marketing plan is effective as it is making use of effective models and better use of multiple platforms will help the company. Using social media and digital platforms will help the company alot. Here it can be suggested that the company needs to follow this plan in an effective way for attracting the customers. Moreover it can be said that the detailed plan will help the company in setting up a new business in an effective manner.

Yummy Food Word should pay attention over following the plan in an systematic manner and then making changes as per the requirements. Also the company needs to ensure that all the day to day operations of the company are well managed. All this will help in running the company in an appropriate manner. For the new venture it can be recommended that the company should use of resources in an appropriate manner. Along with this highly talented employees needs to be hired with effective skills and knowledge. All this will help alot in managing the day to day operations in an successful manner.

Forecast

As discussed above there are multiple areas over which the new venture has to pay attention. The different recommendations made of the new venture in terms of the marketing, strategy formation and management of the stakeholders will be quite helpful. It can be said that when all the things will be well aligned with one another then it will help the entrepreneur to establish the new venture in more systematic and effective manner. The proposal business plan will be quite helpful while setting up the business. But as per the changing business environment and the customer preferences the company has to make further changes in their strategies.

It can be forecasted that by following the business plan in an effective manner the entrepreneur of Yummy food word will be able to establish the company in an appropriate manner and generating better sales. Effective cost strategy and generic strategy will help in attracting the customers. Also the marketing plan will help a lot in targeting the customers in an effective manner. All this will help in developing effective position in the food industry of Nepal.

References

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