Innovation, Technology and Increased Customer Satisfaction in the Food Industry
Info: 8873 words (35 pages) Dissertation
Published: 9th Dec 2019
Tagged: TechnologyConsumer Decisions
Contents
COMPANY DESCRIPTION AND INDUSTRY ANALYSIS
ORGANISATIONAL BUSINESS STRUCTURE
OUR MAIN SOURCE OF COMPETITIVE ADVANTAGE
PROCESS DIAGRAM FOR VIRTUAL KITCHEN APPLICATION
EXECUTIVE SUMMARY
The growing trend for innovation and increased customer satisfaction will always be a need in the food industry. This project has been designed to capture the idea of utilizing technology at its best fit to increase customer satisfaction in terms of their preferred choice or healthy diet. In our everyday lives, we plan of a day’s activity with the aim of creating enough time to accomplish all task but still we struggle to maintain constant control of a vital resource in the life of human which is healthy diet. Due to our daily activities we are faced with the options provided by many food outlets, leaving customers with no opportunity to control their diet or customize their desired meal. This opportunity is what we must serve to customers as our business will utilize mobile and web application as a platform for customers to customize food orders to suit their taste of preference or health status easily. Therefore, providing customers the opportunity to balance their life cycle with their work and health. And by means of health, it includes tasty and healthy food where the customer satisfaction comes in as the key factor. Our application will be introduced to customers as Virtual Kitchen which will create the perception of food customization from an application. As customers are given the opportunity to customize their food, they also get to receive support from our dietician as an addendum. The customers will only need to take a couple of minutes of their time to make their order, which can either be delivered to their house or they have an alternative of walk-in to the restaurant. Virtual Kitchen also comes with many prominent features, some of which listed below are significant to achieve the best Customer Experience.
Features: – Food Customization – Dietitian support – Restaurant reservation with pre-ordered food – Home Delivery – Pre-scheduled food delivery – With research and analysis by several medium, our application is designed to target a market in which, consumers have the requirement of health and time management. Our products are priced precisely by considering every single factor that contribute to maintain the economic stability of both business and consumer end. Our legal approval requirement and Financial plan have been carefully charted out, and so the course of business process will be uninterrupted. Our Time to Market has been scheduled with ample duration allocated for every process in our project plan and thereby, this Business Plan is constructed with maximum precision.
COMPANY DESCRIPTION AND INDUSTRY ANALYSIS
BUSINESS IDEA
Our idea for virtual kitchen originated from the need of increasing the overall food experience for customers. We decided to offer customers the opportunity to explore more food options as we observed a lack in customizable food to suit different taste and health needs, a delivery of good high-quality food and a lack of a subscription-based service like blue-apron business strategy.
PESTLE ANALYSIS
Pestle analysis has been adopted in the planning course of this business plan to grasp the overall understanding of the Australian food market from a political, economic, social, technological, legal and environmental view.
This analysis would provide deeper understanding for opportunities that can be explored and create awareness for business threats.
POLITICAL
- The Australian Government provides support to assist investor for trading and business
- Good relationship between the Australian Government and countries such as USA and United Kingdom.
- Control of fast food marketing by the Australian government due to health concerns such as childhood obesity.
ECONOMICAL
- The increase on fuel price as the global oil price increased over 40 percent the past year.
- Energy and gas price hikes as consumers are likely to face a standing offer increase of 9.5 percent in the first quarter of 2018.
- Agriculture a key pillar for Australian economy with prediction of a rise in gross value of farming produce of 17.3%
- Current Australian inflation rate is 1.9% as the Reserve bank of Australia (RBA) has set a target to achieve an inflation rate of 2-3% on average overtime so as not to materially distort economic decisions.
SOCIAL
- Health concerns on unhealthy food
- Australia is well diverse in terms of culture and lifestyle with its population projected to grow 27.2 million by 2026, with net migration expected to contribute 55% of total growth.
- Australia known for its agricultural strength.
TECHNOLOGICAL
- The Australian government encourages research and development by providing direct funding to private companies to invest.
- Australia has great communication technology opportunities with its spending expected to rise to $84.4 billion (According to Gartner)
- Online ordering has experienced an enormous growth especially in this era with technology gaining more awareness.
LEGAL
- A private investor would need to be licensed to operate in the Australian food market.
ENVIRONMENT
- The Australian government is powering forward with plans to deliver reliable and affordable energy system to assist Australia meet its economic and environmental challenges.
- Australia’s effective governance provides safe, business-friendly environment
SWOT ANALYSIS
Swot analysis has also been applied in identifying the possible strengths and weaknesses that is possessed as internal forces of our proposed company. Also, opportunities and threats considered as external forces has been identified to align our business objectives to adapt to the possible changes that might be experienced in the business environment.
ORGANISATIONAL BUSINESS STRUCTURE
Our organizational structure will be designed as a functional structure to build a reporting relationship grouped based on different area of specialty but overall, all functional heads report to the business owner. In this case, we have grouped the kitchen staffs and dispatch drivers under the kitchen manager. All kitchen reports go to the kitchen manager firstly before it is further reported to the general manager and owner. Similar process applies to the assistant manager who will be responsible of all reports from the IT expert, Dietician and other administrative issues from book keeper. The general manager receives reports from kitchen manager, assistant manager and book keeper, which is then presented to the owner.
LEVEL OF APPROVAL OR FINANCE
LEVEL OF APPROVAL REQUIRED
To succeed in this business environment, it would be vital to consider some of the critical requirements such as the approval needed to start-up a business. As a company focused in the restaurant market, we have observed the following to be a necessity in pursuing our business goal.
IMPORT PERMIT FROM THE AUSTRALIAN GOVERNEMENT
To meet the needs of customers of great diversity, we will need to import most of our ingredients. Based on research we observed that an import permit would be required by the Australian government. This would be a major approval towards achieving a business success in venturing into this business idea.
FOOD LICENSING BUSINESS
As a commercial food business competitor, we would require a food business licensing in NSW. This is usually given by the NSW food authority. About 15,000 food business competitors operating in NSW needs to hold a food business licensing indicating that a business has the capacity to produce safe food before it is supplied out to consumers.
FINANCEAPPROVAL
Financing a business is an important requirement to consider as priority. In this case, we would need certain approvals from banks and financial investors as one of our sources in generating capital. As a business, we decided to make a tendering approach to Common Wealth Bank on their services of loan provision.
PRODUCT/SERVICE/ NEW BUSINESS
VALUE PROPOSITION
We seek to propose the best value to our customers by providing high quality service based on the needs of any consumer. We seek to offer high quality food that can be customized to the taste of wide cultural variety and to dietary needs with personalized advice given by dietitian that can be delivered across Sydney when required.
OUR MAIN SOURCE OF COMPETITIVE ADVANTAGE
As a business with inclined innovative aspiration, we aim to source for our competitive advantage by becoming agile to the fastest growing trend in the society today. Technology is a focal point of our key strength at which we place huge reliance in best satisfying the needs of our consumers. We also have other key sources we identified as a service to create a competitive edge against our competitors in the food industry.
Technology
We aim to utilize the growing trend of technology in competing in the marketplace. With technology, we believe to have a greater outreach of customer base who tend to be conscious on their food choices because of health issues. And because of this, we would develop a virtual kitchen application as a platform for customers to select and control the content used in their food preparation.
Benefits of a Dietician
As we aim to provide the best service to our customers, we also consider the need for good health. By using the kitchen application, we would provide options for suggestive comments on food contents from a dietician for customers to have ideas on how to better manage their health status.
Fresh Food Delivery
Based on our research on IBIS, we observed that food delivery contributes 2% revenue increase in 2017- 18 in Australia’s food market. In other words, it is a growing market, but we also observed the rate of unsatisfactory customers experience when foods are not freshly delivered. In this case, we plan to utilize this shortcoming as a competitive advantage making significant investment on vehicles with built in ovens. With this invest.
PATENT PROTECTION
As we aim to reach customers utilizing web and mobile application as our platform, we need to acquire a patent to protect our business growth. The application and website will be designed to match our standards and needs which will be protected by patents as it is the platform provided for customers to customize their food. Based on the Patent rights given from IP Australia, the business idea can be registered for patent in IP Australia.
TECHNOLOGY DETAILS OF VIRTUAL KITCHEN APPLICATION
The application we provide to customers is defensible as patents can be gotten
The application is unique in terms of its customizable feature with dietary suggestions based on data gotten from eating habits.
It is sustainably competitive because by the nature of the application it can constantly be upgraded.
PROCESS DIAGRAM FOR VIRTUAL KITCHEN APPLICATION
MARKET ANALYSIS
OUR CUSTOMER’S PROFILE
Target market we aim to focus are people that fall under the class listed below;
· Age: 20 – 40 years
· Professionalism: Study and Working-class condition
· Time and health constraint people
Income – We aim to target the middle-class customers; a broad group of people who fall economically between the working class and upper-class classification. The middle-class consumers in Australia, new south wales earnings averages annually to $80,132 in 2015 – 2016 with weekly spending of $1,302.
Media: Our target customers are more drawn to media attractions on platforms such as television advertisement, YouTube adverts, Instagram and Facebook ads etc.
MARKET SIZE
The food market is a massive billion-dollar industry in Australia with even a small section of food delivery being $1 342 million in 2018. With expected market growth from 2018-22 expected to be 17.6% per year the market is both large and steadily growing. With the largest amount of orders coming via online orders (taking $1,270 million of the total revenue) this market is prime for online based delivery service.
TRENDS IN THE FOOD INDUSTRY
The largest trends taking in food include I the growth of external delivery, such as UBER eats. This provides a means for many businesses to deliver food increasing their reach and saturating the market with food that can be delivered. This can negatively affect our new startup as it increases the amount of options that customers have when ordering the food. However, the largest weakness of UBER eats is the quality. It is known that sometimes delivery times can largely vary depending on the driver at the time due to the lessened controls for hiring that these services have. As such to lessen the impact of services like UBER eats on our service by providing consistent high-quality service though specifically designed delivery vehicles and increased logistics. Other developing trends include investments in automated delivery technology, with the most known on the market being the domino’s pizza delivery robot. Although the technology is rare currently in Australia developments have been overserved globally delivery robots have been a. A large investment into drone technology can result in high quality delivery and cheaper long-term costs however the upfront investments for the technology may be too large for smaller business as such larger competitors like Dominoes and McDonalds may dominate the food delivery market with more efficient and effective delivery.
The greatest food trend development in Australia is the move towards healthier and greener food. The trend for more healthy food can be a big boon for businesses such as BOOST and ours where healthier ingredients and cooking methods are used. For greener food our business needs to find green food suppliers to capitalize on the market.
MARKET EVOLVEMENT
As stated previously one of the largest developments for the future is the use of automated delivery either with ground or air. Although the laws are still in the works for in air drone delivery and self-driven vehicles if allowed drones can lead to faster and cheaper delivery leading to lower costs and increased customer satisfaction albeit at a higher initial cost. Improvements to delivery technology can also be expected through better logistics with applications such as WAYS and improvements to food storage to ensure food quality.
COMPETITOR’S REACTION
The main targets for our competitors to react is to improve their food both via quality and customization as well as improvements to their delivery quality. Larger competitors like McDonalds unlikely to improve their food quality as it will go outside their market plan however the threat of food customization is apparent. With technology already in place through the My Maccas system as such if ported to a delivery app it can prove to be a major threat to our food customization market. For other businesses both issues are possible however the higher costs and effort to find the suppliers can be a barrier of entry to those seeking higher food quality. For food customization our patents for our app and the difficulty in making a food customization app can prove to be high barriers of entry.
Improve to deliver quality for our competitors if possible via improvements to logistics and transportation. For logistics there is a limit to how much competitors and our businesses can improve as such we need to ensure we have the best possible as the earliest possibility rather than following the competition. For transportation technologies, barring the use of drones since the law is still murky about it, our patents will protect our specialized transports as such it is difficult for competitors to simply copy our design however it doesn’t prevent them from investing in their own. As such we need to dedicate research and time into consistently improving our transports to ensure ours remain at the top.
In the case laws change that allow for automated delivery it is guaranteed that larger businesses like MacDonald’s will invest heavily in drone technology to improve their delivery speed which is beneficial to their delivery quality. It will be difficult for us to compete with the larger businesses due to the higher startup costs for the drones however we need to match them in drones and improve on them via integration with our own technologies in order for us to stay competitive.
MARKETING PLAN
Sales and Marketing Strategy
To target those simply looking for a meal subscription-based system or those who just want food delivered it is most viable to using the web as means of getting our getting out name across. One of the largest advertising platforms available is YouTube advertisement which can range from 10c- 30c depending on how many filters are in place. Sponsorships with popular youtubers is also a viable option to get the basic market. Sponsorships with celebrity chefs is an option that can be explored, with the most viable options being creation of a unique dish for our company or simply endorsement. Other viable options for online advertisement include using google AdSense which can also provide us with those who’s defining product from our company is simply the food. Physical marketing to those people can include coupons given out by people on the street to give them free meals to try our service and promotions such a reduction of costs on days with lower productivity.
Additional advertisement to those looking to use our product for health benefits can include collaboration with medical experts for those who have special dietary requirements and similarly collaboration with trainers to those looking for healthier eating. To pursue these relationships, we should offer finders fees for those who introduce to customers to us. Collaboration with Australian athletes either through endorsement or sponsorship can especially be beneficial to those looking for a food option that complements their fitness. To promote confidence in those who really care about their food videos that show our production process with backing from nutritionists and health experts. For physical advertisement we can use the previously stated advertisement promotional papers placed in strategic locations such as gyms and other health centers.
A simple a free form of advertisement that is possible is the use of social media by customers of our organization such as encouraging people to share and tweet about their meals. Stretch goal benefits such as providing everyone with a discounted meal if a certain number of retweets within a certain time are met can also be used via this method to generate a large amount of social media attention. Through this we also have a free means to update customers on changes to our organization.
For both cases we want to avoid physical advertisement such as billboards and magazine ads as these are mediums that our target audience will interact much less due to their digital nature. On a similar note television advertisement is also a less viable option in comparison to internet advertisement.
Consumer Relationship
To grow our organization consumer relationship, it is imperative to have both features that are strong to begin with but also consistently improve. One of the earliest methods we can use is creating an eye-catching and simple to use website and app will be integral in pulling in prospective customers and keeping them. The other base method is to ensure that our food is of high quality, as advertised, and arrive promptly and on time, especially in the case of our subscription model. Our primary unique feature to ensure a developing customer relationship include our primary service of customization of food to be able to provide to a wide range of unique and selection tastes which is then delivered. To further aid those who are looking to our business for health reasons we also provide access to dietitian who can customize meals to customer specifications as required.
When attracting newer customers, it is viable to give the first few meals when they order in a larger batch to begin with for free such as the first 2 when 7 are ordered. A similar model can be used to ensure longer term customers such as 1 free meal every 12 their order via delivery or a set amount of free meals given with each subscription eg. 1 free month of meals in a yearly plan. For those with long term subscriptions small gifts can also be a possibility such as greeting cards and cakes during a birthday.
Our main means of updating our business would be the adding newer menus as such long-term customers can be given voting power as where to primarily focus our resources. In the same vein menus for extraordinary events can also be a possibility such as Christmas roast during December or a more Australian menu during late January. Other improvements can result from improvement of logistics in the future where there are more locations to deliver from and the ability for cheaper food and additional improvements to the usability and accessibility of the app and website.
Cost and Strategy
The main costs to acquiring these customers however can vary massively. As stated previously YouTube advertisement can cost from 10-30 cents per showing and in the case of sponsorships not definite amount can be used for everyone. Finders fees in the case of new introductions can be mitigated by providing a small cut from the money acquired from the referral such as 10-15% of the total amount of profit obtained. As such marketing can be broken to advertisements, referrals and first-time benefits be pay as you go methods while sponsorships would typically require are large up-front payment.
Competitors
The main worry for competitors is apply similarly services to ours the most important of which is our food customization. To avoid being over taken we need to ensure that our menu and customization is the largest or the best for it for the price which can be accomplish through first mover advantage in investment to the proper chefs and suppliers. Patents over the customization app and website will make it harder for competitors to create an easier or as easy method for customers to customize their food. Other services that we to worry about include the delivery of food which we simply need to ensure our food arrives at a timelier manner than its competitors without the sacrificing quality. Our patented trucks can also aid in ensuring our food will arrive in the same quality as when they left the restaurant. Similarly, our service of providing customized dietary plans can also be utilized by our competitors however it would be more difficult for them to quickly enter this market as they would need to be competitive in our previously two points of food and delivery and they will also lack the accumulated data we have gathered on the customer. The main issue of a competitor can be a cheaper subscription-based service which offers cheaper food without our other benefits such as the customization targeted towards those who simply want cheap food delivered daily. This will can be somewhat rectified by added cheaper than menu options or by beating them in delivery quality.
Unknowns
The biggest unknown in this market would be the ability for many chefs of different cuisines to collaborate and work together in a single kitchen as different cuisines would have unique needs. Smaller unknowns include how to beat the heavy traffic issues in the Sydney region and the amount walk-in customers to our business as it lacks a proper store font.
The Four P’s
Product
The main product of the business would be the customization options they our meals offer and the ability to eat the food in the same quality as if it were at a restaurant. Supplements to this product include subscription-based models and nutritionals to aid in meal choices.
Price
The pricing model would differ from a meal to meal basis but typically we expect a meal to cost $23 dollars when delivered. These meals can ‘subscribed’ to essentially create a service like a daily newspaper service where meals that you choose can be delivered at a specified time. These subscriptions can vary in price and Typically the service of the dietitians is more targeted to those who subscribe as such a more balanced diet can be offered but the option to enter your info to also receive the benefits from using our dietitians. The price of the subscriptions would typically be the same as regular meals compounded by with discount either via several free meals or a percentage off.
Promotion
Our main forms of promotion would be online advertisements with YouTube and social media as primary focuses. Collaboration with health experts and celebrities can be viable tactics to appeal to the customers. Other promotions such as specials during events, first time customer rewards can also be used.
Place
The main place where the business takes place would be the app and website which is integral to the whole business. The app and website will allow for users to both customize their food and enter their data for the nutritionists to make their recommendations. Optimally the mains operations center will be near city centers however cheaper less close locations can also be viable.
OPERATIONS PLAN
Nuts and Bolts
The resources for our food will be sourced from Australian agriculture as possible and imported if necessary.
The main method for delivery of our service will begin with our app or website where the customer makes their customized order. If they customer is a subscriber or has entered their recent eating habit our nutritionists during this time are able to make recommendations to them. This customized meal is sent to the respective chefs of that cuisine where it is cooked and delivered how the customer has requests (eat in, take away or delivered). The delivery will take place in specialized trucks which will ensure that the food arrives at a high quality.
Distribution
As stated the primary distribution will be handled through the usage of the app and website to order meals. Even in the walk in a modified version of the app will be provided to the customer to make their order. In terms of delivering food various food delivery vehicles will be used depending
Location and Equipment
The main location would be large and cheap area such as a warehouse. The location doesn’t need to be high end however should be close to high density area to ensure delivery doesn’t take too long.
The main equipment needs vary by department as such each department will be broken down into various sections. Apart from chefs, it is expected that each department is adequately supplied with utility such as desks and computers. The IT department however will require a cool location for the server which will store the user information that will aid nutritionists in their decision making which can provide their insight to the customers and chefs via the app and organizational wide channels. Chefs will be requiring customized kitchens and spices for each cuisine. Something to receive the digital orders that the customers are making and an area to store ingredients safely would also be required.
Other smaller features include tables and equipment for when people need to eat in, simple ambience, bathrooms, break areas, meeting room for heads of staff and lockers for employees to change if required.
Labor and Contractor Requirement
The main requirements for our labor can again be broken down by a department by department basis. The most important to begin with is a certified manger and the IP department that builds and maintain the app which is the crux of the organization. Nutritionists similarly will also require the proper certifications. Then the chefs require various heads of their own cuisine with regular chefs to aid them in cooking. General kitchen helpers will also be needed such as with receiving and helping walk-in customers and cleaning after the chefs. For delivery it is appropriate to have specialized drivers for each location to ensure speed of deliveries.
As for contractor require we need to ensure that our building and delivery vehicle is within council standards.
Pay as you go
We can control our expansion via the amount of cuisines we have available at or organization which can limit the number of chefs, kitchens, and ingredient orders we need to maintain. We can also expand to higher server sizes and the customer base grows and have a smaller cheaper server when starting out. Similarly, we can limit the number of nutritionists we hire and helpers with hire in relation to the number of customers we have.
FINANCIAL PLAN
Based on our plan to implement the proposed business idea, the table below shows the figures of assumptions made for calculating the sales forecast and cost of labor and materials to have an idea of the profit achievable from implementing this business idea.
Sales Forecast:
The sales are forecasted for five years by evaluating the daily capacity of the restaurant considering two meals a day that is lunch and dinner. Then it is further divided into food and beverage. After analyzing the ratio of lunch and dinner, it is estimated that lunch is 45% of total sales and dinner is 55%.
Labor Analysis
Labor cost is one of the major expenses in our business. The wage rate is estimated taking the current market wage rate of the related jobs. Further the shifts are considered which helped in estimating the labor cost for the income statement.
Income Statement:
The income statement consists of all the necessary items required for our business. The major expense includes the cost of goods sold and the employee salaries which can be easily extracted from the sales. Depreciation for the fixed assets is considered under straight line method. The annual net profit seems promising with a growth rate of 7.4, 8.2, 8.8, 9.1, and 8.8 respectively.
Cash Flow Statement:
The Cash Flow Statement shows a consistent increase in cash inflows annually. An initial capital of $5,30,000 was invested in the business which was used to purchase delivery vehicles, infrastructure of the warehouse and restaurant, and working capital. Partners have contributed equally that is $50,000 each and a loan of $3,30,000 was taken from Macquarie Bank with 8% interest. The interest on loan is returned annually and the amount is $3,600. Depreciation is added back in this statement.
Return on Investment:
It is calculated by taking average of the earnings of 5 years divided by the initial investment. The return on investment with the forecasted data gives a result of 49% which is very reasonable for the business to do well soon.
Payback Period:
Payback period is the time taken by the business to payback the initial investment. The payback period for this business is estimated as 3.223226586 years which is again a very good sign for the business to flourish.
Net Present Value:
It is the difference between the present value of cash inflows and the present value of cash outflows over a period. The NPV derived from the estimated data showed a positive balance which shows the business is said to be a profitable business. The NPV concept states that the project with negative NPV should be rejected and the project with positive NPV can be invested.
RISK MANAGEMENT
As we progress towards building a viable business plan, identifying possible risk associated with the activities involved in our business idea is vital. This is identified to have a foresight and prepare for measures that can be taken for control.
Market Risk
| IDENTIFIED RISK | LIKELIHOOD OF THE RISK | CONSEQUENCES | SEVERITY OF RISK (LOW – HIGH) | COST | CONTROL |
| Poor customer feedback | Possible | Serious | Moderate | $10000/yr. | Upgrade |
| Not Gaining market traction | Likely | Significant | High | $100000/yr. | Keeping regular updates on Market Trend |
| Service substitution | Possible | Serious | Moderate | $75000/yr. | Marketing by offering promotions |
| wrong target market | Unlikely | Major | High | $100000/yr. | Proper market analysis |
| Poor market strategy | Unlikely | Significant | Moderate | $30000/yr. | Outsourcing to consultants for Marketing approach |
| Imitation of service model | Possible | Significant | High | $60000/yr | Patent |
Execution Risk
| IDENTIFIED RISK | LIKELIHOOD OF THE RISK | CONSEQUENCES | SEVERITY OF RISK (LOW – HIGH) | COST | CONTROL |
| Project not completed within the scope | Possible | Major | High | $50000/yr. | Periodical review of schedule |
| Scope not addressed properly | Possible | Significant | High | $100000/yr. | Final Review before Launch |
| Low demand on service | Possible | Major | High | $100000/yr. | Increase marketing outreach |
| Low supply to demand ratio | Unlikely | Major | High | $80000/yr. | Proper Stock Management |
| Shortage of raw materials | Possible | Insignificant | Managed Risk | $10000/yr. | Proper Inventory maintenance |
| Increase in inflation | Likely | Significant | High | $50000 to $100000/yr. | Regulating financial plan |
| Not Delivering On-Time | Possible | Significant | High | $80000/yr. | Improved logistics and estimations of delivery |
| Order Mismatch | Rare | Insignificant | Managed Risk | $30000/yr. | Implementing Barcode scanner Technology |
Company Risk
| IDENTIFIED RISK | LIKELIHOOD OF THE RISK | CONSEQUENCES | SEVERITY OF RISK (LOW – HIGH) | COST | CONTROL |
| Conflict with employees | Possible | Serious | Moderate | $10000/yr. | Discussing settlement terms |
| Application Malfunction | Possible | Catastrophic | Extreme | $100000 to $200000/yr. | Regular maintenance |
| Employee contaminating food | Possible | Serious | Moderate | $10000/yr. | Regular Supervision |
| Employee customer dispute | Unlikely | Major | High | $50000/yr. | Discussing settlement terms |
| Human error by Chef | Unlikely | Serious | Managed Risk | $10000/yr. | Periodical assessments |
| Employee pay dissatisfaction | Unlikely | Insignificant | Managed Risk | $10000/yr. | Modifying employee benefits |
| Food storage failure | Rare | Insignificant | Managed Risk | $10000/yr. | Regular Maintenance |
| Loss of important documents | Rare | Catastrophic | High | $100000 to $200000/yr. | Business outsourcing with Cloud SaaS |
EXIT STRATEGY
Merger & Acquisition
Mergers and Acquisitions, usually refers to a larger company buying a smaller company or merging together. The main advantage in this strategy is that the buyer has higher values our business since they will have a immediate requirement of our products and services. On an auction with multiple bids, the value increases and if a competitor participates on the trade, possibilities of negotiating higher price term occurs.
Convert to a Full Time Storefront Restaurant
One of the main features in operation of this business is the delivery option. And so, a significant part in the financial plan is made for setting up the Delivery unit. Avoidance of cost can be achieved by eliminating the delivery unit and thereby converting the business into a Full time Storefront Restaurant will modify its financial strategies.
Sell the business to a Friendly Individual/Third Party
Identifying a buyer who can be a friendly individual will be a supportive exit strategy, since we have an option of selling the business to someone who has always known about our business process and proceedings. A third-party buyer who has the right interest in our business can also be identified thereby, we have the option of negotiating better price value.
RECOMMENDATION
The Business Process Model designed below, illustrates the various stages of investments involved in building our business plan. The risk of failure is also considered by which different financial reports are created for comparison and hence it will be useful in making cognitive operations plan.
On a success scenario, where the possibilities of all tasks getting completed on time predicts our financial estimation based on the individual costs we considered for individual activities. Working on a pro-active method, we identified multiple scenarios on various stages of investments involved and for every different scenarios we assumed the risks of all possible failure outcomes.
Two out of all the scenarios have been represented with an approximate cost estimation and the changes incurred in costs due to the failure risks are identified. On consideration of all the possible outcomes, our business plan has been legitimately documented which helps us to identify all the risk factors and control it.
The Business Plan is made with more inputs for perfection and hence the next step would be to create a prototype of the Virtual Kitchen Application. By this measure, it can eliminate the risks of taking failures during testing phase. Every single measures and steps to process this plan are defined by considering workload, financial requirement, benefits, outreach, time duration, risk factors and legal regulations. On a nutshell, this report provides the methods, metrics, risks and confidence create a valuable business and introduce it to the right market.
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The consumer decision making process involves how consumers identify their needs and gather and process information prior to a purchase. Consumer decisions involve how the emotions and preferences of consumers can impact their buying decisions.
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