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Evaluate sustainable economic, social and environmental practices and value systems from different disciplinary perspectives.
The Royal Australia Restaurant will be located in the 1548 Fissure Rd, Sidney. The restaurant will be formed aiming to serve a range of healthy as well as tasty food to the citizens of Australia. The restaurant will be of 86 sitting arrangement in two attractive floors providing varieties of home-style dishes to the customer. The business style for this particular restaurant is partnership. It will be formed with an owner of greater experience from various food and beverages organizations. These experiences will be greatly helpful for the success of this business approach.
The business will attempt to be a classical home-style restaurant. In the current context the people of Sidney has been highly concerned in respect of growing rate of obesity. The customers are therefore observed to be inclined towards the healthy and conventional foods for being fit in the regular life. The Australian citizens are looking for this innovative business format which will serve them with healthy and nutritious food item. In this context the convenience and healthy food will be most popular and demanding in the market. Therefore, the Royal Australia Restaurant has a greater scope to be successful by operating their business on the basis of convenience restaurant business approach.
Business Objectives:
The major focuses of accomplishing the business success for Royal Australia Restaurant are mentioned below:
To be the most popular home style conventional and healthy restaurant of premium level in Sidney.
To satisfying the customers, by providing quality meals at affordable price along with high graded service
To acquire the 1.00X cover ratio for each of the lunch as well as dinner serving.
To gain below 65% of Prime Cost Ratio.
The mission statement of Royal Australia Restaurant is providing the convenience as well as healthy food item to the citizens of Sidney. Moreover, it also focuses on ensuring the dining experience to a unique as well as relaxing level for the customers. The restaurant will attempt to provide the sense of familiarity and belonging so that the customer will be able to get homely environment. In order to achieve the goal the restaurant will solely focus on provision of menu items which will incorporate first level of ingredients at affordable prices. At the same time, the restaurant will concentrate on developing the workplace environment which will provide the employees a sense of well being, self-treatment, dignity as well as respect.
The major principles of Royal Australia Restaurant which will guide the employees to scale the milestones towards the success of business approach are discussed below:
The restaurant will focus on processing food incorporating with the highest quality of ingredients. This way the company will be able to provide the most hygienic as well as healthy conventional food item.
The restaurant will aim to form the servicing style of Royal Australia Restaurant on the basis of the values of the family culture of the Australian people. This way the business will be able to treat both of customers as well as staffs in a satisfactory manner.
The restaurant will focus on exhibiting the sense of gratitude to all of the stakeholders of the respective business. The business will deeply appreciate their contribution to the entire business.
The restaurant will focus on the provision of friendly as well as warm service in the context of family style restaurant. The restaurant will generate a comfortable as well as informal environment in order to enhance the customer satisfaction.
The restaurant will try to attract the repeat business by satisfying the customers so that the customers return to have their dinner in a friendly and homely environment. In this case the word of mouth will be proved as major tools of business advertisement.
The restaurant will develop a higher pay structure so that the business will be to employ most efficient as well as experienced employees. This way the customer will impressed from the high quality service provision of the restaurant.
The restaurant will be located in the centre of Sidney at the crossroad of three busy streets. This way the restaurant will have the steady supply of customers.
The Royal Australia Restaurant will provide a great range of conventional as well as healthy food item to the citizens of Australia. The products will be divided in three distinguished categories which are breakfast, lunch as well as dinner. The list of the products in the restaurant will consists of several food items such as cheese, vegetables, fruits, fish, seafood as well as poultry and game. There are three kinds of cheese which are semi-hard, soft as well as blue will be served to the customers. The vegetables which will be categorized in various group such as root, leaf, breccias, shoot, fruit, bulb, squash as well as pods. In addition to that, the restaurant will provide generous range of seafood of two categories which are crustaceans as well as mollusk. The restaurant will also provide dish of poultry, feathered game along with furred game.
The restaurant will employ the chef as the leader in respect to food and beverage equipment along with vending machines. The major strategy will be taken by the chef is aggressive market penetration. The aggressive market penetration will be greatly focused to minimizing the competition level in the restaurant industry of Sidney. The restaurant will be mainly focused on the developing the awareness regarding the offered products, target customer population size as well as the customer loyalty (Walker, 2013). The restaurant will offer the best service by using the first graded restaurant equipment and vending equipment. The equipment will help the restaurants to providing the quality food item to the customers. This way the customers will be ultimate satisfied by the quality level of food.
This offer will be commercialized with the help of several processes. The restaurant will firstly focus on participating in various trade shows which will be valuable resource. Trade source will greatly assists the restaurant to develop a generous brand image in the city of Sidney (Le, 2015). A t the same time, the restaurant will be able to reach a number of cultural customers who will be inclined to accept the homely appeal Royal Australia Restaurant. In addition to that, the distribution open houses technique is another most important method of business communication of the Royal Australia Restaurant. This way the potential customers will be encouraged to test the environment of the respective customer. Therefore, it will provide a grand opportunity to the restaurant to impress them and operate business. At the same time, the developing and using the online website will be the third method for reaching maximize. The Australian citizens are highly inclined to access the social media sites (Lee, Kwag & Potluri, 2015). Therefore by approaching the online websites restaurants will be able to reach a higher level of customer base. In addition to that, the restaurant can arrange a number of promotions as well as campaign in the online website. Furthermore, the restaurants have a greater opportunity in respect of conducting the market research in an efficient fashion.
A new company Royal Australia came up with a new business plan for the need of the customers in Sydney. The new company thus provides conventional food item towards the customers. Australia is well known for its emerging trend in conventional food. Royal Australia thus came up with extra benefits like the food that will be served proves to be nutritious for the customers as well. The market analysis of the company thus helps the organization to increase the rate of profitability and also helps to analyze Sydney market as well. The food industry in Australia consists of the variety of products thus it help the new company Royal Australia to add some more benefits which help to provide consciousness towards the health of the customers as well. The company with effective implementation of the strategy helps the organization as a whole in an expansion of the market (Wedel & Kamakura, 2012). The market analysis of Royal Australia can be analyzed with Porter’s five forces model and Pestel Analysis as well.
The five forces model of Porters' thus helps Royal Australia to analyze the market trend and help the company to increase the growth rate of the company as well. The five forces model also helps in analysis of business strategy which further helps in the improvement of the plan as a whole.
In the food industry, good service towards the customers stands as the vital part towards the organizational success (Lamers et al., 2012). The service rate helps the business towards further development and also helps in increasing the profit growth of the business. Royal Australia thus implements the effective strategy that helps the company to improve the weakness of the business and also helps to strengthen the opportunities for the company as well. Thus, Porter's five forces model helps the business regarding five competitive forces:
The threat of new entrants – The new business always stays at a threat from the competitors already prevailing in the market. The threat also throws a challenge towards the existing companies in the market regarding losing the market share (Tougher et al., 2012). The profit rate invites more stakeholders towards the new business which further helps in attracting more customers towards the organization products as well. Royal Australia thus evolved with a new venture of providing the nutritious product of conventional food which further helps in influencing more customers towards the new products (Porter & Tanner, 2012). The new entrants thus need to provide good service with extra benefits which might help the company to earn for customer satisfaction and thus help in retaining the company towards competitive success.
The Threat of Substitutes – The threat of substitutes also led the company towards improvement which helps to retain its position in the market. The threat of substitutes in the market sometimes might lead the company from profit to zero level, as the company tries to maintain its position through lowering the cost labor and thus affect the profit rate consequently (Stern & Ritzen, 2012). Thus, the new company Royal Australia tries to provide best services to the customers with discounts to attract more customers towards the new company.
Bargaining Power of the Supplier – The bargaining power helps the business to implement effective pricing strategy. Supplier helps the company to take steps regarding the implementation of the revised pricing strategy and the quality of the product. The number of suppliers thus helps Royal Australia to provide the customers with best services at the much low cost which further helps the company as a whole to raise the profit margin of the organization.
Rivalry among competitors – The rivalry in the market is created if the companies implement the same strategy for the same size of the organization. Thus, Royal Australia implements various effective strategies with making them unique from the other food industry and helps the organization to increase the profit margin of the company as well. The nutritious food thus helps to gain more loyal customers and increase the growth rate of the company.
The Pestel study helps the company to evaluate the external business environment which further helps in improvement of the organizational performance as well. The pestel analysis thus includes:
Political – The political environment of the country thus influences the business plan of the new company which further affects the profit growth of the country as a whole. Australian government thus implements the effective strategy to attract more customers towards the organization and also help Royal Australia to expand its market in the international scenario.
Economic – The economic structure gets influence by various factors which affect the productivity of the company as a whole. The fast food industry in Australia gets affected through recession prevailing in the country at times (Coase, 2012). Thus, Royal Australia with its new approach and strategy helps the company also at the time of recession and thus help in reducing revenues and profits as well. The improved service helps Royal Australia to gain more loyal and conscious customers who help to protect the health of the customers and thus add value to the business.
Social – The Company needs to implement the effective strategy which further helps the company towards the social development (Gebhardt et al., 2012). Royal Australia implements the effective strategy which helps the customers to maintain the well-being of the customers. The nutritious product of the organization also helps to attract conscious customers and thus increase the profit rate of the company as well. This also helps the company to penetrate easily in the market and also helps in sustainability.
Technological – The new business plan also needs to implement the effective strategy and thus helps in a technologically improved product as well. The conventions product by Royal Australia needs to be well manufactured and thus aim towards the health of the customers. The technological nit must also aim towards the nutritious product and thus help the company to serve the best product to the customers as well.
Environmental- The environmental issue needs to be noticed before planting a new company in the region. Thus, Royal Australia needs to implement organizational products in accordance to the environmental needs and helps the business to attract more customers towards the company.
Legal – The legal environment within the organization plays a vital role in determining the company success. Certain legal laws need to be implemented by Royal Australia to protect the employees within the workplace and also helps to maintain the policies and procedures of the organizations in the market as well.
Competitive Strategy and Market Positioning:
Royal Australia implements the effective strategy in planning a new business plan which helps the company towards improvement and development in the market. The company implements SOSTAC Model, which helps the company to analyze the Objective analysis, situation Analysis, Tactic, Control, Action, and Strategy.
Situational analysis helps the company to forecast the external and internal factors which affect the performance of the organization. The analysis also helps the company to implement the effective strategy which helps in the growth of the company.
The objective analysis also helps the company to achieve the sales and the revenue rate within a short span of time to retain its position in the market. The analysis also helps to incorporate effective strategy towards a development of the company in the market as a whole.
Tactics involve the marketing 4 Ps which help the company to analyze the product of the company (Kirchgässner et al., 2012). It also helps the company to analyze the pricing strategy, place of the new business and promotional activities as well. Thus, it also helps Royal Australia to evaluate the weakness of the company and provides with the opportunity towards improvement in the areas of development. The tactics thus help the company to gain competitive advantage with effective implementation of effective pricing strategy.
The action also refers to the strategies that help the company to implement within the workplace and helps to increase the growth rate of the company. The Action plan thus helps Royal Australia to attract more customers towards the organization and helps the company in increasing the growth rate of the company as well. The action plan also helps the company towards the improvement and thus helps in developing the new business plan in the international market scenario.
Control thus deals with the monitoring and evaluation of the strategies that will be implemented within the company for the success of the company as a whole in the market (Dybvig et al., 2012). The control also helps Royal Australia towards the implementation of the strategies within the workplace which further helps in the improvement of the company as a whole. The control also helps Royal Australia towards the incorporation and helps in gaining more loyal customers towards the organizational products. Thus, it helps in the improvement and development of the marketing strategy which further add value to the organization in the international market.
Market segmentation:
Market Segmentation helps Royal Australia to divide their loyal customers regarding demographics, location, and habits which help in the market segmentation of the company. This also helps the company to divide the target customers into terms sex, age, annual house hold income, etc. The marketing strategy thus plays a vital role in determining the product improvement and also helps in designing a business plan which effectively attracts more loyal customers towards the products as well. The segmentation of the plan also helps the customers to get leaner towards the product which further help the company to attract customers from various segments of the market (Trockel, 2012). Thu, this helps the company to increase the profit rate and also helps in increasing the growth rate of the company as well.
The positioning of Royal Australia helps the organization to segregate the customers as per the requirement of the market and thus help the company to retain its position in the international market. The positioning helps the company to improve the quality of the production which further helps to satisfy the need of the customers in the market. The satisfaction level of the customers increases with the brand value of the company. The brand value increases with the services provided at its best quality to the customers (Slater & Narver, 2012). This helps the customers to get attracted and thus help in increasing the rate of development n the international market. The positioning helps the company also to analyze the brand quality of the company which further helps in the sustainability of the company as well.
The target customers help the company in analyzing the segmentation of the company. The effective strategies help to target the customers in the market. The targeting also refers to the designing of the products which helps in the success of the business as well. The targeting of the business also helps to increase the loyal customers towards the product and also helps in increasing the growth rate of the company as well. Targeting also helps Royal Australia to identify the specific customers who potentially buy the organizational food products even at the time of crisis. The targeting of the company mainly targets towards the three segments group which particularly specify the niche customers, mass customers, and the varied customer groups (Shynkevich, 2012).
Niche Market – The niche market also helps the company towards the product design and to attract more specific customers towards the organizational products. This also helps the company towards the organizational products at premium prices. The niche market also refers to the sales volume which is low, but the sales revenue of the company rise high due to premium prices for the heavily organizational products.
Mass customers – The mass customers get attracted towards the organizational products and thus help the company towards the development in the international market (Barringer, 2012). The design of the business plan implemented by Royal Australia helps to satisfy the generic needs of the customers which further help the company to meet the specific requirements of the customers individually. The pricing strategy for this segment is low and thus refers to companies to gain competitive advantage.
Varied marketing – The marketing strategy within the workplace helps the company to gain more productivity and helps in the growth rate of the company as well. The need of the customers thus gets met by the organization through this section which further helps in the growth rate of the company as well. The product price of the company slightly high in this segmentation which helps in satisfying the customer needs in the market (Mullins, 2012). The segmentation also helps in increasing the market share and rate of sales revenue which add a brand value of the company in the market.
The operational plan of the business also includes the varies products of the business which help to satisfy the need of the customers. The operation also includes the pricing strategy and the location which helps in gaining the growth rate of the company (Mullins et al., 2012). This also helps the company towards the profitability of the company also help to gain the growth rate of the company.
Research and development plan:
The research and development plan helps the company to towards the innovation and development of the new plan in the market. The research development plan helps Royal Australia towards the systematic approach which helps in acquiring the new knowledge and thus helps in developing and improving the concept of the business plan. The development plan thus helps the new company to incorporate the effective strategy and thus also helps in the development of the plan in the market. The research and development plan also helps Royal Australia to reduce the technical problems within the work place. The key operations within the workplace also help the company towards the improvement of the internal workplace and also help in the expansion of the market (Bridge & O'Neill, 2012). The research and development also help in the fundamental service that helps in providing more information towards the market and the customers and also helps the customers through various data in the market. The research and development program is very common within the workplace which helps in the innovation of new business plan and innovative products in the market. Thus, the development program helps the company also in analyzing the cost management and effective marketing strategy which further helps in the business strategy as well.
The research development also helps the company towards the implementation of effective strategies which help in the expansion of the market (Kwong et al., 2012). The development program also helps the business to satisfy the need of customers more towards the organizational products and helps in the development of the process as a whole. The research development also helps in the satisfaction of the employees within the workplace with effective implementation strategies and also helps in providing various facilities within the workplace as well.
The development program also helps in the manufacturing development which further helps the customers with high quality of service in the market (Zikmund et al., 2012). This also helps the company towards the developed product towards the customers comprising of nutritious food towards the customers as a whole. The development program thus helps in the sustainability of the company and helps in the improvement of the organizational product as well in the international market.
Australia is leading as the world's most popular and stable economic country which deals with low business risk and sound political system within the country. Australia is known for its strong economic structure which further helps the country to drive the workforce at much low cost. The new business plan thus needs to recognize the risk factor which helps the business plan to improve the economic structure of the company in the market (Hopkins, 2012). The company needs to implement effective risk management which helps in managing risk management. The risk management helps in regulating the risk factors and also the policies and regulations of the company as well. The risk management also helps in implementing inadequate capital and location which add risk for new business as well.
The new business plan might face risk regarding the adequate funding of the company. The new business Royal Australia thus needs to implement the effective strategy to maintain the risk factor and thus helps in the improvement of the business policies in the market. The new business plan also incurs more burden as the company incurs much capital to open a new restaurant in the market. The company also needs to implement effective pricing strategy to retain the company in the market and also to retain its position to run the company for starting new months. The pricing strategy also sometimes includes the discounts for the promotional products towards the customers for the new business plan (Zairi, 2012). The company decreases the risk plan after providing discounts to the customers and thus helps in gaining the growth rate of the company as well. The company also incurs in decreasing the risk plan for the several months which help the employees to get satisfied within the workplace and also helps in gaining profitability of the company as a whole. The company success also depends on the location of the company which helps to attract more customers towards the organization and thus help in increasing the growth rate of the company as a whole. The location of the restaurant also helps the company to gain customer satisfaction and thus helps in improving the quality of the productivity as well. The location of the company also led the organization towards incurring rental cost little high which led the company towards competitive scenario. The menu and the price also depend on the location of the restaurant which helps the company to gain profit rate and also helps in gaining customer satisfaction in the market.
To avoid the risk factor within the workplace and the organizational structure, the employee need to be trained well enough to attract more employees within the organization (Barrow et al., 2012). The employees also need to be trained to maintain the health and safety of the employee in the market. Moreover, the new business Royal Australia needs to implement CCTV Cameras to implement safety and security for the employees and the customers more towards the organization. The cameras also prevent the organization from any mishaps which add value to the brand value of the company. The emergency exit and installation of fire work, as well as smoke alarms, also need to be installed which help the company to reduce the risk factor as well. Thus, the reduction of risk strategy helps the company towards gaining sustainability in the market.
The Profit and Loss projections for the primary three years are laid below: (Figures in AUD)
Profit and Loss Statement for three years
The abovementioned profit and loss statement offers deep insight over key aspects of the firm in relation to the financial segment. The important financial indicators in this regard are namely, sales, gross margin and inventory. The sales for the beginning year amounts to AUD 470,710 (Alborzi, Roodposhti & Sabet, 2013). Slowly, the sales, amassed to 826,000 AUD in the subsequent year. The expenditure in this regard are namely, rent, payroll, insurance, utilities, promotional activities and others to name a few. The Earnings before Interest, Tax and Depreciation reflects a negative reading with 30,216 AUD (Majumdar et al., 2016). The depreciation in this regard AUD 8050. It is noteworthy, that the interest and Tax Expenses are nil as far as the organization is concerned.
Cash flow report determines the cash availability and proposition of the firm. Here, it is mentioned that operational expenses amounted to 475,000 AUD in the beginning year and accumulated to AUD 820,000 in the subsequent year (Jiang & Grafton, 2012).
The Balance Sheet Projections for the firm for three years are as follows: (Figures in AUD)
The net worth of the firm is expected to rise from (23,700) AUD to 58,500 AUD. The balance sheet reads a decent figure with total assets and liabilities being AUD 145734 in the first year soaring up to 201,604 and 387,711 in the following years (Johnson, Worthington & Brimble, 2015).
Financial Summary:
The firm commenced its business operations with a Gross Profit margin of 38.30 % in the primary year (Maydybura, Gerace & Andrew, 2013). However the firm increased the margin to 38.95 %. However, in due course of time, the company accumulated GP margin that of, 38.64 %. This signifies that the firm maintains a healthy rate as far as Gross Profit is concerned. It is obvious that the beginning year will read dismal rather negative figure, but with sales being perked up the Net Profit of the firm shot up to AUD 97,870 and 181,987 in the succeeding time span (Quinn & Kirby, 2013). The cash flow summarizes that the proposed entity is capable of realizing its objectives in terms of finance and flow of funds. Having said that, it is noteworthy to mention, that the other aspects like operational expense and cash spent and other key metrics witnessed a healthy trend. The Cash balance for the third year amounted to AUD 57,892.
The management proposes that the investors put forth investments worth AUD 18,000. Furthermore the investors plan to reinvest the funds in expansion and enhancement of business operations. Post spending the funds, the management plans to offer the investors near about 20% worth in the business. Moreover, the think-tank is contemplating of inclusion of cafeteria post extension of the building into two-storeyed unit, so that the consumers may enjoy coffee and also different cuisines while visit in the cafe. They can have all the benefits similarly, as they got a chance to visit the multicultural restaurant. In addition to the existing proposition, the organization may venture into take-away offering in the restaurant which would attract the wide range of consumers from varied backgrounds and culture.
There might be certain constrains regarding the financial situation. In case, loans or other financial help might not be available at the time of need. Again, the dynamicity of the scenario of the market has always proved to be a problem for any new company to operate in the market. There are dilemmas regarding the choice and taste of people. These are some of the limitation to the plan.?
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