homework help,online homework help,online tutors,online tutoring,research paper help,do my homework, https://www.homeworkping.com/

1. Get Homework/Assignment Done
Homeworkping.com
Homework Help
https://www.homeworkping.com/
Research Paper help
https://www.homeworkping.com/
Online Tutoring
https://www.homeworkping.com/
click here for freelancing tutoring sites
ASSIGNMENT ON “CHULHA” CASE STUDY
SUBJECT: ENTREPRENEURSHIP AND NEW VENTURE CREATION
SUBMITTED BY: SNEHIL DIXIT
ROLL NO: C30
BATCH NO: MBA GENERAL SECTION C
SUBMITTED ON : 18TH
AUGUST 2014
INTRODUCTION: In any entrepreneurial venture/business whether it’s an individual, a partnership
nature or a corporate nature the success starts with a small trigger which induces an individual or
partners or companies. It is not a overnight effect but the success is depending upon its proper
applications. In the given case study of “Chulha” a small partnership consists of two individuals

2. namely Adesh and Nishant, it is evident that the momentary trigger which came into their minds
of starting a tiffin service business (dabbawala type) in their area where they were working (i.e. in
Bangalore) was that they were missing their homely cooked food. Based on the given case study I
would be analyzing two given questions in this assignment paper namely:-
• Do you think this is a viable business? Support your answer with reasons?
• Are there any changes you would like to introduce in their business model?
Question No.1: Do you think this is a viable business? Support your answer with reasons?
Before I go into the depth of this analysis, I would like to analyze some basics of business viability
and the reasons for why this tiffin services of chulha is a viable business.
Business viability: Viability of any business is measured by its long term survival and its ability to
have sustainable profits over a period of time. If a business is viable it is able to survive for many
years, because it continues to make profit year after year. The longer a business can stay
profitable the better its viability. According to the case study Chulha emerged in the year 2007
now even after seven continuous years as on date it is surviving means that their business is
heading towards long term.
The details/components of a business viability checks are given below:-
• A clear definition of the product or service being developed;
• A clear problem this is solving, and why this approach is better than existing
alternatives;
• A clear idea of who needs it;
• An idea of how much customers will pay for it;
• A plan how all this will be done.
• The Uniqueness
• Upstart Funds
• Customer
• Competition
• Economic Situation
• Timing
• Marketing
• Continuing Cash flow
If we look into all the above components Chulha services meets 80% of all requirements. There is a

3. clear cut definition of their services saying that they want to give quality food, to satisfy the
demand of all types of their customers, a clear cut feed back mechanism, maintaining a website as
a marketing tool etc. They are definitely having uniqueness in them and have a clear cut costings
and a thorough market segmentation study etc which are the main reasons why their business is a
viable one.
Chulha started in the year 2007 in Bangalore, that time the competition was also very less. Infact
at the time of chulha started, they also started like a Bombay dabbawalas who carries tiffin boxes
to various individuals and companies/houses like a home based business. But later on they
developed.
The Reasons for Chulha’s Emergence which led to the success:- (By taking into consideration the
Entrepreneurship Process)
Identification of Problem:- (Grabbing the opportunity)
As per the case study, Adesh and Nishant were the IT employees and emerged as entrepreneurs
later. They were from different parts of India (i.e.) one is from Bombay and the other is from
Calcutta basically north part of India who came to work in South India (Bangalore) as IT
professionals. While employed they were struggling and rather missing to get the home cooked
food in Bangalore city. Moreover in 2007 there were no good home cooked food services
available.
Converted to Customer Need:-(Identifying the Resources)
Adesh and Nishant after finding the problem of their food thought of starting a small tiffin services
home cooked food business. Hence they left their IT jobs and started the business by converting
their individual problems into a main customer need based problem. This is were the Brand
mantra of introducing Chulha emerged. They thought that even if a 10% of the IT sector is covered
they could meet their profits very easily. But fortunately the customer need scenario in Bangalore
after sensing this excellent formula has increased like anything and more over the competition
was almost nil at that time. They took the maximum advantage of this customer need which again
converted as a major demand in that southern region.
Chulha Emerged:- (Acquiring the resources and Managing the Venture)
Chulha started in a small way. Their main mission is to ensure food being served to customers not
just in terms of taste but variety and maintain quality standards, and gaining recognition in this
business. It is practically serving hygienic and delicious food. Started with carrying food in tiffin
boxes and delivered it to their customers in time containing a minimal breakfast and mini thali
system as their startup menus in a limited area in Bangalore. With this they reached a very high
standard of business viability due to their extensive market segmentation ideas. This is to be noted

4. for their high success degree.
Chulha’s Revenue Generation:-
With the minimum amount of Investment, chulha started earning their revenues in a very slow
manner. At the starting time the margins were not very high since they were mainly seeing the
sustainability aspect. In the firt year they were just earning break even amount with their
operations. From second year onwards they started a minimum margin (i.e.) around 5-10 percent
and slowly today they reached a 65-70% margins which is quiet good.
Strong Tiffin service viable Business Model :-
Let us not forget that the Concept of Chulha Tiffin service idea has got a very strong and viable
business model also. Let's mention some of the core points of it:
• Key Partners - Adesh, Nishant
• Key Activities - making good quality home cooked food
• Value Propositions - Healthy home made food with cost effective
• Customer relationship - one to one direct approach
• Customer Segments - Individuals, office goers, paying guests and students
• Key Resources - Individual investments, advance receipts from customers
• Channels - delivery boys, small mobile vans, etc
• Cost Structure - affordable minimal cost
• Revenue Streams - Advance receipts, monthly payments schemes, mostly
on
cash basis with minimal credit periods.
Viablity Proof – allowing to accommodate some strategies:-
Chulha tiffin services business shows a clear cut viability by allowing us to suggest certain
strategies for its future growth. They are as follows:-
• Simple survival technique:- Chulha, delivering hygienic and delicious food in time to customers
was its sole aim. There are many competitors in the market, but amidst competition it had to
create a niche for itself by applying for extensive strategies to offer customer “Value for money”
product.
• Economies of Scale:- Even though Chulha had less profit margins, as it made in bulk, but on the
whole it did make a huge percentage of profit.
• Technologies that can be adapted:- Appointing food inspector, who would conduct surveys in
every week to ensure, the quality standards, hygienic condition of the food, cleanliness and

5. disposal of wastes, separate usage of utensils for veg and non-veg items, proper maintenance of
gas and pipe lines, and other safety parameters (from employees prospective) etc,
• Prestige and CSR activities:- Chulha should opt for different CSR activities like, to fund an
NGO’s working to educate poor children, active participant in the Green Movement, involve in
planning trees in industrial areas to reduce pollution, donating food a Sunday every month to
organization having challenged people, packaging food in paper bags and other recyclable
materials.
• Expansion of Market:- Opening for party orders, Opening for the education market and
planning to open canteens in different colleges.
• Government Policy:- Chulha can opt for an ISO certified standards set against its quality of
food, quality of ingredients used to prepare food. Using these it can set a benchmark for other
restaurant which have to qualify the standards of food served by them. The government can thus
standardize the quality of food served by the other food chains.
• Self sufficient:- Chulha has its own supply of raw materials and it can plan to be self sufficient
in delivery of its products as well. It has its own restaurant space and has its own staff. Hence it is
highly self sufficient.
• Always do annual analysis of chulha’s business with PEST, SWOT, AND PORTER’S FIVE CHOICES
business model analysis which enables them to make future progress without any hurdles.
From the above all indepth analysis I definitely feels that the chulha tiffin services business is a
viable business which can really with stand and sustain for a quite long time.
Question No:2:- Are there any changes you would like to introduce in
their business model?
Chulha now in a developing stage should definitely adopt/introduce as and when is needed. I
would rather insist that they should have their own small R&D department person to implement
certain methodologies since the competition in the market is raising like anything. (example,Its my
meal and Papa’s tiffin etc)
Segmentation:- Chulha has to introduce certain segmentation in addition to their existing ones.
They have to introduce a morning breakfast segment. This will definitely bring additional revenue.
Especially cities like Bangalore, where the Industrial growth is booming like anything year by year,
the working population will also increase proportionately which will ultimately influence the
potential area for business like chulha to tap and develop.
Additional meal features for customer satisfaction/attraction:- Chulha should introduce digestive
food post meal like paan, a small banana fruit or a pack of supaari varieties etc. This definitely
impact a high level customer satisfaction, an edge over the competitors in the market and also
enables the business’s long term sustainability.

6. Market Diversification:- Chulha should try to tap the other cosmopolitan cities like Mumbai, Delhi,
Calcutta and Chennai etc. A critical market survery for diversification has to be conducted and
accordingly modify the business model plans especially the catering packaging systems. There are
certain important modifications like executive lunch, business dinner packages, corporate buffets
etc to be introduced. For this local area agents has to be appointed. Extensive financial planning is
required for this effort. But ultimately lead to high level revenue earnings.
Major Tie ups:- Chulha can have tie ups with Hostels, Corporate Offices, Business Management
Schools, and Engineering and medical Colleges.
Regional Meals:- Since we are talking about chulha’s diversification business model, it is necessary
that they include regional meals like north Indian, south Indian, etc. in their menus.
Encourage Local home makers:- Chulha should give franchisee to local house wives to do this
business and promote Chulha in the areas where chulha itself could not deliver food in time. This
is a very important change they should consider in their business model. By doing this the supply
chain delivery problems can be solved in a very systematic manner with out any problem. Also
Chulha’s management doesn’t have to worry about the local taste of the region’s customers since
it is prepared by the local house wives.
Associated Catering Services:- Chulha should provide catering services to several parties,
functions, and even to the Airlines and Railways. This is one of the major change that I would
suggest to introduce in chulha’s business model. These associated catering services will definitely
increase chulha’s market value and revenue earnings to a maximum extent. They can have
multiple organizational groups for conducting marriage catering, party catering, corporate get-
togethers , government functions catering services etc by way of signing official contracts. They
should enter into the railways and airlines food catering services contracts also. Chulha should also
have association with hospitals for the catering contracts.
Cookery Competitions and award Ceremonies:- Chulha should have annual or half yearly cookery
contests in every regions and territories. This will really boost customers involvement in chulha’s
business as well as chulha can get some great ideas to introduce/change in their business models.
In many countries the catering service business entrepreneurs got their chief chefs through these
type of contests and competitions.
Specialized Nutritional Services:- This is a very special introductory idea for chulha’s business
model.
Chulha should concentrate on this aspect of introducing specialized nutritional catering services
with the help of doctors and dietitians around. The services should be based on the following:-
• Age based Nutritional Concept:- Pediatric (child/infants), Geriatric (old age) etc.
• Food based on Medical Prescriptions:- Sugar, Blood Pressure, etc

7. • Food based on modern Health consciousness:- Low fat diet, Low calorie calculated food,high
energy food for youth and sports personalities etc.
Note: To introduce the above, chulha will have to do a strong financial planning since it involves
additional costs also. But taking into consideration chulha’s customers base they can have the
premium price for their customers and in turn their customers also will ready to take the
additional cost with ease. This is purely my perception.
Conclusion:
From the answers I have given above for the two questions concerned with the viability and
changes of new introduction in the business model of chulha tiffin service business it is clearly
evident that the proper approach, attitude and controls can lead to great success of a small
business and an entrepreneur.