Running head: BUSINESS DECISION 1
BUSINESS DECISION 2
Business Decision; Buy or Build
Student’s Name
Affiliation
Craft a brief strategy for a business concept that would directly compete with the small business you selected. Explain the rationale for the strategy in detail.
After years of eating at B-CHAMPS fast foods, an outlet in central Boston, subconscious knowledge and interest in the restaurant business has been acquired by the Mr./MRs XXX(insert student’s Name)XX. Since the late 90’s, concerns over obesity ensured public protests against poor eating habits (Schlosser, 2012). Such protest directly attacked the fast food industry and its supply chains. This was intensified by educational curriculums that broke down the effect of excess fats and unnecessary calories contained in most fast food industry products. Furthermore, a general concern for a healthy workforce also introduced an era where employers started investing in health programs for their employees (Schlosser, 2012). These included physical exercise programs, free healthcare consultation on dieting and other well being plans. Therefore, fast food joints were forced to provide healthy food options for the enlightened consumers or close business. Additionally, a healthy foods competition arose that promised consumers salads, plain fruits, vegetables and juices among other products rarely served at fast food joints. The situation was worse in Boston based on its thriving sports tourism industry (Sgan, 2009). Regular local, national and international events raised the healthy eating awareness of the residents thus ensuring declining sales in the fast food industry. Only large fast-food chains managed to cushion the original impacts. Small chains such as B-CHAMPS were hit hard by the change in consumer preference that is destined to be permanent.
The majority of fast food customers are children and young adults. Based on the minimum visits of the aged clients and adults, the projected consumer base is under-exploited. The purchasing power is majorly possessed by the adults and aged consumers. In order to attract more children and young adults, the healthy foods option is mandatory. The adults/ aged consumers will increase their visits in terms of volumes and frequency. This guarantees additional children and young adults company. Providing the healthy food option takes care of adults/ aged consumers impatience based on the lengthy food preparation in the mainstream restaurants and hotels.
The Umbrella Health Fast Center relies on engaging as many suppliers of vegetable and fruits to service the healthy foods counter. The customers will determine their preferred needs through questionnaires and feedback applications on the internet or mobile phones. Healthy f ...
1. Running head: BUSINESS DECISION
1
BUSINESS DECISION
2
Business Decision; Buy or Build
Student’s Name
Affiliation
Craft a brief strategy for a business concept that would directly
compete with the small business you selected. Explain the
rationale for the strategy in detail.
After years of eating at B-CHAMPS fast foods, an outlet in
central Boston, subconscious knowledge and interest in the
2. restaurant business has been acquired by the Mr./MRs
XXX(insert student’s Name)XX. Since the late 90’s, concerns
over obesity ensured public protests against poor eating habits
(Schlosser, 2012). Such protest directly attacked the fast food
industry and its supply chains. This was intensified by
educational curriculums that broke down the effect of excess
fats and unnecessary calories contained in most fast food
industry products. Furthermore, a general concern for a healthy
workforce also introduced an era where employers started
investing in health programs for their employees (Schlosser,
2012). These included physical exercise programs, free
healthcare consultation on dieting and other well being plans.
Therefore, fast food joints were forced to provide healthy food
options for the enlightened consumers or close business.
Additionally, a healthy foods competition arose that promised
consumers salads, plain fruits, vegetables and juices among
other products rarely served at fast food joints. The situation
was worse in Boston based on its thriving sports tourism
industry (Sgan, 2009). Regular local, national and international
events raised the healthy eating awareness of the residents thus
ensuring declining sales in the fast food industry. Only large
fast-food chains managed to cushion the original impacts. Small
chains such as B-CHAMPS were hit hard by the change in
consumer preference that is destined to be permanent.
The majority of fast food customers are children and young
adults. Based on the minimum visits of the aged clients and
adults, the projected consumer base is under-exploited. The
purchasing power is majorly possessed by the adults and aged
consumers. In order to attract more children and young adults,
the healthy foods option is mandatory. The adults/ aged
consumers will increase their visits in terms of volumes and
frequency. This guarantees additional children and young adults
company. Providing the healthy food option takes care of
adults/ aged consumers impatience based on the lengthy food
preparation in the mainstream restaurants and hotels.
The Umbrella Health Fast Center relies on engaging as
3. many suppliers of vegetable and fruits to service the healthy
foods counter. The customers will determine their preferred
needs through questionnaires and feedback applications on the
internet or mobile phones. Healthy food options provide a
challenge in terms of variety in preferences (Sloan, Legrand, &
Chen, 2013). However, a careful database of food combinations
that complement the original fast food menu should narrow
down to a standard healthy food menu. Furthermore,
supplementary menus shall be implemented based on pre-order
requirements by customers. Initially, regular customers will be
tracked so as to impalement the sample phase. After successful
sampling, UHFC will provide the offer and discount phase to
establish standard menus.
Partnership with healthy food experts will be sought to
provide UHFC with an opportunity to market its healthy food
menus at social events, sporting events and internal campaigns
that are part of our corporate social responsibilities. Based on
the influx of small healthy food vendors, UHFC should engage
them in outdoor events that will accommodate their unique
menu under our portable/ movable stores. Successful vendors
will be initiated and offered a franchising opportunity at their
convenience as long as they embrace the established menus
alongside their products/ services.
The expansion of the menu and absorption of small healthy
food vendors is a strategy to retain existing clients and attract
new clients based on changing consumer preferences. The
expansion network through establishing new outlets and
assimilating small vendors is a critical step in gradually
resisting the competition from established fast-food chains such
as MacDonald’s (Sloan, Legrand, & Chen, 2013). Since the
UHFC strategy is big yet relies on a restricted budget, new
suppliers will be acquired on consignment basis. A consignment
relationship allows UHFC to manage a wide menu through
supplies that will be paid for after sales are realized.
Determine if it would make more sense to open the new
business you describe or to purchase the existing business you
4. selected.
After a careful analysis of the fast-food industry and the
dynamic trends in consumer preferences, the appropriate
decision is to take-over B-CHAMP fast foods. The outlet is
well-managed with loyal employees and enjoys a substantial
regular customer base. However, the store has aged proprietors
who have refused to embrace recent trends in the fast food
industry. Furthermore, they have stuck to their trademark
narrow menu that misses out on the expanding population that is
highly diversified, unlike when B-CHAMP was established in
the 1970’s. Increased competition and changing consumer
preferences have seen massive declines in income. The
increasing costs of supplies and taxes cannot guarantee viability
of B-CHAMP. My brief can enjoy a massive head-start upon
acquisition of B-CHAMP fast food store based on several
advantages.
Taking over B-CHAMP eliminates over 50% of the start-up
hustles. The problem of product placement and location is
already eliminated since B-CHAMP has set a bulls-eye for the
consumers. The plans and procedures are intact as well as
successful over the years. The only hitch is the inability of the
proprietors to appreciate minor adjustments to the routines that
would enhance productivity. The loyal employees have
established a good relationship with local customers thus a
guaranteed marketing network. An existing business also
promises immediate cash-flow that will be useful when
initiating the consignment deals with suppliers. Purchasing a
business that is running can provide excellent financial cushions
for petty yet critical errands after the take-over is finalized.
Accurate financial forecasts are easy to acquire because a
historical trend can be authenticated from existing records.
There is an existing track of spending decisions and the results
which provides a reliable map for budgetary allocations. Such
choices include considerations of further financing including
loans from commercial institutions.
Discuss the most appropriate form of ownership for your new
5. business
Based on the need for fresh supplies that must be of high
quality at affordable prices, the appropriate form of ownership
is micro-franchising. In order to have a reliable healthy food
supplies requires a variety of suppliers and is seasonal in nature
(Sloan, Legrand, & Chen, 2013). This is due to a variety of
growing and harvesting seasons for different farm produce. The
limited budget for the project would benefit from selling on a
consignment basis. The choice is reasonable because the small-
time suppliers are specialized and do not currently enjoy
exposure as their established rival grocery stores. Therefore, the
suppliers will benefit from a definite bulk delivery center that
guarantees consistency in income. The Umbrella Health Fast
Center will benefit from extended credit based on the
consignment relationship with the suppliers.
Business Plan
1.0 Executive Summary
The Umbrella Health Fast Center is a casual restaurant that
seeks to establish a balance between traditional fast-food joints
and recent influx of healthy food providers. The target is
addition of grilled meats and assorted vegetables or salads, on
the contemporary fast food menu. The target population is
50,000 residents of Central Boston with forecasted annual
revenue of $250,000. This paves way for a chain of outlets in
north, east, south and west sides of Boston.
1.1 Mission
The UHFC is to become the premier provider of a mixture of
fast food and healthy choices experience. This will be realized
through reasonable prices that arise from a wide menu based on
the expansive franchising network of unique suppliers.
1.2 Objectives
· To become the leading fast food and healthy food provider in
Boston
· To open two outlets every year
6. · To offer a fun experience at affordable prices.
1.3 Success Principles
· Wide variety in menu
· Value every customer and provide unique experiences
· Invest part of profits in menu expansion and take-away/
delivery services.
2.0 Company Summary
UHFC is a dynamic enterprise that intends to capitalize on the
struggling B-CHAMP Fast food Joint in the wake of healthy
food demand by consumers.
· Company History
UHFC’s proprietor has been a loyal customer at B-CHAMP Fast
food since elementary school. He has witnessed the changes in
consumer preferences and how the joint has lost potential
customers over the years. The main weakness of B-CHAMP lies
in the rigid nature of the owners who insist on sticking to their
trade mark menu over the years. The declining sales and
expense burdens
· Company Ownership
The business is a sole proprietorship that intends to set
standards that will be adopted for setting up the chain of outlets
within Boston. However, business expansion outside Boston
will rely on the Franchising model.
3.0 Services
· Takeaway
· In-house
· Outside catering
4.0 Market Analysis Summary
The market is defined through resident individual and families,
students from abroad and tourists (especially sports tourists).
The trend in family outings as well as dietary needs of an
athletic community that has woken in recent times has put
pressure on fast-food businesses.
5.0 Strategy and Implementation Summary
The initial outlet will be the B-CHAMP store where the menu
diversification and supplier engagement will take place. We rely
7. on the B-CHAMP name to take advantage of its loyal customers
then attract new ones after a complete transition in the extended
menu. Temporary structures, trailers and tents will be used to
follow sporting events and market the UHFC menu. Expansion
plans will highly depend on accurate feedback from travelling
customers.
6.0 Web Plan Summary
Social media is the primary advertising media but we intend to
introduce an online booking/ ordering application that will work
with mobile phone applications as well. This intends to reduce
queue times at peak hours as well as ensure efficiency take-
away deliveries.
7.0 Management Summary
The proprietor intends to use the inaugural outlet as a quality
assurance center that will provide managers for all the other
outlets. The staff selection is not only for running daily
operations but must embrace the UHFC goal and have the desire
to lead one of our planned chains of outlets and franchises. All
employees will adopt autonomy of duties but comply with the
overall targets of the outlet. Specialization is the key to high
quality delivery.
8.0 Financial Plan
In maintaining an exciting and spontaneous experience, a
flexible budget is adopted that will rely on supplies under
consignment contracts. However, the rent and utility bills will
be provided for in advance.
8. References
Schlosser, E. (2012). Fast food nation: the dark side of the all-
American meal. Boston: Mariner Books/Houghton Mifflin
Harcourt.
Sgan, M. (2009). The Boston Book of Sports --: From Puritans
to Professionals. New York: Xlibris Corporation.
Sloan, P., Legrand, W. & Chen, J. (2013). Sustainability in the
Hospitality Industry: Principles of Sustainable Operations.
London: Routledge.
Assignment: Expanding Your Business
Criteria
UnacceptableBelow 60% F
Meets Minimum Expectations60-69% D
Fair70-79% C
Proficient80-89% B
Exemplary90-100% A
1. Outline a financial plan for your small business.
Weight: 20%
Did not submit or incompletely outlined a financial plan for
your small business.
Insufficiently outlined a financial plan for your small business.
Partially outlined a financial plan for your small business.
Satisfactorily outlined a financial plan for your small business.
Thoroughly outlined a financial plan for your small business.
2. Develop a guerrilla marketing strategy for your small
business.
Weight: 25%
Did not submit or incompletely developed a guerrilla marketing
9. strategy for your small business.
Insufficiently developed a guerrilla marketing strategy for your
small business.
Partially developed a guerrilla marketing strategy for your small
business.
Satisfactorily developed a guerrilla marketing strategy for your
small business.
Thoroughly developed a guerrilla marketing strategy for your
small business.
3. Discuss the most appropriate location for a second store (an
actual street address). Explain your reasoning.
Weight: 20%
Did not submit or incompletely discussed the most appropriate
location for a second store (an actual street address). Did not
explain your reasoning.
Insufficiently discussed the most appropriate location for a
second store (an actual street address). Insufficiently explained
your reasoning.
Partially discussed the most appropriate location for a second
store (an actual street address). Partially explained your
reasoning.
Satisfactorily discussed the most appropriate location for a
second store (an actual street address). Satisfactorily explained
your reasoning.
Thoroughly discussed the most appropriate location for a second
store (an actual street address). Thoroughly explained your
reasoning.
4. Outline a plan for securing sources of debt financing for your
second store.
Weight: 20%
Did not submit or incompletely outlined a plan for securing
sources of debt financing for your second store.
Insufficiently outlined a plan for securing sources of debt
financing for your second store.
Partially outlined a plan for securing sources of debt financing
for your second store.
10. Satisfactorily outlined a plan for securing sources of debt
financing for your second store.
Thoroughly outlined a plan for securing sources of debt
financing for your second store.
5. Two (2) references outside the textbook
Weight: 5%
No references provided
Does not meet the required number of references; all references
poor quality choices.
Does not meet the required number of references; some
references poor quality choices.
Meets number of required references; all references high quality
choices.
Exceeds number of required references; all references high
quality choices.
6. Clarity, writing mechanics, and formatting requirements.
Weight: 10%
More than 8 errors present
7-8 errors present
5-6 errors present
3-4 errors present
0-2 errors present