Entrepreneurship and small bossiness

Assignment-1

Learning Outcome:

1. Demonstrate a solid understanding of the potential of entrepreneur in today's competitive business world. (Lo 1.2)

2. Demonstrate ability to think independently and systematically on developing a viable business model (Lo 1.3 & 3.7).

3. Understand the place of small business in history and explore the strengths and weaknesses of small business. (Lo 1.1).

Assignment Workload:

This assignment is an individual assignment.

Start-up Business Plan

Imagine you started a new business as an entrepreneur in Saudi Arabia.

Please, think and share information on the following items:

1. Owners, capital structure and company profile

a. Your Business Name, Address, E‐Mail

b.  Form of ownership: What is the legal structure? Sole proprietor, Partnership, Corporation…..

C. Investment capital

2. Company Business Description (300 – 400 words)

A. Scope and type of business

What business will you be in? What will you do? What market segment will you choose?

• Business idea: what is your big idea? Is it a product or a service? What makes your idea different?

• Mission Statement

• Company’s short-term and long-term goals and objectives.

• Target market and demographics: Who will your customers be? Where do they live? What is your target market passionate about?

B. Business Philosophy

What is important to you in your business?

• Describe your Industry: Is it a growth industry? What long term or short-term changes do you foresee in the industry? How will your company take advantage of it?

• Describe your most important company strengths and core competencies: What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?

• Risk Assessment: Evaluate the strengths and weaknesses of your business using SWOT.

• Scale of the business and its growth anticipation: what is the growth rate per year for five years? What do your 5-year financials look like? What is your path to profitability?

•Who is your competition and how do you beat them?

• Start-up costs: what costs do you expect to make the business run for the next five years?

3. Products and Services

a. Describe in detail your products or services (Technical specifications).

b. Size of business: how many employees? How many offices and retail facilities?

c. What factors will give you competitive advantages or disadvantages? Examples, include level of quality or unique or proprietary features.

ANSWER:

Start-up Business Plan: Amoco Royal Restaurant

Owners:

Business Name: Amoco Royal Restaurant

Address:

E-Mail: [email protected]

General Business Description

Amoco Royal Restaurant is a startup company that will be located in Medina. The restaurant will provide both local and international delicacies to cater to different types of customers it is expecting to receive. Apart from providing sit-in services for its customers, the restaurant is also interested in catering for those who want to order online. For this reason, it will set up an online platform to ensure all potential customers can access its services.

Products and Services

Their food will consist of soft drinks, beverages, pastries, beef, fish, chicken, and cereals. In addition to soft drinks and beverages, the wine will be served with the main course as ordered by the customers. Its main objective, however, is to concentrate on the provision of delicious local and international dishes to embrace all types of cultures and customers.

Business Mission

The company has provided its business statement to show various stakeholders the business's directions to achieve its goals and objectives. A business statement is more like a company motto. Its business statement states, "Excellent Service for all Customers."

Business Vision

A business vision is the dream of the owner of the company. It shows the level of success the company wishes to achieve in the coming years. Amoco Royal Restaurant's business vision is "The Restaurant of Choice." This vision statement is essential to the business as it encourages it to provide excellent service so customers can choose at all times.

Business Objective

The objectives of Amoco Royal Restaurant include,

To cater to all customers that is interested in the products and services.

To create and deliver customer value through quality products and services

To reduce unnecessary costs by adopting new business techniques

2. Important Aspects of the Business

The restaurant business is all about customer experience and service. The business wants to provide unique and memorable experiences for its customers. For this reason, it will ensure that it has qualified staff who can prepare quality food and satisfy customers through service (Gadelrab & Ekiz, 2019). The company's passion for unique customer service and experience is influenced by its need to attract and retain more loyal customers.

Target Customer Demographics

The company's target customers are both local and international. Local customers are a significant target as they comprise different groups. Most of them are interested in local dishes that the restaurant intends to provide. Amoco Royal Restaurant will provide tables for families, individuals, and even groups which visit their locations. On the other hand, international customers are a minor group and, at the same time, seasonal since they come as tourists of expatriates. It may be a challenge, but the company is up to ensure that it can provide all the needs of all its customers in the best way possible. It means that the primary customers that the company targets are local consumers.

Description of Restaurant

Industry Restaurant and food industry are among the fastest-growing sectors in Saudi Arabia (Alturki et al., 2018). It is attributed to the fact that more and more people are interested in accessing quality food for their daily consumption. Furthermore, many customers are interested in tasting new dishes and having an exceptional experience while at them. The fact that the locals are becoming interested in international dishes provides restaurants in the country with an opportunity to provide something new to meet their demands. On the other hand, competition is very high since many companies are interested in the growing market

Long term and Short term changes

The restaurant industry is a vibrant sector in Saudi Arabia. It is attributed to the fact that the country's economic growth can support and accommodate these changes. The industry is expected to experience various changes, especially in the use of digital marketing for advertisement. Millennial are all about the internet. To reach, most restaurants in the country are applying digital marketing.

Additionally, restaurants will fully embrace online business transactions as most of them have established platforms where customers can order food online. Competition is expected to continue increasing as many players are looking to enter the industry (Alturki et al., 2018). Since Saudi Arabia is a region that keeps receiving visitors daily, most restaurants are looking to incorporate their needs.

Competitive Strengths

The company has various strengths that will enable it to succeed in the industry. First of all, it has competent staff that is very experienced in the industry. Secondly, the restaurant manager has a background in the industry as he has worked in others before. The marketing team is also efficient and is willing to take the company to the next level. Thirdly, the company has all the assets that it needs to ensure smooth operations. The company, however, has several opportunities in the industry as it is looking to diversify its products and services to cater to markets that have not been exploited before.

3. Products and Services

Description of Products and Services

Amoco Royal Restaurant intends to be in the market by providing authentic products and services to its customers. The restaurant will provide a variety of dishes that will remind consumers of who they are and meet their preferences. Apart from providing local and foreign dishes, the restaurant is interested in different assorting dishes that will make it easier for customers to have a new experience. Since the restaurant industry in Saudi Arabia is booming, Amoco Royal Restaurant intends to provide products that will statement the market. The products will consider different types of consumers who may be interested.

Competitive Advantage and Disadvantage

The first strength the company will take advantage of is its ability to provide quality products. The restaurant is passionate about its dishes as well as customer service. The quality of its dishes is attributed to professional chefs dedicated to providing the best food in the region (Alturki et al., 2018). Another critical advantage that will enable the company to thrive in the industry is its management team. The management team hired in the company has a solid background in the restaurant industry that will be applied in the formation and implementation of the strategy.

Important features of the Product

The food that Amoco Royal Restaurant will provide to customers will quench their hunger and thirst and provide value for their money in terms of price and taste. Additionally, the company is invested in providing dishes that are satisfactory to consumers and healthy. Most main dishes that the company will serve will have fruits and vegetables on the side as a complement to meet the health requirements of a healthy meal. Other products such as tea will have added spices such as ginger as preferred by the customers.

Competition

Some of the companies that will pose challenges to the new business are Al Khayam, Bellevue, Piatto, Al Nakheel, Toki, and Kayal. When it comes to substitutes, fast food restaurants providing foods such as burgers, fries, and pizza are likely to give the company stiff competition. The change of attitude towards fast foods in Saudi Arabia is becoming a threat to traditional restaurants like Amoco Royal Restaurant. However, the company is strategizing on how to handle this stiff competition by providing quality and affordable prices (Gadelrab & Ekiz, 2019).

References

Alturki, H. A., Brookes, D. S., & Davies, P. S. (2018). Comparative evidence of the consumption from fast-food restaurants between normal-weight and obese Saudi schoolchildren. Public health nutrition, 21(12), 2280-2290. https://www.cambridge.org/core/journals/public-health-nutrition/article/comparative-evidence-of-the-consumption-from-fastfood-restaurants-between-normalweight-and-obese-saudi-schoolchildren/19886D17C65203CE7658E6A3D3710716

Gadelrab, R., & Ekiz, E. (2019). An investigation of key success factors for restaurant operations in Saudi Arabia. Journal of Tourism, Heritage & Services Marketing, 5(2), 27-35. https://www.ssoar.info/ssoar/handle/document/66333