Business Venture of TastyKingdom Samples †MyAssignmenthelp.com

Question: Discuss about the Business Venture of TastyKingdom. Answer: Introduction Entrepreneurship can be defined as a willingness and potential to create, manage and organize owned business venture along with risks in profit and revenue generation. It is an activity or process of establishing a business, in which entrepreneur takes all the financial risks to gain the profits. When an entrepreneur plans to introduce a new business venture, he/she needs to focus on some specific areas, which will be included in the business model and plan of this new venture. The new business venture that is taken into consideration here is TastyKingdom in Australia. This new business venture will offer foods and beverages products to its potential customers. The major focus of this business is to provide fresh and healthy food products to In todays competitive business environment, it is very difficult to make difference between fast food outlets. So, the entrepreneurs need think innovative and different from other outlets and its competitors. This report includes all the important business aspects for the business of TastyKingdom. A business model canvas model is created for the company and its products, which includes customers segment, value proposition, channels, customer relationships, key resources and activities, key partners, revenue structure, cost structure and minimum viable product. Furthermore, a feasibility analysis is conducted for this new business venture in Australia. Business Venture description TastyKingdom is a new business venture that is locally owned food outlet, which will be located in Geelong city in Australia. This venture will be established with the aim to offer a combination of tasty and tremendous food at affordable pricing with attractive packaging and environment. TastyKingdom will be a reply to the increasing demand of fresh and healthy fast food, which can be consumed by the people, who love to eat outside or in restaurants. The outlet will be established in the most crowded shopping mall in the city (Deakins and Freel, 2009). For promoting this new food outlet, the company will make many efforts to promote it among people. It will create a website for its services, where the people may know about the restaurant and its products. The major products of the company include healthy breakfast meal, fast food, lunch and dinner for people. Business Model Canvas Business model canvas is a business model through which an organization or a business venture generates profits and revenues. It is a tool that describes how an organization creates, offers and captures the value by establishing an effective communication between different components of business venture (Drucker, 2014). This is the best fit business model for small business venture. TastyKingdom is offering fresh and healthy food products to Australian population. It will provide a combination of tremendous food at affordable pricing with attractive packaging and environment. The following section of this report includes the business model canvas for an Australia based new business venture, i.e. TastyKingdom. Key Partners Domestic Firms Franchises Suppliers Manufacturers Key Activities Preparing and serving quality food Marketing and promotional activities Franchise options, like; color schemes, graphics, textures etc. Value Proposition Tasty food with best quality Fresh and healthy ingredients Attractive ambience and environment Focus on customers needs and preferences Free home delivery and fining dining Customer Relationships Personal contact with customers Serving innovative recipes Online services Services through mobile apps Fast and customer-friendly services at outlet Direct sales Customer Segments Australian population Youngsters Families Women All age group All Income level Key Resources Hotel staff: cook, servers and waiters, cleaning staff, sales people, administrative staff Brand and patents Store buildings, kitchens, utensils Channels Website of TastyKingdom Social media networking sites Advertisements Referrals E-mail marketing Cost Structure Website developers Marketing costs Logistics and supply chain Employee salaries Taxes Maintenance charges Production and manufacturing costs Building rent Minimum Viable product MVP with less risk Food truck Small catering venture Create the customer for food outlet Revenue Streams Web-based sales In-store sales Franchises Credit/debit cards Payment in cash Advertising Customer Segments For building an operational business model, a company needs to identify the customers, which it will make efforts to serve by its products. There are many sets of customers, which can be selected on the basis of different attributes and needs. For TastyKingdom, the major customer segments youngsters, families, business people and elderly segment. The target market for this business venture is wide, as it includes the people from all age groups and income levels. The venture is targeting the Australian people, who love to intake food in the restaurants (Kim, Shin Min, 2016). TastyKingdom will attract to young people to bring their family and friends in its innovative and nicely environment to have fresh and healthy food. Furthermore, it intends to cater women segment as they can have the food, when they are doing shopping in mall. Value Proposition Value proposition of a company includes all the products and services, which are offered by that company to fulfill the needs and requirements of customers. This value proposition of the company differs itself from competitor organizations. There are some elements, through which a company provides value to its customers, like; performance, uniqueness, brand, cost reduction, usability, prices etc. There may be two types of value proposition, quantitative and qualitative. As a food business venture, TastyKingdom will be popular for its value proposition. The venture will offer tasty food with the constant quality and fresh and healthy ingredients. In addition, it will focus on the needs of customers, like; they will consider their needs, preferences and spices (Kotlar Armstrong, 2012). The environment and ambience of restaurant will be attractive, which will entice more and more foodies. In addition, there are some other aspects, which create value for customers, like; customer-friend ly services, free parking, personalized and attentive service, transparency in preparation of food, free home delivery and fine dining. Customer Relationships Customer relationship is an important aspect of business model canvas that indicates the degree of relationships with its customers. Furthermore, it includes how the company gets and increases its customer base. As TastyKingdom is a new joint venture in Australia, so it needs to make additional efforts to get customers. It will set up personal contact with its customers by sending mails and messages. In addition, this venture will serve innovative recipes, like; smart menus, better food and beverages and low calorie foods (Lee, Hallak and Sardeshmukh, 2016). To develop better relationships, TastyKingdom will provide online services, services through mobile apps, direct sales and quick services at outlet. Channels Channels are the modes by which a company can deliver its value proposition to its potential customers. Through these channels, an organization sells its products and services to their customers (Lopez, et al, 2017). At TastyKingdom, the services will be promoted to the customers by using social media networking sites, Facebook, Twitter, Instagram etc. The people will be able to order the products from its website and app of TastyKingdom. In addition, it will use other channels, like; advertisements, referrals, flyers, e-mail marketing etc. Key Activities Key activities of an organization are the activities, which are practiced in implementing the value proposition of company. Key activities at TastyKingdom include preparing quality food for Australian food lovers and serve according to the taste and preferences of their customers. Apart from these activities, the venture will be actively engaged in marketing and promotion activities (Majid, Zahari and Yusoff, 2016). It will offer great services to its customers. After establishing its business in Australia, TastyKingdom will look for the alternatives for franchises, like; color schemes, layouts, textures and graphics. Key Resources Key resources are the resources, which are essential to develop value for its potential customers. These resources are the assets of firm, which are required to assist and maintain the business. There are different types of resources, like; financial, human, intellectual and physical resources (McKeever, 2016). At TastyKingdom, human resources include cooks, servers and waiters, cleaning staff, sales people, administrative staff and retail staff. Other resources include restaurant buildings, kitchens, stores, utensils etc. Furthermore, intangible resources of TastyKingdom brand, patent etc. Key Partners For optimization and reduction of risks of business model, company encourages supplier and buyer relationships, so that they can emphasize on their major operations. At TastyKingdom, there will be different strategic partners, with whom this new venture will develop partnerships in the future (Muhtaroglu, Demir, Obali and Girgin, 2013). The major strategic partners of TastyKingdom will be other domestic firms, suppliers, franchises, manufacturers etc. The business model of the company will be based on suppliers and franchises. Revenue Structure Revenue streams are the ways, by which an organization makes revenues and income from different customer segments. There are different ways to generate revenue stream, like; sale of assets, licensing fees, advertising, subscription fees, brokerage fees etc. At TastyKingdom, the revenues will be generated store sales, web based sales, its franchises etc. The company is targeting a large segment, so that revenue generation will better than other businesses. At store, the people will be able to pay in cash and credit and debit cards (Osterwalder and Pigneur, 2010). Cost Structure Cost structure describes the monetary concerns while running under diverse business models. Cost structure includes raw materials and marketing costs, salaries of employees, marketing and promotional costs, website developers, logistics and supply chain, production and manufacturing costs, taxes, maintenance charges, building rent etc. It consists of different costs and expenditures, which are borne by business venture. In addition, the company can generate the revenues by charging the fees for advertising. Minimum Viable Product (MVP) Minimum viable product is the products and services of an organization with just enough specifications to fulfill the needs of early customers and give the feedback for developing products in the future. MVP of an organization indicates that product is saleable and the term viable shows that firm can sell it (Percy, 2014). Before making a bog investment, TastyKingdom will create a MVP with less risk. The venture will test by a food truck or a small venture, so that it can come to know that products are saleable and viable. It will assist the organization in creating the customers. Feasibility analysis Feasibility analysis is a vital tool for evaluating the chances of success and risks, which are linked with the introduction of new business venture. It shows an evaluation of the practicality of new system or project. There are different types of analyses, which are used to assess the feasibility of a project, like; market, technical, financial, human feasibility etc. This analysis can assist an entrepreneur to create an effective decision about success opportunities of new business venture. Feasibility analysis for this new venture, i.e. TastyKingdom is stated below; Market feasibility A market analysis is the essential for the success of a new business venture. Under this feasibility analysis, TastyKingdom will consider market trends, demographic characteristics, like; income level and age of people. As the company is preparing food according to all income levels and age groups, so it will focus on all families. First, the company will make efforts to know that how many families and people reside in this location. It is a restaurant business, so college students and single people will support the venture as they like to eat in restaurant and outside of their house. In addition, the venture needs to know about tastes, preferences and dining habits of people in the city. Before establishing the venture, it will develop MVP to know the response of public towards its products (Popov and Roosenboom, 2013). In this process, the website of Department of Commerce Census Bureau can assist the organization in beginning its marketing research. Technical feasibility Technical feasibility is done on the basis of an outlining that includes system needs to determine whether the organization has technical expertise to manage completing of any project. Technical feasibility is an important aspect, which evaluates how a company will deliver or offer products and services to its potential customers. TastyKingdom will develop partnership with different suppliers, who will supply required raw materials, like; vegetables, breads, milk etc. Furthermore, it will develop an effective, systematic and processed production and manufacturing system, through which it will deliver the desired products to customers (Scarborough, 2015). There will be a well-executed logistic and supply chain system, which will assist the organization storing and delivering the products to customers. In this context, TastyKingdom will analyze the technological requirements, like; data sources, promotional techniques, advanced technologies used for restaurant business, software etc. I n this feasibility analysis, the venture will analyze the quality and availability of these sources for business operations. Human feasibility In hotel and hospitality industry, human resource feasibility plays an important role. TastyKingdom is going to start a restaurant business, so it needs to analyze the human resources for this new business venture. The entrepreneur at TastyKingdom will take a significant look at that he has skilled and experienced staff to develop a venture. In human feasibility analysis, the organization will ensure that staff is working for providing higher level of satisfaction to customers. If the venture will hire less experienced and educated employees, then it will conduct a training program to train and motivate them (Shabbir and Mirzaeian, 2016). Under this process, themanagement will ensure that staff will be trained to provide customer-friendly services in the restaurant, as it is essential to retain the customers. All the tasks and responsibilities will be allocated according to their expertise and experience, so that business processes can be run successfully. The entrepreneur will under stand and implement the system, so that kitchen and cooking operations can run efficiently. It is not necessary that the entrepreneur will work as a manager for this restaurant. The venture will hire a manager, who has a sound record in the same industry. Thus, by conducting human resource feasibility, the venture will analyze and evaluate the capabilities ofmanagement (Song, Son and Choi, 2015). Financial feasibility Financial feasibility can be analyzed by looking at different information of the company, like; cost of project, forecasted profitability and cash flow, investment amount by the entrepreneur, capital structure etc. In introduction of TastyKingdom, themanagement needs to consider all the costs and expenses, which will be incurred in this start-up (Walker, 2016). Once it will be decided that what type of food it wants to offer, then it will break down the costs and prices of each food item in its restaurant menu. It will determine its raw material suppliers and their pricing policies. It will install different software, like; ERP and CRM to calculate the forecasted cost of food. In the beginning, the company will have reduced number of items in menu to keep the costs of food down. Under this process, TastyKingdom will identify all projected costs and expenses, which are associated with the production and delivery of food products to end consumers (West, Ford Ibrahim, 2015). Following table includes all the start-up costs and expenses, which will be incurred in introducing TastyKingdom in Australia; Start-up Requirements Expenses Amount Fixtures and Kitchen Interior and furniture Legal expenses Rent Contingencies Total Start-up Expenses $20000 $15000 $2000 $13000 $4000 $54000 Start-up Assets Cash Long term Assets Current Assets $40000 $0 $0 Total Start-up Requirements $94000 Personnel Plan Personnel 1st Year 2nd Year Managers Cook Cashiers Waiters $0 $20000 $30000 $18000 $40000 $40000 $45000 $25000 Total Payroll $68000 $140000 Thus, the report includes all the aspects, which are required to be considered in introducing a new business venture in food industry, i.e. TastyKingdom. The business model canvas of new venture indicates all the essential factors of the organization. Furthermore, a feasibility analysis of this new venture is conducted by considering different resources. References Deakins, D. and Freel, M.S., 2009.Entrepreneurship and small firms. 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