Replay Sports Bar - Mission, Vision & Culture - Essay Example

?Table of Contents Table of Contents 1.0. EXECUTIVE SUMMARY 3 2.0.mission, vision & culture 5 2 Mission ment 5 2.2.Vision ment 5 2.3.Culture: 5 3.0. company description 5 4.0.Opportunity Analysis & Research 6 4.1. Industry Analysis 7 4.2. Environmental Analysis 8 4.2.1.SWOT Analysis 8 4.2.2.External/environmental factors are likely to impact the business 8 4.2.3.Plans for expansion 9 4.3. Competitive Analysis 10 4.3.1.Strategy for outperforming the competition 10 5.0. marketing strategy & plan 11 5.1. Products And Services 11 5.2. Pricing 11 5.3. Promotions 11 5.4. Place 12 6.0.Management & OPERATIONS 12 6.1. Management Team 12 6.2. Research and Development 13 6.3. Facilities 13 6.4. Inventory, Production, & Quality Assurance 13 7.0. Financial Analysis & Projections 14 7.1. Sources & Uses of Capital 14 7.2. Cash Flow Projections 14 7.3. Balance Sheet Projects 15 7.4. Income Statement Projects 16 7.7. Risks & Assumptions 17 8.0. Funding request & exit strategy 18 8.1. Amount & Type of Funds Requested 18 8.2. Exit Plan 18 8.3. Milestones 18 9.0. BIBLIOGRAPHY 20 1.0. EXECUTIVE SUMMARY Replay Sports Bar is a new start-up business with the aim to become the leading bar that offers an environment where sports lovers can enjoy watching games along with delicious food. The company will be first opening its branch in London and then it has planned to expand its business in other parts of United Kingdom and then to other European countries. Replay Sports Bar will be offering private and public lounges where people can enjoy the game. Private lounges can be booked by people for a particular time so that they can enjoy any match with their friends and family. The idea of this business is to make sports more thrilling and exciting to watch with the help of advanced technology like LCD and Plasma Screens, Home theatre systems etc. In addition to this, Replay Sports Bar will be building relationships with the client so that they become long term customers of the company. Analysts predict that the industry would grow as the economy recovers from recession. The sales of the industry have been highly influenced because of recession and people have been highly conscious during recession about where they should spent money and this reduced the overall sales of the industry. Though, as the economy recovers, the sales of the industry would grow. Although there are competitors operating in the industry but they do not offer such exciting environment and atmosphere as the management of Replay Sports Bar will be offering and thus it will be the main point to attract customers. Also competitors do not focus on offering personalised services and building relationships with the client, therefore it will be another additional advantage to Replay Sports Bar. Replay Sports Bar will also focus on maintaining quality of food and offering foods at a quick time so that people do not have to wait a long to get their meal. According to projections, Replay Sports Bar expects to make profits from the first year. Financial statements show that Replay Sports Bar would make a profit of ?3,500 in the first year which is expected to increase with the passage of time. It has been estimated that the sales of Replay Sports Bar would increase in 2013 and also it will also expand in some other city as well. Profit margin of Replay Sports Bar is expected to be 7%, 13% and 18% in 2012, 2013 and 2014 respectively. 2.0. mission, vision & culture 2.1. Mission Statement “To be the leading bar that offers exceptional environment for sport lovers to watch every single match at Replay Sports Bar” 2.2. Vision Statement “To become the leader in the Sports Bar Industry of UK” 2.3. Culture: Replay Sports Bar will be having a friendly culture and environment where employees will be trained to greet customers and ensure that customers are highly satisfied. The environment created at the Replay Sports Bar will make even non-sports lover enjoy the sports and enjoy the thrill and excitement of watching variety of sports. The company will also encourage people to play sports so that it helps the country in appreciating people to come forward and represent their nation in different sports. 3.0. company description Replay Sports Bar is a new start up business which will be opening a bar offering different variety of meals for customers visiting the bar while they can enjoy watching sports. This bar will not be just like any other sports bar in the UK market, but Replay Sports Bar will be offering a lot to the customers. Replay Sports Bar will be having an exceptional environment where people will be able to enjoy different sports and have meal at the same time. Replay Sports Bar will be preparing and offering different meals at the same time besides providing them an extraordinary environment. This bar will be exclusively covering different events related to sports in order to ignite the fire in the belly of sports lovers and at the same time attract more people to come and watch different sports at Replay Sports Bar. Replay Sports Bar will be a sole proprietor as I will be investing ?15,000 which will be 50% of the total investment required. The company will be 50% owned and the rest of the investment will be granted by the government in a support program to encourage young graduates to start their businesses. However, initially in the first year only ?17,000 will be required and the rest can be accumulated with earnings. Government investment would be ?15,000 and the rest of the investment will be made by me. The company will be registered in London, UK. However, it will be registered and expanding its business to other cities like Birmingham. The first bar of Replay Sports Bar will be near Biddestone road, London as this is one of the important places in the city and customers can easily access the bar. 4.0. Opportunity Analysis & Research Primary and secondary research has been conducted in order to analyse the demand in the country and particularly in London and surveys have been conducted in order to know exactly what kind of offerings will attract people and what they want sports bar to have. All these recommendations and suggestions from people have been considered and Replay Sports Bar will ensure that the demand and needs of customers are fulfilled. In addition to this, the secondary research conducted has shown considerable growth for such a business not only in UK but in other parts of the world as well. So, this would mean that Replay Sports Bar will have several opportunities to expand. The target market of Replay Sports Bar would be young people along with old people. People from teenage starts watching and loving sports and they all want to watch different games and events with their friends, families and colleagues and thus, Replay Sports Bar will try to fulfil the needs of such people in providing them the atmosphere and environment where they can thoroughly enjoy their sports and games. Replay Sports Bar will focus on people who love sports and not only the bar will be encouraging sports lovers but it will be even non-sports lovers to come and enjoy how exciting sports can be and at the same time enjoy the delicious meal offered at Replay Sports Bar. 4.1. Industry Analysis The industry is a subset of bar industry however there has been an increasing trend of sports bar being introduced in United Kingdom. Replay Sports Bar will be operating in the bar industry. The industry is expected to grow as there has been a little decline in the industry after the recession as people have become a bit more concerned and more cautious about where they should be spending money. Therefore analysts predict that the industry would grow as it was previously during the pre-recession periods. Gradually, the economic condition of United Kingdom has been showing improvements, therefore with the passage of time the industry would grow even further. Currently the total sales of bars and nightclubs in USA equal $22 billion. As the industry is expected to grow, therefore with more people visiting such bars the number of bars in the country might increase. The major customers for the industry are the general public which includes people from teenage who are currently studying to old age people who have been retired and enjoying the money they have accumulated in their lives. Students or teenagers come and visit such bars with their friends and enjoy the food along with the sports so is the case with people of other age group. People in the middle age group visits sports bar to enjoy food and sports but at the same time they visit to have some time off from their busy routine. The frequency of visitors varies as more traffic visits bars on weekends in comparison to weekdays. However, on different sports days and holidays a higher traffic is observed. 4.2. Environmental Analysis 4.2.1. SWOT Analysis Strengths Exciting envrionemnt and atmosphere would be provided A lot of concentration will be given to quality and taste of food as well. Friendly environment will be kept and focus will be on building relationship. Weaknesses New startup business Young graudate running a new buisness and does not have sufficient experience Limited Investment Opportunities Industry is expected to grow as the economy recovers from recession Increasing trend of people towards such sports bar and this has lead to an increase in the demand of such sports bar. People are becoming highly involved in sports Threats The industry is sensitive to recession and if the economy takes a lot more time to recover from recession, then it will affect the industry Increasing competition will be a major threat for the company. Advancement in technology might affect this business as people could watch sports and games at their homes and different websites could also offer them highlights of different matches. 4.2.2. External/environmental factors are likely to impact the business There would be several external and environmental factors making an impact on Replay Sports Bar. These factors are as follows: LEGAL FACTORS Replay Sports Bar has to ensure that the food offered by the company is according to the Health and Safety guidelines prevailing in the UK industry ECONOMIC FACTORS Recession has made an impact on the industry and it is important that the economy recovers quickly from recession so that the industry could grow as recession has shrunk the income of people which has reduced their turnover to restaurants and bars. SOCIAL FACTORS Love of Sports is considered as an important social factor that will be making an impact on the sales of Replay Sports Bar. TECHNOLOGICAL FACTORS With advancements in technology, people can watch variety of channels including sports and highlights of different matches at their home and this advancement will impact the sales of the Replay Sports Bar as many people would prefer watching sports, games and even highlights at their homes. This is the reason why Replay Sports Bar needs to market it as a sports bar that offers quality food with exceptional environment to enjoy sports. 4.2.3. Plans for expansion The demand of such bars is also present in other parts of the country and Replay Sports Bar would first enter and make a name in the UK market and then expand to other parts of UK before expanding its services to other European countries. 4.3. Competitive Analysis There are few bars offering similar kind of services and bars that offer both the sports environment as well as quality food will be considered as direct competitors and bars or pubs that will be offering only meal will be considered as indirect competitors. Replay Sports Bar will be having an edge over these bars as they will focus on ensuring that they offer quality food but with exceptional environment. A high attention will be paid to maintain a thrilling sports environment. Also employees will be trained to maintain a friendly environment and build relationships with the customers visiting the bar. The following table compares Replay Sports Bar with some of the competing firms     Replay Sports Bar Cafe Sports England Champs The Famous Three Kings Wt. Rating Wtd. Rating Wtd. Rating Wtd. Rating Wtd. Rating Rating Rating Rating Quality 0.15 8 1.2 8 1.2 6 0.9 5 0.75 Price 0.2 9 1.8 7 1.4 7 1.4 7 1.4 Location 0.1 8 0.8 9 0.9 9 0.9 8 0.8 Selection 0.05 7 0.35 9 0.45 8 0.4 6 0.3 Service 0.2 9 1.8 8 1.6 8 1.6 7 1.4 Speed or Turnaround 0.05 8 0.4 7 0.35 9 0.45 8 0.4 Specialisation 0.1 7 0.7 8 0.8 9 0.9 9 0.9 Personalisation 0.15 9 1.35 6 0.9 6 0.9 8 1.2 Total 1 8.4 7.6 7.45 7.15 4.3.1. Strategy for outperforming the competition The above table shows that Replay Sports Bar will outperform others with quality service, exceptional price and by building relationships with the clients. Also a great emphasise will be given on personalisation and building relationships as this is important in building long term customers. 5.0. marketing strategy & plan 5.1. Products And Services The main products and services offered by the company can be categories into following two broad categories: a. Food or meal b. Facilities to watch variety of sports Replay Sports Bar will be offering quality food with an environment where people can enjoy watching games. 5.2. Pricing Replay Sports Bar will be keeping a lower price in comparison to the prices charged by other Sports Bars and in this way it will be able to attract more traffic and more customers to the bar. 5.3. Promotions Replay Sports Bar will be promoting its services throughout the country as it will be focusing initially on creating awareness and letting people about the bar in London. Also Replay Sports Bar will be offering different discounts on important sports days and events in order to attract more traffic to the bar. The company will be promoting the offerings through direct mail, flyers, brochures, billboards, banner ads, online marketing including blogging, viral marketing, social media marketing, email marketing, search engine optimisation etc. 5.4. Place Biddestone Road, London is the place decided to open the first bar of Replay Sports Bar. This is an important road and will be helpful in attracting traffic. However the disadvantage of this location is that it would be a bit costly. The location of the bar can be seen in the following image. 6.0. Management & OPERATIONS 6.1. Management Team Organisational structure of the company will be as follows: 6.2. Research and Development In order to improve the satisfaction level of customers, the company will be continuously doing research to know about the new happenings in the industry as this will help in ensuring that the company keeps it pace with the industry and does not lack behind. Also the company will be encouraging employees to be innovative in their approach and share their feedback and suggestions to improve customer satisfaction level. 6.3. Facilities Bar will be providing facilities to sport lovers to watch variety of sports. There would be separate sections and lounges designed in the bar for people to enjoy their sports. Also special rooms can be booked by people to enjoy their game with their closed ones. 6.4. Inventory, Production, & Quality Assurance Operations manager would be responsible for the overall operations of the company and he will also be responsible to evaluate the performance of the employees and quality of food and services offered. 7.0. Financial Analysis & Projections 7.1. Sources & Uses of Capital Half of the investment would be raised by the investor, me and the remaining investment would be raised by the government. The main use of funds will be in the first two years and summary of important uses of capital is as follows. Investment Year 1 Year 2 COMPUTERS 3,000 3000 Kitchen equipments 4,500 4,500 WEBSITE 1,000 - FURNITURE 6,000 6,000 Promotional expense 2,500 2,500 TOTAL 17,000 16,000 7.2. Cash Flow Projections 2012 2013 2014 Receipts Cash From Investor 17000 13000 Cash sales 50,000 110,000 132,000 Total Receipts 67,000 123,000 132,000 Payments Rent 5,000 10,500 11,550 Salaries and wages 10,000 21,000 23,100 Marketing/promotion 2500 2500 2,500 Kitchen 4500 4500 Computers 3,000 3,000 - Utilities expenses 4,000 8,400 9,240 Furniture 6,000 6,000 Website formation 1,000 Maintainance (website) 500 550 605 Total Payments 36,500 56,450 46,995 Cashflow Surplus/Deficit (-) 30,500 66,550 85,005 Opening Cash Balance 30,500 97,050 Closing Cash Balance 30,500 97,050 182,055 7.3. Balance Sheet Projects ASSETS 2012 2013 2014 CURRENT ASSETS CASH 24,500 34,050 51,755 FIXED ASSETS COMPUTERS 3,000 6,000 6,000 ALLOWNACE FOR DEPRECIATION (1,000) (2,000) (2,000) FURNITURE 6,000 12,000 12,000 ALLOWNACE FOR DEPRECIATION (2,000) (4,000) (4,000) KITCHEN EQUIPMENTS 4,500 4,500 10,000 ALLOWNACE FOR DEPRECIATION (1,500) (3,000) (3,000) TOTAL ASSETS 33,500 47,550 70,755 EQUITY GOVERNMENT 15,000 15,000 15,000 OWNER'S EQUITY 15,000 15,000 15,000 RETAIN EARNING 3,500 17,550 40,755 TOTAL OWNER'S EQUITY 33,500 47,550 70,755 7.4. Income Statement Projects 2012 2013 2014 Total Revenue 50,000 110,000 132,000 Less COGS Total COGS 20,000 44,000 52,800 Operating Profit 30,000 66,000 79,200 EXPENSES RENT EXPENSE 5,000 10,500 11,550 SALARIES EXPENSE 10,000 21,000 23,100 UTILITIES EXPENSE 4,000 8,400 9,240 MAINTENANCE CHARGES (WEBSITE) 500 550 605 PROMOTIONAL EXPENSE 2,500 2,500 2,500 DEPRECIATION EXPENSE (COMPUTERS) 1,000 2,000 2,000 DEPRECIATION EXPENSE (KITCHEN EQUIPMENTS) 1,500 3,000 3,000 DEPRECIATION EXPENSE (FURNITURE) 2,000 4,000 4,000 TOTAL EXPENSES 26,500 51,950 55,995 Net Income 3,500 14,050 23,205 7.5 Breakeven Analysis Fixed Cost - startup assets 33,000 Contribution Margin 60.00% Breakeven Sales 55,000 7.6 Ratio Analysis 2012 2013 2014 Profit margin Net Income/Sales 7% 13% 18% Debt To equity Ratio Total Debt /Total Equity 81% 46% 27% Total Assets Turnover Sales/Total assets 1.49 2.31 1.87 Return on Assets Profit/Assets 10% 30% 33% Return on equity Profit/Equity 19% 43% 42% Debt Ratio Total Debt/Total Assets 45% 32% 21% 7.7. Risks & Assumptions Any new business faces different kinds of risk. The main risks faced by this bar would be the loss of investment, insolvency risk, the risk faced from competitors and the risk because of lower demand of such bars in the country. It is important that the management of the company evaluates different risks faced by the company in advance and take necessary steps. 8.0. Funding request & exit strategy 8.1. Amount & Type of Funds Requested This business plan is prepared to request ?15,000 in order to start a new sports bar which will be offering meal and sports environment for people to enjoy their favourite sports. Initially in the first year the investment required would be 17,000 however in the next year when the company will open another store then it will require further capital of 16,000. The summary of where the assets will be used is as follows; Investment Year 1 Year 2 COMPUTERS 3,000 3000 Kitechen equipments 4,500 4,500 WEBSITE 1,000 FURNITURE 6,000 6,000 Promotional expense 2,500 2,500 TOTAL 17,000 16,000 8.2. Exit Plan Most of the investment made is in reversible assets therefore the investment can be redeem when needed. 8.3. Milestones The company has planned to introduce itself in the London Market in January 2012. In January, the company will also be opening its website as well. The company expects to expand its bars to other cities after one year and it has plans to expand its bars to other European countries from 2015. 9.0. BIBLIOGRAPHY Dunung, SP 2010, Starting your Business, Business Expert Press, New York. Abell, DF 1980, Defining the Business: The starting point of strategic planning, Prentice-Hall, New Jersey. Tummons, J, & Spinelli, S 2009, New Venture Creation, Entrepreneurship for the 21st Century, Mcgraw-Hill Higher Education, New York. Kirzner, IM 1979, Perception, opportunity, and profit: Studies in the theory of entrepreneurship, University of Chicago Press, Chicago. Read More