Effective Business Strategies on the Local Market - Case Study Example

? 2nd April Middle East Restaurant and Supermarket Based on the stiff competition that is currently been experienced in the business arena, it is imperative for a firm to come up with effective business strategies. This entails initiating a business plan that covers the financial, marketing and management policies that a business will emulate in its operations. Some of the major aspects that a business plan should cover include company’s mission statement, firm’s objectives, organizational structure, recruitment of employees and financial estimates. This paper discusses a business plan that Best Choice, a new medium sized restaurant and supermarket located in Sydney, will emulate in its effort to serve its market segment. Being a business that is focused at providing its Middle East based customers with quality food and Coffee, Best Choice will employ various marketing strategies in order to remain competitive in the local market. Mission statement Best Choice mission is to provide excellent services to the Arab community with an aim of increasing its total sales. Additionally, the business is focused on providing quality foods that are in line with the culture of the Canadian people thus resulting to a strong customer loyalty and trust. Our focus is establishing strong positive relationship with our customers with an aim of increasing annual sales and enjoying sustainable profits. Management team Best Choice will be owned by the founders, Abdulaziz, Nawaf and Saad. In order to ensure that the objectives of the business are achieved, Best Choice is in the process of training new employees who will take over the management duties in future. In its effort to ensure that the directors are aware of their duties, the firm has initiated effective allocation of tasks. For example, Abdulaziz will be in charge of the whole business. This includes approval of budgets and payments to suppliers, chairing of all the company meetings among other duties. Nawaf, on the other hand, will be responsible for recruiting and training of new employees as well as being in charge of personal facilities in the company. Saad main duties include ensuring the safety of the workers in addition to procuring of the goods and services that the business will require in its operations. The chart below indicates the organizational arrangement that the business will emulate. Objectives To increase sales by over 20,000 $ in the first year of operation To increase the level of satisfaction for our customers Present our culture to all our customers in the local and international market. Marketing approach Best Choice will first target Arab community. Similarly, the business is targeted at attracting more local people including Canadians who are working in Sydney. Due to its needs to increase annual sales, the restaurant targets middle aged people. In our effort to create a strong positive relationship with customers, we will provide two key ways that our customers will use to buy their products. These include walking into the store and ordering the delivery of their favorite products through the telephone. In our endeavor to maintain loyalty of our customers, we will emulate a marketing mix that includes the 4Ps (product, price, promotion and place.) Product Best Choice main products include Arabic food and beverages. Through the product diversification, our firm is focused on providing quality brands that meet the needs of local people. It is worth noting that due to the increasing population in Sydney, our business will enjoy an increased demand of our primary products thus resulting to high sales. Price Our business aim is to offer low priced products without compromising the quality. Since our target market is the middle aged consumers, our low prices will attract the attention of new and young consumers who are not financially very stable. To ensure that we have a reasonable control of the market, we are focused at adopting penetrative pricing technique. This will entail lowering the initial prices up to the time we will attain a break even point. As the business continues to provide quality products to its customers, we will offer competitive prices that will ensure we remain a competitive business. Promotion In order to ensure that our customers are aware of the various products that we will offer, Best Choice will use various promotional tools including internet, roadside shows, banners and newspapers. It is worth to note that strong customer awareness is imperative in ensuring that we attain high sales and profits thus making it possible to meet our liabilities. In this regard, we will undertake extensive corporate social responsibilities that include sponsorship of sporting activities and donation of food and beverages to the drought stricken areas especially in poor countries. Place Best Choice will be located next to Wall-mart’s Sydney River. One of the major factors that have made us choose the location is the low rental price as well as large number of potential customers. Additionally, the location does not experience traffic problems that may hinder our customers from accessing our stores. Major areas that our business will serve include Sydney, Glace Bay, Whitney New Bear, New Waterford, Westmount and Coxtah. Personnel As mentioned earlier, Best Choice will be owned by the three founders. This will be followed by recruitment and training of new employees. Primary training that our business will emulate will cover areas such as time management, communication skills and Arabic language for foreign workers among others. After two years of operations, the business will hire various personnel with relevant skills to ensure effective delivery of services (Pinson 21). The table below indicates key personnel that our business will hire in order to achieve the preset objectives. Position Requirements Duties Managing director Degree in commerce (finance option) Masters in business management or administration 5-10 years experience as a manager in a well established company Supervising and coordinating all other junior employees Controlling and managing Best Choice resources Chief technician Degree in food technology Diploma in business management 5 years experience in a reputable restaurant Ensuring all the machines in the production facility in a working condition Maintaining safety of the workers including the senior managers Sales executives Degree or a higher national diploma in marketing Computer literate Certificate in communication skills Promoting and advertising of products Visiting and receiving customer orders Undertaking and ensuring that advertisements programs are in line with company policies Senior Accountant Degree in commerce (Accounting option) Diploma in accounting 5 years experience Extensive skills in use of accounting packages including QuickBooks and sage Preparing annual and monthly and quarterly financial reports Maintaining accounts records are in the computer system Computation and payment of income tax and other forms of statutory taxes Internal auditor Degree in a economics or commerce Higher national diploma in accounting 5-10 years experience in a reputable firm Ensuring that Best Choice is compliant with accounting standards Supervising other employees in the finance department Advising senior managers on the use of company resources Human resources manager Degree in human resources management 3 years experience as a human resource manager in a reputable firm Hiring and training of new workers Establishing and initiating policies relating to compensation of all the employees and owners Storing of all employment records and contracts Chef Degree in food technology Diploma in public health Ensuring high quality food and beverages Responding to customer queries Security officer Diploma in disaster management Certificate of good conduct from the government security department Ensuring security of business resources including computers and motor vehicles Assisting employees during emergencies Benefits and compensation One of the major ways of improving the performance of employees is providing them with flexible benefits that include insurance cover, training, rewards, gifts among others. Our key resources are in our business employees. In this regard, our focus is to treat them in a respectable way in order to improve their productivity. One of the major ways that our business will emulate is annual training program. This will include training our workers on leadership and management. As a result, we will attain a strong work force that will work towards attainment of the company objectives. Based on the kind of services that we will offer our aim is to maintain maximum security in the work place. In this regard, Best Choice will provide insurance coverage as well as training on how to address emergencies to all workers. In this way, cases of absenteeism and sickness will be significantly reduced thus ensuring continuity in the production department. Physical facilities In the day to day running of business operations, physical facilities are vital in ensuring that a firm caters for the needs of its customers. On its part, Best Choice will emulate two types of facilities. One side of the restaurant will be prepared for the modern table while the other one will be designed to be inline with Arabic way of seating. Based on the high demand of our products in the supermarket section, Best Choice will hire quality staff that will guide our customers during their purchasing process. In our effort to ensure security of our physical facilities, we will use the services of best insurance companies in Nova Scotia. In this way, we will ensure continuity of our services in cases of emergencies. Other facilities that the business will use include modern kitchens, stores and computers. Financing Based on the wide range of products that Best Choice will offer in the market, there is a need to come up with appropriate and adequate sources of finance. Our business will focus on three major ways of funding. First, it will use three equal payments of 50,000 $ from the three founders. Secondly, the firm will seek a loan of 80,000 $ from its bank after three months of operations. Thirdly, in the first 6 months the company will not charge for its products or services. These duties will be undertaken by companies that we have contracted with. The table below indicates the expected cash inflow in the first 5 months of operations. Cash receipts Jan Feb Mar Apr May Total Estimated sales $20,000 $25,000 $30,000 $35,000 $40,000 $150,000 During our marketing activities we will incur various costs such as advertising, promotion as well as packaging expenses. Other expenses include office supplies, wages, insurance, rent and licenses among others. The table below indicates the costs that we expect to incur in the first 5 moths of operations. Expenses January February March April May Total Rent $900 $900 $900 $900 $900 $4500 Internet and phone $150 $150 $150 $150 $150 $750 Cashier software $200 $200 Insurance $208.3 $208.3 Supplies $1000 $1000 $1000 $1000 $1000 $5000 Internet advertising $100 $100 $100 $100 $100 $500 Tables, chairs, etc. $1100 $1100 Store redesigning $700 $700 wages $1500 $1500 $1500 $1500 $1500 $7500 Permit & licenses $2500 $2500 Marketing $750 $250 $250 $250 $250 $1750 Total expenses $19,708 Conclusion Based on the above discussion, it is clear that a good business plan should take into consideration all the aspects that a new venture should emulate. For example, clear management policies and allocation of duties are essential in ensuring that each of the managers is aware of his or her duties. Similarly, managers should emulate effective recruitment process that indicates the job description as well as the benefits associated. Finance is a vital aspect that cannot be overlooked by managers during the preparation of a business plan. Some of the major ways that companies can use to raise funds include selling of shares, contribution by directors, loans from banks and undertaking of initial public offer among other others. Works Cited Pinson, Linda. Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future. Chicago: Dearborn Trade, 2004. Print. Read More