Business plan - Assignment Example

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Even though Canadians can enjoy ice creams in true spirit only during summer months, having a place to go for a range of exclusive…
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Business plan
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Download file to see previous pages The majority of Canadian customers are not ready to accept reduced quality of commercial ice creams. Hence the potential for specialized ice creams is high in this market. By combining beverages as ice coffee, milk shakes, hot cappuccino and hot coco, with the desserts and ice creams, the SW&D offers a year round reason for customers to visit the outlet. The business model that would be used in the SW&D venture would be a Differentiated Value experience where even through the pricing would be up-market and above market averages, the exotic varieties of deserts, the freshness and natural ingredients will deliver a value package that will differentiate the company. The products will be exclusive and exotic in nature but reasonably priced to maintain affordability. The expectations is that SW&D’s premium image will offer a low price elasticity in terms of economic considerations and make customers willing to pay additional money to experience the SW&D quality. Combined expertise of the two partnering entrepreneurs, Neil and Susan Shucroft will offer culinary expertise in dessert making which Neil acquired in qualifications and experience during the years in Europe as well as Susan’s service management experience in food service field. The initial financial analysis points to a highly lucrative venture and the capital funding to be invested can be recovered within 2 years period of time. This is a relatively low investment venture with high profitability returns of around 50% GP margins and 15% average NP margins. Such profitability is common to Food service industry, if the venture’s operations are managed stringently and with cost and quality consciousness. This business report provides a comprehensive market analysis and prose the business and functional level strategies as well as a preliminary financial analysis for the review of prospective investors of this ...Download file to see next pagesRead More
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