Answer & Explanation:Referring to the same business you either started or purchased in the first assignment, write a 6-8 page paper in which you: Outline a financial plan for your small business.Develop a guerrilla marketing strategy for your small business.Discuss the most appropriate location for a second store (an actual street address). Explain your reasoning.Outline a plan for securing sources of debt financing for your second store.Include at least two (2) references outside the textbook. Your assignment must follow these formatting requirements: Be
typed, double spaced, using Times New Roman font (size 12), with
one-inch margins on all sides; references must follow APA or
school-specific format. Check with your professor for any additional
instructions.Include a cover page containing the title of the
assignment, the student’s name, the professor’s name, the course title,
and the date. The cover page and the reference page are not included in
the required page length.
20160811190358to_buy_or_build.doc
2016081119031120160727205730fast_food_restaurant._revision.docx
Unformatted Attachment Preview
CHICKEN TREAT RESTAURANT
1
Chicken Treat Restaurant
Linda Grimsley
Professor: Angela Harris
BUS 402- Small Business Management
August 1, 2016
CHICKEN TREAT RESTAURANT
2
Chicken Treat Restaurant
Business strategy
Chicken Treat Restaurant is a small restaurant that specializes in fast moving foods and is
located at a strategic place in the city. To compete favorably with this business, an entrepreneur
should come up with a unique idea that would help compete with the restaurant. As an
entrepreneur my focus would be introducing the use of spices that are used by different people
around the world to help give different tastes and flavors to the food prepared in the restaurant.
This would help meet the taste and preferences of customers from varied backgrounds. In
addition to that, I would introduce home delivery services where customers easily access the
ordered food at their door step. This idea will successfully materialize through the use the
product differentiation business strategy (Spulber, 2009).
Product differentiation strategy helps the entrepreneurs to be distinguished in the way they offer
their goods and services. This strategy is important since it helps the business to provide services
and products with unique features. These features are usually not available for other similar
companies, thus attracting many customers. The uniqueness of the products and services offered
is beneficial in the sense that it adds value to the products. As a result of the added value, the
charges are increased, and this step helps to earn more revenue for the business. Customers, on
the other hand, are satisfied with the products and services and will, therefore, have no problem
with the increased price.
Product differentiation, on the other hand, offers the opportunity for the business to compete with
other companies as a result of the unique feature and not the price (Spulber, 2009). Non- price
CHICKEN TREAT RESTAURANT
3
competition is healthy for the company since clients focus on the quality thus giving the business
a competitive advantage. For the new business concept of differentiating the fast food offered to
customers, they would appreciate this product making the business stand out among other
businesses. Similarly, providing home delivery services to the clients helps in making the
business known by many people since the food they require will now be offered in the comfort
of their homes.
In addition to that, product differentiation strategy helps the entrepreneur to obtain brand loyalty
from consumers. Brand loyalty is where the business can sustain current and potential customers
due to the quality products and services offered. Moreover, the customers have no choice but to
purchase these products due to lack of another business offering the same differentiated products.
Despite the fact that competitors offer similar products, they lack the unique features which
customers subscribe to. This strategy assures absolute customer loyalty leading to increased
revenue. The business earns an added advantage in the market and is labeled as being different
from other similar firms.
Ownership
To actualize this concept of product differentiation, purchasing the Chicken Treat Restaurant is
more beneficial than setting up a new business. There exist various reasons why buying an
existing business is more profitable than putting up a new business (Goffee, & Scase, 2015). To
begin with, purchasing the existing business is less costly in terms of the funds needed. Starting
up a new business requires a lot of funds as an entrepreneur will have to look for new premises,
purchase the required equipment and look for new workers. These costs are cut down since an
existing business has all that and the payment made is less. In addition to that, an existing
CHICKEN TREAT RESTAURANT
4
business has already established its brand and name and people are aware of its existence. This
aspect makes it easy for it to adopt the new business concept and inform its customers of the
changes. Setting up a new business, on the other hand, requires more effort in the sense that the
firm has to look for clients. The new business has to build it brand which may be difficult as
customers may be reluctant to purchase products from the new business.
The best form of ownership for this new business is a partnership between the owner of the
restaurant and me. A company form of business ownership is better because raising funds to
implement the business concept is much easier than applying it alone. Aside from that
partnership allows the sharing of ideas among the partners, therefore, giving quality decisions.
The partnership allows the spreading of risks involved in the implementation of the business
concept. As a result, the burden of incurring the risk solely is reduced. The borrowing capacity of
a partnership form of business ownership is high as many lenders offer loans quickly. This aspect
makes it easier for the partners to acquire financial aid from financial institutions. Hence, the
best chance for the business to operate and run successfully is through partnership given the little
finance available.
Activities and key decisions to start a business
For an entrepreneur to start a successful business, there are various activities and decision that
he/she must take to ensure that the firm succeeds (Goffee, & Scase, 2015). The first step involves
the brainstorming of ideas so that one can pick a mature idea. Brainstorming an idea requires
thorough consideration of the kind of business to set up, the target and the particular market gaps
that exist in the market. In addition to that, an entrepreneur should consider the type of products
and services to offer. In the case of the Chicken Treat Restaurant, the idea of adding taste to the
CHICKEN TREAT RESTAURANT
5
fast food originates from the fact that various restaurants hardly use different spices to make their
foods taste. The dependence on local ingredients makes the food cooked only to contain a
particular flavor, thus introducing ingredients both locally and from different parts of the world
would create a competitive advantage. Apart from the businesses that are already operational in
this location rarely offer home delivery services giving rise to the need of implementing this
services in the new business.
Another critical step towards establishing the business is the creation of a business plan, and this
plan will assist the company to execute systematically its functions having created the main
reason for its set up. In addition to that, a business plan is helpful since it sells out the objective
and expectation of owners, customers, and workers. Thus through a business plan, cooperation
between the business stakeholders is realized. The final step involves the identification and
gathering of resources required to start the business and setting of goals and objectives. To
launch the new business, I will retain the brand Chicken Treat Restaurant from the former
business. Below is the business plan for Chicken Treat Restaurant.
Business plan
Executive Summary
Chicken Treat Restaurant is a business in the hotel industry dealing with first moving foods. The
restaurant is devoted to preparing unique fast moving foods to its customers through the use of
various ingredients produced in different parts of the world. This uniqueness is meant to give the
customers a unique sense of diversity since different people use different ingredients. The
management is determined to offer quality hotel services by taking into account each client taste
and preference. The goals of the business are to continue providing differentiated Food and
CHICKEN TREAT RESTAURANT
services in the local market and extend their operation to other countries. In addition to that, the
restaurant will offer home delivery services where customers are free to make orders, and they
are delivered at their doorstep. This service is meant to improve customers’ loyalty and also
create a competitive advantage. The hotel aims at minimizing the cost and maximizing on the
revenues through the use of the product and service differentiation strategy.
Company Description
Chicken Treat Restaurant specializes in fast moving food such as prepared food, beverages, and
soft drinks. It serves customers locally and also offers home delivery services. The restaurant
operates on a 24 hours routine with workers working on shifts.
Market analysis
The existing market provides fast moving foods that are based on locally available spices. Thus
Chicken Treat Restaurant presents an opportunity for the customers to enjoy different flavors
obtained from spices produced both locally and from other countries. Apart from that, the
business will have an advantage of providing home delivery services which no other restaurant
offers the same. This service will make the restaurant secure a competitive advantage over other
competitors. Hence the strength that the restaurant will have against other competitors is the
ability to provide differentiated and unique fast moving food and services.
Organization and Management
The restaurant is managed by a manager who is responsible for organizing and delegating duties
to the junior stuff. The manager is, however, answerable to the partners who are the directors of
the restaurant.
6
CHICKEN TREAT RESTAURANT
7
Service and Product line
The hotel is committed to the processing and packaging fast moving foods and also offers home
delivery services for clients within the vicinity of the location of operation.
Marketing and sales
The target market is the general public, and the restaurant expects to make daily sales through
the home delivery service and from the restaurant.
Funding
The funds will be raised from the partners’ contribution and also through lending from financial
institutions.
Issues in business management
There arise various issues in the management of small businesses (Ferrell, & Fraedrich, 2015).
One such challenge is the dependency on the client making it difficult for the owner to diversify
the activities. The customers who frequent the business are treated with caution as the owner
avoids making changes that might scare them away. Another problem faced is the issue of
managing the finances of the firm where the responsibilities and obligation start increasing
making the managers unable to set their priorities. As the business grows to perform, the
accounting activities are thus requiring the services of an expert. Likewise, the owners have the
challenge of managing the quality of services and products and the growth of the business.
Balancing the two aspects of the firm proves a challenge to the owners’. There is also an issue of
fatigue since the owners and workers get under the pressure of producing the best. This problem
CHICKEN TREAT RESTAURANT
8
makes them work for long hours without minding their well-being; as a result, they end up
suffering from fatigue.
Nature of entrepreneurship
To successfully manage an entrepreneurship, the entrepreneur must be creative and innovative so
that he/she comes up with a business that can compete favorably with other firms (Goss, 2015).
An entrepreneur should also be able to solve any problem that arises in the market through
innovation and creativity. The entrepreneur should be driven by the motive of being the best and
performing exemplary in the market. To be a high achiever, the entrepreneur must also be patient
and endure all the economic difficulties he/she is likely to face. To add on to that, he or she must
portray managerial traits and must be hardworking so that he applies the traits while managing
the business.
Business ethics and social responsibility
Apart from the characteristics of an entrepreneur, he or she is expected to observe the business
ethics. In the case of Chicken Treat Restaurant, the management is supposed to deal with quality
prepared food that is free from any harm to the consumer. Therefore, the management should be
keen on the expiry date and the sanitation of the restaurant. It should also treat every stakeholder
with respect for it to successfully operate. In addition to that, it should also observe social
responsibility to the surrounding community by responsibly dumping their waste. Participation in
the community affair such as cleaning and sanitation campaigns and educating needy people will
help it gain the community favor. Therefore, the community provides them with a peaceful
environment to operate in.
CHICKEN TREAT RESTAURANT
To conclude, starting small businesses is quite easy but it requires an entrepreneur to have an
idea that can fill the market gap. Identifying the form of ownership is also important in the
determination of how the business will be managed. Additionally, the entrepreneur should adopt
a particular business strategy and formulate a business plan to help in the management and
realization of the goals and objectives of the firm. It is also important to have entrepreneurial
traits and also observe business ethics and social responsibility for smooth running of the
business.
9
10
CHICKEN TREAT RESTAURANT
REFERENCE:
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases. Nelson
Education.
Goffee, R., & Scase, R. (2015). The Real World of the Small Business Owner (Routledge
Revivals). Routledge.
Goss, D. (2015). Small Business and Society (Routledge Revivals). Routledge.
Spulber, D. F. (2009). Product differentiation strategy in Economics and Management of
Competitive Strategy (pp. 341-378).
Running head: CHICKEN TREAT RESTAURANT
Chicken Treat Restaurant
Name:
Professor:
Course Title:
Date:
1
CHICKEN TREAT RESTAURANT
2
Chicken Treat Restaurant
Business strategy
Chicken Treat Restaurant is a small restaurant that specializes in fast moving foods and is
located at a strategic place in the city. To compete favorably with this business, an entrepreneur
should come up with a unique idea that would help compete with the restaurant. As an
entrepreneur my focus would be introducing the use of spices that are used by different people
around the world to help give different tastes and flavors to the food prepared in the restaurant.
This would help meet the taste and preferences of customers from diversified backgrounds. In
addition to that, I would introduce home delivery services where customers easily access the
ordered food at their door step. This idea will successfully materialize through the use the
product differentiation business strategy (Spulber, 2009).
Product differentiation strategy helps the entrepreneurs to be distinguished in the way they offer
their goods and services. This strategy is important since it helps the business to provide services
and products with unique features. These features are usually not available for other similar
firms, thus attracting many customers. The uniqueness of the products and services offered is
beneficial in the sense that it adds value to the products. As a result of the added value, the
charges are increased, and this step helps to earn more revenue for the business. Customers, on
the other hand, are satisfied with the products and services and will, therefore, have no problem
with the increased price.
Product differentiation, on the other hand, offers the opportunity for the business to compete with
other firms as a result of the unique feature and not the price (Spulber, 2009). Non- price
competition is healthy for the company since clients focus on the quality thus giving the business
CHICKEN TREAT RESTAURANT
3
a competitive advantage. For the new business concept of differentiating the fast food offered to
customers, they would appreciate this product making the business stand out among other
businesses. Likewise, providing home delivery services to the clients helps in making the
business known by many people since the food they require will now be offered in the comfort
of their homes.
In addition to that, product differentiation strategy helps the entrepreneur to obtain brand loyalty
from consumers. Brand loyalty is where the business can sustain current and potential customers
due to the quality products and services offered. Moreover, the customers have no choice but to
purchase these products due to lack of another business offering the same differentiated products.
Despite the fact that competitors offer similar products, they lack the unique features which
customers subscribe to. This strategy assures absolute customer loyalty leading to increased
revenue. The business earns an added advantage in the market and is labeled as being different
from other similar firms.
Ownership
To actualize this concept of product differentiation, purchasing the Chicken Treat Restaurant is
more beneficial than setting up a new business. There exist various reasons why buying an
existing business is more profitable than putting up a new business (Goffee, & Scase, 2015). To
begin with, purchasing the existing business is less costly in terms of the funds needed. Starting
up a new business requires a lot of funds as an entrepreneur will have to look for new premises,
purchase the required equipment and look for new workers. These costs are cut down since an
existing business has all that and the payment made is less. In addition to that, an existing
business has already established its brand and name and people are aware of its existence. This
CHICKEN TREAT RESTAURANT
4
aspect makes it easy for it to adopt the new business concept and inform its customers of the
changes. Setting up a new business, on the other hand, requires more effort in the sense that the
firm has to look for clients. The new business has to build it brand which may be difficult as
customers may be reluctant to purchase products from the new business.
The best form of ownership for this new business is a partnership between the owner of the
restaurant and me. A company form of business ownership is better because raising funds to
implement the business concept is much easier than applying it alone. Aside from that
partnership allows the sharing of ideas among the partners, therefore, giving quality decisions.
The partnership allows the spreading of risks involved in the implementation of the business
concept. As a result, the burden of incurring the risk solely is reduced. The borrowing capacity of
a partnership form of business ownership is high as many lenders offer loans quickly. This aspect
makes it easier for the partners to acquire financial aid from financial institutions. Hence, the
best chance for the business to operate and run successfully is through partnership given the little
finance available.
Activities and key decisions to start a business
For an entrepreneur to start a successful business, there are various activities and decision that
he/she must take to ensure that the firm succeeds (Goffee, & Scase, 2015). The first step involves
the brainstorming of ideas so that one can pick a mature idea. Brainstorming an idea requires
thorough consideration of the kind of business to set up, the target and the particular market gaps
that exist in the market. In addition to that, an entrepreneur should consider the type of products
and services to offer. In the case of the Chicken Treat Restaurant, the idea of adding taste to the
fast food originates from the fact that various restaurants hardly use different spices to make their
CHICKEN TREAT RESTAURANT
5
foods taste. The dependence on local ingredients makes the food cooked only to contain a
particular flavor, thus introducing ingredients both locally and from different parts of the world
would create a competitive advantage. Apart from the businesses that are already operational in
this location rarely offer home delivery services giving rise to the need of implementing this
services in the new business.
Another critical step towards establishing the business is the creation o …
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