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This assessment task assists students to develop skills in:

• applying the principles of entrepreneurship to research and judge the feasibility of a recognised opportunity: and

• choosing appropriate methodologies to formulate and present a business plan for a new venture

Students are required to identify an opportunity for which they will need to develop an entrepreneurial business plan. The plan must be forward projecting for at least three years and not be an existing business. Students may use an existing business organisation provided the entrepreneurial effort within that business is new to that business.

Innovative dining on a ship-themed restaurant

Entrepreneurial opportunities and innovative elements:

The business goal consists of the planning of a restaurant in Malaysia named, Captain Cook’s Den. It will be located in the Tioman Island, in Kuala Lumpur. The restaurant would provide the opportunities to the guests to have a memorable experience with an innovative concept. The entire restaurant will be built on a ship and it is placed on the beach. The restaurant can have an accommodation of 100 people. The restaurant would permit their guests to enjoy their food in an innovative environment. The customers who would not wish to sit on the ship can sit on the beach as the restaurant offers that facility. The restaurant will have 30 staffs working for them. The decoration would be based on the theme of sea pirates. The waiters will be dressed up like the cabin crew of the ship. The manager and the cook are supposed to wear the same dress with an additional hat on their head. The environment of a particular restaurant is an important factor that should be concentrated and constant development is required. This is the reason the restaurant should make efforts to bring innovative thoughts in designing the environment so that it might stand out and it might turn out to be attractive than the other restaurants located in the same region (Dees, 2017). The restaurant would arrange a cultural program for their guests and they would arrange the program in the evening. The restaurant requires to appoint a professional troupe who can entertain the guests with their performances. The restaurant near the sea beach is supposed to be an informal place where the guests comes to spend their holiday and have recreation. This is the reason the restaurant near the sea beach should be designed for informal gatherings like party, cultural programs, birthday celebrations, anniversary celebrations and similar other occasions. This might not include the business seminars, meetings and business gatherings (Drucker, 2014).

The restaurant would have a systematic designations. It will have a head chef, it will have a senior manager who will look after all the activities of the restaurant and he will look after all the departments of the restaurant. The executive manager will look after the customers and the booking related things. There will be 30 waiters that will include only the males and there will be female attendants who will be there to collect the feedbacks from the customers and answer to all their quarries. They will be 6 to 7 in number. The reason for setting up the hotel near the sea beach is the availability of the fresh resources. The cuisine will consist of the sea foods like the Thai food, Indian food, English cuisine, Mexican cuisine and Spanish cuisine. It has a huge English and Indian market. Tourism is the most important source of income in this region. This is the reason the food should be of the best quality and it should be reasonable. The restaurant might get the raw materials from the local region itself that will enable the produce the products within a low cost (Kohlbacher, Herstatt & Levsen, 2015).

Strength

The strength of the restaurant is the quality of the food it offers. The restaurant would have variety of cuisines that might attract maximum amount of customers. The other strength is the innovative ambience. The restaurant will create a beach side ambience with the cultural program in the evening. This will attract more guests who have come for a holiday. The reasonable rate of the food can be added as the strength (Davidsson, 2015).

Weakness

The restaurant have facilities only for informal gatherings. The restaurant does not design the corporate meetings and the business seminars. This can be a weakness as there are many corporate companies who likes to organize a business meetings in the restaurants near the sea beach. The restaurants might lose out clients who are looking for these facilities (Stam, 2015).

Opportunity

The ambience and the location of the restaurant can serve as the biggest opportunity for the restaurant. The restaurant plans to make arrangement for their guests on the deck as well as on the beach. Apart from this the multiple cuisine might attract guests of all origins (Lusch & Nambisan, 2015).

Threat

The biggest threat of the company is the competitors. There are many such restaurants in that area which can take away the potential customers (Kuratko, Hornsby & Covin, 2014).

Range of seafood, English, Mexican, Spanish, and Thai cuisines

 Table 1: SWOT Analysis

Source: created by author

Political

The government of Malaysia highly supports the growth of restaurants. The maximum source of economy of the region is from tourism. This is the reason the government makes all the efforts to support the restaurants across the country.

Economic

The maximum amount of customers looks for good food with a proper ambience. This gives a huge rise in the economy of the country.

Social

People with good lifestyle visits Malaysia and they look for good and classy environment. The restaurant can attract the people with all types of lifestyles as they plans to have reasonable food with innovative ambience and with proper food quality.

Technological

The restaurant can allow their customers to book their tables online and rate their food on the social media. It makes the restaurant technologically advanced.

Environmental

The restaurant will install the solar panels on the roof which will add to the CSR activity. Apart from this the restaurant will initiate the recycling of the materials used in the business operations. These things can highly be appreciated and can effectively increase the reputation of the organization in their operational market (Garud, Gehman & Giuliani, 2014).

Legal

The restaurant will have a proper trade license, it will have a constant check of the food inspectors so that the restaurant provides good quality food to their customers. The restaurant will look into the matter that they perform the ethics towards the customers and the environment (Boger et al., 2017).

 Table 2: PESTEL analysis

Source:  created by author

Keys to success

The owner of Captain Cook’s Den in a press meet stated that as he named the restaurant on one of the most decorated and celebrated English explorer who made sea ways his home, therefore the menu card will reflect the same and the focus of the chefs of the organization will be to offer exquisite seafood to the target customers of the business organization (Zhang, 2015). Apart from that, the owner Mr. Mahmud stated that they will follow certain principles that can help them to get competitive edge in the market of Malaysia and generate adequate productivity along with profitability.  

The management of Captain Cook’s Den will deploy a team dedicated to control the quality of the services and the quality of the food that will be offered to the customers. The theme of the restaurant will be like a big 18th century ship and the restaurants and the front staffs will be wearing uniforms like the crew members of the 19th century ships, the managers and the chefs will be wearing captain hats. The management will make it sure that the customers of the restaurant will get a feeling that they are sitting on the deck of an 18th century ship.

The management will ensure that they will be using ingredients of the highest quality as they will be running a fine dining themed restaurant.

The management of the organization will ensure that they are able to offer a range of varieties in the food menu to their customers. The emphasize will be on sea food but the restaurant will be offering English, Mexican, Spanish, Thai and Indian cuisine to their customers.

The management of the business organization will focus on hiring the employees who have adequate professional skills and cultural intelligence so that the productivity of the organization stays on the higher end and the workforce has the ability to deal with the customers who may come from different cultural backgrounds (Betancor et al., 2015). In the selection process the focus will thus be on the professional skills and cultural along with emotional intelligence as the organization will be operating in the hospitality industry. The management of the business organization will also focus on how they can retain the employees as to achieve success, it will be important to have a skilled workforce in the disposal.

Informal gathering with a cultural program

The management of the business organization will emphasize on the factor that they need to ensure that they are not wasting capital. As in today’s world when the market competition is always in the higher end, cost control became an important determining factor of the company’s profitability (Zhang, 2015). Therefore, the management of the business organization should focus on controlling excess expenditure. It can be said that 60% of the success rate depends on restraining the excess expenditure.

  • The management of the business organization is aiming to keep the employee costs between 30% of the total sales.
  • The décor and ambience of the restaurant should fetch the much needed competitive edge
  • The restaurant should be able to attract foreigner tourists
  • The management will be trying to expand their business in the market of South East Asia within 10 years from now.
  • The management wants to attract a customer base of the age group between 20 to 40 years old.

The management of Captain Cook’s Den wants to cater a huge customer base in the market of Malaysia in order to get and sustain the competitive advantage in the domestic market of operation. The target customers of the management will thus be the downtown couples, high end singles, foreigner tourists, domestic travelers. The management does not want people to use their restaurant for business meetings as that can be harmful to their friendly and celebrating ambience (Wardono, Hibino & Koyama, 2017). Therefore any formal gathering in the restaurant will be highly disregarded. As the management will be offering great acoustics in their organization with the provision to sit in the beach and light a bonfire, the target customers will have to be youths.  

Market segment strategy

Couples: the management of the restaurant will be offering an intimate and romantic ambience that the couples can enjoy. The management of the organization will also be offering great acoustics that can effectively improve the ambience. It is a matter of fact that the management of the organization wants to increase the reputation of the business organization as a heaven for the couples.

Foreigner tourists: the management of Captain Cook’s Den wants to attract as much foreigner tourists as they can as their aim is to expand their business in the international market. as the management will be offering great services, naturally they can expect that via a good word of mouth publicity the management of the organization will be able to attract more international customers and can eventually gain a reputation in the international market before venturing in a foreign market (Betancor et al., 2015).

High end singles: the management of the business organization will be expecting to attract the high end singles with their attractive décor and ambience as they want to feel te high end singles to be in the right place (Fischer, 2015). These particular customers generally takes pride in socializing and dining in posh places and the management wants to utilize this crown to maximize the profitability o the business.

Operated by a team of skilled professionals

Musicians: the management of Captain Cook’s Den will be offering great acoustics in their restaurants and in the open mic sessions many aspirant musicians can join and play their music. This can effectively attract a huge crowd of musicians in the organization. the management actually wants to have a musical ambience and that is why they are focusing to have a crowd that understands and appreciates good music.   

Domestic tourists: the management of the restaurant also wants to attract a huge crowd of the domestic tourists in their organization as they surely want to maximize the profitability of the organization (Ihsanullah & Rashid, 2017). In this regard, it is worthwhile to mention that Tionan Island is a popular destination for the domestic tourists and the management of the organization just wants to take that opportunity to generate profitability. The management will be hosting numerous social events and that can effectively attract a huge domestic tourists’ crowd.    

It can be said that currently the restaurant business is becoming very competitive and the owner  of the organization should take every steps while setting up the business in a market full of competition. In the restaurant business in order to sustain profitability ethically, the key is to lower the internal costs and providing good quality food so that the mark up prices can be raised after a few years to gain the maximum profitability (Hamilton et al., 2015). At the same time the quality of the ingredients should be maintained effectively; otherwise the plan will backfire. Therefore to sustain the profitability, the management should have a clear understanding of the market with the associated risks, the strengths and most importantly the finance. The management will have to make a budget regarding their expenditure and the anticipated salability in order to have an idea of the profitability they can generate for at least three coming years.

Year 1

Year 2

Year 3

Operating activities

Net income

$0

$0

$0

Depreciation

$28,500

$29,070

$29,640

Accounts receivable

$0

$0

$0

Inventories

$0

$0

$0

Accounts payable

$0

$0

$0

Amortization

10,000

10,000

$10,000

Other liabilities

5,000

5,000

$5,000

Other operating cash flow items

0

0

$0

Total operating activities

$43,500

$44,070

$44,640

Investing activities

Capital expenditures

$0

$0

$0

Acquisition of business

0

0

0

Sale of fixed assets

$0

$0

$0

Other investing cash flow items

0

0

0

Total investing activities

$0

$0

$0

Financing activities

Long-term debt/financing

($95,000)

$0

$0

Preferred stock

0

0

0

Total cash dividends paid

5,000

5,000

5,000

Common stock

0

0

0

Other financing cash flow items

0

0

0

Total financing activities

($90,000)

$5,000

$5,000

Cumulative cash flow

($46,500)

$49,070

$49,640

Beginning cash balance

$0

($46,500)

$2,570

Ending cash balance

($46,500)

$2,570

$52,210

Summary Statement

Sources of Capital

Owners' and Other Investments

 $   6,027,500

Bank Loans

               5,000

Other Loans

            90,000

Total Source of Funds

 $   6,122,500

Startup Expenses

Bldgs / Real Estate

 $         60,000

Leasehold Improvements

            22,000

Capital Equipment

            60,500

Location / Admin Expenses

            27,500

Opening Inventory

                        -

Advertising / Promo Expenses

               6,000

Other Expenses

            50,000

Total Startup Expenses

 $ 12,471,000

 Source: created by author

It is a matter of fact that the management of the business organization can effectively gain some competitive advantages in their domestic market of operations as the management has already invested a fortune in the advertising and after the successful press meet the reputation of the organization and the hype among the target customers of the organization got increased significantly (Betancor et al., 2015). The organization will be offering excellent décor and ambience for the customers and apart from that they will be hosting numerous social events that can effectively attract the target customer base of the organization. It can surely be said that the management of the business organization needs to be aware of the fact that they should effectively stress on maintaining the quality of the products and the services that they are going to offer to the customers; as these are the determining factors of a restaurant’s success (Ahmad & Mason, 2014). It is a matter of fact that the managers of the company needs to understand the fact that to ensure profitability along with maintaining a good reputation in the market of operation, the management will have to make sure that the services and the products they are offering, should be of the highest quality and the advertising of the organization in the preliminary stages should be appropriate so that maximum people can get the information regarding their venture in the market of Malaysia.     

Quality services and food

While setting up a new business an entrepreneur accepts the risks that are associated with the profit of the organization. There are number of theories that form a basic part of entrepreneurship. These theories. This section include the entrepreneurship theories related to restaurants. The theories are:

This theory belongs to the first half of the 1700s and this can be related to the work of Richard Cantillon. He was the one to explore the idea of entrepreneurs as risk takers. The restaurants requires huge investment and is associated with a huge economic risk. It tends to receive the significant criticism for failing to recognize the dynamic, it is characterized by the open nature of the systems of the market. It ignores the unique nature of entrepreneurial activity and downplaying the diverse contexts in which the entrepreneurship occurs (Williams, 2016).

This theory is based on the fact that the individuals make use of different types of resources in order to get the entrepreneurial efforts done. This include the access to the type of resources that acts an effective chance of getting a new venture. The restaurants requires resources like fresh raw materials for food, the resources to design the equipment’s that are necessary to build the restaurant. They require manpower that forms an essential part of the restaurant. The other types of resources that are required in the restaurant business is the social networks, as well as the human resources. It also requires the intangible elements of managerial skills and the leadership skills (Espíritu-Olmos & Sastre-Castillo, 2015).

This theory focus on the psychological theories of entrepreneurship. This include the mental or emotional elements that are present in the entrepreneurial individuals (Gast, Vershinina & Woldesenbet, 2016). In order to set up a restaurant the entrepreneur have to think of an innovative plan that will attract maximum amount of consumers. It leads to the optimism drive that suggests entrepreneurial behaviour (Bullough & de Luque, 2015).

The theory is explained in the social context. This serves as a wide opportunity to the entrepreneurs. The role of entrepreneur is questioned within the context of culture. In case of a restaurant business the entrepreneurs must be able to think from an innovative cultural view point. In this case the owners of the restaurant considered the casual culture of Malaysia and proposed to create the same culture in the restaurant. This shapes the behaviour and the perception of the entrepreneurs (Forsgren, 2017).

This theory opines the fact that the entrepreneurs must take advantage of the situation they get. The possibilities they get are created by the social, technological and the cultural changes that occur. The restaurants must cater to the sudden influx of the younger people to a neighbourhood as a potential customers. The entrepreneur might see it as a chance to open a new choice for them (Garud & Gehman, 2016).

The business can be predicted to be a successful one as it can be studied from the plan. The reason of the same lies in the name itself. As stated earlier, the owner of the restaurant in one of his interview stated that he named the restaurant on one of the most celebrated character, who made the sea voyages. The reason for this is that the sea is located near the sea beach and it is built on a ship. The concept of having cultural programs in the ship, having an ambience of sea pirates, all are parts of strategic innovation. It is feasible of the restaurant to have a theme of 18th century ship. Starting from the uniforms of the staffs to the management all are organized under one theme (Ghazali et al., 2016). Apart from this the restaurant can get fresh product from the place where it is located which will make the quality of the food innovative. This will enable them to cut the cost and make profit. The restaurant will lay the focus on the sea food. The restaurant will be able to capture the market as they have planned the business according to the culture and the needs of the tourists and the local people of that region. The company makes efforts to apply effective procedures in the selection of the employees and the retention of the same. They will hire those employees who will have adequate knowledge and skill. The productivity of the employees shall be kept in mind. The organization pays attention towards the cost control. They would ensure of not wasting capital. This will enable them to establish themselves in the competition that exists in the market (Ahmad et al., 2016). The company has the potential to attract the foreign tourists as they have the culture that the foreigners looks forward to. They also will design strategies to attract the domestic tourists. By analysing the budget required for the plan it can be mentioned that the expense is moderately standard for the business. It is not high and this will make it easier for the entrepreneurs to establish their business by making profit in the first six months itself. These factors makes it feasible for the restaurant to establish itself in the competitive market (Raab, Baloglu & Chen, 2018).

References

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Ahmad, Z., & Mason, C. (2014). Customer perceptions and behaviors of fast food restaurants: a case study of Radix Fried Chicken Sdn Bhd. Age, 1, 0-224.

Betancor, M. B., Sprague, M., Usher, S., Sayanova, O., Campbell, P. J., Napier, J. A., & Tocher, D. R. (2015). A nutritionally-enhanced oil from transgenic Camelina sativa effectively replaces fish oil as a source of eicosapentaenoic acid for fish. Scientific reports, 5, 8104.

Bogers, M., Zobel, A. K., Afuah, A., Almirall, E., Brunswicker, S., Dahlander, L., ... & Hagedoorn, J. (2017). The open innovation research landscape: Established perspectives and emerging themes across different levels of analysis. Industry and Innovation, 24(1), 8-40.

Bullough, A., & de Luque, M. S. (2015). Women’s participation in entrepreneurial and political leadership: The importance of culturally endorsed implicit leadership theories. Leadership, 11(1), 36-56.

Clemes, M. D., Mohi, Z., Li, X., & Hu, B. (2018). Synthesizing moderate upscale restaurant patrons’ dining experiences. Asia Pacific Journal of Marketing and Logistics, (just-accepted), 00-00.

Davidsson, P. (2015). Entrepreneurial opportunities and the entrepreneurship nexus: A re-conceptualization. Journal of Business Venturing, 30(5), 674-695.

Dees, J. G. (2017). 1 The Meaning of Social Entrepreneurship. In Case Studies in Social Entrepreneurship and Sustainability (pp. 34-42). Routledge.

Drucker, P. (2014). Innovation and entrepreneurship. Routledge.

Espíritu-Olmos, R., & Sastre-Castillo, M. A. (2015). Personality traits versus work values: Comparing psychological theories on entrepreneurial intention. Journal of Business Research, 68(7), 1595-1598.

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Gast, A., Vershinina, N., & Woldesenbet, K. (2016). Beyond the entrepreneurial ecosystem and mixed embeddedness approaches: A review and research agenda’. ISBE.

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Hamilton, H. A., Peverill, M. S., Mu?ller, D. B., & Brattebø, H. (2015). Assessment of food waste prevention and recycling strategies using a multilayer systems approach. Environmental science & technology, 49(24), 13937-13945.

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