The different types of entrepreneurial opportunities which are generally available to select from are Buying of Franchise, Licensing and Start-Up (Khera, 2018).
Selection of Entrepreneurial Opportunity
The entrepreneurial opportunity that could be selected in order to gain market dominance and superiority is a Start-up. This mode of entrepreneurship provides an excellent learning curve for entrepreneurs to understand the market needs (Feld & Wise, 2017).
Selection of Business Partner
The choice of the selection of business partner is very important in ensuring longevity of a new start-up organisation. In this case, a partner would be suggested, which would help in accumulating added funds.
Selection of product or service in the business
The new start-up company that has been selected to open in the Saudi Arabia market would serve fried chicken products to local and international tourists.
Legal Status of the Business
The legal status or form of the new start-up business would be Partnership. The selection of this mode is due to the presence of two partners in the organisation who have mutually agreed to share both profit and loss of the business (Fontana, 2010).
Identification of strong points and limitations
Strong point - Strong Communication and Customer Handling Skills
Limitations - Poor Time Management and Administration Skills
Strong points and limitations of selected business opportunity
The strong points and limitations of starting up of business are flexibility to set up working hours & work environment and being your own boss.
The limitations are presence of competitors in the market and lack of supplier base.
Linkages of business idea to strengths and weaknesses
The selection of the business idea of staring up of new business can be considered a weakness due to poor administration skills. However, the decision to start a company associated directly with customers is strength because of strong communication and customer handling skills (Kearns, 2018).
The name of the company is Fried Chicken Tub. It specialises in selling fried chicken of different delicacies and taste, to be opened in the city of Jeddah, with the slogan “Chicken Friends Forever”. The mission is to provide high quality fried chicken to people in the country, and to local and international tourists. The vision is of improving profit and market share in Saudi Arabia.
Elements of Marketing to Entrepreneurship
- The new product would be fried chicken, with its standard of quality, services, cleanliness and values, served to the local and international tourists of Saudi Arabian market (in Jeddah)
- Also, innovative product line could also act as competitive advantage for the brand
- Target customers - within the age group of 15-50 years, from middle economic class, who prefer fast food
- Market size - Medium, since the company aims to open 3 stores in the whole of Jeddah, within the next 1 year
- Competitors in the market include KFC, specialising in selling similar delicacies. Market would be majorly between these two rival firms.
- Customers would be reached through social media advertisements and leaflets. Also, word-of-mouth marketing would be implemented. Product pricing would be kept at an affordable range for the middle class people.
Elements of Management to Entrepreneurship
The team and respective duties of each:
- Human Resource Manager: hire and train office staffs and ensure high level of customer service is provided to the customers. Possess an experience of more than 1.5 years (Petuskiene & Glinskiene, 2011).
- Team Leader: All operations on the store are effectively done within time. Should possess a minimum 1-year experience
- Store Staffs should have a prior experience in handling customers.
- Delivery-staffs should have experience of the roads of Jeddah and should own bikes (Samuelson, 2017).
Key milestones are scheduled to be achieved within 1 year. The company targets business operations growth in the city of Jeddah through opening up new stores within that period.
The various suppliers to the business are
- Poultry farms in Jeddah.
- Organic and non-organic vegetable farms located in and outside of Jeddah.
- Dairy farms.
Elements of Finance to Entrepreneurship
Funds will be used for brand promotion purposes. The organisation would ensure that added investments are made for obtaining low calorie raw materials thus ensuring fried but healthy chicken. Alongside, competing with strong players asks for brand promotion and thus, investment. This would help in developing brand awareness and gaining maximum customer attention (Ied, 2016). The major focus would be on maintaining high assets and minimum liabilities in the balance sheet. There are four potential exit strategies- merger & acquisition (M&A), initial public offering (IPO), liquidation & close and make it a cash cow. Make it cash cow would be most suitable for this company since it would offer fast food but that would be healthy for the consumers. Potential returns for the investors are high profit, dividend and shareholder equity.
Feld, B., & Wise, S. (2017). Startup Opportunities: Know When to Quit Your Day Job (2 ed.). London: John Wiley & Sons.
Fontana, P. K. (2010). Choosing the Right Legal Form of Business: The Complete Guide to Becoming a Sole Proprietor, Partnership, LLC, Or Corporation. Florida: Atlantic Publishing Company.
Ied. (2016). The five key elements of a successful investment. Retrieved September 07, 2018, from ied.eu: https://ied.eu/five-key-elements-successful/
Kearns, S. (2018). 5 Tips for Communicating Well (and Increasing Sales). Retrieved September 03, 2018, from quickbooks.intuit.com: https://quickbooks.intuit.com/r/marketing/5-tips-for-communicating-well-and-increasing-sales/
Khera, R. (2018). 5 Types of Business Opportunities for Entrepreneurs. Retrieved September 03, 2018, from morebusiness.com: https://www.morebusiness.com/business-opportunity-leads/
Petuskiene, E., & Glinskiene, R. (2011). Entrepreneurship as the Basic Element for the Successful Employment of Benchmarking and Business Innovations. Engineering Economics, 22(1).
Samuelson, C. (2017). The 5 Essential Elements of an Efficient Business No Matter What Your Business Is. Retrieved September 07, 2018, from entrepreneur.com: https://www.entrepreneur.com/article/290490