Entrepreneurship is a form of business entity. It is a process which is launched and developed for executing a new business venture. Generally, entrepreneurship firm starts as a small venture and later on it converts into big organizations. The person who operates the entrepreneurship firm is known as the entrepreneur. This report will include various aspects of the strategic plan for the new business enterprise i.e. The Cape Town Restaurant. For the same purpose, entrepreneur of the restaurant has decided to develop a strategic cum business plan with the view to set up an effective image in the target market. The business plan of the firm will include several sets of strategies in order to attain the desired goals of the organization in an effective manner.
Major points which will be covered in this report are mission and vision of the operations through which it their aims will be defined clearly. Further, SWOT analysis, competitive analysis, KPIs and the like strategies will be discussed in this report. Organization and the potential growth strategies will also be evaluated in this report in order to increase the opportunities for the organization so that the motive of establishing the restaurant in Cape Town could be acquired appropriately. The last phase of the report will include other aspects of the business plan which will help the management and the entrepreneur of the restaurant to convert their idea into reality.
Description of the company
The purpose of establishing The Cape Town Restaurant is for providing delicious and quality dishes to the nationals of the target market. The specialty of this restaurant is that they serve numerous food dishes which are famous across the globe. Their menu range includes Asian, continental, Chinese and other famous food dishes. This will help the organization to attract the target audience along with accomplishing their goals. This is a new venture, thus, the management needs to adopt certain effective set of strategies which could be able to set up the restaurant effectively along with developing a strong position in the target market. Cape Town has been chosen as the target market by analysing the advantages of this location. In order to attain the organizational goals, management of the restaurant has decided to set up their outlet at the beach end in order to provide the target audience a beautiful view experience along with the sundry choices of food dishes from all over the globe.
Apart from providing delicious dishes to its target audience, organization also serves various beverages with the view to increase the customer satisfaction. In order to set up an effective position in the target market, it is essential to analyse the market conditions along with determining the internal and external environmental factors which plays crucial role while developing the strategies for the organization. The primary mission of the ‘The Cape Town Restaurant’ is providing authentic seafood and other delicious dishes with excellent customer service. In order to attain this mission, organization has adopted the market research activity which is essential for determining the needs of the target audience. The restaurant industry is customer-centric industry because consumers play crucial role in the success and failure of the entity. Thus, adaptation of the customer-centric approach is quite effective and it will extract desired outcomes for the restaurant which will be opened at the beach end in Cape Town (Abidi, et. al., 2015). Management has developed several long term objectives for the success of the organization in the target market:
Increasing sales: Management's initial long term objective in relation to the ‘The Cape Town Restaurant' is to attain minimum revenues of 6 lac South African Rands in the first six months of its establishment. Apart from this, a 25% hike is expected in the next three years of establishment of the restaurant which will help the organization to attain its desired goals and the objectives (Armelini & Armelini, 2011).
Competitive advantage: Apart from increasing the sales and the profitability, management has also made certain other long terms objectives which are essential for ascertaining the growth of the organization. With the help of unique business idea of ‘The Cape Town Restaurant’, it is expected that it will increase its customer base and the opportunity of acquiring the competitive advantage in the first few months in comparison with the existing restaurants (Armstrong, et. al., 2015).
Market share: As per the unique idea of the restaurant, management is expecting to cover at least 50% of the market share of the target market in order to attain the success and growth related objectives. Acquiring the market share of the target market is also required for attaining the objective of long term survival in the market. Attaining short term objectives are necessary for setting up the effective image but long term objectives should also be attained with the view to attain the sustainable growth in the market (Baker, 2014).
Brand image: After developing the position in the target market along with acquiring certain share of the market, it is required to develop a brand image so as to increase the value of the organization. The brand image helps the organization to increase its customer base and it also helps to make a unique position in the industry which will help to gain a sum of extra profits. To retain the brand image of the organization, various strategies need to be adopted in relation to the technological improvements, increasing customer satisfaction and the like. ‘The Cape Town Restaurant’ needs to adopt the change management in their workplace with the objective to gain desired outcomes (Bayne, Schepis & Purchase, 2017).
Employee and customer relations: This is another crucial long term objective for the restaurant industry in order to survive for a long period of time. Employee relations are necessary so as to maintain the same level of quality and to serve the customer in an appropriate manner. Along with this, the customer relationship is another important objective so as to attain the sustainable growth in the target market. As restaurant and food industry is implementing the customer-centric approach, thus, till the time, customer satisfaction will not be enhanced; organization will not be able to develop appropriate position in their perception (Bienkowski, et. al., 2010).
Change management: To build the good reputation in the industry along with gaining desired outcomes for a long period of time, management of the restaurant needs to adopt the change management in their workplace with the objective to progress as per the dynamic business requirements. Adopting change is a vital element which leads to enhancing the organizational performance so as to attain the desired outcomes along with meeting with the target audience’s needs (Boutabba, 2014).
Description of industry
Restaurants are mainly known for serving prepared foods on the table and for this they are also known as the retailers of prepared foods. Rivalry in the restaurant industry is intense same as in the case of retail stores' industry. In order to attain the competitive advantage, every restaurant modifies its range of menu along with determining the factors involved in the external business environment so that appropriate strategies could be developed to match up with those requirements. There are numerous factors which influence the competition amongst the restaurant companies. These factors are interior designating, location of the restaurant, food served, quality of the food, range of menu offered by them and the most important is the price charged by the restraints against their services. The Cape Town Restaurant has included all these factors in order to make a separate position in the restaurant industry of Cape Town (Bryman & Bell, 2015). With its unique idea of serving delicious dishes along with excellent customer service and with the exotic location of their outlet, organization will easily be able to mark a distinctive marketplace in the industry. Apart from this, there are sundry factors which affect the organizational performance such competition, external marketing conditions and the like (Wu & Chen, 2014).
It is a critical part which evaluates the strategies used by the competitors to produce the products and services. With the help of this evaluation, an organization could easily develop more effective and dynamic strategies through which competitive advantage could be attained along with differentiating their products and services with the competitors’. In the competitive analysis, primary competitors are being evaluated for the organization and their strengths and weaknesses are measured to estimate their position in the industry. Along with the strengths and weaknesses of the competitors, opportunities and threats are also identified with the help of this analysis. Outcomes originated form this evaluation; organization would be able to design their strategies and the structure of their frameworks in order to gain the competitive advantage in the target market (Cappelli, et. al., 2015).
The major elements which are included in the competitive analysis are:
- Definition of the industry
- Primary competitors
- Products and services delivered by them
- Market share of each competitor in the target market
- Their past and present strategies
- Their marketing and promotional strategies
- Mediums used by them to promote their products
- Strengths and weaknesses of competitors
- Primary threats from them
- Opportunities generated by their presence
Apart from this, there are sundry factors which need to be included in the competitive analysis as this helps the organization to develop more effective strategies through considering these elements. This will increase the organizational performance in comparison to its primary competitors which will result into competitive advantage (Chaffey, 2015).
The primary competitors for ‘The Cape Town Restaurant’ will be Miller’s Thumb, The Black Sheep Restaurant, Reverie Social Table and The Pot Luck Club (Yoon, Lee & Lee, 2017).These are the highly rated restaurants in the restaurant industry of Cape Town and they all are engaged in serving sundry dishes including seafood and unique beverages. In order to analyse increase the value of the ‘The Cape Town Restaurant’, it is required to conduct the competitive analysis along with the above mentioned factors.
Reverie Social Table is a vegetarian restaurant mainly known for providing social dining. Chef Patron Julia Hattingh welcomes the guests every evening to seat on the 18-seater table and enjoy five-course meal exclusively at their place along with selected wines. Their specialty is that guests are asked to put their phones away or in the non-disturbance mode so that they could interact with each other. It is a major attraction of the restaurant and their major target audience are people who love to enjoy food with wine and with a great company. Apart from these services and attraction, this restaurant is rated on the sixth position amongst 928 restaurants in Cape Town Central (Reverie Social Table, 2018).
The Pot Luck Club is a roof top restaurant and it was established in 2013 and in a short period of time, this is being rated on the 7th position amongst the 928 restaurants in Cape Town Central. This place is famous for its unique cuisine and it is also rated as the coolest place to hang out with relatives, friends, and loved ones. Irrespective of the peak and lean season, this restaurant is full pack and it has a seating capacity of approximately 120 guests at a time (The Pot Luck Club, 2018).
Miller’s Thumb is another best restaurant in Cape Town, it was established in 1995 just off the main thoroughfare between the Cape Town Waterfront and the aerial cable way. The ambience provided by the restaurant is unique along with the qualitative and delicious food dishes. This is majorly known for delivering seafood and amongst them; the fish dish is their specialty. This restaurant stands on the 4th position in the best restaurant category in Cape Town Central (Miller’s Thumb, 2018).
The Black Sheep Restaurant is running since 20 years in the UK and South Africa. This stands on the 8th position in the top rated restaurants in the Cape Town Central. Irrespective of the seasons, menu range of the restaurant serves fix dishes on daily basis following the tradition of The Black Sheep is always about making merry, with the best quality food and best service. No one leaves The Black Sheep hungry (The Black Sheep Restaurant, 2018).
Reviewing all these strengths and weaknesses of these competitors, ‘The Cape Town Restaurant' could be able to mold their strategies in such a way so that competitive advantage could be attained easily. With the help of these strategies, organization will be able to develop a distinct position in the target market along with its unique business idea of opening the outlet at the beach end. This will help the organization to attain its desired goals. The strategies which could be adopted for attaining the competitive advantage are cost leadership, product differentiation approach, and the like. These are two approaches which help the organization to increase its effectiveness in the target market along with setting up a competitive place in comparison to the existing restaurant companies (Chang, 2016).
Cost leadership approach describes a reduction of unnecessary costs in order to set the affordable prices for the finished goods. Restaurant companies which are known for serving prepared food could also adopt this strategy with the objective to lower down the prices of the dishes served within the restaurant for a certain period of time, mainly for the initial period from setting up the outlet. This approach will help the organization to attract large number of customers irrespective of their segments (Yu, et. al., 2016). With the large customer base, an organization would be able to accomplish its short term objectives of reaching the desired mark of sales and revenues with a certain margin of profitability. Along with this, cost leadership approach also leads to the application of lean principles which describes the waste management process and the approaches through which the waste generation could be minimised. With the help of lean principles, ‘The Cape Town Restaurant’ will be able to produce unique dishes at minimum prices in comparison to its primary comparators. This approach is capable enough to gain the leading position in the restaurant industry of Cape Town and it will also help the organization to increase their customer base and the market share at the same time (Compact, 2015).
The next approach which could be included in the functionality of the organization for attaining the competitive advantage as well as to acquire the desired targets is product differentiation approach. This approach describes that the organization needs to make their products and services unique and different from its competitors. With the help of this approach, ‘The Cape Town Restaurant’ will be able to define their unique image in the target market along with differentiating their menu range from the competitors (Dant, 2009). ‘The Cape Town Restaurant' is offering delicious food dishes along with attractive seafood dishes with a wide range of wines, alcoholic and non-alcoholic beverages to attract its target audience. Apart from this, the location of the restaurant is situated at the beach end which is an exotic location for a restaurant. This will increase both the customer satisfaction and their experience with the restaurant which will help the ‘The Cape Town Restaurant’ to stand on the separate position in relevance with its primary competitors (Cool & Schendel, 2010).
With the help of these two approaches, ‘The Cape Town Restaurant’ will easily be able to set up a unique position in the target market along with determining the opportunities through which competitive advantage would be gained easily and in an effective manner.
Identification of key success factors
Major Key success factors for any restaurant are food quality, location of the restaurant, service facilities, and customer satisfaction, sales incentive program, reliability and the like. Food service industry is expanding at a glance in all over the globe. All these factors exist in the strategies of the ‘The Cape Town Restaurant’. This will help the restaurant to develop a unique image in the restaurant industry of Cape Town. These factors are capable enough to increase the effectiveness of the organization along with determining the choices and preferences of the target audience (Das Nair & Dube, 2017).
Adopting these factors is essential to attain the growth related objectives while maintaining them in the strategies of the restaurant is essential to attain the sustainable growth objectives. It will also help the organization to survive for a long term in the target market along with being in the peak position in terms of customer satisfaction, food quality served and in other factors. Organization would be able to attain various objectives with the help of these factors and these factors are also necessary especially for an organization engaged in food service industry. ‘The Cape Town Restaurant’ has adopted the strategy under which food quality, wide range of menu, and attractive location has already been finalised through which they will be able to attain the success related objectives easily and effectively (Drummond, Ensor & Ashford, 2012). These factors will also play the role of unique selling propositions for the organization and this will lead the ‘The Cape Town Restaurant’ to stand on the peak position in relevance with its primary competitors in the target marketing. The existing restaurant companies and mainly its primary competitors have left huge opportunities for the new comers which could be adopted for attaining the success and growth. Beach end location of the restaurant, wide range of delicious food dishes offering along with sundry choices in alcoholic and non-alcoholic beverages. With the help of these unique selling propositions, ‘The Cape Town Restaurant’ will be able to develop distinctive image other than its competitors along with providing a unique and ambiguous sort of experience to the target audience. Apart from these factors, organization has also decided to adopt the cost leadership approach which will also act as the USPs for the ‘The Cape Town Restaurant'. Due to this approach, organization will be able to set the prices of the dishes served in the restraint at lower rates in comparison to the competitors which will lead the organization to attain large customer base and huge share in the target market (Farahmand, 2011).
The primary strength of ‘The Cape Town Restaurant’ is their food quality with ambiguous experience. Apart from this, the restaurant has sundry choices of vegetarian and non-vegetarian dishes along with high quality seafood which is served along with the precious wines and other beverages. Décor of the restaurant is another positive factor of the restaurant which will help them to attract large number of audience. All these factors together will help the guests to experience a memorable and fine dining with their loved ones (Fleisher & Bensoussan, 2015). The location of the restaurant is another strong point. It is located at the sea end which makes the restaurant an exotic location to feel peace and joy together. Along with these strengths, pricing strategies adopted by the ‘The Cape Town Restaurant’ could also be termed as strength. With the help of pricing strategies, organization will be able to target large customer segment in comparison to the other restaurants in their area. Other strengths of ‘The Cape Town Restaurant’ will be their promotional strategies as well as the measures adopted by them to enhance their customer base. Delicious and quality food dishes served by them along with the varieties of seafood make this restaurant unique and distinct from its competitors (Frynas & Mellahi, 2015).
Weaknesses of an organization provide an idea of the factors on which improvisation could be made. As ‘The Cape Town Restaurant’ is new to the market, hence, determining the weak factors from their functionalities is bit difficult. On the basis of assumptions, it can be evaluated that the staff could extract negative outcomes for the restaurant because they are person who directly interacts with the guests and renders services to them. Staff’s behaviour with the guests will be responsible for the success of the organization and for the failure as well. Apart from this, lack of training and development programs to the employees may also lead to extraction of negative outcomes for the restaurant (Gereffi & Luo, 2015). If the employees will not be trained as per the organizational requirements, attainment of the desired goals will not be possible. Other weaknesses for the restaurant may be bad relations with suppliers which will affect the menu range of organization. This will leads to loss of customer base along with decreasing the reliability and the brand image from the market. Apart from these weaknesses, certain weaknesses for the organization may be usage of traditional methods for accounting, for calculating stock rooms, and the like (Glowik & Smyczek, 2011).
‘The Cape Town Restaurant’ will be new to the target market, thus, it is required to adopt certain strategies through which organization could be able to uplift their performance in comparison with the existing restaurants in that area. In Cape Town, numerous opportunities are available for expanding the restaurant business along with acquiring satisfactory rate of profits. These opportunities are lack of restaurants with exotic locations such as situated at beach end, providing good quality delicious food dishes, etc. (Gruca & Rego, 2009). The existing top rated restaurants have left various opportunities for the new comers in the industry to work on those factors in order to gain success and growth related objectives. ‘The Cape Town Restaurant' has covered all these points in relation to acquiring their desired outcomes as well as to attain the adequate competitive advantage. Apart from this, organization could also conduct surveys in relation to analysing the target audience's needs and requirements. Providing them their desired dishes along with good quality will help the organization to attain the customer satisfaction objective which is a great factor to attain sustainable growth and development in the target market (Gunjal, 2017).
The major threat to ‘The Cape Town Restaurant' will be competing with the nearby restaurants and especially with them who are serving similar dishes and have approximately same dining experience. Apart from this, new comers in the same area will also affect the performance of the restaurant. Yet, there are few restaurants which are located the sea end and provide the exotic location experience to its customers with fine dining. Apart from these threats, promotional and advertisement strategies adopted by the competitors for decreasing the value of the organization will also generate negative outcomes for the organization. Thus, to uplift the organizational performance with the objective to increase the market share and the customer base, it is required to adopt certain advanced level strategies which could help the organization to enhance their performance in comparison to its competitors (Hail, Leuz & Wysocki, 2010).
Identification and evaluation of potential growth strategies
While introducing the business in the target market, companies come up with their separate strategies to attain their desired goals and the objectives to get succeeded. Though, there are numerous methods through which organization could be able to uplift their performance by implementing the growth strategy. Growth strategies are the practices which help the company to increase its base value, financial condition and the position in the target market (Hill, Jones & Schilling, 2014). Some of the growth strategies used by businesses are market penetration, product expansion, market expansion, acquisition, and diversification.
This is one of the growth strategies for business which is used for increasing the effectiveness and performance of the business in the target market. Market penetration strategy helps the organization to promote and market its existing products and services in the same market with the view to increase its demand. To perform this, it is necessary to determine the factors through which organization could improve the effectiveness of its existing products (Ho, 2014).This strategy will help the organization to improve the performance of their existing product category along with increasing the market share. This strategy also includes certain methods such as lowering the prices of the products in comparison to the competitors’ products prices. It is necessary to make some difference in the company’s products in comparison to its competitors’ products. This strategy will provide the opportunity for gaining competitive advantage in the target market along with determining the factors for acquiring separate position in the market. The usage of this strategy is generally in the existing market of the company and gradually organization move towards another market for the purpose of expansion and growth. ‘The Cape Town Restaurant’ could use this strategy after a certain period of time in order to maintain their effective image in the restaurant industry (Hollensen, 2015).
Market expansion is the strategy which is used for promoting or marketing company’s existing products in the new market. It is also known as the market development strategy. There are numerous reasons for which market expansion strategy is being adopted. The first amongst them is intense competition in the existing market and there is no such scope is left through which further growth and its related objectives could be attained. Thus, organization needs to find other markets with the view to increase its profits and the revenues. Without finding the new markets for the purpose of expansion, organization will not be able to increase its effectiveness as well as attainment of the desired objectives will also be bit difficult. Market expansion strategy is being used by almost all types of companies and it helps them to attain the results on the basis of their expectations. ‘The Cape Town Restaurant’ will be able to uplift its performance in the target market with the unique strategies adopted by them while for maintaining further growth, market expansion strategy will be implemented to expand its restaurant business in other parts of South Africa and in other parts of the overseas market (Hope & Fraser, 2013).
Product expansion strategy is implemented for increasing the effectiveness of the existing products. This process includes the inclusion of various value added features, unique elements, and the advance level measures through which the satisfaction obtained from the consumption of the product could be increased (Hoskisson, 2009). With the help of this strategy, organization could increase its sales and revenues in order to increase their market share. This strategy is also known as the product development and after application of this strategy; the company continues to sell its products in both existing markets and in the new markets with the motive of increasing the profitability and revenues. This strategy is also being applied for the adopting the technological changes as these factors play crucial role in order to increase the effectiveness of the organizational products. Due to diversified and dynamic nature of business environment, organization needs to adopt change in their functionalities with the motive to enhance their performance in the target market (Jie, Parton & Chan, 2015).
Diversification strategy is important aspect for attaining the growth related objectives and under this strategy, existing organization produces new products on the basis of target audiences’ requirements and sells them into new markets. This strategy is bit risky as compared to other strategies of growth. Thus, before implementing this into the marketplace, it is required to conduct market research activities for analysing the requirement of the target audience along with the marking environmental factors of the new market (Joshi, 2009). New produced products should be capable enough to fulfil the desires and needs of the potential consumers so that appropriate goals could be attained easily. Diversification is a part of business and it should be adopted by every business entity for increasing the choices for the target audience along with fulfilling their needs in terms of attaining the desired goals and the objectives. Diversification strategy could be adopted by the ‘The Cape Town Restaurant’ with the view to expand its business in the other parts of the country along with ascertaining the factors for expanding the business in the overseas market (Kim & Hyun, 2011).
Acquisition is also a part of the growth strategies in business. In acquisition, one company purchases other in order to enhance its operations and to expand its market share. Small companies adopt this strategy to increase their product development as well as with the objective of entering into new markets. While big companies do for enhancing their operations, enhancing their market share and to increase their profitability and the revenues (Kleinman & Lin, 2013). The major reason behind acquisition is to take advantage of other company’s goodwill and before implementing this strategy, organization should be able to determine its objectives in relevance with the expansion as significant amount of investment is required for this strategy. This strategy could also be used by ‘The Cape Town Restaurant' with the objective of entering the target market. With the help of market research activities, organization could analyse the top rated restaurants with their unique specialities in order to set up an effective position (Lam & Harker, 2015).
With the help of above growth strategies, ‘The Cape Town Restaurant’ will be able to uplift its performance in the target market along with ascertaining the factors through which the desired outcomes could be acquired easily (Lee, Barker & Mouasher, 2013).
Business plan is the function which is made up of sundry strategies which are implemented within the organizational workplace for accomplishing the operations. It is generally made for start-ups, new business ventures as well as for the existing business organizations to expand their business in the overseas market (Lu & Liu, 2015). Business plan includes the business objectives, mission, vision, tools which will be used for increasing the performance of the organization. Apart from this, there are numerous elements which are included in an effective business plan such as market analysis, management of the organization, strategies used for uplifting and managing sales, evaluating and fulfilling funds’ requirements and the financial projections which will provide an estimate of the business’ performance for the respective year. Apart from this, monitoring and control measures could also be included in the business plan with the objective of determining the errors left in the above activities and remove them within certain period of time so that organizational performance could not be affected (Lima, 2014).
Description: The Cape Town Restaurant is being established with the motive of providing delicious and quality food dishes to the South Africans. The specialty of this restaurant is that they serve numerous food dishes which are famous across the globe. Their menu range includes Asian, continental, Spanish, Chinese and other famous food dishes which will be served along with unique beverages. This will help the organization to attract the target audience along with accomplishing their goals (McKeever, 2016). This is a new venture, thus, the management needs to adopt certain effective set of strategies which could be able to set up the restaurant effectively along with developing a strong position in the target market. The first place which has been finalised with the view to establish the restaurant in Cape Town and the major advantage of this location is the involvement of tourists, beautiful beach side views, etc. In order to attain the organizational goals, management of the restaurant has decided to set up their outlet at the beach end in order to provide the target audience a beautiful view experience along with the sundry choices of food dishes from all over the globe (Mishra, 2017).
Objectives: Primary long term objectives for the restaurant are increasing revenues and profitability, developing brand image, acquiring market share, gaining competitive advantage and adopting change management for uplifting the performance of the organization.
Management's initial long term objective in relation to the ‘The Cape Town Restaurant' is to attain minimum revenues of 6 lac South African Rands in the first six months of its establishment. Apart from this, a 25% hike is expected in the next three years of establishment of the restaurant which will help the organization to attain its desired goals and the objectives (Myerson, 2016).
As per the unique idea of the restaurant, management is expecting to cover at least 50% of the market share of the target market in order to attain the success and growth related objectives. Acquiring the market share of the target market is also required for attaining the objective of long term survival in the market. Attaining short term objectives are necessary for setting up the effective image but long term objectives should also be attained with the view to attain the sustainable growth in the market (Nunan & Di Domenico, 2013).
Mission and vision: The primary mission of the ‘The Cape Town Restaurant' is providing authentic seafood and other delicious dishes with excellent customer service. In order to attain this mission, organization has adopted the market research activity which is essential for determining the needs of the target audience. Restaurant industry is customer centric industry because consumers play crucial role in the success and failure of the entity (Pardalos & Tsitsiringos, 2013).Market Analysis: In this step, target market’s marketing conditions, competitive level, and other factors are being evaluated. With the help of outcomes originated from market analysis, restaurant will be able to develop appropriate strategies to overcome from the barriers involved in the market conditions as well as to increase the efficiency for gaining competitive advantage. As this market analysis is being conducted for a restaurant business, thus, it is required to analyse the tastes, preferences, and choices of the target audience, competitor's presence and their strategies and the impact of external business environment needs to be evaluated (Piekkari, Welch & Welch, 2014).
Management: It is a department in the organization which plays crucial role in terms of managing all the operations of the organization. Apart from this, management also focuses over adaptation of required strategies through which desired goals could be attained. Management of the organization must be effective because managers will trade on behalf of the company in the physical market. Thus, they should be capable enough to convey organizational information to the outsiders through which opportunities could be raised in order to meet with the objectives of the organization (Renton, et. al., 2015).
Sales Strategies: It is necessary for the new business organization to adopt certain effective strategies which could be proven as the essential element for increasing the sales. In order to increase the demand for the restaurant and their products and services, organization is required to adopt certain effective promotional strategies for spreading awareness amongst the target audience. ‘The Cape Town Restaurant’ will adopt the mixture of digital and print medium of advertisement and promotion. With the help of this, organization will be able to promote and market its restaurant in the target market effectively along with uplifting their sales and revenues (Scarborough, 2015).
Funding Requirements: For executing any business, it is required to arrange sufficing funds in order to allocate them to the respective departments of the organization. For arranging the funds for setting up the new business venture, an effective business plan with appropriate and realistic objective is required. This will help the organization to attract the investors for fulfilling the business' requirements in relation to funds. After arranging the funds, management needs to allocate the funds on the basis of departmental requirements. This will help the organization to perform their operations in an appropriate manner (Scholes, 2015).
Financial Projections: This is the last section of business plan which includes financial projections. This section also includes making reserves for meeting up with the uncertain expenses and for expanding the business in near future. Projections related to funds are based on the factors of growth and market trends. This also includes the information regarding the sales strategies, realistic objectives and on the basis of organizational current position (Scott & Walker, 2017).
Monitoring and control: This part of the business plan is optional as it is a rectification process under which all the above functionalities to be included in the business plan are analysed. The major motive of this analysis is to detect the errors and mistakes in different sections of the business plan. If any error or mistake is found, then appropriate measures need to be applied in order to remove from the steps for attaining the expected outcomes (Stahl & Tung, 2015).
From the aforesaid information, it can be concluded that the business plan is an essential element for the success of an organization. With the help of this factor, organization could be able to attract the investors and fulfils its financial requirements for executing the operations of the organization. In this report, business plan is made up in relation to the ‘The Cape Town Restaurant'. It is a new business idea which will be opened in Cape Town, South Africa with the motive of accomplishing its desired goals. Before setting up the restaurant in the target market, certain marketing activities have been performed for evaluating the marketing conditions of the target market and for evaluating the scope of restaurant in that area. The idea of this restaurant is unique and it will be opened at the sea end at beach side which will provide an exotic location to the restaurant. With the exotic location, restaurant will serve delicious dishes along with the unique dining experience. This will make the restaurant distinct from the existing restaurants located in the target market. For making this business idea an effective reality, various functions have been executed in this report. The first phase of the report concluded the objectives, mission, and vision of the business idea. Further, it report includes competitive and industry analysis with the motive of analysing the marketing conditions and the market share acquired by its primary competitors. The next part of the report includes SWOT analysis, identification, and evaluation of potential growth strategies through which organizational desired objectives would be attained.
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