Fast food restaurants offer a range of products to people especially for lunch and dinner time. Emphasis on product quality has reshaped the attitude of people towards food eating habits now days. Offering quality food items at reasonable price requires reducing the operational cost and forces many businesses to have greater financial ability to differentiate their position from competitors in long run. Many business entities have been serving customers in fast food industry, capitalizing their value on the basis of high quality food products. Many restaurants charge high prices on products and adopt differentiation strategy to distinguish their brand and have higher profitability indexes.
Burger Mania will start its operations from New York, and will offer variety range of burgers to customers through high quality and low pricing mechanism. This will provide sustainability to business in long run due to creating competition in market by targeting middle and lower upper class especially students, residents, and employees. This class likes to have hygienically processed fast food at reasonable prices and therefore will enable Burger Mania to capture market share and establish its brand value in less time. Considering this value pricing strategy will be used that supports more for less value proposition. A new variant as crispy burger will be launched that will give sustainable competitive edge. More emphasis will be placed on word of mouth communication to spread positive perception about business. To strengthen brand equity and customer loyalty special promotion benefits will be offered to customers that include free deals and prizes. Capital will be raised through investment as owner equity and through debt financing as demand finance for five years to reduce financial burden on investor at start-up.
New York has been a wonderful market for every business to grow. Especially food, which defines the habit of people in terms of how they prefer to eat, is more reluctant to any new technological change. People now prefer healthy, clean and hygienic food and favor eating in a pollutant free environment. Due to global downturn people have become more price conscious that has forced every business to cut down their operational cost in order to compete in the market. However, fast food businesses more or less solely differentiate itself either on the prices or on quality basis.
BURGER MANIA BUSINESS OVERVIEW
People are becoming more concern about their health day by day. Their preference and likeness level is increasing with more concern on quality food and healthy diet importance on their health and life. Increase in quality of food products result in increased prices of products that somehow restrict the access of people to food restaurant places (Gilligan Wilson, 2003). Therefore, seeing this trend we would like to open a burger restaurant as Burger Mania that would address the potential pitfalls of business success in rapidly changing business environment.
Burger Mania is a place for all those people who want quality food at reasonable prices. Other burger bars are either too expensive or are not maintaining their hygienic standards. So in order to succeed in less time our business would be emphasizing on offering quality burgers at reasonable prices. Variants of burger will cater the need of the market as per their requirement. Deluxe environment inside the business premises will encourage people to shift themselves towards Burger Mania whenever they feel hunger. Main focus of business is to increase the revenue by catering the peoples increasing demand for dine-in. This approach will provide opportunity to sustain in market for longer time. Burger Mania will be offering variety range of burgers to its customers with emphasis on providing the worth of every penny customer spent. We will aim at providing finest customer service enhancing the joy, excitement and fun in relation to lifestyle.
Vision
Our vision is to be the valued burger restaurant associated with lifestyle and trend of people. We aim at providing complete satisfaction to customers through our food products that help them categorize us as an entity has a direct link with their life.
Mission
Our main objective is to provide quality food products to customers at reasonable price. Our mission is to succeed in industry and lead the industry as market leader with five years. Our mission statement is
Achieve the success in the fast food industry by offering quality food products for valued customers.
LOCATION
Burger Mania will start its business operation in New York City, USA with its outlets located in heavily populated town areas whereas office will be situated in Manhattan area. New York City has an estimated population of 20 million (2009 estimate). It is one of the most populated cities of USA that has approx. 79 people who hold high school degree (USCB, 2010). There are many educational institutes and business organizations in the city creating a vast target population for our business to attract through different strategies. This location provides an advantage of building business and establish brand name in less time. New York City has numerous benefits for business growth in long run due to comparatively higher per capita income of people that increases the customer spending and subsequently the revenues of business entities (Hamlin Lyons, 2003).
MARKETING MIX
We aim at providing higher return to the customers for each of their pennies they spend at our restaurant. Seeing the market competition and brand building strategy we will go for more for less value proposition scheme. This will help establish our brand as a quality food brand that is more concerned with customers health. Offering higher value at low price with great customer service will help to develop long term relationship and increase customer loyalty (Ferrell, 2008).
Product
We are launching a burger restaurant as Burger Mania where people can dine-in or take away. We are offering Beef Burger, Chicken Burger, and Crispy Burger, with variants as small, medium size, value bundle package deal, own made sauce, and drinks with fries to customers. Our cleanliness and quality of food will create faithful customers, who otherwise would not eat in an open air or an un-hygienic restaurant (Ferrell, 2008).
Price
We will launch our product in the market focusing on Penetration Pricing initially. But as soon we start capturing the market, products will be priced on the basis of Value Pricing. However in long run, on the success of the business we can go for Perceived value pricing for targeting niche market segment.
Place
We are offering our products to the people of New York in Manhattan Area hence business is set up in the same area as it will be convenient for all customers to come on our restaurant.
BRANDING
Our uniqueness of service and quality of business is presented to the customers as
BURGER MANIA- all you care to eat that values product quality and customer care. This would make people to associate it as a customer satisfaction offering brand. The name emphasize that the place gives pleasure to customer and provides satisfaction to his mind while eating delicious quality food. People will never feel that they are wasting their time and money at odds they will maximize their money value by eating burgers at Burger Mania.
Positioning Statement
Care of customer is our highest priority so we offer best quality that you desire.
MARKET SEGMENTATION STRATEGY
Burger Mania is basically attracting people who are becoming price conscious but desire to have access to quality food. Therefore, target market for Burger Mania has been characterized on the basis of following characteristics
Mass Market Segmentation
Since fast food industry is developing by constantly emphasizing on quality and health concerns therefore, we will go for mass market segmentation to establish our brand name in the mind of everyone. We will solely be providing a range of burgers in initial start-up with prime concern on quality and offering low pricing burger products hence we will go for cost-leadership strategy to meet the objectives. Since we are mainly targeting people who are price conscious especially students, residents, and office workers due to sufficient income level to live peacefully mass market segmentation will help us to build business in longer run by targeting many people to distribute the fixed cost over large number of units that decreases the product cost (Baron Shane, 2007).
Geographic Segmentation
Burger Mania operations will be based in New York in start-up years, therefore mainly would be targeting middle and lower upper class living in New York. On achievement of goals and attaining financial stability Burger Mania will expand its operations in other cities of USA also. Seeing the prospective opportunities we aim at targeting Los Angeles, California, Florida, Chicago, and Miami with premium products. Business operations will be expanded in urban cities on the basis of market value development for Burger Mania.
Demographic segmentation
Demographically, target market will be segmented on the basis of age, and income level. Since male and female both are providing their services in New York culture and both have financial controlling powers therefore, demographically both genders are classified as target market.
Age 15years or more
Income level At least 10,000 annually
Gender Male and female both
Psychographic segmentation
Burger Mania is a restaurant for people who are price conscious but also are obsessed with hygiene concern. We aim at targeting people who pay attention to quality food and its effect on health. Complex lifestyle of people in New York due to busy schedule it makes it easy to target them on the basis of psychographic segmentation by highlighting their mental and cognitive components that influence their behavior (Barnes et al., 2001).
Behavioral Segmentation
Behavioral segmentation will be done on following basis for defining target market.
Usage rate People who like eat burger for more than once in a month
User Status People who want quality food product at affordable price
Spending Pattern People who like to visit restaurants with friends or family
SHAPE MERGEFORMAT
TARGET MARKET SEGMENT STRATEGY
Our target mainly comprises of three different market movers which include residents, student studying in different educational institutes and people working in different organizations.
Residents
These people will be targeted through advertising, special promotion and word of mouth communication.
Students
This market segment will be targeted through special offers and word of mouth communication.
Office Workers Employees
This market segment will be targeted through advertising, word of mouth communication and offering them affordable payment plans for the products they consume.
COMPETITION OVERVIEW
Based on the location the market is not is not fully captive by existing competitors and hence this provides us an opportunity to avail the not attracted market segment response and grow our business. There are a lot of burger restaurants on every nook and corner of New York that are focusing on their respective niches and hence applying diverse marketing strategies. However, only a few of them have successfully built their market share that has toughened the competition. The main competitors include Burger Joint, A Js Burger, Black Iron Burger Shop, MARK, The Prime Burger, Shake Shack, Corner Bistro, Pauls Place, and Thunder Jacksons Burger (Carsrud Brannback, 2007 Abrams, 2003 Pahl Richter, 2009). As the selected area is becoming more attractive due to prospective business opportunities, this gives raise to more competitors inside the premises. Although these competitors are offering burger as one of their menu product but average class customers are not totally satisfying with product quality due to its high prices.
COMPETITIVE ADVANTAGE
We will offer a unique crispy burger variant and own made sauce with our burgers, ingredient plan and manufacturing of which will be kept secret so no one else can copy it easily. Therefore, people will visit our outlet due to its likeness. We will also differentiate ourselves from our competitors on the basis of quality and service offerings. On the basis of fresh taste and lowestcompetitive pricing our business will through out the small players of the market and in long run business can achieve leading position. This will enable the Burger Mania to gain sustainable competitive advantage over competitors in long run
MARKETING STRATEGY
Companies that opt for long term marketing strategies establish strong brand names whereas short term marketing strategies only support the operational purposes for a shorter time (Butler, 2000). Special budget for marketing has been allocated each year to convince people to generate more customer traffic. Main purpose is to build customer loyalty in less time at minimum cost. Following promotion channels will be utilized
Advertisement
This is the most effective medium to influence and effect cognitive capabilities of people to derive their attention towards brand (Hoekstra et al. 1999). Commercial advertisements will be run on local media channel to increase customer awareness. Channels with high viewer frequency in middle and lower upper class will be used. Print ads in food magazines and local newspaper will be published on weeklymonthly basis. Advertisements on bill boards will be run to have effective impact on people about our business. Consideration will be placed on keeping the message relatively simple and effective as it increase effectiveness of communication.
Word of Mouth
This is the cheapest way to spread the business information to potential customers. As we are focusing on minimizing operational cost to offer competitive prices of products to customers, therefore we would be emphasizing on positive word of mouth for promotion and awareness.
Sales Promotion
Sales promotion proves effective when market is concerned with price and other psychological factors to derive their attention (Lam et al. 2004). Since our prime target market mainly possesses these characteristics, hence we would utilize sales promotion channel to increase customer flow towards business. This would include special discounts, package deals to regular customers and offering them gifts and hampers so that customer loyalty can be build up. Apart from that a big bumper prize of more than US1000 will be given through lucky draw. For these purpose a specific budget for marketing and promotion will be allocated.
SWOT ANALYSIS
Environment forces shape market opportunities, pose threats and affect the companys ability to serve customers and develop lasting relationship with them (Pahl Richter, 2009). Salient features of SWOT Analysis of Burger Mania are highlighted below
Strengths
We are offering quality products at low prices that will help gain market share in low time due to rapid brand value development.
Burger Mania products are of good quality seeing the attitude of people towards hygiene and impact on health which will help distinguish our brand from small competitors
We are offering dine-in and take away facility to all customers, and credit facility to selective customers
Weaknesses
Due to low penetration pricing, contribution margin declines and hence duration for breakeven will increase for Burger Mania
Weak brand image (being a new entrant) will require heavy investment in marketing and promotion in short run
Opportunities
Customers can be easily target on the basis of their demographic characteristics
We can offer more products in different product category such as broast, pizza, etc.
We can enter in different urban cities of USA to expand our operations and business value
New premium sub-brand can be launched for target nicheelite class market segment
Threats
Competitors offers may affect the customer strength in Burger Mania outlet
New competitors may enter in the market, hence market share for each would decline subsequently decline in sales may occur.
Existing competitors can reduce their prices very low and can prefer to go for incurring loss in short run due to heavy financial stability which can create hurdle in our business establishment
HUMAN RESOURCE MANAGEMENT
Business HR requirement is as per the given table and all employees will get bonus of 10 of annual income. Initially, our workforce level will be low but sooner with the opening of new outlet branches workforce requirement will increase. The given table defines the business requirement at the initial start-up phase.
DescriptionQuantitySalary Per MonthAnnual IncrementSupervisor152510Chef24258Waiter43257
RISK ANALYSIS
In considering the unexpected events that may shake and harm the business image, protective contingency planning is essential so that it can be implemented when it appears that business is not in a feasible situation. For Burger Mania some risks require appropriate contingency planning.
RISKLEVELCONSEQUENCERISK IMPACTBACK UP PLANFood poisoning
Stomach disorder2816Affected customer will be given next five free deals so that his perception about the product quality remains positiveShortage of raw material from market due to unexpected event2714In such case local vendors services will be utilized if required as for proactive planning 5 of monthly sales stock is being maintained Gas shortage11010LPG cylinders will be rented for that particular day
FINANCING
Business financing plays a very important role in supporting business in initial years while increasing financial stability in proceeding years. This determines the ability of business to grow and sustain in the market. It is necessary to properly allocate the funds to keep the smooth flow of business operations as ineffective placement of funds may result in significant loss on business due to heavy debt charges (Crudele, 2010). Two modes of capital raise will be used, which include investment as equity and debt financing as Demand Finance for five years. Demand Finance gives flexibility to business holders as settling of principal amount is done at term maturity only financing charges need to be paid annually (Timmons, 2004). By this we can have funds availability for longer period. At business start-up, main funding is placed in purchases of fixed assets considering this, loan of 200,000 will be taken as Demand Finance having 3.75 p.a. interest for 5 years maturity remaining funds requirement will be supported as investment in owners equity.
CONCLUSION
Burger Mania will be offering variety of burgers to medium class and lower upper segment at value pricing. Competitors are offering the high quality products while charging high prices in order to compete with rival groups, Burger Mania will emphasize on distinct its position as concern on quality and price both. People trend towards hygiene food has created a pressure on new market entrants to focus on unique perspective for competing also requiring cutting in operational cost to maintain profitability while charging low price for same high quality food.
Burger Mania will start its operations from New York, and will offer variety range of burgers to customers through high quality and low pricing mechanism. This will provide sustainability to business in long run due to creating competition in market by targeting middle and lower upper class especially students, residents, and employees. This class likes to have hygienically processed fast food at reasonable prices and therefore will enable Burger Mania to capture market share and establish its brand value in less time. Considering this value pricing strategy will be used that supports more for less value proposition. A new variant as crispy burger will be launched that will give sustainable competitive edge. More emphasis will be placed on word of mouth communication to spread positive perception about business. To strengthen brand equity and customer loyalty special promotion benefits will be offered to customers that include free deals and prizes. Capital will be raised through investment as owner equity and through debt financing as demand finance for five years to reduce financial burden on investor at start-up.
New York has been a wonderful market for every business to grow. Especially food, which defines the habit of people in terms of how they prefer to eat, is more reluctant to any new technological change. People now prefer healthy, clean and hygienic food and favor eating in a pollutant free environment. Due to global downturn people have become more price conscious that has forced every business to cut down their operational cost in order to compete in the market. However, fast food businesses more or less solely differentiate itself either on the prices or on quality basis.
BURGER MANIA BUSINESS OVERVIEW
People are becoming more concern about their health day by day. Their preference and likeness level is increasing with more concern on quality food and healthy diet importance on their health and life. Increase in quality of food products result in increased prices of products that somehow restrict the access of people to food restaurant places (Gilligan Wilson, 2003). Therefore, seeing this trend we would like to open a burger restaurant as Burger Mania that would address the potential pitfalls of business success in rapidly changing business environment.
Burger Mania is a place for all those people who want quality food at reasonable prices. Other burger bars are either too expensive or are not maintaining their hygienic standards. So in order to succeed in less time our business would be emphasizing on offering quality burgers at reasonable prices. Variants of burger will cater the need of the market as per their requirement. Deluxe environment inside the business premises will encourage people to shift themselves towards Burger Mania whenever they feel hunger. Main focus of business is to increase the revenue by catering the peoples increasing demand for dine-in. This approach will provide opportunity to sustain in market for longer time. Burger Mania will be offering variety range of burgers to its customers with emphasis on providing the worth of every penny customer spent. We will aim at providing finest customer service enhancing the joy, excitement and fun in relation to lifestyle.
Vision
Our vision is to be the valued burger restaurant associated with lifestyle and trend of people. We aim at providing complete satisfaction to customers through our food products that help them categorize us as an entity has a direct link with their life.
Mission
Our main objective is to provide quality food products to customers at reasonable price. Our mission is to succeed in industry and lead the industry as market leader with five years. Our mission statement is
Achieve the success in the fast food industry by offering quality food products for valued customers.
LOCATION
Burger Mania will start its business operation in New York City, USA with its outlets located in heavily populated town areas whereas office will be situated in Manhattan area. New York City has an estimated population of 20 million (2009 estimate). It is one of the most populated cities of USA that has approx. 79 people who hold high school degree (USCB, 2010). There are many educational institutes and business organizations in the city creating a vast target population for our business to attract through different strategies. This location provides an advantage of building business and establish brand name in less time. New York City has numerous benefits for business growth in long run due to comparatively higher per capita income of people that increases the customer spending and subsequently the revenues of business entities (Hamlin Lyons, 2003).
MARKETING MIX
We aim at providing higher return to the customers for each of their pennies they spend at our restaurant. Seeing the market competition and brand building strategy we will go for more for less value proposition scheme. This will help establish our brand as a quality food brand that is more concerned with customers health. Offering higher value at low price with great customer service will help to develop long term relationship and increase customer loyalty (Ferrell, 2008).
Product
We are launching a burger restaurant as Burger Mania where people can dine-in or take away. We are offering Beef Burger, Chicken Burger, and Crispy Burger, with variants as small, medium size, value bundle package deal, own made sauce, and drinks with fries to customers. Our cleanliness and quality of food will create faithful customers, who otherwise would not eat in an open air or an un-hygienic restaurant (Ferrell, 2008).
Price
We will launch our product in the market focusing on Penetration Pricing initially. But as soon we start capturing the market, products will be priced on the basis of Value Pricing. However in long run, on the success of the business we can go for Perceived value pricing for targeting niche market segment.
Place
We are offering our products to the people of New York in Manhattan Area hence business is set up in the same area as it will be convenient for all customers to come on our restaurant.
BRANDING
Our uniqueness of service and quality of business is presented to the customers as
BURGER MANIA- all you care to eat that values product quality and customer care. This would make people to associate it as a customer satisfaction offering brand. The name emphasize that the place gives pleasure to customer and provides satisfaction to his mind while eating delicious quality food. People will never feel that they are wasting their time and money at odds they will maximize their money value by eating burgers at Burger Mania.
Positioning Statement
Care of customer is our highest priority so we offer best quality that you desire.
MARKET SEGMENTATION STRATEGY
Burger Mania is basically attracting people who are becoming price conscious but desire to have access to quality food. Therefore, target market for Burger Mania has been characterized on the basis of following characteristics
Mass Market Segmentation
Since fast food industry is developing by constantly emphasizing on quality and health concerns therefore, we will go for mass market segmentation to establish our brand name in the mind of everyone. We will solely be providing a range of burgers in initial start-up with prime concern on quality and offering low pricing burger products hence we will go for cost-leadership strategy to meet the objectives. Since we are mainly targeting people who are price conscious especially students, residents, and office workers due to sufficient income level to live peacefully mass market segmentation will help us to build business in longer run by targeting many people to distribute the fixed cost over large number of units that decreases the product cost (Baron Shane, 2007).
Geographic Segmentation
Burger Mania operations will be based in New York in start-up years, therefore mainly would be targeting middle and lower upper class living in New York. On achievement of goals and attaining financial stability Burger Mania will expand its operations in other cities of USA also. Seeing the prospective opportunities we aim at targeting Los Angeles, California, Florida, Chicago, and Miami with premium products. Business operations will be expanded in urban cities on the basis of market value development for Burger Mania.
Demographic segmentation
Demographically, target market will be segmented on the basis of age, and income level. Since male and female both are providing their services in New York culture and both have financial controlling powers therefore, demographically both genders are classified as target market.
Age 15years or more
Income level At least 10,000 annually
Gender Male and female both
Psychographic segmentation
Burger Mania is a restaurant for people who are price conscious but also are obsessed with hygiene concern. We aim at targeting people who pay attention to quality food and its effect on health. Complex lifestyle of people in New York due to busy schedule it makes it easy to target them on the basis of psychographic segmentation by highlighting their mental and cognitive components that influence their behavior (Barnes et al., 2001).
Behavioral Segmentation
Behavioral segmentation will be done on following basis for defining target market.
Usage rate People who like eat burger for more than once in a month
User Status People who want quality food product at affordable price
Spending Pattern People who like to visit restaurants with friends or family
SHAPE MERGEFORMAT
TARGET MARKET SEGMENT STRATEGY
Our target mainly comprises of three different market movers which include residents, student studying in different educational institutes and people working in different organizations.
Residents
These people will be targeted through advertising, special promotion and word of mouth communication.
Students
This market segment will be targeted through special offers and word of mouth communication.
Office Workers Employees
This market segment will be targeted through advertising, word of mouth communication and offering them affordable payment plans for the products they consume.
COMPETITION OVERVIEW
Based on the location the market is not is not fully captive by existing competitors and hence this provides us an opportunity to avail the not attracted market segment response and grow our business. There are a lot of burger restaurants on every nook and corner of New York that are focusing on their respective niches and hence applying diverse marketing strategies. However, only a few of them have successfully built their market share that has toughened the competition. The main competitors include Burger Joint, A Js Burger, Black Iron Burger Shop, MARK, The Prime Burger, Shake Shack, Corner Bistro, Pauls Place, and Thunder Jacksons Burger (Carsrud Brannback, 2007 Abrams, 2003 Pahl Richter, 2009). As the selected area is becoming more attractive due to prospective business opportunities, this gives raise to more competitors inside the premises. Although these competitors are offering burger as one of their menu product but average class customers are not totally satisfying with product quality due to its high prices.
COMPETITIVE ADVANTAGE
We will offer a unique crispy burger variant and own made sauce with our burgers, ingredient plan and manufacturing of which will be kept secret so no one else can copy it easily. Therefore, people will visit our outlet due to its likeness. We will also differentiate ourselves from our competitors on the basis of quality and service offerings. On the basis of fresh taste and lowestcompetitive pricing our business will through out the small players of the market and in long run business can achieve leading position. This will enable the Burger Mania to gain sustainable competitive advantage over competitors in long run
MARKETING STRATEGY
Companies that opt for long term marketing strategies establish strong brand names whereas short term marketing strategies only support the operational purposes for a shorter time (Butler, 2000). Special budget for marketing has been allocated each year to convince people to generate more customer traffic. Main purpose is to build customer loyalty in less time at minimum cost. Following promotion channels will be utilized
Advertisement
This is the most effective medium to influence and effect cognitive capabilities of people to derive their attention towards brand (Hoekstra et al. 1999). Commercial advertisements will be run on local media channel to increase customer awareness. Channels with high viewer frequency in middle and lower upper class will be used. Print ads in food magazines and local newspaper will be published on weeklymonthly basis. Advertisements on bill boards will be run to have effective impact on people about our business. Consideration will be placed on keeping the message relatively simple and effective as it increase effectiveness of communication.
Word of Mouth
This is the cheapest way to spread the business information to potential customers. As we are focusing on minimizing operational cost to offer competitive prices of products to customers, therefore we would be emphasizing on positive word of mouth for promotion and awareness.
Sales Promotion
Sales promotion proves effective when market is concerned with price and other psychological factors to derive their attention (Lam et al. 2004). Since our prime target market mainly possesses these characteristics, hence we would utilize sales promotion channel to increase customer flow towards business. This would include special discounts, package deals to regular customers and offering them gifts and hampers so that customer loyalty can be build up. Apart from that a big bumper prize of more than US1000 will be given through lucky draw. For these purpose a specific budget for marketing and promotion will be allocated.
SWOT ANALYSIS
Environment forces shape market opportunities, pose threats and affect the companys ability to serve customers and develop lasting relationship with them (Pahl Richter, 2009). Salient features of SWOT Analysis of Burger Mania are highlighted below
Strengths
We are offering quality products at low prices that will help gain market share in low time due to rapid brand value development.
Burger Mania products are of good quality seeing the attitude of people towards hygiene and impact on health which will help distinguish our brand from small competitors
We are offering dine-in and take away facility to all customers, and credit facility to selective customers
Weaknesses
Due to low penetration pricing, contribution margin declines and hence duration for breakeven will increase for Burger Mania
Weak brand image (being a new entrant) will require heavy investment in marketing and promotion in short run
Opportunities
Customers can be easily target on the basis of their demographic characteristics
We can offer more products in different product category such as broast, pizza, etc.
We can enter in different urban cities of USA to expand our operations and business value
New premium sub-brand can be launched for target nicheelite class market segment
Threats
Competitors offers may affect the customer strength in Burger Mania outlet
New competitors may enter in the market, hence market share for each would decline subsequently decline in sales may occur.
Existing competitors can reduce their prices very low and can prefer to go for incurring loss in short run due to heavy financial stability which can create hurdle in our business establishment
HUMAN RESOURCE MANAGEMENT
Business HR requirement is as per the given table and all employees will get bonus of 10 of annual income. Initially, our workforce level will be low but sooner with the opening of new outlet branches workforce requirement will increase. The given table defines the business requirement at the initial start-up phase.
DescriptionQuantitySalary Per MonthAnnual IncrementSupervisor152510Chef24258Waiter43257
RISK ANALYSIS
In considering the unexpected events that may shake and harm the business image, protective contingency planning is essential so that it can be implemented when it appears that business is not in a feasible situation. For Burger Mania some risks require appropriate contingency planning.
RISKLEVELCONSEQUENCERISK IMPACTBACK UP PLANFood poisoning
Stomach disorder2816Affected customer will be given next five free deals so that his perception about the product quality remains positiveShortage of raw material from market due to unexpected event2714In such case local vendors services will be utilized if required as for proactive planning 5 of monthly sales stock is being maintained Gas shortage11010LPG cylinders will be rented for that particular day
FINANCING
Business financing plays a very important role in supporting business in initial years while increasing financial stability in proceeding years. This determines the ability of business to grow and sustain in the market. It is necessary to properly allocate the funds to keep the smooth flow of business operations as ineffective placement of funds may result in significant loss on business due to heavy debt charges (Crudele, 2010). Two modes of capital raise will be used, which include investment as equity and debt financing as Demand Finance for five years. Demand Finance gives flexibility to business holders as settling of principal amount is done at term maturity only financing charges need to be paid annually (Timmons, 2004). By this we can have funds availability for longer period. At business start-up, main funding is placed in purchases of fixed assets considering this, loan of 200,000 will be taken as Demand Finance having 3.75 p.a. interest for 5 years maturity remaining funds requirement will be supported as investment in owners equity.
CONCLUSION
Burger Mania will be offering variety of burgers to medium class and lower upper segment at value pricing. Competitors are offering the high quality products while charging high prices in order to compete with rival groups, Burger Mania will emphasize on distinct its position as concern on quality and price both. People trend towards hygiene food has created a pressure on new market entrants to focus on unique perspective for competing also requiring cutting in operational cost to maintain profitability while charging low price for same high quality food.
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