MGT402- Entreprenureship and small Business

Course Name: Entreprenureship and small Business

Assignment No: 2

Submission Date by students:  Before the end of Week- 12th

Place of Submission: Students Grade Centre

Weight:     08 Marks

Task Description: 2000 words

Learning Outcomes:

Study the various guidelines used by successful entrepreneurs in gathering facts and opinions such as making a commitment to go into business, analysing oneself, choosing a product, researching markets, organizational, legal, accounting, insurance, computer and financial plans.

 

Project yourself as an entrepreneur of a small scale business in Saudi Arabia.

 

Business Plan format required.

A title page,

1. General Business Description

• Mission Statements
• Company goals and objectives  

1. Business Philosophy

• Target Customer
• Industry Description: Is it a growth industry? What long term or Short term changes      do you foresee in the industry? How will your company take advantage of it?
• Company strengths and core competencies: What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?
• Legal form of ownership: Sole proprietor, Partnership, Corporation, Limited liability corporation (LLC)? Why have you selected this form?

1. Products and Services

• Describe in depth your products or services. (Technical specifications)
• What factors will give you competitive advantages or disadvantages? Examples include level of quality or unique or proprietary features.

1. Marketing Plan

• How the company will get to the customers and the coherence of the marketing tool adopted with the overall strategy?
• State 4 Ps of marketing

1. Operations and developmental Plan

• How product will be produced or service provided
• The location of the production facilities
• The dimension and capacity
• The internal layout The cost of the investment needed (i.e. Plants, equipment, buildings)
• The cost of the investment needed (i.e. Plants, equipment, buildings)

1. Management Plan

• Describes the firm’s organizational structure and the backgrounds and qualifications of key personnel

1. Financial Plan

• Sources and Uses of Capital
• Balance Sheet
• The income statement
• The cash flow statement should present data on a monthly or seasonal basis
• Breakeven analysis
• Financial Ratios
• A sensitivity analysis is needed, showing what would happen in at least three scenarios:  Worst case scenario  Probable scenario  Best case scenario

1. Prepare Executive Summary of the Plan

 

Instructions for the student

 

Instructions for the students:

1. Answer the ALL questions.
2. Assignments should be submitted in Word format.
3. Font should be Times New Roman with 12 points.
4. You are required to work this assignment individually.
5. You should submit the assignment via the Blackboard only.
6. Students, who submit assignments after deadline, will be awarded ZERO points.
7. If any student found engaged in plagiarism level by more than 25%, they will awarded ZERO marks in the assignment or course.
8. First page of the assignment should be filled with

• Course Code [MGT-402] and Course Title [Entrepreneureship & Small Business] and CRN-
• Student Name and ID.Number
• Date of Submission

1. Second page should be Assignment question
2. After the question page then present your answer by clean and neat layout
3. Finally your file should be saved as Word Doc like ID.NO- MGT-402 A-2 STUDENT NAME.doc [only CAPITAL LETTERS]

[Example.] 160012628-MGT-402 A-2 Al Eid, Zahra I

ANSWER

General Business Description

Al-Baik is considered as one of the leading fast food restaurants chain based in Saudi Arabia that strategically produces and sells broasted chicken that is prepared through the use of a pressure fryer and shrimp with some sauces. The business is considered as one of the significant chicken consumers in Saudi Arabia and has close to forty-one sub-divisions in Jeddah where the head office is centered. Eight of the branches are in Mecca, six based in Medina, one in Taif and Yanbu respectively, and another one in Al-Kharj. The business mission statement is to be the market frontiers whenever they are through continually fulfilling their customers through keeping the highest standards of food security, quality, and service. Providing comfortable, secure business environment, bringing the most competitive value possible and operating with highly motivated and ethical staff members is also part of the mission. The organization has always been committed to being responsible member of the community where they serve and the neighborhoods they operate in (Al Saud & Khan, 2013). Some of the goals that the business upholds involve educating the youths and enhancing their skills, societal development, and environmental awareness. The objectives are to ensure that the company’s close partners, employees, customers, concerned state agencies and team members continuously have a say in the direction of their corporate social responsibility program.

Business Philosophy

The organization’s target markets have always been Mekkah, Madinah, Yanbu, and Taif where it sells a majority of the products and the primary business operations based in Jeddah Saudi Arabia thus proceeding to be known internationally. Moreover, the restaurant has continued to succeed in the western province of Saudi Arabia even though it is considered as one of the toughest sections for business competition due to the ease of entrance. Al-Baik has dominated in the marketing surrounding thus offering a competitive environment to KFC and the rest of the restaurants such as Popeyes and Tazej. The restaurant business is a growth industry since it has one constant vision that has not changed and has kept the sector stable since it started its operations decades ago (Lippman, 2010). All the industry’s efforts, growth, coming up with perfect recipes, emerging food production services, team training, formulating and deploying operational strategies are part of the growth that the company continually associates. Everything that the industry has done over the past decades to reach their current status is typically development and experience. One of the long-term changes within the industry is its big announcement made regarding the opening of another branch in Riyadh as the people living within the town have always had it rough accessing the company’s products with no nearby offices. This will typically increase the level of sales and profit within the company thus becoming more stable within Saudi Arabia. In 2015, the food chain started its first restaurant outside of Hejaz in Buraidah and later followed by a similar branch in Jizan in the following year.

The restaurant has always championed for environmental awareness program where it introduced two unique cartoon characters called Nazeeh and Wartan that have assisted in safeguarding the environment through not littering and helping the nation clean. This is one of the strengths that the restaurant has achieved hence making it accessible within the country. Also, it has continuously championed the food safety awareness campaign as it strives to make available best for their consumers and the public in general. This initiative is firmly towards the company as it has launched a five-step program in food protection thus making the industry’s products most preferred across the globe. This initiative is one of the factors that has made the restaurant successful in the business environment and continued to succeed in the food production set-up internationally (Bukhari, 2015). The initiative was started with the intention of educating the community on the significance of embracing food safety and appropriate handling methods. Main competitive strength is the differentiation leadership where the business will be set to target much bigger markets and aim at achieving a competitive advantage across the enterprise. This method will entail coming up with one or more techniques applied by buyers in the market and then set up the business uniquely to accomplish these criteria. The background experience, skills, and strengths associated with this kind of competitive advantage is that it involves the change in premium price that covers the extra production expenses and giving the consumers an apparent reason to choose the Al-Baik products over others. The legal form of ownership is sole proprietor as it is the trademark allowed on restaurants services and food products.

Products and Services

Some of the products produced by the Al-Baik restaurant include fried chicken, shrimp, and fish. The fried chicken is typically a dish that comprises of chicken pieces derived from broiler chickens that have been battered and pressure cooked. Notably, some of the services that Al-Baik has continually been associated with include the socially related campaigns. They have a consistent presence in Hajj seasons providing free meals to the pilgrims, and they are occasionally campaigning for environmentally related causes such as banning smoking at their restaurants or keeping the town clean (Lippman, 2010). Also, they engaged in the free delivery of meals to the victims of Jeddah floods thus showing an example of how the organization involves in service production to its society. Moreover, it has been articulating and educating the community on the importance of consuming safe food as part of their better life campaigns. Some of the factors that give the restaurant a competitive advantage includes the taste of their products courtesy of the secret recipe. Apparently, very few restaurants can develop the same manner in which Al-Baik has grown without the effort of public likeness regarding their taste. Also, the constant update with trends gives the business a competitive advantage as previously, there were no spicy taste in their menu. However, keeping in view many populations of expatriates from the subcontinent that typically enjoys tasty meals, they incorporated spicy flavor which has proven to be a big hit. The use of modern technology is another competitive advantage for the Al-Baik restaurant thus making it very crowded most of the occasions. It has incorporated a system known as order AL-Baik online that typically uses the internet and the credit card for purchases thus making the process fast and time-saving. Their low prices make the business popular plus their delicious fried chicken that attracts most consumers as they have not reduced their standards (Lippman, 2010).

Marketing Plan

The organization launched a unique educational system and social undertakings that have typically improved the relationship that it has with trust and value with regards to the society. Due to these continuous responsibilities and high performance, the restaurant has emerged victorious in attracting the loyal clients of the international quick service restaurant (Naeem, 2012). One of the marketing strategies that the business applies is through the awareness in generated and environmental care initiative with its offensive use of cartoon characters such as Wartan and Nazeeh. For a very long time, these characters have been rated the most popular and liked by both grownups and teenagers thus making the restaurant popular and acting as a marketing strategy for the company’s products and services. On the other hand, marketing mix is typically accepted as the use and specification of the ‘four Ps’ evaluating the strategic position of a product in the marketplace. The marketing mix of Al-Baik comprises of 4Ps that contains all the things that the restaurant do to influence the demand for their products that includes chicken, shrimp, and fish distributed on the menu as follows. Some of their products include ALBAIK® Chicken 8pcs (Mild or Spicy), ALBAIK® Chicken 4pcs (Mild or Spicy), and Chicken Fillet Nuggets 7pcs (Mild or Spicy). Regarding place, the restaurant is located in Bahrain due to the number of Saudis that constantly visits the Bahrain malls. Promotion and advertising do not have a great impact on the Al-Baik’s potential in Dubai or Bahrain since the current promotions are carried out in two languages namely Arabic and English. Strategically, the price ought to be set based on the others in the marketing environment thus the business takes this opportunity to increase rates to a level where it is less than consumers as it is already in Saudi Arabia.

Operations and development plan

Earmarking Malaysia is one of the potential industrial and logistics places that Al-Baik restaurant is planning to invest over MYR150 million into aiming at setting up its operations in the area. The business has been firmly established in Saudi Arabia for close to 40 years and therefore seeks to open, operate and manage more of their restaurants internationally and expanding into the ASEAN markets (Lippman, 2010). The business has achieved significant popularity and appeal amongst the Malaysian community more so with the Malaysians operating within Saudi Arabia. The products will be produced using the same techniques and process applied within Saudi though with improved features and tastes that will typically make the business grow to a global level.

Management Plan

Al-Baik has an organizational structure comprising of team members who are the institution’s most valued asset and are committed to the creation of a corporate culture of teamwork and respect. The team members are essential in promoting from within and providing one another with the needed support and opportunities that allow them to develop and grow personally and competently thus achieving their utmost potential. The organization offers more than 160 training programs to the members throughout their career with the intention of developing them to become upcoming leaders and future executives (Bukhari, 2015). These training processes are in line with the national restaurant association rules and regulations thus making offering a chance for the brand to grow through the participation in the courses that cover sectors of food safety, hospitality and service management as part of the qualifications required in the food industry. The essential background of the restaurant is the high-quality broast as all food associated clubs are doing great to outdo Al-Baik, but their efforts are all in vain due to the alluring taste, matching nature, affordable price and the grave trust of consumers on Al-Baik eating products.

The business also focuses on enhancing respect for global cultures and arranges for fun activities that typically provide an escape from the routine duties while keeping on the truck the required disciplines that uphold the business culture and values. The employees are treated as internal customers and are regularly engaged in the company’s decision-making process as this guarantees growth within the brand. Above all, the business upholds the highest degree of integrity through maintaining principled respect and honesty in all their operations (Bukhari, 2015). This forms an organizational structure that strictly adheres to the marketing rules and business composition making it the most preferred food restaurant in Saudi Arabia.

Financial Plan

The restaurants use much of its capital is looking for quality sources of chicken that are considered as the highest quality standards for their services (Al Saud & Khan, 2013). After identifying the needed sources of chicken, the management provides them with the Saudi and global specifications and conditions required of proper standards before payment is made. Moreover, the company’s capital is also used as wages in the number of workers who continuously commit themselves towards making the restaurant popular within the nation. Sources of their finances typically emerge from the consistent profits that the business makes annually after all the expenses have been accounted. The company has also planned to direct close to SAR 96 million in a food processing plant that is based in Malaysia as part of their expansion strategy.

Income Statement

Revenue	$ 1.446
Gross Profit	$0
Operating Income	$0
Net Income	$0.1
Diluted EPS	$0

 

Executive Summary

The plan has looked into the Al-Baik restaurant key marketing objectives and the goals that drive its daily operations plus the company’s mission statement as part of their significant responsibilities. The plan has also focused on the targeted customers that act as the critical part of the restaurant operations together with some of the institution’s policies that include their expansion and becoming a global company. Products and services produced within the business have been outlined within the plan including the educational programs that the restaurant has continuously encouraged. Marketing strategies have been covered within the project together with some of the future development plans that the organization has in place. Finally, the project has outlined some of the significant financial statements and structures that drive the company towards achieving its intended missions and visions in the food production business.

 

 

References

Al Saud, A. A., & Khan, M. R. (2013). Role of social media in brand development in Saudi Arabia. European Journal of Business and Economics, 8(1).

Bukhari, S. (2015). Consumer Loyalty in Fast-Food Restaurants in Saudi Arabia (Doctoral dissertation, Université d’Ottawa/University of Ottawa).

Lippman, T. W. (2010). Saudi Arabia’s Quest for “Food Security”. Middle East Policy, 17(1), 90-98.

Naeem, Z. (2012). Increasing trend of Junk food use in Saudi Arabia and health implications. International journal of health sciences, 6(1), V.