Business Plan For Launching Rainbow Roof-top In Sri-Lanka

Overview of Rainbow Roof-top

This study has focused to provide detailed business plan of launching a new venture in the market of Sri-Lanka. Rainbow Roof-top is planned to spread out its business process as a food and beverage centre. Providing superior quality of products in fast service method is the primary mission of this new start-up. Sri-Lanka being an island nation is not economically well developed and structured. Therefore, while launching a new business set-up the business experts would have to focus on designing product and service quality as per customers’ needs and demands. An estimated budget would be prepared for making human resources, financial resources, technological resources and physical resources of the company. The study would also evaluate necessary opportunities and threats that Rainbow Roof-top would have to face in establishing their start-up amidst the other competitors.   

Rainbow Rooftop is designed as one of the most attractive and colourful rooftop food and beverage centres established in the market of Sri-Lanka. The service method of delivering foods and customer management is designed in an innovative way that can easily drag the attention of target audience (Burns and Dewhurst 2016). With the help of advanced technology the business experts will design Smart dining table with the help of which customers can select their menu by touching on the screen of table. With kind of digitalization in the rooftop restaurant of Sri-Lanka will leave a major impact in customers’ mind (Ross and Byrd 2015). Providing delicious Indian dishes and Asian Cuisine along with mock tails and various tasty milk shakes is the core products that Rainbow Roof-top service providers supply to its target customers.

However, in order to control the business the owner needs to form and establish a proper business profile who can handle every department separately.

Rainbow Roof-top Industry: Food and beverage Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper Head office: Sri-Lanka Office Address: No. 65 C W W Kannangara Mawatha, Colombo 00700, Sri Lanka Website: www.rainbow.com.sri Business department Human resource: Human resource manager Human resource executives Finance: Chief finance manager Finance executives Technical: Technical head IT executives Sales: Customer service manager Customer service providers Marketing manager Marketing executive

Table 1: Business Profile of Rainbow Roof-top

(Source: As Created by the Author) 

As Rainbow Roof-top is a start-up venture the business experts will hire 50 employees for proving effective services. Those 50 employees are apart from managerial department in Rainbow Roof-top.

Core competency is the management theory introduced by Prahalad and Gary (Gately and Cunningham 2014). The overarching concept of core competency defines that every business organization is possessed with its unique features and core values that distinguishes the company from others (Wheadon and Duval-Couetil 2014). While establishing Rainbow Roof-top, the business expert decides to make some distinct features within its product and services. The core competencies of Rainbow Roof-top are as follows:

• Providing homes services to the customers in stipulated time
• Providing superior quality of Indian dishes along with Asian Cuisine
• Delivering innovative services by using Smart dining table
• Customers can place online order and receiving their services at the stipulated destination
• Employees are well trained and professional to deal with the customers

While running a business process in the realm of food and beverage industry the business experts of Rainbow Roof-top would have to focus on evaluating external environmental factors of Sri-Lanka which are as follows. 

Political	Sri Lanka is a democratic and unitary nation governed by semi-presidential system. As per the stability of political scenario, this particular nation faces frequent changes of their business policies (Mariotti and Glackin 2014). As a result, the business experts would have face challenges in running Rainbow Roof-top effectively. The corruption level of Sri-Lanka is not very high due to transparent trade control policy. The tax rate is affordable for running the entire process of business. The degree of bureaucracy is highly maintained within organizations of Sri-Lanka. For an example, before sending the sales executives in field work the business authority compels the employees for a thorough health check-up so that they get to know about their physical competency. As per government structure there is a good rapport between trade union and Sri-Lanka government. As a result, business experts do not have to face challenges in following government regulations and taxation policies.
Economic	As already stated Sri-Lanka is not well developed in economy (Örnek and Danyal 2015). As a result, business administrator would have to be strategic in selecting product price (Kiznyte, Welker and Dechange 2016). High cost product would be challenges for the customers of Sri-Lanka in using services. Sri-Lanka’s estimated population as per 2016 is 21.252 million. The unemployment rate is 4% as per total labour force. It is however expected that by 2022 the unemployment rate will be increased due to the raise of population. Due to average population rate the country does not have to face inflation in the business market. Being an underdeveloped country the rate of poverty is average in the soil of Sri-Lanka.
Socio-Cultural	Around 20 million people have already spread their wings in the soil of Sri-Lanka. However, the literacy rate of this nation is around 92.5% which will help the company in hiring skilled labour within services (Motoyama and Knowlton 2017). People belonging to diverse culture and religion belong to Sri-Lanka. The customers also maintain professional approach while using the services.  As the lifestyle of Sri-Lankan is average, the people are possessed with moderate consuming habits.
Technological	Technological availability in Sri-Lanka is high (Dempwolf, Auer and D’Ippolito 2014). As a result, the business experts do not have to face challenges in using Smart dining table (Brinckmann and Kim 2015). Customers can easily access the services by operating advanced technology. The internet accessibility and connectivity is high. People do not have to face difficulties in using advancement of technology. The organizations by implementing automation technology are running their entire operations.
Environmental	Sri-Lanka is possessed with tropical climate due to which temperature varies from one location to another. The rate of natural disaster in this country is moderate.  Ministry of Environment and Natural Resources has implemented Environmental Act with the help of which the inhabitants are bound to maintain ecological balance (Uhl and Gollenia 2016). The environmental pollution can be controlled as well by implementing environmental act.  At the same time, the business experts can produce environmental friendly products with the help of which customers do not get affected in having the foods of Rainbow Roof-top.
Legal	As already mentioned the labour market existed in Sri-Lanka is very skilled and competent (Honig and Samuelsson 2014). Therefore, the business experts have to follow organizational acts and regulations strictly (Brooks, Heffner and Henderson 2014). Health and safety act, data protection act, right to information act, anti-discrimination act should be strictly followed at the workplace of Rainbow Roof-top.   On the other hand, employment act should be strictly followed at the workplace. With the help of this act the employees would get necessary benefits and facilities from the organization.

Table 2: External Environmental Analysis of Sri-Lanka

(Source: York and Danes 2014)

Porter’s six forces:

Bargaining power of the suppliers’:	Bargaining power of the suppliers’ in Sri-Lanka is low due to the large number of distributors and raw material suppliers in the country. Customers’ knowledge regarding the raw material supplier is not very detailed. Due to innumerable number of distributors in food and beverage industry the suppliers’ have to switch the price of raw materials frequently as per demand.
Bargaining power of the buyers’:	Bargaining power of the buyers is high due to large number of suppliers. The organizations as per market needs and demands can switch product cost. Sri-Lanka is possessed with low number of customers in food industry. Therefore, bargaining power becomes high so that business experts can fulfil the expectation of limited number of customers.
Competitors’ rivalry:	Innumerable organizations on food and beverage industry are already established in the market of Sri-Lanka. Still, Rainbow Roof-top runs their business with smart operations. Therefore, from that perspective the rate of competition for this organization is low.
Threat of new market entry	The factors which can give a major threat to the organization in establishing their business process includes level of capital use of technology, government regulations, distribution channels and so on.
Complementary products	Rainbow Roof-top has given priority on complementary products. Therefore, their market demand is expected to be high.
Threat of the substitutes	Rainbow Roof-top is primarily made in Indian and Asian Cuisine. The restaurants which are dependent on Continental and Chinese Cuisine are its major substitutes. Therefore, these restaurants are major threats for Rainbow Roof-top.

After making effective PESTEL analysis and Porter’s six factors it can be concluded that food and beverage industry in the soil of Sri-Lanka is expected to be prosperous. The country as per government regulations, environment acts and labour market scenario is compatible enough to give Rainbow Rooftop a secured place for running their business. After making Porters’ six factor analysis it is evaluated that the competitive market, its substitute threat is low which enables the business experts of Rainbow Rooftop to launch a new business process. 

Business Profile of Rainbow Roof-top

The opportunities that the business experts can find out after opening Rainbow Roof-top in the market of Sri-Lanka are as follows:

• Expanding the business in multi-national countries
• Enhancing the number of workforces for providing more effective services
• Rendering more innovation in the service method
• Rendering product diversity for increasing the number of target audience

Threats:

After identifying the areas of opportunities the business experts of Rainbow Roof-top can find out the areas of threats as well that can exploit the rhythmic process of business.

• Rainbow Roof-top may have to receive threat for new market entry in order to establish the business in multi-national countries
• Rainbow Roof-top may have to face challenges in investing money for hiring large number of workforces within services
• In order to render more innovation within services the organization would have to follow high cost price strategy. High cost product strategy is very challenging for running business in the market of Sri-Lanka due to the low economic strength of this nation.
• Rainbow Roof-top may have to receive immense threats in dragging the attention of large number of target customers due to limited products. The restaurant is limited within Indian dishes and Asian Cuisine.

Strengths:

• Innovative business design with advancement of technology
• Skilled and competent labour market
• Professional customer services

Weakness:

• Low capital in business
• Low product diversification and market penetration
• Limited number of customers

Strategy formulation:

Providing quality of products and services by using innovative business operation is the primary strength of Rainbow Rooftop. In order to overcome the weakness the organization can take effective financial assistance from the banks to increase its capital and invest money in business for more expansion. In order to enhance the number of customers the organization can increase product diversification.

Based on the company market analysis and internal strengths and weakness TWOS enables the customers for analysing external threats, weakness, opportunities and strength factors.

Threats Competitors’ market strategy and their product diversification as well as market penetration	Weakness As per internal weakness the company does not have sufficient capital for business investment. As a result, as per external weakness the organization would face difficulties in expanding new market in other geographic region.
Opportunities By enhancing the number of workforces the company can deliver the products in multi-national countries	Strengths Due to skilled labour market the organization would be able to deliver superior quality of services that can meet customers’ needs and demands.

Some of the most effective ways are there based on which the identified threats can be mitigated:

1. Before expanding the business in other geographic area the business experts of Rainbow Roof-top would have to make strong environmental analysis(Thomas et al. 2014). Based on the external environment the business experts would form feasible business strategy and policy.
2. In order to overcome economic barrier the organization would have to gain sufficient business profitability. However, the product designers would have to render variable food and beverages to grab the attention of customers from diverse cultural backgrounds and attitudes(Abdesamed, and Wahab 2014). In addition, the business experts may use low cost pricing strategy to enhance the number of target customers.  
3. In order to drag the attention of international customers the organization would have to focus on service and product diversification and market penetration. In addition, before designing the product the business experts would have to focus on evaluating the needs and demands of target customers(Wheadon and Duval-Couetil 2014). The range of target audience can be segregated as per geographic, demographic and psychographic segmentation.
4. In order to overcome technological barriers faced by the existing employees the business experts of Rainbow Roof-top would like to focus on providing effective training and development session to the employees(Dempwolf, Auer and D’Ippolito 2014). As a result, they do not have to face challenges in operating advanced technology. In addition, the employees would be able to handle sudden technological barriers as well.

Conclusion: 

This study has provided in-depth business plan of initiating a new business set-up in food and beverage industry in the market of Sri-Lanka. Providing superior quality of products in fast service method is the primary mission of Rainbow Roof-top. Sri-Lanka being an island nation is not economically strengthened. It is observed that the service method of delivering foods and customer management is designed in an innovative way that can easily drag the attention of target audience. As Rainbow Roof-top is a start-up venture the business experts will hire 50 employees for proving effective services. It is however undeniable that while establishing Rainbow Roof-top, the business expert decides to make some distinct features within its product and services.

Delivering innovative services by using Smart dining table is the core competency of this organization. Customers can place online order and receiving their services at the stipulated destination. As Sri-Lanka is not well developed in economy, business administrator would have to be strategic in selecting product price. While running the organization, the business experts have to follow organizational acts and regulations strictly. Health and safety act, data protection act, right to information act, anti-discrimination act should be strictly followed at the workplace of Rainbow Roof-top. At the time of analyzing its threats, Rainbow Roof-top may have to receive threat for new market entry in order to establish the business in multi-national countries.

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Core Competencies of Rainbow Roof-top

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