Discuss about the Real Business Operating in Sydney in 2016.
A Business plan is a roadmap providing with direction to a business plan in order to match with the future expectations. The purpose is to make a thorough business plan by keeping an individual up – to-date with the long-term sustainability. Business plan need to be in accuracy with the guidelines regarding content and form. Each element in the business plan should be addressed in order to meet the desired results.
The business plan is regarding an Asian Cuisines food chain restaurant in Sydney. The Australian hospitality industry is marked up as a complete game changer. The restaurant industry is growing at a fast pace creating advance opportunity. Changing social trends has developed vast opportunities for the Restaurant industry in the past 5 years. The industry is expected to post annualize a growth of 5.6 percent over the period of 5 years. Busier lifestyle and diminishing leisure time have allowed consumers to avoid time on preparing food. These trends are expected to grow in near future. Growing consumer demand for quality food and dining has fuelled the expectations of the food industry. There are end numbers of things that are required to be considered when starting a food business in Sydney. For instance the business needs to be subjected to both Australian and NSW law. It is essential to attain proper licence before commencing a business. The restaurant industry is gaining pace in the recent time will help it to grow multi-folded (Industry Survey: How Much Does it Cost to Open a Restaurant? 2017). Sydney is a business hub and includes people with multiple backgrounds. By opening a food restaurant with economic price, consumers can connect themselves. This will separate the restaurant from the other competitor in the market. By keeping a cost efficient menu, the restaurant chain can gain a competitive advantage over the other local food joints. The restaurant majorly focuses over the quality of food which will be managed by a proactive team headed by the famous chef. The USP of the restaurant is its location. The food joint is centrally located and mostly crowded. For a month the restaurant will work on a pilot plan in order to estimate the prices. The restaurant is expected to work thoroughly after the completion of the pilot project (Helmrich, 2015).
The Cost of living in Australia is 12.49% higher than in United States (collective data for all cities excluding rent). Rent in Australia is 7.84% higher than in USA. The food and restaurant industry is growing at a fast pace. A shift in the lifestyle of people has developed various opportunities for the food joints to expand their business. An economic development in the state is one of the primary reasons for multi-fold growth in the sector creating employment opportunities. Changing social trends has developed vast opportunities for the Restaurant industry in the past 5 years. The industry is expected to post annualize a growth of 5.6 percent over the period of 5 years. Australia’s visitor economy is estimated as $113 billion industry. It has employed one million people and supporting 267,000 businesses transversely metropolitan and regional Australia. This sector has contributed as the largest sector to meet the visitor economy. The employment growth is much higher than the other sector creating regular as well as temporary jobs. The four fastest Trends seen in Australia are: Healthy Eating, Seafood, and Modern Australian Cuisine & Asian Cuisines (IBISWorld.2017).
The purpose of the competitive analysis is to determine the strength and weakness of the competitor within the market. These strategies will provide with a distinct advantage. A business can analyse and prevent the barriers to the business. In order to understand the strength and weakness of Restaurant industry in Sydney, Australia it is important to divide the risk associated with it. PESTLE analysis is used to understand the external environment in Sydney (Barringer, 2012). This will help in attaining high level of understanding related to restaurant business. There are end numbers of things that are required to be considered when starting a food business in Sydney. It is not simple to start a business without a proper blue print. For the purpose an external environment analysis is an important tool used by people in order to develop a better understanding (Restaurant catering. 2016).
Political factors: The government in Australia is reliable, transparent, fair and internationally competitive. This provides investors with a safe and protected business structure. Sydney is a business hub creating ample of opportunities for business. This creates a sense of security in the investors regarding their investments. Commonwealth wealth government works as a supportive system for the local investors protecting their long term interest. A strong political system is supported with growth and sustainability (Zimmerer, Scarborough and Wilson, 2005).
Economic factors: Australia is an enviable, strong economy with a per capita GDP on par with the dominant West European economies. The local economy is seemed confident and the purchasing power is high. The COL in Australia is 12.49% higher than in United States.
Socio-Cultural factors: The way of communication of Australians is very direct. Changing social trends has developed vast opportunities for the Restaurant industry in the past 5 years. The industry is expected to post annualize a growth of 5.6 percent over the period of 5 years. The standard of living in Australia is very high creating ample of opportunities for the local and international food joint. Moreover in the recent time shift in the lifestyle of people has developed a range of opportunities for the food joints to expand their business. An economic development in the state is one of the primary reasons for multi-fold growth in the sector creating employment opportunities. The multicultural environment in Australia has a great influence on the Australian food culture which include Asian food (McKeever, 2016)
Technological Factors: Australia is a developed economy with a high end technology and development. It has a combination of world-class information and communications technology in all the sectors providing with an excellent environment for investors. Sydney has a high end infrastructure with effective information and communications technology and the ability of businesses and consumers to use it (Khan, 2014).
Legal factors: In order to establish a food joint it is important to follow the law and order. There are end numbers of things that are required to be considered when starting a food business in Sydney. For instance the business needs to be subjected to both Australian and NSW law. It is essential to attain proper licence before commencing a business. This will help in coordinating the business opportunities in a significant way. There is an ample of support from the local government that is creating majority of support for the business organization. In order to grow in a multi-fold way, it is important to emphasize on the legal environment (Heizer, 2016).
Environmental factors: Environment is given special attention by the common wealth government in order to create effectiveness. The climatic change and environmental disparities growing in the recent time is been given proper attention by the government bodies. It includes proper licensing and compliance with the Environmental law as established (Nykiel, 2016).
In order to start a business venture it is important to judge various strengths and weakness attached with it. The business plan helps in managing the operational activities. This help in gaining the long term sustainability in order to gain results. This will help in analysing the opportunities growing in the field. Majority of decision regarding the business plan s are important in developing aspects. This sector has contributed as the largest sector to meet the visitor economy. The employment growth is much higher than the other sector creating regular as well as temporary jobs (Hiduke and Ryan, 2013). An assessment regarding the strengths and weakness help in managing the distinct objectives. In order to gain long term sustainability it is vital to organize a systematic business plan. The implementation of an effective business plan will allow in gaining longevity. Business will be able to gain results within a definite time-period (Spender, 2014).
To gain a competitive advantage in business it is important to draw an effective procedure for business management. The basic purpose of designing an effective plan and procedure is to gain sustainable results. For a restaurant industry it is evident to understand taste of the local people. In order to carry out functions properly it is important to develop operations and management component of plan. This will ensure in gaining business functions on a continuing basis. The restaurant business operations plan highlights the logistics of the organization. The responsibilities and functions pertaining to the business need to be divided in an effective way. For the purpose, it is the responsibility of the management team to assign task to each division within the organization. Majority of duties are already been delegated to the subordinates. Decisions regarding the capital and expense supplies depend upon the success of the pilot run (Peteraf, Gamble and Thompson, 2014).
After defining the service in the market and operations, the next step is to define the attention towards the financial statements. It is relevant to understand the financial requirements because they form the backbone of the business plan. In order to gain longevity it is important to access the income statement, cash flow statement, and balance sheet. In the business plan, it is important to create an analysis for the income statement just to understand the financial needs. The analysis of the balance sheet will cover the entire financial statements in order to make desirable conclusion (Alhabeeb, 2014).
Positive points
In order to understand the longevity of the business it is most essential to understand the growth plan of the business. It is evident from the current planning and management of business procedure that the Australian consumer market is growing at a fast pace. Sydney has lots of opportunities for the restaurant industry. The multicultural business environment in Sydney will be an added advantage in order to attain systematic growth. Growing consumer demand for quality food and dining will allow in gaining strength. There are end numbers of things that are required to be considered when starting a food business in Sydney (Lambrou, 2016).
Negative points
Being a business hub, Sydney already has many local and international food joints. These food joints can cause excess competition to the business. In such a situation it is recommended to come up with an effective business plan. It is further important to maintain the food quality due to stringent legal food related rules and procedures. The local, long established food joints can cause competition to the business. While reviewing a business plan it is important to understand the external factors. An over focus on the multi-factors operational cost will affect the business. While designing the business plan, it is important to keep a plan B in case of failure of Plan A. In this way one can gain long-term competitive advantage to be in the race (Wong et al 2016).
Conclusions
It is recommended that the business organization need to focus on each and every component of the business plan. While addressing the issues, it is important to focus equally on both the operational and financial factors. By managing the business in a systematic manner, the organization can gain sustainable objectives. The Australian food industry is growing at a fast pace. This sector has contributed as the largest sector to meet the visitor economy. The employment growth is much higher than the other sector creating regular as well as temporary jobs. Asian food is much liked in Sydney due to variance in taste. In order to gain competitive advantage against the established food joint it is suggested to well incorporate the business functions. It is important to review the business plan in order to understand the shifting paradigm in the food industry.
Reference list
Alhabeeb, M.J., 2014. Entrepreneurial finance: fundamentals of financial planning and management for small business. John Wiley & Sons.
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Helmrich, B.2015. Ten things to do before opening a restaurant. Online. Available at: https://www.news.com.au/finance/small-business/ten-things-to-do-before-opening-a-restaurant/news-story/609bd2759685553e3020de79164acc3e Accessed on: 13 August 2017
Hiduke, G. and Ryan, J.D., 2013. Small business: an entrepreneur’s business plan. Cengage Learning.
IBISWorld.2017.Restaurants in Australia. Online. Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/restaurants.html Accessed on: 13 August 2017
Industry Survey: How Much Does it Cost to Open a Restaurant? 2017. Online. Available at: https://www.restaurantowner.com/public/How-Much-Does-it-Cost-to-Open-a-Restaurant.cfm Accessed on: 13 August 2017
Khan, M.A., 2014. Restaurant franchising: Concepts, regulations and practices. CRC Press.
Lambrou, L., 2016. Cooking and the Books: A Guide to Restaurant Accounting.
McKeever, M., 2016. How to write a business plan. Nolo.
Nykiel, R.A., 2016. Marketing Your Business-A Guide to Developing a Strategic Marketing Plan.
Peteraf, M., Gamble, J. and Thompson Jr, A., 2014. Essentials of strategic management: The quest for competitive advantage. McGraw-Hill Education.
Restaurant catering . 2016. Federal Budget 2016-17.
Online. Available at: https://www.treasury.gov.au/~/media/Treasury/Consultations%20and%20Reviews/Consultations/2015/2016%20Pre%20Budget%20submissions/Submissions/PDF/Restaurant%20and%20Catering%20Australia.ashx Accessed on: 13 August 2017
Spender, J.C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise. OUP Oxford.
Wong, A., Anderson, K.J., Ang, I. and McNeill, D., 2016. Sydney’s Chinatown in the Asian Century: From ethnic enclave to global hub.
Zimmerer, T.W., Scarborough, N.M. and Wilson, D., 2005. Essentials of entrepreneurship and small business management. Pearson/Prentice Hall.
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