Entrepreneurship Feasibility Analysis Report Term Paper
- Length: 8 pages
- Sources: 8
- Subject: History - Israel
- Type: Term Paper
- Paper: #84887064
Excerpt from Term Paper :
Today, the Gold Coast is a thriving tourist city located in an advantageous geographic position that can be reasonably expected to contribute to its future growth. Therefore, identifying opportunities to provide value-added services to existing successful businesses in this region represents a valuable and timely enterprise for entrepreneurs seeking a niche in this multicultural market. This study examines the feasibility of forging a long-term partnership with a Middle Eastern-themed restaurant by providing belly dancer, karaoke, and home delivery services for this and other similarly situated restaurants in the future based on this business model. The principals have extensive experience in the provision or the coordination of the provision of these services as well as a comprehensive knowledge of the targeted geographic market. Salient factors that should be taken into account, primary research in the form of a structured interview with the restaurant managers and survey of customers provide the basis for the recommendations that are presented in the study's conclusion.
FEASIBILITY ANALYSIS REPORT PROJECT: PARTNERSHIP WITH THE MIDDLE EAST RESTAURANT, GOLD COAST, AUSTRALIA
Background and Purpose of Feasibility Analysis
This report provides a feasibility analysis of forming a partnership with The Middle East Restaurant which is located in the Surfers Paradise region. The research will show that this region is a thriving tourist area that features a number of attractions that appeal to a wide range of domestic and international tourists. The purpose of the feasibility analysis will be to examine the following general components of this initiative with respect to:
1. Technological Feasibility;
2. Market Feasibility;
3. Economic Feasibility; and,
4. Financial Feasibility.
Each of these general components will require a separate feasibility analysis, but the research will show that each component enjoys a high level of feasibility with respect to the initiative envisioned herein. In sum, though, the principals possess the expertise and background to provide these valuable cultural accoutrements to Middle East-themed restaurants in the Gold Coast area in a reliable and cost effective fashion. Because the technological feasibility considerations of the initiative are straightforward, low involvement and minimal, a general background concerning the other components is first provided below.
Target Market: Consumers 18 years old and above, primarily Australians but an international mix as well.
Average income and above.
Place: Consumers who live in and tourists who visit the Gold Coast.
1. Introduce a new culture (Middle East) to a multicultural city.
2. Provide a new source of entertainment and amenities that contribute to an overall sense of happiness (i.e., karaoke, home service delivery, belly dancer and hookah [shish a]).
3. Customers like to discover a new culture and like to be entertained.
4. The growth of the population of Middle East people as residents and visitors to the Gold Coast is increasing each year.
5. The services envisioned herein are new in the Gold Coast and are characterized by high quality, competitive prices, as well as reliable and qualified suppliers from Middle East.
Market Route. The service would be delivered by the restaurants' menu and distributing brochures in the streets.
Competition. In reality, competition in this region is fierce, with a cornucopia of traditional and culturally themed restaurants and nightclubs available. As a result, all of the other Middle East-themed restaurants current situated on the Gold Coast such as Baldi (beatoti). The main nightclubs in this Surfers Paradise region include Southport RSL, Currumbin RSL, Surfers Paradise RSL, Nerang RSL, & Southport Sharks (Gold Coast Tourism, 2011).
A summary of the highlights of an interview with The Middle East Services Restaurant Manager is provided in Table 1 below (see Appendix C for outline of structured questions).
Summary of Interview with Restaurant Manager
Summary of Answer
What kind of services do you have for your customers in your restaurant? How long have you been serving your customers?
Actually we are new on the Gold Coast; we do not have many services. We have not completed a year yet in the Gold Coast. We serve Middle East food and hookah. We are planning to have more services in the future.
What other services that you want to provide for your customers?
As a Middle East restaurant we want to have more services from the Middle East's cultures, we are planning to have a belly dancer and a singer in the future. Also we did not have a chance to look for a belly dancer and a singer as we are too busy all days.
When is your busiest time?
Are there seasonal fluctuations in your business patterns?
Yes, as you can see now at this time from June to August we have more. Many of these are customers from the Middle East because they have summer holidays in the Middle East that are celebrated elsewhere as well. Also, we have busy days between October and November as Australians from different regions in Australia enjoy their summer holidays.
Would your restaurant be receptive to the addition of belly dancer, home delivery and karaoke services?
Absolutely. It's our pleasure to make a partnership with you, as we always wanted to have Middle East services. Especially belly dancers as most of the customers are asking us to provide a belly dancer in the restaurant.
40% of gross income
Share survey results
Conduct, analyze and share the results of a survey of restaurant customers
The results of the survey of customers who had just completed a visit to the Middle East restaurant partner (see proforma instrument at Appendix A) found that although most were male (70%), a significant percentage (30%) were female. The respondents were also primarily from the Middle East (60%), but there was also a strong Australian customer presence noted as well with 20%. Africa accounted for the remaining 10% of the customers. One in five of the respondents reported visiting the Middle East restaurant at least once a week, and 40% reported visiting it two to four times a week; 30% reported visiting the restaurant occasionally, and 10% of the truly loyal customers reported visiting the restaurant on a daily basis. All of the respondents reported wanting to see a belly dancer in the restaurant as well as the addition of home delivery services; however, although 40% reported not being interested in karaoke services, fully 60% of the respondents reported wanting this additional service as well. Likewise, most (70%) of the respondents reported wanting to smoke hookahs in the restaurant, and of these, preferences were equally mixed for grape, cantaloupe, apple and lemon/mint flavored tobaccos. One respondent reported wanting the addition of event planning with a single contact for coordination purposes. These results are depicted graphically in Figures 1 through 5 provided at Appendix B.
The pricing strategy and approaches to acquisition for the materials needed for the initiative envisioned herein are set forth in Table 2 below.
Pricing Strategies and Approaches
Pricing Strategy and Approach
1. Purchase a karaoke system player with a microphone from eBay cost: $178. The cost of renting the karaoke player will be $10/hour with a guaranteed minimum rental by the restaurant of 5 hours per day.
2. The entrepreneurs already possess a large selection of karaoke music.
3. Additional systems will be acquired as demand warrants.
Personal acquaintance of the entrepreneurs will provide these services; contractually agreed to perform for customers for $100 per an hour, 3 days a week (Thursday-Friday-Saturday); additional dancers will be recruited and trained as demand increases. The restaurant has agreed to pay $100 for the belly dancer.
1. Tobaccos: the principals will purchase the tobaccos directly from Saudi Arabia; cost $60 per 1Kg, sale price for 1 Kg of tobaccos to the restaurant will be $120.
2. 10 hookahs ($20/each); total cost $200; the restaurant will rent the 10 hookahs for $20 per day.
3. Customs for the tobaccos: Administration and application paperwork assistance provided by relative free of charge (works in a customs company); 1 Kg will cost $4 for the tobaccos to be delivered to the restaurant
This streamlined supply chain will provide a pricing strategy that is cheaper than our competitors as we are going to provide the services by our selves. Also, our services attract customers from different levels of incomes.
Technology. Technology feasibility is very high. The entrepreneurs will deliver all products and staff in personally owned vehicles and the karaoke systems have known reliability.
Marketing. Marketing feasibility is moderate to high. Although competition levels in the Gold Coast region are high, there are no comparable Middle Eastern culturally-oriented services currently available, making the business model a unique addition to the Gold Coast tourist region.
Economics. Given the burgeoning nature of the Gold Coast region, the documented demand for the specific value-added services envisioned in this initiative, as well as the growing Middle East tourism in this region, the economic feasibility of this project is…