Assignment 1: Trends and the Business Environment (100 marks; 10% of course grade)
All of your module assignments will ultimately be integrated to form your major project for this course—the Business Blueprint. In this assignment, you will start the process of gathering information for your Blueprint.
If you decide to go ahead with your proposed business, you will need to develop a complete business plan after this course is completed. Your Blueprint draws specific elements out of a business plan. The information gathered for your Blueprint should allow you to decide if your business idea is worth pursuing.
The Small Business BC website has many useful resources and links relating to business plan outlines and ideas. You will be able to see how the elements of your Blueprint fit into a fully developed business plan by exploring this site.
Here are the five parts of Assignment 1:
Business Concept—Description of Your Idea
Overview and Description of the Industry
Integrated Model of a Successful Business
Complete the five parts of this assignment. The word counts in each part give you a guideline about how detailed your report must be. Please try to adhere to the suggested word counts wherever possible.
When you have finished this module, send your completed assignment (through Blackboard) to your Open Learning Faculty Member.
If you are unsure about what is required in an assignment, contact your Open Learning Faculty Member.
Part A: Business Concept—Description of Your Idea
Select a business concept that you are interested in pursuing. Your idea can be for a product or service that follows a traditional business module (bricks and mortar), an innovative business model (e-commerce, web-based, or hybrid). Talk to your Open Learning Faculty Member to discuss your concept and get it approved before you commit your time to developing it in this assignment.
Describe your business concept (maximum 350 words). Be sure to discuss things such as where you intend to operate the business, who your main customers might be, why you think this is a good idea, what competitors exist in your market, and what other positive trends are happening in regard to your idea.
Choose a business name for your concept and use this name when talking about your business concept throughout the course.
Part B: Overview and Description of the Industry
Identify which industry sector your business concept falls into.
Provide a brief description of the industry.
(Maximum 400 words)
Part C: Integrated Model of a Successful Business
Referring to the following diagram (and other information from the Introduction in the textbook), describe in your own words why integration is so important to the success of a business today.
Thinking about your own business idea, identify at least ten things you will have to do to operate a successful small business. Remember, you are going to convert an idea into a real business, using this model as a guide.
(Maximum 750 words)
As you research your industry sector, keep track of your sources of information. These original sources could become very valuable for other pieces of information you will need throughout this course.
Part D: PESTI Analysis
Complete a political, economic, socio-cultural, technological, and international (PESTI) analysis to look at the external business macro-environment in which your business idea will operate
Explain how you think the findings from your PESTI analysis will impact your business and strategic plans and influence the value creation opportunities facing your business idea.
(Maximum 250 words).
Part E: Information Technology
What technology do you expect to use to communicate both internally and with your customers?
What must be in place in order to get your first sales? What will you add when your cash position improves?
Save your assignment as one Word document and name it mngt1711_Assignment1_YourName and Student #.
Did you include your student number and name?
Did you scan the document for viruses?
Did you complete all the required elements?
Did you use information and terminology learned in this course?
Did you support your statements with specific examples and external resources?
Did you cite references, using APA citation style?
Is your report grammatically correct, clear, and well organized?
Did you use a spell checker?
Did you proofread your document?
Submit your assignment via the Blackboard Assignments Submission tool under Assignments on the left hand navigation.
In Canada, restaurants, and bars together added up more than $60 billion annual sales in the year 2017 and this industry provides more than 1 million employment in Canada (Hobin et al., 2017). The fast-food restaurant industry in Canada has been showing the annual growth of 4% in last five years. On a common day, 17 million Canadian people visit restaurants. Hobin et al., (2017), supported this by saying Canadian people have a more direct, personal and frequent connection with fast-food industry. In Ontario, consumers of fast-food industry contribute to economic growth and salary increased in this region by 2.6%. In Ontario, household spending has been increased by $21 billion in 2016-2017 (Belás et al., 2015). In Ontario, Canadian owe %1.79 for every dollar of disposable income (Lang & Heasman, 2017). Consumers’ preferences in the restaurant industry are an important factor and consumers now believe in fast- casual and fast-delivery services. It shows that opening of a restaurant in Ontario will be a profitable decision.
Royal Chinese Restaurant is going to open at Grand Bend in Canada. Grand Bend is one of the most beautiful beaches in Canada and people here can enjoy a beautiful sunset. Royal Chinese Restaurant is going to open on 1st of April in 2018. The planning process of the restaurant is almost over. This restaurant will be a green restaurant and it will be a new concept in Ontario. This is going to be an environment-friendly restaurant as it is going to ensure zero-waste to the environment, the kitchen will not emit harmful gas, the supply chain will be green and carbon footprint will be below the average. Royal Chinese Restaurant is going to provide Chinese cuisine to the customers and this restaurant will have rooftop facility and outside seating availability will make it more close to nature. This restaurant is going to have the commercial interior and exterior with the theme ‘back to nature’. Slight touch of green will also be there on the roof. In Ontario, Canada, Chinese food is famous and there are many Chinese restaurants are already present. This restaurant will have the USP of rooftop seating and best quality, authentic Chinese food from Chinese chefs.
Royal Chinese Restaurant will provide world-class Chinese foods for the consumers. It will be operating between 11 am and 11 pm. The offerings of the restaurant will be various types of soups, chicken roll, egg rolls, fried chicken, salad, squid, shrimp dishes, noodles, Chow Mein and other Asian dishes. Alcohol permission from Government is yet to come. This restaurant will be 60 seated with ergonomic chairs and sofas. It is going open its website and people can also order food for delivery. It is also enrolled its name in food e-commerce where people can find its name and order their food. Royal Chinese Restaurants will deliver the food items within half an hour in any part of Ontario. The target customers of Royal Chinese Restaurants are upper-middle-class people as pricing will be premium pricing. The upper-middle class section of Ontario can visit this restaurant with family and premium pricing will attract the customers for best food quality. In Ontario, tourists also visit in large numbers; this restaurant is going to attract them as well. Competitors in the market are Gene’s Restaurant, Golden Lake Chinese Restaurant, Fine-A-Dine and Precious Chinese Restaurant.
Canadian hotel industry was worth around 17.5 billion Canadian dollars in 2014 and this calculated rate can enhance any kind of companies to move on to this industry. The basic accommodation revenue is around 17 billion dollar since 2009 and the amount has been increasing year after year (Hamilton & Webster, 2015). This amount of revenue is creating a huge influence in the hotel industry and this is the reason Royal Chinese Restaurant is a good option to start a business. Some of the hotels are best rated in Canada and almost 64% occupancy rate has been found in 2016. This is an impressive figure and this is the reason innovative procedure like e-commerce amalgamation, environment-friendly hotel structure is the key factor in this nation. 130.9k CAD is considered as the value of per room in Canada and from the statistic, it was found that 134.1k CAD will be generated in 2018 and it can be raised the bar form the previous year. So considering all these aspects of business growth, accommodation demand, schematic beauty Canadian business flow in the market and generate a return for almost 3 or 4% increase in every month is the biggest aspect for the development of the hotel (Kew & Stredwick, 2017). Functional capacity and legal contract form government also help this industry to flow their business market. Regional investments in most of the hotels are impressive as the expected outcome of the review is beyond that level. Investment ratio and expected outcome in depend on the company outcome and industry exhibits (Botha, Kourie & Snyman, 2014). In term of key growth market the transaction ratio of the industry influence the marketplace for the development of Royal Chinese Restaurant. The green key global aspect is the key association that incorporated with this hotel so that eco-rating and environment programs can be highlighted in that hotel.
An integrated model of business change is the correct evaluation of managing a small scale successful business. There are ten things that needed to be implemented in small business to grow the business at the heist level of success.
Managing cash is the first aspect of starting a business. In most of the cases companies are become bankrupt due to lack of money and that is the reason cash planning is the most important aspect of any startup company (Еlena, 2017). Proper supply chain management and inventory theory also maintain correct payment and provide market confidence to the company.
Data based culture is another aspect that implemented for the development of making of the track of financial plan and support and applies the key performance indicator in business. Tracking of that performance help to make resources for the company and make the business keep track of development and market enhancement (Blahová, Pálka & Zelený, 2014). Cultural ethics and relationship with customers are also impacted on the business and that underpinning the sales and marketing procedure also.
Engaging and deciding a lean planning for regular basis is another important aspect of understanding the assumption of the market and deliver the correct way of small business cases. 60% of the business case fails in Canada due to misassumption and ongoing adverse effect of financial problems.
Product and services are the next important factor for the development. The company needs to understand their target market and for that reason, they can set their pricing strategy and also set their long-term vision for next 20 years (v Hair, 2015). The product line and supply chain management is the key aspect of the development and that development transmitted in terms of revenue.
Recruitment strategy and retaining talented people are another key aspect that encourages business scenario for enhancing met of business market in globally. Talented people are the asset of the company so better hiring decisions help the organization to grow their cultural position comparing to other companies. Efficient employees need to retain for the development of startup business. In case of, Royal Chinese Restaurant people from hotel management background has to prefer as they know the best process of customer handling and managing the business (Pikhart, 2014). Leaders also make some innovative changes in that case and that certainly help for the development of the business.
Importance of social media is also important for the promotional aspect of the company. Incorporating innovation is not the solvent process of development rather promotions of those products are rather important for the company. There are some good and bad reviews from customers and through the online portal, the review can easily available for customers and they can choose from that product and services. For a startup hotel, this aspect is very much important to deliver proper promotion in business so that customers can know about the hotel innovativeness, their special offers, and facilities.
Understanding marketing and implement the proper strategy in business is another aspect of progress. Sales, marketing, return on investment and dealing with the right product is the key aspect for determining the market culture (Fogliasso, 2016). For a hotel, it is important to set their target market and doing their best marketing promotion so that the money spent on the development of the organization can evolve in the way of revenue. Advertisement and social media promotions are defining the marketing strategy and delivering those advertisements gather more people in their hotel and create a strong network that can supply deliverance for the entire year.
Customers query and provide the ultimate satisfaction is the key concern for the hotel and customer opinion and feedback is the important aspect of that. A negative criticism some time affects the image of the organization and customers are also reluctant about the organization, so this aspect needs to magnify in real significance.
An organization needs to know about its competitors. There are different positive aspects of competitors which directly and indirectly influence the company so for a startup company they need to introduce something new and innovating that can change the dimension of people thinking and people love to visit the place again and again and by default, the revenue of the company enhanced (Lee, Kao & Yang, 2014). As a startup company, the direct establishment is needed from the financial sector and activity planning and investor dealing is the right aspect to do that process.
Setting a high purpose is another aspect that needs to be loyal to the company perspective. Loyalty in terms of goals, profit margin and mission of the company incorporates the optimum contribution in business. Employees’ need to take the responsibilities to set their service at this level at best that can satisfy customers as well (Fitzgerald & Stol, 2014). In case of the hotel industry, environment-friendly nature, legitimate waste management, quality product and services and underserved entrepreneurship is essential for the development of the organization.
Political factor is affecting a lot in business and as the legislation, laws and legal activities are the concern aspects for that. The government has implemented certain rules over the new business and these businesses have to maintain that issue. A risk factor is the key factor of a political issue and that can come in charge into business in different ways. A risk factor can come up as federal level or at the local level where the better outcome can be drawn. Certain companies are dealing with some export and import business or marinating supply chain (Cearley, Burke & Walker, 2016). Government initiations for those companies are essential as they have to maintain laws and legislation imposed by the government authority. Increase and decrease in tax has also made an impact on the organization as the monetary transaction is aligned with the case. Direct business and government intervention get connected with that fact and that made a demand curve for the company. Some of the issues that influence business scenario like the rate of the technological invention or the acceptance of new technology are considered as the factor for political influence. Trade control is another fact that basically controls the entire trade in global basis and generates revenue for the market extension. In case of better trading opportunity companies are breaking their territory and extend their business and that actually help the business market and organizational outstretch in case of enhancing the service. Data Protection law and Environmental law are also imposed over any kind of organizations and government stability and agreement is liable for that issue (Lee & Heacock, 2014). Tax policy and maintenance is another key prospect that a business based on. So, in that case, intellectual property law can be imposed by the government and due to that reason, business enhancement occurred. There is some political instability like a recession, take over the company, disruption business operationand political disturbances are the important concerns for business and due to that reasons, a business operation may confront some serious situations. Local market can affect the political aspect and by appealing those market business can get a better feedback (Ab Talib et al., 2014). The government has imposed some tax on the vehicle and these processes are creating problems for supply chain management and logistics department. The goods and services influence the economic environment and that somehow linked with the vehicle permission, licensing and registration. In case of a change in regulation and impact on the economy is the may affect the business possibilities. Political stability is needed for the development of growing company and in that case, there are some influencing factors like tariff management, anti-trust law, discrimination law and corruption level movement all these are important for the dimensional change of the business.
There are some economic factors are also affecting the business and this business scenario delivering the economic performance as well as the development of the production and revenue generation. Canada has the 11th biggest economy and free trade agreement in the nation create more opportunities for the new business to establish their market in this situation. In case of the partnership business, the pricing of the shareholding comes to the marginal ratio and Canadian government also delivering their best to encourage these kinds of business on a global basis. The government has revised the negative export trends from 4.5% to 2.5% in last 15 years and for that reason, major business transaction and boosting any of business is effecting for the nation (Levitt, 2014). Certain giant companies are collaborated with the hotel industry in Canada and invested some large amount of money to maintain the flow in the business. Some of the hotels are allocated their rooms more than $500,000 and this price remains confidential as the transaction amount is so big that companies are framing their economy like this. There are some factors that can influence this business and deliver the right choice to choose this kind of business. In case of Ontario, Agriculture and forestry are one of the important parts of their region so the rich amount of farming and resources can be available from that agricultural success. The sum of revenue evolved through each accessible room in the business district and in Toronto hotels augmented 16% in 2016, which CBRE dignitaries to produce by an added 8% in each of the next two years, this is a huge perspective for any company to start up their business with hotel or hospitality industry (Ugochukwu et al., 2015). The economic market is also recovering as the job market of Canada in developing their natural and more than 50,000 new jobs are coming for their people. So employment is a big opportunity to sustain the economic market and holds the economy for the next 10 years when the business opportunities and chances will be high and different multinational companies and hospitality sectors try to set up their business in this nation.
Figure 1: Canada Annual net Job Gain and Loss
(Source: Statistics Canada, 2015)
Numbers of factories workers are another aspect of economic extension. If there are more numbers of workers are involved in a project then national economy also uplifted through these industries. Investment has been done from companies and that allocated employees for the work meanwhile less of interest of disaster in company administration may destroy the backbone of the economy. In Ontario, numbers of small and medium enterprises in 1000 population are 36.3 and that evaluated the better business chances for the development of business in this region.
Figure 2: Business employees and provincial population.
(Source: ic.gc.ca, 2017)
Though it is well unstated that small businesses create entirety over all firms, in small these firms are is not a general acquaintance. Of the 1,167,978 employer businesses energetic in Canada, micro-enterprises represent 54.1% of all private employers, which is the major Small Medium Enterprise assemblage. In case of enhancing business in the hospitality industry, there are better chances for business progress and for that reason, it is a good opportunity to start this business (Ganzaroli, De Noni & van Baalen, 2017).
Growing popularity also helps to maintain the social networking system and develop the continual challenge in the market to be the best organization or service provider globally. Social networking and management help business opportunities and change the traditional method into a new procedure. Environmental change is also liable for this aspect and in that case, the change of taste for people is the most important issues for the development of the business. Some of the people love to heavy foods rather some of them are happy with light dished. So beginning a startup business helps the people to rethink their choice and taste. Their taste and change in lifestyle is the main concern for the hotel and they tried to meet the need of customers through their variety of deliverance (Sovani & Jayawardena, 2017). Attitude towards green and ecological development is also highlighting over the people as they love this kind of environment and happy to be there. So hotels are accumulating these facts and incorporated more greenery in their hotel premises. Social classes are another factor responsible for business enhancement. There are different classes of people and their tastes and choices are different in that case. In another word, there are different genres of people and they have different financial stages so the availability is not same to access the hotel. Family size and structure is another prospect in which the business depends on. Hotel authority needs to take different marketing strategy for that reason (Nicholson, 2016). If the population growth rate increases then business opportunity also increases as per the ratio, so this is a huge chance for hospitality sectors to develop the business in the modern market. Attitudes towards the quality are also a concerning factor for the business extension and through this process, there is an increment of sales product (Mohan, Strobl & Watson, 2017). . Different marketing strategies may be implemented by the company but there are some maintaining facts of social attention for the company that actually differ the company form others.
International aspect is completely based on the relationship with other countries and in this section the concern thinking of the nation related to the trade agreement and business opportunities from other countries. Export and import are the most common terminology that used in this section but the best impact can be drawn from Supply chain management and logistics operations (Bartl, Kannan & Stockinger, 2016). Canadian economy which relies strongly on exports and oil prices and raw materials are the concern factors and the Canadian government has taken this part of the business on a serious note and most of the revenue earned from this section used in the small or medium scale of business. The process also boosts Europe bilateral trade and stimulates the production and delivers more production. This thread chain continues to boost the action and the increase in GDP is the most highlighting fact of that process. 81 billion investments have been planned by the Canadian government and that focuses on the ecological infrastructure. Global trade policies also protect Canada to do external affairs safely. This helps in supply chain and customers networking. Globalization in business helps in this process and that deliver better opportunities for business and other nations are doing their business in Canada just because of that. So a legal transaction and beneficiary collaboration are processed in that situation. Geopolitical risk another factor is liable for financial risk channel and modern supply chain management (Labonté et al., 2015). European economy and the rise of emerging market in Canada is the reason behind the new economic change and that significant change delivering more business opportunity in the hospitality industry. Due to this reason hotel industry and their operation is a good choice to startup as a new business procedure. In case of future policies, there are enough chances to make political change decisions and the legal relationship may confront a massacre. International relationship may get a threat on that occasion and logistic and supply chain management and export of resources may decreases. This temporal change in execution in business creates minimum risk for the business. Canada has good relation with European countries and Middle East also and they has imported some resource material from their land so it is a kind of economic transaction that basically help international business arena for Canadian business (Radnejad & Vredenburg, 2015). Business opportunity and risk data factor is the most important section for the development in any kind of business in Canada and majority of the job vacancy is created in that section that develops the economy of Canada.
In case of Royal Chinese Restaurant, the hotel is situated in Ontario, which is one of the most influential places in Canada and all these external factors influenced the business at the level best way. The political aspect is the first aspect of an external factor and business establishment is depending on that fact. For an establishment of the hotel, some legal procedure like legislation, paper works, and land accession is required. In case of the establishment, most of the Canadian laws are supporting business acceleration and that somehow affects their business progression. The second aspect deals with the economic state of the nation and the possible way of influences resources in terms of money and material so that business acceleration can occur. The national economy also depends on the optimized method of supply chain management and the supplier relationship with the nation (Doloreux & Lord-Tarte, 2014). In case of increased number of revenue better change management and innovative perspective is necessary for the development of hotel business. Introduction of trees in rooftop and green color of the hotel is influenced customers with greenery and importance of trees in the world. People taste and their choice is another aspect that determines the nature and want of people and that somehow affecting their business and culture in Canada. It is a proposed work and going to be placed in April, so people change taste is the key issue in this social factor and that impacted over the business market and target market (Benhabib, Perla & Tonetti, 2017). The international market has a great impact on this kind of business as most of the economic transaction and legal procedure controlled by these international policies. Globalization is the most important factor for this reason and resourced form other countries and their logistic management, export and imports all these are related with the target market and bilateral trade issues that impacted better business in terms of hotel management.
In present days, it is very important to incorporate information technology in hotel management. It provides better establishment for this industry to mark their position in the modern business scenario. In case of a marketing strategy, it plays a key role to reach this service to customers. In modern scenario, social media and technology are inter-related with each other and for this reason, customers can check company’s website and check the available of service they have in this hotel. Technological aspect is the best part in a hotel that needs to be implemented for the better accessible condition of the hotel. Hotel booking over online process is the first and foremost aspect in this regards and people can access this process just because of enhancement of technological progress. Information on overseas hotels and information about the availability of room all these are notified by from the website so this is an innovation of information technology (Meliciani & Savona, 2014). Money transaction in the hotel and deliver money in an easy way is also an implementation of information technology. Discounts on rate and special events in hotel all these are notified by information technology and that somehow affected better business scenario. Technological aspects of innovative training and development management also deliver better development for employees and that reflected in customer retention in the hotel. In view of the dominant significance of IT applications in the tourism and hospitality industries and the lack of published articles that appraisal the current developments in this writing and that provide the biased information in technological aspect of change management in business. In case of check in and check out also technological use is implemented in all the hotels. So Royal Chinese Restaurant will go to do the same as executed in all grand hotels. Housekeeping technologies make the job easier for the employee and they have done this effortlessly. In case of reservation, customers love to make a call and reserve their room or date of the event, and they also use their mobile wallet, debit card, credit card or net baking facility to transact the money for that day and book that place. Thus, in that situation also the importance of technology is justified in the hotel industry and Royal Chinese Restaurant will use all kinds of modern facilities for more accumulation of people. Centralize cyber camera is another technological aspect of safety and security in hotel and restaurant. Customers’ safety is the most important concern for the hospitality industry and they have implemented in mainly at the front office section and common places, pools, parking areas so that any mishap can be mitigated in an effective way. Royal Chinese Restaurant will also do the same as they also maintain the value of their customers and wants that their customers will find that much comfort that they feel at home. In case of events, these situations are mainly faced by the organizations so security camera is important in those situations. Online coupons, mobile ordering, digital menu board, all these technologies are important for the enhancement of business. Through this online menu card, customers can pre-planned their order also aware of the rates and compare the rate as per the quality of the foods. Another aspect is mobile ordering where customers’ can order their food from home and Royal Chinese Restaurant will do the home delivery in Ontario within an hour. Thus, there are all possible good opportunities the customers can get from this hotel that will start in April, and that will incorporate all the modern technologies and facilities that big restaurants in Canada can deliver. These possible changes can evolve the standard of the economy also, as global people also come at this restaurant so globalization aspect persisted in that hotel. The hotel is free from carbon influence and topmost waste management is implemented in that hotel and these are only possible by the effective technological use. Global people can change the economy and customers accumulation increase the section of GDP for Canada and this will be the best outcome that a restaurant can do from its part for the national economy. For the eco-friendly environment, automatic biodiesel converter will be used in this hotel and this is a technological conversion as the oil waste will become fuel and use of the vehicle (Kew & Stredwick, 2017). So these changes are the possible only cause of significant use of rich technology and implement those technologies for the development of the business. Webcam enabled monitoring and LED alert system will be used in Royal Chinese Restaurant so the working efficiency will be under the surveillance and high-temperature alert of power soaking can be determined by the restaurant authority.
Therefore it can be concluded that resultant and hotel industry in Canada is one of the growing industry that can enhance their market in all over the nation. The Canadian government has taken this initiation to support this kind of startup business so that better economic facilities can be drawn. There are different external factors that affecting the business and that influence the business in terms of channelizing their system in marketing and extension opportunity. In case of Royal Chinese Restaurant, better management holds the business objectives in Canada and provides them quality foods that hold the business culture. Government initiates some facilities for their business development and that influence hotel and restaurant business market in terms of policies and development. Technological innovativeness influence in Royal Chinese Restaurant also and they are trying to support this business in respect of implement different kind of technological features. The restaurant will be showcasing eco-restaurant concept and customers who will come to the restaurant can feel the vibe of nature in the atmosphere. The rooftop pace also covered up with trees and all that also feel good concept for the customer and they love this kind of hotel where the natural atmosphere can be felt. Thus, Royal Chinese Restaurant will be doing their business as all the supporting aspects are with them and Canadian government also widens the path of their business so it will be a good perspective to start up the business in Ontario, Canada.
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