Running Head: WAKATOBI

“Wakatobi” - an Indonesian Restaurant

[Name]

[Institution]

[Date]
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Acknowledgement

For completing the business plan, I had taken the help of different websites and internet sources for

gathering relevant as well as accurate data sets related to the subject matter. Also, through secondary

data collection, it has assisted in a successful gathering of required information necessary for starting

any business. Furthermore, with the help of secondary data, time as well as financial resources have

been saved and thus do not add to the cost of preparation of the final business plan. Also, by

considering a business plan and templates of other competitive firms engaged in the same business

line, a brief overview has been obtained, which has eased in accessing key concepts and elements of

starting new business operations.

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Executive Summary

The present business plan is prepared for guiding Wakatobi restaurant for its successful launching in

London, including different places' viz. Bayswater, Nothing Hill, Soho, Colindale, and Birmingham

city area at one time. The main motive of establishing such Wakatobi restaurant at a one-time

launching to provide one quality services to the consumers coming to all the restaurants in different

places. Furthermore, this report will streamline its feasibility aspects as nowadays tourism, as well as

the hospitality sector, is developing and growing at a rapid rate, so the idea of opening an Indonesian

restaurant will be a profitable deal for the Wakatobi restaurant. Also, by doing financial forecasting

along with required assumptions, it will provide a base for implementation of a business plan made

and allocation of available business resources in an effective manner for conducting smooth business

operations.
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Table of Contents

CHAPTER 1: INTRODUCTION ........................................................................................................................67

1.1 BACKGROUND ..................................................................................................................................................67
1.2 SCENARIO............................................................................................................................................................67
1.3 BUSINESS OPPORTUNITY .......................................................................................................................................78
1.3.1 The rationale for the Business idea .......................................................................................................78
1.3.2 Target Market..........................................................................................................................................78
1.3.3 Customer and Accessibility .....................................................................................................................89
1.3.4 Business Model .......................................................................................................................................89
1.4 STRUCTURE OF THE WORK.....................................................................................................................................89
CHAPTER 2: BUSINESS OPPORTUNITY ...................................................................................................... 1011
CHAPTER 3: FEASIBILITY ........................................................................................................................... 1415
3.1 MARKET RESEARCH METHODOLOGY .................................................................................................................. 1415
3.1.1 Defining Research Problem ............................................................................................................... 1415
3.1.2 Design for the Market Research ........................................................................................................ 1516
3.1.3 Information Types and Sources Required ......................................................................................... 1819
3.1.4 Proposed Method of Data Analysis .................................................................................................. 1920
3.1.5 Formulation of Findings ..........................................................................................................................20
3.1.6 Ethical Issues ...................................................................................................................................... 2021
3.2 MARKET RESEARCH TO IDENTIFY BUSINESS OPPORTUNITIES .......................................................................................21
3.2.1 Data Collection – Secondary ............................................................................................................. 2122
3.3 INDUSTRY OR MARKET ANALYSIS ............................................................................................................................24
3.4 ORGANISATIONAL FEASIBILITY ........................................................................................................................... 2526
3.5 FINANCIAL FEASIBILITY ..................................................................................................................................... 2728
3.6 RISK EVALUATION ............................................................................................................................................ 2829
3.7 RESOURCE SUFFICIENCY ................................................................................................................................... 2930
3.7.1 Financial ..................................................................................................................................................30
3.7.2 Technical ............................................................................................................................................. 3031
3.7.3 Human ................................................................................................................................................ 3031
3.7.4 Locational ........................................................................................................................................... 3132
3.7.5 Organisational.................................................................................................................................... 3132
CHAPTER 4: STRATEGIC ANALYSIS AND BUSINESS MODEL ........................................................................ 3132
4.1 PORTER’S GENERIC STRATEGY ........................................................................................................................... 3132
4.1.1 Cost leadership ................................................................................................................................... 3233
4.1.2 Focus ................................................................................................................................................... 3233
4.1.3 Differentiation .................................................................................................................................... 3233
4.2 SWOT ANALYSIS ............................................................................................................................................. 3334
4.2.1 Value-added ....................................................................................................................................... 3435
4.2.2 Values added chain .................................................................................................................................35
4.2.3 Resources ............................................................................................................................................ 3536
4.2.4 Capabilities ......................................................................................................................................... 3536
4.2.5 Business canvas models ..................................................................................................................... 3637
CHAPTER 5: BUSINESS PLAN REVIEW ....................................................................................................... 3940
5.1 OVERALL ASSESSMENT OF BUSINESS PLAN .......................................................................................................... 3940
5.1.1 Product or Service idea ...................................................................................................................... 3940
5.1.2 Legal issues ......................................................................................................................................... 3940
5.1.3 Financial requirements ...................................................................................................................... 4041
5.1.4 Risk issues ........................................................................................................................................... 4041
5.1.5 Marketing matters ............................................................................................................................. 4142
5.1.6 Organisational feasibility .................................................................................................................. 4142
5.1.7 Overall resource sufficiency .............................................................................................................. 4243
5.3 GANTT CHART................................................................................................................................................. 4243
5.4 CRITICAL SUCCESS AS WELL AS FAILURE FACTORS OF THE WAKATOBI RESTAURANT BUSINESS ................................... 4445
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5.4.1 Targeted marketing activities ............................................................................................................ 4445

5.4.2 Quality service and food .................................................................................................................... 4445
5.4.3 Empowered and experienced staff ................................................................................................... 4546
5.4.4 Realistic financials .............................................................................................................................. 4546
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“Wakatobi” - an Indonesian Restaurant

1.0 Chapter 1: Introduction

1.1 Background

With the creation of a new restaurant, it will be aimed at providing unique as well as relaxed

dining experiences to all the business clients and customers coming to the Wakatobi Restaurant. By

conducting in-depth research and study, all the aspects related to the starting of new business have

been identified as well as understand for smooth business operations. Proper planning and strategies

will be made for the restaurant functioning in a practical as well as efficient manner. Also, by

formulating a sound budgetary plan and estimation related to business expenses, it will provide a

base for the restaurant in undertaking its business functions in a much appropriate manner

(Chambers and Humble, 2017). Allocation of business resources can be done accordingly, thereby

minimising all the unnecessary cost expenses amount as incurred due to lack of planning. With the

help of the adoption of standards and norms as used by other profit-making companies of the same

service industry, it will assist Wakatobi restaurant in gaining a competitive edge as well.

1.2 Scenario

The main aim of creating Wakatobi Restaurant in London city with the launching of one

time at several places is to serve the customers with a variety of different types of quality services

and options. The services are offered at locations including Bayswater, Nothing Hill, Soho,

Colindale, and Birmingham. Along with the central kitchen and its related business operations, it

has ensured that all the goods and services rendered are hygienic as well as of better quality. It has

also provided options where all food are prepared more efficiently, thereby focusing on delivering

one taste for all restaurant to its customer base at large (McKeever, 2016). Furthermore, emphasis

will be made on meeting the satisfactory needs of different types of business clients as well as

customers pertaining to their criteria or demands. At one time, it will be coming up with its services
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at different places for rendering services as per the current market and customers’ needs.

1.3 Business Opportunity

1.3.1 The rationale for the Business idea

With the help of business idea, it will provide a large number of consumers with a new and

unique taste in terms of food going to be served several different types of places. By launching such

business operations, it will help both the Wakatobi restaurant as well as its customers in achieving

their desired goals and needs in different forms. Furthermore, by undertaking such a business, it will

provide high growth and career development opportunities in the coming future period. In the

recent time period, there has been an increase in the growth of tourism as has well as the hospitality

sector, which has become one of the major factors in the adoption of such a business idea. Also,

many business clients and young ones prefer outing for their purposes and choose to go to different

restaurant places for having unique experiences.

1.3.2 Target Market

It is essential for every organisation to focused on the market place where it wants to start its

business operations. Target market helps the restaurant in deciding that segment of the population,

i.e., that customer base who is interested in using services and goods being offered by the Wakatobi

restaurant at several places. As per the taste and trends prevailing in the market place, Wakatobi

restaurant can initiate its business operations at different places (McKenzie, 2015). For this in-depth

research and understanding is required to be made by the restaurant itself to make high profit and

production level along increased customer base. By understanding the market segments in which

business is going to be established helps the company in formulating effective and sound plans,

which in turn helps in gaining a competitive edge.

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1.3.3 Customer and Accessibility

Offering food and services to different types of customers as per their taste and preferences

helps businesses in achieving their desired goals and objectives of customer satisfaction along with

profit maximisation. The Wakatobi restaurant will be established at several places keeping in mind

easy accessibility and transportation facility for reaching such place by every type of customer,

including old age as well as a young one. Furthermore, for seeking advantages of Wakatobi

restaurant, it will provide its services online so that customers can enjoy from any place by placing

an order. Also, the focus will be made on the offering of unique, attractive as well as peaceful

dining environment to its customers and business clients for the attainment of their personal

experiences and business aims accordingly.

1.3.4 Business Model

When it comes to the business model, every restaurant owner ensures that a proper and

sound business model has been made for better performance in the market place. The business

model of a restaurant mainly encompasses its menu contents, target market as well as customer

base, marketing strategies being adopted for acquisition of market share. Also, it focuses on the

formulation of business and financial plans for better allocation of the available budget amounts to

different departments of the restaurant for its smooth functioning (Wynne, 2016). It considers

standards and norms as followed by its competing business firms for bringing in improvements in

their performance level as well.

1.4 Structure of the Work

The whole structure of work comprises mainly of:

Chapter 1: Introduction

It defines different methods and plans which has been framed by the Wakatobi restaurant for

making its business operations more effective and efficient in the target market place. Also, it
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provides details about the business model designed.

Chapter 2: Business Opportunity

Emphasis will be made on the identification of targeting market segments, marketing

strategies to be implemented for launching, and establishing of products and services along with

mission and vision formation with the help of research (Hopp et al. 2018).

Chapter 3: Feasibility

It is related to making a feasibility study of the organisation and financial aspects by

undertaking an analysis of both the industrial and market segment. By identifying risk elements, it

helps in mitigating loss factor.

Chapter 4: Strategic Analysis and Business Model

It encompasses of business model structured by the Wakatobi restaurant for gaining long

term benefits in the marketplace. Further, by formulating sound business strategies, it ensures

customers’ needs are appropriately met.

Chapter 5: Business Plan Review

By designing a business plan, Wakatobi restaurant can focus on its critical main products

and services to be offered, financial as well as legal requirements to comply with. Evaluation of risk

elements and measures to be undertaken for eliminating it with the help of effective marketing

strategies and plans focusing on proper resource allocation to business operations.

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2.0 Chapter 2: Business Opportunity

A term business opportunity means analysis of all the current opportunities as prevailing in

the market place. By analysing opportunities, it refers to the process of establishment of demand

function related with products and services being obtainable by the Wakatobi restaurant therein.

Also, its main emphasis is on understanding the market competition by conducting a study about

market conditions so that a clear picture of market trends can be drawn. Furthermore, it will assist

in formulating vision, mission, strategies, and plans in accordance with the business aims and

objectives designed (Ibidunni, Peter and Ogbari, 2017). Business opportunity analysis is considered

one of the most important business processes as it helps in making improvements in the overall

business process and performance level, thereby focusing on better growth and development of the

business as a whole. This chapter will streamline the following aspects of the business which are

needs to be considered while formulating a business plan:

 Mission – is to ensure that all the customers and guests arriving at the restaurant are

receiving professional, prompt as well as courteous service from the restaurant they are

dining in. Also, the emphasis has been made on maintaining the clean and hygienic

atmosphere, environment to customers, and other business clients having an interest in such

services. The mission is to provide a relaxed, creative, and unique experience of dining, thus

making them comfortable and happily satisfied after consumption of such goods and

services as offered by the Wakatobi restaurant. Also, providing customers with a wide range

of items being served in the menu card of better quality ingredients. Offering services at

reasonable prices with equal treatment, i.e., dignity and respect are given to every customer

arriving therein.

 Vision – With the help of the vision statement of every business organisation, it helps in

defining what the company is intending to achieve in the near future time period. The vision

of business defines the primary purpose for which it has been established, what are the

requirements for conducting business operations in a smooth manner (Brinckmann et al.

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2015). It also provides information about the goals and objectives of the business, which has

been framed at the beginning of the formation of the business plan. Wakatobi restaurant

primary aim is related to:

1 Adopting the style of premier home for restaurant infrastructure;

2 Dealing with quality products and services at reasonable pricing strategies.

3 To serve good experience and happiness to its customers by delivering delicious food and

reasonable pricing services.

 Product and Services - Wakatobi restaurant has aimed at providing food at several places

with the launching facility at one time. It will deliver its products and services at a different

location, including Bayswater, Nothing Hill, Soho, Colindale, and outside the Birmingham

area. There will be one central kitchen for the preparation of food in an effective as well as

efficient manner which will be delivered to outside branches of the restaurant. It will result

in the delivery of food of the same quality as well as taste to all the customers associated

with restaurants at different places (Correia, 2017). Also, the focus will be made on

maintaining proper hygiene and cleanliness in the kitchen as well as restaurant premises.

Furthermore, menu items have been framed as per the needs and demands, taste, and

preferences of target customers of that place for satisfying them and earning a profit.

 Positioning – It is related to the process that how a specific product, good and service of a

company, helps the customer in fulfilling its needs and demands which other competitive

firms' products and services are incapable of doing. It is considered very much crucial for

every business organisation to establish its brand image in the market place so as to acquire

large customers as well as market share. Positioning is related to the process of assessing

relevant market niche for its products and services, thereby having the main aim of

establishing in such a particular market area (Cruz, 2018). The Wakatobi restaurant has

emphasised on its positioning statement, i.e., defining speciality of its products and services
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being offered, targettedtargeted market segment areas, and defining why the product and

service quality is better in comparison to the competitor. Also, it provides a base for the

creation of brand value by defining quality assured by the Wakatobi restaurant.

 Scale and growth anticipation – For making a profit in the market, every business

organisation to deliver the quality products and services as compared to its competing firms.

Wakatobi Restaurant is undertaking its business operations at several numbers of places viz.

London, Bayswater, Nothing Hill, Soho, Colindale, and Birmingham city area as well.

Scaling of the restaurant can be done by first understanding the financial position of such a

restaurant business. In case Wakatobi restaurant is conducting its business operations in a

more effective and efficient way, thereby is capable of making a high and consistent profit

margin can scale up its performance by opening one more branch (Ho, 2019). Before

entering into the investment and marketing process of the new branch, it is required on the

part of the Wakatobi Restaurant to consult with professionals having an accounting

knowledge base. One should determine the viability aspects of the opening of such a new

branch by evaluating it in economic as well as monetary terms.

 Business model -

Core value- Wakatobi will be focusing on creating integrity, honesty, accountability, and

commitment to the customers as its core values.

Competencies- The restaurant will be developing its core competencies by determining its

internal strengths and also by investing within the capabilities that have been valued by its

customers.

Product- This segment of the Wakatobi restaurant involves a different range of products, such

as generic products, Core benefited product which in turn brings value to the customer (Cascio,

2015).

Partner and network- Wakatobi will be creating an extensive area network within the entire

UK and creating a partnership with different famous restaurants like Amrutha lounge, Bright, etc.
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Wakatobi will adopt Marketing- Different strategies for marketing and promoting its idea like

going social, creating a food app and reaching out to the food bloggers, etc. so that awareness can

be created in the minds of the people (Dan, Lior, and Daphna, 2016).

Services- The main focus of Wakatobi restaurant will be its services that is it will be providing

the best services to its customers by making them feel comfortable, serving prepared food with

delicious taste, quick service, and light music, etc.

Management- It involves the staff and the managers who have been counted as significant

persons in managing the restaurant in an effective and efficient way (Chambers and Humble,

2017). Managers will be possessing some competitive skills that include being consistent,

managing proactively, and improving the experience of the customer by investing heavily in

advertising.

Target customer- The target customer of Wakatobi restaurant will be the high-class people,

youth, and family-oriented persons.

Cost- The high cost that will have to be spent by Wakatobi involves the labour cost, like

paying all the employees that are servers, kitchen crew, management, and the hosts. It also

includes the cost of getting the material for preparing the food and the beverage that has been sold

from the restaurant.

Distribution- The channel of distribution of the Wakatobi business involves a more massive

chain of intermediaries through which its goods and the services will be passed on to the

ultimate consumers. This includes online food apps, university canteen, theatres, etc.
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3.0 Chapter 3: Feasibility

The feasibility study helps every business firm in evaluating the viability aspects of the new

project in which investment is going to be made by the company (Shelton, 2017). By understanding

the technical as well as legal elements of the project, one can determine whether it will be profitable

or economically viable to make such investment therein.

3.1 Market Research Methodology

3.1.1 Defining Research Problem

a. Problem Formulation

Wakatobi Restaurant being one of the Indonesian restaurants is coming with its business

operations in London and at several different places, including Bayswater, Nothing Hill, Soho,

Colindale, and o Birmingham. The launching of Wakatobi restaurant at different places will be done

at one time with its central kitchen in one place for delivering food of the same taste to its

customers. The problem for such a restaurant can be related to the culture and services it is going to

offer to the customers in London and other places. It is very crucial for Wakatobi restaurant first to

understand the taste and preferences of customers of such a place where it is going to undertake its

new business operations (Li et al. 2019). Also, with the help of a research study, Wakatobi

restaurant can analyse the current market as well as customer taste and demand factors, which can

form the base for making high revenue in the coming future time period.

b. Aim of Current Market Research

To evaluate the feasibility aspect of the launching of a new restaurant at different places at

one time launching in London, including Bayswater, Nothing Hill, Soho, Colindale, and o

Birmingham areas.
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3.1.2 Design for the Market Research

a. Research Type

The market research is all about the process of analysing and studying the current market

trends and conditions to make a decision accordingly. It is related to the process and gathering

relevant and accurate information about the particular subject matter of the research study to

ascertain and effectively make a decision (Otoo et al., 2016). There is a number of methods in

which one can undertake the research activities viz. Explanatory, descriptive, quantitative, as well

as qualitative research types.

For completing this research, it will be more valuable to undertake the Qualitative research

type as it is basically a type of primary explanatory research. With the help of the qualitative

research type, Wakatobi restaurant can gain deep insight into all the factors which are contributing

to the project management process. This type of research method helps in defining the research

problem in a much elaborating manner with the help of the formation of ideas as well as a

hypothesis for the ascertainment of best research related opinions. Data gathered in such type of

research can be done with the help of open-ended as well as conversational communication means

(Bewayo, 2015). Furthermore, this type of research relies mainly on collecting data from making

observations, i.e.; it lays emphasis on direct experiences of human beings provided related to the

particular research related subject matter. Wakatobi restaurant, by making use of qualitative

research type, can gather all the non-numerical data types from different sources and can interpret

data collected from the perspective of effective decision making.

b. Market Segmentation

The “market segmentation” is one of the processes with the help of which every business

organisation can identify its possible market target areas. Market segmentation is defined as a

research study on the basis of which a company can make a division of its business operations as

per the customers (Alt and Iversen, 2017). Also, it is related to dividing the whole market of
 Wakatobi 16

potential users and customers into different parts, groups, segments which are having different

types, as well as characteristic nature such as age, gender, income, interest, etc. Wakatobi restaurant,

by undertaking the following aspects, can do its market segmentation in a better and effective

manner:

 Demographic Segmentation – Market is segmented on the basis of demographics like age,

gender, income, education, family size, etc. The buying behaviour of customers is highly

influenced by the demographic conditions of the target market group. It thus creates an

impact on the demand level of the Wakatobi Restaurant, thereby affecting the profitability

aspect.

 Geographic Segmentation – Is related to a grouping of the market on the basis of

geographical areas and limits such as rural, urban, regional etc. Wakatobi Restaurant, with

the help of geographical feature, can segment its market as per the population density of the

region in which it is going to establish its market (Schabenberger and Gotway, 2017). It

helps Wakatobi in organising its marketing campaign in an effective manner according to

the needs of the customer.

 Behavioural Segmentation – Market is divided as per the behavioural characteristic and

decision making style, including usage, consumption pattern, and purchase or buying

behaviour, lifestyle etc. Wakatobi restaurant by conducting surveystudying demographics

can acquire knowledge related to the lifestyle and consumption pattern of users residing in a

place of business.

 Psychographic Segmentation – Is having its basis on factors such as attitude, personality

as well as lifestyle pattern. The buying behaviour of the consumer gets influenced as per

their own personality as well as lifestyle habits (Quinlan et al. 2019). Wakatobi restaurant,

by understanding the lifestyle and personality traits of its customers, can capture a large

market share.

 Price segmentation – By using this strategy, Wakatobi restaurant can charge a different
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price for similar product and services from a different customer base. By providing facility

such as the offering of discount, vouchers, coupons, buy one get one scheme on its services,

Wakatobi restaurant can drive pricing success as well as growth in profit margin.

c. Market Accessibility

Market Accessibility refers to the company’s ability to selling its own goods and services

across the globe. For every business organisation, it is very much important to frame an all-

encompassing business plan as well as strategies align with business goals and objectives to capture

noteworthy market share. Also, for gaining competitive advantage, it is very much important on

behalf of the business firm to make requisite changes in their business standards and norms being

followed (Mackey and Gass, 2015). By capturing current market opportunities as arising can help

Wakatobi Restaurant in increasing their profitability and productivity level.

By understanding the competition level, it will help the Wakatobi restaurant in the framing

of policies and strategies related to marketing activities to be undertaken for making of high profits.

Further, by adopting an oligopoly marketing structure, it will help the restaurant in dominating the

market place thus will provide a large market share and customer base as well. A number of barriers

have to be faced by every business organisation for entering into the new market place, which has to

be mould out in an effective manner. By understanding market norms, trends and making strategies

for entering the market can help Wakatobi Restaurant in conducting smooth business operations.

Also, it is required on the part of the company to make compliance of all the applicable laws, rules

and regulations as specified by the authority. Furthermore, a license is required to be obtained by

the restaurant pertaining to standard and quality norms.

Before starting a new business, Wakatobi restaurant should conduct research about its

potential customer and market trends (Lohr, 2019). By adopting different as well as an effective

marketing and promotional strategies, it provides ease of contact to Wakatobi restaurant in dealing

with its target customers.

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3.1.3 Information Types and Sources Required

For completing this type of research report, it will be required on the part of the researcher

to consider both the sources of data collection, i.e. Primary as well as Secondary means. For

gathering more relevant as well as accurate database related to the subject matter of the research

problem, it will be beneficial on the part of the researcher to make use of available data sources in

more appropriate as well as effective manner. Wakatobi Restaurant can collect the required

information and database pertaining to the phenomenon and subject matter of the research problem.

Information can be acquired from virtual means, i.e. with the help of personal experiences,

articles, notes, books, websites, annual reports, opinions and ideas of experts etc. As Wakatobi

restaurant is opening its restaurant branches at different places at a one-time launching, it will be

helpful in conducting smooth business operations in the long run time phase (Kumar, 2019).

Information required by the business varies from the nature of its use and applicability in different

types of business organisation. With the help of proper information, it assists the business

organisation in making effective business plans and strategies related to the manner in which

business operations can be conducted in much effective as well as efficient manner.

There are basically three main sources through which information can be taken:

Primary Sources – One of the most effective sources from where information can be

gathered by any scholar as well as the researcher is known as Primary source of data collection.

This source is considered as fresh or original database material which has been collected by the

researcher for the very first time in its own research studies. Information collected from primary

means is in its original form and has not been yet edited as well as interpreted. Furthermore, it has

not been evaluated and analysed as a result of which changes in the form and meaning of the nature

of information has not made (Ketefian, 2015). It has its main emphasis on individual thinking,

observations as well as experiments conducted. The main sources of Primary data collection include
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Books, articles, notes, government and legal documents. Also, with the help of statistical data,

surveys, research, experiments Wakatobi Restaurant can determine the market conditions and

requirements of the place where panning of launching new business has been made.

Secondary Sources – Is that means as per which information has been created by some

other source and is not first-handed. In this type of information source, data is collected by an

individual or any other party with the aim different from conducting a particular research study. The

secondary source of data material is that which comes up with the description, analysis as well as

interpretation of data gathered from the primary sources. Wakatobi restaurant by making use of

secondary data sources can have easy access to all the information which are of requisite nature for

the opening of new business firms (Etikan, Musa and Alkassim, 2016). It includes websites,

magazines, textbooks, journal articles etc. considering which Wakatobi restaurant can have an in-

depth idea about the market as well as customer taste and preferences, demand factors.

With the help of the Primary source of data collection, Wakatobi restaurant can collect

information by getting close enough to the subject matter of which information is required to be

obtained. It will help the restaurant in gaining deep insight into the particular phenomenon which

will further assist in making a decision in a more effective as well as efficient manner.

3.1.4 Proposed Method of Data Analysis

For making a proper interpretation of all the data gathered and collected, it will better for the

researcher to make use of thematic analysis means. Also, by using the various types of statistical

and mathematical means, Wakatobi restaurant can evaluate market trends as well as customer

demand for a particular product or service as being offered (Chambers, 2017). By using thematic

analysis, different themes have been prepared by the researcher conducting Qualitative research for

analysing data collected in a meaningful manner. This will assist the company in gaining deep

insight as well as understanding regarding the subject of research topic.

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3.1.5 Formulation of Findings

By conducting Qualitative research, Wakatobi restaurant has been able to evaluate all the

terms and conditions as prevailing in the tourism as well as hospitality market sector. It has been

able to identify all the current market trends, customer taste, preferences, interest, demands and key

elements prerequisite for conducting of smooth business operations. By conducting research and

survey,, Wakatobi Restaurant has been able to assess all standards, systems as well as norms as

adopted by the other profit-making organisations in the same market (Chatfield, 2018). Thus, it has

resulted in bringing in improvements in the overall efficiency level of Wakatobi restaurant business,

thereby increasing its profitability level as well.

3.1.6 Ethical Issues

For this research study, the Wakatobi Restaurant has complied with all the ethical norms and

quality standards as required for completing the whole research project. For gathering proper and

accurate data as well as information, the researcher has made use of different sources. No copy and

paste have been done directly of the matter ascertained with the help of research conductedd or

survey done. A proper and total rephrasing has been done of all the data set as well as information

gathered before making use of it in completing the whole research study. Also, all the data has been

gathered after taking approval from the website owner by taking in the subscription of such

webpages (Yulianto et al. 2019). Furthermore, a number of ethical issues have been faced by the

researcher in making a choice among different types of alternative provided for making the decision

accordingly. On behalf of Wakatobi restaurant, making choice among pricing policies and

marketing strategies to be adopted for gaining competitive edge has become one of the ethical

issues. For overcoming this, proper planning and budget have been framed for conducting smooth

business operations.
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3.2 Market Research to Identify Business Opportunities

For every organisation, market research demonstrate crucial role in identifying key elements

of the competitive market place. Market research is thus defined as one of the organised effort or

system by making use of which every researcher, as well as a scholar, can gather or collect relevant

information and data related to the target market and its potential customer base (Cosic, Shanks and

Maynard, 2015). For every business firm, undertaking activities of market research is considered as

one of the most important components while formulating business plans and strategies.

3.2.1 Data Collection – Secondary

 Trends in the UK related to the restaurant sector

In the UK, the hospitality sector is growing with an increasing phase, thus resulting in

continuous changes and development therein. Most of the companies as engaged in hospitality

services are making a high profit due to an increase in customer demand. From the past few years, it

has been observed by the consumers that there has been an increase in the number of both the vegan

as well as a vegetarian restaurant in the UK. Most of the country is now aware of the fact that a

large portion of food has been wasted across the globe in a number of restaurants which is to be

considered at the correct time. This large proportion of food being waste has to be taken into

account on a serious note with the help of preventive measures and policies formulation

accordingly.

Also, it has been assessed that the impact of such food being wasted is affecting the planet

and creating soil as well as another type of pollution. Packaging of food is done with the help of

aluminium foils and other materials which are harmful from the perspective of soil as well as land

fertility; thus, decreasing the capability of the soil to remain fertile. With better improved

technological advancement and development, it has assisted many of the companies dealing in the

hospitality sector in making improvement in their own business operations (Rehm and Drewnowski,

2016). Also, it has resulted in making improvement in its production as well as manufacturing-
 Wakatobi 22

related business function thus consequential in increasing overall efficiency level of company. This,

in turn, provides a base for the company in increasing its profitability aspect, thus making it capable

of capturing noteworthy market share and the customer base.

There has been growth in the restaurant sector business from the past few years because of

expanding economy along with the elevated nature of consumer sentiments. Also, it has been

noticed that the restaurant industry has shown growth with a positive rate in the year 2019. It is

because of the factor that most of the customers residing in the UK are habitual of dining in the

restaurant most frequently. Also, another reason can be related to the factor that there has been an

increase in the number of tourists as a result of which there has been growth in the restaurant as

well as hospitality sector in the UK. This has resulted in the development of the overall economy of

the country as well.

On the flip side, the UK casual dining sector is facing the most challenging as well as a

tough phase because of the fastest decline in the UK restaurant market place. It has been assessed

with the help of research conducted that because of several factors, this fastest decline has come in

the restaurant market industry in the UK (Ivkov et al., 2018). A number of both the political as well

as economic uncertainties has become one of the causes of bringing this decline in the percentage

rate of consumers of the UK eating or dining out in the restaurant.

 Factors preferred by customers while visiting the restaurant

Most of the customer considers a number of factors while dining at any of the restaurants in

the UK. Before going to any restaurant in the market place, it is considered as the most important

subject matter from the perspective of customers before making a final selection of the restaurant to

dine in. Following are the factors which are needed to be considered while making the selection of

the best restaurant among the given list in the market place:

1. Food type – The menu option which is provided by the Wakatobi restaurant to its customer

is considered as one of the essential factors which can make an impact on the customer
 Wakatobi 23

decision related to the choice of restaurant (Sheel, 2017). Also, choices and varieties which

have been offered by the restaurant attract a large number of the customer.

2. Quality and standard – Along with different types of food option and variety as given on the

menu card of the restaurant, another factor which is related to the quality as well as the

standard of food which is being provided to the customers by the restaurant.

3. Value for money – Along with the pricing factor, it is very much important for the restaurant

to charge the right value of money from its customers. Wakatobi should consider another

restaurant while charging prices for its menu varieties. Also, if the priced charged for the

food served is value for money, it will attract large customers and thus increases the

profitability aspects of the company as well.

4. Atmosphere – One of the most important factors for many restaurant business firms is

related to the kind of atmosphere; it is offering to its customer (Schuckert, Liu and Law,

2015). By providing a pleasant and environment-friendly atmosphere and culture along with

light music and lighting, factors attract most of the customers, which directly adds to the

value of the restaurant.

5. Pricing strategies – By considering the pricing scheme as followed by the other rivalry

firms in the market place, Wakatobi restaurant can formulate its pricing policies accordingly.

The rate should be charged by keeping in mind customer satisfaction as well, along with

profit maximisation (Jalilvand et al. 2017).

6. Location – Another important factor which is considered by most of the customers in

making selection of the restaurant is related to its location or geographical area where it is

situated. It should be easily connected with the transportation facilities so as to provide ease

to a large number of customer in getting access to it.

7. Service speed – The manner in which restaurant is offering its services plays one of the most

important roles in the mindset of customers. Courteous and speedy delivery of the food and

its related service can help the customer in achieving satisfaction level (Okumus et al. 2018).
 Wakatobi 24

3.3 Industry or Market Analysis

With the help of industry as well as market analysis, Wakatobi restaurant can determine

current market trends and customers taste, preferences. By making use of PESTLE analysis, it can

gain deep insight into market structure, competition level, business environment as well as

opportunities as prevailing in the market place.

Political- It is the factor that has a great impact on the hospitality industry or service

industry as it includes rules regarding tax reforms, legislations, non-stability of the government etc.

In case if the government is not stable, then the rules and laws also change frequently, which

negatively impacts the functioning of an industry (Vallati and Grassi, 2019). However, by

determining such regulations, an appropriate decision could be taken for minimising the effect of

regulation. For example- health regulations have been changing at a fast pace, so for sustaining in

the market for the long run, it is important for the restaurant openers to take care of rules and follow

it appropriately.

Economical- It involves factors such as inflation rate, consumer income etc. In case if the

inflation rate in an economy is increasing, it will be highly affecting the operations of the Service

industry or the hospitality industry. For instance- The prices of the ingredients will get high, and in

turn, the prices in the menu card of the restaurant also get high due to which most of the people

avoid for visiting the restaurant and this, in turn, affect the profitability of restaurant business. On

the other hand, if the disposable income of the consumers is high, this, in turn, increases their

purchasing power which induces them to visit and hang out with friends.

Social- There are various social factors which cause a huge impact on the service industry in

both negative and positive ways. Evolving lifestyle of the people leads to a greater preference

towards fast food, coffee and the carbonated drink on a daily basis. This creates a positive sign for

the service industry as there demand increases, and in turn, profits also increase (Rastogi and

Trivedi, 2016). However, nowadays, people are becoming more and more health-conscious, which
 Wakatobi 25

might affect the working of the industry.

Technological- Advancement in technology also acts as a major factor that influences the

smooth functioning of the industry. Developing automation by setting up the equipment, the

industry can make its operational process faster and easy which in turn create a positive impact as

the customers will be availed services on a quick base which makes them happy. However, the

training cost of an industry increases as the employee needs to train for using the modern and latest

equipment in an optimum way.

Environmental- It involves both internal as well as the external factors like using recycled

material and in implementing an appropriate policy regarding the waste management reflects a

positive sign for the industry as in turn it depicts that it is working sustainably (Islam and Mamun,

2017). On the other state, in service industry climate is the main factor that affects the quality of

food and its services.

Legal- It is very crucial for a hospitality industry work in compliance with all the legal rules

and legislations so that it could be able to create a well-known presence and attain its goals ethically

(Bismark et al., 2018). For example- Restaurant must take care of the health and safety laws while

preparing food and must create hygiene conditions for its customers.

3.4 Organisational Feasibility

Organisational feasibility studies the factors that impact in completing the project

successfully. The factor is an issue related to promotion, management expertise, proposed business

structure, ethical standards, knowledge of business practices, social, cultural values, government’

issues, all these are explained below as:

Issue related to promotion: As a new restaurants Wakatobi it need to attract lots of

customers the company can overcome the issues of promotion by obtaining the location of the

potential like railway station, bus stands, etc. restaurants can review its competitors and promote its

restaurant through attractive advertisements (Bull et al. 2019). The issues that a company may face
 Wakatobi 26

is that it requires the huge cost of investments in the promotion due to which the budget of the

company may get imbalanced. Impact of promotion in positive ways will attract many new

customers as a promotion of the restaurant will create knowledge in the mind of people. The

negative impact of promotion is that Wakatobi is a new restaurant which will be required to be

promoted at a higher cost with the help of hoardings, advertisements on TVs, newspapers, banners,

etc.

Management expertise: The management is required at a higher level in the Wakatobi

because it launches its other restaurant at the same time at other locations. Wakatobi needs to

manage and coordinate it’s with another restaurant of Wakatobi so that it can maintain or deliver the

same the taste and work efficiency. When the management in the company is carried in the

expertise manners, then it helps the company to increase its decision making powers in betters and

quicker decision making (Gehrke, Wenige and Ruhland, 2019). It also helps to increase the rate of

innovation in the restaurants and supports the growth of employees with their development.

Proposed business structure: The business structure refers to the company legal recognition

for the organisation (Teece, 2018). The restaurants can adopt separate legal entity which is

responsible for its own debts and liabilities in the business. As Wakatobi is new restaurants and it

may require huge funds as the initial stage for launching of the new restaurant at different locations.

It can raise capital whenever it required by initials public offers. Impact of good business will fulfil

the immediate requirement of the funds by initial public offers (Visnjic, Neely and Jovanovic,

2018).

Ethical standards: The Wakatobi need to fulfil legal the requirement towards society. The

restaurant needs to fulfil the standards for maintaining the quality of the food product. The

restaurants should know the norms and regulations towards food for delivering the quality of the

product. Impact of the ethical standard is that the company is that when the organisation fulfils the

norm, it increases the quality of the product and services offered by the company. When the
 Wakatobi 27

company does not fulfil the ethical norms, then theirs are chances that Wakatobi may lose its

customers trust toward the restaurant's product and services (Konior, 2019).

Knowledge of business practices: The Wakatobi restaurant needs to be effectively achieved

the objective of the company by making the business practises more effective and efficient. Which

will helps in the growth of the restaurants by satisfying the customers, understanding market

competition, and making good relations. Good business practices will impact the company to

promote its business in the foreign, which will enable organisation to upsurge its goodwill and

reputation in the domestic market as knowledge is the key past required in the business for its

success as well as growth (Serfontein, Drevin and Kruger, 2018).

Social, cultural values: The restaurants can maintain honesty and open-minded, which will

impacts to increase customer loyalty for the company, and it will attract the pool of new customers

towards society. The social values of the organisation cannot be accomplished with the help of the

markets price of the services (Priem, Wenzel, and Koch, 2018).

Government issues: The organisation may face many governmental issues like taxation,

governments, animal rights, etc. The Wakatobi get impacted when the taxation policies get rigid,

and the organisation needs to pay a higher amount for the tax which will increase the prices of the

product and services offered by the company which affect the markets’ compatibility of the

organisation (Bull et al., 2019).

3.5 Financial Feasibility

As per the financial feasibility aspect, it has been evaluated that fund has been arranged by

the Wakatobi restaurant from its own sources. Revenue from the sales volume expected to be

attained in year 1 is £3445. Also, the amount of net profit forecasted for the first year of the

Wakatobi restaurant is £2228 with selling price per unit of £55. The fixed cost for the first year of

carrying on business operations by the Wakatobi restaurant is £215.

 Wakatobi 28

Evaluation of the financial position of the Wakatobi restaurant for the coming three year

time period with its calculation is mentioned in the appendix.

3.6 Risk Evaluation

It is a process of analysing and identifying risk factor associated with future business events.

For every business organisation, it is very much important to evaluate and assess all the business

processes for determining and measuring risk if any. Being a new business firm, Wakatobi

restaurant has to arrange funds by its own as it is not coming up with the activity of issuing share

capital from the public (Sanchez et al. 2015). Making an arrangement of funds needed for staring

business operations by the Wakatobi restaurant has become one of the fundamental business aspects

for it. All the risk factor will be related to the business owner itself as it not taking any financial

assistance from any other party.

By leasing out some of the business assets, Wakatobi restaurant can mitigate some of its

initial start-up equity risk to some extent. It is required on the part of the business owner to frame

strong and effective risk management plans as well as strategies for dealing with all the

contingencies going to be arises in the near future. The business plan for new business operations

should have realistic characteristics in relation to determining how much amount of cash will be

required for achieving a breakeven point in the business. Loss going to be from an unsuccessful

business will be bear by the owner itself in the initial phase. By inviting public subscription,

Wakatobi restaurant can fulfil its financial needs by limiting the liability of such holders up to the

amount subscribed by them. This will help the company in minimising its chances of occurring

losses and the availability of financial resources.

Also, by making use of Risk assessment matrix, Wakatobi restaurant can identify risk level

by taking into consideration different aspects of probability & likelihood against the level of

consequences of severity nature (Wei et al. 2018). It helps the management of Wakatobi restaurant
 Wakatobi 29

in making an effective decision by monitoring risk situation and its impact on the business

operations in the long run.

(Source: Risk assessment matrix, 2019)

3.7 Resource Sufficiency

After ensuring feasibility aspects of the new business project, the next fundamental business

practice for the Wakatobi Restaurant is related to considering all the resources essential for

conducting business operations properly. Following are the important business resource of

Wakatobi restaurant:
 Wakatobi 30

3.7.1 Financial

One of the most important business resources is finance or funds requirement of the

company for undertaking business operations in an effective manner. By framing financial plans,

Wakatobi restaurant can make its decision related to funding utilisation. By understanding,

budgetary frameworks will help the firm in managing its business expenses (Dvorsky, Sopkova and

Janoskova, 2017). Also, it will assist in making the proper and relevant allocation of available

financial resources as per the needs of different types of business departments. It thus helps in

minimising unnecessary cost expenses as associated with the most unproductive business part.

3.7.2 Technical

For gaining competitive advantage in the market place, it is very much important for every

business organisation to adopt the best techniques in its business operations. It is very much

important on the part of Wakatobi restaurant to conduct market research about technologies used by

its competitive firms in capturing market opportunities as and when it is arising. By implementing

sound and advanced technological factors in the business operations, it will help the Wakatobi

Restaurant in making improvement in its business performance level. It will also help the company

in increasing its overall profitability as well as production level, thereby adding to its customer

base.

3.7.3 Human

For every business organisation, human resource is known to the most crucial business

assets. Without human resource, no business organisation can carry on its business operations in an

effective manner. Also, it will become impossible for such business organisation to even achieve its

break-even point (Noe et al., 2017). By hiring best and experienced human personnel in business, it

will assist Wakatobi in making decisions more effectively. It will also help such restaurant by

providing expert knowledge and ideas related to the acquisition of better-improved business plans
 Wakatobi 31

in line with the business aims and objectives framed.

3.7.4 Locational

It is related to the geographical location of the business. By conducting a deep

surveyinvestigation, the Wakatobi restaurant can get an idea about the best location and area where

it can establish its new business firm. Having a proper understanding of the market structure and

customer base of a particular area will help the Wakatobi restaurant in implementing its marketing

activities accordingly (Cascio, 2015). Thus, by delivering such products and services of the best

quality and as per the demand of a particular targeted market will help Wakatobi Restaurant in

capturing market share and increasing its customer base.

3.7.5 Organisational

In every restaurant business, it is very necessary to employ requisite staff and human

personnel in the business as per the needs. Also, the organisational structure of the Wakatobi

restaurant framed should be align with organisation’s aim (de Guimarães et al. 2016). It should be

formulated as per the needs of business functions by undertaking team meetings, discussions etc.

With the help of organisational structure, employee’s working in the restaurant will be able to

understand their job role and can perform in an effective manner as well.

4.0 Chapter 4: Strategic Analysis and Business Model

The existing competitive advantages of Wakatobi can be analysed with the help of using

“Porter’s generic strategy”, SWOT analysis, etc.

4.1 Porter’s Generic Strategy

It helps the company to know various different ways in which it can make a competitive

position on the market. It aims to ensure the sustainability of the profit for the long run. The two
 Wakatobi 32

basic types of competitive advantages are for low cost or differentiation, and the basic three generic

strategies are “cost leadership, focus and differentiation” for attaining the typical performance in the

company (O’Hare, Stewart and McColl, 2018). All these are explained below:

4.1.1 Cost leadership

In this strategy, the producer produces the goods and services by keeping the price of the

product low. As it depends upon the “economies of scale”, technology, admittance to the raw

materials (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). As the low-cost producer exploit

the resources and gets overall cost advantages. Wakatobi if adopts low-cost strategy then it can able

to sustain the cost leadership and achieve as an averages performer in the industry. Then Wakatobi

can take command on the prices in the near future.

4.1.2 Focus

In this strategy, the producer focuses on narrow competition. The focuser selects one

segments in which it can produce the goods and services for the segments of that particular, which

serves as an exclusion of that segment. The focus strategy is bifurcated in two variants that are cost

focus in which the organisation seeks advantages overs the cost in the targeted segment. Another

focus strategy is differentiated cost segment on which both the targets markets and delivery of

goods and services are unusual. If Wakatobi adopts this strategy, then there are many chances that

the strategy may fail as the company is now in the markets and to select a different market segment

with a high level of innovative product and services by Wakatobi may not be successful (Firoz

Suleman, Rashidirad and Firoz Suleman, 2019).

4.1.3 Differentiation

This strategy focuses on seeking valuable buyers with the adoption of the differentiation in

the price. By offering the product and services at the differentiated price, it creates a unique position
 Wakatobi 33

itself and meets the need of the buyers. This can be rewarded as the uniqueness with the premium

price (Glasgow, 2018). Wakatobi can adopt this strategy when it introduces its restaurant with the

unique qualities of services and product; then it can easily capture the market.

4.2 SWOT Analysis

Strengths Weakness

1 Wakatobi can hire experienced managers 1 The major weakness of the Wakatobi is that

with good managerial skills and multi- the restaurant is new and not established

tasking abilities (SWOT analysis, 2019). yet.

2 The strengths of the restaurants lie in 2 For establishing of the restaurants at the

serving the quality of services and tasty different location required hug amount of

food. the fund and the Wakatobi has the limited

3 The interior's decorum attracts the availability of the fund.

customers and provides them with fun to 3 The product and services which are offered

eat the food in the restaurant, which gives by the Wakatobi are already offered on the

them a memorable experience (Teece, markets by the rival firms.

2018). 4 Another weakness is that customers need to

4 When the restaurants serve the menus at a travel to the restaurant (Priem, Wenzel, and

low price, it gets the cost leadership which Koch, 2018).

helps the company to get the competitive

advantages from others in the industry.

5 The Wakatobi can offer some special

promotions which can buy one meal and

get one free as it helps the company to

establish a position in the market and

 Wakatobi 34

attract the pool of the customers.

Opportunities Threats

1 Wakatobi gets the opportunity when the 1 The entry of another famous brand in the

new complex is opened in a nearby area of locality of the Wakatobi will affects the

the restaurant. business and decrease the profit for the

2 The building of the housing and Wakatobi.

developments on nears by locality of the 2 The restaurants of Wakatobi may face

restaurant will attract lots of customers threats when UK governments impose a

(Visnjic, Neely and Jovanovic, 2018). higher amount of taxes on the restaurants.

3 Another opportunity is that when the 3 The restaurant may face threats when the

Wakatobi offers the quality of services, competitors have lowered their prices of

then it may have the option to expand its the product and services, which will cause

business through international boundaries. to start the price war in the industry

4 With the opening of the restaurants at (Bouwman et al., 2018).

different locality will attract large numbers

of customer and increase its brand values in

the market.

The business strategies that Wakatobi can use to increase its work efficiency and

effectiveness in the works are value-added, values added a chain, resources and capabilities all these

are explained below:

4.2.1 Value-added

It is a concept or model which enhance to understand the production of the goods and

services it includes the concepts of values added chain, resources and capabilities of the company

(O’Hare, Stewart and McColl, 2018).

 Wakatobi 35

4.2.2 Values added chain

The concept was developed by the Michael Porter which presents the business activities are

related to time taken in the manufacturing of the product and services which leads Wakatobi to add

the values for the customers and company. The two types of activities take place in that are primary

activity and the supporting activity (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). The

primary activity is related to the production of the final product and services and their sales to the

end consumers. Another is supporting activity which supports in the final production and smooth

functioning of the operation of business activities like human resources management, technological

changes, infrastructure management, etc. Wakatobi can perform the effective value-added chain to

increase its approach towards the new customer. Wakatobi can open digital restaurants to capture

new most of the customers as it will increase brand awareness among the customers.

4.2.3 Resources

The main resources that are required in Wakatobi restaurants are human resources which are

needed to perform various task in restaurants. As they play an important role in the management of

the staff preparation of the food, ensures the proper functioning of the business operations and

managers salaries. The food services are an integral part of the successful restaurant plan. Delivery

of the quality of food services by Wakatobi to its customers will create customer trust(Firoz

Suleman, Rashidirad and Firoz Suleman, 2019). The infrastructure of the restaurant attracts the

customers and creates mind-blowing impacts on their minds if the services provided by the

restaurant are of standard quality. The used equipment like should be clean and plenty of equipment

should be present like refrigerators, freezer, and proper storages spaces for food etc.

4.2.4 Capabilities

The capable restaurants are those who are constantly achieving superior performance for the

Wakatobi. As it aims to deliver superior value to its customers, rapid innovation is needed difficult
 Wakatobi 36

to imitate and is a more profitable strategy. The success from competitors depends on the Wakatobi

capabilities to do best on their work from their rivals. The restaurant can develop best pricing

technique to develop the customer base in the market, which will attract new customers towards the

Wakatobi (Glasgow, 2018).

4.2.5 Business canvas models

For Wakatobi restaurants with the help of business canvas models the Wakatobi can be able

to acknowledge the basic elements that will help its growth and developments of the restaurants in

the market.
 Wakatobi 37

Key partners Key activities Value proposition Customers Customers

Convenien relationships segment
The key Wakatobi ce in the buying of The The local
partners for can develop new the meals from the company can people did not like
Wakatobi will be recipes which are restaurant to take provide the gluten product;
wholesale food different from the it home or at work. facilities for cross the Wakatobi can
suppliers. Organic rivals in the Wakatobi fit gyms and their provide gluten-
food suppliers and market. can cook fresh or members. free food to the
other business in The meals which are The customers who
the cross-sell of company can frozen. The presence of fire- are health
the product and market its restaurants can fighter, paramedic conscious.
services. restaurants with provide cooking community and Athletes who are
the help of digital classes to their polices who required to eat
marketing like employees to should be present healthy food the
social media, make them learn for long shifts. Wakatobi can
Facebook how to cook new provide nutritious
blogging etc. recipes. The food food for them.
Changes can be made with Wakatobi can take
made in the menu the use of healthy responsibility for
daily. Cooking ingredients which its employees by
and baking. does not contain providing them

Key resources any refined sugar. Channels with healthy food

The The and snacks, which

resources that restaurant can does not affect

Wakatobi can deals with the their health.
easily get are the customers directly
help from the by picking up the
students as a part- food from the
time job given to restaurants.
them. Wakatobi can give
The online ordering
branding of the services from
community websites
should fit in the designing, which
 Wakatobi 38

cross-community. will attract

Social customers from
media will help larger areas. The
Wakatobi to restaurant can
increases its sales. provide home
delivery if the
food which will
provide
conveniences to
the customers.
Wakatobi
can attract
customers
through cooking
classes also.

Cost structure Revenue stream

Wakatobi can cost according The Wakatobi can earn revenue from the in-store
to the per portion costing. sales, from the cooking classes, online orders, booking
The restaurants will include from the Gym members and provide them challenges diet.
sales and marketing cost. The
Wakatobi will charge for the loyalty
and packaging of the food. The cost
of setting up of the cooking classes.
 Wakatobi 39

5.0 Chapter 5: Business Plan Review

5.1 Overall Assessment of Business Plan

From the “business plan” made for the Wakatobi restaurant, it has been assessed that the

number of compliances has to be done for starting any business operations. For every business

organisation, it is very much important to develop an all-rounded business plan and strategies

before indulging itself into any new era of the business line. Also, by conducting an in-depth market

survey and research activities, it has provided ease for the Wakatobi restaurant in determining the

current market situation as prevailing therein. Also, it has assisted in evaluating the taste as well as

the preferences of the customers in the area in which Wakatobi restaurant is going to start its new

business firm. Following is the overall assessment made from the business plan designed for the

Wakatobi restaurant::

5.1.1 Product or Service idea

Wakatobi restaurants ideas established by doing markets research in London as the

customers love to eat food and the restaurants which are having great interiors. As the interiors

attract customers on the larger proportion, which impacts on the minds of customers to visit the

restaurants again and again (Visnjic, Neely and Jovanovic, 2018). The ideas for the opening

restaurant is also due to the reason that London is the place where tourism and hospitality sector is

growing by the passing of time, and many tourists from other countries are availing the facilities.

The Wakatobi started product and services in restaurants which give a similar taste of food in the

different locality of its restaurants due to which the customers are able to get the same taste in food

and standards quality of the product at the different locality of Wakatobi restaurants.

5.1.2 Legal issues

Wakatobi faces many legal issues which are needed to be fulfilled by the restaurants.

Wakatobi should pass the food quality test to get the license from the governments for legally
 Wakatobi 40

running the restaurants in London. The restaurants should be situated at the proper location where

the customer can easily use the facilities of the product and services to restaurants (Firoz Suleman,

Rashidirad and Firoz Suleman, 2019). Wakatobi should take into consideration the healths and

safety of the customers by providing fresh food to the customers, which do not affect their health.

The employee should be given basic training for following the basic adequate while preparing the

food with proper hygiene like cleans clothes, use of hand gloves, hairs capes, etc. by following

these basic adequate ensures the customers that the staff is preparing the food with following the

norms of hygiene maintaining at the workplace (Glasgow, 2018).

5.1.3 Financial requirements

The requirements for finance can be fulfilled with the help of investors which can provide

fund by giving money to expand the business activities of the restaurants. The Wakatobi can take

loans from its family or the friend as their will charges no interest or less interest than the market

interest rates. A bank loan is an option when the company is not able to get financial help from

friends or the family. The bank loan is time bounded and charges the interest at higher rates. The

Wakatobi can use its own saving if it does not wants raises the fund from other or the externals

sources which are banks, investors etc. Wakatobi manager can also raise the fund by taking the

facilities of the credit card when the requirement of the finance is less in the restaurant (Priem,

Wenzel, and Koch, 2018). Financial requirements raising by banks, investors, credit cards, etc.

helps to continue the business operations and ensure the smooth functioning of the business without

demolishing the business.

5.1.4 Risk issues

For starting any business, it is very much important to evaluate all the risk factor as

associated with business operations. Before getting engaged in any of business line, it is very much

important to conduct an in-depth survey research about the market structure and its relevant
 Wakatobi 41

business aspects. By having good and experienced team members, Wakatobi has been able to

overcome all the risk factors coming in its way with the help of formulation of strong and effective

business plans in line with the business aims and objectives made. Also, by taking help of the risk

assessment matrix, all types of risk related to market competition, financial assistance, the market

entry has been evaluated, and the plan has been made accordingly.

5.1.5 Marketing matters

For taking entry into any type of market area, it is very much important to adopt the best

marketing strategies and plans. By assessing strategies, systems and standards as followed by

another profit-making as well as competitive firms in the market place. For capturing all the current

market opportunities as arising in the market, the Wakatobi restaurant has to implement sound as

well as effective advertising and promotional schemes as designed by the management of the

company (Bull et al. 2019). Framing of marketing and promotional schemes has been done for

smooth launching of business operations of Wakatobi restaurant in different market areas including

London, Bayswater, Nothing Hill, Soho, Colindale and outside Birmingham city area as well.

5.1.6 Organisational feasibility

By making use of organisational feasibility activity, it assists Wakatobi restaurant in

implementing its business plans and strategies in a much effective manner. With the help of this

feasibility study, it helps in determining all the factors which are creating a negative impact on the

working as well as the performance level of the business of Wakatobi restaurant. Being a newly

open restaurant, Wakatobi requires huge funds as well as financial assistance at the initial stage

which can be arranged with the help of public offerings for completing its launching activities of the

new restaurant at different locations. Also, by adopting a sound organisational structure, Wakatobi

restaurant can make an effective decision related to its business processes.

 Wakatobi 42

5.1.7 Overall resource sufficiency

For every business organisation, it is very much important to have sufficient resource

balance with itself for carrying on business operations in effective as well as efficient manner.

Wakatobi restaurant being one of the new business firms has to ensure which business department is

having a requirement of what type of business resource for carrying on its business operations

properly. By making use of sound business plans and actions, Wakatobi has been able to make the

allocation of its available business resources systematically. Also, with the help of organisational

structure, employee's working in the Wakatobi restaurant are able to gain a proper understanding of

their job role and perform in a much effective manner as well.

5.3 Gantt Chart

Project Week Week Week Week Week Week Week Week Week Week Week
Name 1 2 3 4 5 6 7 8 9 10 11

Market
Analysis

Gathering of
data

Seeking
approval for
opening
restaurant

Completing
documentati
on work

Obtaining
license

Architectural
 Wakatobi 43

Designing
and
Construction

Requirement
analysis of
business

Preparation
of designing
documents

Implementat
ion of
business
plan and
Idea

Furniture
and other
accessories

Kitchen
equipment
including
Cutlery

Setting up
atmosphere
for new
business

Quality
testing

Recruitment
of requisite
staff

Organising
Training
 Wakatobi 44

session for
Staff

Suppliers
Contracts

Undertaking
marketing
and
promotional
activities

5.4 Critical Success As Well As Failure Factors of the Wakatobi Restaurant Business

Through business plan, Wakatobi restaurant has been able to make an entry into the

competitive business environment effectively. It is crucial for every organisation to formulate all-

encompassing business strategies and plans align with organisation’s aim and goals for gaining a

competitive edge in the market place. Following are the success factors associated with the

Wakatobi restaurant business:

5.4.1 Targeted marketing activities

By focusing on the targeted market areas, it has helped the Wakatobi restaurant in gaining a

competitive edge in the market place. Also, by emphasising on the demographic structure of the

location in which it is willing to initiate its business operations, it has become easy for Wakatobi to

implement its business plans accordingly (Brinckmann et al. 2015).

5.4.2 Quality service and food

One of the main factors which has provided success to the Wakatobi restaurant is its quality

and standardised services to its customers. Furthermore, by delivering tasty and delicious food

items as per the taste and preferences of its customers, it has been able to increase its customer base.
 Wakatobi 45

5.4.3 Empowered and experienced staff

By employing highly qualified, skilled and experienced staff and employees in the business,

the Wakatobi restaurant has been able to improve its performance level.

5.4.4 Realistic financials

By formulating financial plans and budgetary frameworks, the Wakatobi restaurant has been

to undertake its business expenses in a better manner as per plans made.

On the other hand, the Wakatobi restaurant has to face some failure too in its business

operations viz.:

Capital: Low start-up capital with the Wakatobi restaurant has affected it is business-related

operations to the same extent such as limiting its expansion range etc.

Lack of knowledge base: Due to inadequate knowledge and experience about the current

market competition level, the Wakatobi restaurant has become incapable of using current market

opportunities for its business (Wynne, 2016).

Poor promotional activities: All the promotional function used by Wakatobi restaurant for its

advertisement purpose is very poor and improper as a result of which its business operations after

launching gets affected.

Ideas: Lack of unique as well as creative business ideas has created an impact on the

working of Wakatobi restaurant, thus affecting its performance level. As a result, it has become very

much difficult for the Wakatobi restaurant to compete in such tough as well as a highly competitive

business environment.
 Wakatobi 46

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 Appendix

1. Funding forecasting

Start-up funding

Expenses £2500

Assets £150000

2. Sales forecasting

Sales forecast Amount in £

Particulars Year 1 Year 2 Year 3

Sales 3445 5200 5193

less Direct Cost of 1038

: Sales 689 1040 .6

4154

Gross Margin 2756 4160 .4

less Fixed cost 215 235 255

3899

Profit 2541 3925 .4

less Expenses

Payroll 100 122 163

Sales and

Marketing and

Other

Expenses 171 192 212

 Wakatobi 53

Depreciation 0 0 0

Utilities 25 27 31

Other 17 21 29

Net Profit 2228 3563 3464.4

Assumptions -

For year 1st Selling price per unit = £55

Fixed cost = £215

Units = 62

3. Break even analysis

BREAK-EVEN ANALYSIS

Monthly

Units Break-

even 0.078011611