Introduction "A feasibility analysis is a chance to open your eyes, ask yourself some very tough questions, then check to see whether your idea, as originally conceived, needs to be modified, refocused, or changed dramatically

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Introduction

"A feasibility analysis is a chance to open your eyes, ask yourself some very tough questions, then check to see whether your idea, as originally conceived, needs to be modified, refocused, or changed dramatically. (Or perhaps even scrapped altogether.)" (Abrams, as cited in Scarborough & Cornwall, 2015, p. 237).

Overview

With this assignment, you will be addressing the fundamental question: Does this business have profit potential?

Instructions

Referring to the same business you started or purchased in the first assignment, write a 3–4 page paper in which you:

Conduct a feasibility analysis in which you research:

Industry and market feasibility.

Product or service feasibility.

Financial feasibility.

Entrepreneurial readiness.

Based on your assessment, does the business idea need to be modified, changed significantly, or abandoned? (Note: If you abandon the business idea, then you will need to select and analyze a new business that has profit potential.)

Include at least two references that don't include the textbook.

This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

Analyze a business plan to determine feasibility.1 Creating an eCommerce Business Kayla G’s Food Delivery's Strategic Plan LaShundra Small Strayer University BUS 402: Small Business Management Professor Adrienne Garabedian July 27, 2021 2 Kayla G’s Food Delivery's Strategic Plan Description Kayla G’s Food Delivery will provide food delivery services to individuals at home and in their offices. The business will be located at the heart of New York City. Its target market includes professionals working in different corners of the city. The business also targets college students and families living in the city's neighborhood. The enterprise intends to use its high-quality food and services to penetrate the food delivery industry. Its founder's experience in the food delivery service will be instrumental to the enterprise's success. Kayla G’s Food Delivery will invest in modern catering equipment and hire professional cooks to meets the needs of its target market. In the long run, the business will expand to other cities and diversify its products and services. Ownership Kayla G’s Food Delivery will be a sole proprietorship. As a result, it will not pay corporate taxes. Instead, the owner will file individual tax returns to the Internal Revenue Service. The owner will declare all their revenues and expenses during the tax year. Kayla G’s is also expected to enjoy other benefits of operating as a sole proprietorship. According to Akhmetshin et al. (2018), forming a sole proprietorship requires minimal legal costs. The owner also has absolute control of the business, which facilitates quick decision-making. The owner also recognizes that she shall be personally liable for debts or obligations arising out of business. Towards this end, she shall continue engaging potential investors and convert them into a company in the future. 3 Mission Statement Kayla G's Food Delivery is committed to consistently providing first-rate food delivery services to its customers 24 hours a day, seven days a week, at reasonable rates. We help our customers succeed by delivering their meals on time and professionally. Vision Statement The vision of the business is to provide high-quality food delivery services across the US. Core Values Quality Our customers will love our high-quality products since they will exceed their expectations. Service We appreciate the significance of good customer service in the hospitality industry. Therefore, we intend to pay attention to all our customers' requirements. Competitive Pricing We shall ensure that our customers get value for their services. Our products will be competitively priced but affordable. Ethics We shall collaborate with ethical businesses to provide our services. We shall also be fair and always keep our promises to our customers. Operational Plan Kayla G’s will prepare different drinks and foods for delivery. Customer orders will inform the volume of delicacies prepared. The cooks will then package the food and label them appropriately. Cooks will also attach price tags for customers who will need to pay through cash upon delivery. The business will hire five delivery persons who will then be equipped with 4 motorcycles. Other structures that will be used to enhance service delivery include a functional website and app. Customers will use the apps and web platform to make orders and track the delivery persons. They will also submit their feedback through the two channels. Kayla G’s will also open social media profiles to create public awareness about the products. Compliance Kayla G’s will pay all the required licenses and permits as a responsible citizen. Some of the licenses include the food service license, building health permit, and a food handler's permit. The licenses will always be paid on time to ensure compliance. Target Market The food market is undoubtedly one of the most crowded industries in the US. Therefore, Kayla G’s will face competition from established hotels and restaurants in New York. Towards this end, the business will use a product differentiation strategy to remain competitive. It will particularly keep innovating unique menus for its diverse customer base. The brand will also price its prices competitively to remain attractive to campus and college students. We understand that most students rely on pocket money for survival. They also like trendy delicacies and drinks. Towards this end, we shall collaborate with top suppliers to ensure that we produce these delicacies at a price the students can afford. Some of the company's top competitors include ChowNow, Delivery.com, UberEats, and DoorDash (Cho et al., 2019). In the next section, we analyze DoorDash's strengths and weaknesses since it exemplifies most competitors. 5 Competitor Analysis Strengths The company collaborates with main restaurants in the US. As a result, it operates a lean staff. The low operational cost allows the company to charge low delivery charges (Hodges, 2020). DoorDash also uses superior technology, as exemplified by its app. Weaknesses Although DoorDash has been in existence for over five years, it is still struggling with customer recognition. The market is also dominated by established brands such as Dominos and UberEats, making it hard for DoorDash to penetrate. Due to its low customer visibility, DoorDash has a limited number of loyal customers. As a result, it spends a significant portion of its budget on advertising. Opportunities For the last ten years, technology has changed how businesses operate. According to Panse et al. (2019), most businesses have online ordering platforms, which are now becoming popular among young people. DoorDash intends to tap into new technological developments to expand its customer base. Another opportunity relates to the major restaurants' lack of delivery services. Therefore, DoorDash hopes to fill the existing gap. Threats The most significant threat facing DoorDash is the stiff competition from established brands. The big companies use their industry experience and financial muscle to lock out new entrants. Customers also easily identify with existing brands that new entrants like DoorDash. 6 Financial Plan The founder will contribute the initial cash outlay. He will also obtain friendly loans from friends and family members. Although the business is expected to be profitable, it will obtain loans from banks and other financial institutions. The initial operating budget is as follows. Item Amount Rent 104,000 Annual Salaries 42,000 Start-up inventory (Packaging materials, food, etc.) 67,000 Kitchen construction 94,000 Motorbikes 35,000 Marketing expenses 21,000 Insurance 3,000 TOTAL 366,000 Management The founder will be the CEO for the first year. She is relying on her experience with a food delivery service company. The four other managers who will assist her run the business include the IT manager, HR, administration manager, and operations manager. The HR manager will source and recruit new employees and oversee administrative functions such as scheduling meetings and records management. On the other hand, the IT manager will establish the IT infrastructure. She will also oversee the development of a delivery app that customers will use. The operations manager will coordinate the business's supply and logistics. She will also ensure that customers receive their orders on time. 7 References Akhmetshin Mueller. 2018. Freelancing is a type of entrepreneurship: Advantages, disadvantages, and development prospects. . p. 1-10. Journal of Entrepreneurship Education, 21(Special). Cho, M., Bonn, M. A. 2019. Differences in perceptions about food delivery apps between singleperson and multi-person households. International Journal of Hospitality Management, 77. p. 108-116. . https://doi.org/10.1016/j.ijhm.2018.06.019. J.R. Hodges. 2020. Exploring food safety and occupational behaviors among platform-toconsumer online food delivery couriers.. p. 1-63. https://hdl.handle.net/10657/6944. Rastogi Panse. 2019. Understanding consumer behavior towards utilization of online food delivery platforms. p. 4353-4365. Journal of Theoretical and Applied Information Technology, 97(16),.