What do you think are your strengths and weaknesses as a potential business owner?
Every business has some strengths and weaknesses, my restaurant’s weaknesses and strengths are described below;
Strengths; Strengths are those positive viewpoints or particular properties or skills which give a noteworthy market advantage.
- Good customer service
- Well trained staff and educated cook
- Home delivery options for free to needed people or customers
- Flexible hours of working, the restaurant will be open till late to provide good service
- Special offers on weekends, like buffets
- Neat and clean area, air-conditioning
- Providing good food which no other restaurant offers
- More options or food items in menu
Weaknesses: Weaknesses are those negative angles or insufficiencies in the present capabilities or assets of the association which constrain its viability. This is the best way to improve the business if lean something from weaknesses.
- Less space in dining area
- Some time menu items not available
- Not a proper way to track the records.
What will you do to maximize your strengths and minimize your weaknesses?
To maximize my restaurant’s strength, I will more focus on some points. First of all, need to update customer service to get better results by taking customer survey or asking questions to them while they are in restaurant, like , do you like the food, how was it, how do you feel about staff and customer service, etc. Moreover, needs to be provide more options in home delivery, and take online orders, presenting more options in food menu than the other restaurants. Need to provide more offers in weekdays like lunch buffet as well and some deals on kid’s food and kids toys , this can help to bring customer’s retention to the restaurant. Need to organize some charity events , again this will help in customer retention. Other restaurants prices are high, so prices need be to low in my restaurant to bring more customers and everyone can afford the food.
And to maximize my weaknesses, more space is needed in dining hall. Customer service would be at the top priority and every food item should be available on the time, so customers can enjoy the food or any food item from the menu. Furthermore, need a proper way to keep all records , like how much food is needed, wastage, profit, loss, employee records. I will try to provide more training to staff this will improve the customer service. And the restaurant will provide more facilities to disable people or customers. Take out system will be available, so the customers can enjoy the food at home and online ordering service will be available. Funds will be available. Set the desires effectively inside with reference to what the aftermath might be so everybody comprehends the effect to customer loyalty. No one can run any business with customers, if you do not respect your customers then the competitors can take the customers interactions towards them. Offering a portion of your restaurant items, for example, serving of mixed greens dressings or prepared merchandise, for individuals to purchase and bring home speaks to an opportunity.
Part B: Analyzing a Successful Business
Costco and its subsidiaries began operating in 1983 in Seattle, Washington. It engages in the operation of membership warehouses in the U.S., Canada, U.K., Mexico, Japan, Australia, and Spain. The company has been reporting good results in recent quarters, as it is benefiting from strong demand from both U.S. and international customers, although the strengthening U.S. dollar has tempered international results. Standout categories include Fresh Foods, which reported low double-digit growth in the fiscal first quarter of 2015 (ended November 23, 2014), Food and Sundries (high single-digit), and Hardlines (mid-single digit). Lower gas prices have had a mixed effect on results. Gas makes up over 10% of COST’s total sales, and the company offers some of the lowest average gas prices in the nation. But with lower gas prices, many customers are not as concerned about finding the best deal.
The company has exceptionally alluring low costs on for all intents and purposes each great or administration offered in its stores and on its site. Costco has fast stock turnover joined with high deals capacity, adding to higher incomes. The high deals capacity promises high incomes regardless of low offering costs. The high deals capacity adds to high working effectiveness. Higher working effectiveness is accomplished through minimization of variable expenses. Variable expenses are bring down when capacities are higher. It doesn’t concentrate its endeavors on augmenting costs for the time being, yet rather centers to keep up a recognition among its individuals from “evaluating specialist”, or reliably giving the most focused costs. These take clients back to the stockroom, since they have the conviction that they are in reality getting the best cost on a wide cluster of items. The organization has sound money related position and it is likewise giving the excessive income to the clients. The business is getting majority among it’s clients and the quantity of clients is likewise expanding.
Costco’s primary shortcoming is the participation just distribution center club retail plan of action. This model urges clients to purchase at Costco stores, yet in addition restrains the aggregate number of clients. Non-part purchasers may feel annoying at Costco stores. The association has the limitation of the restricted group of products and enterprises. Clients may go to dissimilar stores like Walmart, which has a more wide-ranging collection of stock and enterprises. The association needs to attempt and pull in more youthful clients, who are savvier web-based business customers. We examine this open door in more detail underneath. Costco sell so many goods under private label Kirkland signature brand. It totally depends upon economic condition of US and Canadian procedures. The organization needs to confront extreme rivalry in the market and the execution for piece of the overall industry is additionally stoppage.
As of late, administration has found a way to draw in more youthful clients to its stores. These customers, between the ages of 19 and 34, should drive longer-term deals and profit at Costco. The association is pulling in these clients in a few different ways. The organization has the chance to enter new markets, for example, advertises in creating Asian nations. Costco has the chance to extend the scope of its internet business sites. The organization has incredible opportunity to tap the worldwide market and it can broaden its business in the rising economies. The organization at present offers online administrations to the United States, Canada, United Kingdom, Australia, Mexico, Taiwan, South Korea, Japan, and Spain. The organization additionally has the chance to expand the assortment of its merchandise and enterprises to enhance the appeal of Costco stores to a more differing populace of purchasers. The organization has likewise been utilizing advancements, including Living Social, which ought to draw in a more youthful client base. It is additionally offering more natural sustenance’s, which will likewise speak to a more youthful, more wellbeing aware customer. The organization should begin successful publicizing effort and should begin the client-based administrations to get increasingly perceivability.
Work relations are not superb in Canada, this need to be fix to increase the sale and to provide a good customer service. So many other private stores started now to give a best completion to other wholesale stores. The passage of fresh enrollment stock center weapon retail organizations debilitates Costco’s capability to prevail in abroad markets. In abroad markets, new enrollment supply center clubs are opening.
While not specifically challenging with Costco, some web retailers like Amazon (AMZN) offer a scope of ease, great quality items with delivery choices that are difficult to beat. Organizations like this have the scale and fulfilment forms as of now set up, so Costco needs to think how to use online commercial and advance in this space to better contend with these monsters of trade, mostly in the event that they choose to contend all the more directly with Costco in the food business.
Part C: Business Ownership
Describe the pros and cons of each of the following forms of business ownership in relation to your business idea:
o Sole proprietorship
Sole proprietorship is one of the easy way of business by which you can easy operate the business. In this, person who owns the business are responsible for the det. The sole proprietorship is the prominent business shape because of its straightforwardness, simplicity of setup.
Manager gets all the benefits: -Being the manager, they have all the basic control regarding the entire business. They do not need to give answer to the shareholders or board of directors about the running of the business.
No exceptional tax collection:- A sole proprietorship does not need to pay any corporate taxes. They must pay only his income tax that is basically based on their personal income.
Simplicity of disintegration:- Sole proprietorship is the person who is responsible to manage the schedule. They can also close the business any time .there is not any time limit for any kind of business activity.
Secrecy:- All the business secret maintained by the sole proprietorship.
- A single person is responsible for all the loss.
- A Sole Proprietor who settles on the majority of the choices without any help in a business might be worried by that responsibility.
- Single person has to run all the responsibilities.
Partnership: A partnership is a non-fused business that is made between at least two individuals. In a partnership, your financial assets are joined with those of your business partners and put into the business.
- Easy to solve financial problems or to start a new business.
- Loss and profit divided into two or more partners.
- Partners share the responsibility of managing and operating the business.
- To get better decisions, partnership will be helpful.
- Some time it may create a problem to share a profit. For example, one person puts more money and the other one gives more time, this will be difficult to share the profit.
- It’s not necessary that your partner will be loyal towards you or the business.
- Some-times the partners have different ideas to run a business, this can lead to breakdown in communication, and the impact will be harmful to business.
Incorporation, including a single owner corporation
A corporation, also known as a limited company, is a legal entity that is separate and distinct from its members.
Advantages of Incorporation
- Management has good technical skills to communicate.
- Ownership or property names easily able to transfer to other person.
- Easy to raise the capital from investors or the capital sources.
- Shareholders are not responsible for the debt.
- Tax rates are lower than the individual tax rates.
Disadvantages of Incorporation
- Need good money to incorporate the business.
- More expensive
- More rules and regulations, to run business in any territory or province.
Franchise: Franchises come in all sizes, including McDonald’s, the world’s largest food service retailer, with 33000 restaurants in 119 countries and over 1400 in Canada employing more than 80000 Canadians. Chances are, you deal through one of the more than 700 franchise system in Canada almost every day. When you have lunch at Tim Horton’s or pizza 73, use the services of a Expedia Cruise ship Centers, take your car servicing at Midas or Mr. lube or buy candles at buck or wo plus, each case you are dealing with franchised business.
Advantages of Franchises;
- Easy to raise start-up funds.
- Advantages of advertising, franchisor can help to advertise to promote or grow the business.
- Will help to go with brand name, which is very known in customers to advertise the product.
- Good team and management training is provided by franchisor.
Disadvantages of Franchises;
- Less sources of product or to serve only limited products.
- Lost freedom to control management or less control over the franchisees than over company employees.
- Some franchises require franchisees to purchase from only the franchisor ,so you can say it , the restrictions of purchasing something .
Specialized forms—co-ops and joint ventures: –
Cooperatives are defined as an independent group of individuals willingly collaborating in search of social cultural and economic objectives. A cooperative is owned and operate by all members equally, and control is formed democratically.
Co-ops are basically self-governing and rely heavily on the statement that everyone involved has equal chance. This objective organizational model can come with both challenges and advantages.
Co-ops are a better way depending on what it is an organization is trying to complete. Considering the specificity of this model in terms of structure and decision-making, owners must be pleased being simply one member among many and being generally oriented towards beneficial objectives for the community.
Joint ventures: – A joint venture is when two or more parties put resources in idea or concept in terms of wealth, instance and exertion.
With people, when at least two people meet up to outline a brief organization to carry out a specific commission, such association can equally be known as a joint wander where the gatherings are “co-ventures”.
JV becomes a new creature with the following implications:
It is legitimately disconnecting from its founders, who might or else be massive corporations, even amongst the rising countries.
Joint venture has the civil rights to buy the new companies.
Money is involved in a joint venture, it is required to have a planned in position. Both parties must be accurate to focusing on the future of the enterprise, rather than just the instantaneous profits.
Short and long-term success are both essential. Keeping in mind the end goal to accomplish this success, morality, reverence, and messages inside the joint wander are require.
Mergers and acquisition:
Mergers and acquisition are interactions in which the responsibility for, different business links or their functioning units are exchanged or solidified with different fundamentals.
As a part of vital government, merger and acquisition can enable ventures to develop or balance losing and change the idea of their production or aggressive situation.
Advantages of Mergers and Acquisition: –
- The most familiar details behind firms to go into merger and securing is to unify their capability and control over the company sectors.
- Reduction of exposure utilizing original methods of overseeing money related risk.
- To finish up destructive, firm must be forced to be summit of inventive advancements and their running applications. With the merger and acquisition, a huge society will embrace or grow a destructive boundary.
- Failure of qualified laborers beside specialists in plan positions. This sort of trouble definitely includes loss of business get and then again that will stress to skill or only get supplanted at decent respect.
- This may cause duplication and over capacity inside the organization which could want conservations.
Describe the form of business ownership you prefer for your business idea. Explain why you have made this choice.
I would like to go with sole proprietorship or single owner business. This will give me to work independently, it means no pressure from other people. Being my own boss and controlling all my business decisions, I can make good decisions and responsible for loss and profit. It’s very easy to set the business, and less cost needed. I can run the business under my name and need some local licences to start business. With no co-owners or partners, the sole proprietor can sell the business or close the doors any time, this kind of business organization is an ideal way to test new business ideas. Sole proprietorships do not pay any corporate taxes, profits are taxed as personal income. Have more freedom than other form of business with respect to government controls.