Feasibility Paper Essay
Product/ Service Feasibility Analysis Being and feeling healthy has always been a major desire and while many people unreason ten Detentes AT Dealing inanely Ana not many nave Eden addle to Implement healthy habits into their daily lives. As technology has advanced and we have discovered more about diseases and disorders, we have also grown into the awareness that many of these are attributed to the food people eat and the environment they live in. Due to these discoveries a new trend of healthy eating and living has came about and this awareness has been spreading over the years among the population.
A number of people definitely desire to enjoy life longevity and minimize their medical expenses. Unfortunately, not many businesses have responded to the demand of the population regarding healthy habits. The companies that have taken advantage of this trend have achieved to charge high prices, but limiting the segment of the population they can target Just to high income. This happens because many restaurants disregard using organic ingredients due to its slightly higher price and its least lasting life or conservation, thus limiting options for customers of choosing green organic food while relaxing in an environmentally friendly place.
Green Addict offers to satisfy the need of the customers. Its products and services are unique and appealing to a large number of people who are health conscious. It is apparent that the consumers will get excited when they are served organic food in a cool and environmental-friendly restaurant. Green Addict takes advantage of an environmental trend of global warming and the publicity of environmental issues. Most people are aware of the dangers of genetically modified food and the carbon production.
It is apparent that even small children are aware of the going green concerned because of the media publicity. Green Addicts idea of sing recycled materials is vital in the eye of the public who are already trying in their own level to reduce carbon emission. Green Addict therefore feels the environmental gap that is currently experienced in the market place. The introduction of products and services by Green Addict is timely because it comes at a time when almost everyone around the world is worried about global warming and are more willing to implement healthy habits.
Green Addict will be offering products that many consumers would want to buy because of the consciousness of helping to save the environment environment and staying healthy. Everyone asked about the importance of organic food has given a positive response. Offering organic meals and a healthy environmentally friendly experience will therefore lead to a competitive edge in the market thus increasing the chances of the business idea to be successful. Customers that are health and environmental-conservation conscious will even be willing to pay slightly higher price because of their understanding of the quality of products and services offered.
The product design and services offered at Green Addict may have a challenge of obtaining raw material as well as other organic supplies because they are very limited and extremely expensive. Offering organic foodstuffs is very costly and the customers may not be willing to pay the higher cost of services. It is also likely that Green Addict may incorporate a few ingredients, which are not organic such as cheaper cooking oil that may contain food additive and chemicals that may turn away the consumers.
Maintaining a purely green and organic product may therefore not easy to maintain unless the customers targeted are willing and able to pay for the higher costs associated with the product and services. We decided to see what reaction would University of Miami students would eave T Green Act winner to De opened Ana located close to ten coral Ga campus. We were able to interview 100 students in the library to whom we asked two questions. The first question said: “How important is to you eating healthy in a scale from one to seven, one being ‘not important at all’ and seven being ‘it is very important? From 1 to 7, the average came to be a 5. 8; this number, tells us a lot about how important staying and eating healthy is to the University of Miami students. The second question was a simpler Yes/No asked given after providing the student with a brief explanation of what Green Addict had to offer. “Would you be ailing to spend two to three dollars more in your meal if the food were to be healthy? ” Surprisingly, again we obtained a favorable number towards accepting Green Addict in the market.
Approximately 74% of the students at the University of Miami would consider spending two to three dollars more in order to have a Green Addict meal. We can conclude that students at the University of Miami would have a positive attitude toward Green Addict if it were to be opened. 2. Industry/ Target Market Feasibility Analysis It is crucial to assess the overall appeal of the industry as well as the target market for the Green Addict. Industry/ Target Market feasibility analysis includes industry and target market attractiveness.
The new venture Green Addict targets individuals of middle and high income, college educated residents, and family oriented zones because these communities are generally more interested in the benefits of eating natural and organic foods. For consumers who believe that there are not enough places to eat in Miami, Green Addict would satisfy and cater to their recycled, go green, and organic lifestyle. The restaurant and food services industry is expected to grow extensively by 2014 and cafes and restaurants represent almost over 50% of the vernal industry.
The organic food demand is skyrocketing because of the increasing global population as well as the general migration from rural to urban that changes the lifestyle trend. It is undeniable that the eating habits are changing particularly amongst the middle class and the rich families as well as college students because of their healthy living awareness. The increased number of organic food campaigns plays an integral role in the great performance of organic food industry. Most people currently work in the offices and do not have time to prepare and eat organic food as including time to relax in their homes.
Green Addict operates in an industry with many prospects because college students along with the rich and the middle class families will always want to have healthy food and relax in an environmentally friendly organization. Change in consumer preference positively affects the organic food industry. Most consumers prefer serving a healthy menu, which includes eating fresh organic, nutritious and low calorie food because of the healthiness, and the environmental friendliness linked with it.
The organic food restaurant industry is a vapidly growing industry due to the rising health concerns with increased obesity awareness on top of other related diseases. Most restaurant menus are filled with organic foods and drinks because of the readily available market. Consumers in the high-income bracket are shifting their preferences to organic food and other related products that are served in an environmental friendly experience and that is exactly what the Green Addict offers.
Although the industry is associated with expensive products, a large under AT roll Ana immune class populations cannot Ignore ten health benefits associated with the products. The target market, who are the middle class and the rich believe that the health benefits linked with organic foods and related experiences deserve the higher prices. It is therefore obvious that the organic food restaurant industry is still young and is rapidly growing thus providing numerous opportunities for the Green Addict.
Currently, most people are beginning to be health conscious and are therefore willing to buy healthy food while enjoying similar experience. The industry is also early in the lifestyle due to the latest needs and campaigns regarding healthy living. However, the industry is fragmented cause only the middle and the rich class are only consumers capable of buying the costly products. The health conscious and environmentally conservative people believe that organic food products and green experience is a “must have” and therefore should not be avoided as much as possible.
This segment of consumers is more concerned with their lives and environment than the price of the product. They think that there are no alternatives for healthy living and are ready to give it all Just to remain healthy. Presently, the industry is not crowded because of the higher costs and low operating margins involved. 3. Organizational Feasibility Analysis The need for sufficient management expertise, business competence and resources are crucial for the better performance of a business venture. In organizational feasibility analysis, management prowess and resource sufficiency are important as well.
The Green Addict will satisfy the necessity of pleasant living including fresh air and organic food in a green self-sufficient environment thus making it differentiated from other restaurants in Miami. Green Addict will differentiate itself from its competitors by providing a healthy, CEO-friendly experience that is unique in the industry. This will be an important aspect of the organization as far as increasing its market share is concerned because it will appeal to the untapped but willing and able to buy market. Additionally, Green Addict will operate as a chain of restaurants thus leading to wider market coverage.
It will operate in different geographical places hence creating place utility to various potential consumers in different positions. Moreover, Green Addict will focus on satisfying the customer’s wants, such as, offering a more intimate environment and simplifying the act of healthy eating thus satisfying the immediate needs of the consumers. The chain of restaurants will not let their consumers take home foodstuffs as their competitors like Whole Foods and Fresh Market do, instead they will make their own organic food that will be eaten right in the restaurant.
Ambiance remains integral to the Green Addict unlike some of its fast food competitors such as, Eves and Jamb Juice, which do not pay attention to the environment. Management of Green Addict will serve its purpose appropriately because the team will carry what it takes to do its intended business venture. The chain of restaurants’ management comprises of the expounders who eave vast experience in various special fields. The expounders include Amy Fernando who is yoga, Palates and eating healthy addict who greatly understands the target market and therefore will enhance marketing and promotions.
The other expounder is Nathalie Base who is expected to induce the experiences she gained Trot working In a restaurant Tort two conservative summer, as well as Mane Average who has served in a non-profit organization that provided crucial management techniques and skills. Finally, there is Daniel Buttock who has taken several nutrition courses at the University of Miami hence providing a great knowledge in providing he best organic nutrition. Green Addict will operate in an environmental friendly place that conforms the nature of business.
However, there will be few suppliers of organic food to the organization because most suppliers supply food for home consumption and at a higher price, which may not earn much profit for the business. The industry is still growing and the fast food industry seems to enjoy a higher number of suppliers compared to the organic food industry. This may therefore force the Green Addict to have their own garden and grow some of their own organic food such as vegetables and fruit. Nevertheless, this may take place after long run and working at a higher scale. . Financial Feasibility Analysis Restaurant business has really been thriving in Miami with annual revenue of $2,000,000. By analyzing the purchase and a set of Restaurant start up and Feasibility spread sheets for various restaurants serving dinner and lunch, the total weekly sales may be $14,380 and maintain a steady rise in percentage of 5%. When weekly sales are multiplied by 52 weeks, the likely annual revenue will be around $1,000,000 during the peak sales in the first 5-7 years. This forecast incorporates both the peak and low season.
Green Addict is planning to maintain their customers through distinctive quality services and products. The loyal customers will then help in marketing the restaurant resulting into recurring and increasing source of revenue. The revenues generated will be sufficient to cater for expenses and finance other internal projects that contribute in growth sustained. When the Green Addict venture utilizes the four As strategically, then it is definite that it will be successful. Green Addicts products and services are unique and are highly demanded.
Green Addict should also utilize the social media and print media as well as leaflets promotions to boost their revenues. Social media is currently the most popular media especially Backbone and therefore its utilization may be useful in targeting the college students who form a bigger percentage of Backbone users. Moreover, the restaurant will provide services and products at various locations due to the environmental friendly surroundings that are associated with it. To prove the viability of Green Addict, a cash flow statement for the two first years is explained.
The following cash flow is based on forecasting the first two years of the company, which are 2014 and 2015. It starts by calculating depreciation, dividing the initial cost by the useful life of the asset, the first year the company is estimated to spend around 100,000$ in equipment and furniture. Those assets are calculated to last for a period of 10 years. Finally we will get depreciation sums a total of 10,000$. For the next year, 201 5, we expect to spend in equipment 50,000, which will focus on expansion and quality control.
As well as 2014, we expect that those assets last for 10 ears minimum, so the depreciation for 201 5 will be 5,000$. Then we calculate the decrease in account payable and the increase in account expenses. There is a Mullen amount In decrease AT account paddle as well as In Increase AT Inventory since is a new venture and also because the business is selling a service, where the product is sold right away and do not have people owing them. Furthermore, we calculate the decrease in inventory. We are expecting a sale of more the 500,000$ a year, and we calculate that our inventory for a year costs 100,000$.