Business Model and Strategic Plan Essay Example for Free

Business Model and Strategic Plan Essay For any journey the path must be defined with clear and recognizable details for it to be successful. The concepts of markers and landmarks which define the direction of a journey apply to that of any business. We need detailed plans and objectives as well as landmarks and directions we would like the business to travel. The objective of Two Brothers food truck is to create a trusted and popular place for people of the Wenatchee valley to enjoy a quality meal using locally sourced goods and services at a value which all residents of the valley can easily afford. With this detailed strategic business plan we will discuss the concepts which will guide our plan and the obstacles we may face and how we will work to overcome them. Strategic Objectives, Measures, and Targets The objective is the same in all business and that is to keep the business operational and profitable. The profitability of any business is the main reason for which we strive to open and operate businesses; this fact will be  the main reason to implement fundamental financial objectives. The concept of Two Brothers food truck is to keep costs low, maximize profits while maintaining quality ingredients and service to the consumer. The main factor which way affect the profitability of the food truck is locally sourcing fresh ingredients due to the grow cycle of our region. At some point the truck will have to purchase items from a vendor or local grocer to maintain inventory levels. However the other menu ingredients like breads, meats, and dairy items will in most cases be readily available thanks in part to the availability to local butchers and dairies, we plan on baking our own breads. Thanks to the lack of competitive restaurants using locally sourced items we see no issues wit h these items. Methods of Monitoring and Controlling Two Brothers Strategic Plan We understand the importance of a happy employee and their relation to happy customers and relationships play a major role in any business. We strive to build relationships with the community and place high regard on personalized service to each person that visits Two Brothers whether it our guests are local or people visiting the Wenatchee valley. One major way we intend to ensure this will happen is to always empower our staff and make our staff feel like they are part of this business and guide them to feel as emotionally invested in the ideas and concepts of Two Brothers food truck as we do. We plan to offer incentives like shift meals, paid time off after time invested in the company, profit sharing, company events, and bonuses for college students whom receive exceptional grades, we feel the food truck should be a stepping stone and an example of characteristics they can take with them into their careers. We feel that investing the time and energy in our staff and showing them we care as much about them as we do the business will encourage them to feel the same and want to invest time and energy in our customers to ensure their return business and the customers overall satisfaction. Marketing and Information Technology Strategies and Tactics In today’s era of social media and more and more people using their mobile devices for everyday operations we feel we need to maintain that connection. Luckily for Two Brothers food truck the Wenatchee valley is relatively small and offers great coverage for mobile data with most carriers. We would like  to take that a step further and offer a Wi-Fi hot spot as well as charging stations for most devices, we would like to power these items using mainly solar energy to add to the concept of a sustainable culture we are trying to maintain with the business. We understand the importance of technology and social media in the operations of business and how technology can be an aid in our business operations. We plan on focusing our attention on sites like Facebook, Instagram, and other social media outlets to advertise our business which will provide the customer with daily information on specials as well as access to coupon programs we provide. Using social media will provide an outlet for our customers to provide reviews and feedback on our business. Many people feel that bad reviews can hurt a business; we feel that bad reviews provide an opportunity for us to make a new friend and change a process which may harm our business with future guests. Two brothers would also like to develop a smartphone application for iOS and Android which we find is also lacking with many businesses in the Wenatchee valley. This application will also provide instant access to our business as well as letting us track our market. As far as marketing outside of social media we plan to brand our image using items like car clings, bumper stickers, clothing, and sponsorship of local team sports, we feel that the Wenatchee valley is a closely knit tight community and word of mouth and these visual cues will travel fast into making Two Brothers a household name in the Wenatchee valley. Ethical, Legal, and Regulatory Issues Regulatory conditions for mobile food service entities like Two Brothers food truck are rather strict in the Wenatchee valley. We will need to focus on consumer safety within the regards of the regulations put forth by the local health department and maintain or equipment and employee paperwork to remain compliant with these standards. Another important element of the food truck will be a base of operations where we store product and prep for day to day operations. This facility will also have to fall within the guidelines set forth by the health district to ensure food and consumer safety. Two Brothers also plan to offer beer and wine at some point in the future operations of our food truck which is legally allowed in Washington State. We will also have to follow the guidelines set forth by the Liquor Control  Board which are monitoring levels of service, age appropriate clientele, and ensuring on premise consumption only. All of these aspects will be factored into our operational details and regulations will be posted per Washington State RCW’s. Business Model and Strategic Plan Part I The goal is to bring a cross section of favorite foods to the community. Some of these will consist of a local high school favorite the Zombie. The Zombie is fluffy dough stuffed with a variety of meats and cheeses then baked to perfection. Other culinary options will include the popular Cuban sandwich as well as bratwursts, homemade fried chicken, fresh cut fries, and several types of wings and sauces. The goal is to bring in as much locally grown items as well as using local providers for most of our items, keeping it home grown is one of our mottos. We also plan and scratch making as many items as we can to provide the highest quality and freshest product possible, another concept lacking in our town. The goal is to bring the highest quality foods for the most reasonable price that we can. I our idea will be to closely follow what Costco tries to bring to their customers. The goals of Two Brothers food truck are to bring items to customers with little or no access within walking d istance to their locations. We will highlight our operating times to ensure each location we stop at will have ample time to order and receive their items in a fashion congruent with their time frame. We will also provide an â€Å"Order Early† option via text, email, and phone orders so that clients will be able to bypass lines and pick up items whilst on the go. Wenatchee is a smaller mid-size market with many businesses and average options for quick lunch options. Wenatchee offers the same fast food and casual dining as larger cities with a sprinkling of mom and pop restaurants which make up the rest of the options none of which offer high quality ingredients with reasonable pricing structures it is usually either quality or fair price, Two Brothers will accomplish both high quality and fair pricing by operating on volume sales to move business. The plan for Two Brothers is to hand craft all possible food items to cut costs and increase quality of our products because we believe that the more hands something touches through the supply chain the more cost it involves in the end product. This will set us apart from most other options locally and  create an amount of exclusivity of market. What will also help Two Brothers is the relative lack of food trucks within the Wenatchee valley area. We plan to monopolize this fact and create a structure where we remain the top contender with first to market entry with home baked breads, oven roasted meats, and locally grown produce (when available). We will market on our commitment for high quality, price friendly foods which focus on family and togetherness. The vision that I see for the Two Brothers is for it to grow into a family run business with maybe two to three locations in total in the valley, keep it home grown and support the valley by staying true to family, friends, and c ommunity. While the quality and reputation of the establishment are paramount, so is the success of profit. Once I am able to show continued growth and a solid profit margins the possibilities are limitless for expansions. Are good profit margin will also allow for commitments like sponsoring a little league team, giving us a positive public image. The guiding principles or values would be to stay true to myself stay grounded if the business does become a success, and keep my promise to the customers by providing them with fresh food and a fun experience at Two Brothers. The culture of the business reflects my culture and that of my family, and when I say culture I mean that of respecting everyone whom we interact with. We will have a diverse menu because I want a diverse crowd. The social responsibility and ethics would be making sure we only provide fresh ingredients, only buy from the best, and never serve anything that is subpar our internal motto is create what you would want to eat. I will not hesitate to take the opportunity to make things right and apologize on behalf of the business, always treat others the way I want to be treated, and with respect. The business cannot be a success if the mission or vision statement is not only followed but also if the staff and owners do not promote what they inspire. The vision is to have the business grow, but it can do only that if the customers are treated with respect. We as a business must keep our word or promises on the service and products we say we will deliver on. For the business to be successful every promise made must be followed up by not only the owners, but also by staff, and those who we conduct business with Two Brothers. The only way to maintain a competitive advantage over larger chain restaurants, sandwich shops, and fast food joints, is to keep the promise we made in our mission statement,  and continue to stay focused on what is most important, the customer. Strategic Plan Part II: SWOTT Analysis The business world of today the rate of a business succeeding is far outweighed by the rate at which they fail and this needs to be understood when undertaking these endeavors. One of these factors to success or to failure is external factors and how they will work in the operations of a business. In this paper there will be a definition of some external factors for the Two Brothers food truck and how well the business adapts to these factors. We will analyze the supply chain and as well as the operations into consideration along with the identification of other issues and opportunities that may happen. Economic, Legal and Regulatory Forces and Trends One of the biggest driving external forces that can impact my business is the need for people to know where their food is coming from and that it is a good and healthy choice for them. Today’s focus on obesity has many people turning away from the fast food chains like McDonald’s and turning to options like Chipotle for healthier options and knowledge that their food is coming from excellent sources and is handpicked as well as made fresh daily. The Wenatchee Valley is very compact so the ability for people to travel for lunch is easy except the only real options are fast food restaurants dominating a large percentage of the choices. Because these health trends are extremely popular among the many in the valley it is wise to include social factors of healthy living are a huge positive trend for the food trucks fresh philosophy. The active population of the valley is more likely to be health conscious because it is the goal to be in shape and fit with the amount of outdoor recreation in the valley and surrounding areas. Therefore, by eating healthy homemade options provided by the truck, the average Wenatchee resident is a positive external force. Competitive analysis as an external force that we can use to measure the possibility of success or failure or trends which may affect the business. Since the food truck is in the Wenatchee valley and we are known for our agricultural history there is a large population of Hispanics thanks in part to the long history agriculture and the need for skilled labor. Mexican cuisine and  Ã¢â‚¬Å"Taco trucks† are quite prevalent in the area and a different style food truck would be an outlier among the usual fast food chains and the family-owned restaurants. This provides an advantage as the food truck has something new, and different to offer. In addition, the resta urant is mobile and can be available in various areas gives it advantages over restaurants and most other food trucks since most are mainly stationary and no longer mobile. Because the food truck will be in a mobile we can monopolize areas where many people work with the least amount of food options available, we have to cater to them this way and offer a quick high quality option for lunch. The Wenatchee valley also has many spots for tourist exploring attractions of the city and events that could support the food truck. Since the warms temperatures of the valley in the summer and the mild winters, I expect people to at least stop for food or for something to drink year round as well as eventually becoming a destination spot for locals. External technological forces/trends could go either way depending on how the business is opened. First impressions do matter – as much as businesses do not want them too especially in the era of social media. Wenatchee is a smaller town so word of mouth spreads quickly via sites like Facebook, Instagram, and Craigslist so in this situation, it is very important that the food truck makes a strong first impression. Also the local newspaper is a popular source of information to the valley and perhaps some sort of coupon or deal in the newspaper would be a good way to attract residents to the restaurant. Because the written part of paper has its counterpart on the web, online advertising would probably be an attractive option in attracting the many tourists which visit the city all year round. Supply Chains Organizations Impacts Considering the resource logistics for any business, a strong force that can negatively/positively affect the food truck is the cost of transportation of materials. Originally, the plan was to hand pick fresh material daily through local growers and vendors. However, this would be inefficient and extremely expensive. It makes more sense that these material are obtained from a local source which can deliver on a weekly basis. These items should be items that would definitely have to be locally or regionally located because they have to contribute to the buy local stay local theme. For  example, the vegetables would mainly be locally grown within the season and meats locally purchased and regionally harvested while any baked goods would be homemade by us using regionally sourced materials. Identification of Issues or Opportunities Culture Culture is another internal force, which can make the food truck a great and popular option. Having a family-owned business with a small group of friendly employees makes a huge difference in how a local business is perceived. Hiring employees who not relate well with the business owners generally results in employees perform their duties but may not love the business or take part in the enjoyment that the owners may have in operating the business; in other words, these employees will do their job but they will not have the passion that family has operating the business. Generally, the friendly service that customers will receive from the deli will likely be an incentive for them to return again. The feeling should be relaxing enough that customers will want to continue to hang out after their meal if they have the time. Over time, places like these become a sort of â€Å"favorite† hang out for people; this is very similar to how bars become places where people can hangout and relax while socializing and eating. With technology being so prevalent and because this is a tight knit valley, it is expected that people will have want to socialize so providing portable seating will be an important element. Leadership Leadership is an essential part of any business and can lead to better efficiency. It’s very important for the business to have a good set of leaders. In a small business situation the leaders should be the owners, there is a sense of warmth and gratitude when being greeted and served by the owners/operators. Sometimes, a customer may ask a certain question that requires a bit of prerequisite knowledge about a certain type of food or product and to answer the question. When the owners are available, and a part of the general operations, that knowledge is passed on the other employees when the owner is serving guests. Good leadership also is integral to making a business run smoothly. There usually has to be someone â€Å"in charge† that can direct people around in case they are lost. In this  case, if an employee is making a certain product and is confused on how to finish it or continue with it, the owner can usually step in and aid in the completion of the product. Therefore, a good leader will run the business in a smooth manner while the lack of a leader can result in the business losing money because of customer dissatisfaction (due to problems such as excessive wait for food, bad service, bad food, etc.) Strategy The internal strategy will be to keep consumers pleased and to keep their visit to the food truck memorable so they would want to come there again. Operating the food truck as a fun family oriented business will keep people hopefully wanting to hangout and comeback for that family open arms feel. Possibly providing outdoor games and events will give the customer something to keep them occupied and enjoy their stay. To keep the menu a bit unique, there would be a diversified menu by serving specific options and specials on different days of the week. There would also be incentives provided in the form of discounts, punch cards and options for catering a large group of people, such as parties, weddings or other events. Economic Economic forces and trends that can benefit or work against the food truck are most definitely included the price of oil and prices of raw materials. Because transportation is a must in any business to bring items to the truck and the truck to the clients, rising gas prices will hurt business and cost more. Similarly, a lack of local items in the area will also exacerbate the situation and raise prices of raw materials to be used by the food truck. Nice weather in the summer and good snow in the winter increase the draw of tourism to the valley this would increase the number of potential customers increasing business. Regulatory In regards to regulatory forces/trends that would affect this business would be the health inspection and how they regulate length of time a certain product is fresh. As an example, if health regulations of food trucks are usually more stringent and regulated than say a brick and mortar business since the food truck has the ability to become mobile and the options of  safe storage of foods is limited more so than the regular restaurant. By not following health procedures and safety, laws would be broken and there would be the risk of the business closing or people being hurt by contaminated foods. Because this is a small food truck business, it would not be too difficult to make changes unless the changes are extreme – like the change corresponding to the reliable sourcing of local goods. Making changes to the menu or making different items is usually just a change in how a certain product is prepared. Because food trucks usually provide food made on premise and is easily adaptable to many items this will not be very difficult if changes needed to be made. However, if people were to ask for particular items or drinks these would have to be purchased and that could take some time for delivery. The food truck is a small scale business; it is easier to apply changes than it is for bigger businesses that may be spread out in several locations. Global The most recent global issue for most business right now is the price of oil. Gas keeps the trucks moving and the equipment operating whether they are buying items, operating as in cooking food items, or moving from location to location gas is an unavoidable cost and rising prices could pose a threat to the sustainability of the business. Other options of clean energy can be examined to ensure the best operating options for the business. Processes and Systems Providing great service seems almost nonsensical as every business strives to do so. Small businesses have to make greater strides in this department. Consistency is the key in order to be consistent a system or process is needed for every detail. When there are definite procedures for the everyday tasks the employees and the customers know what to expect. For instance the opening and closing procedures will have specific tasks and duties every day. This type of consistency will keep a positive momentum. Strategic Plan Part III: Balanced Scorecard The reason an individual opens a business is to be successful and make a profits to provide as their livelihood. My vision and my mission for my  business are to be one of the most popular food trucks in the Wenatchee Valley area. In addition, should be a highly respected business and not just another business serving food. Getting to know the customers on a personal basis and prove friendly service that is appreciable and that leaves customer with a sense of superior service that keeps them coming back. But mostly, the food truck will provide great food that people will enjoy to eat and crave. The vision for the food truck is to see it open and available to travel to multiple locations throughout the Wenatchee Valley so that the entire valley can access the unique options we offer. Financial Perspective Because the initial location will be near the main medical facility and high school in the southern part of the valley, it can hold a considerable market share over other restaurants in that area of the valley since no other locations exists. After that the financial perspectives include market share, the vision influences the market share in this way and it allows for enhancement of profitability and the competitive position. More restaurants around the valley use the same supply chain operations that the initial food truck would have, keeping the costs relatively the same. Increasing the number of food trucks would, also help to lower prices of raw materials because the business would be buying larger quantities for more trucks and use volume pricing. This in turn would reduce the cost of spending but would increase the profits. The mission values are to provide great tasting food to a large variety of people of different social groups and to provide great service. To achieve such a goal, it is very necessary that some objectives for customer service and employee satisfaction are put into place. Employee Perspective Obviously, the amount of satisfaction that the employees will have will translate to a higher level of service they provide to customers. Therefore, increasing employee satisfaction is a must for the food truck. Stimulating and offering incentives to the employees is a great way to keep them productive. A method of stimulating the employees would be to rotate the duties. A rotation of duties ensures that all of the employees understand the functions of the different stations but they also understand all the cleaning duties as well and knowing each station helps in the overall  understanding of the business. This, in turn, affects their productivity and how they relate to the customers. The satisfied customers, in turn, helped to enhance the customer’s value perspective in areas such as customer retention and customer value. Providing warm, friendly service is an asset to the food truck will have and will set it apart from other options in the valley. Customer Perspective An objective that should be maintained is to keep the same level of service and customer satisfaction going throughout time. Ways to measure customer satisfaction is how customers react to the food truck on social media sites such as Facebook and Craigslist or frequency in which they visit. Offering a punch card with a reward is way to measure the frequency that they visit the food truck. Obviously, a majority of people frequenting the food truck signifies that the truck is a popular destination and signifies the mass popularity of the truck. Noticing changes in trends can help an owner to understand where problems may exist. An important strategic objective that should be respected in the organization of the food truck is keeping service quick and without any hassle and maintains a high level of quality and service. Process of Internal Operations To achieve this objective, the food truck needs to, again, maintain a fast and reliable service plan for the company. This requires planning, as the employees need efficiently to produce the product that the customer wants. This is not only encompassing the employee perspective but also the customer service perspective. Popular restaurants usually have a method through which they create menu items in an efficient manner. They create recipes and options on the menu which staff and customers can use to guide their experience and production processes. This orderly method that will be developed is essential for the business to run properly because it reduces the work that the employees do and allows the customer more freedom in choosing how they want their foods prepared as well as options available. In addition, I feel like this will be a necessary feature of the food truck because other restaurant businesses serving food create items from various  ingredients and recipes will also be producing their products in a similar procedure. Therefore, to keep competitive and streamlined to business practices of the industry this method should also be used in the food truck. Conclusion Designing and building a strategic objective is a crucial element for any business to operate successfully in the world today. Creating a mission statement with clear and defined objectives will help guide the business through their operations and should be looked to consistently to maintain the objectives set forth by the business creators. By doing this the management and operations of the business will be understood and how the business relates in the marketplace and how to operate through growth and handle competitors. A foundation of objectives will maintain the core concept of the business when changes or shifts in the market place occur and when new strategies need to be developed to handle these changes. The foundation of any business operation is the consumer and the major influence on whether they become a customer for life is the employee. These two factors are the direct drivers for any business and their happiness can bring about failure or ensure success. When the mission and core values are established and clear then it becomes easier for these two factors to provide the success businesses need to remain operational and sustainable. Reference Pearce, John A. , Robinson, Richard B. . (2009). Strategic management. formulation, implementation, and control. United States: McGraw-Hill. Thompson, Arthur A. , Gamble, John E. , Strickland, A. J. (2006). Strategy: winning in the marketplace: core concepts, analytical tools, cases. United States: McGraw-Hill Companies. MacDonald, Denise. (2008, October 15). Mcdonalds marketing strategy. Retrieved from http://www.macdonaldconsultingservices.com/post/2008/10/McDonalds-Marketing-Strategy.aspx