MGT602

Entrepreneurship (MGT602)
Assignment # 1
Fall 2009

Question
Discuss any ‘Business Plan’ in which clearly mentions you’re unique
Business idea with the Cost effectiveness and also explain which location
Would be suitable for this business startup your business plan should base on solid inferences & research, any table or graphical presentation will be encouraged.

BUSINESS PLAN
Business Owner: Muhammad Uzair Business Name: Pizza Express Address: The Pizza Express 25 North Nazimabad Karachi Pakistan Telephone no: +923434114604 Fax: +092-75414587 Email: uzair777@gmail.com Registration no: Pak/Karachi/021-Pizza Express-2007 Web Site: http://uzair777.blogspot.com
1. Executive Summery
Pizza Express is a new player in the restaurant industry. The restaurant is in a comfortable, familiar, small town that has a strong need for additional dining options. Bolstered by the need for more choices in family-oriented dining experiences, combined with the option for home-delivery, the restaurant is positioned to take advantage of the market need and serve the families in the Karachi.
This business plan calls for an exciting, profitable start-up year ahead with future forecasted growth as we meet the demands of the community. In all, this plan describes a healthy company with good growth prospects, looking to manage its orderly growth in the near future.
Highlights
Objectives
The objectives for Pizza Express are:
ü To establish the market presence needed to support marketing and sales goals and to attract customers.
ü To reach 400,000 monthly sales by the end of 2008, 500,000 average monthly sales by the end of 2009.
ü To achieve profit margins over 35%.
ü To develop top-rated relationships with 2-4 well-respected, all encompassing distributors.
Mission
Pizza Express creates a friendly and pleasant atmosphere for customers in a well-designed and productive environment in which people can work happily. We are sensitive to the look and taste of good pizza as well as to high-quality ingredients. We look to provide the best possible value to our customers who desire great tasting pizza and to provide customers with the satisfaction of receiving a great value, both tangibly and intangibly. Additionally, we are the first home-deliverer of pizzas in our area.
Keys to Success
The keys to success in this business are:
ü Delivering the customer value proposition.
ü Marketing: promoting a new company, product, and delivery channels to a rural community.
ü Product quality and consistency.
ü Pricing effectively with respect to the project quality and customer value proposition.
ü Family-oriented atmosphere with occasional nights of family entertainment.
ü Management: products delivered on time, costs controlled, marketing budgets managed. There is a temptation to fixate on growth at the expense of profits.
ü Reporting and controls in place for inventory and financials.
3. Company Summery
Pizza Express is a privately-owned pizza restaurant offering a product menu that does not currently exist in the area and first to offer home delivery. Our customers are many of the young families and students in the area.
Company Ownership
Pizza Express will be established Muhammad Uzair

Startup Summery
Our start-up costs come to approximately 1000,000, which is mostly renovation of the occupied store space, professional fees, and expenses associated with opening our first location. The start-up costs are to be financed by direct owner investment, financial institutions. The assumptions are shown in the following table and illustration.


Start-up
4. Management Summery
We are a small company owned and operated by Muhammad Uzair
Pizza Express are compromised of a team of dedicated and committed professionals, experts in their respective careers, striving to deliver the most compelling combination of products and services to its value driven clients.This is the basic reason why Pizza Express at its infant stage outperformed the food service/hospitality industry averages due to its controlled strategies.The brains behind this company possess rich, sizeable and unmatched experience of working in the hospitality market locally. Our team leaders are masters of this trait and have made a mark in the market, and are always at the forefront of new developments in this industry, with plans of pioneering and implementing several new innovations. Future endeavors include expanding operations on a global scale, for which this team of highly trained professionals has derived a forward-looking strategy – with the aim to compete in the national market and continuously improve on customer value.
Personal Plan
The personnel table assumes a level need of employees, and 5% per annum pay raises. Staffing for a 7-day a week restaurant necessitates two shifts. In addition to the hours open for serving we anticipate an additional hour before opening for prep and as much as an hour after closing for cleanup. This is approximately 8 hours of staffing necessary Sunday - Thursday and 10 hours on both Friday and Saturday.
5. Market Analysis Summery
Our primary target market is people who desire a comfortable, family-oriented environment for dine-in pizza. Our secondary target market also desires a delivery service for pizza, or a take-out approach. There is overlap of these segments.
According to a Growth Plan the Karachi conducted in 2008, population within city is expected to increase. However, the number of persons per household is expected to increase, meaning the need for additional housing in Karachi will continue to grow. From the same plan, population is listed as being evenly distributed by age groupings, with approximately 33% of the population being minors. Another 40% are less than 54 years of age, indicating a major concentration of the Karachi population being families. The report forecasts there being nearly 500000 households in the Karachi by 2008. This is driving the need for more quality, family-oriented restaurants..
With the expected continued growth in the area, estimated at 7% annually, opportunities to serve the Karachi and its surrounding communities will increase. The company will sell predominantly to individuals, but it will also accept some catering jobs to individual parties, schools, and company functions in the Karachi.
Market Segmentation
Those residents of neighboring communities of North Nazimabad, (Gulshan, Clifton & Tariq Road) including are included in the Market Segmentation. Only those residents of Karachi are included in the delivery, as delivery radius is limited to a 15-mile radius in the Karachi.
Target Market segment StrategyIncluding North Nazimabad, and its surrounding areas, no pizza establishments exist. In the City of Karachi one to two restaurants serve pizza, but not as a primary menu item these pizza outlets are in taverns which are not conducive to family-type atmosphere. No eating establishments in the North Nazimabad, area provide home-delivery service.
6. Financial Plan
The financial picture is quite encouraging. We will be slow to take on debt and heavily investing our own assets, but with our increase in sales we do expect to apply for a credit line with the bank, to a limit of 250,000. The credit line is supported by assets.
Important Assumptions
The financial plan depends on important assumptions. The key underlying assumptions are:
We assume a fairly high-growth economy for pizza in the North Nazimabad area, given the lack of competition and interest in having a pizza restaurant available in the area and pent-up demand.
We assume, of course, that there are no unforeseen changes in technology to make our products immediately obsolete.
We assume access to equity capital and financing sufficient to maintain our financial plan.
Break-Even Analysis

Our break-even analysis is based on running costs, the "burn-rate" costs we incur to keep the business running, not on theoretical fixed costs that would be relevant only if we were closing. The essential insight here is that our sales level seems to be running comfortably above break-even.


7. Web Plan Summery
The Pizza Express website will be the virtual business card and portfolio for the company, as well as its online "home." It will showcase the history, product information, and offers for Pizza Express. Special online-only offers will be made available on the website, along with customer's opportunity to sign-up for email news and offers.
The Pizza Express website needs to be a simple yet classy and well designed website that, at the same time, is in keeping with the latest trends in user interface design. Customers will be coming to the site for product information, history, and offers. Future elements of the site can contain online ordering, if customers express an interest in this functionality.
Website Marketing Strategy
Our Internet marketing activities will be focused on product information and offers. Future opportunities exist in offering online ordering.

8. Strategy and Implementation Summery
Our strategy is based on delivering a strong customer value proposition in a niche market. The world is full of small, family-oriented towns that do not have endless opportunities for dining out. We are looking to offer the Karachi and its surrounding areas a new choice in food options. Also:
ü We are building our marketing infrastructure so that we can eventually reach additional Area with the same offering.
ü We focus on satisfying the needs of all area.
Competitive Edge
Our competitive edge is to be first-to-the-market with pizza in a friendly, non-smoking, family-oriented dine-in experience, and first-to-the-area with food delivery.
Additionally, the location of Pizza Express is crucial as a convenience model to customers. This location is directly in the center of activity in this North Nazimabad community--it is within walking distance of the middle and high schools, the local Mosque, and within 2 miles of the existing large subdivisions and apartment complexes in the area.
Marketing Strategy
To drive customers to Pizza Express, we will employ several techniques.
As part of the advertising, a coupon will be available to customers. Intermittent newspaper advertisements will continue throughout the year to promote upcoming events. Most initiatives will focus on the local city papers as the target of these papers is specifically the Karachi residents. Additional marketing efforts will come in the form of on-box coupons for future purchases.
Additionally, family-oriented events will be hosted by Pizza Express to attract customers such as birthday parties, and prize giveaways. Frequent buyer cards will be employed to entice repeat customers.
9. Services
Pizza Express offers high quality pizza to a growing community that currently has limited availability of restaurants and no availability to delivery. At start up we will be open for dinner 1 p.m. to 12 p.m. Sunday - Thursday and 3 p.m. to 11 p.m. Friday and Saturday. We will consider opening earlier and serving lunch if there is a demand, and if forecast and financial analysis can justify the increased costs.
Our menu will include 4 sizes of pizzas with various combinations of toppings. Predefined, high-margin pizzas will be highlighted on the menu. Additionally, breadsticks, beer, and soda will be included in the initial menu offerings. In addition to the outlets and mobile unit, a home delivery service system is also in place with a dedicated service system is also in place with a dedicated fleet of riders that expand the service scope to a much larger area of Karachi.