MNG00314 Entrepreneurship And Innovation

MNG00314 Entrepreneurship And Innovation

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MNG00314 Entrepreneurship And Innovation

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MNG00314 Entrepreneurship And Innovation

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Course Code: MNG00314
University: Southern Cross University

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Country: Australia

Question:

Write a report on business plan for the Slurppy Noodles.

Answer:
Introduction
The current report has been provided as a business plan for the Slurppy Noodles, a company which has decided to enter into the Australian market to satisfy the growing demand of instant noodles. This business plan will allow the company to attract a potential Client or investor who is willing to fund the project by providing a seed fund that is necessary for the growth as well as operations in the early stages of the company. The business plan will provide in detail the type of establishment, the implemented managerial structure and selection of marketing strategies. The report will also make discussions that will be relevant in understanding the threat of competitors by making use of a competitor analysis. The necessary financial overview of operating such an organisation will also be provided. The different types of risks and challenges will be identified and discussed in context of the Slurppy Noodles.
Description of venture
The Slurppy Noodles is a resultant of the growing demand for high quality as well as fresh noodles by consumers in the Australian market. There have been several companies providing and supplying Noodles for a wide range of market like for restaurants as well as for the day to day consumers who buy the noodles from Supermarket or the food outlets. Instead of just focusing on only noodles, the Slurppy Noodles has plans to proliferate its product portfolio buy serving other Asian cuisine items such as gyoza, soups and dumplings. The mission statement of the company is to provide high-quality food items that will be able to satisfy the taste buds of the Australian population. The vision of the company is to expand its presence all over Australia and become renowned as premium and authentic noodle makers. The noodle makers understand that a single variety of noodle will not make enough impact on the market due to the presence of heavy competition as commercial manufacturers as well as noodle makers which is why the company will provide supplies of the traditional Ramen Noodles along with other varieties of noodles such as Yaki Soba noodles, Mizo noodles of varying thickness and length which will be appreciated by the consumers (Farrand et al. 2017). The plans for product expansion are at the moment only limited to noodles. With enough revenue and profit, the Slurppy Noodles in near future may enter into a full-blown supplier of Asian cuisine items.
Management
Legal structure
The Slurppy Noodles initially began its journey as a sole proprietorship wherein the cost of setting up the business was minimal and the business is to be owned and operated by a single individual, this type of legal structure was chosen. However, there are certain merits and demerits of implementing a sole proprietorship for a company which aims to serve the people of Australia. According to Sacks et al. (2015), the merit of using a sole proprietorship legal structure is that the profits that are made during the business operations are taxed in the form of personal income. However, the major disadvantage is the unlimited liability of the individual owner for the claims as well as debts in business. In case of death of the owner, such organisations are susceptible to dissolution. Once enough revenue has been generated and different individuals come together into play the idea is to transform the legal structure from sole proprietorship to a limited liability company. The limited liability provides the individuals owning the company protection of assets while being taxed as partners or sole proprietors. With the increase in members or owners, there will be an investment in the company shares in exchange of percentage ownership and this will enable in formulating the operating agreement which will be helpful in sorting out the internal arrangements while running the business (Wilson 2016). 
Operational management
The organisational structure that will try the Slurppy Noodles is functional organisational structure which is a derivative of line structure. Similar to the lines for sure the company will be headed by a single individual who will appoint the directors and managers. The organisation is subdivided into smaller units with specialised functions like finance, marketing and product research and development. This type of organisational structure has been selected because it provides room for a greater efficiency in terms of operations and the employees are involved in sharing their skills as well as knowledge and work together as a team (Chaisse 2014). The primary disadvantage of such a structure is that there may be communication gap among the various functional units that will hinder flexibility as well as ability to innovate. In order to minimise the occurrence of such gaps the Slurppy Noodles will try implementing the cross traditional departmental lines that will help in greater interaction among the different functional units that will boost the performance and efficiency of the Slurppy Noodles. Since the initial phase will see only a few core members collaborating and coordinating together to develop and sell the products, it is necessary to implement a simple organisational structure which allows flexibility and minimises the chance of communication gap (Kamp 2018). With increase in revenue and supply, the Slurppy Noodles will look towards adoption of complex organisational structures such as the matrix structure or the project-based structure.
Marketing
Target market
With rising demand noodles and other Asian delicacies, the Slurppy Noodles needs to target and segment the Australian market which will help them to identify the potential customers. Apart from restaurants, the Slurppy Noodles will target the young generation of Australians and also those individuals who live alone without their family because of career or academic reasons (Crook 2017). The two characteristic features of the products sold by the Slurppy Noodles will be a wide range of flavours and ease of cooking the dishes. These two factors are assumed to be the primary influencer in consumer psychology which will result in making purchase decisions. The target market for the products of Slurppy Noodles have taste preferences and is primarily targeting the age group of 5 and above. As observed by Kim & Park (2018), the largest section of the target market will be teenagers and individuals having a Limited source of income. This section of the market as being targeted because easy availability and affordability of the products complimented with the ease of cooking them are quite unique in the existing market. The working-class bachelors are also targeted by the company and the noodles can act as a quality source of nutrients which can energize and individual without exerting too much effort. The final market segment that the Slurppy Noodles targets are Asian cuisine restaurants which will procure the raw materials from Slurppy Noodles for their dishes that are to be served the customers. According toKim & Ellis (2015), along with the consumer market, the commercial market has been also selected as a target market because of highly competitive challenges and greater chances of making significant profits. 
Communication strategy
The approach to communication strategy to interact with the market that has been targeted depends on the type of product that the Slurppy Noodles wishes to sell. The Slurppy Noodles has the vision to serve the multidimensional market that like quality Asian food items as snacks or as dining options (Vitalis 2015). Hence, in order to lure in the potential customers, the Slurppy Noodles has to focus on the promotional activities as well as the pricing strategy. The products will be priced moderately in order to compete with the existing market competitors. The promotional activities will mainly include advertisement using print media such as locally run newspapers as well as some form of television commercials. The company can also strike a bargain with the local celebrities who can promote the company and its products. Consumers can be also invited directly by forwarding invitations and by word of mouth promotions.
Competitor analysis
Competitive rivalry
The market value of Slurppy Noodles is challenged by the increasing competition from International manufacturers as well as the growth of local and small-scale manufacturers of noodles. The majority of profit that will be made by the Slurppy Noodles will be derived from noodles and in order to do soap the company is to utilise the latest as well as the modern technology in order to produce high-quality noodles. The increase in health consciousness in the Australian market has compelled The Other manufacturers to introduce products which are specifically made for such consumers. According to Tran (2016), the Australian noodle market is still in its nascent stage and traditional by nature. Majority of the market is controlled by Cooperative and international brand such as Nestle. Overflooding of the Marketplace cheap products can be very detrimental for the Slurppy Noodles. Cheap alternatives are viable options for the consumer even though they are not healthy is just because they are cheap and have a brand tag. In order to sustain itself in the Marketplace, the Slurppy Noodles needs to effectively design a marketing mix that we consider the several external and internal factors plaguing the noodle market in Australia. 
Threat due to new entry
The main factor that challenges the Slurppy Noodles and its growth and substance in the Australian market is the fact that it is a new entrant into the market. Hence it is recommended that the company needs to innovate products as well as services that not only expands the existing customer base but also helps in increasing the brand awareness. Another threat for a new entrant light Slurppy Noodles is the fact that the multinational companies and cooperative keep our head of the competitor by building economies then lowers the fixed cost per unit (O’Brien 2017). This company are also responsible for investing significant amount of money to build capacities that makes research and development possible. It will be difficult for Slurppy Noodles to enter dynamic market like this where the major noodle manufacturer’s heap defining the industry standard. Inability to keep up with their standards will result in declining profit and consistently losing profit will discourage new entrants like the Slurppy Noodles.
Financial analysis

Profit and Loss statements 

Particulars 

Month 1 

Month 2 

Month 3 

Quarter 1 

Month 4 

Month 5 

Month 6 

Quarter 2 

Month 7 

Month 8 

Month 9 

Quarter 3 

Month 10 

Month 11 

Month 12 

Quarter 4 

Total 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Sales 

$    1,125 

$    1,575 

$    2,250 

$      4,950 

$    3,938 

$    5,625 

$    7,875 

$    17,438 

$    9,450 

$  10,800 

$  11,475 

$    31,725 

$    14,625 

$    16,875 

$    18,000 

$    49,500 

$ 1,03,613 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Sale to albert 

$       300 

$       300 

$       300 

$         900 

$       300 

$       300 

$       300 

$         900 

$       300 

$       300 

$       300 

$         900 

$         300 

$         300 

$         300 

$         900 

$      3,600 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cost of Good sold 

$       404 

$       566 

$       808 

$      1,778 

$    1,414 

$    2,020 

$    2,828 

$      6,262 

$    3,394 

$    3,878 

$    4,121 

$    11,393 

$      5,252 

$      6,060 

$      6,464 

$    17,776 

$    37,208 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Gross Profit 

$       721 

$    1,009 

$    1,442 

$      3,172 

$    2,524 

$    3,605 

$    5,047 

$    11,176 

$    6,056 

$    6,922 

$    7,354 

$    20,332 

$      9,373 

$    10,815 

$    11,536 

$    31,724 

$    70,004 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Less Expenses 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Carraige 

$       180 

$       221 

$       316 

$         717 

$       553 

$       790 

$    1,106 

$    11,176 

$    1,327 

$    1,516 

$    1,612 

$      4,455 

$      2,054 

$      2,370 

$      2,520 

$      6,944 

$    23,291 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Rent 

$       550 

$       550 

$       550 

$      1,650 

$       550 

$       550 

$       550 

$      1,650 

$       550 

$       550 

$       550 

$      1,650 

$         550 

$         550 

$         550 

$      1,650 

$      6,600 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Packaging and Shipping 

$       238 

$       333 

$       475 

$      1,045 

$       831 

$    1,188 

$    1,663 

$      3,681 

$    1,995 

$    2,280 

$    2,423 

$      6,698 

$      3,088 

$      3,563 

$      3,792 

$    10,442 

$    21,866 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Salary 

$    1,458 

$    1,458 

$    1,458 

$      4,375 

$    1,458 

$    1,458 

$    1,458 

$      4,375 

$    1,458 

$    1,458 

$    1,458 

$      4,375 

$      1,458 

$      1,458 

$      1,458 

$      4,375 

$    17,500 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Assitant salary 

$       200 

$       200 

$       200 

$         600 

$       200 

$       200 

$       200 

$         600 

$       200 

$       200 

$       200 

$         600 

$         200 

$         200 

$         200 

$         600 

$      2,400 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Boxes and decorative paper expenses 

$         44 

$         44 

$         44 

$         132 

$         44 

$         44 

$         44 

$         132 

$         44 

$         44 

$         44 

$         132 

$            44 

$            44 

$            44 

$         132 

$         528 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Total expense 

$    2,670 

$    2,806 

$    3,043 

$      8,519 

$    3,637 

$    4,230 

$    5,021 

$    21,614 

$    5,574 

$    6,048 

$    6,286 

$    17,909 

$      7,394 

$      8,185 

$      8,564 

$    24,143 

$    72,185 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Profit/ Loss 

$  -1,949 

$  -1,796 

$  -1,601 

$    -5,347 

$  -1,113 

$      -625 

$         26 

$  -10,438 

$       482 

$       873 

$    1,068 

$      2,423 

$      1,979 

$      2,630 

$      2,972 

$      7,581 

$     -2,181 

 
Key risks and challenges
Perhaps the biggest challenge that the Slurppy Noodles may face despite the versatility of their products is market penetration. The current Fast Food Industry has provided the customers with a wide range of choices in form of Pizzas, burgers, tacos, fried chickens etc. This means that the noodle-based industries haven’t been able to capitalise on a large extent in the Australian market. As observed by Ogundele, Ogunnaike, Taiye & Ngozi (2017), another challenge for the Slurppy Noodlesis the constant media scrutiny pertaining to the impact of noodles and associated dishes on the health of an individual. Traditionally the dishes contain a high level of carbohydrates, sodium as well as gluten which has previously forced the community to curb their eating habits.
Conclusion
The current report has been prepared in response to the need for a business plan for the Slurppy Noodles. The idea of establishing a noodle making company in Australia not only requires investments but also a very skilled workforce. The business plan will help in identifying the potential of the Slurppy Noodles which will be useful for obtaining the seed fund that will assist the company operations as well as procurement of raw materials and salaries for the workforce. The business plan presented contains the background of the venture along with the legal as well as an organisational structure that is to be implemented in the company. The detailed discussion has been made in the context of the targeted market which will be used for effectively communicated with the market segments. The communication strategies involved has been also discussed. Due to the fact that it is a company is a new entrant in the Australian food market, the business plan identifies the threats of competition by undertaking the competitive analysis. Financial requirements havebeen identified by conducting the financial analysis. Risks and challenges have been also evaluated. 
References
Farrand, C., Charlton, K., Crino, M., Santos, J., Rodriguez-Fernandez, R., Ni Mhurchu, C., & Webster, J. (2017). Know Your Noodles! Assessing Variations in Sodium Content of Instant Noodles across Countries. Nutrients, 9(6), 612. Doi = 10.3390/nu9060612
Sacks, G., Mialon, M., Vandevijvere, S., Trevena, H., Snowdon, W., Crino, M., & Swinburn, B. (2015). Comparison of food industry policies and commitments on marketing to children and product (re) formulation in Australia, New Zealand and Fiji. Critical Public Health, 25(3), 299-319. Retrieved from: https://scholar.googleusercontent.com/scholar?q=cache:w3Fde5LzXKsJ:scholar.google.com/+Sacks,+G.,+Mialon,+M.,+Vandevijvere,+S.,+Trevena,+H.,+Snowdon,+W.,+Crino,+M.,+%26+Swinburn,+B.+(2015).+Comparison+of+food+industry+policies+and+commitments+on+marketing+to+children+and+product+(re)+formulation+in+Australia,+New+Zealand+and+Fiji.+Critical+Pub&hl=en&as_sdt=0,5&as_ylo=2014
Wilson, J. D. (2016). Can the Trans-Pacific Partnership multilateralisethe’noodlebowl’of Asia-Pacific trade agreements?. Retrieved from:https://scholar.googleusercontent.com/scholar?q=cache:hkmCnbpzNIYJ:scholar.google.com/+Wilson,+J.+D.+(2016).+Can+the+Trans-Pacific+Partnership+multilateralise+the%27noodle+bowl%27of+Asia-Pacific+trade+agreements%3F.&hl=en&as_sdt=0,5&as_ylo=2014
Crook, W. (2017). Rules of Origin: can the noodle bowl of trade agreements be untangled?. Retrieved from: https://scholar.googleusercontent.com/scholar?q=cache:mGbmpvvEj4YJ:scholar.google.com/+Crook,+W.+(2017).+Rules+of+Origin:+can+the+noodle+bowl+of+trade+agreements+be+untangled%3F.&hl=en&as_sdt=0,5&as_ylo=2014
Kim, S., & Park, E. (2018, June). JAPANESE UDON NOODLE TOURISTS: WHAT MATTERS?. In 8th ADVANCES IN HOSPITALITY AND TOURISM MARKETING AND MANAGEMENT (AHTMM) CONFERENCE (p. 163). Retrieved from: https://scholar.googleusercontent.com/scholar?q=cache:l_XTxVmx9vEJ:scholar.google.com/+Kim,+S.,+%26+Park,+E.+(2018,+June).+JAPANESE+UDON+NOODLE+TOURISTS:+WHAT+MATTERS%3F.+In+8th+ADVANCES+IN+HOSPITALITY+AND+TOURISM+MARKETING+AND+MANAGEMENT+(AHTMM)+CONFERENCE+(p.+163)&hl=en&as_sdt=0,5&as_ylo=2014
Chaisse, J. (2014). The investment version of the Asian noodle bowl: The proliferation of international investment agreements. Retrieved from: https://www.adb.org/publications/investment-version-asian-noodle-bowl
Kim, S., & Ellis, A. (2015). Noodle production and consumption: From agriculture to food tourism in Japan. Tourism Geographies, 17(1), 151-167. Doi = 10.1080/14616688.2014.978812
Kamp, A. (2018). Chinese Australian women’s ‘homemaking’and contributions to the family economy in White Australia. Australian Geographer, 49(1), 149-165. DOI = 10.1080/00049182.2017.1327783
Vitalis, V. (2015). Regional economic integration and multilateralism: The case of the ASEAN-Australia-New Zealand FTA and the Malaysia-New Zealand FTA. Retrieved from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2597516
Tran, T. (2016). The development of a business plan for Nood. Retrieved from: https://scholar.googleusercontent.com/scholar?q=cache:9HvdP0AehHsJ:scholar.google.com/+Tran,+T.+(2016).+The+development+of+a+business+plan+for+Nood.&hl=en&as_sdt=0,5&as_ylo=2014
O’Brien, L. (2017). Eric Bond and the grains industry-shaping Australia’s bread research institute. Agricultural Science, 29(1), 50. Retrieved from: https://search.informit.com.au/documentSummary;dn=413942847507634;res=IELHSS
Ogundele, T. O., Ogunnaike, O. O., Taiye, T. B., & Ngozi, N. (2017). INTRAPRENEURSHIP PRACTICES AND PRODUCT COMPETITIVENESS IN THE NOODLES INDUSTRY: A STUDY OF MINIMIE NOODLES. Theme:”Entrepreneurship and the Knowledge Economy”, 437. Retrieved from: https://scholar.googleusercontent.com/scholar?q=cache:tM2eKeYzW8sJ:scholar.google.com/+Ogundele,+T.+O.,+Ogunnaike,+O.+O.,+Taiye,+T.+B.,+%26+Ngozi,+N.+(2017).+INTRAPRENEURSHIP+PRACTICES+AND+PRODUCT+COMPETITIVENESS+IN+THE+NOODLES+INDUSTRY:+A+STUDY+OF+MINIMIE+NOODLES.+Theme:%E2%80%9CEntrepreneurship+and+the+Knowledge+Economy%E2%80%9D,+437.&hl=en&as_sdt=0,5&as_ylo=2014

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