Review and Implementation of Business Plan
- Analysis of Strengths and Weaknesses of Business Plan
It is noted that Rooster Burger is operating on breakeven since its inception, indicating that there might be some issues in business plan of the restaurant which did not set clear scope of its business activities.
- Strengths of Rooster Burger Business Plan
In terms of strengths of business plan of Rooster Burger, the market need has been carefully identified along with characteristics of target customers. The products as well as delivery services are well aligned with identified needs of the target market. The unique selling point of Rooster to deliver to customers on their desks is clearly communicated in the business plan which indicates that understanding of customers’ preferences is realized by the business. The mechanism to communicate with customers and to approach them is highly important for defining success of any new business and its importance is realized in business plan of Rooster Burger (Goncharova, Solosichenko & Merzlyakova, 2019).
- Weaknesses of Rooster Burger Business Plan
Although, Rooster Burger has defined the market need in clear manner, yet it has not highlighted the points of pains (for customers) which are not being addressed by the competitors. The business plan has not provided any detail of the competitors with which Rooster Burger is aiming to compete. Without assessing the positioning of competitors, the statement of competitive edge cannot be defined and success of future business cannot be assured (Fahey, 2020). Rooster Burger’s business plan has not detailed its pricing strategy, which makes it vague that whether business is aiming to follow value based or cost based pricing. It cannot be assessed that whether price of products is acceptable by customers and whether they associate value creation with Rooster Burgers meals. The lack of detail on pricing makes it difficult to make projections about revenue and future profitability of business (Cant, Wiid & Sephapo, 2016). The information on customer relationship has also not included in the business plan. The lack of clarity on managing relationship with customers can affect future sales and revenue of restaurant (Ponnam & Paul, 2017). Finally, the financial forecasting has not been performed and without such projections it is difficult to assess that how much sales are needed to achieve the breakeven and to perform beyond breakeven (Palepu et al., 2020)