Hypothetical Business Strategy And Legal Structures Commerce Essay


The businesses prime function is to provide busy people like hard-working businessmen with the opportunity to purchase quality, healthy home cooked meals fast. The business aims to make a profit from activities that benefit people while also providing top quality products at a low price.


"----------------" is situated off the free way exit of Mulgoa road. The reason for its positioning is :

It is easily accessible from the Penrith CBD

It is highly visible to the public

Its location provides it with a high proximity to the target market (businessmen).

Other businesses in the area compliment it.

Less competition as it is located in the western suburbs which does not have ready access to gourmet meals.

Larger area for parking.

High proximity to suppliers

A commercial property was for sale at the time. So as part of the financial planning it was decided that it was a worthwhile investment for both the business and also for long term possibilities.

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Legal Structure

The business currently exists as Proprietary Limited. The reason for this includes the advantages of Perpetual succession and limited liability. Meaning that the business will continue to exist if the owner dies and liabilities are shared amongst shareholders. In addition to this the business does not aim to exceed fifty members in its current state and time.

Business Mission:

"To bring equal opportunity to all people."

…............ is dedicated to providing top-quality and healthy takeaway food to the public. The business exists as the current market is full of businesses that serve fast, unhealthy food unlike this business. Most of these businesses focus on selling small, unhealthy meals mainly for the generation of profits.

The business seek to minimise their market share to benefit society by diverting them from unhealthy takeaway foods. The business does aim to generate profits although from activities that benefit people. The business also seeks to expand and promote healthy eating in Australia.

Short term goals

-Break even in the first year

-Stay in business for over 3 years - Most businesses fail within the early years of opening

-Own >10% of market share - By offering low prices and good customer service the business aims to increase to at least 10% market share between the first 3 - 5 years.

Long term goals

The business aims to expand itself and open more stores in Western Sydney, in areas where there is an absence in the market.

Become a public business if market popularity is high

Achieve a constant and adequate return to shareholders

Achieve >50% of market share


Maintain OH&S standards with ergonomic furniture and safe cooking equipment.

Maintain cheap prices and top quality products to all customers

Follow all business regulations and act ethically and responsibly.

Beat competitor pricing

Staffing Requirements:

The business is managed by its owner.

The business requires chefs, front-end staff, cooks, drive through staff , cleaning staff and a resident dietician.

A full-time head chef must be qualified with a recognised hospitality degree or similar and have high levels of experience. They also must be able to work efficiently and provide food that meets the customers standards.

Three full-time cooks are also required. They do not require hospitality degrees like the chefs but must have some experience. Cooks will be trained on the job under guidance by the head chef which will involve learning to cook different dishes, techniques and skills.

Several part-time drive through serving staff will be hired and do not require any qualifications or skills but are required to be informative, able to work efficiently under pressure, must be polite and must have some level of education. Training is provided on the job as it is a not very difficult job.

Part-time front-end staff will be hired and are expected to be informative and able to process orders efficiently while also being well mannered. Training is provided on the job and no qualifications are necessary for this position.

One cleaner will be hired part-time and no qualifications are required. they must be able to clean effectively and efficiently and training is not an issue,

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One resident dietician will be hired part-time. They must be qualified with a dietetic degree and will be responsible to help promote good health through proper eating. They must supervise the preparation and service of food, participate in research and educate customers on healthy foods.

The skills that management need include the ability to be able to work well with people and in teams and groups, be effective in monitoring and resolving problems of all kinds in the workplace, able to manage time effectively, able to monitor and maintain a high quality staff, have oral communication skills, skills for planning and have skills in finance.

Marketing Plan:

The businesses target market is hard-working business men and women who do not have time to prepare and enjoy healthy home cooked meals. The target market also includes working women, single person households, the health conscious and stay at home children all of which are increasing in number.

The business does not experience much competition due to its Western Sydney location where healthy home cooked gourmet meals are not as readily available. Some competition may still exist due to fast food restaurants like McDonalds, KFC etc.

The business will gain a competitive advantage over its competition in several ways:

(i) The businesses' location as there are little to no businesses that meet the businesses function and provide the similar products.

(ii) The businesses' innovative products are unique when compared to other restaurants by serving healthy fast "home cooked" meals.

(iii) The business advertises in other business where health conscious people exist like gyms, pharmacies and medical businesses giving it an edge over its competitors.

(iv) The business has deals for the target market like a customer with a certain gym membership is entitled to discounts.

(v) The business is in a convenient location for the businesses target market.

(vi) The products quality is far better than fast food restaurants

(vii) The business provides better customer service than other restaurants for example providing customers with a resident dietician and weekly specials and news sent to your email.

(viii) Convenience in the ordering process where orders are made in advance online with a confirmation sent to the email address

(ix) The business has a greater range of products available when compared to other "fast-food" restaurants.

The target market includes hard-working business men and women. Discounts for orders by businesses will help draw hard working people in businesses, deals with gym-memberships like discounts will promote the health conscious, attractive and informative pamphlets will be distributed to the public with a focus on distributing pamphlets to local businesses and businesses that promote health. Catering for businesses will also help to promote the business to the target market. Advertisements will also be placed in the yellow and pages and in newspapers.

The business employs several methods of distributing its products. The obvious methods include handing ordered meals to customers over the front end counter and through the quick drive-through. The business also provides delivery for very large orders which are usually made by large businesses. Leftovers are also distributed to charities to keep a good business image.

Future Prospects:

The business aims to expand itself and open more stores in Western Sydney and in areas where there is an absence in the market and possibly expand Australia wide. The business also aims to become a public business and eventually own over 50% of the market share.