- Internal Code :
- Subject Code : EAE7501A
- University :
- Subject Name : Enterprinure & Innovation
Entrepreneurship and Innovation - Part 1:
Business Concept and Lean Canvas of The Vigilant Vegan Restaurant
A Business model canvas is aimed at capturing the overview of the venture operations and its target market (Linder & Williander, 2017). This lean canvas will be beneficial in unfolding the value proposition of the restaurant, its key customers and the potential target market segments. It will stress on all the significant factors that will interact and allow the proposed venture to operate.
Product of Vigilant Vegan Restaurant
Since in today's era customers require food that tinted with the natural nuance, The Vigilant Vegan will lay its key focus on the ingredients that are used for preparing the meals. It will display the meals' ingredients on the box so that there is transparency in the operations and the customers are well-informed. It will provide services all days round a week and will be available from 7 AM to 11 PM on weekdays and 9 AM to 11 PM on the weekend.
Target Customer of Vigilant Vegan Restaurant
The customer segments are a crucial part of a business as it allows in narrowing down to the potential segment that needs to be tapped (Dibb, S., & Simkin, 2016). The Vigilant Vegan restaurant will serve the people in the UK in terms of fresh vegetarian food. It will, however, initially distinctively target the people in London in the initial month as it will be based in the capital city. Since it is home to 107200 international students, encompass a large number of hostels and is a hub to many offices incorporating the corporate buildings and industries, The Vigilant Vegan restaurant will exclusively target these people for delivering its unsullied and healthy food. The whole UK has around more than 485645 students from overseas and also has a population of working people from all across the globe who have not settled with their respective families. The restaurant will gradually target a similar customer segment in the whole country.
Route to Market
- Channels
The channels play a vital role in the promotions of the business (Taha & Yoo,). The key channels of The Vigilant Vegan will be social media platforms and listing the firm on Google for its exclusive serves for people working offices, for students and people not living with their families. An application will be developed with the firm’s name.
- Customer relationships
The restaurant will aim to build an effective relationship with the customers and elevate brand loyalty. It will provide the 'Vigilant coupon' after the customers place seven orders; it will let them avail 35 per cent off on the next order. The data such as birth date of the customers will be collected and on their birthdays they will be sent greetings via SMS and will be provided with a 'Vigilant Birthday Deal' to avail 30 per cent off on orders for that day.
- Key partners
The key partners will encompass research services, logistics partner, meal box designers, best chefs and food bloggers.
- Key resources
Human resources involving chefs and delivery boys, the raw material of food and infrastructure and financial resources involving capital are the key resources are required for the business.
Value to Customers
The business will elevate its value by delivering healthy, fresh and vegetarian food at the doorsteps or desks of the customers in the shortest possible time.
Validity of the Proposed Plan
PESTEL Analysis
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Factors |
Impact |
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Political factors |
General Food Law Regulation can impact the operations of the restaurant in terms of strict compliance with the hygiene standards, quality, substances and distribution |
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Economic factors |
A rate of 5% is witnessed in the food industry and restaurant chains which is appreciable for the restaurant business, however, the VAT charges are high (Ulijaszek & McLennan, 2016). |
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Social factors |
According to the results published by the Health Survey for England (HSE), around 30 per cent of the people in the UK are obese; it is a key issue in the country (Conolly, Saunders & Neave, 2017). Obesity usually occurs as a result of unhealthy eating and disturbed patterns of eating. It will allow the restaurant to target people requiring diet meals (Conolly, Saunders & Neave, 2017). |
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Technological factors |
Online shopping and food ordering trend are growing in the country as a result of the integrated network (Alalwan, 2020). |
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Environmental factors |
The Control of Pollution Act can regulate the business’s operations for producing minimal waste (Bahuguna, 2020). |
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Legal factors |
Health and safety law and Anti-trust law in the Food & Beverage industry can strictly monitor the operations of business n context of quality |
Porter’s Five Forces
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Bargaining power of the buyers |
The pure vegan food chains are present in the market but the ones specifically for the office workers and students are limited and also they do not effectually deliver food in the minimal time as by proposed business, hence, the bargaining power of buyers is low. |
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Bargaining power of the suppliers |
There are numerous suppliers involving the vendors, farmers and retailers that supply the raw materials, hence, the bargaining power of the suppliers is low. |
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Threat of rivalry |
The rivalry will be low as there is minimal competition in serving the decided target market and that too all days a week with the special offers (Yang & Nie, 2017). |
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Threat of new entrants |
This threat is high as there is a wide gap in this industry. |
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Threat of substitute |
This threat is low as The Vigilant Vegan delivers customized meals a per the needs of the customers and will build the loyal framework of customers which will further diminish the possibility of substitution. |
Customer Discovery Process
The key customers will include those individuals work in offices or live in hostels or do not live with their families and want to get healthy, fresh and vegetarian food at their doorsteps or desks in the minimal time. The restaurant will cater to the needs of the people to get access to vegetarian food at the earliest at affordable prices. Also, it will keep in mind that some customers are extremely conscious about health or are suffering from obesity.
Revenue Structure
The key source of revenue will be the food that will be offered to the customers. Other potential sources of revenue will be the social media page of the business. The cost structure is a key component of any business (Aboody, Levi & Weiss, 2018). The Vigilant Vegan’s cost structure will be segmented into fixed and variable costs. Variable cost will encompass the day to day operations such as preparing meals, delivering to customers and taxes. The fixed cost will be the start-up capital which will be $500000. The profit is expected to be $2000 in the initial month. It will be the break-even point for the initial month. The cost structure will also include legal expenses, food licensing, accounting, public relations and marketing. The delivery charges will be 3 pounds for individuals and for the group will be 1 pound.
Evaluation of Vigilant Vegan Restaurant
SWOT Analysis
- Strengths
- Experiences chef and trained staff
- Cheaper prices than competitors
- 100 per cent vegetarian food for vegans
- Diet-food and customized healthy snacks
- Delivery all across the UK and all days a week
- Weaknesses
- High petrol and diesel costs for delivery bikes
- Availability of limited funds
- Opportunities
- Collaboration with the giants like Greggs to deliver the Vegan food parcels with sandwich combos on weekend
- Threats
- Higher taxation of the food trucks
- High staff turnover
It can be inferred from the above-proposed canvas and the analysis that the plan is quite feasible. The feasibility can be analysed from the fact that there is no robust rivalry in the industry in terms of targeting the market segment that The Vigilant Vegan will be targeting. Also, the economic factor supports the growth of the business as the food industry is progressing at a 5 per cent rate. Also, the issue of obesity further pushes the acceptability of the business among the customers.
Entrepreneurship and Innovation - Part 2:
Reflection and Conclusion on Entrepreneurship and Innovation
After deciding the potential business solution, I analysed the fact that the business can be a flourishing one in the country primarily due to the specific target market that it will tap. I also came to know about the basic idea of entrepreneurship. Entrepreneurship is defined as basically the process of creation of value of extraction of the same from a proposed idea (Mullins John, 2003). It is the process of managing a new venture and taking the initiative to make a profit (Blank, 2013). From the module, I learn about how a new business needs to lay prominence on the resources for the successful establishment in the market.
Timmons Model
This model lays prominence on all the imperative operations required for commencing an entrepreneurial process. The integral highlights of this mode are resource marshalling, opportunity evaluation and formation of an entrepreneurial team. I analysed from this model that in the entrepreneurial process, it is vital to amalgamate these procedures and make sure that the opportunity is effectually studied. According to the authors Timmons, Spinelli & Tan (2009), creating a new establishment requites sound analytical skills and creative thinking. They have suggested that effectuation is an alternative to the STP and is descriptive in nature. I used this to come up with the idea of The Vigilant Vegan restaurant because I did not want to serve the wider market and serve all the junk food and crispy chicken legs.
I wanted to serve an entirely different segment with different needs. It is an optimal segment separated from the predetermined market. As stated by authors, effectuation simply describes the ways in which the entrepreneurs think (Timmons, Spinelli & Tan, 2009). This makes the entrepreneurs capable of thinking in an environment that is characterized by high levels of risks and uncertainties. I acknowledge that organizations today have to perform in a completely dynamic and complex atmosphere and this is the reason that I mainly stressed on the needs of the customers as the key priority and ensured that the major operations and mobility of the business are dependent on their response.
During the module learning and from the process of framing the business idea, I came to know about the idea of cognitive adaptability. It is basically the flexibility that the entrepreneurs incorporate in their thinking and operations. I think I am self-regulating enough if I consider myself in terms of embracing the dynamics as I have effectually listed the opportunities and the possible threats of the business.
- Opportunities
Opportunity factor is critical in the entrepreneurship as it accentuates the process of extracting the key idea from the prospect (Timmons, Spinelli & Tan, 2009). Identification of the risks opportunity is crucial in ensuring that long-term success is guaranteed. I think I was able to identify a prospect that is feasible and can be successfully applied considering the key factors namely, the needs of the people to get vegetarian food, fulfilling the needs of the people who live away from the families and the office workers and the customers requiring customized diet meal. This plan is quite unambiguous as it exclusively taps the identified customers.
- Team
A skilled entrepreneur must be equipped with the ability to ensure that the teamwork is fostered and the best talent is put together (Timmons, Spinelli & Tan, 2009). I have ensured this by making sure that the best chefs will be recruited in the staff. Also, it will be ensured that the delivery individuals will be provided with effective training.
- Resources
For attaining the competitive advantage, it is crucial that the resources are effective. It is also effective in making sure that the pressure concerned with growth (Timmons, Spinelli & Tan, 2009). I have effectively listed the resources that will be required using the human resources involving the chefs and delivery bikes and trucks and financial resources.
References for Entrepreneurship and Innovation
Aboody, D., Levi, S., & Weiss, D. (2018). Managerial incentives, options, and cost-structure choices. Review of Accounting Studies, 23(2), 422-451.
Alalwan, A. A. (2020). Mobile food ordering apps: An empirical study of the factors affecting customer e-satisfaction and continued intention to reuse. International Journal of Information Management, 50, 28-44.
Bahuguna, A. (2020). Environmental Justice in the Constitution of India “Analytical Study with Special Reference to Prevention and Control of Pollution in India “. Studies in Indian Place Names, 40(50), 1603-1607.
Blank S (2013). ‘Why the Lean Start-Up Changes Everything’. Massachusetts: Harvard Business Review.
Conolly, A., Saunders, C., & Neave, A. (2017). Health Survey for England 2016: Adult overweight and obesity. Health and Social Care Information Centre. Retrieved from: http://healthsurvey.hscic.gov.uk/media/63745/HSE2016-Adult-obe.pdf
Dibb, S., & Simkin, L. (2016). Market segmentation and segment strategy. Marketing theory: A student text, 251-279.
Linder, M., & Williander, M. (2017). Circular business model innovation: inherent uncertainties. Business strategy and the environment, 26(2), 182-196.
Mullins John, W. (2003). The New Business Road Test. Harlow: Pearson Education.
Taha, K., & Yoo, P. D. (2019). Shortlisting the influential members of criminal organizations and identifying their important communication channels. IEEE Transactions on Information Forensics and Security, 14(8), 1988-1999.
Timmons, J. A., Spinelli, S., & Tan, Y. (2009). New venture creation: Entrepreneurship for the 21st century (6). New York: McGraw-Hill/Irwin.
Ulijaszek, S. J., & McLennan, A. K. (2016). Framing obesity in UK policy from the Blair years, 1997–2015: the persistence of individualistic approaches despite overwhelming evidence of societal and economic factors, and the need for collective responsibility. Obesity Reviews, 17(5), 397-411.
Yang, Y. C., & Nie, P. Y. (2017). Asymmetric competition in the food industry with product substitutability. Agricultural Economics, 62(7), 324-333.
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