Redhawks Consulting Souk el Tayeb “Good Food Market”
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Transcript of Redhawks Consulting Souk el Tayeb “Good Food Market”
I. AnalysisI. PESTLEII. SWOT AnalysisIII. The CompanyIV. Financial Analysis
II. Alternatives
III.Recommendation
IV. Implementation
.
Table of Contents
Population
• 3,9 million people• 1,154% population growth• 95% Arab • 87,4% literacy rate
External Analysis
Ecological
• Plentiful farm land• Dust storms• Sand storms• Soil erosion• Air pollution from vehicular
traffic
Social
• Family-oriented• Arabic-speaking• 59,7% Muslim, 39% Christian• Republic nation
Economic
• 5,1% of GDP is agricultural• 75,9% of GDP is services• 1,5 million people ni the labor
force• 4,1% inflation rate• GDP per capita = USD$11,300
PESTLE
Strengths
• Using food to support sustainable agriculture and living*
• Strong vision and mission• Human capital
* Distinctive competency
Weaknesses
• Limited resources• Low margin for profitability
Opportunities
• Expansion into other markets
• Growing interest in sustainability• Lack of local competitors
Threats
• Environmental factors• Governmental regulation• Price of organic food
Strengths
• Using food to support sustainable agriculture and living*
• Strong vision and mission• Human capital
* Distinctive competency
Weaknesses
• Limited resources• Low margin for
profitability
Strengths
• Using food to support sustainable agriculture and living*
• Strong vision and mission• Human capital
* Distinctive competency
Weaknesses
• Limited resources• Low margin for profitability
Opportunities
• Expansion into other markets
• Growing interest in sustainability
• Lack of local competitors
Threats
• Environmental factors• Governmental regulation• Price of organic food
Strengths
• Using food to support sustainable agriculture and living*
• Strong vision and mission• Human capital
* Distinctive competency
Weaknesses
• Limited resources• Low margin for profitability
Opportunities
• Expansion into other markets
• Growing interest in sustainability• Lack of local competitors
Threats
• Environmental factors• Governmental regulation• Price of organic food
External/Internal Analysis
SWOT Analysis
Internal Positive
Vision Mission
Mission Action Items
“Celebrating food and tradition that unite communities while supporting small-scale farmers and producers.”
Fostering innovative, environmentally sound, socially responsive and economically viable food-related initiatives.”
• Supporting small-scale farmers and producers• Engaging in advocacy and education about food traditions
and organic lifestyles• Preserving food traditions and heritage• Positively impacting society and environment
The Company
Internal Analysis
Financial Analysis
Internal Analysis
2010 2011 Pro forma *Total Revenues 518.215,00$ 575.551,20$ Food and Beverage costs (50%) 234.518,00$ 276.559,20$
Operational Costs (inclduing Staff Salaries) 168.510,00$ 257.668,80$ Total Operational Costs 403.028,00$ 534.228,00$ Founders Salaries -$ 40.053,60$ Net Income 36.243,00$ 38.164,80$
* Projected from January - May 2011 Results
Financial Condition
Expand producer network
AdvantagesDisadvanta
ges
Aligned with social mission
Not cost effective
Less inital risk Less long-term impact
Non-revenue generating
Alternatives
New business venture
Advantages Disadvantages
Revenue-generating
Higher initial cost
Increases financial viability
Inexperience in composting
Increases support of producers
Decision 1
Souk el Tayeb
Expand producer network
New business venture
New venture in other location
New venture in Beirut
Alternatives
Decision Gate
New venture in other location
AdvantagesDisadvanta
ges
Aligned with social mission Higher cost
Expansion of audience
Unfamiliarity in other areas
Higher risk
Alternatives
New venture in Beirut
Advantages Disadvantages
Aligned with social mission
Smaller expansion of
audience
Local contacts
Familiarity with area
Less cost
Decision 2
Souk el Tayeb
Expand producer network
New business venture
New venture in other location
New venture in Beirut
Catering business
Grocery store
Restaraunt expansion
eco-waste management
Alternatives
Decision Gate
Alternative #1
Start a catering business
Alternative #2
Partner with a grocery store
Alternatives
Alternatives
Alternative #3
Expand Tawlet into a full-service restaraunt
Alternative #4
Start an waste management business
with composting
Alternatives
Catering Grocery Store
Restaurant Expansion
Compost
Key Success Factor
Rating Rank Total Rank Total Rank Total Rank Total
Financial Feasability
,300 3 ,900 1* ,300 2 ,600 4 1,20
Suppporting Small Scale Farmers and Producers
,175 4 ,700 5 ,875 4 ,700 5* ,875
Preserving Food Traditions and Heritage
,175 4 ,700 3 ,525 4 ,700 5* ,875
Engaging in advocacy in education about food and organic lifestyles
,175 1* ,175 3 ,525 3 ,525 5* ,875
Positively impacting society and the environment
,175 2 ,350 3 ,525 2 ,350 5* ,875
Total 1,0 2,825 2,750 2,875 4,700
Ranking Scale:1. This alternative does not effectively address this criterion.2. The alternative may contribute to addressing this criterion. 3. The alternative provides an average solution to this criterion.4. The alternative provides an above average solution for this criterion.5. The alternative effectively addresses this criterion.
WEIGHTED Competitive Strength Analysis
Alternatives
• Planting & Farming
• Harvesting
• Food• Fertilizer
Production (Farmers)
Distribution(Farmers Market)
Product Use(Restaurant
s)
Waste Managemen
t(Compost)
Process Life Cycle
Recommendation
Financial Analysis
Internal Analysis
Worst Case Most Likely Case Best Case 2011 5% Growth 15% Growth 30% Growth
Total Revenues 575.551,20$ 604.328,76$ 661.883,88$ 748.216,56$ Food and Beverage costs (50%) 276.559,20$ 290.387,16$ 318.043,08$ 359.526,96$
Operational Costs 257.668,80$ 270.552,24$ 296.319,12$ 334.969,44$ Total Operational Costs 534.228,00$ 560.939,40$ 614.362,20$ 694.496,40$ Founders Salaries 40.053,60$ 42.056,28$ 46.061,64$ 52.069,68$ Net Income 38.164,80$ 40.073,04$ 43.889,52$ 49.614,24$
2012 Projections
ShortTerm • Research
• Green Composting• Price Point Analysis• Locations for Compost Site• Methods of Transportation• Legal Compliance
• Obtain Composting Materials• Marketing
• Restaurants• Farmers in community• Local community
• Open Composting Site
Long Term
• Develop Full Circle Education Program• Develop and Sell At Home Composting Kit• Increase Waste Imputs
Implementation
Implementation
2 weeks 4 weeks
6 weeks 8 weeks
Research Green Composting
Research Price Point Analysis
Research Locations for Compost Site
Research Methods of Transportation
Research Legal Compliance
Obtain Composting Materials
Milestone Review Implementation
Implementation Timeline
Short Term
8 weeks
4 months
8 months
12 months
18 months
Market to Restaurants
Market to Farmers
Market to Community
Open Composting Site
Develop Full Circle Education Program
Develop At Home Kit
Increase waste imputs
Milestone Review Implementation
Implementation Timeline
Medium-Long Term
Risk Level of Risk
Mitigation / Contingency
No interest from targeted customers Low
Seek alternative sources of food waste – grocery stores, schools, households
Inability to meet initial demand Low Enlist farmers’
assistance
No available land for composting Low Enlist farmers’
assistance
Implementation
Contingency Plan