Question

According to the article (case study), "Business Plan For Room For Dessert,"

1. A proposed business may have excellent prospects, but its business plan may be ineffective in persuading its readers. On a 1 to 10 scale, how do you rate the prospects of RFD, and how do you rate its business plan? Why?

2. What are the primary strengths and weaknesses of the business concept and business model? What are the critical factors that will determine if the business succeeds?

3. Who are the core customers for the business, and why might they value the RFD offering relative to alternatives?

4. How effective are the financial charts and data information? What is the fundamental assumption (stated or unstated) upon which the financial projections are based? Is the assumption validated in some way?

Please answer these 4 questions with detailed explanations. Thank you.

"Business Plan For Room For Dessert," this is the name of case study and you can find it with PDF file on Google

Answer 1

1.The business plan for Room for Dessert (RFD) and evaluate if the proposed venture represents a good investment opportunity.Analysis focuses on the fit between the people and the opportunity only. Successfully building a multi unit restaurant chain demands a team of people with considerable industry experience and execution skills.

The people behind RFD have a deficiency in both. Also the business model lacks process innovation and is therefore easy to copy. The identified market could be attractive to some extent but it is unlikely that it will develop outside a niche.

Many people believe that a business plan is helpful but not necessary. This is true in the sense that business plans are helpful but, in fact, they are vital if you are serious about success in both short and long term. The aim of this paper is to evaluate and critically assess the “Room for dessert” business plan. The remainder of the paper is organized as follows: Section 2 will try to analyze who is the audience for the plan, what are their needs, and how well does the business plan meet those needs.

2.Strength-

RFD properly outlines how there is a good demand for their products in the market. Theirplan outlines how the market of their products grows larger and larger since more consumers are looking for quality products. RFD explains how the location of the business is an area with high traffic of pedestrians and this makes it possible for the business to get and retain a large number of clients. The business plan also outlines their financial projections by explaining how they havea strong cumulative cash flow analysis. This can effectively be used to convince financiers of thestrong revenues that can be generated from the business.

Weaknesses

The weakness of this business plan is that their financial analysis does not adequately explore the relationship between their assets and debts. In addition, it does not explain how the high traffic of people will be attracted to the business itself. Another shortcoming in this plan is that it does not adequately explain how much time and resources are needed to acquire these customers and how easy to retain them. The current competitors of RFD are not named and the strategies of responding to possible competition are also missing.

3.

Customer Segment	Activity	Actionable Tip
Champions	Bought recently, buy often and spend the most!	Reward them. Can be early adopters for new products. Will promote your brand.
Loyal Customers	Spend good money with us often. Responsive to promotions.	Upsell higher value products. Ask for reviews. Engage them.
Potential Loyalist	Recent customers, but spent a good amount and bought more than once.	Offer membership / loyalty program, recommend other products.
Recent Customers	Bought most recently, but not often.	Provide on-boarding support, give them early success, start building relationship.
Promising	Recent shoppers, but haven’t spent much.	Create brand awareness, offer free trials
Customers Needing Attention	Above average recency, frequency and monetary values. May not have bought very recently though.	Make limited time offers, Recommend based on past purchases. Reactivate them.
About To Sleep	Below average recency, frequency and monetary values. Will lose them if not reactivated.	Share valuable resources, recommend popular products / renewals at discount, reconnect with them.
At Risk	Spent big money and purchased often. But long time ago. Need to bring them back!	Send personalized emails to reconnect, offer renewals, provide helpful resources.
Can’t Lose Them	Made biggest purchases, and often. But haven’t returned for a long time.	Win them back via renewals or newer products, don’t lose them to competition, talk to them.
Hibernating	Last purchase was long back, low spenders and low number of orders.	Offer other relevant products and special discounts. Recreate brand value.
Lost	Lowest recency, frequency and monetary scores.	Revive interest with reach out campaign, ignore otherwise.

4.

This plan outlines our company concept, philosophy and forecasted financials. Rutabaga Sweets hopes to find seed money of $300,000 to launch our business in June of this year.

1.1 Objectives

1. Attain sales of $166,000 in the first year.
2. Increase second year sales by 50% and third year by 30%.
3. Expand to two stores by the third year of business.

1.2 Mission

Rutabaga Sweets is a hospitality company dedicated to providing high-quality desserts in a comfortable atmosphere for clients who seek a fun "gourmet" experience outside restaurants. We intend to make enough profit to generate a fair return for our investors and to finance continued growth and development in quality products. We also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work.

1.3 Keys to Success

• Dedication to the finest quality ingredients and "make it happen no matter what" customer service.
• Ongoing employee education and recognition programs.
• Give back to the community.