Thursday, March 25, 2010
Strategic Plan HotDog Stand Business Plan
I.Background - Hotdogs have become part of the American life and American food system. Hot dogs can either be in a roll with cheese, mayonnaise and mustard or it is eaten alone, it is an acceptable food for the busy and demanding American life. -- This paper is a plan of a little chain of hotdog stands that has a vision of expanding them if the few initial stands prove to be of potential profit in the future. Five stands will be a starting ground for this Entrepreneurial move selling hotdogs in crowded and busy places all over the city. It has the aim to satisfy the hungry stomachs of many individuals each day who do not have the luxury of time to sit back and relax while eating. Hot Doggies on Your Way
Hot Doggies is the planned name of the hot dog chain. It would be a single proprietorship and entrepreneurial business under this paper’s author name. It is however simply referred to as “Hot Doggies” or “the Chain” hereinafter.
II. The Industry and the Hot Doggies
Hot dog stand and hot dog as a food is a profitable source of income in the United States. It even surpassed McDonalds in terms of location to buy.
Some 1,800 hot dog stands serve Chicago and the suburbs, according to Peter Sload, spokesman for Vienna Beef, the sausage maker that supplies about 85 percent of them. That's more than all the McDonald's, Wendy's and Burger King outlets here combined. (Zeldes, 2006, p. 32)
With a promising market and industry for hot dog stands and hot dog meals/food, Hot Doggies is an encouraging take off for an entrepreneur.
III. The External Environment
Competitors will be the hardest hurdle to the success of Hot Doggies. However, as soon as the business can establish its name and strategic locations profits will simply flow and possible expansions and franchising will come their way.
Additionally, the various applicable laws and regulations of the state will also be one thing that would be considered externally as these are very important in determining where to place the stands in order to avoid penalties but at the same time, the sales would not be badly affected.
The eagerness and abilities of the five vendors to be hired would be another big external (as well as internal) factor. Externally, it would be their own respective styles and techniques that would determine the amount of sales that they would make. It would be a combination of their own charisma, friendliness to customers and sales techniques. This is the reason why they are paid on both a fixed rate plus a certain commission upon reaching a quota for their sales.
Warning and Friendly Reminder: Plagiarism is a crime. This essay is here to give you an idea or guide you, not to be copied by you. You can look at the references and Works cited provided by this free academic essay and from that you can create your own. Be a smart student,be honest: look for free academic essays anywhere in the web or the Internet but don’t forget to make your own. There are so many free essays online as guides but please do your own. You can also utilize free plagiarism checkers available online.
IV.The Internal Environment
Since Hot Doggies is just starting and it is owned and managed by the owner (although vendors are required), the total care and control would be up to the owner. This means the policies will be solely at his/her discretion as well as other matters related to the business.
As mentioned, the vendors are another part of the Internal factor. They are partly controlled by the owner of the business and the motivations, rewards and penalty policies of the owner would affect the selling process of each hired vendor. Since it is singularly owned and it is only starting up, the "company's (stands’) personnel objectives, policies, and procedures" (Megginson, 1972, p. 58) which are classified as internal factors will be dealt by the owner of Hot Doggies.
V.Customer Demographics and Customer Profile
Customers range from busy students and young professionals who are always in the run. It does not exclude anyone however who would like to have their own hot doggies when their stomachs feel a little sting of hunger or their cravings for hotdog strikes.
As previously mentioned, busy streets near the schools and offices are the initial target of the stands but proper licenses must be applied first before operations can start. A contract with a certain school can be considered if it would prove advantageous and profitable. The target customers are lower to middle class Americans who are more probable buyers of the products and who can dare to eat anywhere, either sitting, standing or walking.
VI.Objectives and Strategic Goals
The Business aims the following objectives for the first year of operations:
a.Set up the business and gain a general notion as to how successful it can be;
b.Reach targeted level of sales and net income and to be able to proceed to the next decision.
c.If the targeted income and rate of return is acceptable, additional stands will be added and spread the following year together with an addition of franchising rights that may be obtained using the “Hot Doggies” trademark
d.If the targeted level of sales, income and return are not reached, the number of stands remain while another set of strategies would be employed in order to realize more profits with a continuous aim to reach the targeted sales, income and return.
VII.Forecasted Balance Sheet and Income Statements
a.Balance Sheet (1-year of operation)
Simple as the hot dog stand as the business may sound and the investment may not be that big, a careful peek through as to its earnings capability must be done before it would be let out in the market. Forecasting the possible earnings that the five stands of Hot Doggies would not hurt the owner even with the use of only an estimated amounts for the items needed based on the current market.
The following are the forecasted balance sheet of the business for one year of operation together with a tw0-year of operation forecasts for its income statements. The date that the business would start is January 2 of 2009.
a.1st and 2nd years of Forecasted Income Statement
Important Notations:
The raw materials (hot dogs) are estimated to be 20% of the selling price.
Majority of the expense goes to the vendors
There is an estimated general annual increase of 10% both in sales and raw materials prices while a 5% increase in the salaries and commissions of vendors.
The Sales Discounts is comprised of discounts on offers as well as freebies and discounts given to loyal and frequent or bulk buyers.
The targeted Income for the first year is $50,000 to continue and expand the business and plan for the franchising activity. If the forecasts are met, the plan would push through.
The Income is before taxes that the government levies (aside from basic municipal or stand taxes and licenses) to the income. This means that the amount presented will still be greatly reduced by the amount of taxes.
Instructions for this Essay:
The “heart” of a Strategic Plan (or a full blown Business Plan, for that matter) is probably the budget for that plan. While creating a budget for no purpose (no context) is a stale exercise, we also don’t have time to prepare a realistic Strategic Plan, so we will scale down expectations and require but a mock attempt. Please see Joe’s Barbecue (p. 42-45) in the Dickey text for an example.
I want you to create a Strategic Plan. If you can do this for your current employment, that would be a fine context. Or pretend you are an entrepreneur and intend to start a business, so see this as the requirement to prepare a modest “Business Plan.” Make this entrepreneurial endeavor very simple. J Almost a “lemonade stand” type of enterprise. Keep it simple.
With either approach, the purpose of the “plan” is to provide context for the development of the budget and financial statements needed to support the specific plan.
The Plan needs to include at least:
1. nature of industry and product/service
2. analysis of “external” environment
3. analysis of “internal” environment
4. description of customer demographics and competitive advantage
5. indication of plan’s objective(s)
6. inclusion of financial documents
- current Balance Sheet
- estimated Balance Sheet 1 year hence
- estimated Income Statement 1 year hence
- estimated Income Statement 2 years hence
Be sure to indicate the rationale for your financial estimates.
Be careful not to plagiarize; write in your own words, although a few quotations are acceptable Grammar matters, so watch your punctuation, sentence structure, paragraph development, spelling, etc.
There needs to be a title page, and a “Table of Contents” page. So, that’s two pages. There needs to be 4 financial documents, i.e. 2 Balance Sheets and 2 Income Statements. Now we are up to 6 pages. So the remaining 4 pages or so will regard narrative paragraphs about the various subtopics noted in #1 - #5 above.
Hot Doggies is the planned name of the hot dog chain. It would be a single proprietorship and entrepreneurial business under this paper’s author name. It is however simply referred to as “Hot Doggies” or “the Chain” hereinafter.
II. The Industry and the Hot Doggies
Hot dog stand and hot dog as a food is a profitable source of income in the United States. It even surpassed McDonalds in terms of location to buy.
Some 1,800 hot dog stands serve Chicago and the suburbs, according to Peter Sload, spokesman for Vienna Beef, the sausage maker that supplies about 85 percent of them. That's more than all the McDonald's, Wendy's and Burger King outlets here combined. (Zeldes, 2006, p. 32)
With a promising market and industry for hot dog stands and hot dog meals/food, Hot Doggies is an encouraging take off for an entrepreneur.
III. The External Environment
Competitors will be the hardest hurdle to the success of Hot Doggies. However, as soon as the business can establish its name and strategic locations profits will simply flow and possible expansions and franchising will come their way.
Additionally, the various applicable laws and regulations of the state will also be one thing that would be considered externally as these are very important in determining where to place the stands in order to avoid penalties but at the same time, the sales would not be badly affected.
The eagerness and abilities of the five vendors to be hired would be another big external (as well as internal) factor. Externally, it would be their own respective styles and techniques that would determine the amount of sales that they would make. It would be a combination of their own charisma, friendliness to customers and sales techniques. This is the reason why they are paid on both a fixed rate plus a certain commission upon reaching a quota for their sales.
Warning and Friendly Reminder: Plagiarism is a crime. This essay is here to give you an idea or guide you, not to be copied by you. You can look at the references and Works cited provided by this free academic essay and from that you can create your own. Be a smart student,be honest: look for free academic essays anywhere in the web or the Internet but don’t forget to make your own. There are so many free essays online as guides but please do your own. You can also utilize free plagiarism checkers available online.
IV.The Internal Environment
Since Hot Doggies is just starting and it is owned and managed by the owner (although vendors are required), the total care and control would be up to the owner. This means the policies will be solely at his/her discretion as well as other matters related to the business.
As mentioned, the vendors are another part of the Internal factor. They are partly controlled by the owner of the business and the motivations, rewards and penalty policies of the owner would affect the selling process of each hired vendor. Since it is singularly owned and it is only starting up, the "company's (stands’) personnel objectives, policies, and procedures" (Megginson, 1972, p. 58) which are classified as internal factors will be dealt by the owner of Hot Doggies.
V.Customer Demographics and Customer Profile
Customers range from busy students and young professionals who are always in the run. It does not exclude anyone however who would like to have their own hot doggies when their stomachs feel a little sting of hunger or their cravings for hotdog strikes.
As previously mentioned, busy streets near the schools and offices are the initial target of the stands but proper licenses must be applied first before operations can start. A contract with a certain school can be considered if it would prove advantageous and profitable. The target customers are lower to middle class Americans who are more probable buyers of the products and who can dare to eat anywhere, either sitting, standing or walking.
VI.Objectives and Strategic Goals
The Business aims the following objectives for the first year of operations:
a.Set up the business and gain a general notion as to how successful it can be;
b.Reach targeted level of sales and net income and to be able to proceed to the next decision.
c.If the targeted income and rate of return is acceptable, additional stands will be added and spread the following year together with an addition of franchising rights that may be obtained using the “Hot Doggies” trademark
d.If the targeted level of sales, income and return are not reached, the number of stands remain while another set of strategies would be employed in order to realize more profits with a continuous aim to reach the targeted sales, income and return.
VII.Forecasted Balance Sheet and Income Statements
a.Balance Sheet (1-year of operation)
Simple as the hot dog stand as the business may sound and the investment may not be that big, a careful peek through as to its earnings capability must be done before it would be let out in the market. Forecasting the possible earnings that the five stands of Hot Doggies would not hurt the owner even with the use of only an estimated amounts for the items needed based on the current market.
The following are the forecasted balance sheet of the business for one year of operation together with a tw0-year of operation forecasts for its income statements. The date that the business would start is January 2 of 2009.
Hot Doggies
Balance Sheet
December 31, 2009
a.1st and 2nd years of Forecasted Income StatementHot Doggies
Income Statement
For the Years Ended December 31, 2009 and 2010
Important Notations:
The raw materials (hot dogs) are estimated to be 20% of the selling price.
Majority of the expense goes to the vendors
There is an estimated general annual increase of 10% both in sales and raw materials prices while a 5% increase in the salaries and commissions of vendors.
The Sales Discounts is comprised of discounts on offers as well as freebies and discounts given to loyal and frequent or bulk buyers.
The targeted Income for the first year is $50,000 to continue and expand the business and plan for the franchising activity. If the forecasts are met, the plan would push through.
The Income is before taxes that the government levies (aside from basic municipal or stand taxes and licenses) to the income. This means that the amount presented will still be greatly reduced by the amount of taxes.
Instructions for this Essay:
The “heart” of a Strategic Plan (or a full blown Business Plan, for that matter) is probably the budget for that plan. While creating a budget for no purpose (no context) is a stale exercise, we also don’t have time to prepare a realistic Strategic Plan, so we will scale down expectations and require but a mock attempt. Please see Joe’s Barbecue (p. 42-45) in the Dickey text for an example.
I want you to create a Strategic Plan. If you can do this for your current employment, that would be a fine context. Or pretend you are an entrepreneur and intend to start a business, so see this as the requirement to prepare a modest “Business Plan.” Make this entrepreneurial endeavor very simple. J Almost a “lemonade stand” type of enterprise. Keep it simple.
With either approach, the purpose of the “plan” is to provide context for the development of the budget and financial statements needed to support the specific plan.
The Plan needs to include at least:
1. nature of industry and product/service
2. analysis of “external” environment
3. analysis of “internal” environment
4. description of customer demographics and competitive advantage
5. indication of plan’s objective(s)
6. inclusion of financial documents
- current Balance Sheet
- estimated Balance Sheet 1 year hence
- estimated Income Statement 1 year hence
- estimated Income Statement 2 years hence
Be sure to indicate the rationale for your financial estimates.
Be careful not to plagiarize; write in your own words, although a few quotations are acceptable Grammar matters, so watch your punctuation, sentence structure, paragraph development, spelling, etc.
There needs to be a title page, and a “Table of Contents” page. So, that’s two pages. There needs to be 4 financial documents, i.e. 2 Balance Sheets and 2 Income Statements. Now we are up to 6 pages. So the remaining 4 pages or so will regard narrative paragraphs about the various subtopics noted in #1 - #5 above.
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