Question

Some of your friends are hoping to open a Thai restaurant near campus. Please use the knowledge you learn from this week to help your friends develop a brief plan on how to test the business feasibility from the four areas: product/service, market/industry, organization, and finance.

Answer 1

Page 1 Components of a feasible Analysis 12 Product I service feasibility 22 Inclustry I target Market feasibility 3) Organisational Prosibility 4) Financial Feasibility (1) Components of product / service feasibility - 2) Product I service desirability So, at first ask some basic questions about the product or service-( Here Thai Restaurant) • Does it make sense? will people be excited about thai Restaurant ? • will it fit in marketplace ? . is it a good time to introduce this restaurant to the market? . Are there any fatal flaws in this idea? • Develop / Administer a concept test. Develop a concept statement about the Thał Restaurant and distribute it to the people and then ask for feedback. ALSO ASK for any suggestions . 100) Procluct I service Demand (also a component of 1 use local data, Internet research library to See the demand of thai Restaurant in your Campus.

Page 2 2) Industry I Target Marchet feasibility Now we need to think about the appeal of the restaurant and target market for the restaurant See if there į also a Thai restaurant Nearby At first the target but market is limited you could increase it after your business Sky -rocket, See el the market is attractive enough for a Tha Restaurant 3) Organisational Feasibility Analysis • Make a Management team and whether their team i r enough or not. (wether they have the expertise to launch a Thai Restaurant) See wether the team understands the market or not. • See whether the friend has sufficient Non-firon- cial resources to launch the proposed business. which includes - * Availability of space for business * Local support * Quality of labour * Close ness to suppliers and Customers etc.

Page-3. uf Financial Feasibility Analysis 1 The first thing we need to do is to calculate the total Cash needed to prepare the restaurant to make itt first sule. • Then we need to create a budget which antice- putes capital purchase and operating expenses needed. • check the financial performance by comparing it with already settled Thai restaurant. (Be a detective ☺ ) check the financial Attractiveness of the proposed Investment - * check to see the growth in sales during the first 4-5 years. * Internally generated funds to finance and sustain growth