Question

Project Work on Mission and Product-line

1) Briefly describe the mission of your new business. Please briefly suggest a strategic positioning goal in order to compete with your competitors. Since Managerial Accounting is not a management class, your description should be brief and should concisely describe your product or service.

2) Due to time constraints of this class, please keep your product line simple; for example, a restaurant selling noodles and drinks, or a retailer of Persian carpet, or a firm that fixes up properties for resale. One of the requirements of this group project is to estimate as precisely as possible the cost of your products: noodles, items for retail, services etc.

Answer 1

My business is to set up a food delivery service that will serve only meals that are cooked using fresh, healthy and organic products. The service will have its own centralized kitchen and will focus mostly on catering to corporate clients i.e. providing lunch and dinner packets to companies for their employees. The mission of my new business is “to sell wholesome, nutritious and delicious meals, and to consistently provide to our customers impeccable quality and service at all times”. A strategic positioning goal in order to be able to compete with my competitors will be to focus on quality positioning and value positioning. I will make the quality of the meals sold by my organization highly reliable, consistent and uniform. Secondly there will be value positioning and through a marginal premium pricing a psychological effect of value will be created.

The possible costs for my meals are shown in the table below (on a per meal basis):

	(in $)
Food costs	10.00
Direct Labor	3.00
Utilities	1.00
Other overheads	2.00
Total costs	16.00