Category: Analysis

Introduction

Investment requires proper analysis of the business environment to ascertain whether the opportunities are viable for investment (Horowitz 2014). It requires a thorough survey of the market environment (Abrams 2010). Understanding of the market will ensure that the organization makes the appropriate profits that will enhance its survival in the market (Anderson 2009). Such knowledge prevents the risks of starting non-performing businesses. Such shall reduce the chances of failure of the business venture (Evans 2011).

Risk analysis and evaluation is also very necessary in order to ensure that the business withstands the strong waves and tides of the competitive environment (Finch 2013). The investor should be at a position to obtain the required rate of return for a business venture (Lester 2007). It will ensure that there is success of the business opportunity.

In this case, we shall undertake an analysis of various business opportunities to select the most viable option for investment (Johnson 2013). Since the capital to start up this business shall be provided, there are different ventures that can be considered for investment. Additional capital to start up this business can be obtained from bank loans as well as accumulated savings in addition to reinvesting the profits made in the course of business (Peter 2014).

One option can be to invest in selling women and child wear clothes. This shall entail purchasing the clothes and shoes from their manufacturers and retailing them to the consumers (Worre 2013). The business shall take the form of a self selection store for business.  Competition shall be from the well established businesses in the industry. However, the business can overcome this by offering proper customer service.

Alternatively, the capital can be invested in selling second hand items. In such a case, the business shall purchase used items from their owners and then sell them to other consumers. It shall take the form of an online platform to access both the buyers and sellers. Our business shall obtain commissions related to the process of connecting willing buyers to the sellers.

Another venture that can be invested in is to start up a cafeteria where food shall be prepared and sold to the consumers. This entails maintaining proper standards of food preparation that would create differentiation in the product from that offered by competitors. In this case, the target market shall be the students and staff in an institution. Consumers shall be given incentives that would encourage them to be regular customers.

From the above examples of ventures, we shall settle down on the third option of establishing a cafeteria within the Texas State University fraternity. The business shall be called Spring of Life Cafeteria. Further details about the product and the organization are discussed below:

Organization: Spring of Life Cafeteria

Mission: To provide the best and quality food that meets the need of our consumers.

Vision: To conquer the food industry by satisfying the consumer needs within Texas State and beyond.

Aims and Objectives

  1. To ensure that quality food is prepared
  2. To offer competitive prices for the food prepared
  3. To ensure that consumer needs are met promptly

Organizational Structure

This business shall have three departments each with different functions. These are:

  • Finance department- It shall be in charge of all the transactions of the business manning all the revenues and expenditure of the business.
  • Catering Department- It shall be responsible for all the preparations of food in the restaurant.
  • Customer service Department- This shall be responsible for obtaining orders from consumers and serving the consumer needs.

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Market Gaps

The food industry in Texas State University has faced challenges of reliability. Students have also not been able to afford the cost of food. Spring of Life Cafeteria thus offers a cheaper alternative to food provision.

External Factors

Setting up this business requires a licence from the public health department. This will be very instrumental in the establishment of the business. Government taxes should also be paid. In addition, permission should be obtained from the Texas State University management prior to setting up this business.

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