Feasibility Analysis

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Feasibility Analysis

Feasibility analysis is a technique used to verify the viability of a business idea. It results into enhancement of the probability of success by outlining the actions that may turn a venture into an implementation. Green Addict may be a very good business venture but this cannot be judged before analysing the business idea, product feasibility, market feasibility and financial feasibility. Every aspect of the plan are put into thorough focus including the product, promotion, place, pricing and other strategic requirements. This paper includes critical and impartial look of the Good Addict venture through feasibility analysis study.

Product/ Service Feasibility Analysis

Product/ service feasibility analysis involves an assessment of the general appeal of the product or service that is proposed. It is necessary to ensure that a product offered actually satisfies the customer’s wants and that it serves as what the customers want. Product/ service desirability as well as product/ service demand. Green Addict services make a lot of sense and are very reasonable. Currently there have been a number of diseases and disorders that can be attributed to the food people eat. Most would want to maintain a healthy body and this does not come easily (“Report Linker” Web). Many restaurants do not pay attention to the need for organic food thus limiting options for retailers of choosing green organic food while relaxing in an environmentally friendly place. A number of people would definitely desire to enjoy life longevity and minimize their medical expenses. Green Addict offers exactly what the customers want. Their product and services are unique and appealing to a large number of people who are health conscious. It is apparent that the consumers will get excited when they are served organic food in a cool and environment friendly restaurant (Nusra Web).

Green Addict takes advantage of an environmental trend of global warming and the publicity of environmental issues. Most people are aware of the dangers of genetically modified food and the carbon production. It is apparent that even small children are aware of the going green concern because of media publicity (“University of Minnesota” Web). Green Addict idea of using recycled materials is vital in the eye of the public who are already trying in their own level to reduce carbon emission. Green Addict therefore feels the environmental gap that is currently experienced in the market place. The introduction of services by Green Addict is timely because it comes at a time when almost everyone around the world is worried about global warming.

Green Addict will be offering services that many consumers would want to buy because of the consciousness of saving environment and staying healthy. Everyone asked about the importance of organic food will definitely give a positive response. Offering organic meals and a completely healthy environmentally friendly experience will therefore lead to a competitive edge in the market thus increasing the chances of the business idea to be successful. Customers that are health and environmental conservation conscious will even be willing to pay higher because of their understanding of the quality of services offered (Nusra Web).

The product design and services offered at Green Addict may have a challenge of obtaining raw material as well as other organic supplies because they are very limited and extremely expensive. Offering organic foodstuffs is very costly and the customers may not be willing to pay the higher cost of services. It is also likely that Green Addict may incorporate a few ingredients, which are not organic such as cheaper cooking oil that may contain food additive and chemicals that may turn away the consumers. Maintaining a purely green and organic product may therefore not easy to maintain unless the customers targeted are willing and able to pay for the higher costs associated with the product and services.

Industry/ Target Market Feasibility Analysis

It is crucial to assess the overall appeal of the industry as well as the target market for the Green Addict. Industry/ Target Market feasibility analysis includes industry and target market attractiveness. The new venture Green Addict targets individuals of middle and high income, college educated residents, and family oriented zones because these communities are generally more interested in the benefits of eating natural and organic foods. For consumers who believe that there are not enough places to eat in Miami, Green Addict would satisfy and cater to their recycled, go green and organic lifestyle. The restaurant and food services industry is expected to grow extensively by 2014 and cafes and restaurants represents almost over 50% of the overall industry the organic food demand is going very high because of the increasing global population as well as the general migration from rural to urban that changes the lifestyle trend (“University of Minnesota” Web).

It is undeniable that the eating habits are changing particularly amongst the middle class and the rich families as well as college students because of their healthy living awareness. The increased number of organic food campaigns plays an integral role in the great performance of organic food industry. Most people currently work in the offices and do not have time to prepare and eat organic food as well as inadequate time to relax in their homes. Green Addict operates in an industry with many prospects because the college students as well as the rich and the middle class families will always want to have healthy food and relax in an environmentally friendly organization (Nusra Web).

Change in consumer preference positively affects the organic food industry. Most consumers prefer serving a healthy menu, which includes eating fresh organic, nutritious and low calorie food because of the healthiness, and the environmental friendliness linked with such kind of preference. The organic food restaurant industry is a rapidly growing industry due to the rising health concerns as well as increased obesity awareness as well as other related diseases. Most restaurant menus are filled with organic foods and drinks because of the readily available market. Consumers in the high-income bracket are shifting their preferences to organic food and other related products that are served in an environmental friendly experience and that is exactly what the Green Addict offers (Nusra Web). Although the industry is associated with expensive products, a large number of rich and middle class populations cannot ignore the health benefits associated with the products. The target market, who are the middle class and the rich believe that the health benefits linked with organic foods and related experiences deserve the higher prices.

It is therefore obvious that the organic food restaurant industry is still young and is rapidly growing thus providing numerous opportunities for the Green Addict. Currently, most people are beginning to be health conscious and are therefore willing to buy healthy food while enjoying similar experience. The industry is also early in the lifecycle due to the latest needs and campaigns regarding healthy living. However, the industry is fragmented because only the middle and the rich class are only consumers capable of buying the costly products.

The health conscious and environmentally conservative people believe that organic food products and green experience is a “must have” and therefore should not be avoided as much as possible. This segment of consumers is more concerned with their lives and environment than the price of the product (“University of Minnesota” Web). They think that they are no alternative for healthy living and are ready to give it all just to remain healthy. Presently, the industry is not crowded because of the higher costs and low operating margins involved.

Organizational Feasibility Analysis

The need for sufficient management expertise, business competence and resources are very crucial for the better performance of a business venture. In organizational feasibility analysis, management prowess and resource sufficiency is very important. The Green Addict will offer the necessity of pleasant living including fresh breath and organic food in a green self-sufficient environment thus making it differentiated from many other restaurants in Miami. Green Addict will really differentiate itself from her competitors by providing a completely healthy, environmental friendly experience that is unique in the industry. This will be an important aspect of the organization as far as increasing her market share is concerned because it will appeal to the untapped but willing and able to buy market (“University of Minnesota” Web).

Additionally, Green Addict will operate as a chain of restaurants thus leading to wider market coverage. It will operate in different geographical places hence creating place utility to various potential consumers in different positions. Moreover, Green Addict will focus on satisfying the customer’s wants such as offering a more intimate environment as well as simplifying the act of healthy eating thus satisfying the immediate needs of the consumers (“Report Linker” Web). The chain of restaurants will not let their consumers to take home foodstuffs as their competitors such as Whole Foods and Fresh Market does, instead they will make their own organic food that will be eaten right from the environmental friendly experience in the restaurant. Ambience remains integral to the Green Addict unlike some of her fast food competitors such as Evos and Jamba that do not pay attention to healthy eating and the environment like experience.

Management of Green Addict will serve her purpose appropriately because the team carries what it takes to do its intended business venture. The chain of restaurants’ management comprises of the cofounders who have vast experience in various special fields. The cofounders include Amy Femandez who is a yoga, Pilates and eating healthy addict who greatly understands the target market and therefore will enhance marketing and promotions. The other cofounder is Nathalie Baez who is expected to induce the experiences he gained from working in a restaurant for two conservative summer as well as mayen Vergara who has served in a non-profit organization that provided crucial management techniques and skills. Finally, there is Daniela Buttaci who is a nutritionist from University of Miami hence providing a great knowledge in providing the best organic nutrition (“Report Linker” Web).

Green Addict will operate in an environmental friendly place that conforms to its nature of business. However, there will be few suppliers of organic food to the organization because most suppliers supply food for home consumption and at a higher price, which may not earn much profit for the business. The industry is still growing and the fast food industry seems to enjoy a higher percentage of suppliers compared to the organic food industry. It may therefore force the Green Addict to have their own garden and plant some organic food such as vegetables and fruit. Nevertheless, this may take place after long run (“University of Minnesota” Web).

Financial Feasibility Analysis

Restaurant business has really been thriving in Miami with some businesses getting annual revenue of $2,000,000. By analysing the purchase and a set of Restaurant start up and Feasibility spread sheets for various restaurants serving dinner and lunch, the total weekly sales may be $14, 380 and maintain a steady rise in percentage of 5%. When weekly sales are multiplied by 52 weeks, the likely annual revenue will be around $1, 000, 000 during the peak sales in the first 5-7 years. This forecast incorporates both the peak and low season. Green Addict is planning to maintain her customers through their distinctive quality services and products. The loyal customers will then help in marketing the restaurant hence resulting into recurring and increasing source of revenue (Lee Web). The revenues generated will be sufficient to cater for expenses and finance other internal projects that contribute in growth sustainment.

When the Good Addict venture utilizes he four Ps strategically, then it is definite that it will be successful. Good Addict’s products and services are unique and are highly demanded. Good Addict should also utilize the social media and print media as well as leaflets promotions to boost their revenues. Social media is currently the most popular media especially Facebook and therefore its utilization may be very useful in targeting the college students who forms a bigger percentage of Facebook users. Moreover, the restaurant will provide services and products at their various locations due to the environmental friendly environment that are associated with it.

Generally, the Green Addict is a viable venture because of the current trend of growth and expansion of the organic food restaurant industry. The market is really growing and many consumers are ready to pay higher price in exchange of healthy eating. The management prowess is superb and is capable of enhancing the efficiency and productivity of Green Addict. The restaurant will adopt a competitive positioning by charging higher price due to the quality, exclusivity as well as superior experience (Lee Web). The customers will most likely accept to pay a price premium because of the value they have for the organic food and the environment friendly experience. The venture should therefore be undertaken because it is not likely to fail and will continuously grow due to its uniqueness.

Works Cited

“Report Linker.” Restaurant and Food Services Industry: Market Research Reports, Statistics and Analysis. 2013. Web. 2 Dec. 2013.< http://www.reportlinker.com/ci02054/Restaurant-and-Food-Services.html>.

“University of Minnesota.” The Business of Local Food Production. 2013. Web. 2 Dec. 2013. <http://www1.extension.umn.edu/rsdp/community-and-local-food/introduction/business-of-local-food-production/>.

Lee, Denise. The Price is Complicated. QSR Magazine November 2010. Web. 2 Dec. 2013. <http://www.qsrmagazine.com/denise-lee-yohn/price-complicated>.

Nusra. Restaurants go organic. Restaurant India 28 Nov. 2013. Web. 2 Nov. 2013. <http://www.restaurantindia.in/article/f-and-b-format/menu-trends/Restaurants-go-organic-87/>.