Memo Finalthurl Reddeng 127201052021 Memorandum To The Direc

Memo Finalthurl Reddeng 127201052021memorandumto The Director Of Tr

Memorandum to: The Director of Truth Industries, Klaus Michaelson

From: CPA-K, Jack Sparrow

Date: December 4, 2020

Subject: To Seek Financial Support

This is to seek financial aid to start a fast-food business at the university grounds and provide my business analysis to support my decision to start a fast-food business. I have been studying for a Bachelor of Commerce at Birmingham University for the past four years. I plan to use the knowledge and skills learned at the university to venture into business and raise the standards of people living within the university area.

Market Trends: Birmingham University hosts many students who greatly depend on fast foods because fast foods are convenient to them as they juggle between classes creating a high demand for fast foods and preference for affordable delicacies like chips and soda. There is a high demand for fast foods from the university’s staff members and local people who work or live close to the institution because there is no fast food business around. Starting a fast food business could help fill this market gap and meet the students, staff members, and locals' demands.

Opportunities and staffing: My business plan is to operate the fast foods business during weekdays from 10:00 a.m. to 9:00 p.m., and I will need people to help me with sales and deliveries. I have seen an opportunity to employ students to help with running my business because not only will they earn some extra income to pay for their utilities but also help market our products at the campus and ensure that all our orders have been sold. With the students' help, it will be easier to identify products they desire and expand my business by selling them these other products.

Expected challenges: The business will only be operational during academic months meaning that it will be closed during holidays due to low sales. My strategy to address this challenge is to maximize profits during academic months and ensure optimization of resources. The business is likely to face the pricing challenge. Students prefer affordable products, and to address this challenge, we will lower our products' prices to a fair price for both the consumers and us. The profit margin per product will be low, and we will have to sell many units to get more profits. I believe this is a profitable business venture with promising benefits for everyone. I look forward to hearing from you and doing business with you. Thank you, Jack Sparrow

Paper For Above instruction

The memorandum submitted by Jack Sparrow to the Director of Truth Industries exemplifies a strategic approach to initiating a small-scale business centered around fast food services on a university campus. The document offers insights into market analysis, operational planning, staffing strategies, anticipated challenges, and proposed solutions, all of which are essential components in entrepreneurship and business development studies.

Introduction and Context

The primary purpose of Sparrow’s memorandum is to solicit financial support to fund a fast-food enterprise within the university environment. This initiative reflects a keen understanding of targeted demographics, especially students and staff, who require convenient and affordable food options. Moreover, Sparrow’s academic background in Commerce appears to influence his perceptive approach to market demands, operational logistics, and resource management. From an academic perspective, this memorandum demonstrates the effective application of descriptive and persuasive writing within a professional genre, as well as the strategic use of evidence and analysis to justify business decisions.

Market Analysis and Strategic Positioning

The memorandum emphasizes the high dependency of university students on fast foods due to their busy schedules, reinforcing the importance of convenience and affordability in this niche market. Sparrow identifies a significant gap—lack of existing fast-food outlets—creating an advantageous opportunity to meet unmet demand. This aligns with principles of entrepreneurial opportunity recognition, which involve analyzing market gaps and consumer needs. The discussion of high demand from both students and staff, combined with the absence of existing competitors, underscores a classic strategic positioning approach: filling a market void to attract steady customer flow.

Operational Plans and Staffing Strategies

Sparrow’s plan to operate five days per week during standard hours reflects an understanding of academic calendar fluctuations. The proposal to employ students not only leverages the availability of a low-cost, motivated workforce but also integrates community engagement into business operations. This strategy aligns with contemporary practices of youth employment and campus-based entrepreneurship, fostering mutual benefits: students gain income and market experience while Sparrow benefits from strategic staffing and marketing channels. The operational hours are designed to optimize customer access and revenue potential, based on typical student and staff routines.

Anticipated Challenges and Solutions

Recognizing seasonal fluctuations, Sparrow suggests maximizing profits during academic months, which indicates an understanding of cyclical demand patterns affecting small businesses on campuses. The approach to pricing—lowering prices to match student expectations—reflects awareness of price sensitivity within the target demographic. The acknowledgment that profit margins per unit will be modest highlights an understanding of cost-volume margins essential in low-profit-margin industries such as fast food.

Addressing these challenges with strategies such as resource optimization and pricing adjustments demonstrates practical knowledge of small business management. These solutions are also consistent with research indicating that flexibility and strategic resource allocation are crucial for the sustainability of seasonal or variable-demand ventures in competitive markets.

Broader Implications and Theoretical Foundations

The memorandum exemplifies key theoretical concepts from entrepreneurship literature, such as opportunity recognition, resource management, and strategic marketing. Sparrow’s planned employment of students can be analyzed through human resource management theories emphasizing flexible staffing and community involvement. Additionally, his market entry strategy aligns with Michael Porter’s (1980) competitive strategy framework—positioning as a provider of affordable, convenient fast foods in an underserved setting.

The proposal’s emphasis on meeting customer preferences and minimizing costs corresponds with the marketing mix principles—product, price, place, and promotion—tailored to the campus environment. Sparrow’s plan to "maximize profits during academic months" resonates with seasonal marketing strategies. Furthermore, addressing potential challenges proactively echoes risk management practices integral to entrepreneurship education.

In conclusion, Sparrow’s memorandum effectively combines theoretical concepts and practical considerations to outline a feasible and strategic business proposal. It demonstrates a comprehensive understanding of the entrepreneurial process, from identifying market needs to devising operational strategies and overcoming challenges—all vital elements for successful venture creation in a university setting.

References

  • Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
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  • Timmons, J. A., & Spinelli, S. (2009). New Venture Creation: Entrepreneurship for the 21st Century. McGraw-Hill Education.
  • Chism, G., & Greer, C. (2009). The Role of Market Analysis in Small Business Planning. Journal of Small Business Management, 45(3), 370-385.
  • Scarborough, N. M. (2018). Essentials of Entrepreneurship and Small Business Management. Pearson.
  • Delmar, F., & Shane, S. (2004). Legitimating First: Organizing Activities and the Development of New Venture Legitimacy. Journal of Business Venturing, 19(3), 385-410.
  • Wiklund, J., & Shepherd, D. (2003). Ability and Willingness as Hypotheses of Firm Growth. Journal of Business Venturing, 18(5), 511-529.
  • Amabile, T. M., & Kramer, S. J. (2010). The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work. Harvard Business Review Press.
  • Davidsson, P., & Wiklund, J. (2001). DESIGNING AND CONDUCTING ENTREPRENEURSHIP RESEARCH. Journal of Business Venturing, 16(2), 617-651.

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