Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University المملكة العربية

Kingdom of Saudi Arabia

Ministry of Education

Saudi Electronic University

المملكة العربية السعودية

وزارة التعليم

الجامعة السعودية الإلكترونية

College of Administrative and Financial Sciences

Assignment-1

MGT402 – Entrepreneurship and Small Business

Deadline: 23/10/2021 @ 23:59

Course Name: Entrepreneurship and Small Business

Student’s Name:Budoor ALHulaibi

Course Code: – MGT 402

Student’s ID Number:10267330

Semester: I

CRN:13629

Academic Year: 1443/1444 H

For Instructor’s Use only

Instructor’s Name:

Students’ Grade: Marks Obtained/Out of

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

Assignments submitted through email will not be accepted.

Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

Students must mention question number clearly in their answer.

Read carefully Grading Rubric below for specific criteria: 0-5 Marks

Late submission will NOT be accepted.

Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted.

Entrepreneurship and Small Business

ASSIGNMENT -1

Submission Date by students: Before the end of Week- 7th

Place of Submission: Students Grade Centre

Weight: 05 Marks

Learning Outcome:

1. Demonstrate a solid understanding of the potential of entrepreneur in today’s competitive business world. (Lo 1.2)

2. Demonstrate ability to think independently and systematically on developing a viable business model (Lo 1.3 & 3.7).

3. Understand the place of small business in history and explore the strengths and weaknesses of small business. (Lo 1.1).

Assignment Workload:

This assignment is an individual assignment.

Start-up Business Plan

Imagine you started a new business as an entrepreneur in Saudi Arabia.

Please, think and share information on the following items:

1. Owners, capital structure and company profile

a. Your Business Name, Address, E‐Mail

b.  Form of ownership: What is the legal structure? Sole proprietor, Partnership, Corporation…..

C. Investment capital

2. Company Business Description (300 – 400 words)

A. Scope and type of business

What business will you be in? What will you do? What market segment will you choose?

• Business idea: what is your big idea? Is it a product or a service? What makes your idea different?

• Mission Statement

• Company’s short-term and long-term goals and objectives.

• Target market and demographics: Who will your customers be? Where do they live? What is your target market passionate about?

B. Business Philosophy

What is important to you in your business?

• Describe your Industry: Is it a growth industry? What long term or short-term changes do you foresee in the industry? How will your company take advantage of it?

• Describe your most important company strengths and core competencies: What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?

• Risk Assessment: Evaluate the strengths and weaknesses of your business using SWOT.

• Scale of the business and its growth anticipation: what is the growth rate per year for five years? What do your 5-year financials look like? What is your path to profitability?

•Who is your competition and how do you beat them?

• Start-up costs: what costs do you expect to make the business run for the next five years?

3. Products and Services

a. Describe in detail your products or services (Technical specifications).

b. Size of business: how many employees? How many offices and retail facilities?

c. What factors will give you competitive advantages or disadvantages? Examples, include level of quality or unique or proprietary features.

1. Business Owners

a. The business name for our start-up will be: Riyadh’s Tasty Coffee, located in the central business district of Riyadh. Email: [email protected] RiyadhCoffee.com

b. This business will be a partnership between me and my business partner.

c. The amount we have allocated to invest in the business is USD30,000

2. Description of the business

a. Scope of the business:

We will be in the business of making and selling coffee and here is how this business idea is going to work: Similar to a food truck, we want to set-up a coffee truck that will allow clients to cut down on the distances they cover to reach the bigger restaurants to purchase Coffee. Our target market includes people who report for work early in the morning. This is so because, most of these people are extremely busy and they do not have much time to get to a brick and motor coffee shop and potentially wait in a queue. We want to make this process convenient for them. At the beginning, we will only operate in the central business district of Riyadh.

This business idea is both a product and a service. It’s a product in the sense that, we will be making coffee and selling it to consumers. It is a service in the sense that, we will cut down the time Coffee lovers spend in the morning for conveniently locating our Coffee truck near their residential homes. What makes this business idea different is that, there is no other coffee truck in the area and we want to take advantage of this.

Mission Statement: Offering convenience to all Coffee lovers.

Short-term objectives: To establish a trusted Coffee business

Short-term goal: Creating profitable business relationships with clients.

Long-term objective: To utilize technology and offer the best services

Long-term goal: To be the leading Mobile Coffee shop in Riyadh

Target Market: Our target market will be comprised of Business owners working in the central business district in Riyadh, employees around the same area who enjoy coffee and purchase from larger coffee shops. We are targeting these groups of people because, we want to offer them convenience. We believe that a company should not only be in the business to make profits only, it should also offer a solution to a real-life problem. In this case, we want to cut down on the time spent at Coffee shops by offering them tasty high-quality coffee at our mobile coffee shop. Personas of our target markets include the adventurous, friendly and family-oriented individuals who love a good coffee to get their day started.

b. Business Philosophy

Our clients will be very important to this business, at the core of all the activities we will ensure client satisfaction is priority number one. Therefore, clients will be our most important stake holders. This industry is not so big, therefore, there is still room to grow and shows so much potential. We can foresee a lot of changes in both the long-term and short-term, the modern world is fast paced, therefore, everyone wants things done in a really short period of time. The short-term change we foresee is that, people will begin to enjoy purchasing from the mobile food trucks. The long-term change we foresee is that, food trucks (of mobile coffee shops like ours) will be considered as competition to the already established restaurants due to the fact that they will be more convenient and increase in numbers around the city.

We will take advantage of these changes by incorporating technology in our services. For example, we intend on setting up and ecommerce website where people can make Coffee orders and we deliver to them within the business district. As a result, me and my business partner’s experience of managing a food truck will be our most essential firm strengths and core skills. I bring vast experience in this field because we once had a similar family business and I was in-charge of handline client enquiries. Therefore, this company will succeed because of our willingness to do more and the commitment we bring to this business. Additionally, our major competitive strengths will come from the vast knowledge we have in this business.

Risk Assessment: Our strength lies in the vast knowledge about the business, our weakness is that, we currently do not have a lot of money and this will limit our campaign efforts. However, the prime location of our business presents so many opportunities. The threat we will face is that, bigger coffee shops and restaurants may decide extend and purchase trucks to go mobile and directly compete with us.

We do not anticipate so much growth in the first 2 years, therefore, we will mainly focus on building the brand name as well as penetrating the market. However, we expect noticeable yearly growth of our business in the 3rd year going forward. Managing our clients better is our path to profitability.

We will encounter stiff competition from well-known coffee shops, but the fact that we will be mobile offers us an advantage over the competitors. On the other hand, we will have to deal with a lot of start-up costs such us; purchasing one (1) truck, purchasing Coffee-making equipment as well as labour costs for the driver and the person in the kitchen to prepare the coffee. The biggest ongoing costs will be; fuel for the truck and maintenance of the truck. However, we will still allocate funds for the well-being of the truck from part of the profits we will be obtaining from the business.

3. Products and Services

a. Our product is Coffee and our service is delivering coffee to meet the client orders. Here is how this will work: At first, we will have a Facebook page and a mobile number which clients can use to get in touch with us and make orders. Within five years, we would like to create and ecommerce website that will enable clients to pay online and have Coffee delivered to their door step.

b. Our business will be very small, only 4 people will be part of Riyadh’s Tasty Coffee. 2 people to manage the business (me and my business partner) and the other 2 will be employees, the driver and the person to assist with Coffee-making. No offices will be required. However, we will be paying for packing space.

c. Our competitive edge will be that we will be mobile, personable, and provide high-quality coffee. Furthermore, our unique selling points overtime will be the ecommerce like website and prime location in the business district.

Reference list

– Business Philosophy for Amazon Sellers. (2021). ManageByStats. https://managebystats.com/business-philosophy-amazon-sellers

Corporate Finance Institute. (2020, May 12). Products and Services. https://corporatefinanceinstitute.com/resources/knowledge/other/products-and-services/#:%7E:text=What%20are%20Products%20and%20Services,of%20one%20or%20more%20individuals.&text=In%20most%20cases%20services%20are,products%20are%20not%20always%20tangible.

Everything You Need to Know About Business Description. (2021). UpCounsel. https://www.upcounsel.com/business-description#:%7E:text=The%20business%20description%20is%20meant,extensive%20details%20outlining%20the%20business.&text=Names%20of%20the%20people%20who,and%20any%20senior%2Dlevel%20employees

Scope. (2021, August 6). Investopedia. https://www.investopedia.com/terms/s/scope.asp#:%7E:text=Scope%20outlines%20the%20time%20and,focuses%20on%20the%20end%20result.