Understanding Entrepreneurship and Fast Food Business
Question:
Discuss About The Individual Creating Such A Business Opportunity?
Entrepreneurship is a process through which an individual can design, launch and run a new business. The individual creating such a business opportunity is called as an entrepreneur. The term typically focuses on the launching and running a business. Running a business involves lot of risk in an initial stage. For gaining market competency, it is important for a business enterprise to be aware about the booming industry. This will allow the business to grow in a multi-dimensional way. The following proposal reviews the fast-food business future prospect in Australia (Drucker, 2014). It further distributes the sustainable objectives that are important for a business organization in dealing with the issue. An individual can gain sustainable objectives by developing concrete goals. It is important to form an effective alliance by gaining competitive advantage. This will allow the business organization to gain a competitive advantage by understanding the market requirement. The restaurant industry in Australia is doing extremely well. They can only gain a competitive advantage by understanding the market requirements and functioning accordingly (Kirzner, 2015). The business organization needs to enter into the marketing by understanding the growing business prospect. It is widely recommended that the business organization need to deploy effectiveness through an effective framework. It will allow the business to manage the future challenges and gain appropriateness. In a long run, it is important for a business organization to develop effectiveness through different business techniques. It is advantageous for the business in gaining a competitive advantage (Kuratko, 2016).
In the recent time, the Consumer health awareness has transformed the Fast Food Services industry. The overall Industry demand has been affected by augmented awareness about the nutritional content of fast food. People are turning towards the healthy options due to increased awareness. Industry operators have countered by bringing in a range of healthier, premium choices with less fat, sugar and salt. The change in consumer fondness has led to an invasion of new operators contributing higher quality fast-food options. The overall participation in the fast food industry has gone up combining with rising prices as demand for premium products has increased. It is expected that the drive for revenue growth will increase by 3.0% over 2016-17. The Revenue is predicted to increase by an annualised 3.9%. Fast Food Services industry is presently at the mature phase of its life cycle. The forecasted post annualised growth is expected to be 2.3% over the 10 years through 2021-22, while comparing it with an annualised rise in Australian GDP of 2.5%. There is a slight deficit of the wider economy over the 10-year period. There is a continuous demand for the healthy food options; however the overall deficit has been determined by weaker revenue development and strong opposition from external sources. There is a serious competition in the industry from supermarkets, restaurants and convenience stores (IBIS WORLD 2017).
- Burgers
- Pizza
- Chicken-based fast food
- Sandwiches, salads and juices
- Desserts and confectionery
- Other fast food
Factors Affecting the Fast Food Business Industry
The type of Entrepreneurship depends upon many factors like availability of fund, and deriving the capabilities according to the type of venture an individual is making. Independent, Family, Corporate and Franchise are the four type of entrepreneurial venture in today’s business context. In order to make a successful growth, it is necessary for a business organization to develop concrete objectives that will help him in adding sustainable growth and development. In the current context, it is important for a business organization to develop a business venture through an effective procedure. This will allow the organization in managing the business in an effective way. The success of a venture resides on number of factors like human, financial and material resources. These factors accompany in making an effective business organization. . Independent business organization is the one who takes all the decision in the organization pertaining to the business. All the major decisions are taken by the entity (Schaper, Volery, Weber and Gibson, 2014). The corporation is a business organization established to gain effectiveness. It is a form of business operation that states that the business is a separate, legal entity directed by a group of people known as board of directors. A Family business is the one carried out by the people in a family from years. The business is carried forward by the future generation. This allow in gaining sustainable objectives and attaining longevity (Baum, Frese and Baron, 2014). Franchising is a business which provides right to use a firm’s business model and brand for an agreed time-period. It is one of the finest models for the fast food restaurant industry. There are international food-chains that can easily be established through an effective franchising model. The model helps in integrating the function in the most effective way. Majority of fast-food chains are based on the franchising model. This model is effective in gaining market potential and to deliberately gain concrete market objectives. Depending upon the current market opportunity and growth, it is important for the business enterprise to develop an effective entrepreneurial venture in order to manage the business (Bhachu, 2017).
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Business Venture |
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Drawback |
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Independent |
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Corporation |
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Family |
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Franchising |
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In order to start a business organization it is important to manage the operations in case of organizing a business. It is tough for an individual too start a business from scratch. For that purpose it is necessary to collect the resources and to execute the plan accordingly. If an individual wants to establish a new business he has to make sure that he has enough resources. It is important, for managing a business enterprise it is evident to arrange the resources in the most appropriate way (Link, 2017).
Types of Entrepreneurial Venture
The business organization strengths and weakness depend upon the utilization of the different factors. While starting a business from a scratch it, is tough to deploy all the resources in an effective way. People might find difficulty in managing the resources from scratch. They have to invest time on every peculiar object in the organization. This creates a mess for an individual who is planning to invest in the business for the future prospect. It is important for an individual to meet the future contingencies all alone. This will create problem for an individual to proceed with in a better way (Mitra, 2013).
In case of an established business it is easy for an individual to move forward. The resources are available easily leading to easiness in conducting a business. For a business organization it is important to manage the resources in an appropriate way, any scarcity of resources can lead to business failure.
For the restaurant business it is recommended to buy a new business from a scratch. This will help in adding creative idea into the business organization. In this way the business can gain a competitive advantage over other. By developing effective changes into the business, it is easy to gain economies of scale. The purpose of a business organization is to meet the objectives by deriving long term goals. A business organization can only survive, if it has added some competitive advantage to their business. The new venture should manage the business by adding creative idea that stimulates the business process. This will be helpful for a business organization in order to derive goals (Lee, Hallak and Sardeshmukh, 2016).
Hence, it is important for an individual to implement an effective business model tool. This tool will help in growth of the business. Effectiveness in a business can only be derived if the business has as vision. It is recommended to enter through a franchisee. This allows the business organization to grow in a diversified way and to use resources in a better way. The change in consumer fondness has led to an invasion of new operators contributing higher quality fast-food options. The overall participation in the fast food industry has gone up combining with rising prices as demand for premium products has increased. This is creating an overall impact on the business process. In order to manage the business in a better way, it is recommended to manage the resources for the purpose of franchising. This process allows an individual to develop a business enterprise in a well organized way. Depending upon the current market opportunity and growth, it is important for the business enterprise to develop an effective entrepreneurial venture in order to manage the business. This is important for a business to develop the resources in an effective way. The purpose should be to gain a profit in order to remain competitive in the market. The purpose of the business organization is to manage the changes and to be a pioneer. Franchising model helps in integrating the function in the most effective way. Majority of fast-food chains are based on the franchising model. This model is effective in gaining market potential and to deliberately gain concrete market objectives.
Conclusion
To Conclude, It is evident for a business organization to derive the policies keeping in mind the growing necessity. The structure of the business should be focused on growth and development. One can attain the concrete objectives by deriving effectiveness at work. It is important to manage the ongoing challenges and to gain competitiveness. An individual can gain sustainable objectives by developing concrete goals. It is important to form an effective alliance by gaining competitive advantage. This will allow the business organization to gain a competitive advantage by understanding the market requirement. For a business enterprise it is necessary to choose a better model.
References
Acs, Z.J. and Audretsch, D.B., 2005. Entrepreneurship, innovation and technological change. Foundations and Trends® in Entrepreneurship, 1(4), pp.149-195.
Baum, J.R., Frese, M. and Baron, R.A. eds., 2014. The psychology of entrepreneurship. Psychology Press.
Bhachu, P. ed., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks. Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Hagen, B., Denicolai, S. and Zucchella, A., 2014. International entrepreneurship at the crossroads between innovation and internationalization. Journal of International Entrepreneurship, 12(2), pp.111-114.
IBIS WORLD 2017, Fast Food Services in Australia. Online. Availabe at: https://www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/fast-food-services.html Accessed on: 10 September 2017
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Lee, C., Hallak, R. and Sardeshmukh, S.R., 2016. Innovation, entrepreneurship, and restaurant performance: a higher-order structural model. Tourism Management, 53, pp.215-228.
Link, A.N., 2017. Ideation, entrepreneurship, and innovation. Small Business Economics, 48(2), pp.279-285.
Mitra, J., 2013. Entrepreneurship, innovation and regional development: an introduction. Routledge.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small business.
Scott, A.J., 2006. Entrepreneurship, innovation and industrial development: geography and the creative field revisited. Small business economics, 26(1), pp.1-24.
Szirmai, A., Naudé, W. and Goedhuys, M. eds., 2011. Entrepreneurship, innovation, and economic development. Oxford University Press.
Tidd, J. and Bessant, J., 2015. Innovation and entrepreneurship (No. 3). Wiley.
Wu, C.W. and Huarng, K.H., 2015. Global entrepreneurship and innovation in management
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