Scope of Business
Formula 1 is coming to Australia in March. The event delivers an economic impact of about $1.4 billion every year and attract more than 230000 international tourist annually. It is a major international event and an important part of Australian hospitality industry. The event promotes the states where it is held to the world and drive significant social, cultural and economic benefits. A catering business can undoubtedly make profit through this event if the relationships are established and conducted appropriately. The business can make the visitors experience the Australian cuisine and the locals can also enjoy pleasures of the good food. As the event is so famous there is little if any doubt that it would be successful if conducted appropriately. Profits can be gained by setting up food trucks and supplying fresh foods t places where the tourist are residing. Thus the business has to take advantage of the event and initiate plans for successfully conducting the business (Lu and Chang, 2015).
In order to carry out the business properly certain relationships have to be established and conducted appropriately. These relationships include relationships of the business with suppliers, customers, organizers and government bodies.
In relation to the customers the business would have a chance of making new customers as well as serving the regular customers with more competency and providing them with a wide range of customers to choose from. The formula one event would attract various new tourist to Australia who would be potential and new customers for the business. The customers have to be contacted through a promotion process of the business providing them with the details of the wide range of food made available for them. The customers may also may contract with the business face to face via the food trucks. As soon as sale and showing of interest for the products would start or the customers would require more information a business relationship would be established.
Establishing a relationship with the customers would not be sufficient the relationships also have to be maintained ethically based on trust and respect. Trust and respect are two major components for maintaining any relationships. The customer should be able to develop trust in relation to the business and this development has to be initiated by the business itself. The business must provide the customers with best quality food and treat the customers with hospitality so that they can develop respect and trust towards the business. The customers should be provided with genuine advice about which product would suit them the most and would be beneficial to their interest instead of thinking about profit. A good relationship with the customers would strengthen the customer base of the business and enhance customer satisfaction. Thus the customers would develop a sense of loyalty for the business which would be beneficial in both sort and long run (Norouzi & Nahavandi, 2016).
Supplier are the individuals or organizations who provide services and products to the business. The business need to establish a relationship with wholesale suppliers of raw materials for food and service personals needed to meet the demands of the increased public. A strategic partnership may be established by such suppliers to gain mutual benefits. The strategic partnership can be with both raw materials provider and service personals provider. This kind of partnership would provide the business with best quality raw materials and services. The business can also see this as a step to mitigate any risk which might arise out of losses. A relationship also has to be established with a bank who the business would deal with on day to day basis. The business can also establish a commission based relationships with other vendor who would like to sell other merchandize along with food. The suppliers have to be contacted through invitations to make an offer and tenders. The business can itself also make offers to suppliers for the purchase of raw materials and services. It would be better if these offers and agreements are conducted face to face.
Establishing Relationship with Customers
The goodwill of the business and the suppliers would be a key component in maintaining business relationships. If the goodwill of the suppliers is good than it would be very easy to trust them. The suppliers also would place their trust in the business is they are treated with honesty and respect. The suppliers have to be provided with all necessary information about the business so that even they can make good profits. There are various benefits which arise out of a good relationship with suppliers for a business. A good relationship with the suppliers may help the business to cut down the cost price which would eventual allow the business to lower its selling price and provide more utility to the customers. Good communication with the suppliers may increase the efficiency of the business as the suppliers would understand the needs of the business in a better way and would be able to serve those needs appropriately. In case there is an issue which arises out of the ordering process good communication and relationship will make it easier to resolve the issue. In the long term a good relationship with the suppliers would ensure that operations are enhanced with time and scope for outsourcing certain operations with the suppliers is created (Yoon & Moon, 2016).
The business undoubtedly has to create a positive relationship with the organizers of the event in order to ensure successful implementation of its plans. There would have to be several negotiations conducted with the organizers of the event as without their consent the business plan will not be enforceable. The organizers have to be approached via telephone or email initially and then a meeting has to be planned with them. The meeting would be best for the business if it is conducted face to face and the contract is signed in the meeting after the negotiations are competed. It is important to observe trust and respect in all kinds of relationships and with organizers it’s no different. The organizers can be approached for a strategic partnership providing scope for mutual advertisement. Commission based partnership can also be entered upon with the organizers which may generate extra sales and save money (Collins & Wilhelm-South, 2017).
A good relationship with the organizers would ensure that they provide the business with all necessary scopes and accessories needed for the proper implementation of the plan. A good relationship with them would ensure that the business is benefited in the long run as extra expenditure would be quashed. The organizers may also provide priority to the business operations such as services to the spectators during races.
It is also very important for the business to establish relationships with government bodies and agencies. The business may become the member of such bodies as the membership in most of the cases is voluntary. Regular meeting are held by such bodies to generate research data, enable networking, share information, provide training, seek and source funding and develop aims and objectives. Understand the local council’s legal requirements are also very essential for the successful implementation of the business plan.
Good relationship with such bodies and its officials would ensure that the business has little difficulties in complying with the legal environment. If anything would be missed or ignored by the business the good relationship would make the authorities notify the business about such mistake so that it can be rectified. Any unexpected problem would also be addressed with more efficiency in case support is provided by local authorities (Sykes, 2017).
The key points which has to be included in the contract with the organizers are (McKendrick, 2014)
- The date from which the agreement would be effective
- The time when the operations of the business are to be carried on within the circuit and other areas.
- The specific place the operations are to be carried on.
- The way in which the operations of the business would be conducted in the place.
- The liabilities of both the organizers and the business in case of any unforeseen event
- The level of cooperation which would be provided by the organizers.
- The prince which the organizers will receive against their cooperation and support.
- The penalties applicable in case of delay in payment
- The relationship between the organizers and the business
- The term of confidentiality so that no party leaks out any information about the other
- Any notice which have to be provided to the parties under the agreement and the mode of delivery
- The procedure to be followed in case of any dispute which may arise out of the contract
- The provisions from amending the terms of the contract in specific situations
Conclusions
Thus it can be concluded from the report that if the above discussed business plan is followed than there would be little if any chance that the business would not be successful. All businesses have a level of risk associated with it however the level of risk should be compared to the level of success the business might provide in order to determine that the business should be carried on or not.
References
Collins, N., & Wilhelm-South, M. (2017). Publishing Partnerships: Working with Conferences to Provide Client Solutions.
Lu, C.S. and Chang, P.H., 2015. Choosing a Business Model of Container Terminal Operations. In Handbook of Ocean Container Transport Logistics (pp. 137-160). Springer International Publishing.
McKendrick, E. (2014). Contract law: text, cases, and materials. Oxford University Press (UK).
Norouzi, M., & Nahavandi, B. (2016). THE IMPACT OF COMMITMENT ON CUSTOMERS’SATISFACTION WITH REGARD TO THE MEDIATING ROLE OF EMPLOYEES AND CUSTOMERS’FRIENDLY RELATIONSHIP (CUSTOMERS OF BANK MELLI IN GILAN PROVINCE). IIOAB JOURNAL, 7, 1-6.
Sykes, D. J. (2017). Equity’s roving commission in administrative law: An analysis of the present and potential role of equity in the relationship between local authorities and their service users (Doctoral dissertation, University of Essex).
Yoon, J., & Moon, J. (2016, July). MODERATING EFFECTS OF BUYERS’PURCHASING STRATEGIES ON THE RELATIONSHIP BETWEEN SUPPLIERS’TRANSACTION SPECIFIC INVESTMENTS AND THEIR FIRM PERFORMANCE. In 2016 Global Marketing Conference at Hong Kong (pp. 866-888).
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