(Mt) – use only the work provided to complete the homework

Assignment 2: Online and Onsite Competitive Analysis (5%): a) Online research (two competitors) Look at similar business out of state. Answer the following points in less than 100 words each. Competitor 1. 1. Name of the Business: Uber Eats 2. Website: www.ubereats.com : 3. Why do you think this competitor is similar to you? – Uber Eats is similar to my way of 4. 5. 6. 7. business due to the high demand for service delivery. Due to technological advancements, many companies were able to realize the business gap and took into consideration the opportunity. What product or service is similar to yours? – Uber Eats does food delivery across the city. It happens to be in the same line of business with my idea. It has also partnered with Google Maps to ensure the optimization of routes. Is this the most popular product for this business? Why? – Service delivery has emerged to be one of the booming businesses in the market. People have drifted apart from traditional techniques. One was required to appear at a place to acquire a product physically. The new technological advances have made things easier by ordering stuff online. What is the added value of this product? Why? – The service product is now gaining more popularity, especially with people living in the city. Due to congestion in food stores, they prefer ordering online to avoid such long queues. An application is used in this case. Define the target market of your main competitor? Why? – Uber Eats mainly targets people living around cities. It is because Uber Eats primarily bases its focus on large markets. It happens that their large markets are located in the cities. Competitor 2. 1. Name of the Business: Deliveroo 2. Website: www.derilveroo.co.uk 3. Why do you think this competitor is similar to you? – Deliveroo has vital similarities with my idea basing the argument on technological advancements. People have adapted to the new methods of shopping online, and so Deliveroo took this opportunity. Another reason might be due to minimal competition in this kind of business made Deliveroo make strategies on how to survive in this business. 4. What product or service is similar to yours? – Deliveroo is structured in a way that facilitates the delivery of goods to people living in the city. The delivery is facilitated by an application that is downloaded in the Apple Store and also Google Play store. One is required to create an account by filling personal details and the location details. 5. Is this the most popular product for this business? Why? – Service delivery happens to be a massive gap in the business. Due to the emergence of new technology, work has been made easier. People now solve problems using an application, and solutions are a few minutes away. 6. What is the added value of this product? Why? – Since many people have moved to rural areas, service production has gained more popularity. The people in the rural area now use applications to order for food deliveries. It now acts as an added value to the business since many people are now subscribed to these services. 7. Define the target market of your main competitor? Why? – Deliveroo targets people living in both cities and suburbs. However, the target markets change due to any changes made in the strategies. Deliveroo targets both markets to maximize profits b) Onsite Research (two competitors) Go to the 2 closest competitors in your city for your project according to the idea chosen and answer the same points as in a) above. If your project doesn’t’ have any closest competitor in your city, please do part a for another competitor out of state. Competitor 1 1. Name of the Business: Doordash 2. Website: www.doordash.com 3. Why do you think this competitor is similar to you? – Doordash has some significant similarities with my idea since we are in a technological era. People have adapted to the new methods of shopping online, and so Doordash slipped in to take this opportunity. Another reason might be due to minimal competition in Billings Montana, as many people have not embr this kind of business. 4. What product or service is similar to yours? – Doordash does food delivery across the city. It happens to be in the same line of business with my idea. It has also partnered with Google Maps to ensure the optimization of routes. People can now order food via an application. 5. Is this the most popular product for this business? Why? – Service delivery is now becoming new in the business. It is because of the emergence of new technology that makes work easier. No one wants to stress out on solving issues that are a pone application away. 6. What is the added value of this product? Why? – The service product is now gaining more popularity, especially with older people. They have moved to rural areas due to congestion. They continuously use this application to order for deliveries. 7. Define the target market of your main competitor? Why? – The main targets of Doordash happen to be the people leaving in the suburbs. They aim to provide the most value in their delivery. However, they target specific audiences after switching strategies. Competitor 2 1. Name of the Business: Grubhub 2. Website: https://www.grubhub.com/ 3. Why do you think this competitor is similar to you? – Grubhub is similar to my way of business due to the high demand for service delivery over the days. It created a gap where many companies were established. The arena was built due to the advancements in technology. 4. What product or service is similar to yours? – Grubhub is designed in a way that facilitates the delivery of goods, that is, food to people living in the city. The delivery is facilitated by an application that is downloaded, and one creates an account by filling personal details and the location details. 5. Is this the most popular product for this business? Why? – Service delivery has emerged to be one of the booming businesses in the market. It is because many people have shifted to a new way of life. People have drifted apart from traditional techniques. One was required to appear at a place to acquire a product physically. 6. What is the added value of this product? Why? – Due to fast population growth in the suburbs, Grubhub has enjoyed large markets where it supplies its services. Also, the advancement of technology has assisted in this matter. People are now comfortable ordering stuff at the comfort of their houses. 7. Define the target market of your main competitor? Why? – Grubhub mainly targets people living around cities and suburbs. It is because Grubhub goes a step further in delivering goods from houses to significant sites in cities. It is rare for service delivery companies to engage in this type of business. It is associated with high risks. c) Given the feedback from assignment 1 and the feedback from your competitors, please fill in the following Matrix within the space available. Problem Solution Target Market Unoptimization of routes Route optimization by teaming up with Google Maps Premium. Families and individuals leaving in rural areas Added value Few companies have been able to adapt to this kind of system. Product Characteristics (be specific like in the menu, not generic products) • • • User-friendly Tracking of delivery Fast deliveries Pledge: I hereby attest that the interview or research is original, trustworthy and accurate to the best of my abilities, and it was performed by me at the time and place mentioned above. Signature (initials): Name: Assignment 1: Preliminary Idea (5%) In this assignment you will have to describe more in detail your preliminary idea by answering the two parts below. Be creative (not too much to deviate from your business idea chosen) and propose your own problems and solutions based on your particular project. This is where your creativity is needed, which is the basis of success, innovation, and ultimately economic growth. The assignment 1 consists of the following parts I and II: Part I: Concept idea: a) Description of the Problem you are trying to solve in less than 50 words – The problem that is trying to be solved is the optimization of routes. Due to the vast rate of population growth, many people have acquired homes in places around the city. Some of the roads to those places are unoptimized routes. It delays food delivery. b) Description of the solution to solve that problem in less than 50 words – A transparent approach to solve the problem is put. It is teaming up with Google Premium. Teaming up with them will allow us to get such routes optimized to haste food delivery. c) Description of your target market in less than 50 words. The target market is the typical characteristic of customers with similar needs in terms of age, income, education, tastes, nationalities, culture, etc. – Mainly, the idea is targeting the people living in rural areas, more so the older people. It will enable them to order food even from the cities and are guaranteed that the delivery will be made on time. d) Description of your added value (i.e. Why care about this product compared to similar products in less than 50 words – The introduction of the idea is essential and will tend to beat other food delivery companies because of the user-friendly application that our team has set up to order food and track where the delivery is at a particular time. It is a new idea that few food-delivery companies have been able to implement. e) Describe the characteristics of your product in detail in less than 50 words. Be specific like in the menu, not generic products. Avoid giving broad categories like: I will have a “varied” product or I will have a “quality” product. That doesn’t tell a customer much. You have to convey more exactly what customers are going to be paying for (this is not easy). For example. I will provide “grilled cheese with all natural and organic ingredients and grass-fed local meat”. That conveys more information than “delicious healthy grilled cheese”. So, don’t add too many product categories as that may come later as your business succeeds. You want to conquer your “early adopters” first, then, expand to other customers with other products – The business idea will provide a userfriendly application interface. It is linked with the Google maps to allow tracking of the delivery. Also, the total security of your shipment is guaranteed. Once the delivery is made, the application communicates to the offices. It is hard to face problems of loss of goods f) Please summarize each of these 5 points in the space in the following Matrix: Problem Solution Target Market Unoptimization of routes Route optimization by teaming up with Google Maps Premium. Families and individuals leaving in rural areas Added value Few companies have been able to adapt to this kind of system. Product Characteristics (be specific like in the menu, not generic products) • • User-friendly Tracking of delivery • Fast deliveries g) Put a title to your business idea (no more than 5 words), and summarize Business idea description in less than 50 words, which contains roughly what you are offering and why care about this project (see examples in You Be the VC section at the end of chapter 2 of the book). Fast and Quality Deliveries. Fast and quality deliveries bring you the best from the available options. Making us your first option when it comes to food delivery bears excellent advantages. The company offers great discounts when it comes to childbirth. Those living in rural areas are subjects to offers upon the first three deliveries. The subsequent delivery is made free of charge. h) In less than 500 words write a Pitch that convince the reader to invest in this project. Here you can go in depth in explaining your concept statement in a compelling manner so that everyone can understand your concept statement. The concept statement contains a narration of the business idea summarizing all the points in the matrix above, that is: what is the main problem, what is your solution, what is exactly you are going to be offering (your product), why would you care (added value, and to whom are you going to be selling (target market). No titles here, just paragraphs as in the Pitch section of “You Be the VC’ section at the end of each chapter (except chapter 1). Avoid technical terms and put it in layman’s terms so that everyone will understand and will be motivated or even compelled to try your product. – Unlike traditional food delivery companies, Fast and Quality Deliveries comes with different packages and offers, which were not offered before. All the subscribers to the delivery program are entitled to great offers and discounts. It will enable them to save on the cost of delivery. When it comes to promotions, the subscribers will be rewarded based on how often they use the service. It will be ever twice a month. The idea is aimed at bringing a solution to the problem of unoptimized roads leading to slow food delivery. It is vital to push the concept on a sit will have helped the elderly and the majority of people who live in rural areas. (Suhartanto, et.al, 2019) a) According to the 4 essential characteristics of an opportunity mentioned in the book (attractive timely, durable, added value) what score would you give to each of them with 1 being to lowest and 10 being the highest? Justify your answer with evidence if possible. • Do you think this is an attractive opportunity? Score: ___ Justify in in than 50 words. – The product is an attractive opportunity. On a scale of 1-10, I will give the project 9. The reason behind the high score is that due to the better service delivery availed by Fast and Quality Deliveries, many people will tend to make orders and subscribe to the program. • Do you think this is a timely opportunity? Score: ___ Justify in in than 50 words – The opportunity for Fast and Quality Deliveries is timely. I will give it a score of 9. The emergence of the company comes at a time when many families have opted to leave in rural areas. It is due to congestion in urban cities. • Do you think this is a durable opportunity? Score: ___ Justify in in than 50 words – The idea is durable. I will rate it 9. It is because the company aims to provide fast and quality deliveries to its customers as per the company’s name. What is trying to be achieved is the provision of fast and quality deliveries to customers. • Do you think this idea adds value? Score: ___ Justify in in than 50 words – The idea brings an added value to the industry. The score I’d give here is nine also. The company will add value since, due to great discounts, many people will subscribe to the program. Also, due to the fast delivery and optimization of rural roads, shipments will be monitored and safeguarded Part II Pre-feasibility analysis: After the description you will have to assess how feasible (worth pursuing) is your project. In order to do that, you need to rate each item (see items below) in a Likert scale (1. Definitely no, 2. Probably not, 3. Unsure, 4. Likely 5. Definitely yes). The higher the total score the more feasible it is with lowest total score 5, and highest total score 25. Additionally, you need to explain in no more than 50 words, the score of each item: 1. Added value: The value a customer gets above and beyond other alternatives and existing competitors. The higher is the added value, the more unique it is, and the higher the margin of the product. Do you think this business idea provides the added value? Score (1-5) ____ Explanation based on some evidence (less than 50 words): Definitely, yes, the idea brings about added value. The reason behind it is that the concept tends to rise above the available alternatives and competitors in the industry. It is because of the unique nature of how activities are done in the company, for example, the use of a user-friendly interface that enables them to track deliveries (Suhartanto, et.al, 2019). 2. Target Market: The amount of people that needs the product or service is considerable (big target market). Do you think the business idea taps into a large target market? Score (1-5) ____ Explanation based on some evidence (less than 50 words) – The target market of the idea is large; I would rate it 5. The reason is that many people have opted to move out of urban cities due to congestion. The elderly has taken a more significant part in purchasing a property in rural areas. By aiming at them, then we are assured of large markets (Zhang & Chen, 2014). 3. Frequency: The frequency that people buy the product in a year. Do you would the frequency that people buy this product or service is high? Score (1-5) ____ Explanation based on some evidence (less than 50 words): The frequency at which people will be purchasing covers will be high, rated 5. The reason is that there will be better service provision in the company and also the vast coming of new offers and discounts on every delivery made. Also, the services provided will make them shy away from the competitors since the company is way on another level (Correa, et.al, 2019). 4. Competitors: The competitors are those who offer a similar product or service to your target market. Do you think there are only few competitors of your project? Score (1-5) ____ Explanation based on some evidence (less than 50 words): Few competitors are offering similar services to the target market. The reason behind it is that most food delivery companies have not adapted to the new ways of optimizing routes in rural areas. It makes us feel that no company is ready to compete with us in terms of market coverage (Steever, et.al 2019). 5. Other alternatives: Those which offer products or services that satisfy similar needs. Do you think your product or service competes with only a few other alternatives that satisfy the same need? Score (1-5) ____ Explanation based on some evidence (less than 50 words): The service is competing with a few other alternatives of the same need. I would rate it 5. It is because we may be giving similar options. Still, then we tend to focus on customer satisfaction, taking into consideration customer’s needs, financial position, and the economy at the moment (Suhartanto, et.al, 2019). Total score (add 1+2+3+4+5 score, min 5, max 25):____ In order to justify the feasibility of your project, ideally you need to aim high in all of the point above. This is difficult to attain though, because a high score in one underscore the score on the others. For example, a high frequency may come at the expense of less quality or more common features (low added value) or a larger target market may come at the expense of less quality, or a high quality may come at the expense of less target market (less people are willing to pay for the luxury of having some products). Your job is to define how strong is your project in each of these 5 points, so that it is feasible (i.e. It merits further analysis). In order to have a feasible (worth pursuing) project, you need to score 16 or above. If you score is less than 16, you need to re-think your project again or “pivot” by incorporating new ideas, such as a new target market, or changing the features of your product or service in order to add more value. Most people overestimate the success of their project. Be aware that, in this assignment, there is no wrong or write answers, but you need to propose a reasonable preliminary assessment which is going to be validated in later assignments. The most important thing here is not how willing you are to defend yourself against your business idea, but to be able to propose successful idea taking advantage of opportunities in the market. At this point, we can only use common sense, and some general information since our opinions have small value at this point. This is because, in the end, customers and the market have the final saying. You will have the chance to pivot in next assignments as you gathered more information. As for now, I want you to make your best effort to come up with an idea that has the highest score in all the 5 dimensions above. I will read your assignment and then give you the feedback and a preliminary grade. The grade would be a function of: 1. Do you justify each of the points in a way that it makes sense (I.e. it is a logical argument)? 2. Do you rely in data or information other than your intuitions or personal beliefs? 3. Do you score more than 16 in your overall assessment? Mandatory statement of authenticity: Mandatory statement of authenticity: I hereby attest that the interview or research is original, trustworthy and accurate to the best of my abilities. Signature (initials): Name References. Suhartanto, D., Helmi Ali, M., Tan, K. H., Sjahroeddin, F., & Kusdibyo, L. (2019). Loyalty toward online food delivery service: the role of e-service quality and food quality. Journal of foodservice business research, 22(1), 81-97. Zhang, Y., & Chen, X. D. (2014). An optimization model for the vehicle routing problem in multi-product frozen food delivery. Journal of applied research and technology, 12(2), 239-250. Steever, Z., Karwan, M., & Murray, C. (2019). Dynamic courier routing for a food delivery service. Computers & Operations Research, 107, 173-188. Correa, J. C., Garzón, W., Brooker, P., Sakarkar, G., Carranza, S. A., Yunado, L., & Rincón, A. (2019). Evaluation of collaborative consumption of food delivery services through web mining techniques. Journal of Retailing and Consumer Services, 46, 45-50. Script for Assignment 3 This is the script around which you will show a video to prospective customers hopefully with nice pictures and background music (a plus but not necessary). This video will be the litmus test if we are going in the right direction or maybe something needs to be changed. This happens often, so don’t be discouraged if that happens and it will not have a negative effect on your grade as long you take measures to change your business idea accordingly. In this week, you need to email me the script you are going to be basing your video on. This script is basically a description of your problem, solution and an explanation why you think it is important for customers to buy your product or service, along with the price you think it is fair according to your added value (i.e. the more added value, the more you are willing to charge). Here you are going to be pitching your business idea to the prospective customers and you want to be as honest as possible to get their feedback. The bottom line is to know what they really think about your product or service (i.e. product desirability) without making empty promises. In the end they decide based on your product or service, so you want to be as specific as possible (i.e. what products or service you will offer, how they will look, what special features they will have, what quality, texture, etc.). This assignment consists in two parts: Part I 1. Describe 3 problems that your project is going to be addressing. These problems are f by your prospective customers and provide the motivation to buy your product or service. You want this problem to be relevant, not superfluous (i.e. you can live without it because you can meet the need through competitors or other alternatives). Problem 1: Unoptimized route that lead to delayed delivery of food. Problem 2: Delayed food delivery that makes the food delivery service not to be appealing to clients Problem 3: High costs in food delivery that is due to long delivery process. 2. The detailed description of the solution to each of the previous problems. Each solution needs to be concrete and related to features of the product or service. For example, type of service, characteristics and types of items in the menu, etc. Solution to problem 1: The best and transparent approach to deal with this kind of problem is by optimizing the roads. When the roads are optimized, then it means that it will be easier for the deliveries to be made and this means minimal costs will be incurred. The best way to optimize the routes is teaming up with the Google Premium team. It will allow the business to get all routes optimized. Solution to problem 2: The best way to deal with the problem of delayed food delivery is to come up with an application interface. The application is user-friendly and can be used by everyone as it is easy to maneuver. It allows one to make orders online and even track where the delivery is at a particular time. It means that the delivery guys will be monitored and thus delays will be minimal Solution to problem 3: High costs of delivery are incurred when the process of delivery is too long. By the use of the application, then it means it will be so easy to communicate to the organization about any delivery. The customer will be advantaged as all the costs incurred in the long processes with now are null and void as they can easily make orders using their phones. 3. Justification of your added value. This is why people should care about this project instead of buying the product or service somewhere else or in another way. The project has brought about some additional value to the organization. The added value comes in the sense that very few companies have adopted to the kind of system that the organization is carrying its business. Many of the competitors have not been able to come up with such applications to make food deliveries. They avoid making investments to such application interfaces since they are avoiding the risks related to it. However, the organization has set up application to order and track the deliveries. Many organizations have found it hard to implement it. 4. What would be a price you find reasonable to charge for the most popular product? Why? Provide justification. The most popular product can be priced depending with a number of factors. Prices are only determined by the law of supply and demand. Customers need to have a desire to purchase the product and the organization will need to meet their needs by supplying. Where they meet on the supply and demand curves, price is set there. The importance of this is to make sure that no party is oppressed in the process of price determination. Part 2 This is going to be the basis for your YouTube video script. Your job is to write in essay format (no titles, just a narration or script just in the section “You be the VC”) what you are going to be saying in the video in a way that is engaging and fairly represents what you are going to be offering. You need to write a script in the same format than the Pitch in the “You are the VC” sections of the book. It should contain less than 200 words and more than 50 words. Write the essay here which should include the points mentioned above. You can use “You are the VC” section in Chapter 2 as an example of what to put here. The organization is here to help all kinds of people, be it the elderly or the youth. Basically, the problems that are addressed in the project have been researched about and a conclusion reached on how to solve the problems. The main problem happens to be the unoptimization of roads. When this problem is solved, then the rest will be a matter of little effort. The Google Premium team has come in handy in the optimization of the roads. The aim of the project is to bridge the gap between the customers and the organization. By putting down the highlighted measures, then it I easier to reach and satisfy customers needs. The needs are based on the customer’s taste and preference. However, when considering that, the customers should not be oppressed. Price determination should favor both parties for the comfort of the two parties to keep business up and running. Instructions: You need to enter information in light blue cells. Don’t enter information if it is not highlighted in light blue. Cashflow is generated include investments and working capital and it goes only in year 0. The operating expenses go from year 0 through 5. Startup Cash Flow Assumptions Capital Investments (investment) Amount business license liability insurance website and domain contracts and lawyers pos system 100 1000 free 1500 free Total Capital Investment -2600 Operating Expenses (fixed cost annually) wages for phone and online support accounting and legal services advertising signs and promotional materials website maintance 104000 2500 free 1000 5400 Total Operating Expenses (fixed costs) Total Startup Cash (add all previous items) -112900 -115500 Market Assumptions Price (based on the most popular item) Potential market (in this case online consumers at the end of 5th period) Other Alternatives (consumers at the end of 5th period) Target Customers (consumers at the end of 5th period) Number of Direct Competitors (including your company) Frequency of usage per year (e.g. if one person buys product twice a year=2) Target Market (units at the end of year 5) Demand Market Share? Growth target market? 8 276000 193200 82800 5 3 16560 49680 0.06 9% Unit Cost (based on the most popular item) Gross Margin Inflation Rate (use as default 4%) Nominal Cost of Capital (use as default 11%) 3 0.625 0.04 0.11 people who will order delivery weekday customers weekend customers 500 1500 ells. Don’t enter information if it is not highlighted in light blue. Cashflow is generated automaticly on next sheet at the bottom right. Capital Expenses n year 0. The operating expenses go from year 0 through 5. Best guess, data source or rationale? estimate https://ci.billings.mt.us/981/Business-License-Information estimate https://www.boltinsurance.com/solution/montana-business-insurance/ https://www.godaddy.com/garage/how-to-build-a-local-food-delivery-website/ 10 hours estimation https://www.upcounsel.com/small-business-lawyer-cost https://woocommerce.com/products/square/ 5 people to start at 40 hours a wek $10 a hour https://www.patriotsoftware.com/blog/accounting/how-much-should-accounting-cost/ online advertising and on the vehicles used to deliver best guess on how much https://www.webfx.com/website-maintenance-pricing.html https://www.qsrmagazine.com/technology/fighting-share-166-billion-delivery-app-market pay at least $3 to delivary driver average https://www.statista.com/statistics/244983/projected-inflation-rate-in-the-united-states/ – Projected Estimates Money market 11% 22 8 e bottom right. Capital Expenses Probability of certainty Probability of certainty 50% 11000 12000 23000 276000 Price Target market Growth Rate Target 8 Gross Margin 9% 63% 0 0 0 0 -112900 -2600 -115500 1 15499.311 123994.488 -46497.93299 -112900 Cash Flow Conservative Approach Sales(units) Revenue Variable cost Fixed Costs (operating expenses) Capital Expenses (investment and working capital) Cash Flow Conservative Approach NPV Internal rate of Return (IRR) -35403.44501 If this value is positive, the project is better than $336,776.50 the rate of return of the second best alternative (cost of capital) The higher this value the more attractive is the project because the project requires that your second best alternative 47% yields a higher return. Put differently, unless the alternative investment is higher than the IRR, we will have a positive net present value. Break even point (Units) Units sold such that 22580.00 revenues equals all expenses in a yearly basis Potential market(units) Market Share (conservative according to number of competitors) Inflation rate Nominal Cost of Capital 828000 6% 4% 11% 2 30998.622 247988.976 -92995.86599 -112900 3 46497.93299 371983.4639 -139493.799 -112900 4 61997.24399 495977.9519 -185991.732 -112900 5 77496.55499 619972.4399 -232489.665 -112900 42093.10998 119589.665 197086.22 274582.7749 cc Real Cost of Capital 7% Conservative approach Sales in 5th period 49680

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