The research report which has chosen by me here is demonstrating about setting up of business plan in an underdeveloped country. The business and country that is selected to be established is a multi cuisine restaurant in Mongolia. Mongolia is sheltered in between China and Russia. It covers 1,565,000 sq km. area under which 60 percent of total population is resides in the Ulaanbaatar. In addition to this, 95,000 and 74,000 inhabitants live in two main urban centers, such as Erdenet and Darkhan.Moreover, now day’s tourists from diverse places are more attracted towards visiting Mongolia, due to presence of Forests Mountains, dissimilar landscapes ranging from the huge steppes and the country’s most popular Gobi desert. These all striking factors of the place have forced me to make research on the driving dynamics, which is creating desires in the other nation’s people to visit Mongolia.
The research that is undertaken here is mainly focusing on development of new venture in the Ulaanbaatar. The making of business plan for introducing new venture, helps in building counterbalance of overall cost. With the help of proper and effective plan, top management of the organization could able to decide about progress of the business and developing several strategies that would be valuable in conducting activities. Moreover, the plan is not only developed by executives of business, rather management takes important advice and suggestions from various professionals, accountants, lawyers and consultants (Hamilton, 2004).
Thus, while conducting research on the views provided by these experts on new business development, excellent knowledge has gained by me about strategies or procedure to start an enterprise. Furthermore, it is also learned by me that how appropriate budget is prepared and various tasks are divided at the time of planning phase. This advance plus valuable knowledge will definitely help me in future, as through learning from this research I would be proficient enough to give advice to various enterprises as a consultant in developing their business plan.
The research methods chosen here is both primary and secondary approach. These methods have proven valuable support to me in gathering data’s regarding expectations of tourists who visited the place in relation to concept of restaurant. Moreover, I also came to know about economical and industrial condition of the nation, in the context of developing a bistro. In the primary method, a well structured interview was conducted through previously set bunch of questions. This questionnaire was sent to 1000 people who visited the place, for extracting their views regarding food experience as well as service quality of the country’s other hotels. Furthermore, they are asked to provide their insights on how to improve the services. This was helped me out in understanding perceptions of clients along with their likes and dislike.
Literature and Sources
Various secondary source and literatures was analyzed by me while conducting this research. The sources was helped me in determining feasibility of country’s economy, industrial conditions and various other information regarding development of new business. As already mentioned above the literatures selected to be viewed in this research is media sources, trade and industry association, labor unions and governmental agencies.
Firstly, through evaluating records of governmental agencies, it was known by me that Mongolian economy is not only a nation with hope; rather it is a country with incredible economical trail records. It has average GDP growth of 7 percent since the year 2002, according to IMF report of 2007 and latest official data reveals the growth of 2006 is 7.5 percent. This indicates good sign for any immature economy. The inflation rate in Mongolia is very low, which is recorded in the beginning of 2007 as -0.1 percent (Rugg and Petre, 2006). It is also expected by the Bank of Mongolia that this rate would be reached at 4.2 percent in the potential years. The nation’s economy is weighed down by huge level of investment by FDI, lofty education standards, availability of incentives and schemes for entrepreneurialism as well as open and progressive government. Moreover, on the basis of World fact-book of 2006, it is determined that unemployment issues of this place are low i.e. in 2005 measured as 3.3 percent.
Secondly, from media sources it was analyzed by me that since 1997 the Mongolia has been an associate of World Trade Organization. Through this, it has opened cross country business with across 78 different nations around the whole world. Moreover, since 1999, it has also a member of World Bank Group’s “Multilateral Investment Guarantee Agency”. In addition to this, the country has an investment agreement of Mutual Protection with approx thirty one countries along with exclusion on Double Taxation conformity with 19 nations. This was acknowledged by me in gathering information from media sources that there are three main industries operating in Mongolia, such as:
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Service industry – This particular sector is growing rapidly and contributes by 50.4 percent in the country’s GDP
Mining industry – The country has wide-ranging minerals deposits. Moreover, it is determined from the records of media that major mining production is made up of coal, tungsten, tin, gold, molybdenum and copper. The Mongolia high GDP growth is a consequence of its new gold production and soaring prices of copper. Moreover, this sector adds by 23 percent in the GDP (Rugg and Petre, 2006).
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Science and Technology – Due to democratic revolution taken place in nation in the 1990’s that leads to enhancement in its technological industry. From that period several new technologic organization have been established their operations here.
The overall analysis from various literatures was significant in my research, as they all have provided deep insights about business practice along with economical feasibility of the country. Through these literatures it was analyzed by me that service industry is growing at this place and gaining benefits of FDI as well as tourists attraction. With the help of above sources, various necessary requirements of the service sector and government expectations were determined, which was proven helpful in developing effective business plan (Stewart and et.al., n.d).
By undertaking this research, wide ranging and comprehensive knowledge has been gained. The major knowledge that has been derived relates to the various costs and expenditures associated with opening up of a new restaurant in a country which is completely diverse culturally. There are several pre-requisites attached to starting up a new restaurant business. A range of staff is required i.e. head chef, chefs, assistant cooks, stewards, bar attendants, counter staff and manager to carry out the restaurant’s operations smoothly. The bare minimum area and the floor space required for proper placement of amenities in the eatery has also been identified with help of this report (Nykiel, 2007).
In addition to this the division of floor space into floor needed for kitchen, administrative and other facility areas has also been detailed in the report which provides an exhaustive outline. Apart from this an extensive budget plan has been furnished in this report. This budget entails cost of items such as stationery, menus, land & building, office supplies, staff uniforms, various licensing requirements, advertisements, computer hardware and software installation and several other things.
A detailed budget has facilitated in grasping the little nuances of opening a restaurant which if not paid attention to can result in breakdown or stoppage of operations. A budget is among the most vital thing in a business and it is important to get it right the first time itself. Without these specifications a business cannot reap the results it is expected to. The adequate total start up expenditure and the total assets ratio has also been familiarized with (Stewart and et.al., n.d).
In addition to this, acquaintance has also been acquired in respect of how a feasibility analysis is carried out to assess the viability and practicality of opening up a restaurant or a new business. The various types of research methodologies used and sources of data collection have been comprehended through this study. With help of this, it has been learnt that what all aspects are relevant and irrelevant in conducting a research. The methods of evaluating attractiveness of an economy, industry and place have also been understood with help of this research. All these learning points are very critical to understand for opening up a new business (Carr, 2011).
Also Read: Importance of Research Methods
In whole MBA (Master of Business Administration) program we learn about various strategies and procedures for the management of business. At the time of study, several books and case studies are discussed, which provides knowledge regarding basic functions of management. Through understanding these, one can become able to organize important tasks of conducting a trade. The training is imparted by experts for development of procedures and strategies in relation to product and service development as well as their promotion into the market. The main aim of complete MBA program is to guide student with the function of planning, organizing, directing, controlling and evaluation (Mertens, n.d).
Moreover, I had also learned about various research methods in my course. These methods were guided me about how research can be done in gathering information’s from population regarding proposed actions of an employer. Furthermore, how data could be analyzed in calculating outcomes of the research was also learnt by me. Next is planning, in the whole program we study about making pre planning of various activities. Various books on management were read that has provided knowledge regarding how to make an appropriate and valuable plan for entire business. The training has also given for building of a business plan of new venture establishment. In this plan knowledge is provided regarding time management of entire work, budget preparation and breaking up of complete process into various short time achievable targets. These targets are designed to measure effectiveness of prepared plan (Carr, 2011).
Critical Thinking and Ideas
In carrying out this research, analysis, evaluation of several evidences and proposing conclusions, the most important discovery has been that it is very significant to identify the critical success/failure factors for commercial success of a restaurant. These factors need to be given thorough consideration because a restaurant operates in a very intricate environment. It has been identified that this area of business is quite sensitive and brings with it several complexities. It has been observed that the failure rate is the highest in this sector as compared to other start up businesses. It is thus very critical for an entrepreneur to effectively understand the key success and failure factors of his business. These critical factors are making strategic choices, determining competitive factors, proper marketing and recognizing resources & capabilities (Neumann and Pallas, 2010).
Any business plan including the budget, however effective will not turn out to be fruitful if the entrepreneur has not carried out an analysis of factors that can contribute towards its success and failure. An in depth understanding of these aspects assist an entrepreneur to properly chart out its course of direction and place his building blocks carefully. These factors are critically vital for achieving the objectives and mission of the organization. If an entrepreneur doesn’t have proper understanding of what might adversely affect his business in the coming times then he won’t be able to draft a contingency plan to counter those problems (Carr, 2011).
Also analyzing what might prove to be a hindrance helps the manager in overcoming those problems presently and avoids them from happening in future. Similarly critical success factors are those few elements which need to go well to ensure the prosperity of a business. Thus, it signifies those areas which require consistent and special attention to guarantee high performance levels. Thus, these factors present those elements which the company should stress upon to become successful (Mertens, n.d).
Professional Development while research
Financial Management Skills – The research has enhanced my skills regarding management of money. Moreover, through this study my portfolio has developed. It has created my ability to design budget as well as taught me the tactics to meet necessary requirements in fixed capital. The research has increased my capacity of savings, as at last stage the complete calculation has surprised me with beyond expected outcomes (Sekaran, 2006).
Time Management and Planning Skills – These skills are related to the capabilities of identifying and sorting out time management issues. The whole process of following research has learnt me about scheduling of several activities. It refers to counterbalance of given time period into each and every aspect of whole work. Through process of pre scheduling various activities, planning skills also learnt by me (Hackley, 2003).
Organization Skills – Proper organization of complete work helps a person in attaining success in less duration. Through this research, it has become possible for me to realize my skills of effective organization of whole project. In this research, I had learnt that how limited resources can be best utilized in achieving goals.
Presenting Skills – Presentation is a potential and speedy of methods for getting things done through engaging other people. While doing any job, presentation is used to plan and monitor the entire work. The research has developed my abilities to present complete work in front of peers and with this I was successful in getting effective contribution from them (Mayer, 2011).
Communication Skills – The study has improved my communication skills too, as know I am capable enough to share my thoughts with employers, consultant and various organizations. While conducting this research, I was met with professionals, experts and consultancy agencies. At the time of such meeting, using of gestures, timely response to others questions and seating postures was acknowledged by me. Through this, I gained how to attract others mind at our words as well as encourage them to perform on our proposal. Moreover, the overall meeting process has educated me about skills of listening others.
Continuous Self-Development Skills – Only bookish knowledge is not enough to achieve growth and success. While undertaking this research various tasks has completed by me, such as firstly, the planning of entire work then scheduling of activities, after this organization of entire work into small targets and finally risk management practice along with evaluation. It was helpful to me in self-development, as I was continuously involve in some important works that has provided me valuable knowledge regarding various fields (Helms, 2012).
Objectives can be defined as the final outcomes that are desired to be attained by an individual or organization in a particular time period with the accessible resources. MBA curriculum aims at providing the required skills, knowledge and competency to come out as a successful leader and manager. It is a wide subject encompassing comprehensive knowledge about various managerial subjects which are relevant for progressing through one’s career rather than just imparting technical training for a particular job (Ciconte and Jacob, 2011). The underlying objectives behind this course for a disciple are to accomplish and foster their foundations relating to the basic and core competencies that will support him/her in developing themselves as proficient managers.
- Development in Knowledge for pursuing an entrepreneurial career, its downsides, confrontations, management, concerns and financing.
- Understanding various analytical techniques and tools of decision making in an intricate business environment (Herman, 2008).
- Nurturing of organizational and managerial skills for enabling change management and proper execution of various strategies.
- Acquiring familiarity regarding the conceptual framework of various functional elements of a business.
- Cultivation of leadership and motivational skills together with fostering team work.
- Understanding the importance of technology for effectual management.
- The competency of functioning effectually in a varied international business environment (Ciconte and Jacob, 2011).
Findings and Outcomes
The shell for any study is its findings and outcomes. It gives us the result of completed work. On the basis of findings from the study, recommendations can be made to improve the process. For the present research, the outcomes or findings are not only useful in the present case, although it can be adopted in the potential cases of almost alike or same conditions from similar as well as similar industry.
Findings – In the research about economic and financial condition of Mongolia, it was identified that country’s economy is completely depended on foreign direct investment. The country has open policy for free trade with other nations, which make people from varied places to visit the country. The country’s major population is resides at Ulaanbaatar, which is famous for food business. Many attractive hotels are situated in this city and offering valuable service to outsiders. Moreover, from the conducted research, it has observed that mainly there are three industries operate in the nation, such as mining, service as well as science and technology. Among all this service industry is highly contributes in nation’s GDP by 50.4 percent. It shows that running hotels or restaurant would be beneficial in Mongolia (Asian Economic Integration and Business Environment, 2012).
Recommendations – Although the prepared business plan is appropriate for opening up of restaurant in Mongolia, but there are some suggestions that can improve business activities if adopted. Firstly, the restaurant has targeted its services to tourists only that should be extended to local public also. As business growth is depends on performance of the staff, so valuable training and development sessions should be given to them for their self-improvement at workplace. Moreover, diverse workforce must be employed by organization to fulfill the expectations of multiple clients. Restaurant should make regular innovations in its menus, to attract more customers, as due to non existence of entry barriers many new firms are capturing the existing market.
Conclusion – Business arrangement is headed by decisions for having a commercial recognition and career of promising idea of business supported by careful examination of the presence of industrial opportunities in the selected marketplace. In this research both primary and secondary method has utilized by me to gain insights about expectations of tourists and various professionals view on service industry and economical feasibility of country to start new venture. Primary research has provided a positive comeback towards the proposal together with secondary one. On the basis of consumer’s response to the planned idea of business, the restaurant has a positive possibility to get success in the market (Helms, 2012).
- Asian Economic Integration and Business Environment. 2012. [Online]. Available through: <http://www.infomongolia.com/ct/ci/4711>. [Accessed on 31 October 2012].
- Carr, M., 2011. Critical Analysis of Statistical Methods used in Research Papers. [pdf]. Available through: Website: <http://mathstore.ac.uk/headocs/Carr.pdf>. [Accessed on 31 October 2012].
- Critical Success Factors (CFS’s) made easy. 2007. [Online]. Available through: <http://rapidbi.com/criticalsuccessfactors/>. [Accessed on 31 October 2012].
- Daly. J. C. K., 2011. Mongolia Energy Riches Attract Neighbors and Outside Interests. [Online]. Available at: <http://edmortimer.wordpress.com/2011/08/15/mongolia-energy-riches-attract-neighbors-and-outside-interests/>. [Accessed on 31 October 2012].
- Helms, S., 2012. Potential Barriers to Research. [Online]. Available through: <http://www.ehow.com/info_8219249_potential-barriers-research.html>. [Accessed on 31 October 2012].