Business refers to any commercial activity that helps individuals or organisations to generate money. It is a quite complex activity to set up a business and run it to ensure its long term sustainability and growth in the market (Burns, 2016). The following project is based setting up a small restaurant business by the name of “Harvey's” in Liverpool, England, United Kingdom. It covers a detailed summary on how the restaurant would operate, the research that would be conducted to set the business up and how it would deal with ethical dilemmas. It also includes its compliance with equality and diversity laws and description of restaurant's gains, expenses, liabilities and assets.
Setting Up of The Restaurant
Any new business venture requires a framework upon which it is set up and carry out its duties and responsibilities through which it earns profit, gain customer loyalty and ensure benefits to the society. As per the scenario, the name of the restaurant would be “Harvey's”. They ways in which it would operate in the UK market is described below:
- Industry:Before the actual set up, it is imperative as well as convenient to determine under what industry will the business operate. Harvey's would be a mainstream restaurant and would serve under Service Industry in the United Kingdom.
- Location:The restaurant must be situated in a place where it gains maximum attention of people. Since Liverpool is the home-town of the band 'The Beatles', the most prime location for Harvey's would be near Britannia Vaults, Albert Dock where the biggest exhibition of the band is situated (Top Liverpool Attractions, 2019).
- Target Customers:There has been a significant rise in tourism activities in the UK and majorly in Liverpool. Moreover, with more adoption of healthy lifestyles, the target customers of Harvey's would be general population of age 16-60 with income more than £1,000 per month. In addition, the restaurant would focus on individuals who are loyal in consuming healthy products and maintaining a clean way of living.
- Business Model:For making a business successful, it is crucial that focus of the business apart from earning profit is to address the issues affecting the people to contribute in betterment of the society. With rising obesity in the country as well as inclination towards healthy living, Harvey's would provide healthy food items, rich in nutrition and vitamins. Furthermore, the food items and beverages would also emphasize on the protein requirements of individuals after workouts to help them fulfil their diet necessities.
Visual Identity of Harvey's
Every business has a unique brand and identity which notifies customers of its operations and agenda of its establishment (Goffee and Scase, 2015). For Harvey's too, it is important that its brand image clearly help customers to acknowledge the agenda of the restaurant. Its logo must clearly identify its ideology and the kind of service it would provide to the public. In Harvey's case, entrepreneur is required to extensive research to design its logo that effectively serve the purpose. To achieve this, Harvey's would draw inspiration from NOSH, which is an organisation covering entrepreneurial packaged food firms and services.
As seen in the logo, it clearly determines the ideology of NOSH behind its business operations. Similar should be the case with Harvey's when it comes to developing a visual identity for the restaurant.
Values of Harvey's
Every organisation must have certain beliefs and values upon which it would base its business operations to ensure ethical running of business (Burns and Dewhurst, 2016). As a business the values that would be promoted by Harvey's are described below:
- Social Values:These values are the ones which ensure ethical and beneficial services for society. Harvey's would comply with equality and diversity while hiring employees for the restaurant. A share of its profits will be contributed in charities and old age homes as well as for health and social care organisations. Furthermore, Its products would provide health benefits and rich diet to customers at a reasonable and affordable price range.
- Environmental Values:Organic fruits and vegetables would be used to produce food items for its customers. Along with this, Harvey's would not include food items which involves activities like animal poaching. An effective waste management system would also be employed by the entrepreneur to prevent food waste and effective recycling of resources.
Market Research is a method used by organisations to analyse the market and effectively identify the opportunities that would help the firm in sustaining longer in the market. Small businesses are required to conduct market research to determine wants, needs and preferences of customers through which they could develop strategies for their business (Isaak, 2016).
Harvey's could use few research methods to analyse the market for its business which are mentioned below:
This research type refers to the first-hand research that would be performed by entrepreneur of Harvey's. This would help in determining the needs and preferences of customers in the marketplace. The most effective techniques that could be used by the entrepreneur are surveys, interviews and questionnaires to conduct primary research effectively. This would help the firm in determining appropriate customer markets, effective factors that could influence their buying decisions and current market trends.
The second-hand information that could be used by Harvey's entrepreneur would sum up under secondary research (Klandt, 2015). This information could be beneficial in case entrepreneur needs to find out the best promotional and advertising techniques that could best serve the purpose. For this, the most effective techniques for Harvey's are internet, journals, magazines and so forth. Effective website researches and reports from financial institutions would help Harvey's in adopting methods of advertising and effective ways to generate fund.
This is aimed at gathering customer attitudes and views. Entrepreneur of Harvey's could conduct its research by focus groups, reviewing competitors to understand their service practices and observation of customers habits and buying patterns. It would allow the firm to understand socialism and customer ideology.
This research covers the information that could be presented under numerical terms. Statistics is one of the most effective method by which entrepreneur could determine information about the numerical and financial facet of the market they wish to establish Harvey's in (Kautonen, van Gelderen and Fink, 2015). One such statistic is presented below:
As per the graph, the revenue of service industry is likely to be favourable for Harvey's for the coming few years. Such research would give a heads up to the firm to establish its business under this industry and would measure its profitability effectively.
Ethical Dilemma of Harvey's
It is quite crucial for an organisation to resolve ethical dilemmas to ensure an ethical and encouraging environment in the organisation. Ethical decisions would allow the company to build trust in the employees and secure their long term engagement with the firm (Piperopoulos and Dimov, 2015). In case of Harvey's, the solution for its ethical dilemma of being promoted by the website that ill-treats its employees would be to not associate itself with such a company. The reason for this would be to keep the employees motivated and assure their well being before anything else. Association with such a website would cause demotivation and mistrust in the staff members that is not good for the firm. Disassociation with such a website would also help the firm fulfil its social values which involved compliance with equality and diversity for the employees.
In 2018, a Multi-national company like Google paid an amount of £4,000 for a racial discrimination case against the company in the UK. Almost 20,000 employees walked out of Google after witnessing cases of discrimination and harassment which forced it to change its internal rules (Google reportedly paid £4,000 to settle a racial discrimination lawsuit in the UK,2018.). Such cases could be an evidence for Harvey's to adopt ethical practices as well as associate itself with firms promoting the same values.
Rights and Laws for Harvey's Employees
Harvey's road to success would require the restaurant to effectively comply with the employment legislations and give effective rights to the employees for their better commitment and better service quality. Employees working at zero-hour basis are the ones who are casually arranged by employees to carry out specific tasks for the entrepreneur and there is no obligation to provide any minimum working hours to the employees and similarly, there is no legal obligation from the employee to accept any offered work.
Equality and Diversity Law:
While hiring employees, it is imperative that Harvey's comply with Equality and Diversity Law while choosing applicants. It can do so by setting up skills, competence and experience as a criteria for setting up the pay scale. Another manner in which Harvey's could effectively comply with this law is that it could describe equal opportunity for each candidate regardless of their race or gender in their job advertisements.
Rights of Employees:
The new employees of Harvey's employed on zero-hour contracts have certain rights that are bound to be given by the entrepreneur to ensure their long-term association with the company. These rights are mentioned below:
- These employees must be be secured from any kind of discrimination in the workplace.
- Zero-Hour Contract employees are entitled to receiving national minimum wage for their work.
- They are also eligible for few rest breaks and paid leaves during their employment period in Harvey's
Accounting Principles for Harvey's
Harvey's, in order to effectively succeed must determine basic accounting terminologies that help the firm in getting a brief understanding of its financial and accounting resources. Some of these resources are mentioned below:
Assets: These could be referred to as the tangible belongings of an organisation. These resources are owned by the company. The assets of Harvey's are described below:
- Cash and Equivalents:One of the most important asset of the firm is cash. In addition to this, cash equivalents are also considered as crucial items and involves assets that could be liquidated by Harvey's on a short notice like marketable securities.
- Inventory:All the money spent on raw material, WIP goods as well as finished products are inventory. Harvey's use this as it reports cost of products sold and in income statements.
Liabilities: Obligation of an organisation are termed as Liabilities. These are those amounts that the company owes to external entities. Some of the Liabilities of Harvey's are:
- Debts:These are the amount that Harvey's owner owes the market. These could be described as a short and long term debts depending on their maturity period.
- Accounts Payable:The amount which Harvey's owes to the suppliers for their services and credit purchases are known as accounts payable.
Gains:These are the values for Harvey's which are generated through sales of restaurant's confectionery items. Other source through which the firm could gain value is entrepreneur's investments in market (Bell, Bryman and Harley, 2018).
Expenses:The amount spent by Harvey's entrepreneur for production and distribution of food items, administration expenses, interests and so forth would be considered as expenses for the firm.
To effectively manage their budget of £20,000 and to avoid any kind of problems in the future, it is imperative that Harvey's adopt cash flow as a method to regulate and track their financial resources.
Thus, it is concluded from the report that setting up a small business requires effective steps to be taken by the entrepreneur. It is required that a operations of the firm be summarised and visual identity be decided along with the values promoted y the firm. It is equally important for the owner to conduct researches that help the entrepreneur analyse the marketplace effectively. Ethical dilemmas must be effectively resolved and the firm must comply with equality and diversity law and provide effective rights to the employees. Lastly, the firm must determine it accounting resources and ways to avoid cash flow problem to ensure its long term sustainability.
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