Amanda's Restaurant (a) - New Venture Creation
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MBSA 2313
New Venture Creation (NVC)
SEMESTER I, 2015/2016
Amanda’s Restaurants (A)
Lecturer : Dr. Adriana Mohd Rizal
Student Name : Teo Yin Cheng
Matric Number : MBS141153
Question 1
- Explain how did the business concept of Amanda’s restaurant first initiated?
Amanda West would like to switch to the consumer services, particular in social and environment mission after having a six years working experience with Sun Microsystem and Cisco System. She was interested in the food industry because she think that food was a common consumer goods which people buy everyday and it was spent by all socio economic levels. Trader Joe, a food retailer who provide natural unique food at an affordable price had inspired Amanda to set up her own business. Amanda was a MBA students from Stanford University. She did her research and networking within the food industry during her first year study of MBA. She did her internship at the food distributor who distribute high quality natural meal. The internship period was very important for Amanda to initiate her business concept and build a strong foundation for her future business concept as she was receiving first hand industry information and experience.
A book named “Fast Food Nation” which critiqued American’s unhealthy fast food culture had inspired Amanda to generate her own business concept. After reading the booking, she was able to identify that most of the American lived in a fast pace life where this situation could lead to the fast growing of fast food industry with increasing demand. Besides that, Amanda realized that American women was re-entering to the workforce and they were no longer cook at home for the family. In this scenario, fast food had become an affordable and convenient option for them. However, most of the fast food option was lack of health alternatives. The problem of limited choices in fast food market had been recognized by Amanda as a business opportunity. She had started to plan to start a healthy fast food restaurant during her study time.
Amanda had joined an evaluating entrepreneurial opportunities course in her MBA to further explore her business concept. She team with other classmates who made up from different background like finance, public relation, and other field from the study course. She was able to listen to the sharing of others and have a better understanding of the industry from different perspective by knowing and grouping with them. The earliest business idea of Amanda’s Restaurant was emphasizing at the keystone idea of “health and natural fast food”
- Imagine you are a classmate of Amanda West’s in 2005, what do you think of her concept (Pros and Cons)?
The Pros of Amanda’s business concept was emphasizing in healthy fast food. She realize that American culture was highly depending on fast food for their mean during her earlier observation. The fast food option was also very limited healthy option. Furthermore, she found out the number of American women to reenter workforce who had no time to cook for family are increasing. And this is the reason she decide to go for the fast food with healthy option concept. Food was a daily consumption goods where Amanda had a very big potential market for her business concept.
Besides that, Amanda’s business concept matched with the current market trend which the fast food was highly demanded. Her idea of using healthy ingredient in the fast food was new and attractive in the market. Customer will be interest for this new business concept. Natural and healthy concept fulfil Amanda’s vision who want to contributing to social and environment responsibility. Amanda could increase the health awareness among the customer in US industry if her business concept could be launched. This achievement could fulfil the mission that she set.
Whereas for the Cons of her business concept was the public perception for fast food. Amanda received warning from her school tea, about the perception of healthy and natural food were difficult to provide great tasting experience where the business concept was too limited in scope. During the early interview, Amanda also understood that she could be difficult to control the cost of food for her healthy concept and price the food at a reasonable price. This is because the cost of healthy ingredients are more expensive than normal ingredient that used in the fast food. Amanda was trying to relate her business to the social responsibility which could be difficult for her to incorporate to her business at the early stage.