Introduction
Before extending business services, owners are responsible for establishing a detailed plan that outlines the vision, goals, potential risks, and involved stakeholders. In this scenario, as the business leader, I plan to launch a fresh, organic catering business for clients in my urban area. Under this plan, my goal is to sell high-quality organic foods and special-event catering to achieve high profits in a year by effectively managing the company’s personnel, negotiating with farmers, and building a loyal customer base.
Project Analysis
Once the project is initiated, it is necessary to consider its needs. For the 10th anniversary of the local organic fresh market, the company begins catering services to meet clients’ demand for more food offerings for special events within a 25-mile radius. Its goal is to offer first-rate catering food with timely delivery while not interfering with in-store sales. Involved stakeholders include customers, farmers, and employees, with the first group benefiting from a novel dining experience and increased satisfaction. The second group receives new partnership opportunities by selling ingredients to my company, while employees improve their catering preparation experience with additional training and flexible working hours.
Apart from that, the project demonstrates greater feasibility, as three components meet expectations. For example, the scope and timeline cover one month with a client base within a 25-mile radius, aligning with prioritized competencies of organic food supply. Its cost, however, emphasizes ineffective financial management, which should be resolved immediately in the following paragraphs. The project generally responds to customer demands and aligns with the company’s core competencies.
The project planning requires envisioning the future business and its stages. The comprehensive milestones start with menu development, including entrees and desserts, within the first five days. I will negotiate with farming communities in the next ten days to find suppliers and a catering van. The second half of the month should be dedicated to the final milestone of building a customer base through local and social media advertising.
On this occasion, Kubiak-Padskowska (2024) advises implementing loyalty programs and mobile applications to enhance clients’ experience and make the project design more appealing through modernity and customization. Although each milestone is essential, dedicating more resources to attract the target audience’s attention is helpful for a business during its initial stages.
The subsequent steps of project planning include goal setting and risk identification. Based on SMART standards, the project aims to achieve a 15% profit margin by acquiring more than 100 clients within a 25-mile radius through customer-centered service, while maintaining an average satisfaction rate of more than 85%. This goal is based on finding the average 7% profit margin for catering, which is maximized to 25% over the extended period (Kubiak-Padkowska, 2024).
However, maintaining partnerships with multiple farmers should minimize the risk of a disrupted supply chain. An additional risk is increased utility costs interfering with business operations, but investing in energy-efficient equipment and training employees on energy-saving practices addresses it (Kubiak-Padkowska, 2024). Hence, the catering business addresses local growth potential and risks.
As mentioned above, one of the triple constraints – project cost – indicates decreased feasibility. That is why, in the third stage, addressing project overrun and scheduling conflicts is critical. For the 10% budget over-expenditure, I should re-analyze costs and re-assess the budget to negotiate with suppliers and reduce food waste by monitoring inventory and re-planning the menu (Kubiak-Padkowska, 2024). Also, it might be necessary to reduce plate sizes and remove dishes with the highest food waste (Wu et al., 2021).
Meanwhile, alternative ingredients such as spinach can resolve a scheduling conflict caused by the delay in fresh lettuce. Once the ingredient becomes unavailable, the personnel and managers should negotiate with other farmers to find a substitute. However, I should communicate all changes to the customers to avoid misunderstandings. These strategies help address disputes without disrupting the business plan.
Company stakeholders should use critical thinking to mitigate risks during project monitoring and control. For example, scheduling and budget constraints can lead to menu or delivery modifications, affecting the quality of other ingredients and prompting negative client feedback. Meanwhile, spending extra money on the first ten catered lunches can limit my company’s expenditures on marketing campaigns or other essential operating expenses, thus decreasing the target audience’s engagement. Once personnel acknowledge potential risks, the company strives to prevent them and minimize their impact on customer satisfaction.
In the final stage, reflecting on the business journey, I consider two changes to the plan. Primarily, I would extend the project timeline to develop more solutions for unpredictable challenges, such as menu adjustments based on ingredient availability. Another suggestion is to reconsider the buffet-style and replace it with small-portion bowls to minimize food waste or to ensure these clients become loyal to my catering business through rewards (Wu et al., 2021). These ideas justify the claim that preventing non-essential expenses is critical to maximizing profit margins.
Conclusion
To conclude, the project shows high feasibility and applicability for increasing the company’s revenues, but several constraints should be considered and re-adapted throughout the business stages. For example, I should establish strong relationships with farmers, a critical stakeholder, to find alternative ingredients when menu components are unavailable. I can also reduce expenses while continuing to invest in employee training and menu development to attract more clients. Within a year, achieving a substantial profit margin is possible only when the group works cooperatively and effectively.
References
Kubiak-Padkowska, A. (2024). Catering profit margin: How to increase & calculate. Up Menu.
Wu, Z., Mohammed, A., & Harris, I. (2021). Food waste management in the catering industry: Enablers and interrelationships. Industrial Marketing Management, 94(1), 1-18.