Term Project Report

8/4/2019 Term Project Report

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ENTREPRENEURSHIP

&

SMALL BUSINESS

TERM PROJECT REPORT

CASE STUDY OF MR. JAVEED

OWNER OF JAVEED NEHARI


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SUMBMITTED TO:

DR FAZAL A KHALDI

SUBMITTED BY:

Dated: 05th

September 2011

SYED MUHAMMAD ALI 2010-3-11-11048

RANA JAVED 2010-3-11-11042

MUHAMMAD BILAL HUSSAIN 2008-1-07-9203

SYED KAMRAN AHMED 2008-1-02-9248


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LETTER OF TRANSMITTAL

August 20, 2011

Dr Fazal A Khaldi

Course Instructor

Entrepreneurship & Small Business

Institute of Business Management

Dear Sir:

We have been assigned to submit a report on an interview and case study of any

entrepreneur, for which we have selected Javeed Nehari. This report leads us to

exploring horizons of moving an idea to a business, managing and growing the business

Hotel.

Evaluating case study in real work environment had been an exhilarating experience for all

of us and is going to help in our professional career

We express our deep gratitude to you for giving us such great deal of learning opportunity

Regards,

SYED MUHAMMAD ALI

RANA JAVEDMUHAMMAD BILAL HUSSAINSYED KAMRAN AHMED


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ACKNOWLEDGMENT

We would first like to thank Almighty ALLAH for His Blessings. This report is dedicated to our

parents, without whom none of our accomplishments in life could have been achieved. Their

unconditional love and unending support of our personal endeavors has been a major factor in giving us

the strength to pursue MBA program.

We are very grateful to Dr Fazal A Khaldi course instructor for Entrepreneurship and Small Business,

who provided the opportunity to learn the successfully launching new venture domain. We truly

appreciate his efforts to make the concepts easy and relevant examples given throughout the course. We

would also like to thank our institution for the support and patronage we received.

And last but not least we would like to extend our heartiest thank to Mr. Javeed for his support,

cooperation & guidance in collecting the data for completing this project which was of utmost

importance.

Regards,

SYED MUHAMMAD ALI

RANA JAVEDMUHAMMAD BILAL HUSSAINSYED KAMRAN AHMED


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TABLE OF CONTENTS

LETTER OF TRANSMITTAL .......................................................................................................................... 3

ACKNOWLEDGMENT ................................................................................................................................. 4

EXECUTIVE SUMMARY .............................................................................................................................. 6

DECISION TO BECOME AN ENTREPRENEUR .............................................................................................. 8

Introduction........................................................................................................................................... 7

DEVELOPING SUCCESSFUL BUSINESS IDEA ............................................................................................... 9

Recognizing the opportunity and generating the idea ....................................................................... 10

Feasibility analysis ............................................................................................................................... 12

Industry and competitor analysis ........................................................................................................ 12

Business model .................................................................................................................................... 13

MOVING FROM AN IDEA TO A BUSINESS OF HOTEL ............................................................................... 16

Building a team .................................................................................................................................... 15

Assessing a financial strength and viability ......................................................................................... 16

Ethical and legal foundation ................................................................................................................ 16

Business plan ....................................................................................................................................... 16

Finance or Funding .............................................................................................................................. 16

MANAGING AND GROWING THE BUSINESS OF HOTEL ........................................................................... 17

Marketing issues ................................................................................................................................. 18

Intellectual property............................................................................................................................ 18

Evaluate the challenges of growth ...................................................................................................... 18

Strategies of growth ............................................................................................................................ 18

RECOMMENDATION FOR THE JAVED NIHARI ......................................................................................... 19

Segment the CEO ................................................................................................................................. 19

Restaurants Ambiance ....................................................................................................................... 19

Spacious Space .................................................................................................................................... 19

Avail the opportunities ........................................................................................................................ 19

Expand the Business ............................................................................................................................ 19

1- There are economies of scale that will benefit an expanded operation ................................ 20

2- Your competitors expanding ................................................................................................... 20

Home Delivery Service ........................................................................................................................ 20

Export .................................................................................................................................................. 20


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EXECUTIVE SUMMARY

This report comprises of case study of Javeed Nehari Hotel. The objective of this report is to

study the complete real situation and different stages of business and to relate the

entrepreneurship and small business theory with the practices pursued by the Javeed Nehari

Hotel.

The report covers all parts of entrepreneurship of successfully launching new ventures.

DECISION TO BECOME AN ENTREPRENEUR

Entrepreneurship is becoming a focal point in much of the popular press as well as in

academia. Economic theory has yet to make a concerted effort at explaining

entrepreneurship, either its role in economic development or its determinants.

DEVELOPING SUCCESSFUL BUSINESS IDEAS

A new idea is often the basis for starting up a business. Many entrepreneurs spot a gap in the

market and start businesses that provide a product or service that fills it. Others come up with

ways to improve an existing product.

MOVING FROM AN IDEA TO A BUSINESS OF HOTEL

Every successful business starts with an idea. Getting the idea, however, is the easy

part! Translating that idea into a viable business model is where most people fail. Most

businesses fail in the idealization phase.

MANAGING AND GROWING THE BUSINESS OF HOTEL

Once a start-up business is up and running, how does an entrepreneur manage it? Often the

entrepreneurial spirit of self-confidence, creativity, focus and control leads to financial and

personal grief as the enterprise grows. A hands-on entrepreneur who gives birth to the business

loves perfecting every detail. But after the start-up, continued growth requires a shift in

management style.


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DECISION TO BECOME AN ENTREPRENEUR

Some entrepreneurs are open about the reasona layoff followed by a time without finding a

new job forced them to improvise. Fair enough. Others look back and claim that a brave

moment of clarity prompted them to leap into a new lifestyle when in reality they, too, were

forced by circumstance.

As per our academic understanding the three primary reasons that people become

entrepreneurs and start their own firms are:

Desire to be their own boss

Desire to pursue their own ideas

Financial rewards

But in our discussion with Mr, Javeed, the reason was that he wanted to do his own business

without considering the other circumstances because at that time when he started he did not

had anything to lose if his idea gets fail.

Introduction

Mr Javeed the owner of Javeed Nehari hotel started his business from a handcart at

Kareemabad of Halwa Pori then his brother advised him to open a very small shop of Naan.

After that he decided to start Nehari at same place. His ancestors belongs to Dehli (India) and

had the same business of Nehari. Luckily he set a formula masalas of Nehari that became too

much popular than everyone likes it. Very slowly and steadily he continued his business and

now it has become that largest hotel of Nehari in Karachi. He is associated with this business

more than 32 years.

He thinks that there is no need to open its branches in the city or any other place of Pakistan

because same taste will not be possible to provide at each place and ultimately the

reputation will effect and the business may suffer.

We interview of Mr. Javeed and attempted to explore the strategies and management due to

which a very small shop became the largest Nehari Hotel of Pakistan.


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DEVELOPING SUCCESSFUL BUSINESS IDEA

When Mr. Javeed started his business at that time he did not think about the idea that how

much it would be successful because he was not educated and not well aware about the

business plan or idea. Now if we consider his idea then we can analysis those 30 years before

the idea which came in Mr. Javeed mind had chances of success. A detailed study was

carried out and attempted to correlate with our course.

Marketing a restaurant business used to be a relatively simple thing: Create an ad, run it in the

paper or give a chunk of cash to the Yellow Pages people, and youre state. Even your

biggest and worst mess ups didnt usually get known outside of a small c ircle of people.

Restaurant marketing success today depends not as much on what you say about yourself but

what other people say about you.

It doesnt matter if these comments are based on facts or fiction, or if one of your staff

happened to have a bad night, or if you had to fire an employee and now they are retaliating

by smearing your restaurant business online. Its of no consequence if the customer was irate

and unreasonable. These comments are now there for the entire world to see and judge and

as a result, your restaurant business suffers.

With social media and review sites everywhere, the reputation of your restaurant business isunder constant scrutiny of literally thousands would-be-guests. Some of them could be strolling

down the local street and reading your restaurant reviews on their cell phone while others

would be miles and miles away, on their computer, planning their trip to your city.

Recognizing the opportunity and generating the idea

As we all know that an opportunity is a favorable set of circumstances that creates a need for

a new product, service or business. Trends create opportunities for entrepreneurs to pursue.

The most important trends are:

Economic forces.

Social forces.

Technological advances.

Political action and regulatory change.


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When Javeed Nehari business is correlated with opportunity so we can say when this business

was set at that time the circumstances were

At that time there was no Nehari restaurant in the vicinity.


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Feasibility analysis

Feasibility analysis is the process of determining whether a business idea is viable. It is the

preliminary evaluation of a business idea, conducted for the purpose of determining whether

the idea is worth pursuing.

Timing of Feasibility Analysis

The proper time to conduct a feasibility analysis is early in thinking through the

prospects for a new business.

The thought is to screen ideas before a lot of resources are spent on them

Components of a Properly Conducted Feasibility Analysis

A properly conducted feasibility analysis includes four separate components, as

discussed in the following slides.

Forms of Feasibility Analysis

I. Product/Service Feasibility

II. Industry/Target Market Feasibility

III. Organizational Feasibility

IV. Financial Feasibility

Is an assessment of the overall appeal of the product or service being proposed? Before a

prospective firm rushes a new product or service into development, it should be sure that the

product or service is what prospective customers want.

Industry and competitor analysis

Industry analysis is a type of investment research that begins by focusing on the status of an

industry or an industrial sector. Why is this important? Each industry is different, and using one

cookie-cutter approach to analysis is sure to create problems. Imagine, for example,

comparing the P/E ratio of a tech company to that of a utility. Because you are,

in effect, comparing apples to oranges, the analysis is next to useless.


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Business model

Market Trends

The market trend for restaurants is headed toward a more sophisticated customer. The

restaurant patron today relative to yesterday is more sophisticated in a number of different

ways.

Food quality

The preference for high-quality ingredients is increasing as customers are learning to

appreciate the qualitative differences.

Presentation/appearance

As presentation of an element of the culinary experience becomes more pervasive, patrons

are learning to appreciate this aspect of the industry.

Health consciousness

As Americans in general are more cognizant of their health, evidenced by the increase

in individuals exercising and health club memberships, patrons are requesting more healthy

alternatives when they eat out. They recognize that an entree can be quite tasty, and

reasonably good for you.

Selection.

People are demanding a larger selection of foods, they are no longer accepting a limited

menu.

The reason for this trend is that within the last couple of years the restaurant offerings have

increased, providing customers with new choices. Restaurant patrons no longer need to

accept a limited number of options. With more choices, patrons have become more

sophisticated. This trend is intuitive as you can observe a more sophisticated restaurant patron

in larger city markets such as Seattle, Portland or New York where there are more choices

available.


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SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the hotel and

describes the opportunities and threats facing Javeed Nehari hotel.

Strengths

Strong relationships with vendors that offer high-quality ingredients and fast/frequent

delivery schedules.

Excellent staff who are highly trained and very customer attentive.

Great retail space that is bright, hip, clean, and located in at a commercial location.

High customer loyalty among repeat customers.

High-quality food offerings that exceed competitors offerings in quality, presentation,

and price.

Weaknesses

A limited marketing budget to develop awareness.

The struggle to continually appear to be cutting edge.

Opportunities

Same franchise can be opened at different locations of city and country. Increasing sales opportunities in take out business.

The ability to spread overhead over multiple revenue centers.

Threats

Competition from local restaurants that respond to Javeed Nehari superior offerings.

Available restaurants at Yaseenabad chains found in other markets coming to Eugene.

A slump in the economy reducing customer's disposable income spent on eating out.


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MOVING FROM AN IDEA TO A BUSINESS OF HOTEL

Building a team

Assessing a financial strength and viability

Ethical and legal foundation

Business plan

Finance or Funding


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MANAGING AND GROWING THE BUSINESS OF HOTEL

Marketing issues

Intellectual property

Evaluate the challenges of growth

Strategies of growth


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RECOMMENDATION FOR THE JAVED NIHARI

A restaurant owner is the one who has all of the responsibilities of maintaining and running the

business. A restaurant owner is sometime also the restaurant manager.

Segment the CEO

He should divide the responsibilities and must hire or promote someone to take care of many

of the required daily functions of the business, This including overseeing, ordering and tracking

all of the food, supplier, equipment and other inventories needed. It also consists of

maintaining the building and equipment. Other jobs may include hiring, training, directing,

scheduling and dismissing employees.

The Finance, promotions, and goals of the business are part of the owners responsibilities. He

should keep an eye on the market, seek opportunities and new ideas.

Restaurants Ambiance

When you walk into a restaurant with great ambiance or atmosphere, whether it be lovely

furnishing, soft lighting, beautiful dcor, paintings, fresh flower, what ever it is , it makes you

more comfortable in your surroundings. The chances are in this type of place the food will be

delicious. It makes everything taste good. It will be something you will not soon forget.

Javed Nihari restaurants ambiance needs improvement, so we would recommend him to

improve the restaurants ambiance. Food is only part of what makes eating out so much fun.

Spacious Space

Restaurant sitting arrangement and space is inadequate and customers usually wait for tables

and many peoples do not come to restaurant due to space deficiency. It is recommend to

enhance the space, so that customer do not wait and gladly willing to come to restaurant.

Avail the opportunities

This is the time to avail the opportunity of expending the business, as now a days therestaurants business is flourishing and many new restaurants are opening, so that it is suitable

time to use their name and launch new outlets and products.

Expand the Business

The decision to extend the scope of your business must be a result of thoughtful

consideration of various factors, including the financial, logistical, even your


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emotional readiness. The rule of thumb is that you should only expand when there are

untapped opportunities that can benefit your business. There may be a niche that

you want to capture; or a location not serviced even by your competitors.

1- There are economies of scale that will benefit an expanded operation As your businessincreases in size, costs per unit fall, resulting in lower prices or higher profit - or both. You should

only expand if economies of scale will allow your business either to sell your products or

services at lower prices or to take more profit per item.

2- Your competitors expandingMarket intelligence should play a key part in your decision toexpand your business. You may be able to get important clues about the market, and some

indication about your competitor's situation. Getting information about your competitors can

give you the leading edge, as it can show you ways in which your company benefit the

customer and be unique. Zahid Niahri has started the outlets on different location in the city

and successfully running the new outlets. Following your competitor's lead does not necessarily

mean that you have to duplicate exactly what they are doing. Instead, you can use their

ideas to stimulate your own thinking.

Home Delivery Service

Its important in business to not only have a good product but to market it as well! After all,

what use is the best product if no one knows about it?

We would recommend him to launch the home delivery service, because no one is offering

this service in Nihari restaurants. This will not only increase the sells but also swell the brand

name.

You can use call centers for order booking and third party for the distribution.

Export

There is one more opportunity to export the Nihari out of country in tin packing, like Ahmed

sweets. You can get a big export market in UAE, Saudi Arabia, UK & USA etc., because there is

large number of Asians populace and they like to eat Asian foods.


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SO IF YOU WANT YOUR BUSINESS TO SUCCEED, DEDICATE YOURSELF TO IMPROVING YOUR PRODUCT TO GIVE YOUR

CUSTOMERS MORE OF WHAT THEY WANT, AND THEYLL REWARD YOU BY COMING BACK - AND THEYLL BRING THEIR

FRIEND ALONG TOO!

This concludes our comprehensive studies of Javeed Nehari Hotel

END OF REPORT

Documents

Term Project Report