Gbenga Alimi wants to establish a fast food restaurant in Koko, a state in Naijaland. A well-known global fast-food outfit in Naijaland has agreed to give him a franchise to operate the business in the state. However, the franchisor has requested Gbenga to present a viable business plan for assessment.

Required:

a. Outline the contents of a business plan addressing the proposed franchise’s viability. (20 Marks)

b. Use a graphical representation to educate Gbenga on the four stages of the classical product life cycle. (6 Marks)

c. Within an organizational context, distinguish between:

i. Narrow and wide stakeholders
ii. Active and passive stakeholders

(4 Marks)

  • a. Components of a Business Plan:
    • Title page: Attracts readers and assists them in finding the report later, usually includes the title, author, organization’s name, reference numbers, confidentiality degree, date, and relevant artwork such as a logo.
    • Table of contents: Lists all sections with page numbers.
    • Introduction: Prepares readers, explaining the subject, purpose, and methods.
    • Executive Summary: Summarizes key points for busy readers.
    • Business Description: Details the business, its history, products, and unique factors.
    • Market Analysis: Identifies target market, demand, trends, competitors, and pricing.
    • Marketing Plan: Outlines promotion, distribution, and pricing strategies.
    • Operations Plan: Describes daily business processes, location, facilities, and equipment.
    • Management Plan: Details management team, organizational structure, and staffing.
    • Financial Plan: Projects revenue, expenses, profitability, and funding needs
  • b. Product Life Cycle Stages:
    • Introduction: Product is launched, with low sales and high investment.
    • Growth: Sales increase, brand recognition improves, and profit margins grow.
    • Maturity: Sales peak, market saturation occurs, and competition is high.
    • Decline: Sales decline due to new innovations or changing consumer preferences.

    The stages should be represented in a standard product life cycle graph​

  • c. Stakeholder Analysis:
    • Narrow vs. Wide Stakeholders:
      • Narrow stakeholders: Directly impacted, such as shareholders and employees.
      • Wide stakeholders: Less directly impacted, including government and wider community.
    • Active vs. Passive Stakeholders:
      • Active stakeholders: Involved in decision-making, like employees and managers.
      • Passive stakeholders: Not directly involved, but interested, e.g., local communities and government