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Intro to Modern Business 101

In: Business and Management

Submitted By 911kevin
Words 1631
Pages 7

Kevin Lentz


Chapter 1

Rooftop Restaurant and Lounge will enter into a market with perfect competition. With perfect competition Rooftop Restaurant and Lounge will have an infinite number of consumers with the willingness and ability to buy our products at a certain price. It would also have an infinite amount of producers with the willingness and ability to supply the products at a certain price. Rooftop Restaurant and Lounge is a new fine dining restaurant and lounge located on LaGrange Road in Orland Park. Rooftop Restaurant and Lounge will target both fun-seeking as well as sophisticated diners looking for great food in a fascinating atmosphere. Our Rooftop will offer 360 degree views with a unique outdoor terrace. Rooftop Restaurant and Lounge will seek to earn 85% gross margins through an innovative and creative setting, a great menu, and the best service.

Five Factors of Production:

Start up costs and all financing of Rooftop Restaurant and Lounge will be funded by the owner Kevin Lentz. Rooftop Restaurant and Lounge would be situated on a busy intersection in Orland Park. This would be new construction: building Rooftop Restaurant and Lounge from the ground up. Rooftop Restaurant and Lounge would first have to hire a construction company to build the establishment. Once the building was complete and up to code, Rooftop Restaurant and Lounge would hire its staff and purchase inventory. Rooftop Restaurant and Lounge focuses on local and tourist active restaurant seekers, with special focus on young adults with a $20-30,000 a year income and a desire for good food with a fascinating atmosphere.

According to Orland Park’s demographics from the United States Census Bureau we generally know the characteristics of our target market. Our personal crowd would consist of young adults (ages 20-29) and adults (ages 30-50), both male and female, usually at least one year of college if not already fully graduated. Our geographics include people from the local Orland Park area, people from neighboring cities, and tourists from other states and countries.

Chapter 2

Restaurants rack up one of the most costly environmental bills in the retail world. Fortunately, there are ways restaurants can go green on more than just their menus. Rooftop Restaurant and Lounge will be a Certified Green Restaurant. Some Certified Green Restaurants save thousands of dollars by cutting energy, water, and waste. They appeal to environmentally concerned Americans and those who are health conscious.

How will Rooftop Restaurant and Lounge be environmentally friendly and socially responsible?

Walking into Rooftop Restaurant and Lounge you'll find recycled wood panels, eco-friendly flooring, and zero use of VOC (Volatile Organic Compound) paints. We will fill our facility with Energy Star qualified equipment and compact fluorescent lighting that produces 75 percent less energy and heat. Clients can also enjoy unique creations like crispy Thai trout tacos, original vegan Championburgers, or mango-guava fruit shakes. Rooftop restaurant and Lounge takes flavor seriously, backing up its meals and drinks with a 100% Taste Guarantee. If you don't like your meal or drink they will happily whip you up something else or give you your money back. Rooftop Restaurant and Lounge serves Certified Humane, hormone-free meat and prepares their meals with only 100 percent organic ingredients. A 100 percent organic menu also offers tempting sandwiches, desserts, beer, and wine. Rather than using cheaper ingredients, the company splurges a little to buy quality foods that are tastier and more nutritious.

Rooftop Restaurant and Lounge also offsets 100 percent of their energy use by purchasing certificates for renewable wind power. Besides constructing their building out of recycled materials, Rooftop Restaurant and Lounge still bases its business on integrity. Rooftop Restaurant and Lounge pays their employees fair wages and benefits. By going green, restaurants can often earn more green.

Chapter 3

What is the intended form of ownership?

Rooftop Restaurant and Lounge is a sole-proprietorship business owned in majority by its founder and president Kevin Lentz. The owner is also personally responsible for all debts and liabilities incurred by the business. A sole proprietor can own the business for any duration of time and sell it when he or she sees fit. As owner, a sole proprietor can even pass a business down to his or her heirs. A sole proprietor has complete control and decision-making power over the business. A sole proprietor has minimal start up legal fees and NO corporate tax payments. Sole proprietors receive all income generated by the business to keep or reinvest. The owner pays taxes on income from the business as part of his or her personal income tax payments. All responsibilities and business decisions fall on the shoulders of the sole proprietor. The sole proprietor of the business can be held personally liable for the debts and obligations of the business. Additionally, this risk extends to any liabilities incurred as a result of acts committed by employees of the company. Most sole proprietors rely on loans and personal assets to initially finance their business. Rooftop Restaurant and Lounge will choose to incorporate once the business has started to grow.

Chapter 4

Assuming Rooftop Restaurant and Lounge will have international operations:

Rooftop Restaurant and Lounge will have a second location in Cancun, Mexico located in the heart of Cancun’s Hotel Zone. At this location Rooftop Restaurant and Lounge will have exquisite Mexican decor and outstanding Mexican cuisine.

There are multitude of different kinds of organizational structures in international business for instance, one particular structure may require a substantially different plan of coordinating the activities of any given individual or organization.

Independent Agent:

An independent agent can be defined as an international individual or company who works with an exporter to represent the organization in question best interests in an international destination. Often these agents will take on the roles of being a sales representative. They offer the exporters goods, obtain payments by the purchaser, and as well work to ensure that the exporter’s clients are absolutely satisfied with the goods received. These agents will often have a wide variety of clients or firms who often do not specialize in any specified product or market. For example, Levi Strauss employs agents all across the world specifically in small countries found within these continents, South America, Africa, and Asia.

Licensing arrangement:

A licensing arrangement can be defined as an agreement in which an owner of a particular good will allow another company to manufacture sell and or market this good or service for a fee and or royalty. These companies will often grant interested parties or businesses in foreign destination exclusive rights to produce and or supply their goods in that particular market. The exporter will receive royalties as well any associated fees. These royalties will usually be determined as a percentage of the licensee's total revenues.

Branch offices:

A branch office can be defined as a place in which an exporting company will establish themselves within a foreign nation in order to offer their products more effectively to that foreign market. In most cases exporting firms will just employ current top managers within their organization and will send these managers over to this foreign destination to establish a new branch office. This branch office will act to provide this organization with a greater public image. It is believed that consumers will feel more confident about any particular company's product or service.

Strategic alliance:

A strategic alliance is where a company in which two or more individuals or businesses will merge their resources together in order to tackle a specified, mutually beneficial project. Both parties will agree to participate equally in investing resources into this new venture thus forming the alliance.

Out of all the International organizational structures to choose from, Rooftop Restaurant and Lounge in Cancun, Mexico will be a branch office. This business model is treated as an extension of its parent company which means that it should only conduct the activities performed by the main office in Orland Park, Illinois. Having a branch office provides several advantages to any foreign company including the ability to conduct business in Mexico, explore more business opportunities and directly interact with its local distributors and agents.

While this business model has several advantages, foreign companies should realize that there are some arrangements and requirements that may not be beneficial on their part. For example, foreign companies do not enjoy limited liability which means that they are responsible for all the losses and debts of their branch office which is considered as their legal extension.

Another disadvantage is that a branch office, being a non-resident business entity, is not eligible for local tax benefits and exemptions. Lastly, this business model is prohibited to engage in business activities that are not performed by its parent company.

Chapter 5

Mission Statement:

Rooftop Restaurant and Lounge is a business that envelopes fine dining of unique healthy taste and an excellent rooftop atmosphere. The mission is not only to have great tasting food, but have efficient and friendly service. Our dining environment is not only welcoming and sophisticated, it is unique in design, with glass ceilings and windows on almost all sides of the rooftop. After dining in, customers can enjoy the outdoor terrace and garden views. We concentrate on customer satisfaction and quality food that is always fresh and 100 percent organic. We want the Rooftop Restaurant and Lounge to be the place people can enjoy a tasty, healthy meal and meet new friends.

It is our goal to provide a great work environment and treat employees with dignity and respect. Rooftop Restaurant and Lounge wants to build lasting relationships with the guests, contribute positively to communities and our environment. Rooftop Restaurant and Lounge recognizes that profitability is key to our future success .

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