Organic and Natural Food Restaurants Research Paper

Organic and Natural Food Restaurants - Research Paper Example The business will measure the profit margin and rate of stock turnover as a way of evaluating the growth (Carmona, 2004). An indicator that the firm intends to use is the percentage in profit margin, as well as the number of consumers that the restaurant will command. Industry Maturity Sustainability of cash flow into the firm will act as a gauge, which measures the maturity of the firm. The firm expects to reach its maturity after the period of three years because it is a startup business. Since the product cycle of the restaurant would influence its maturity in the market, it intends to have a short product cycle. Another important factor that the business intends to consider in order to reduce its maturity age is the choice of products that it would introduce to the market. The business has forecasted its growth in the first year to be modest. In the second year, the restaurant will increase its stocks in response to market behavior. In the third year, it would stabilize its stock . The business anticipates its growth to follow the trends indicated in the graph below. Sensitivity to Economic Cycles The business intends to demonstrate sensitivity to the state of economy by conducting a survey on consumer trend in similar businesses before it rolls out its product. The knowledge of consumer economic status is crucial to the pricing strategy of the business. The prices of the business product determine the number of clients that the business would serve. Due to the sensitivity of this issue, the business will monitor consumer trends before introducing expensive products. Consumer behavior depends on geographical location and sociological influences. Consumers usually demonstrate negative or positive response to price changes, which would eventually influence the rate of stock flow (Anderson, 2008). Most businesses, which command large market share, are sensitive to the consumer behavior. The operation of the business in the city would make it handle a wide range of customers who are likely to project different product demand patterns. Highly demanded products would be a measure of how sensitive the business is to the immediate environment. Seasonality Product seasonality is crucial to the business success because it would influence customer retention of the business. The business intends to operate in all seasons; however, it would control its product supply during low seasons. The business target consumers demonstrate seasonal trends in buying behavior. The high season appears immediately after the consumers get their salaries or wages and the low season occurs during mid month. This seasonal trend would influence the sales of the restaurant. The business intends to characterize the high season with high product supply and reduce the product supply during low season. The same trend would also influence its pricing strategy in order to create a constant profit margin at the end of each month. The business innovation would be sensitive to s easonality. Changes in economic trends in the market might force the business to blend its products in response to this trend (Anderson, 2008). Technological Change The restaurant will use the internet technology to reach its customers. The Internet use is an option that the business intends to use in order to update its clients with the frequent changes in products and prices. Order placement and instant payment are some of the common trends that the business