OrganicoRestaurant Organico is a medium-sized organic restaurant, to be opened in Lebanon, a developing country in the Middle East, as a single-unit as the restaurant

is a start-up business. Organico provides organic food in a creative way-Lebanese tasted. Knowing that determining a strategic location is essential for a start-up business, Organico will be located in a primary city Hamra-Beirut, Lebanon. This location is chosen for its high population, inclusion of two primary universities (1) Lebanese American University (2) American University of Beirut, is a financial and entertainment center, with significant number of financial institutions, in addition to restaurants and pubs. The lease of the location is $2000 per month. Organico looks forward to maintaining financial success which will be maintained through offering high-quality, extremely tasty, organic food with a Lebanese twist; let aside the high quality service to attain long-term profitable relationships with customers. The ownership of Organico, noticing the start-up approach of the business, will be a sole proprietorship, owned solely by the founders of the restaurant. I, XXXX YYYYY, am the founder of the business, along with my friend AAA BBBB. I will focus on the financial matters, and he will be concerned with personal dilemmas. Considering the start-up costs, the restaurant rent will be allocated $2,000 on monthly basis as mentioned previously. The restaurant is set to start getting profits by the end of the first year; hence Organico will become profitable by the second year of its launching. The chosen store for rent is already equipped with restaurant facilities and equipments needed; hence the total capital which will be used to tart Organico is $40,000, maintained from personal savings, in addition to $100,000 to be maintained as a bank-loan. Further, it is essential to highlight the offerings of Organico. Organico will provide its customers a very simple menu, in which few appetizers will stay unchanged and the rest of the menu will be changed on daily basis, in addition to the recommendation of the restaurants Chef which is expected to have the lions share in the orderings, thus leading to higher efficiency and reduction of wastes in terms of supply chain. In addition to the offered products, customers will enjoy Organicos interior Lebanese village artwork, healthy appeal with a Lebanese cultural twist. Organico Activities The companys activities are allocated to the following. Suppliers Noting that the major characteristics of this restaurant are that it is an Organic restaurant, with a Lebanese twist, thus the ingredients of food are definitely organic. Accordingly, we are ecologically conscious in settling our supply chains and determining our suppliers. Instead of

OrganicoRestaurant maintaining ingredients from retailers, it was found more cost-efficient and trustworthy to purchase the products directly from farmers in West Bekaa-Lebanon, who are extremely trusted on organic plants and food. This will emphasize our commitment to providing our customers with high-quality organic food. Main competitors There is no significant competition in the market. Ofcourse, there is a strong competition from idirect competitors, like Italian restaurants (Napolitana) Lebanese restaurants (Layla, Warda, Babel)Asian-food cuisines (Kampai, Scoozy) in addition to cooking at home and fast food chains (KFC, Pizza Hut, McDonalds, Burger King).Yet, stiff direct competition does not exist on Organico, as the degree of rivalry between competitors in the organic food industry in Lebanon is extremely low to negligible. Two organic food restaurants are found in Lebanon. The first is Brisk, located in Hamra, based on natural self-served concept, serving international and organic food, with prices ranging between $10 and $15 per person. The second competitor is Tawlet, located in Mar Mikhael, serving homemade and organic Lebanese food, with prices ranging between $33 and $49.1 Yet, those two restaurants have low-market share and Organico will be able to target customers as a high-end high-quality and extremely healthy organic restaurant. Customer Base description In order to address the customer base properly, it is found useful to apply a market segmentation approach. In it is essential to be aware that, as founders of Organico, have noticeable connections and public relations in the Lebanese context, basically in Hamra city in Beirut, hence, we think that we are to a certain satisfying extent, aware of the market and customers perceptions. The market segments which are found profitable to target here and term as a customer base are the following: 1. Young Healthy Couples: those can be university students, who are interested in visiting Organico as it will design a critical atmosphere which will motivate couples to come and enjoy. Organico wont be a social-networking location, it is more oriented towards a calm place where couples would visit, rather than friends in large groups. Those young healthy couples are educated, have a balanced body and are health-conscious, environmentalfriendly are not oriented towards drinks that much. 2. Dieting people: this segment includes both men and women who are looking for highquality, tasty low-fat organic meals. As Lebanese people are becoming highly concerned with their weight and health-conscious, people filling this category would age between 18-64.

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OrganicoRestaurant The customer base of Organico is expected to grow over time as shown in Table 1 Table 1 Maket Analysis Customer Base Young Healthy Couples Dieting People Total

Growth % 15% 25% 40%

2013 2014 2015 100,000 115000 130000 120,000 150000 180000 220,000 265,000 310,000

Strategy Focus Organicos Vision Vision To become the most desired organic restaurant in Lebanon The companys vision is based on providing the customer base with the best quality organic meals to enjoy the organic food taste and benefits, in addition to an enjoyable experience of healthy environment which reflects real nutrition. Organico products and services will contribute to developind health-conscious customers in the Lebanese society which supports the growth of new food values in the country. The vision will be also emphasized through selling the products in the most suitable prices to make them affordable to the Lebanese public. The restaurant will become the market leader in the organic food sector in Lebanon as it will be the most desirable through developing organic profitable long-term relationship with our core customers. The company will be a pioneer in providing organic food at affordable prices, with Lebanese twist and will become a prominent brand within the country.

Mission We provide our customers their natural choice, with a Lebanese twist, at affordable prices! Organico brings together a fascinating atmosphere with extremely tasty and high-quality organic meals. Through focusing on our customers satisfaction and retention, Organico focuses on developing its employees skills and motivation to meet our customers needs. Organico is your place to enjoy an environmental-friendly and healthy restaurant!

Strategic Objectives 1. Become the market leader in the organic food sector in Lebanon

OrganicoRestaurant 2. Become profitable in the second year of operation, with profit increasing 10% on annual basis after 2013. 3. Increase the sales revenue from $350,000 in first year to $500,000 in the 2nd year 4. Open new units in Downtown, Bremana, Jbeil and Saida which willenhance our expansion in the Lebanese market. Implementation The culture to be implemented in Organico will accumulates the values and practices to be shared by founders, managers and employees, and which will in turn affect the customers. Hence, the culture which will support the development and implementation of the companys strategic vision, mission and objectives will be characterized by the following criteria Employee commitment Empowerment and rewarding of employees based on their performance Integrity and trust Effective leadership Development of employees skills Effective two-way communication Adaptability Innovation and creativity Focus on customer satisfaction Common and clear mission and vision

Such a culture will help the company in meeting its strategic goal as it makes the employees aware of the companys objectives and strategic vision, in addition to enhancing their capabilities and potential to meet organizational goals, by putting their self-achievements in line with organizational purpose. Such a culture will furnish the ground for fewer turnovers, higher employee and customer satisfaction, and adaptability to changing customer preferences and needs which will assist Organico in becoming profitable, and the market leader in the organic food sector in Lebanon. This culture cannot be implemented and emphasized without a leader. Being the companys founder, and having a strong belief in my idea and plan, I will focus on learning how to become an effective leader through related courses and seminars and try to implement my knowledge and my dream among my staff within the restaurant. Considering the strong passion in this sector, I will try to motivate employees and do the best to emphasize the culture characterized by integrity, effective communication and recognition as I strongly believe that Organico should be healthy not only in terms of food but also in terms of culture and working environment.

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Scenario Planning Analysis The market environment evolution be be progressively assessed through effective marketing research, questionnaires to be filled by customers, secondary data collected and such criteria.

Table 2 Base-Case Scenario Customer Base Young Healthy Couples Dieting People Total

Growth % 15% 25% 40%

2013 2014 2015 100,000 115000 130000 120,000 150000 180000 220,000 265,000 310,000

Table 3 Best Case Scenario Customer Base Young Healthy Couples Dieting People Total

Percentage Growth 25% 35%

2013 120,000 150,000 270,000

2014 150000 202500 352,500

2015 180000 255000 435,000

Table 4 Worst Case Scenario Customer Base Young Healthy Couples Dieting People Total Percentage Growth 2% 2% 2013 50,000 100,000 150,000 2014 51000 102000 153,000 2015 52000 104000 156,000

OrganicoRestaurant HR Recruitment/Policies The HR structure and wages are classified in Table 5. Employees will be recruited based on their qualifications being in line with the job requirements. Their motivation will be maintained through recognition of their achievements, verbal rewarding, encouragement and motivation, in addition to financial rewarding allocated to increasing their compensation or promotion in their position. Table 5 HR Plan One Floor Manager One Hostess two Chef Two Cleanning Staff 5 Waiters Others Total Payroll 2013 2014 2015

$15,000 $7,000 $13,000 $7,000 $30,000 $20,000 $92,000

$16,500 $7,700 $14,300 $7,700 $33,000 $22,000 $101,200

$18,150 $8,470 $15,730 $8,470 $36,300 $24,200 $111,320

Organico Organigram

Founders

FloorManager

2 Chefs

5 Waiters

2 Cleaning Staff

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\Control The companys strategy implementation will be progressively assess through market research, questionnaires to see the opinions of customers and their extent of satisfaction with food quality and service. In addition, critical emphasis will be conducted on the quality of the food by making sure our products meet the Ministry of Health requirements and by asking for progressive inspections to check our suppliers and our products integrity and true organic characteristic. In addition, in order to control for costs allocated to inventory, employees, food and so on, an accounting system will be implemented to check daily activities and restaurant operations. A Basic Balance Scorecard is a management system which will allow the company to, track, follow and assess the achievement of its critical strategic objectives. This framework is based on 4 dimension as follows. This framework will be used to assess Organicos performance on quarterly basis, in order to makes sure the company is on the right track and is going to meet its strategic objectives.

Customer Satisfaction

Financial Performance

Organico Strategic Objectives

Internal Business Process

employees' knowledge, education and development

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Profit & Loss Projection

Profit & Loss Projection 2013 Sales Revenue Costs of Goods Sold Gross Margin Expenses Salaries MKT Expenses Additional Equipment Taxes Total Expenses Profit Befor Int&Tx EBITDA Intr Exp Taxes Net Profit $92,000 $10,000 2000 10,000 $114,000 $236,000 $236,000 9,000 4,000 $223,000 101,200 $11,000 2500 11,000 125,700 $254,300 $254,300 8,000 5,000 $241,300 111,320 $12,100 3000 12,000 138,420 $266,580 $266,580 7,000 6,000 $253,580 $400,000 50,000 $350,000 2014 $450,000 70,000 $380,000 2015 500,000 95,000 $405,000