Cafe vs Fine Dining Restaurant

You are the head of a newly established economics consultancy and have been contacted by Ling. Ling has inherited some money and wants to invest it on somewhere. Ling is thinking about two options; one is to open a budget-priced specialty cafe, the other is a premium fine dining restaurant in Singapore. Ling wants to receive advice about business decisions from the perspective of an Economist. Ling has 3 specific areas of concern that she needs you to address;

Assignment Task
A. Business Plan
Create a business plan for each of these options and attach it to your Assignment as an Appendix. You can choose your own business plan templates.

B. Equilibrium Analysis & Elasticity
You need to advise her on TWO factors which are likely to cause customer numbers (demand) to change for each of the business.
(You will need to explain the distinction between shifts & movements in the demand curve and show the relevance of demand elasticity and explain what happens to the equilibrium price and quantity in each market)
You need to show 2 different ways in which a fall in supply in a different market could lead to a change in for each of the businesses.
(You will need to provide relevant examples & diagrams in your answer, and show the relevance of elasticity, and explain what happens to the equilibrium price and quantity in each market)

C. SWOT analysis
Conduct a SWOT analysis on each of the options, and discuss strengths, weaknesses, opportunities and threats.

Get Perfectly Written Answers from Experts!!

Professional Singaporean Writers

All Subjects Answer

Plagiarism & AI Free

Managerial Economics Assignment Help

Answers to Above Question on Business Plan

Expert Answer: The two options available for investments to Ling includes opening a budget priced speciality cafe or to start a fine dining restaurant in Singapore. A business plan is created for both these two options and included in the appendix section. A brief summary of both these business plans is mentioned below:
1) Budget Prices Speciality Cafe: It is known as Ling’s Cafe and the target market will be students and young professionals who loves to drink coffee. The business is likely to cost $50000 as startup and it’s marketing will be under taken through social media, loyalty programs and discounts on multiple orders.
2) Premium fine dining restaurant: The restaurant will be known as Ling’s restaurant and the the target market would be the tourists, business professionals and ocassional diners. The restaurant will be a multi cuisine restaurant and the startup cost is expected to be $80000.
A detailed business plan is included in the appendix section for both these options.
Equilibrium analysis and elasticity:
There are many factors that can affect the demand for a particular product. In the given case scenario for two options available to Ling, the two important factors that can affect the customer demand are:
For Cafe: Increase in number of students participating in top universities in Singapore and rise in young urban population across the area.
For Restaurant: Increase in the number of tourists, and changing taste and preferences of customers driving them to use different cuisines offered by the restaurant.
To know how the movement in the demand or fall in supply would affect the given businesses, connect with our economics assignment help experts in Singapore.

Want a Full Worked Out Answer with References?

Submit Your Request Here