Executive summary
This report is about establishment of a diet food centre within the institution of higher learning. Several complications and shortcomings are associated with provision of foodstuff within various market segments. Most institutions have raised the alarm on such unhealthy kinds of foodstuff being supplied within their territories.
The same concern has been raised by a majority of consumers who happen to be students studying within these localities. This research begins with introduction which addresses the issues by providing an elaborate plan through which such instances can be avoided.
The research was done based on students’ conditions at the University of California where much attention was paid to unhealthy food stuff sold that contributed to overweight and obesity. Further, there is a methodology process based on the decision making which is one of the most important tools used in determining necessities within any Institution.
The findings of the research are then underlined before making analysis and conclusion. The article agrees with the literature researched and analyzed by asserting that health of an institution comprises of individual food products and product lines, as well as channels through which they are supplied.
At the same time, it points to the importance of institution’s prior determination of its food suppliers based on the price and health issues. According to the article, the resources should be utilized with the highest level of efficiency in order to satisfy buyer needs, as well as cater for the current demand in the market and, at the same time, provide appropriate satisfaction. All these explanations emphasize the importance of having well managed product mix.
Introduction
The University of California is one of the most recognized institutions of higher education in the world. Within the university campus, there are various sources through which students get access to their food. First of all, it is the university’s small cafeteria that provides a limited choices of sandwiches, croissants, cakes, hot and cold beverages most of which appear to be unhealthy for student fraternity and University staff.
Another source of food is slightly larger cafeteria which is considered to provide a wide choice of meals in most cases full of carbohydrates and fats such as French fries, fried chicken, greasy barbequed meat, and burgers that are also very unhealthy.
Then there are several vending machines scattered all over the university campus providing students with variety of chocolate bars, potato chips, nuts, and juices considered to be extremely unhealthy, especially when consumed on a daily basis. Such sources of food limit students and, at the same time, force them to consume unhealthy foodstuff based on availability (Dalton, 2004).
Objective
This justification report provides evidence on the justification of the idea of starting a diet food center at the University of California. This is done through showcasing the feasibility of the project and the benefits that the project, if implemented, would have to students’ health, and in financial terms including.
Benefits
Implementation of such a project provides numerous benefits to students. For example, those students who spend a lot of time studying in the library or participating in other activities would not have to travel long distances outside the university to find nutritious healthy food.
This time can be spent on the e academic activities during the semesters. Additionally, provision of several kinds of healthy delicious food encourages students to change their life styles hence providing them with the opportunity to enjoy healthy food.
At the same time, such a project would be beneficial to students already struggling with overweight and obesity cases since it gives them chance to continue with their dietary plans (Society for Nutrition Education, 2002).
Qualification of Personnel
Upon the project acceptance, the owner will be a senior finance student from the college of business studies. The project owner should be more than qualified to run the business since he must be a former student of the university where the project will be implemented.
The manager will be capable of keeping good financials of the shop, as well as identifying and satisfying any future needs of the students.
The manager will be assisted by qualified individual who took many business courses from the university, such as entrepreneurship and strategic management hence capable of assessing market needs as well as gaps, recognizing opportunities and, at the same time, attracting customers through marketing strategies and quality assurance.
There will also be provision for good leadership skills from the operators of the business.
Scope
This report is created with the purposes of shedding light on the benefits of establishing diet food center within the University, the need for such a project, literature supporting the idea, and provision of a complete plan to be used for the implementation of the business idea.
The report discusses various methods of the approach applied, preliminary financial projection requirements capable of sustaining the center, various facilities required, anticipated cost of the whole project, and at the same time, feasibility of the business idea and anticipated results. From the business point of view, the application of this project will generate significant financial success capable of satisfying students’ needs.
Review of the Literature
Collins et al., (2000), performed a study for the purposes of testing the effects of students’ eating habits and physical activities on their general health. The findings of the study concluded that in the main, the types of food offered in school cafeteria have a direct impact on students’ dietary habits hence encouraging project initiatives geared to healthy food provision.
However, some Universities like Seattle University have different experiences with having diet food shops within the campus, and from student’s personal experiences; diet food shop within university campuses provides a successful business idea.
Consequently, food offered at diet shops is usually delicious and healthy, and most students would buy their lunches there.
The demand for the diet shops is usually very high hence it is usually not available already early in the day considering that such food is expensive in comparison to other venders within the university campus and yet students prefer consuming it because of good taste and health reasons.
Limitations and Contingencies
In the first instance, the approval from the university’s administration is required based on vast experience. However, the owner of the project may have limited experience creating rare chances of obtaining full permission from university administration guaranteeing operation.
On the other hand, the university is currently has contract with other foods suppliers holding the right to be sole food providers of the university. This means that applying this idea would have to wait until the contract with other suppliers ends and a new contract is drafted.
Problem statement
Various reports indicate that students from the University of California require such a project since the majority has busy schedules hence leading them to consume unhealthy foodstuff offered in the university. The issue has led to rampant increase of obesity cases amongst students.
This can be proved based on the fact that most students come to the university in healthy physiques which suddenly changes with time.
After a semester of consuming available foodstuff within the university campus, there is notable increase in the number of those gaining weight attributed to lack of healthy and tasty food choices offered within the university campus (Connecticut State Dept. of Education, 2006).
Method used
This study utilized a number of sources which include journal articles revealing the effect of healthy food on cognitive abilities of students. Such revelation from journal articles confirms the need of establishing a diet shop within the University. At the same time, a survey attached in the appendix, proves this fact of the high acceptance of this idea amongst students.
Findings
The survey results were recorded as shown below, however, students who participated in this survey have been to the university for at least two years.
- 71% of surveyed students reported that they have gained weight since they joined the University campus.
- 64% of surveyed students reported on the fact that one of the major reasons for gaining weight was partly attributed to the food offered within the university.
- 85% of surveyed students expressed their interest in purchasing their food from the diet food shop including even students who did not gain extra weight.
- 42.9% of those interested asserted on their desire to purchase food from the diet shop on a daily basis while 28% gave assurance of buying food from the diet shop at least three days a week.
- 85% of surveyed students responded positively on the question concerning whether they are ready to pay more for healthier meals that will be offered in the shop, responses were; 50% for one to three USD, 14.3% for four to six USD and 35.7% for seven to ten USD. Such conclusive result when combined with the previous research reveals the kind of desire for quality food from students hence the potential for financial success from the shop (Dalton, 2004).
Analysis
Analysis of food costs and level of health standards provides required basis for planning and financial sources. This is necessary since it assists in allocation of required finances capable of sustaining such a project.
Then there is determination of various costs such as overhead, variable and fixed costs which are ultimately compared to industry’s benchmark. This helps in the adjustment of operational costs based on activity-based costing which is employed in the process of allocating costs to different food stuff.
As it has been discussed, the article provides for various processes used in the analysis of diet food shops. This is a responsibility of top management since they have capability of analyzing areas of opportunity within the entire market.
Such activities require detailed analysis based on business attractiveness, as well as nature of growth trend within food industry. Activity-based costing (ABC) system has been used in the process of overhauling costing procedures as well as further organization of operating processes. However, ABC system ignores some very important aspects such as resource based constraints.
The other concern involves the business ability to exploit opportunities based on organization’s potential and market positioning (Dalton, 2004). High opportunity levels and potential to exploit food and beverage market ensures introduction of new business ventures, as well as existence of future growth.
Strong market position, on the other hand, enables maintenance of high positions for profitability purposes. At the same time, weak positioning of the project should be avoided in the process of making decisions on food varieties to be provided. Such processes and concepts are necessary since they enable adequate evaluation on the potential for new project within learning institutions.
Conclusion
There exist a variety of choices of product-mix majorly based on certain setup cost formulations. Such concepts as explained in the article demonstrate available potential for incorrect business decision based on Theory of Constraint.
The process involves identification of product mix as optimal choice and eventually incorporating activity-based costing within the decision making process hence assisting in setting up of variable total setup costs.
However, the article reveals that at times establishing diet food shop on activity-based costing may be incorrect based on the nature of assumptions made, especially on proportionality of overall activity costs.
The article enables clear understanding on the actual process undertaken within businesses in the process of decision making on products and pricing. It unveils the fact that proper mix of products may lead towards increase in sales through provision of products capable of meeting consumer needs and demands.
On the other hand, the example given in the article shows a possibility of such business competing favorably within the food and beverage market. At the same time, the act of optimal mix of products enables provision and advertisement of single product to bigger percentage of the market share.
At the same time, it brings the aspect that top management is endowed with responsibility of determining mix of product and pricing. However, activity-based costing majorly depends on assumptions made on proportional cost structures without involvement of resource constraints.
Owing to such limitations, activity-based costing is not considered a serious management decision tool. This can be improvised by integrating activity based costing with Theory of Constraints as well as method of mixed-integer programming. In the same context, ABC is considered to provide only short-term solutions hence not appropriate for strategic decision-making.
References
Collins, J., Devereaux, R.S., Davis, M, & Wechsler, H. (2000). Preventive medicine. Retrieved from https://www.sciencedirect.com/
Connecticut State Dept. of Education. (2006). Action Guide for School Nutrition And Physical Activity Policies. Web.
Dalton, S. (2004).Our overweight children: What parents, schools, and Communities can do to control the fatness epidemic. Berkeley, Los Angeles, London: University of California Press.
Society for Nutrition Education. (2002). Guidelines for Childhood Obesity Prevention Programs: Promoting Healthy Weight in Children. Journal of nutrition education and behaviour, 35 (1), 1-3