Creating a business in the food industry involves equipping a place where consumers can try the products on offer. Any restaurant is a complex system of different rooms, each furnished and equipped with the necessary techniques depending on the purpose. Anat Apter, the entrepreneur in the case study, used the factor of production, such as capital, to open a restaurant. Anat Apter needed to buy ingredients as well as packaging for the finished product. The case did not mention that she hired employees to start her business, which may indicate that she initially worked at the trailer herself. However, with the opening of the new locations, employees had to be hired (Erasmus et al., 2019). Since product quality was Anat’s first priority, it can be assumed that she employed only highly qualified workers. Thus, labor was an essential factor in the creation of the business.
It is not mentioned in the case, but it can be supposed that Anat used information as a production factor. The businesswoman promoted her services using a variety of resources. It should be noted that no successful business can function without advertising (Erasmus et al., 2019). Most likely, Anat used Internet advertising, banners, and other equally effective ways to promote her services. Indeed, she needed financial resources to do so; however, given how successful the project was, it can be assumed that there were no problems with financing.
The most crucial factor in production would be Anat’s entrepreneurial ability, which was evident in how she organized her business which brought her a significant income. It should be noted that entrepreneurial ability is the kind of economic resource that makes the most productive use of all other factors (Erasmus et al., 2019). It includes the moral, psychological and professional characteristics of a person. Anat was able to show herself as a leader and an entrepreneur who is not afraid of difficulties.
One of the opportunities presented by the move from the market to Sandton City was to win new customers. A new city means new customers who have not tried a woman’s product yet. It is easy to get them interested with various promotions and unique offers. The population of the city Anat moved to was larger than where she originally sold shawarma, which means that with the relocation, the number of customers has increased. Moreover, the tastes of the new town residents may be different from those of the people from the market. This means that there is an opportunity for the manufacturer to change the concept of the product by making it more attractive and unusual. Thus, the move enables one to attract new customers and modify the idea of the company.
However, undoubtedly, such a relocation, which was made by a businesswoman, carries with it a lot of threats. For example, a big city means that there are many competitors. In addition, the tastes of the locals may be quite odd, so they will not want to try Anat’s products. In a big city, costs may be higher than in a small one — rent and equipment will cost more. In addition, it will be necessary to look for new suppliers, which is always a long and complicated process. In addition to suppliers, it will be necessary to find new employees who are motivated to demonstrate the highest service to customers. Regarding new customers, it should be noted that the ultimate goal is to get their loyalty, which takes time and effort. All these difficulties are not a reason to refuse the development of new markets but must be carefully evaluated.
In terms of technical and economic equipment, the managers of each company have to take into account the number of resources they have at one stage or another. When Anat first started, she certainly did not have the opportunity to open several outlets at once because that would have been a significant risk. Instead, she had to save on logistics, buy cheaper equipment and hire employees willing to accept lower wages. Over time, however, Anat’s capital increased, which meant she could afford newer technical equipment.
Remember that one of the most important points in building a business is to assess the financial viability of the project. Before one goes to a new stage and makes an expansion, it is necessary to analyze all the external and internal factors carefully (Erasmus et al., 2019). A business plan should indicate ways to optimize economic activity, the risks to the company, and the payback period (Erasmus et al., 2019). For example, it is impossible to imagine Anat entering the market with the desire to create a franchise from scratch — it would be too expensive and dangerous. Her decision to start with a small food trailer was reasonable because the businesswoman did not have significant resources at the beginning. Anat’s company needed to start generating considerable revenue before she could open new outlets. For a successful business, it is necessary to assess all the factors of production, possible risks, and ways to minimize them.
Reference List
Erasmus, B. et al. (2019). Introduction to business management. Cape Town: South Africa Oxford University Press.