Business Idea Assignment On Organic Food Truck

Question

Task: The objective of this individual assessment submission is to learn how to develop your own business idea, complemented by research and observational insights that detail why the need is compelling. Please submit a 1500-word business report of your idea, a detailed business model (BM) canvas, discussion of the interrelationships among the BM components that are essential to success, critical risks and assumptions, and overall feasibility. The business model canvas must be discussed in the report and included as an appendix.
The assessment criteria are detailed below.
Assessment Criteria:
1. Effective explanation of the customer/market problem that needs solving and/or the reason the innovation is required. (15%)
2. Persuasive argument of the customer/client benefits to be generated by the idea (10%)
3. Discussion of the proposed business model (15%)
4. Identification and discussion of the key interrelationships in the BM that will support success of the idea (10%)
5. Critical success factors to be managed during execution of the idea (15%)
6. Identification of critical risks and assumptions (10%)
7. Evaluation of the overall feasibility of the idea (15%)
8. Quality of written submission, minimum 6 peer-reviewed journals, and APA referencing format (10%).

Answer

Executive Summary
This report on business idea assignment focuses on the business idea of using an organic food truck for the purpose of offering healthy food to the clients. With the increase in the health risks due to the conventional food products, there is a need for businesses to focus on organic food for protecting the health of the customers. This is the main reason behind this innovation as this idea will provide healthy and tasty food option to the customers. This report on business idea assignment further provides that all the components of the business model are interrelated. It also identified that food quality, time, adequate finds and resources and time are the critical success factors which are required to be managed by the business. The business idea assignment also highlighted that increase in competition and price fluctuations are some of the critical risks associated with the business. However, overall the idea has a high potential of success in the market.

Introduction
The popularity of organic foods is increasing day by day as people are becoming more aware regarding their benefits. The production of organic foods is undertaken without utilizing antibiotics, artificial chemicals or genetically modified organisms and therefore, is healthier than the conventional food. This report on business idea assignment is based on the business idea of using an organic food truck for offering healthy food to the customers. In this business idea assignment, the study highlights the customer problems, benefits of the idea, proposed business model and discusses the interrelationships among business model components, risks and the overall feasibility of the idea.

Customer/Market Problem and Reason behind this Innovation
The consumers are suffering from the problems caused by the use of conventional food which possess chemical residues from herbicides, pesticides and other chemicals utilized during its cultivation. Health risks like nausea, dizziness, diarrhoea, etc. are caused as a result of pesticides and chemicals consumed in food. However, the market is full of conventional food items like vegetables and fruits which, in turn, are bringing adverse health consequences for the consumers. Therefore, the main reason behind this innovation is to provide healthy snack options to the consumers through the use of organic food items. Mostly fast food is consumed by the teens and youth at the food trucks and this innovation will allow the business to provide fast food options which are made out of organic produce thereby benefitting the health of the consumers. Organic food is offered in the restaurant at a higher costs and this business idea will provide the benefit of organic food to its customers at much lower prices due to its lower operating costs. Also, this idea will be capable of attracting the customers as the menu of the organic food truck will be different from others and will offer great quality and fresh taste to them.

Benefits
The most important benefit outlined in the present business idea assignment which will be generated through this idea is that the customers will be able to enjoy snacks that are healthy. Fast food is in trend among the youth and therefore, they cannot resist without its consumption. The use of organic food items for preparing the fast food will benefit the consumers as it will enhance its taste and quality. Not only this, the expensive organic food snacks will be made available to the consumers at the same costs at which snacks are usually offered at the food truck which is another benefits for the customers. Also, consumers at different locations will get easy accessibility of the unique menu of this organic food truck as it is on wheels. It can therefore, be argued on this business idea assignment that the consumers will get to experience something new which is healthy as well as tasty along with being unique and affordable (Tleis, Callieris, Al Bitar, Roma & Thøgersen, 2019).

Proposed Business Model
The nine building blocks of the business model canvas as provided by Osterwalder & Pigneur has been discussed below within this business idea assignment in case of the business idea of an organic food truck. The business model canvas has been included in the appendix.

Key Partners- Organic food suppliers, kitchen equipment suppliers, employees like dishwashers and cooks, consultants, truck theme designers, investors and customers are the key partners in the organic food truck business.

Key Activities- The key activities of the business will involve researching about the best target market of the organic food truck along with obtaining organic supplies at reasonable costs, managing operations, hiring employees, attracting customers through marketing and providing effective customer service (Sudrajat, Rahman, Guzman, Ricky & Sasongko, 2018).

Value Propositions- This business offers value to its customers by offering organic food snacks at affordable prices which is healthy as well as tasty without charging extra costs from the customers like in the case of restaurants.

Customer Relationships- The relationship with the customers will be established through considering their feedbacks in the menu and offering necessary information to them regarding the benefits of the organic food snacks. The business will interact with the customers through social media, website and e-mails and will provide outstanding service for establishing strong relationship (Septianto, Kemper & Paramita, 2019).

Customer Segments- The business will target both males and females between 15- 35 years of age who prefer fast food over healthy alternatives.
Key Resources- The key resources involved will be employees, financial resources, physical resources like food truck and material such as food supplies.

Channels- The business will be promoted over various channels like newspapers, radio, social media, website, search engine optimization, pamphlets, etc.

Cost Structures- Purchase of truck, its retrofitting, business permits, fuel and maintenance, kitchen equipment purchases, advertisement, food supplies and employee expenses are some of the major cost drivers in this business idea (Holmes, et. al. 2018).
Revenue Streams- Revenue will be generated by the business through payment received for the meals (pay per meal). Monthly plans will also be provided for generating additional revenue.

Key Interrelationships
The interrelationships existing among the components of business model plays a major role in the success of the idea and has been discussed below in this business idea assignment:

The value proposition of organic food truck business is unique and therefore is capable of attracting the defined customer segments towards the business as they are the ones who are most fond of fast food and snacks. Also, attracting the customers towards the business is not enough and it is essential to establish strong relationship with them. This will be ensured by the business by providing fresh and quality food with outstanding customer services and will further assist in increasing the revenue streams. However, the customers can be made aware regarding the business only through channels like social media, website, etc.

Also, the information provided in this business idea assignment mentions that there is an interrelation between the key resources, partners, activities and cost structures of the model. The key resources and the key partners will assist in the performance of key activities of the business. Moreover, the costs will be incurred when such activities will be performed (Umar, Sasongko, Widyastuti & Christanti, 2020).

Critical Success Factors
Food Quality- Food quality is the prime factor which will turn the business idea into success. If the food quality or taste will be poor then this unique idea will become a failure and therefore, is required to be managed at all times.

Costs- Since the organic food suppliers are costlier as compared to the conventional food, it should be ensured that the business obtains the supplies from a cost effective suppliers. This is necessary for keeping the ultimate prices low for the consumers. Otherwise, customers will prefer having expensive food at the restaurants and not at a food truck.

Sufficient Resources and Funds- The business is required to manage the adequacy of the funds such that all the operations can be performed smoothly. Also, adequate resources should be available at all times such that the customers can be offered all the dishes listed in the menu.

Time- The business is required to manage time while servicing the customers. Otherwise, the customers will switch over to some other fast food outlet as they will not prefer waiting for a longer time (Long, Looijen & Blok, 2018).

What are the critical risks and assumptions basis the scenario of business idea assignment?
The competition is increasing in the market at a rapid pace and creating a risk for the business idea. The restaurants and the fast food outlets are coming up with innovative themes, discounts, and dishes and are able to attract the customers towards their business. Also, the organic food truck needs to select its market consciously. If the customers of the area are unwilling to pay the prices for organic food then it will create a risk for the business. The analysis on the case of business idea assignment further provided that there are price fluctuations in the organic food supplies and therefore, higher prices at the initial stages can create risk for the success of the business.

However, the idea is based on the assumption that the market requires a new business which can offer organic food snacks at affordable prices to the customers since the restaurants charge huge prices for such dishes. It is further assumed that this healthy food option will be able to attract the customers which, in turn, will assist in overpowering the involved risks.

Feasibility
The overall evaluation of the business idea of organic food truck illustrated herein business idea assignment provides that it is capable of providing the health benefits to the consumers along with fulfilling their expectation of a tasty snack. This in turn will offer competitive advantage to the business which will benefit in the success of the idea. People are now aware regarding the benefits of organic food and therefore, this idea based on organic food can increase the profits of the business. However, the business will suffer from risk as there are some already established competitors in the market (Hwang, 2016).

Fast food is very popular among the teens and youth and therefore, this healthy and tasty organic food truck has wide target market. Also, it will meet the needs of customers in different areas as it can make its own choice of location. The customers will be made aware regarding the business through channels like website, social media, radio, pamphlets etc. Such channels are capable of spreading information at a large pace and will bring positive results for the organic food truck (Ana, Jose?, Garci?a-Sabater & Cristo?bal, 2018). Also, adequate capital can be easily arranged by the founder for the business; however, they have only limited experience and skills required for this business. A team can be engaged for this purpose which can fulfil all the operations as per the requirement. Therefore, the overall evaluation done in the segments of business idea assignment provides that the idea has high potential of success in the market.

Conclusion
Therefore, it can be concluded from the above analysis on business idea assignment that the idea of using organic food truck for providing healthy food options to the target market is feasible. The consumers are now aware regarding the benefits organic food and therefore, this business has a big possibility of success. Also, the findings obtained in this business idea assignment signifies that the craze for fast food among teens and youth will further drive them towards the organic food truck as it will offer healthy and tasty snacks that can provide ultimate satisfaction.

References
Ana, G. R., Jose? P., Garci?a-Sabater, & Cristo?bal M. I. (2018). Triple bottom-line business model. case study on the organic food retailing. Wpom : Working Papers on Operations Management, 9(1), 30–52. 

Holmes, M. R., Dodds, R., Deen, G., Lubana, A., Munson, J., & Quigley, S. (2018). Local and organic food on wheels: exploring the use of local and organic food in the food truck industry. business idea assignment Journal of Foodservice Business Research, 21(5), 493-510.

Hwang, J. (2016). Organic food as self-presentation: the role of psychological motivation in older consumers' purchase intention of organic food. Journal of Retailing and Consumer Services, 28, 281–287.

Long, T. B., Looijen, A., & Blok, V. (2018). Critical success factors for the transition to business models for sustainability in the food and beverage industry in the netherlands. Journal of Cleaner Production, 175, 82–95.

Septianto, F., Kemper, J., & Paramita, W. (2019). The role of imagery in promoting organic food. Journal of Business Research, 101, 104–115.

Sudrajat, J., Rahman, M. A., Guzman, G. A., Ricky, M. Y., & Sasongko, A. H. (2018). Innovation of entrepreneurship learning with business model canvas game. International Journal of Entrepreneurship, 22(3).

Tleis, M., Callieris, R., Al Bitar, L., Roma, R., & Thøgersen, J. (2019). What drives organic food consumption in lebanon? International Journal of Nonprofit and Voluntary Sector Marketing, 24(4).

Umar, A., Sasongko, A. H., Widyastuti, I. T., & Christanti, Y. (2020). Improving the social enterprise-based business performance from the aspect of social business model canvas. Business idea assignment International Journal of Entrepreneurship, 24(1).

Appendix
Business Model Canvas