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Small Business Management 5th Edition by Timothy Hatten
Edition 5ISBN: 978-0538453141Small Business Management 5th Edition by Timothy Hatten
Edition 5ISBN: 978-0538453141 Exercise 1
Everyone likes to eat…you love food…why not open a restaurant It may not be quite that easy. Kenny Lao, 30, knew he better be unique when he started his New York City Rickshaw Dumpling Bar in 2006. But Lao says, "If you have a strong concept and have your execution and operation strategies down pat, any time is a good time to open a restaurant-even now." Lao built his dumpling empire on six varieties of dumplings (including a chocolate dessert dumpling) and simple addons like Asian salad, noodle soup, and green-tea milkshakes. It takes approximately 2.5 minutes from order to delivery. Rickshaw sells about 1.4 million dumplings per year for $1.3 million in revenue.
Evaluate the business idea of Kenny Lao's business. Dumplings are his signature menu item on his cool website www.rickshawdumplings.com. If you were to venture into the restaurant business, what would be your signature item What would be your competitive advantage
Evaluate the business idea of Kenny Lao's business. Dumplings are his signature menu item on his cool website www.rickshawdumplings.com. If you were to venture into the restaurant business, what would be your signature item What would be your competitive advantage
Explanation
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Signature items:
Signature items are unique items that competitors do not sell, and which differentiate a company or a store from its competitor. The signature items are promoted and advertised both in stores and through various advertisements like print advertisement, television advertisement, and radio advertisement.
Following is the signature item for R.D restaurant:
R.D restaurant's signature item is momo. The restaurant is specialized in producing momos to its consumer. It sells around 1.4 million momos a year and generates $1.3 million revenue to the company.
Views on signature items:
Every company should have a signature item and should be specialized in a particular product or service that its competitor does not offer. These signature items will help the company to grow faster and be more profitable than its competitor.
Example: M.D restaurant specializes in burgers and other food items to the customers. and its competitor B.K restaurant also sells burgers. But, people prefer M.D's burgers more than B.K's burgers around the world because M.D's signature item being a burger is able to give its consumers tastier burgers than its competitor B.K. This signature item has made the restaurant more profitable.
Competitive advantages:
The business gets successful only when a company offers its customer more valuable products or services than its competitors. This additional value gives the business its competitive advantage.
Example: If your competitor is manufacturing only black and white printers, your investment in color printers will give the business a competitive advantage.
Signature items are unique items that competitors do not sell, and which differentiate a company or a store from its competitor. The signature items are promoted and advertised both in stores and through various advertisements like print advertisement, television advertisement, and radio advertisement.
Following is the signature item for R.D restaurant:
R.D restaurant's signature item is momo. The restaurant is specialized in producing momos to its consumer. It sells around 1.4 million momos a year and generates $1.3 million revenue to the company.
Views on signature items:
Every company should have a signature item and should be specialized in a particular product or service that its competitor does not offer. These signature items will help the company to grow faster and be more profitable than its competitor.
Example: M.D restaurant specializes in burgers and other food items to the customers. and its competitor B.K restaurant also sells burgers. But, people prefer M.D's burgers more than B.K's burgers around the world because M.D's signature item being a burger is able to give its consumers tastier burgers than its competitor B.K. This signature item has made the restaurant more profitable.
Competitive advantages:
The business gets successful only when a company offers its customer more valuable products or services than its competitors. This additional value gives the business its competitive advantage.
Example: If your competitor is manufacturing only black and white printers, your investment in color printers will give the business a competitive advantage.
Small Business Management 5th Edition by Timothy Hatten
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