Room For Dessert (Rfd) Case Study Essays Example

Room for Dessert (RFD) Case StudyDescribe RFD’s business model

RFD business model illustrate the passion towards food. The marketing tool stresses four elements that include, low investment cost, high margins, multiple revenue streams and geographic expansion. Additionally, it is influenced by the economies of scale and the utilization of the capacity of the current unit.What market is RFD targeting? How big is it?
The main target of RFD is to establish its business at major centers that are concentrated. It targets to locate a store in Boston. It intends to update its primary segment.How is RFD differentiated from competitors?
The business entity is unique. RFD offers specific services especially on weekends. It purposefully concentrates on high-level location.Do you think RFD’s business plan is effective? Why?
The business plan for RFD is exclusive. The marketing strategy set show effectiveness in the sense that they use the marketing tools to create customer awareness concerning proposition and encourage participation. The location of the business allows development and growth. For example, it is located at high-end hotels, foot traffic, upscale centers and busy downtown areas.What assumptions did RFD make?
There are limits on the professional chefs for each unit concerning labor because of the existence of a focused menu. There is anticipation for various staff units. Additionally, assumption are made based rent, for example, it is dependent on the locations with high foot traffic. The prospects assume an average cost of $ 50 per square foot. Balance sheet items assume a 2% required cash. It is relatively low because of the nature of the business.What risks are considered in the plan?
Risks considered in RFD plan points to the economic model that fails to work effectively. Competition intensifies entry to the market hence limiting the opportunity for expansion. Consumer trends tend to have shifted when it becomes a healthy issue. Hence, the campaign for dessert concept will have little or no appeal. RFD faces risk since acquiring real estates is challenging. The RFD economic models lose its efficient in locating quality areas.

Bibliography

Lassiter, J. b and Roberts M.J. Business Plan for Room For Dessert: Adding Unique Ingredients to life’s balancing act, Revised, June 14, 2013 (1-23)