Answer to Question #207863 in Management for Gloria

Question

Roy Micky wants to open a new Nakamal (Kava Bar) in Port Vila. He knows he is entering a highly competitive market, but is determined to give it a go as it is something his family have always wanted.

There are 96 other Nakamals in Port Vila that Roy will have to compete with. In addition to this, he does not have an established presence in the market. These are just 2 of his concerns. The other 5 are required to come from you.

1.     List and justify (from an operations perspective) 5 key things that he should consider in setting up his business. In answering this question, think of the different chapters that have comprised this course – you should get a point from each chapter. (20 marks)

NB. This question is asking for 5 points of concern – each carries 4 marks.

Answer 1

Roy should consider several factors which are of great concern before starting the Kava bar in Port Vila. These factors include;

1) The market demand. Since there exist 96 other bars in the port, he should consider whether he will be able to get the necessary customers that will enable him to gain substantial market share to control.

2) Capital and Finance. Roy should consider whether he has the funds required in running a bar to ensure he meets demand, caters for licenses, bar structuring.

3) Roy should consider whether he has skilled human resource personnel. The staff is very important in determining the success of the business. He needs qualified and experienced barman and related staff for the proper running of the business.

4) he should consider if the location of the business is viable for bar operation. Location is key determinant in the success of the business.

5) He should consider his level of expertise in the field of the running bar.