Potential Problems That Could Arise and How Likely Are They in Choppies Crunch

Paper Type:  Essay
Pages:  3
Wordcount:  635 Words
Date:  2022-07-15


One major challenge is that there has been a decrease in the demand for fast food in the Northern Manhattan region due to consumer spoliation with the choice. This has reduced the general business profits and has led to businesses relocating to other parts of the smaller cities in the Manhattan region. Choppies Crunch making such decision of filling the gap by introducing a fast food is an opportunity but a great challenge in the long run. Penetrating the market and gaining large market share will be difficult for the company since most of the customers have trusted companies like Starbucks, Bread talk and McDonald's who have exploited the market by offering similar products. Since the company is targeting the primary age of 15 to 25 years, it will be very difficult for the company to attract more customers if they don't have any unique feature to add on top, this is because McDonald's has already penetrated the market with low pricing strategy.

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Since the company will be incurring many costs that would include both indirect and direct fixed costs such as rental cost and minimizing variable cost as much as possible. It will take many resources for the company to stay committed to paying their fixed cost and at the same time gain profit in the beginning. The company main aim is to ensure market penetration and development in the long run and this means that the pricing strategy used will involve huge discounts for all the customers. This can be a great challenge especially in a fast food business where most companies have already established their market.

Managing the Problems

Since the age target population of 15-27 years is a very complicated market to understand, the company can continuously penetrate the market by not necessarily using the low pricing strategy. Choppies crunch can incorporate new trends and still manage a standard price. They can introduce wifi in their stores, brand their drinks with common customer names and focus more on advertisement and initiating customer delivery process. Through this, the company will be advertising themselves and more customers will be working on experiencing the company's products and services. Dealing with some of the fixed cost like rent, Choppies crunch can work on buying the stores in the long run, and this will form part of their long-term asset.

Timing projected for the project

Since the company will need $ 2.5 million to become operational and start making a profit with a total start-up cost $ 149, 700, depending on the availability and the market performance, the project is projected to take one full year to be complete.

Business Objectives

The main business objectives for Choppers Crunch is to provide customers with food of great standards, value for their money and quick service.

How the Choppers Crunch set the company's objectives

Choppers Crunch set their objectives to work on meeting the aims of the business. The company will consider standard measures like specific, measurable, achievable and relevant to the aims in coming up with such objectives. Time will also be a major contribution in setting and starting the finishing dates, for example, Chopper Crunchie manager might tell the workers that they only have one month in achieving the one-minute service time objectives. The key objective of the company will be achieving their aims since they want to do better and stay ahead of their competitors.

Contingency plan for Choppies Crunch

If things are not matching and up to the standard mark, values and even the objectives put in place, the company have to think for the second option as a contingency plan. Therefore, Choppies Crunch has to set new goals and review new services, products, and location. After this, all Choppies Crunch will put a strategic option like changing the location or implementing various product options to survive in the market.

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Potential Problems That Could Arise and How Likely Are They in Choppies Crunch. (2022, Jul 15). Retrieved from https://proessays.net/essays/potential-problems-that-could-arise-and-how-likely-are-they-in-choppies-crunch

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