Jungle World Activity Centre: Market Research and Financial Data
my Ielts level is 6, and please write a little more sentences about the table for the second question.
INFORMATION FOR STUDENTS
• This coursework is a take-home assessment. • Essay length: 1,250 – 1,500 words (not including appendices/bibliography) • There are 100 marks in total. • This coursework contributes 20% to your overall final mark for your IFY Business Studies • All references should be acknowledged using the Harvard referencing system
KNOWLEDGE
Definitions
The Bigger Topic
Types/Explanations
Advantages/Disadvantages
ETC.
APPLICATION
What business, industry, market? What size/age? What legal status?
What objectives?
Short-term & long-term issues? Ethical issues?
What products? What target market/customers/segments? What needs/wants?
What research?
What production process? What employees? What inventory? What quality problems?
Think for a while before you start writing. Used carefully, you have lots of time. But no time to waste!
Think specifically about both relevant topic knowledge and the thinking skills (application, analysis and evaluation)
For application, you should consider what business, what products, what customers, what employees, what size, what age, what legal status etc.; whichever is relevant to the question asked
Why for analysis means (for example) why it is or isn't good or why it does or doesn't work; first-order results to second- and third-order results
Why for evaluation means why something is the most important factor to consider or why something is the best thing to do
If you try to apply as best you can, your analysis (AN) should be easier and better
If you try to analyse as best you can, your evaluation (EV) could be easier and better
Think about the wider topic before you start writing your introduction
Report: Jungle World Activity Centre
Name
Affiliation
Course
Due Date
Report: Jungle World Activity Centre
Introduction
Jungle World Activity Centre (JWAC) is a company founded in 2015 by John and Sarah Richards and incorporated in 2017. The company has eight centres based in West Midlands targeting children aged 2-11 years offering soft play activities and interactive games as well as a refreshment café. JWAC is eager to expand by opening a new activity centre in the City of Sheffield. Given the challenge of post-COVID growth, JWAC decision to open a new centre should be based on a well-crafted policy. Effective market research will provide insights into the local market, competition, and customer preferences. The financial analysis will assess the financial viability and profitability of the new centre, while promotion methods are vital to attract customers and create awareness. A good strategy, as described by Rumelt (2011), involves coherent policies and actions that lead to success in a high-stakes challenge. By formulating and implementing a well-designed strategy, JWAC can maximize its chances of achieving growth and success in the new venture in Sheffield.
Market Research
The process of market research involves gathering and analysing information about the market, customers, and competition to make informed business decisions. In the current scenario, JWAC requires market research to understand target market, identifying opportunities, mitigating risks, and developing effective strategies. Specifically, the research will validate demand for an indoor activity centre in Sheffield. The company can determine the level of demand through an examination of the demographic and spending patterns of the local population. Further, market research will allow JWAC to assess the competition for the new Centre. An examination of the offering, customer feedback, and pricing strategies of the competition can help the company position itself in the new market. While JWAC largely has a “jungle” theme for its centres, market research can help the company understand the specific needs and expectations of the new target market.
One approach that can be considered during the market research is desk research. Desk research is secondary research that involves the collection and analysis of information from existing sources. Notably, desk research is beneficial as it is cost-effective and time saving. However, the limited relevance of its findings and the absence of control should be considered when analysing its results. Notably, desk research at JWAC can leverage their sales record and existing customer base to profile the customers for the new centre. External sources such as government data, industry publication, and internal records among others can offer data on Sheffield as well as insight into market size, growth potential, and industry trends.
Alternatively, JWAC can conduct a market research based on collecting data directly from the target market. The use of surveys, interviews, focus groups, or observation can help JWAC gain specific insight on the new target market. Primary research can be used to complement desk research by providing specific insight on the Sheffield market. Market research can collect either qualitative of quantitative data. Quantitative data describes the type of data that one can measure and analyze using various statistical approached. For example, JWAC can use quantitative data such as number of families with young children in Sheffield and their average income can help the company understand the market size and forecast potential revenue. On the other hand, qualitative data describes subjective insights from individuals such as feedback on competitions. Such data can help JWAC discern the motivations and expectations of target customers in the new centre.
The final decision on research approach should be based on the information needs. To this end, JWAC should adopt a research method that allows it to forecast demand, understand customer preferences, and gains insight on competition. The use of a combination of primary and secondary research is ideal for comprehensive understanding of the market. Regardless, the decision should also consider the cost and benefits associated with each methodological approach. The limitation of the chosen research approach should also be acknowledged.
Analysis of Financial Data
Notably, there is financial data provided that allows the analysis of the centre’s projected profitability, breakeven points, and the return on capital. The table provides data based on the forecast that the new Sheffield centre will receive 42,500 visitors. The data allows for the calculation of the operating profit, which is the profit that a given business generate after accounting for the cost of revenue generation.
Operating profit= Revenue – (Variable cost + fixed costs)
= 255,000 – (120,000 + 51,000)
=84,000
Following a calculation of the operating profit, it is possible to calculate the forecast operating profit margin for the new centre. The margin provides an indication of the financial health of a given business and can be calculated by expressing the gross profit as a percentage of the total revenue.
Gross operating margin = (operati...