Xtreme Second Run Cinema 'N' Cafe Case Study
• The company projects to make sales of about £600K minimum within the first year and by year 3, a minimum of a million.
• It projects a work-forces costs less than £300K in the first year.
• To break even by end of 3rd quarter of the year.
Xtreme Second Run cinema ‘n’ café operation is to set up a new cinema experience for its customers that will be so thrilling and refreshing with the aim of making them return as much as possible and ensure they refer the outlet to friends and loved ones. The plan is to provide its customer with outstanding customer service by way of creating a suitable environment, serve meal of high quality that will leave a long-lasting experience. As this …show more content…
For a start-up, the pursuit for a fluid and suitable business model is very vital. According to Blank’s (2006) work, this hunt can be broken down into two phases. First is the business model design process, following trial-error underlying forces. This process is expected to provide framework that guides the organizational structure. The second phase refers to the application process. It is here that the design in place is tested to confirm if fit to prevent any form of failure and able to deliver on its objectives.
According to Osterwalder and Pigneur (2010), for companies to be able to create value for customers and increase their level of competitiveness, it’s important to hold diverse combinations of both physical and immaterial resources. These include resources such as production facilities, buildings and academic resources such as brand, knowledge, customer databases and human …show more content…
The focus would be showing motion pictures at reduced prices after the films leave first-run playhouses. The company will also provide sales of light meals and drinks like, pizza, chips, hotdog, grills and burgers and a few other creative meals. The outlet will be located along Broadway downtown within close proximity to the University of south wales (Glyntaff and Treforest campus), train station, major shopping centers (pontypridd).
The founders of the company are Michael Steve, Mark Jones and myself. Mark will focus on the financial aspect of the business, Michael is the restaurant chef while the personnel (HR) aspect will be handled by myself.
Mark has a vast experience in accounting and finance having worked with top MNCs for over 10years.
Michael has been a chef for over 8 years specializing in grills, burger and other international delicacies.
The company was able secure an agreement with a Premiere Film Distributor that will provide the second run films for Xtreme Second Run's café at a cost. A lease for the café location has been secured for £2,500 per month. The theater will have to be equipped as a restaurant. The founders are investing £30,000 each to start up the