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Group Case Written Report

Mazud’s Meal Delivery

Mayank Goel (2408591)

Deepa Khatri (2409657)

Luana Perez de Araujo (2407615)

Nitisha Maharjan (2350795)

Roseller Junsay (2343322)

University Canada West

ACCT 621 – Accounting for Managers

Faiyaz Moosa

Dec. 9, 2024
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Executive Summary

Mazud is currently balancing two major roles: His meal delivery business while he worked as a
full-time software engineer. Now, he's not sure if he wants to continue full-time as a software
engineer or whittle down the hours so he can work more on his meal delivery business. As he
looks to maximize income as he can and expand his business but without losing the work-life
balance.

A big challenge that Mazud faces is whether the labour cost of his own time in the business
should be included when calculating whether the meal delivery business is profitable. He’s
currently actually delivering himself, but there’s confusion in this situation because his
deliveries make money directly to him, personally. These questions raise debate on the real
labour cost and how this cost impacts the bottom line of the business.

In this assignment, we will explore and examine some important aspects of Mazud’s situation.
On the other hand, we will do a financial analysis to see how much money could be made from
his meal delivery business while working a full-time engineering job where business running
costs, such as car expenses and advertisement costs, are factored in, as well as labour costs.
We’ll also consider the scalability of the delivery business and opportunities for growth with the
help of a partnership with Sameera.

Furthermore, we will also analyze several marketing tactics that Mazud could implement in
order to appeal to his target consumers, who are young adults and families with young children,
so the business can stand up in a competitive market. In the final analysis, we will do a SWOT to
determine the strengths, weaknesses, opportunities and threats of Mazud’s business to provide
him with a holistic recommendation to make an informed decision. By combining this in-depth
analysis, we hope that we can help Mazud make a clear decision about what to do and whether
to try to balance both his software engineering career and his meal delivery business.
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Issue: Mazud needs to decide between working full time as software engineer or to transition
into working part time while maintaining his delivery business. He is also unsure whether to
take Mazud delivery labour cost in consideration

Analysis:

1.To determine whether to consider Mazud deliver cost $5/Hour into consideration we must
take following factor into consideration

 Net effect on income: To consider the business performance, we must take labour cost
into consideration However, the labour cost direct goes into Mazud pocket the net effect
on his personal income is zero.
 Time utilization: To have fair assessment of time spend we must take delivery labour
cost. He does the morning and evening delivery in both cases. In afternoon, in one case
he does deliveries and in other we work in his job. So, his work time remain same.

2. The detailed earning report for both the option is given below.

Part-time Engineering Full-time Engineering

job job
Revenue from delivery $ 83,877.00 $ 83,877.00
Less Sameera share $ - $ 33,550.80
Mazud delivery revenue $ 83,877.00 $ 50,326.20
Less car expense $ 20,969.25 $ 12,581.55
Less advertisement cost $ 600.00 $ 600.00
Add income from job $ 30,000.00 $ 60,000.00
Mazud personal income $ 92,307.75 $ 97,144.65

Recommendation:

 Labour cost of delivery is not required in this case as the net effect on income is zero and
time spent is same.
 In Year 2, it would be better to be able to hire Sameera for lunch deliveries while
working on the same full-time software engineer job. The total income yield is higher.
 Mazud can continue his work at his software job while increasing the scope of his
delivery business with the help of his friend Sameera so that he can earn as much as
possible and work a balanced schedule.
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Issue: Mazud needs to decide whether to work full time in his software engineering job or work
full time in his delivery business.

Analysis:

1. Financial analysis.

 Working full time in Business

Year 3 Year 4 Year 5 Year 6 Year 7

Orders per day 30 33 36 40 44
Delivery price + tip $ 8.0 $ 8.00 $ 8.00 $ 8.00 $ 8.0
44
Revenue from delivery $ 74,400.00
8.00 $81,840.00 $90,024.00 $99026.40 $108929.04
8.00
Less delivery car cost $ 18,600.00 $20,460.00 $22,506.00
$$90,024.00 $24756.60
$99,026.40 $ 27,232.36
Advertisement cost $ 600.00 $ 600.00 $ 600.00 $ 600.00
$24,756.60 $ 27232.26
600.00
Personal income $55,200.00
600.00 $60,780.00 $66,918.00 $73669.80 $81096.78
600.00
Delivery time 6.0
55,200.00 6.5 7.0 7.5
$73,669.80 8.0
81,096.78
Labour cost per hour $ 5.0 $ 5.00 $ 5.00 $ 5.00 $ 5.00
Less labour cost $ 9,300.00
5.00 $10,075.00 $ 10,850.00
5.00 $11,625.00 $ 12,400
5.0
Income from delivery
delivering 2,400.00
$45,900.00 $50,705.00 $56,068.00 $62,044.80 $68,696.78
business

Total income from business: $ 283,414.58

Total personal income: $ 337,664.58
 Working full-time as a software engineer

Toal income: $60,000 *5 =$ 300,000

2. Quantitative analysis

 Flexibility: Working in a delivery business provides flexible working hours and provides a
better work-life balance, whereas working as a software engineer has a fixed schedule.
 Stability: Working as a software engineer provides a fixed salary and higher stability,
whereas the delivery business has an uncertain income model.

Recommendation:

Financial perspective: Working full-time in the delivery business provides higher income over
the next five years and year-on-year growth. The increase in delivery volume offsets the labour
and delivery costs.

Qualitative Perspective: If he values flexibility and higher income potential, food delivery could
be a good choice. If he seeks stability, a software engineering career may be more suitable.
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Issue: Mazud needs help choosing the most effective marketing strategy to reach young adults
and families with young children for his meal delivery service.

Analysis: Three Advertising Options

1. Social Media Marketing

Pros:
 Platforms like Facebook are popular among young people and families.
 Social media marketing is affordable and has better future growth.
 Enables advertising to be done precisely and reach the target audience.

Cons:
 Writing new content is essential to maintain customer engagement.
 May suffer stiff competition from another business.
 Early stages may experience slow engagement.

Implementation:
 Start business accounts on Instagram and Facebook.
 Following up with content such as meal pictures, clients, and customer feedback as well
as promotional offers.
 It is advisable to target the mentioned age and use the provisions of family-oriented
online advertising.

2. Influencer Partnerships

Pros:
 Endorsement from people within the region who are well-known.
 Influencers rapidly increase brand awareness
 Genuine opinions from influencers build trust

Cons:
 May be relatively costly, especially for influential personalities.
 Audience engagement differs depending on the specific influencer promoting a product
or service.
 Lack of control over the timing and content.

Implementation:
 Partnership with local influencers like food bloggers.
 Target the market by offering tasty and nutritious meals in exchange for their posts on
social media networks.
 Develop coupon codes for the influencers to use in reaching out to their followers.
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3. Local Event Sponsorships

Pros:
 Direct contact is made with the target groups exclusively in person.
 Reconstructs and strengthens the brand presence in the local community.
 Customers can give instant feedback.

Cons:
 May cost much more than digital marketing.
 Call for time and energy when planning and implementing.
 It may be limited to a particular area, restricting growth.

Implementation:
 Be a sponsor of family-centered programs or other youth enrollment social meetings.
 Set up a booth to display the meals and allow tasting.
 Offer special discounts for first-time customers.

Recommendation:

All three methods have their own benefits and drawbacks. Mazud should integrate the following
three advertising strategies.

 Cost effective: Mazud choose social media marketing as it’s very cheap and Mazud can reach
young adults and families directly and build a strong online presence. It’s a low-investment,
high-engagement, and scalable strategy.
 Growth-oriented: Working with local influencers will not only accelerate the brand but can
bring a lot more customer base in a little time. Mazud can harness the power of influencers
that have a strong following in their local market very quickly and can leverage that to
spread the word about Mazud’s services to a very targeted audience.
 Local Engagement: One great way to build direct relationships with the community,
especially families and young adults, is by sponsoring local events. It builds trust and
credibility for your brand and enables you to personally interact with potential customers,
resulting in long-term connections.

When used in combination, these three strategies will give the best overall approach to food
processing. Social media marketing is cost-efficient, influencer partnerships can bring in very
fast growth, and sponsoring local events can fetch more community engagement. Including
these strategies allows Mazud to attain his target audience and guarantee enduring success.
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Issue: The SWOT Analysis of Mazud's meal delivery business brings to surface critical
challenges facing marketing, operations and scalability, obstructing growth potential.

Analysis

Strong Customer Relationships: Mazud has had good customer relationships and loyalty
through personalized services, pre-orders, and reliable delivery services.

Flexibility and Passion: Mazud still holds his software engineering job as he operates the
business venture as a side hustle. This displays his dedication and versatility.

Growing Market: The rising number of collaborated local restaurants indicates more demand
for his services.

Weaknesses

Time Management Challenges: As a full-time employee, managing the delivery business

absorbs much of their time, leading to delayed deliveries that reduce the quality of service.

Operational Inefficiencies: No proper system is implemented to optimize delivery routes,

which leads to significant time consumption.

Limited Marketing Efforts: Relying on Word of mouth and basic marketing strategies limits the
ability to reach a large customer base, especially the target customer base.

Opportunities

Technology Integration: Using advanced customer relation management (CRM) software can
help to benefit both the company’s operations and perceived service quality by the customers.

Expansion of Services and Marketing Reach: The additional targeting of customers by

promotions, social media branding and engagements, and partnerships with influencers can
enhance brand recognition and customer loyalty.

Hiring Assistance or Scaling: If Mazud hires more people on a part-time basis, many of,
operational problems could be solved while freeing up time for strategy and quality.

Threats

Competition from Larger Platforms: Some of the competitors to Mazud’s potential clients are
Uber Eats and DoorDash providing, perhaps, more restaurant options and cheaper.

Rising Costs: Rising fuel, maintenance, and operational costs have the potential to reduce
profitability.

Scalability Challenges: As the business grows, there is a increased risk of quality of service and
customer satisfaction.
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Recommendations

By working on opportunities and taking steps to encounter potential threats, we can ensure the
long-term growth of the business. The following are the steps which can be taken to improve
business operations.

Technology Integration: To solve the problems concerning Mazud’s operations, the company
should upgrade its CRM and order handling systems to reduce the time it takes to process
orders and to increase customer satisfaction through efficient routes. This will also help Mazud
to manage many orders while achieving higher efficiency in the company’s existing processes,
thereby freeing up resources for managerial decisions.

Expansion of Services and Marketing Reach: Our recommendation for Mazud is to strengthen
marketing activities, especially on social networks for young adults and families. Social media is
most effective in displaying beautiful meals, satisfied clients and, finally, some attractive offers.
Local adversaries can also be employed to enhance the brands familiarity and believability.
Further, the strategy of using referral and experimenting with discounts will lead to the
acquisition of customers and the retention of the current ones.

Hiring Assistance or Scaling: To address issues with regard to time management, Mazud
should recruit employee who will work during the busiest hours of the day thus addressing the
issue of delivering goods to customers. This will translate to better functioning and working,
better service delivery with minimal shortages hence high service quality. The best way to pace
the growth of a start-up so that customer satisfaction does not deteriorate is to hire more
subordinates and improve on the ways of working.

Competition from Larger Platforms: The major threat which Mazud may face is competition
from big giants such as Uber Eats and DoorDash, but Mazud can focus on services like taking
advance orders and home delivery of meals of the customers’’ preference. The initiation of
services that are tailored to families and elderly customers may bring out a new market for
Mazud that no other company has monopolized.

Rising Costs: In future, Mazud should seek to adopt operational cost efficiencies such as
minimizing the delivery routes and keeping vehicles in good condition to minimize fuel and
maintenance costs. Much more, delivering in batches and adjusting the timetable can help avoid
many trips, hence lowering cost.

Scalability Challenges: To ensure that the business is well positioned to expand, there is need
for Mazud to train the employees on the best way to uphold the high standards of service
provision during the growth process. Structuring a sound plan aimed at containing customer
response, personnel demand, and IT solutions will assist Mazud achieve a rapid growth rate
without much compromise on the quality of services offered.
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Conclusion

With the analysis of Mazud’s situation, clearly, his decision is hard to make between his stable
career in software engineering and his growing meal delivery business. We have to consider
some factors like financial stability, how scalable the business will be, and how personal work-
life remains balanced. After evaluating these aspects, the following conclusions can be drawn:

• Decision Between Jobs: Initially, Mazud should play both roles. The best option at this time is
for him to continue his full-time software job and grow his delivery business slowly so the
income is stable and the business is gradually expanded.

• Financial Considerations: The meal delivery business definitely has the potential for high
income, but engineering is going to provide a more stable short-term income.

• Growth and Scalability: There is a lot of growth potential for meal delivery, with good
marketing and help from someone like Sameera. However, growth can be accelerated by solving
operational challenges such as time management and delivery inefficiencies.

• SWOT Analysis: Strong customer relationships and an expanding market are the strengths of
Mazud. Time management and inefficient marketing can be reduced through better technology
and more effective operations to improve efficiency and advanced marketing.

• Final Recommendation: He can keep his engineering job and run his meal delivery business.
This will increase his income and grow his business without sacrificing his financial security.