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Feasibility Analysis; Mountain Stone Grill

Feasibility Analysis; Mountain Stone Grill

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An essay for the 2012 Undergraduate Awards (International Programme) Competition by Kristopher Pendl. Originally submitted for Survey of Entrepreneurship at Other, with lecturer Michele A Dorvil in the category of Business & Economics
An essay for the 2012 Undergraduate Awards (International Programme) Competition by Kristopher Pendl. Originally submitted for Survey of Entrepreneurship at Other, with lecturer Michele A Dorvil in the category of Business & Economics

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Published by: Undergraduate Awards on Aug 31, 2012
Copyright:Attribution Non-commercial


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Mountain Stone Grill
Feasibility Analysis
Executive Summary 
Concept and Opportunity
The Freedonia Group recently reported that sales of outdoor grills are expected to grow 4%annually through 2013. At the same time, consumer awareness of the dangers of grilling isgrowing as more stories around the carcinogens produced from traditional grilling arepublished. Consumer demand for healthy foods and cooking methods is on the rise, with morecompanies responding to this increasing demand every year. An opportunity is present in theoutdoor grill market to merge consumer concerns over healthy grilling with consum
increased appetite for grilling. Several factors work together to create this opportunityincluding:
More Americans are spending time at home than ever before due to several factorsincluding rising fuel costs and other expenses.
Americans view grilling as a highly desired activity when entering guests in their homes.
Americans are investing into home patio areas including grilling due to the increasedtime spent at home and a desire to make guests comfortable.
Healthy eating habits are on the rise across the U.S.
Organic food stores and other fresh food alternatives have shown an increased activity.
The internet has increased the ability of consumers to increase knowledge andawareness around the health concerns over the food they eat and the way they cook it.Together these trends create a demand that Mountain Stone Grill will fulfill.Mountain Stone Grill is the first outdoor grill company dedicated to providing customers with agrilling experience that provides the aromas and textures that only grilling can produce in a safeand healthy method.Mountain Stone Grill is pursuing revenue streams in the following ways:
Entry will be made into a niche market within the outdoor grill market, appealing to thehealth concerns of a broad base of customers.
Unique and superior product design will allow the company to charge higher margins forproducts.
Patent protection will enable the company to control this niche market for several yearsto come, leading to an increasing revenue stream as consumer awareness increases.Mountain Stone Grill is poised to deliver a product that will revolutionize outdoor grilling.Consumers demand will increase as brand awareness grows and Mountain Stone Grill increasesconsumer awareness of the health dangers in previous grilling technologies
Primary Research Results
Mountain Stone Grill conducted extensive research discovering some key findings:
Consumers desire to spend time at home and extend living space outdoors will drivesales for outdoor patio products up 4 to 10% according to industry experts.
22 percent of US grill and smoker owners admit to grilling more this year compared tolast.
78 percent of US grill and smoker owners say that grilling is either extremely importantor pretty important when entertaining guests.
71 percent of all Americans 21 and older own an outdoor grill or smoker.
Avoiding direct exposure of meat to an open flame or a hot metal surface
and avoidingprolonged cooking times (especially at high temperatures) can help reduce HCA andPAH formation.
Management Team
Mountain Stone
management team possesses a diverse collection of experience andexpertise in the areas of business management, finance, engineering and design, health, andmarketing. Score Colorado of Denver and The Denver Office of Economic Development willserve as vital resources and provide needed expertise that will greatly increase the chance forsuccess.
Financial Assessment
To successfully execute its plan, Mountain Stone Grill will require $1.1 million in capital. Thecapital needs are based upon a negative cash flow throughout its first year of operations as wellas a safety factor of two months of operating expenses. Operations are assumed to begin onJanuary 2012 with first units available at the Hearth, Patio & Barbecue Association 2012 Expo.The company will be profitable in its first year of operations, though profit and revenues areexpected to be minimal. By the end of its third year of operations, Mountain Stone Grill will beless than 300 sales units away from break-even and repayment of start-up funds.
Total Revenues
Gross Profits
Net Profit After Tax
Net Profit Marin

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