Summary

An entrepreneur is one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them.

The Kauffman Foundations version talks about visionary entrepreneurs are ones that develop innovations, create jobs, and contribute to a more vibrant national and global economyGrowth entrepreneurs are those who are motivated to grow their businesses so that they can create wealth and jobs in their community. One of those entrepreneurs is Mr. Resham Lama, CEO of Momo Station who is planning to invest Rs 500 million to open 200 momo outlets across the country. His plan of opening 200 outlets is quite amazing and also planning to employ over 3000 employees mostly on hourly basis is a new thing in Nepal. Momo Station has planned to open a factory as well as three outlets within two months and thereafter adding an outlet every 2-3 weeks. His idea of Momo Station is unique as there are very less direct competitors in his business, because most of the restaurants providing Momos in Kathmandu are providing extra menu items as well. The number of restaurants providing momo as the sole dish is very rare to find, and Mr. Resham is planning to compete in the market by providing 10 varieties of momo and will be serving 25 types of sauces paying Rupees 5-10 per bowl of sauce. Similarly, the sauces provided by Momo Station are unique as well, serving sauces made from Gundruk, Bitter Gourd, Stinging Nettle, and Bamboo Shoot. They also plan to bottle these sauces and sell it in Super markets and export it to other countries as well. Currently the momos made in Nepal are using the traditional method i.e. by preparing it by hand. Momo Station is planning to make a change by making the momo making automatic. They plan to setup a central factory and to import a computerized machine, which can produce 15000 units of momo in an hour. The momos made there will be supplied to its outlets and they also plan to pack it and export frozen momos to different parts of the world. The value proposition for the company would be to ensure its customers that the momos provided by Momo Station is hygienic, and to commit to quality they will be conducting Lab test of their products and get quality certification. MOMO LIBRARYThe concept of opening a Momo Library is a new one, the library will have all information related to momo. Likewise they will have books relating to the history of Momo in Nepal, the recipe and related information. Learning from the Case

Problem SolvingIf a business is to succeed, the first and foremost thing would be to see why it is in business, what are the problems it plans to solve so that customers get what they want. So, here Momo Station is planning to solve problem of providing hygienic momo with utmost priority to quality. Likewise, there are very few outlets currently that focus solely on Momos. They plan to solve this problem by getting into Momo business and providing varieties of Momo. Value Proposition The main focus of Momo Station here is providing Hygienic Momo and varieties of Momos along with 25 different types of sauces. This is something we dont easily find in restaurants in Nepal. Customer RelationshipsMomo Station will maintain a one to one relationship with its customers, for any food business this is the best way to get in touch with customers. This is because; they can get feedback directly from the customers regarding the taste and preferences of the customer. The customer acquisition strategy for Momo Station will be through the provision of Membership cards, where Momo Station will provide discounts and job opportunities for the members. Customer SegmentThe main customer base would be Kathmandu and slowly after expanding they will be targeting customers in Pokhara, Itahari and Bhairahawa. Likewise, they will also have their customers abroad after exporting frozen momos. As the demographics are changing, more and more people in the middle income age group are increasing and people are now having increased standard of living. As the upper middle class income and middle income class people are starting to grow in number, their purchasing power also increases with increased income. As momo generally is eaten irrespective of the age of people, the price charged by Momo Station can affect certain group of people. So, the main target customer would be middle income and upper income group people who can easily afford to have a plate of Momo at Momo Station. Key ActivitiesFor the business to sustain, the key activities at Momo Station would be to provide its customers with quality and hygienic momos. Similarly to sustain its business, they have to export frozen momos and sell the bottled sauces to domestic and international market. Likewise, finding appropriate workforce who is willing to work in hourly basis is also a challenge and managing finance for the business is also an important activity for Momo Station. Key Resources The key resources for Momo Station is the computerized machine that will be imported from Thailand, it will help Momo Station to make 15,000 units of Momo an hour which is next to impossible if humans are used. Likewise, the meat required to make momos and spices for the sauces are also an important resource. Financial resource is required higly, if they cannot get it, they will not be able to import the machine from Thailand which will help them gain the market. Similarly, human resource is also required, to open 200 outlets and a central factory would require number of peoples. So they plan to employ 3000 employees. Key PartnersThe key partners for Momo Station would be the Machine provider from Thailand who will be delivering the machinery and will be providing after sales service. The main partner will be formed by a buyer-supplier relationship i.e. between Momo Station and its supplier, who will be providing Momo Station with all the meats and different spices for its sauces. The other partners would be the finance provider and they will be actively looking at the business progress so that they can know about how their money is being used. Similarly, the most important partner could be the customers who will be provided with membership cards, so that they can enjoy their discounts and give feed back to Momo Station on how they can satisfy their customers. ChannelsOne of the channels that they have used currently is via the Newspaper, and this is through which we got to know about Momo Station. The other channels would be the outlets where the customer will visit Momo Station and taste the Momos and provide feedback. The other could be word of mouth through prospective membership card holders. Currently, they have opened dummy outlets in Kathmandu for the past 10 months; this will help promote Momo Station when it enters the business in a bigger scale.

Cost StructureThe major costs for Momo Station are the cost of the Computerized Machine that will be imported from Thailand, other important costs would be the cost of the meat and spices, wages paid to the employees and rent paid for the outlets. Revenue StreamsThe main revenue stream will be from the sale of Momos in their 200 outlets across the country. The other revenue stream will be from Membership cards and the cost of extra sauce ordered by the customers. Likewise their revenue can be boosted by exporting frozen momos and the bottled sauces that will be sold in local supermarkets as well as foreign countries like UK, USA, Australia and India. Opportunity Analysis Canvas Mr. Resham Lama, CEO of Momo Station saw an entrepreneurial opportunity of opening Momo Chain in Nepal; he did not do it in hunch but rather did research to get into this conclusion. After researching on food that is mostly eaten by Nepali, he found out that Momo was the most preferred food and so he decided to start it. This has been backed up by his experience as well because; he has been in the food and beverage business for a long time. The industry condition has been favorable to some extent as well because, there are very few direct competitors who can compete with him in terms of providing 10 varieties of momo as well as 25 different sauces under the same roof. Likewise, he is probably going to be the first person to bring in a computerized machine that will produce 15000 units of momo in an hour. So as a first mover, he is surely going to be in an advantageous position. The other advantage for him would be the value proposition i.e. hygienic and quality assured momos which is quite rare in our part of the world, where there is adulteration. Mr. Resham Lama is acting entrepreneurially as well; they are solving a problem by providing hygienic and quality momos along with sole focus only in momos.

ConclusionMomo a common food in Kathmandu, as it is found in every nook and corner of Kathmandu. Every step you take there is a restaurant where you can enjoy this delicious food. But the question what varieties are provided? Are they hygienic? Is it quality assured? And the question Mr. Lama has to answer is, Is Momo station the answer to all these questions? As I mentioned earlier, I found Mr. Resham Lama to be a Growth Entrepreneur, who focuses on growing and expanding their business and creating employment opportunities and wealth creation in the community. His plan of opening 200 outlets across the country with a centrally located factory and employing over 3000 employees is a huge project. As there are already number of local momo shops and restaurants, the competition for the same customers is high. Momo Stations answer to the competition would be to compete in terms of quality and the varieties of momo and sauces it provides to its customers. Changing demographics is helping to the cause but proper planning is equally important for sustainable future of Momo Station. One of the most common problems with expanding business is their quality problems, with increased production and increased outlets, there are chances that quality will be compromised but as Momo Stations main value proposition is hygienic and quality assured momos they have to constantly be aware of the quality they provide to the customers. If they want to succeed and be there in the market in the long term this is one thing they have to focus on continually.

Assignment No: ThreeGlobal Entrepreneurship and Innovation

Submitted toMr. Anand TuladharCourse InstructorGlobal Entrepreneurship and Innovation

Submitted bySumendra ShresthaRoll Number: 13226

January 17, 2015South Asian Institute of ManagementLagankhel, Lalitpur