100 Dollars Laptop with the Media Lab of MIT Free Essay Example, 2250 words

SWOT analysis of the company reveals the major strengths and weaknesses of the OLPC that is presented in the tabular form below. The external environment or the macro environment has a strong impact on all activities and strategies of the organization. These factors include political, social, economic, legal, technological and eco-environmental factors. Two models are used to analyze the force and impact of these factors. These two models are called PESTEL Analysis and Porters five forces . An industry s attractiveness is evaluated through Porter s five forces model. According to the model, the forces that affect an industry are the threat of entrants, the threat of substitutes, bargaining power of buyers, bargaining power of suppliers and the level of rivalry among the existing competitors. The evaluation determines the attractiveness or unattractiveness of the industry and also helps in formulating strategies for obtaining a competitive advantage. The attractiveness of an indust ry, in turn, determines the overall profitability of the industry measured through overall return on investment. It requires utilizing the existing industry environment to gain competitive advantage. Out of the five forces, the strongest competitive force indicates the profitability of the industry and forms the most crucial part of strategy formulation. We will write a custom essay sample on 100 Dollars Laptop with the Media Lab of MIT or any topic specifically for you Only $17.96 $11.86/page Buyer power is relatively high because of high price sensitivity, greater buyer volume, minimal product differences and the availability of substitute products. Supplier power is low because the volume is important for suppliers, switching cost of suppliers and firms in the industry is not high and backward integration is more plausible than forwarding integration.

Gmo Persuasive - 2144 Words

A GMO is an organism whose genetic makeup is changed by humans. A genetically modified organism (GMO) is a plant, animal or microorganism whose genetic code has been altered, subtracted, or added (either from the same species or a different species) in order to give it characteristics that it does not have normally. A GMO is created when DNA from one organism is combined with another organism’s DNA to make one molecule. Scientists do this by cutting and joining DNA from different sources. This forms a new set of genes. They then transfer it into the organism so it has the modified genes. (http://www.i-sis.org.uk/FAQ.php, 11/30/09) With genetic engineering they can make bigger and more nutritious fruit and vegetables. Human embryos can be†¦show more content†¦Scientists can use viruses for delivering genes into your body. They disable the part of the virus that makes you sick and replace it with the healthy gene which then gets delivered to where it needs to go. (Ron Fridell, 12/1/09, p.30) Scientists have genetically modified animals as well in many ways which help produce a lot more food. Catfish have been modified so they grow all year round instead of just in the summer. By this happening farmers can breed and sell more catfish in a shorter amount of time. (Ron Fridell, 12/1/0 9, p.21). Also salmon have been engineered so they grow a lot larger than normal to provide more meat. These transgenic salmon create a lot more meat in the time normal salmon create less meat. Also there are cows that have been engineered so that they make several different kinds of milk. They can produce milk that is more easily digested by people who are lactose intolerant and milk with a longer shelf life. Also scientists can engineer cows that produce milk with a lower amount of fat so that it makes better cheese. This helps provide more food because people who where not previously able to drink milk now can and it also lasts longer as it will not spoil as quickly as normal milk. (http://www.geneticsandsociety.org/article. php?id=386, 12/1/09). Scientists have also found a way to save money and protect crops at the same time. Because pesticides cost a lot to buy and it takes time to spray theShow MoreRelatedPersuasive Speech About Gmo984 Words   |  4 PagesOf all the topics I can choose for my persuasive speech, the purpose why I chose â€Å"GMOs should be banned in Philippines† is because I want all of us to be aware what GMOs are and why GMOs should be banned. So first of, what are GMOs? GMOs or Genetically Modified Organisms is simply known as the transfer of genes. According to my internet sources, GMO is a gene from one organism that is purposely moved to improve or change another organism, GMOs are created when a gene from one species is transferredRead MoreGenetically Modified Crops : Hope For Developing Countries?1543 Words   |  7 Pagesidentifying and addressing prominent counter-arguments, displaying a localized need of the technology (soon to be globalized), and examining how harshly GMOs are criticized with specific comparisons to deforestation and other climate change variables. The authors intended audience is educated voter populations and politicians, in order to make an impact on the GMO debate. Herrera-Estrella s and Alvare z-Morales article serves its purpose, to educate and persuade those involved in the politically chargedRead MorePersuasive Essay : Genetically Engineered Foods835 Words   |  4 PagesPersuasive Research Essay: Genetically Engineered Foods Genetically engineered foods are products that are made out of genetically modified organism, or commonly known as GMO. The modification is inherited from generation to generation. These types of foods have deeply infiltrated the world’s food supply. Almost 90% of crops like corn, soybean, cotton, canola and sugar beets grown in the United States are now genetically modified. Genetic engineering promises increased crop yields, lowerRead MoreInformative Speech : Genetically Modified Organisms1535 Words   |  7 PagesJenna Persky Persuasive Speech Outline Topic: GMOs (genetically modified organisms) Audience: Speech class of students ranging from freshman to seniors, some may have prior knowledge of GMOs. General Purpose: To Persuade Specific Purpose: To persuade the people to stop eating GMO’s and eat organically. Thesis Statement: These human and environmental consequences are what lead people to eat organically. Today, there are a few points I would like to discuss with you all. 1) Introduction A) AttentionRead MoreBenefits Of Genetically Modified Organisms ( Gmos ) Essay2400 Words   |  10 Pagespurported benefits of Genetically Modified Organisms (GMOs), there is considerable debate surrounding their use. In the public sphere, beliefs concerning GMO tend to be dominated by two markedly opposing narratives – and it seems that one can only be in one of two camps: I. Critics of GMO: Arguing that the use of GMO is not justified as it is unnatural, unsafe, and may have long term environmental impacts. II. Advocates of GMO: Arguing that GMO is a technology that is justifiably used and an opportunityRead MoreGenetically Modified Crops : Hope For Developing Countries?1194 Words   |  5 Pagesidentifying and addressing prominent counter-arguments, displaying a localized need of the technology (soon to be globalized), and examining how harshly GMOs are criticized with specific comparisons to deforestation and other climate change variables. The authors intended audience is educated voter populations and politicians, in order to make an impact on the GMO debate. Herrera-Estrella s and Alvarez-Morales article serves its purpose, to educate and persuade those involved in the politically chargedRead MoreGenetically Modified Organism s ( Gmo ) Essay2226 Words   |  9 PagesOrganism’s (GMO) have been gaining public spotlight as scrutiny over their safety has recently been popularized. A GMO is defined as â€Å"an organism whose genetic material has been altered by means of gene tic engineering,† (Dictionary.com, 2015). The debate for both sides of the argument have been detrimental to the other and have yet to be copiously presented without a bias. While any organism can be genetically modified, the unrest between consumers and producers is centered around GMO crops becauseRead MoreGenetically Modified Organisms Are Harmful For The Overall Health Of The United States1756 Words   |  8 PagesGenetically Modified Organisms are harmful to the overall health of the United States and is an area of concern that warrants more attention. Natural News GMO Corn There are many issues that face Americans today and need to be addressed, though some that are more pressing in nature. One of which is of great concern being the large presence of GMOs in our daily diets,. In the rush to produce more food cheaper and make it resistant to disease and pest, we may have opened ourselves to unknowns. We haveRead MoreGenetically Foods ( Gmo ) Hurts The U.s.2462 Words   |  10 PagesGMO Genetically Engineered foods (GMO’s) hurts the U.S. as a whole from multiple aspects, goes against what people want, therefore the production of these foods needs to be eliminated. Genetically modified organisms make up a lot of the food in the U. S market today. Creating genetically modified organisms harms the environment. Consuming GMO’s can cause harmful health risks in the long run. Not labeling GMO’s the FDA is creating financial destruction in industries. The FDA seems to not put theRead MoreCommon And Extremely Successful Tactic Essay1734 Words   |  7 Pagestime to think over their true intentions of the purchase. This tactic has been observed as being successful. Considerably, the military is one of the largest organizations that is also incredibly efficient in their forms of advertising. Their most persuasive tactic includes the fact that they will provide an individual with a group to identify with. Social Identity is an important basic necessity for every human (Ashforth). The promise of being accepted into a group and given a prestigious label is

Mimicking Insider Trading Free Essays

Introduction Much of the field of finance Is focused on creating abnormal returns?that is to say. Returns that are different from what one might expect them to be based on various characteristics of the investment?by identifying so-called â€Å"inefficiencies† in the stock market. Perhaps one of the most well-known strategies for taking advantage of these Inefficiencies, a strategy widely discussed In academic as well as Industry literature, is following the trades of company insiders. We will write a custom essay sample on Mimicking Insider Trading or any similar topic only for you Order Now In the united States, company insiders are required to report to the SEC any time they engage in a purchase or sale of their rim’s stock. Within two business days following the date of the trade. This Information, once reported to the SEC, Is subsequently made available to the public almost immediately, allowing outsiders to see exactly how insiders are trading. When insiders trade based on material non-public information and earn abnormal returns, it is a violation of the strong form of the Efficient Market Hypothesis, which itself is not backed by any significant emplace evidence, However, If outsiders are able to earn abnormal returns by mimicking Insider trades, this becomes a violation of the ideal-accepted semi-strong form of the Efficient Market Hypothesis, which states that the price of a stock incorporates all publicly available information. The academic literature contains many studies which attempt to generate excess returns by replicating Insider trades, with varying degrees of success. While some early studies (Gaffe 1994, Finery 1996) claimed that outsiders were indeed able to create a small amount of excess returns, a later study by University of Michigan Professor H. Negate Shun concluded that once these trades accounted for transaction costs, the excess returns would be nearly zero. Later studies by Rezone and Zamia (1988). Line and Howe (1990) and Frederica, Gregory, Mahatma and Tones (2002) have also reaffirmed that transaction costs depleted all the excess returns from these studies. (1)On the other hand, several studies conclude that it is possible to earn excess returns by applying a â€Å"mimicking strategy’ selectively. For example, Lakefronts and Lee (2001) conclude that if an investor mimics only large trades and only by the top management of a company (excluding board members, majority shareholders and other company employees), an outsider could in fact generate excess returns. Other theories suggest that It Is possible to successfully replicate Insiders trades by using the strategy in markets outside the US, such as in the Italian, German and Spanish markets. [l] A critical factor in determining whether an outsider will profit from replicating the trade of an insider is the motivation behind the trade. Insiders are likely to engage In Insider trades for a number of reasons, not all of them connected to Inside Information on future firm performance. An Inside trade that Is ambulated by liquidity or diversification needs is unlikely to contain any â€Å"predictive power and exult in any abnormal return for an outsider. While it’s relatively obvious that the Insider’s motivation In making an Inside trade Is a key factor in determining how successful the outsider’s mimicking trades will be, existing academic literature has, for the most part, been unable to take advantage of this factor to increase returns on test portfolios. Were outsiders able to identify the motivation behind the insider’s it might become possible to create a portfolio of performance-predicting trades, which would generate abnormal returns. In a 2007 paper entitled â€Å"Decoding Inside Information†, (Cohen et al. Harvard University and University of Toronto professors test an innovative and original approach to mimicking insider trades. By using a simple algorithm, the strategy attempts to separate insider traders into two categories: opportunistic traders and routine traders. Specifically, the algorithm involves analyzing the past three years of an insider’s trading history, and identifying as routine traders those who had made inside trades in the same calendar month for three consecutive years. The remaining insiders, approximately, 45% of Cohen et al. ‘s sample, is identified as opportunistic traders. Insiders without three years of trading story are discarded from the sample entirely. Cohen et al. Test whether the trades made by these â€Å"opportunistic traders† contain any predictive power relating to firm performance, and how the trades of â€Å"routine traders† perform in comparison. Methodology In order to test the efficacy of this strategy, the authors construct four test portfolios at the end of month t, comprised of month it’s: a) Opportunistic buys b) Opportunistic sells c) Routine buys d) Routine sells At the end of each month, the portfolios are rebalanced to reflect the routine and opportunistic inside trades and buys in that month. The objective of using these oratorios is to test whether or not there is any added value in separating routine traders from opportunistic traders, using the algorithm designed by the authors. In other words, the study tests whether following only those insiders identified by the algorithm as â€Å"opportunistic† could yield a positive alpha, and how this compares to the returns of the â€Å"routine trader† portfolios. As noted above, the SEC requires insiders to report transactions within two business days following the trade (prior to the enactment of Serbians-Solely in 2002, insiders had until the 10th day of the following month to report the trade). In the sample used by Cohen et al. , nearly all of the trades were reported on the day on which the insider made the trade. (2) As such, by the time the portfolios are rebalanced at the end of each month, information on these inside trades would have been publicly available knowledge. Nonetheless, it is important to consider the potential implications of this on the results of the strategy. Predictive Ability of Routine vs. Opportunistic Trades In order to determine whether the â€Å"opportunistic† traders, as defined by Cohen et al. s algorithm, actually contain any predictive power, the authors run pooled aggressions of returns on indicators of routine and opportunistic trades in the prior month, with future one-month returns as the dependent variable. The findings reveal that both the buy and sell opportunistic trades contained much greater predictive power than routine buys and sells. The results reveal that opportunistic buys yield average returns 0. 90 basis points (with a t-statistic of 4. 46), 76 basis points higher than that of routine buys. With a p-value of 0. %, the difference is significant. It is much better indicator than considering all insider buys. Testing opportunistic versus outing sells exhibits similar results, with a coefficient of -0. 78 in the regression of opportunistic sells, and 0. 04 in the regression of routine sells. The difference is again significant with a p-value of 0% (F=29. 30). See Table 1 in Appendix for full results. Alpha The authors test for the presence of abnormal returns using several different asset pricing models, including the CAMP and the Fame-French model, as well as others. While the tests use two different types of portfolios, one value-weighted and one equally weighted, the findings are similar and the results below will therefore focus only on the equally-weighted portfolio. In the case of opportunistic versus routine buys, the results indicate monthly CAMP alphas of 1. 51% (with a t-ratio of 5. 89 and p- value 1%) and 0. 92% respectively. Examining the results with a more complete model, such as the Fama-French, reveals similar findings with opportunistic buys versus routine buys generating monthly Fama-French alphas of 1. % (t-ratio of 5. 49) versus 0. 64%, respectively. Opportunistic versus routine sells leads to similar results. The monthly CAPM alphas for opportunistic sells and routine sells are -0. 30% and 0. 2% respectively and monthly Fama-French alphas of -0. 21% and 0. 43% for opportunistic and routine trades respectively. It is therefore clear that while the opportunistic sells are negatively correlated with the market, the routine sells are not. The results obtained with the others risk models lead to the same results. The results indicate that longing opportunistic buys, and shorting opportunistic sells could yield significant excess returns. An equally-weighted portfolio of opportunistic buys and sells yields a monthly CAMP alpha of 1. 81%, and a monthly Fame-French alpha of 1. 41%, with respective t-ratios of 5. 6 and 5. 04. Based on these results, it is evident that by separating routine and opportunistic trades from trades motivated by liquidity and diversification needs, and following only the former, outsiders may be able to significantly outperform the market. Distribution of Returns While the study by Cohen et al. Goes not provide much information on the characteristics of the distribution of returns on the various portfolios used in their study, looking at other sources which study insider trading strategies may provide some insight into this issue. This information is highly relevant to risk-averse investors, to whom the probability of losses may be as important as the expected return. I n Investment Intelligence from Insider Trading, H. Negate Shun finds that the probability of loss (defined as earning lower returns than an investment in the market portfolio) on a single mimicking transaction is 49. %, excluding transaction costs, and 51 . 7% when transaction costs are taken into account. (3). When combined with the study findings on average return, which falls in the 2-3% depending on the minor variations in the study various tests of the strategy, the approximate 50-50 arability of loss indicates a positive-skewed distribution. As such an investor must mimic a large number of insider trades in order to earn returns near the average of 2-3% in Shunt’s findings. While the relatively high probability of losses may seem risk averse investors, as it indicates a smaller probability of extreme negative losses. Although there are substantial differences between Cohen et al. ‘s study and Shunt’s study?likely the most important of which is that Shun does not differentiate between routine and opportunistic insiders as Cohen et al. Do?the results from Shunt’s study may be an indication that the distribution of Cohen et al. ‘s results are positive-skewed as well. Indeed, it is likely that following only opportunistic traders would both reduce the probability of extreme negative losses, as well as increase the probability of extreme positive gains, thereby resulting in an even further positive- skewed distribution. In addition, the high probability of loss illustrated in Shunt’s findings would likely also be reduced when following only opportunistic traders. Trading Costs and Refinancing Because this strategy involves relatively active trading, its costs (commission fees and id-ask spreads) will undoubtedly be higher than those of a buy and hold strategy. That said, when the strategy is applied selectively, as is the case in the Cohen et al. Study (I. E. By mimicking only opportunistic insiders rather than all insiders) trading costs can be significantly reduced. In Cohen et al. ‘s study, the test portfolios are rebalanced at the end of every month, based on that month’s opportunistic insider trades. In both the opportunistic sell and opportunistic buy portfolios, outsiders would be able to profit by shorting and buying, respectively, holding for a month, and balancing at the end of every month. Monthly refinancing requires immediacy, and the stocks would need to be purchased and sold using market orders. The outsider would thus incur the additional costs off larger bid-ask spread. Outsiders may potentially be able to rebalanced less frequently, submitting limit orders instead of market orders, holding on to the stocks for longer periods of time, and still profit. According to Shunt’s findings,(4) in the case of an â€Å"insider buy’, the profits are realized over the course of several months. (5) As such, the outsider may be able to educe refinancing to twice a year, and hold on to â€Å"insider buy’ stocks for 6 months. In this case, the outsider could likely afford to submit a limit buy order and wait a few days before it executes. However, this does not apply in the case of an â€Å"insider sell†, as there is no evidence to indicate that these profits are realized over a period of many months. As such, monthly refinancing it necessary. Barriers to Implementation In reality, while the strategy would certainly not be difficult to follow for an institutional investor or a sophisticated individual investor, it would perhaps present mom challenges for the average investor. In Investment Intelligence from Insider Trading, Shun advises that an investor mimic close to 100 insiders, in order to reduce the probability of loss to an acceptable level. 6) Granted, applying this to a strategy which differentiates between opportunistic and routine traders would likely require an outsider to follow a smaller number of insiders in order to obtain a reasonably limited probability of loss. Another potential barrier for the average investor is differentiating between routine and opportunistic traders. While Cohen et al. Er e able to accomplish this, as would institutional and sophisticated investors, it resources to successfully differentiate between the two types of insiders. While these issues may not be particularly large obstacles, they do present additional considerations and challenges for the individual investor. Insider Trading and Serbians-Solely An interesting point to consider is the impact of changing SEC reporting regulations on an outsider’s ability to profit from following insider trades. A Stanford University study (Zealand 2005)(6) tested the success of a generic â€Å"mimicking strategy’ in the ears leading up to Serbians-Solely, versus the success of the strategy in the years following the enactment of the new legislation. The study found that in the first 27 months, it was possible to generate excess returns of up to 17. 67%, including trading costs. After this period, however, it was no longer possible to obtain these returns, likely because the market had fully adjusted to this new source of public information. Looking forward, it is possible that any further changes in SEC regulation make information more readily accessible with a smaller delay, will present investors with another opportunity to earn additional returns before the market is able to react. Strategy Comparison While Cohen et al. Are the first to attempt to generate excess returns by differentiating specifically between routine and opportunistic traders, a number of studies in the academic literature have sought to increase returns from following insider trading by applying the strategy in various other selective ways. Although the â€Å"routine vs.. Opportunistic† strategy appears to be the most successful thus far, several other versions of the strategy have also managed to create excess returns. A duty conducted in Sweden (Ayatollah and El-Marin, 2005) reveals that replicating insider trades of stocks listed on the A-List and Attract 40 (the Swedish stock indices reserved for larger companies with significant operating history) does not generate abnormal returns at a significant level. On the other hand, replicating buy transactions of â€Å"insider clusters† (multiple firm insiders making similar trades in the same time period) of firms trading on the O-list (designated for companies which lack the requisite operating history or size for listing on the more established lists) could generate abnormal returns up to 33. , excluding transaction costs. By selectively applying a mimicking strategy to smaller companies rather than larger ones, to buy transactions rather than sell transactions, and to insider clusters (numerous firm insiders making same-type trades in a given period of time) rather to individual investors,(7) an outsider may be able to generate excess return s. The study conducted by Shun, which examines 60,000 insider transactions on the NYSE from 1975-1981, reveals similar results. Over the course of 100 days, the buy transactions exhibited excess returns of 3%, while the sell transactions underperformed the racket by 1 . %. In other words, an outsider may have been able to profit by going long â€Å"inside buys†, but not by shorting â€Å"inside sells†. He also found that there has been a greater amount of uninformative sell transactions that have taken place in the ass, compared to the ass-ass(8), it could be that since sass, the amount and frequency of stock compensations has greatly and continuously increased,(9),thus it into routines and opportunistic you would be able to keep the informative transactions and be less affect by this tendency. Shunt’s results also indicate that placating insider trades in smaller firms generated higher excess returns than insider trades in larger firms. (10) It may be easier to generate excess returns by replicating insider trades in smaller firms, because these insiders are typically subjected to less scrutiny by analysts and by the media than their counterparts in larger firms. As such, they may be more willing to engage in profitable, â€Å"performance- predicting† trades than insiders at larger firms. However, it’s also possible that these trades generate higher expected returns simply because they have increased risk. In order to compensate investors for this risk, investments in smaller firms can be expected to generate higher returns, as reflected in the Fame French model. Similar to the Swedish study, a study conducted by Jenny et al. (1999) (7) also found replicating insider cluster transactions to be more profitable than replicating individual insider transactions. The rationale behind this?that same-type transactions from multiple firm insiders within a given period is likely motivated by insider knowledge rather than by investor-specific needs–is fairly obvious. 11) Cohen at al. Observe similar results in Decoding Inside Information. The study findings indicate that a one- standard deviation increase in the log number of opportunistic sells translates into a decrease in future returns of 29 basis points per month (excluding the specific days each year when firm executives receive stock compensation and subsequently liquidate some of their stake in the firm). (12) By differentiating b etween routine and opportunistic traders as Cohen et al. O, outsiders can avoid these routine sells, and mimic only informative inside clusters. Looking Forward Although Cohen et al. And others have illustrated various ways in which outsiders ay be able to generate excess returns by mimicking insider trades, several potential obstacles may stand in the way of this strategy in the future. As with any market inefficiency, increased popularity of the strategy as well as increased accessibility to information on insider trades may cause a decline in future returns. Today, there are already a multitude of web sites that allow outsiders to track insider trades, making information about such trades readily accessible to the average investor. As a growing number of outsiders attempt to replicate these trades, it is likely that it will come increasingly difficult for investors to mimic trades in time to capture any gains. Another potential threat to this strategy is the proliferation of endowment assurances, which firm insiders use to take advantage of offshore solutions in order to hide their transactions. Insiders are therefore able to trade stocks and derivatives of companies â€Å"anonymously’, and avoid reporting insider trades to regulators. This would obviously prohibit outsiders from gaining access to and mimicking insider trades. (13) Lastly, increased penalties for insider trading could also threaten the success of the strategy. Cohen et al. How that during periods with increased cases of investors being prosecuted for insider trad ing, the number of trades identified as â€Å"opportunistic† decrease. In other words, insiders take seriously the risk of being caught and charged. How to cite Mimicking Insider Trading, Papers

World Wide Opportunities on Organic Farms †MyAssignmenthelp.com

Question: Discuss about the World Wide Opportunities on Organic Farms. Answer: Introduction. In this paper, the researcher explains the key concepts surrounding the sustainable restaurant industry, reviews the relevant theories that apply to the field as well as reviewing past studies that have been done in the past about the same area of study. By doing so, the researcher will establish the gap that this particular study aims to bridge. According to Bobbitt (2012), this is a type of restaurant that has put measures in place to ensure that there is minimal waste production, preparing and selling healthy organic foods and through other ways like energy conservation, greener lighting, architectural design and much more. However, this study is narrowing down to sustainability through the provision of organic vegan food, which has proved to be a lucrative opportunity for many restaurants in Australia. As asserted by Rouse (2018), this is a new farming method which involves growing foodstuff in layers that are vertically stacked. It may or may not use soil since there are alternatives such as hydroponics. Vertical farming is mostly done in areas where arable land is not sufficient or in cities where there is a lot of pollution. It is one of how this study aims at using to produce safe organic foods in Australian cities. The Fresh Farm restaurant will embrace vertical farming to ensure that it cuts costs on buying vegan foods that are expensive as well as become self-reliant. According to Hackett (2018), this is a lifestyle whereby a person chooses to be a strict vegetarian by avoiding all types of food derived from animals such as meat, dairy products, eggs and any other food processed using animal products. Vegans eat foods such as legumes, vegetables, cereals legumes and fruits. With the rise of the use of manufactured food and lifestyle diseases, most people are finding it easier to avoid them by embracing holistic and healthy habits such as feeding on organic food; vegan feeding is among the top-three nutrition trends in Australia. Most people are ditching processed foods and adopting healthy habits such as vegan feeding which is considered as adopting vegan. Feeding is viewed not just as a lifestyle but rather as a value of healthy living. Griffith, Livesey and Clayton (2010), did research that found out that people who have values associated with healthy living are more likely to buy vegan food. That is because such people will associate their values with things that are basic such as the types of food they buy. This is the reason why many vegan restaurant startups such as The Fresh Farm restaurant does not view venturing into the vegan food business as just a mere opportunity because it is a core issue to vegan diet consumers. Research by (Aertsens et al., 2009) shows that if someone values something, they will be willing even to spend more to purchase it. This is because the products give a picture of who they are and their values as well. Market research on food trends. A lot of market research about food trends in Australia has been conducted to establish the viability of sustainable restaurants. According to modern foods trends report as compiled by Hogan (2017), the statistics show a promising future for sustainable restaurants. First, 85% of Australians are striving to buy healthy food. This sees each household spending at least AUD $4515 to follow special diets. The exposure to a lot of information through social media has steered the change in food preferences. Interestingly Australians spend $21 on home deliveries, $89 on home deliveries and $377 on buying groceries per month. This shows that there is a booming market for sustainable restaurants in the country. Sustainable restaurants are likely to succeed because a big number of consumers nowadays buy organic foods that promote their wellbeing. A study by (Barber, 2010) shows that the rise of cancer has acted as a persuasive tool to urge people to feed on organic foods that help in maintaining their health in a very big way. On the other hand, consumers of organic food do not seem to be sensitive to the prices of such food as compared to the cheap processed food. These benefits range from the holistic health benefits that these foods promote in the human body, taste as well as the safety of the food, many processed foods are said to contain many chemicals, some of which may be harmful to the body. This is according to (Hamzaoui, Essoussi and Zahaf, 2008). He further argues that credibility of organic foods continues to attract more consumers each day. This is why there has been a robust growth in the number of sustainable restaurants in Australia. Current business research shows that plent y of market research is aimed at ensuring sustainable development. This is being achieved through sustainable restaurants that are focusing on selling organic foods produced through vertical farming. Vertical farming is a new technique used to grow and harvest organic foods in vertical stacked. It is commonly used in places where arable land is not sufficient or in situations where the owners do not want to engage in the tedious process of food production using the traditional method. Traditionally, food production has been very costly and labour intensive. The use of environment- polluting machinery and chemicals has always worsened the already worsening environment. (Viking and de Boer, 2004). The volumes of production have also been a subject of many factors such as water availability and prevailing climatic conditions. Vertical farming is a complete revolution that aims at utilizing no land apart from aerial space in densely populated areas. Market research shows that the growth in population is shrinking arable land. (Griffith, Livesey and Clayton, 2010) States that increase in demand for the consumption of unprocessed bulk products is a factor that led to the innovation of vertical farming. The sustainable restaurants are also a result of the environmental conservation campaigns that are aiming at transforming food production. The triple bottom line for sustainable restaurants is using environmentally friendly products equipment. The aim is normally to cut costs and preserve the environment. They are a big part of balancing the ecosystem because they dont emit any poisonous substances into the environment. Sustainable restaurants are going to be the next big thing if sufficient research and funding will be put into such startups (Holden, 2017). They are a complete transformation to food production, resource conservation and utilization of locally available resources. According to Panichelli and Gnansounou (2015), agricultural emissions contribute to 78% in Australia. This makes the traditional agricultural methods unsuitable due to environmental pollution. Vertical farming cancels that out because it doesnt utilize any soil or machinery. It is environmentally friendly and utilizes no soil. There are zero harmful emissions from vertical farming. Vertical farming can easily utilize renewable sources of energy such as solar systems and photovoltaic systems for lighting purposes. These sources are the most suitable for areas where arable land is not easily available. The increasing demand for organic food is an opportunity that vertical farming aims to tap. Vertical farms utilize very small spaces to grow a wide variety of food products. This gives the restaurants a chance to grow as many products as possible. This ensures that the scope of products being offered is wide enough to satisfy consumer needs. Risks of vertical farming There is no existing success history of large-scale vertical farming. This has created a lot of negative criticisms from competing businesses (Maycock, 2008). Competitors of this technology claim that the concept may not work especially in areas where demand is high while production of the food products is low. Vertical farming has a history of investing in the very expensive agricultural products. This makes the concept only feasible for the few rich people in the society who can dispense large sums of money to buy the organic food products. The fresh farm being a startup, may need to invest in growing organic plants that can be consumed by a wide range of buyers from the Darlinghurst region. On the other hand, there are also opportunities and risks that are facing the sustainable restaurant industry. In as much as there is a great opportunity window, there are also some risks that may hinder the growth of the same. The growing market for vegan foods consumers in Australia is a brilliant opportunity for sustainable restaurants to tap in. Recent research shows that the consumers keep increasing in number, making the business a boom and a wise opportunity to invest. Consumers of vegan dishes are aware that the food products are cheap, this makes it easy for restaurants to sell products without resistance from the buyers. Sustainable restaurants have a niche of loyal clients. Sustainable restaurants use cheap and available products to grow their food products (Foundation, 2018). Growing the food products dont need any land or machinery. This makes it simple for them to source foods without spending much. It is an opportunity that restaurants can exploit to create and sell healthy organic foods that are hard to produce regularly. Risks of sustainable restaurants Vegan foods consumers are highly careful with where they buy food and are likely to check credibility. Startups like the green farm may have to go through all the verification processes for consumers to believe in them. Verification can be one through being registered with the union of green hotels in Darlinghurst region. The certification plays a big role in notifying the consumers of product authenticity. It may be hard to source supplies before the restaurant can start harvesting from their vertical farms. Outsourcing all food products for the restaurant may not be cost-effective for the startup. References Aertsens, J., Verbeke, W., Mondelaers, K. and Van Huylenbroeck, G., (2009) Personal determinants of organic food consumption: a review.British Food Journal, 111(10), pp.1140-1167. Barber, N., (2010) Green wine packaging: targeting environmental consumers.International Journal of Wine Business Research, 22(4), pp.423-444. 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