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Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
Ilp306 seniors assignment
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Ilp306 seniors assignment

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This is a sample assignment for ILP306 by your senior. Don't copy anything from it except for the format or you will fail due to plagiarism! This is meant for Reliance College UoG Degree students who …

This is a sample assignment for ILP306 by your senior. Don't copy anything from it except for the format or you will fail due to plagiarism! This is meant for Reliance College UoG Degree students who are taking ILP306 NBD. Copyright(c) 2011 Reliance College All Rights Reserved.

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  • 1. MODULE ASSIGNMENT COVERSHEET MODULE ILP 306 CODEPART 1Student Name:Student Number:Module Tutor:Module Title / Assignment Number: New Business Development / 2Date Due / Submission Date: 02.02.2009Extension Date (including authorising signature):Please note this is a “provisional” mark: to be ratified @ Examination Board of StudiesILP306 ASSESSMENT 2 FEEDBACK SHEET 60Name First marker: John Colvin Second marker: Mike Deakin0.0. Executive Summary Present.
  • 2. 1.0. Company Description An interesting and innovative idea that probably addresses issues throughout the industrial world. At times your use of English does hamper your ability to explain the concept that it clearly shows an enthusiastic and enquiring mind throughout. You enthusiastically described those the benefits of drinking herbal teas and the development of your cafe concept -- is providing purely to see sufficient to develop your sales?2.0. Market Environment Evidence of reading and research and an ability to make at times perceptive analysis. I would like to seem more applying to detail and on the ground planning of marketing particularly as across relates to sales and the phasing of sales throughout the year. Your debts of research on the macro level is excellent, however micro factors need to be further developed although you to reflect upon the core competencies of the internal environment. I would like to see in a great consideration of launch marketing activities.3.0. Management Plan The management and the operations plan (.4) are competent in that they address the areas that are required and to a degree there is evidence of consideration of nine detail. However, at times there is a mechanistic presentation of issues that may not be quite relevant to a small business start-up. Some valid consideration albeit often at the micro level in both the management and operations plan4.0. Operations Plan5.0. Financial Plan Present, with considerable evidence of the assumptions and sales mixes that underpinned the forecast. Good, nice level of detail and well laid out.6.0. Contingency PlanOverall Comments The really interesting idea that shows a good degree of knowledge and understanding in identifying an opportunity that will meet the needs of your customers -- reducing stress, providing a relaxing environment to enjoy healthy organic beverages largely by women -- but, perhaps hampered by language restrictions you have not develop the concept to the required depth. You do show a sound level of knowledge and understanding of the principles and models of movies development and at times your analysis and development of the concept (synthesis) is sound the and there is obvious evidence of reading and research. However your writing style/presentation at times lets you down and, in common with a number of your colleagues, too much of your content is in the appendices. Overall, the competent effort and the development of the concept that probably (prior to the crunch) would also succeed in the UK. Page 2 of 70
  • 3. An interesting idea that you clearly develop with great interest and enthusiasm. Unfortunately thats at times your two enthusiastic and make some ambitious claims for your product/service. However, in most areas you show a degree of knowledge and understanding an endeavour to apply these principles your client activity. You could usefully work on developing a more grammatically correct English. Mark Knowledge & Understanding Analysis/Synthesis Reading and Research Writing Style RangeWeighting 35 35 20 1085%+ As for 76-84% but presented in such a way that it cannot be faulted76-84% Excellent subject knowledge and understanding Evidence of ability to make a sustained argument Evidence of the ability to range widely and Lively and articulate writing that shows of key issues and debates. on the basis of evidence in original terms. eclectically for information. evidence of knowledge, enthusiasm for Excellent application of models employed Evidence of an ability to synthesise information in Very effective deployment of reading in the material and strong control of the a way that shows a full grasp of the material. supporting arguments. arguments being deployed. Strong evidence of appropriate critical evaluation of a wide range of evidence incorporated into excellent plan70–75% Evidence of a wide knowledge of relevant Strong evidence of ability to make a sustained Evidence of appropriate selection of material Use of English that makes the meaning theory applied in a critical and thoughtful way. argument on the basis of appropriate evidence. from an appropriate range of sources. clear to the marker and shows control of Evidence of full and precise knowledge of the Strong evidence of ability to critically evaluate Reading used critically and deployed the arguments being deployed. possibilities and limitations of the models being evidence and synthesise appropriate effectively in supporting arguments employed. generalisations from it to produce a focussed marketing plan with few errors60–69% Good subject knowledge and understanding of Evidence of ability to make a sustained argument Appropriate reading with effective use of a Clear and correct usage with very few key issues and debates. on the basis of appropriate evidence. wide range of relevant sources. imprecise statements. Evidence of a full understanding of the Evidence of ability to critically evaluate evidence Effective deployment of reading in supporting possibilities and limitations of the models and synthesise appropriate generalisations from it arguments. employed. to produce a good marketing plan in most areas. Evidence of critical understanding of the application of relevant theoretical material to the chosen organisation.50–59% Sound subject knowledge. Evidence of ability to make an argument on the Evidence of selection of appropriate material Correct English usage with few Understanding, but not evidently critical, of key basis of evidence appropriate to the theoretical from an appropriate range of sources, with imprecise statements. issues issues being discussed. coherent structure and clear argument. Evidence of an understanding and application Evidence of the ability to collate information, weigh Satisfactory deployment of evidence to of the models used and how they are relevant to up evidence and construct general conclusion support argument. the topics in the assessment task. about the information expressed in a competent well written plan.40–49% Evidence of some knowledge of appropriate Some evidence of analysis but criteria used not Evidence of selection of mainly relevant Correct English usage, but with some theory, but lacking depth. clear. material from a range of sources, but lack of precision. Limited understanding of key issues and Evidence of preparedness to state a position but evidence not deployed accurately. debates. Lack of application to chosen with limited use of argument and appropriate Narrow selection of material. Use of English in such a way that the organisation. evidence expressed in a marketing plan with minor Limited evidence of research. marker cannot understand some of the omissions and errors points made, thus limiting the mark by the material that can be understood. Mark Knowledge & Understanding Analysis/Synthesis Reading and Research Writing Style Page 3 of 70
  • 4. Range30–39% Evidence of some relevant knowledge, but with Evidence of a general, but rudimentary, grasp of Scant or superficial reading. Some incorrect use of English. serious omissions. the planning issue with only a limited ability to No evidence of research beyond directed Failure to use technical terminology Little understanding of key issues and debates. sustain this response in a marketing plan with reading or lecture notes or WebCT. appropriately. Some evidence of appropriate deployment of significant omissions and errors. Over-reliance on a single textbook source, language and concepts from the topic under without analysis, criticism or interpretation. Failure to adhere to specified format for consideration. assignment.20–29% Evidence of some knowledge, reading and Superficial reading of inappropriate sources. Significantly flawed use of English with material, but these ideas are marginal to Evidence that the assessment task has been Failure to use reading appropriately in little coherence or structure. assessment task set. And not applied in any understood but that there is little development of support of argument. real world sense. the plan and the conclusions drawn are erroneous Inadequate understanding of subject with in light of the evidence presented. significant errors and omissions.1–19% The work contains significant misconceptions and basic errors and shows little familiarity with the concepts and language expected of such a project Seriously flawed with no evidence of analysis or synthesis.Tutor’s signature………………………………………Date…………………………Second Marker (if appropriate): …………………….Date………………………… Provisional Mark Subject to approval by the Board of Examiners Page 4 of 70
  • 5. Initial ProposalCompany Name: SPA CaféAn initial Proposal for new business development: The café is serving variableflower tea in the period 1.05.2009 – 30.04.2010.Presented by: Chew Wan Chin
  • 6. Contents PgExecutive summary 4-51.0 Company description 5 1.1 Rational for development of business 6 1.2 Product / services description 6-7 1.3 Identification of Market Niche 7 1.4 Mission Statement 72.0 Market environment 2.1 Environment Scan 8 2.2 SWOT Analysis 8-9 2.3 Marketing Objectives 9 2.4 Marketing Strategy 9 2.4.1 Marketing Mix strategy 9-12 2.4.2 Positioning statement 12 2.5 Tactics and programs 12 2.6 Marketing Budget 133.0 Management Plan 3.1 Business structure 13 3.2 Management structure, function and rationale 14 3.3 Personnel and remuneration policies 14 3.1.1 Recruitment policies 14 3.1.2 Employees training program 14-15 3.1.3 Employees incentive 15 3.4. Creditor & debtor policies with clear rationale 154.0 Operation Plan 4.1 Location 16 4.2 Suppliers 16 4.3 Equipment needed and Set-up costs 16 4.4 Standard Operational Procedures 16-17 4.4.1 Key point of services 17 4.4.2 Selling method and cash up procedure 17 4.4.3 Access to website 17 4.4.4 Reservation 17 4.4.5 Customer complaint 18 4.5 Quality Assurance Procedures 18-195.0 Financial Plan 5.1 Start up Costs 19 5.2 Cash flow forecast for one year 19 5.3 Profit and Loss account for one year 20 5.4 Break even analysis 20 Page 2 of 70
  • 7. 6.0 Contingency Plan / Business control 6.1 Creditor policies 20 6.2 Personal and personnel position 20-21 6.3 Marketing Controls 21References 22-25Appendix 26-65Appendix A – Sample Menu 26-27Appendix B – Target market 28Appendix C – Population distribution by states and territories 29Appendix D – Population age group 30Appendix E – Environment scan 31-33Appendix F – SWOT analysis 34-35Appendix G – Design of customers reward card 36Appendix H – Marketing strategy 37-38Appendix I – Physical environment of café 39-40Appendix J – Marketing tactics 41-42Appendix K – Marketing tactics schedule 43-44Appendix L – design of flyer 45Appendix M – Management structure 46Appendix N – Recruitment policies 47-50Appendix O – Training of greeting customers 51Appendix P – Salaries and reward for staff 52Appendix Q – Map of BayAvenue 53Appendix R – Suppliers 54Appendix S – Equipment needs and set up costs 55-56Appendix T – Key point of services 57Appendix U – Reservation format 58Appendix V – Cash flow assumption 59Appendix W – Revenue assumption 60-63Appendix X – Cash flow forecast 64Appendix Y – Profit and loss 65 Page 3 of 70
  • 8. Executive summarySPA café will be a café reflect on trend of consumers changing the behaviourof diet, moving from stimulating drink to healthy drink. The café is servingvariable flower tea. My flower tea is does not contain caffeine, cholesterol,preservative, artificial colour and also flavour essence, so it become healthierand nature. The café is not only selling the tea but more in services, itprovides a healthy and relax environment for customer. SPA café will full ofaroma which can provide physical and mental relaxation.SPA café will be located BayAvenue at Queensbay, Bayan Lepas. It is themain industrial hub of Penang, and has a population of about 141000 people.Because the café are providing many different beauty treatment efficacies, soit will obtain female favour, especially white collar. By this, SPA café majortarget is on female market, Chinese and middle upper level of people.There are currently no this kind of café in this area, however have otherorganizations in the city that sell similar service to that of café. This will nothave an effect on the success of café as we will use many methods which willdifferentiate from competitor.Through differentiation strategy, my café provide customization, we havealimentation consultant to help different constitution, age and sexual ofconsumer to analyse and select which tea are suitable for them. Beside thatwill provide special dessert which cannot find in the market and we willemploy a high quality staff.The main finance contribution will be the director (RM50000) and additionalfinancing will be loan from bank (RM50000). Page 4 of 70
  • 9. The primary objective is not only serves the flowers but also provide qualityservices and relax environment, by using only the natural ingredients fromaround the world in order to meeting the need of customers and to make eachand every visit to SPA café memorable, happiness, warm and deliciously fun.1.0 Company descriptionSPA café will be a café reflect on trends of consumers changing thebehaviour of diet, moving from stimulating drink to healthy drink. According toDoctor Maoshing (2008) state that tea is the most commonly consumedbeverage in the world after water, and for good reason. Whereas coffeehotwires your nerves and depletes your life force in the long run, tea gentlylifts your energy, and offers many health benefits. The café is serving variableflower tea. SPA café will be trade in sole proprietorship own by Chew WanChin. It will be located at Pulau Pinang of Malaysia and the design of cafe ismodern and high – class. In addition will ignite aroma, decorate by usingdecoration flower, and paint on lilac color. The aim is to provide a healthy andrelax environment for customer, since lighter versions of purple, such aslavender and lilac, will bring the same restful quality to room and the essentialoil is drawn into people lungs, supplying physical benefits as well. SPA cafébusiness hours will be open from 10.30am – 10.30pm six day a week, beclosed on Monday. Page 5 of 70
  • 10. 1.1 Rational for development of businessAccording to Phua Kai Lit, the financing and delivery of healthcare services ischanging all over the world today. In today market, the trends are being aliveand people are more stressful. Especially female, because of their job andalso their personal reason, their life are more stressful and do not have agood place and method to release their stress. There is a growing need aplace for them to entertain and this growing market is the reason SPA caféwill succeed. SPA café aims to provide people with a relax environmentwhere they also can serve with healthy food and drinks and also enjoy theservice.1.2 Product / services descriptionThe Café will be offering variable flower teas which can be single flavour ormixed flavour and also will help the customer to choose the tea suitable forthem. Besides offering the flower tea, it also serving the dessert that makesfrom tea, for example teas flavour cake, ice cream and other (refer appendixA). SPA café also will follow the seasonal change and offer tea and dessertwith secret recipe, for example the special tea for customer to maintain theirsmooth skin in hot day. My flower tea is does not contain included caffeine,cholesterol, preservative, artificial colour and also flavour essence, so it isbecomes more healthy and natural. In addition, in special festival will offer theextra special dessert according to the festival, for example moon cake festivalwill offer flower tea moon cake. Other than that, it will also provide wirelessinternet access for customer. Furthermore SPA café is not only selling the tea Page 6 of 70
  • 11. but more in services, it provides a healthy and relax environment forcustomer.The benefits of drinking flower tea embrace are to reduce stress, for beauty,improve digestive system, and remove excess fat, for slimming, relaxationand other functions. The SPA café is full of aroma which can providephysical and mental relaxation. It is a new experience of spa other thanmassage, sauna. Besides the environment of café will let consumers feelromantic, warm and happiness.1.3 Identification of Market NicheSPA café will be located BayAvenue at Queensbay, Bayan Lepas. It is themain industrial hub of Penang. And has a population of about 141,000people. Because such café are providing many different beauty treatmentefficacies, so it will obtain female favor, especially white collar. By this SPAcafé major target is on feminine market, Chinese and medium -upper level ofpeople (Refer appendix B for more detail).1.4 Mission StatementOur primary objective is not only serves the flowers but also provide qualityservices and relax environment, by using only the natural ingredients fromaround the world in order to meeting the need of customers and to make eachand every visit to SPA café memorable, happiness, warm and deliciously fun. Page 7 of 70
  • 12. 2.0 Market environment2.1 Environment ScanRefer appendix E for a full overview.2.2 SWOT AnalysisThe summary of the SWOT will follow (Refer appendix F for full overview).Internal factorsI am a responsibility person and ability to work independently or as aneffective team member. Beside that I have a baking and cooking skill, so Ican bake the cake make dessert myself. In addition, I like to continually learnnew things and I am committed to working fast, these all will help me in doingthe business. Whereas I no have the skill for make tea, this will cause me hasa problem when running the business. Beside that I don’t like tight with longbusiness hours and I am not a risk taker.External factorsBy analysis the macro environment, I found that there has an opportunity todo the business in the health related fields, because of the social economicchanges in Malaysia. These include opportunities arising from people aremore stressful lifestyles, health motivated food consumption trends desire tolead longer and enjoyable live. Besides government encouragesentrepreneurs set up a company by offering assistance in financing,managing and growing the business for SME. Furthermore since Page 8 of 70
  • 13. unemployment rate is high, so I can get lowest cost of labor from the market.Populations of Malaysia and Consumers expenditure on food are keepingincreasing. Whereas the global economy is under threat of a recession withthe contagion from the US financial chaos spreading worldwide will be thethreat to doing the business. Beside that there are a lot of otherestablishment is a substitute place for people.Firm will be success if able adapt to the changing environment2.3 Marketing Objectives1. SPA café aim to achieve break even profit within 1 year.2. 70% of customers satisfy the services of café in first year.3. Making 30% female in Penang city aware about the SPA café within 1 year.4. SPA café aim to receive 200 complete reward cards within 1 year (see appendix G for design of reward card).2.4 Marketing StrategyAccording to Hill and O’Sullivan (1999), positioning is referring to the way inwhich the product is positioned in the mind of the consumer.SPA café will use differentiation strategy to provide product or services thatoffer benefits different from competitors and widely valued by buyer (Johnsonet al. 2008). In order to identifying possible competitive advantages, SPAcafé differentiation approaches can be found in appendix H.2.4.1 Marketing Mix strategy Page 9 of 70
  • 14. To positioning the business is base on the marketing mix element: product,place, price, promotion and 3 services P’s which are people, physicalenvironment and process. According to Kotler and Armstrong (2001) definethe marketing mix is includes controllable and tactical marketing tools that firmblends to produce the response it wants in the target market.ProductThe Café will be offering variable flower teas and also serving the dessert thatmakes from tea. In addition, in special festival will offer the extra specialdessert according to the festival. The benefits to the customers will includeenjoys relaxed environment and healthy drinks.PlaceSPA café will be located BayAvenue at Queensbay, Bayan Lepas. This citywas chosen is because it provide an environment to relax and because thetarget market fits the needed for SPA café to success. The distributionchannel is we have a physical shop and direct selling to the customers.PromotionCommunication objectiveThe communication objective of SPA café is wishes to: • Make each and every visit memorable and prefer the café • Inform and educate the target market to drink flowers tea • Making 30% female in penang city aware about the SPA café and its products and services within 1 year Page 10 of 70
  • 15. • Increase sales from 0% to 70%The communication methodsSPA café will use different methods and techniques of promotion in order toachieving promotional objective. The promotion mixes that SPA café use areshow as follows: • Personal selling • Direct response promotion – website • Advertising • Sales promotions(Refer 2.5 for the SPA café’s marketing tactics and programs)PhysicalThe physical environment of SPA café is very important to customers andtherefore we need to manage the environment to achieve a state aim. Howwe elaborate disposal the environment can be seen in appendix I.PriceAccording to Hitt et al. 2007, because differentiation product satisfiedcustomers’ unique needs, so we charge the price of product in premium pricethose customers willing to pay. Price skimming strategy will be used by SPAcafé. It will aims to sell to the top of the market or the top of the demandcurve at high price before aiming at more price sensitive customers (Questeret al. 2001). The target market is one who is more concern about the qualityand uniqueness and they are willing to pay the high price. Page 11 of 70
  • 16. We also employ promotional pricing strategy when we launch new product toentice customer to try new product.ProcessThere will be a standard services and operating principles. More informationcan be found in section 4.4 and 4.5.PeopleHuman resource is playing a significant role in every organization.Employees must be motivated and well trained in order to ensure that highstandards of services are maintained. The personal and remunerationpolicies can be found in section 3.3.2.4.2 Positioning statementFor our most important target market, local residents who are more healthconscious, curious and need a place to shop for relax, the SPA café offer asecret special creation of tea, dessert that makes from flower tea andcomfortable place to enjoy. Unlike our competitors, our café offers exactlywhat most customers needs.2.5 Tactics and programsThe tactics which will be used by SPA café in order to meet the promotionalaim are using advertising, sales promotion and also e-marketing. For moredetail information can be found in appendix J.The schedules of when the marketing tactics will be launch can be seen inappendix K. Page 12 of 70
  • 17. 2.6 Marketing BudgetThese are the probably figures for the cost of the marketing at the grandopening:Flyer – 5000pcs * RM 0.30 = RM 1500Reward card printed – 1000pcs * RM 0.40 = RM 400Website = RM 180Total cost = RM 2080Others batch of flyer and reward card we will only print at that time andneeded.3.0 Management Plan3.1 Business structureSPA café will be sole proprietorship owned by Chew Wan Chin. Chew WanChin will also operate as manager of the café and solely responsible for caféprofits, losses, legal and liabilities and HR management. According to Barrowet al. (2008) state that as sole trader there is no legal distinction between youand your business - your business is one of your assets. This means that ifthe business fails then the creditors have a right not only to the assets of thebusiness, but also to my personal assets.RM 100000 capital is needed for café to set up the business. This will be RM50000 of personal investment and the rest of RM 50000 will be loan from theback. Page 13 of 70
  • 18. 3.2 Management structure, function and rationaleThe management structure of SPA café can be seen in appendix M.At the beginning, SPA café will recruit 1 baker, 1 alimentation consultant and2 waiters/ waitress. All workers are belonging to full time worker and their jobdesign was the vertical expansion of tasks, which is called job enrichment(Bratton and Gold, 2007). For example, SPA café waiters not only serve thecustomers but also need to inspect the goods when send by supplier.The number of staff will be recruit more aftertime when need more.3.3 Personnel and remuneration policiesSince SPA café is a service oriented company, therefore human resource isplaying a significant role.3.3.1 Recruitment policiesGetting the right people to work is very important in every organization. SPAcafé’s will be scrupulous in recruiting employee in order to getting right staffs.More information about SPA café recruitment policies can be seen inappendix N.3.3.2 Employees training programSPA café will provide training program for staffs. It will be on job training,because it provides the advantages of hand-on experience and an opportunityto build a relationship between supervisor and employee (Snell and Page 14 of 70
  • 19. Bohlander, 2004). However, the employees will have been equipmenttraining, steeping teas instruction and general orientation training 1weeksbefore opening. On the other hand, employees will also be train the standardway of greeting customers (Refer appendix O for more detail on what will beinclude in this).3.3.3 Employees incentiveIn managing people, reward system emphasizes a core facet of theemployment relationship. The reward system enables an organization toattract and retain suitably qualified workers to perform the work of theorganization (Bratton and Gold, 2007). Beside given base pay, SPA café alsowill provide other reward in order to retain suitably qualified workers andensure all staffs are treated impartial. The list of the salaries and reward forstaffs can be seen in appendix P.3.4 Creditor & debtor policies with clear rationaleIn case those unlikely events occur and induce the café does not succeed, atpreliminary stage we will loan from bank and to pay all the credit, becausesince this kind of business services is not many in Penang, the competitiverivalry is low, so there will be more opportunity and potential, therefore Ibelieve that aftertime can reclaim back the originally investment. Unlessreally cannot persist, then we just only will sold all the assets in order to payall creditors. Page 15 of 70
  • 20. 4.0 Operation Plan4.1 LocationSPA café will be located BayAvenue at Queensbay, Bayan Lepas. Thelocation map can be seen in appendix Q. There have 3 and 4 storey shop lotunit type; SPA café will rent 3 storey type and at ground floor shop lot. Therental will be cost between RM 3000-3500.4.2 SuppliersA list of SPA café’s supplier can be found in appendix supplier list R.4.3 Equipment needed and Set-up costsSPA café will need a different of equipment and asset purchases. The costsare show as following:Asset – RM 25695Equipment – RM 2658.10Renovation and decoration – RM 10000 (include paint, decoration flowers,partition, cabinet and wall shelf, kitchen and washroom fitment). This will beaccomplished by renovation contractor.The list of Asset and equipment needed can be found in appendix S.4.4 Standard Operational Procedures Page 16 of 70
  • 21. SPA café will have many operational procedures in place to ensure thatsmooth running of the café. The standard operational procedures include thefollowing: • Key point of services • Selling method • Access to website • Reservation • Customer complaint4.4.1 Key point of servicesSPA café will have some key points of services to ensure efficient services.The detail can be seen in appendix T.4.4.2 Selling method and cash up procedureSPA café will charge and make a payment by use a cash payment methodwhich has attraction in that when deliver product or service we are sure ofgetting paid and will have no administrative work in keeping tabs on what inowned (Barrow et al. 2008). Every day we will reckon the bills at the end ofthe day. And will bank in the cash every 1 week.4.4.3 Access to websiteThe staff must access to the website every day in order to know the people’srespond, recommendation and also to reply the enquiry.4.4.4 Reservation Page 17 of 70
  • 22. Since the café will limited number of customers, the customers can make areservation before coming. The reservation is being taken over telephone orface to face, we has a standard format in doing so (refer appendix U).4.4.5 Customer complaintIf customers have complaint, the complaint will be deal immediately. In orderto apologized and make customers well pleasing and excuse, we will offer thediscount to them and offer them a free voucher for next visit and will be surethat it exceeds their expectation. The staffs never argue with customers orattempt to make excuses. We encourage employees solve the problem outthemselves speedy, but always inform manager what the problem.4.5 Quality Assurance ProceduresSPA café will have several quality assurance procedures to ensure the qualityat all time.Quality of services:To ensure the quality of the services, the standard training and services aregiven to the staffs. All staff will be present friendly, smiling and caring goodattitude to customers.Quality of the material:As we is promoting fresh, we will buy the tea in small amount and consume itpreferable within 3-5 months and all teas will be store preferably in containerto keep tea away from (sun) light and humid conditions. For those material tomaking cake and others, we will buy in sufficient amount and consume within Page 18 of 70
  • 23. 1 week. In order to maintenance the food and teas quality assurance to allthe times, therefore we will have purchasing specification from supplier.Quality of the food and teas:All dessert, cookies and cakes will be prepared on intraday in order to ensurethe foods are fresh, the leavings food will distribute to all the staffs to takehome. The teas process method will be follow the steeping instruction,because a combination of weight of tea, brewing time, and water temperaturedetermines the best infusion while cleanliness and water quality will beconditions for a perfect cup.5.0 Financial Plan5.1 Start up CostsPre launch marketing RM 2,080 (flyer, website, reward card printed)Register Company name RM 30Pre opening expenses RM 38,951 (asset purchases, equipment cost, renovation and decoration cost, other utilities cost)Shop rental RM 3,200Total RM 44,261Cash injection RM 50,000 (director) RM 50,000 (loan from bank)Opening balance RM 55,739 Page 19 of 70
  • 24. 5.2 Cash flow forecast for one yearThe cash flow assumptions can be found in appendix V. The revenueassumptions are show in appendix W. The cash flow forecast can be seen inappendix X.5.3 Profit and Loss account for one yearThe cash flow projection will be used to complete the profit and loss accountwhich can be seen in appendix Y. At the first year, SPA café will be loss RM6655.5.4 Break even analysisVariable unit cost = 64700/231993 = 0.27Contribution per unit = 1- 0.27 = 0.73Fixed cost = 217105 / 0.73 = 297404.10Break even point = 297404.106.0 Contingency Plan / Business control6.1 Creditor policiesIn case those unlikely events occur and induce the café does not succeed, atpreliminary stage we will loan from bank and to pay all the credit. Unless Page 20 of 70
  • 25. really cannot persist, then we just only will sold all the assets in order to payall creditors.6.2 Personal and personnel positionFor next year started, the café will provide extra individual incentive (meritpay) for employee. A merit pay program links an increase in base pay to howsuccessfully an employee performance his or her job (Snell and Bohlander,2004). This is in order to motivate employees.6.3 Marketing controlIn order to make profit in next year, we will put more effort on marketing inorder to increase sales. Page 21 of 70
  • 26. References:Bohlander, G. & Snell, S. (2004) Managing Human Resources, 13th ed., USA:Thomson South Western.Bratton, J. & Gold, J (2007) Human Resource Management – Theory andPractice, 4th ed., Basingstoke: Palgrave Macmillan.Department of Malaysia statistics (2008) Consumer Price Index MalaysiaAugust 2008 [online], Available from:<http://www.statistics.gov.my/eng/index.php?option=com_content&view=article&id=275:consumer-price-index-malaysia-august-2008-&catid=44:consumer-price-index-malaysia-&Itemid=12>[Accessed 23 October 2008]Department of Malaysia statistics (2008) population [online], Available from :<http://www.statistics.gov.my/eng/index.php?option=com_content&view=article&id=50:population&catid=38:kaystats&Itemid=11> [Accessed 23 October 2008] Page 22 of 70
  • 27. Dr Suku Bhaskaran (2006) OPPORTUNITIES FOR SNACK FOODS IN THEHEALTHY EATING ERA, Food Marketing Research Unit Faculty of Health,Engineering and Science Victoria University AustraliaDr. Maoshing Ni (2008) 5 Healthy Drink Tips That save You Money [online],Yahoo health. Available from: <http://health.yahoo.com/experts/drmao/16750/5-healthy-drink-tips-that-save-you-money/>, [Accessed 20 Jan 2009]Economic Planning Unit, Prime Ministers Department, Malaysia (2008)Euromonitor International (2008) Country factfile [online], Available from:<http://www.euromonitor.com/factfile.aspx?country=MY> [Accessed 5November 2008]Hill, E. & O’Sullivan, T. (1999) Marketing, 2nd ed, USA: Addison WesleyLongman Limited.Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2007) Strategic Management,7th ed., USA: Thomson South-western.Johnson, G., Scholes, K. & Whittington, R. (2008) Exploring CorporateStrategy, 8th ed., Harlow: FT Prentice Hall. Page 23 of 70
  • 28. Kotler, P., Bowen, J. & Makens, J., (2006) Marketing for Hospitality &Tourism – International Edition, 4th ed, Upper Saddle River, N.J; London:Pearson.Lifestyle news (2008) Shopping is Indeed a Stress-buster for MalaysianWomen [online], Available from: <http://www.medindia.net/news/Shopping-is-Indeed-a-Stress-buster-for-Malaysian-Women-39975-1.htm> [Accessed 5 October 2008]Malaxi community, A 28.96m people in 2010 [online], Available from: <http://www.malaxi.com/population_size_age_structure2001_2010.html>[Accessed 30 October 2008].MIER Quarterly Surveys (2008) Malaysian Economic Outlook: ExecutiveSummary [online], Available from:<http://www.mier.org.my/surveys/index.php#meo> [Accessed 23 October2008]MyGovernment (2008) [online], Available from: <http://www.gov.my >[Accessed 25 October 2008].Mygovernment (2008) Information and Communications Technology [online],Available from:<http://www.gov.my/MyGov/BI/Directory/Business/BusinessByIndustry/ICT/>[Accessed 23 October 2008] Page 24 of 70
  • 29. Phua Kai Lit (2001) The Malaysian Healthcare System, SocioeconomicChanges and New Business Opportunities, Thesis (PhD), InternationalMedical UniversityQueensbay master plan [online], Available from :<http://www.queensbay.com.my/qbsitemap.php> [Accessed 30 October 2008]Social security organization (2008), contribution schedule [online], Availablefrom :< http://www.perkeso.gov.my/Jadual_Caruman4.pdf > [Accessed 10December 2008]The Malaysian Economy in Figures – 2008 [online], Available from :<http://www.epu.jpm.my/New%20Folder/Figures2008/chapt1.pdf> [Accessed23 October 2008]Wikipedia (2008) Bayan Lepas [online], Available from:<http://en.wikipedia.org/wiki/Bayan_Lepas > [Accessed 30 October 2008].Wikipedia (2008) Demographics of Malaysia [online], Available from:<http://en.wikipedia.org/wiki/Demographics_of_Malaysia > [Accessed 30October 2008].Wikipedia (2008) List of countries by life expectancy [online], Available from: <http://en.wikipedia.org/wiki/List_of_countries_by_life_expectancy> [Accessed30 October 2008]. Page 25 of 70
  • 30. Quester, P. G., McGuiggan, R. L., McCarthy, E. J. & Perrealt, W. D (2001)Basic Marketing – A managerial approach, 3rd ed., Australia: The McGraw -Hillcompanies.Barrow, C., Barrow, P. & Brown, R. (2008) The Business Plan Workbook, 6 thed., USA: Kogan Page.Appendix ASample MenuFlowers TeasSingle flavor tea / pot RM10.00Mix flavor tea / pot RM15.00 • Beauty treatment o French Pink Rose o Carnation o Violet o Peony o Lavender o Azalea o Peach blossom • Special efficacy o Rosemary o Apple Flower o Chamomile Page 26 of 70
  • 31. o Jasmine o Lemon Balm o Ginseng Flower Artistic flower tea o Honeysuckle o Hibiscus Flowers o Canary-creeper • Artistic flower tea RM9.90Desserts o Cake / slice RM5.50 o Ice cream / scoop RM2.00 o Jelly / set RM2.00Other o Cookies / pack RM5.50 o Moon cake – (only available on moon cake festival) Page 27 of 70
  • 32. Appendix BTarget marketSPA café will be located at Bayan Lepas, town of Penang. The population ofPenang state is 1,313,449 people, and Bayan Lepas population is 141,000people, majority of population which 46.5% is Chinese (see appendix C).Refer to department of statistics Malaysia, the most population age group is15-64 years (see appendix D). The age structure is show as following: • 0-14 years: 32.2% (male 4,118,086/female 3,884,403) • 15-64 years: 62.9% (male 7,838,166/female 7,785,833) • 65 years and over: 4.8% (male 526,967/female 667,831) (2007 est.)From here, we know that the majority of populations are between 15 to 64years, old and I assume that age group of 29-45 years old have betterpurchasing power.According to Wikipedia, the life expectancy at birth (years) of Malaysia overallis 74.2, male is 70.2 and female 76.7, by this we can know that the female aremore expectancy at birth. Page 28 of 70
  • 33. SPA café has decided to target and serve at age group between 29-45 yearsold as primary target market by using concentration strategies, which is anorganization focuses all its attention on a single segment in the market (Hilland O’Sullivan, 1999). Because such café are providing many differentbeauty treatment efficacies, so it will obtain female favor, especially whitecollar. By this SPA café major target is on feminine market, Chinese andmedium -upper level of people.Appendix CFigure 1: Population distribution by states and territories Urban Area Pop. Bumiputr Chines IndianState Population pop(%) (km2) density a (%) e (%) (%)Selangor 4,188,876 7960 526 87.6 53.5 30.7 14.6Johor 2,740,625 18987 144 65.2 57.1 35.4 6.9Sabah 2,603,485 73619 35 48.0 80.5 13.2 0.5 12445Sarawak 2,071,506 17 48.1 72.9 26.7 0.2 0Perak 2,051,236 21005 98 58.7 54.7 32.0 13.0Kedah 1,649,756 9425 175 39.3 76.6 14.9 7.1FT Kuala 1,379,310 243 5676 100.0 43.6 43.5 11.4LumpurPenang 1,313,449 1031 1274 80.1 42.5 46.5 10.6Kelantan 1,313,014 15024 87 34.2 95.0 3.8 0.3Pahang 1,288,376 35965 36 42.0 76.8 17.7 5.0Terenggan 898,825 12955 69 48.7 96.8 2.8 0.2uNegeri 859,924 6644 129 53.4 57.9 25.6 16.0Sembilan Page 29 of 70
  • 34. Malacca 635,791 1652 385 67.2 63.8 29.1 6.5Perlis 204,450 795 257 34.3 85.5 10.3 1.3FT Labuan 76,067 92 827 77.7 79.6 15.8 1.3FT 45,000 148 304 100.0 94.8 1.8 2.7PutrajayaSource: National Census 2000 [8], Department of Statistics Malaysia. Putrajaya datais for 2004.Appendix DFigure 2: Population age group Page 30 of 70
  • 35. Source: Malaysia official statistics, 2008Appendix EEnvironment scanMacro environment factors Page 31 of 70
  • 36. FactorsSocial cultural factors • Health motivated food consumption trends • Consumers expenditure on food (US$ million) are increase from 7,959.1 in year 2004 to 10,727.2 in year 2008 (Euromonitor International) • 75 percent of women in Malaysia believe in "retail therapy", saying shopping was therapeutic and a stress-reliever • Consumer price index is increase (department of statistics Malaysia)Demographic factors • Populations are keeping increasing (department of statistics Malaysia) • The majority of population in Peneng state is Chinese which is 46.5% (department of statistics Malaysia)Economic factors • The global economy is under threat of a recession with the contagion from the US financial chaos spreading worldwide (MIER Quarterly Surveys) • Malaysia GDP growth is 5.75 % up to date (MIER Quarterly Surveys) • Unemployment rate is high, forecast for year 2008 is 3.2% (Economic planning unit) • Inflationary pressures have gathered steam, with elevated food prices lifting inflation to Page 32 of 70
  • 37. 8.5 per cent in Aug’08 (MIER Quarterly Surveys)Technological factors • The Information and Communications Technology (ICT) sector as one of the areas important for Malaysias economic growth (mygovernment website) • Internet users(‘000) are increased from 9,879 in year 2004 to 12,993.50 in year 2008 (Euromonitor International)Political / Legal factors • Food act 1983 and food regulation 1985 • Businesses Act 1956 • Employment Act1955 • Producing halal food will be given Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred within a period of 5 years (mygovernment website) • Government encourages entrepreneurs set up a company by offering assistance in financing, managing and growing the business for SME (mygovernment website)Micro environment factorsSince this kind of business services is not many in Penang, the competitiverivalry is low, so there will be more opportunity and potential. Because nothave so many this kind café can let customers to choice, therefore thebargaining power of buyer is low. Owing to the café will order the flowers teas Page 33 of 70
  • 38. from foreign country (China /Taiwan); the bargaining power of supplier ismedium, due to a lot of supplier in the market of those countries. Toconclude that, the market is attractiveness because today’s people are moreconcern healthy, and there have a lot of potential customers.Appendix FSWOT analysisStrengths Weaknesses • I am a responsibility person • I am not professional for make • ability to work independently or tea as an effective team member • I don’t like tight with long • I have a baking and cooking business hours skill • I am not a risk taker Page 34 of 70
  • 39. • I like to try new recipe • Poor communication in English• I like to continually learn new things• I am committed to working fast• Have good organize skill, can delegate tasks and responsibilities to others• I prefer work on things until theyre done or solvedOpportunities Threat• Social economic changes • Economy is under threat of a• Government encourages recession entrepreneurs set up a • Competitors from other company establishments, e.g. Starbuck,• Unemployment rate is high other SPA center is a• Consumers expenditure on substitute place for people to food are keeping increasing relax• Today’s people are more • Future bargaining power of concern healthy supplier Page 35 of 70
  • 40. Appendix GDesign of customer reward card Front Back Page 36 of 70
  • 41. A Reward card B C A= get 1 free dessert B = get 1 pot of tea (single flavor) C= get 1 pot of tea (mixture flavor).Appendix HMarketing strategySPA café differentiation approach as show in following: Page 37 of 70
  • 42. Product differentiation: SPA café will offer a secret special creation of tea anddessert (e.g. flower tea cake, ice cream) that makes from flower tea which aredifferent to others. Besides, all the flower teas that serve are natural andhealthy. Because of the flower tea is not included caffeine, cholesterol,preservative, artificial color and also essence.Service differentiation: SPA cafe will provide the customization services, wehave alimentation consultant to help different constitution, age and sexual ofconsumer to analyze and select which teas are suitable for them. Beside that,the café will limited number of customers, because is to preserve café’scomfort atmosphere, and in order to assure every customers be able to enjoythe perfect environment. By limited the number of customers, instead canarose the customer’s curiosity and be able to bring customer’s first try interest.Personnel differentiation: The café will through hiring and select people whoare courteous, friendly, responsibilities, and respectful to customers. Besidethat they must able respond quickly to customer requests and problem. SPAcafé will encourage staff attend a nutrition courses, in order to accord withcompany mission statement.Location differentiation: SPA café will be located at BayAvenue, Queensbay,Bayan Lepas. This city was chosen is because Queensbays is the onlydevelopment in Penang that encompasses and entirely new upmarketwaterfront development, and it is currently the most anticipated and excitingproject to hit the services of the island. BayAvenue unique and features are:within an integrated development. The largest mall, the marina and luxurioushomes are all within minutes of each other. Beside, is surrounded by anestablished and affluent residential neighborhood. The shop is modern Page 38 of 70
  • 43. façade design, and lushly landscaped boulevard areas. Also is aCYBERCITY that provided the technology hub. SPA café use the location asa point of differentiation the class and image of the shop.Image differentiation: SPA café will develop an image as a relaxing andhealthy centre. SPA café want to preserve attractive and surroundingatmosphere of café.Appendix IPhysical environment of SPA café Page 39 of 70
  • 44. We will employ different technique to ensure that the physical environmentreflect the style and features of the café. These will be discussing accordingas follow.DecorationThe décor of the SPA café will be simple and use lilac color for paint work.Beside that will also decorate by using decoration flower. According tofreshome.com, room color can influence people mood and thoughts. Lighterversions of purple, such as lavender and lilac, will bring the same restfulquality to room. It is also feminine and romantic. The use of decorationflowers will add ambience of the café.FurnitureThe furniture that SPA café will be use is comfortable leisure chairs andvitreous tables which will fit with the image of cafe.AmbienceSPA café is full of aroma. People can use aromatherapy to relax, to balanceand stimulate the mind, the spirit, and the body. Using essential, pure oils,they can achieve psychological and physical well-being. The aroma triggerspositive effects in people brain; the essential oil is drawn into their lungs,supplying physical benefits as well (Steam & Sauna Connection, 2009). Page 40 of 70
  • 45. Beside that the lighting inside the café will be kept soft in order to retainromantic environment. Furthermore the café also will play soft music.Appendix JMarketing tactics Page 41 of 70
  • 46. SPA café currently is new and due to potential customers do not know aboutthe business, we will use three methods of promotion tool to communicationsin order to achieve marketing objectives. There are:Advertising:Kotler et al. (2006) state that advertising can reach masses of geographicallydispersed buyer at a low cost per exposure. In order to create awareness ofcafé, SPA café will use flyer and advertise in newspaper to inform thepotential customers. • Flyer – these will be simple A4 paper printed and use in form of a door drops (refer appendix L for design of flyer) • Newspaper – news release.Inside these two medium, all will include information of SPA café and itserving as well as what the potential customer might expect and cut coupon.For the customers who bring the cut coupon will get free sample trial, by usingthis method (cut coupon) we can calculate how much of the customer knowabout the café.Sales promotions:In order to create customers favorable feeling, build customers preferenceand purchase, the promotion tools we will use is samples to entice customerto try new product. Beside that, we also launch loyalty program in order to getcustomers loyalty. • Samples – offers trial products when we launch new product and we will charges a small amount to offset the cost. Page 42 of 70
  • 47. • Loyalty program – will distribute reward card for customers who are first visit by offering rewards as incentive. For example, 4 stamps get 1 free dessert, 8 stamps get 1 pot of tea (single flavor), and 12 stamps get 1 pot of tea (mixture flavor).By using samples method, we can know our café experiment whethersuccess and to be welcome or not. For loyalty program we can know whethercustomers have favorable feeling and preference our café or not.Website:In order to build customers conviction and purchase, SPA Café will createown website. This will be organization sites, SPA cafe website will providedetail information of SPA café and it serving. Moreover inside the websitealso include features of each tea. This will allow potential customers to seewhat sort of business is and know more about benefit of drinking flower teas.Beside that it will provide an opportunity for customers to make commentsand enquiry about the café, this will attract and encourage people to post oremail the newsletter to friends and encourage word of mouthrecommendations.By using this method, we can save the cost because the website is perpetuityand the scope to let people know is widespread.Appendix KMarketing tactics schedule Page 43 of 70
  • 48. The promotions schedule of SPA café on pre-launch, launch andmaintenance activities will be as follows: Tactics Flyer Newspaper Sales website promotionMonthPre-opening • • •May •June • •July •August •Sept • •Oct •Nov • •Dec • •Jan •Feb •March •April •Flyer – Door drops will be carried out when the month before opening tointroduction people and others batch will be distribute in month June, Septand Dec, is to re-inform people.Newspaper – The news release will be 2 times throughout the year.Sales promotion – Will do it when we launch new product.Website – The website will be create and put online pre-opening. Theapproximate time is the month before opening when renovation anddecoration starts. This will allow potential customer to know what business isgrand opening. Page 44 of 70
  • 49. Appendix LDesign of flyer Page 45 of 70
  • 50. Appendix MManagement structure Page 46 of 70
  • 51. Chew Wan Chin Proprietor and manager Baker Alimentation consultant waiters/ waitressSince there are only few employees in café, therefore all of employees aredirectly report to the manager. However we encourage all employees to havetheir say and discuss matter together.The job designs that SPA café use which is job enrichment, because jobenrichment may be accomplished by increasing the autonomy andresponsibility of employees (Snell and Bohlander, 2004). For the accountingfunction will be handles by independent consultant.Depending on how success of café, the additional staff will be recruit moreaftertime when need more. Page 47 of 70
  • 52. Appendix NRecruitment policiesThis section will be dividing into 3 sections. These are: 1. Candidates qualification 2. Channels used to attract candidates 3. SelectionThese will be discussed in following:1. Candidates qualificationThe qualification of staffs needed by SPA café can be seen as follow. Accordingto Bratton and Gold (2007) job specification is skill required to perform the joband physical demands of the job, below is a minimum qualification need for eachposition: Position Job specification Baker • Certificate/Diploma/Degree in Culinary Arts specializing in Pastry and Dessert Production or equivalent • Resourceful, creative, dynamic, able to multi-task and get hands- on in Kitchen operations. • Minimum of 2 years of related working experience in a bakery and is able to hand make local bakery products like bread, tarts, buns, etc. i.e. you are able to Page 48 of 70
  • 53. make your own dough for such products. • Passion for continuous learning and self development. • Good Attitude and responsible person • Applicants should be Malaysian citizens.Alimentation consultant • Candidate must possess at least an Advanced/Higher/Graduate Diploma, Bachelors Degree, Post Graduate Diploma or Professional Degree in Food Sciences/Nutrition/Dietetics or equivalent. • Required language(s): Chinese, English • Full-Time positions • Applicants should be Malaysian citizens • Fresh graduates/Entry level applicants are encouraged to applyWaiters/ waitress • Able to adapt changes and must be a fast learner. • Fresh graduates/Entry level applicants are encouraged to apply. • Candidate must possess at least a Secondary School/SPM/"O" Level or higher level in any field. Page 49 of 70
  • 54. • Proficient in English, Bahasa Malaysia and Chinese Dialects. • This is a full time position and applicant must be willing to work long hours and split shift if necessary. • Discipline and self motivator • Able to work non- traditional hours including weekends, school holidays and public holidays.2. Channels used to attract candidatesSPA café will use two approaches to attracting potential applicant. These areadvertising and notice board. According to Snell and Bohlander (2004) state thatadvertising is the most common methods of attracting applicants. By usingadvertising can reaching a large audient of possible applicant. Therefore SPAcafé will advertise in newspaper to recruit staff. And by notice board which will beaccessible by the general public.3. SelectionOnce receive the applicant’s application, we will select the candidates by usinginterview. The interviews methods that we use are in several ways, which isnondirective interview and situational interview. According to Snell andBohlander (2004) nondirective interview is an interview in which the applicant isallowed the maximum amount of freedom in determining the course of the Page 50 of 70
  • 55. discussion, while the interviewer carefully refrains from influencing the applicant’sremarks. Situational interview is an interview in which an applicant is given ahypothetical incident and asked how he or she would respond to it. Neverthelessthe interviewer will be maintenance friendliness, and make the candidate feelrelaxes and not threatened which will allow them to be more courageous to giveexpression.Appendix O Page 51 of 70
  • 56. Training of greeting customersThe way to greet customers on arrival is really important, because the firstimpression of customers is crucial in attracting and retaining customers.Therefore employees will be train the standard way of greeting customers.When customers enter they will be served as follow: • Greet “Good day/ welcome to SPA café” • Have eye contact and smile with customers to show sincerity when serving them • Menus will be given to the customers immediately after they are seated • Give recommend about any dessert and specials • Say “thank you and goodbye” to every after attend customersFrom time to time, employees will be trained the proper way of serving customersthe best.Appendix P Page 52 of 70
  • 57. Salaries and reward for staffBelow is a list of the staff and their rewards: Baker Alimentation Waiter / waitress consultant (per person)Basic salary RM 1800 RM1800 RM 1100EPF (Employees 12% @ basic 12% @ basic 12% @ basicProvident Fund) salary = RM 216 salary = RM 216 salary = RM132contributionSocso (Social Employer Employer EmployerSecurity contribution = RM contribution = RM contribution = RMOrganization) 30.65 30.65 18.35Total RM 2046.65 RM 2046.65 RM 1250.35 *2 = RM2500.70ExtraOvertime RM 1800/26 days/ RM 1800/26 days/ RM 1100/26 days/allowance 8 hours* 1.5% = 8 hours* 1.5% = 8 hours* 1.5% = RM 12.9/hour RM 12.9/hour RM 7.93/hourSPA café will provide extra allowance for those who are work overtime.Appendix QMap of BayAvenue at Queensbay, Bayan Lepas Page 53 of 70
  • 58. Source: Queensbay master planAppendix RSuppliers Page 54 of 70
  • 59. SPA café need the various suppliers to perform the business. The list is asfollows: • Carson confectionery and ingredient bakery (Bukit Mertajam) – they will supply all cake and dessert ingredient, and ovenware. • Hangzhou Tongzheng Electronic Commerce CO. Ltd – they will supply all flower tea. • Guangzhou Xiangkun Tea industrial Co. Ltd – they will supply all tea set equipment. • Senheng (Penang) – they will supply electronic equipment (air conditional, fridge and oven). • SINMAG (Penang) – they will supply mixture and showcase. • TESCO (Penang) – they will supply all equipment except teapot set. • Lovinna Enterprise – they will supply the furniture. • Perabot Angle Sdn Bhd – the renovation contractorAppendix SEquipment needed and Set up costs Page 55 of 70
  • 60. The list includes the entire asset and equipment needed and the cost.Asset costsAsset Quantity Unit cost Total costTable and chair 10 set RM 1399 RM 13990Air conditioning @ 2 RM 869 RM 1738LGComputer POS 1 RM 2249 RM 2249cash registerFridge 1 RM 1299 RM 1299Oven 1 RM 1289 RM 1289Mixer 1 RM 2080 RM 2080Showcase 1 RM 3050 RM 3050Total RM 25695EquipmentEquipment Quantity Unit cost Total costGlass teapots set 20 RM 78 RM 1560Induction Cooker 1 RM 199 RM 199@TakadaDigital thermo pot 1 RM 149 RM 149@PanasonicDessert spoon 5 set RM 4.90 RM 24.90(6pcs/set)Dessert fork 5 set RM 4.90 RM 24.90(6pcs/set)Dessert plates 5 set RM 10.90 RM 54.50(6pcs/set)Dessert cup 20 RM 3.85 RM 77Wine glass 20 RM 9.90 RM 198Blender 1 RM 70.90 RM 70.90Round glass 10 RM 4.90 RM 49.90containerOvenware RM 150Kitchen utensil RM 100Total RM 2658.10 Page 56 of 70
  • 61. Above asset and equipment list is just for at the beginning. We will add more theasset and equipment aftertime when need more.Appendix TKey point of services • Guest will be serving to the seat and greeting within 30 seconds. • Hand out the menu and revisit the table to take order within 3 minutes • Give customer some recommendation to make order • When taking order, maintain eye contact and smile with the customers • Repeat the order back to customers Page 57 of 70
  • 62. • Ensure the teas and food are deliver within 10 minutes • Say the name of each drink or food when put them down and say “enjoy your days“ • Ready the bills when customers finish order so can deliver immediately when they want to pay the bills • Say “thank you and goodbye” to every after attend customers • Clear the table when customers leftAppendix UReservation formatEmployees should take the following information when taking the reservation:• Name• Date• Time Page 58 of 70
  • 63. • Contact number• Party size• Any special requirementsWe will arrange and manage the timing to ensure that all customers do not comeat once.Appendix VCash flow assumptionCapital RM 100000 (RM50000 – director + RM 50000 – loan)Revenue see appendix WSalaries RM 5800 / monthEmployees benefit RM 794 / monthDrawing RM 2200 / monthRent RM 3200 / monthTelephone RM 100 / monthTravel RM 180 /monthInsurance RM 100 / monthMarketing RM 1500 (flyer), RM 400 (reward card printed) Page 59 of 70
  • 64. Interest on loan RM 166 / month – 4% chargesLoan repayment RM 1041 / month – loan 4 year (RM 50000/ 48)Utilities (water, light) According as monthly business situationCash purchases According as monthly business situation Page 60 of 70
  • 65. Appendix WRevenue assumptionBelow are some sales assumptions for every month in first year:Month Pruduct Quantity Unit Price (RM) Sub-total Assuumption pre launch, sale promotion, newsMay single flovor tea /pot 480 10 4800 release mix flavor tea /pot 550 15 8250 cake,cookies /silce/ pack 280 5.5 1540 ice cream (scoope), jelly (set) 280 2 560 artistic flower tea (cup) 110 9.9 1089 total 16239June single flovor tea /pot 550 10 5500 Distribute flyer mix flavor tea /pot 580 15 8700 cake,cookies /slice/ pack 260 5.5 1430 ice cream (scoope), jelly (set) 230 2 460 artistic flower tea (cup) 120 9.9 1188 total 17278July single flovor tea /pot 610 10 6100 moon cakefestival mix flavor tea /pot 650 15 9750 cake,cookies /slice/ pack 280 5.5 1540 ice cream (scoope), jelly (set) 330 2 660 mooncake /set 80 32 2560 artistic flower tea (cup) 150 9.9 1485 total 22095August single flovor tea /pot 630 10 6300 Moon cake festival mix flavor tea /pot 680 15 10200 cake,cookies /slice/ pack 330 5.5 1815 Page 61 of 70
  • 66. ice cream (scoope), jelly (set) 350 2 700 mooncake/set 150 32 4800 artistic flower tea (cup) 180 9.9 1782 total 25597Sept single flovor tea /pot 480 10 4800 Distributr flyer mix flavor tea /pot 630 15 9450 cake,cookies /slice/ pack 310 5.5 1705 ice cream (scoope), jelly (set) 330 2 660 artistic flower tea (cup) 130 9.9 1287 total 17902Oct single flovor tea /pot 430 10 4300 mix flavor tea /pot 580 15 8700 cake,cookies /slice/ pack 280 5.5 1540 ice cream (scoope), jelly (set) 380 2 760 artistic flower tea (cup) 150 9.9 1485 Page 62 of 70
  • 67. total 16785Nov single flovor tea /pot 480 10 4800 News release mix flavor tea /pot 550 15 8250 cake,cookies /slice/ pack 330 5.5 1815 ice cream (scoope), jelly (set) 380 2 760 artistic flower tea (cup) 180 9.9 1782 total 17407Dec single flovor tea /pot 530 10 5300 Christmas, distribute flyer mix flavor tea /pot 730 15 10950 cake,cookies /slice/ pack 430 5.5 2365 ice cream (scoope), jelly (set) 380 2 760 artistic flower tea (cup) 130 9.9 1287 total 20662 NewJan single flovor tea /pot 480 10 4800 Year mix flavor tea /pot 680 15 10200 cake,cookies /slice/ pack 330 5.5 1815 ice cream (scoope), jelly (set) 380 2 760 artistic flower tea (cup) 150 9.9 1485 total 19060Feb single flovor tea /pot 430 10 4300 Valentine Day mix flavor tea /pot 730 15 10950 cake,cookies /slice/ pack 430 5.5 2365 ice cream (scoope), jelly (set) 330 2 660 artistic flower tea (cup) 130 9.9 1287 total 19562March single flovor tea /pot 330 10 3300 mix flavor tea /pot 630 15 9450 cake,cookies /slice/ pack 410 5.5 2255 Page 63 of 70
  • 68. ice cream (scoope), jelly (set) 430 2 860 artistic flower tea (cup) 110 9.9 1089 total 16954April single flovor tea /pot 480 10 4800 mix flavor tea /pot 780 15 11700 cake,cookies /slice/ pack 530 5.5 2915 ice cream (scoope), jelly (set) 380 2 760 artistic flower tea (cup) 230 9.9 2277 total 22452 Page 64 of 70
  • 69. Appendix XCash flow forecast Month: Pre- 1 2 3 4 5 6 7 8 9 10 11 12 Totals Start Receipts Cash sales 16,239 17,278 22,095 25,597 17,902 16,785 17,407 20,662 19,060 19,562 16,954 22,452 231,993.00 Collections from credit sales 0 New equity inflow 50,000 50,000 Loans received 50,000 50,000 Other 0 Total Receipts 100,000 16,239 17,278 22,095 25,597 17,902 16,785 17,407 20,662 19,060 19,562 16,954 22,452 331,993.00 Payments Cash purchases 5,000 5,200 5,800 6,000 5,200 5,000 5,200 5,500 5,500 5,500 5,000 5,800 64,700.00 Salaries and wages 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 69,600 Employee benefits 794 794 794 794 794 794 794 794 794 794 794 794 9,528 Rent 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 41,600 Utilities 300 300 350 550 550 350 420 400 450 500 400 300 450 5,320 Insurance 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Travel 180 180 180 180 180 180 180 180 180 180 180 180 180 2,340 Telephone 100 100 100 100 100 100 100 100 100 100 100 100 100 1,300 Marketing/promotion 2,080 1,500 1,500 400 1,500 6,980 Bank charges 166 166 166 166 166 166 166 166 166 166 166 166 1,992 Owners drawings 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 28,600 Loan repayments 1,041 1,041 1,041 1,041 1,041 1,041 1,041 1,041 1,041 1,041 1,041 1,041 12,492 Capital purchases 28,353 28,353 Renovation 10,000 10,000 Total Payments 46,413 18,881 19,131 21,431 20,131 19,131 20,501 19,581 19,531 21,081 19,481 18,881 19,831 284,005.10 Cashflow Surplus/Deficit (-) 53,587 (2,642) (1,853) 664 5,466 (1,229) (3,716) (2,174) 1,131 (2,021) 81 (1,927) 2,621 47,987.90 Opening Cash Balance 0 53,587 50,945 49,092 49,756 55,222 53,993 50,277 48,103 49,234 47,213 47,294 45,367 Closing Cash Balance 53,587 50,945 49,092 49,756 55,222 53,993 50,277 48,103 49,234 47,213 47,294 45,367 47,988*The bank loan period is 4 years. Loan repayment = RM50000/ 48month Page 65 of 70
  • 70. Appendix YProfit and loss account for the year sales Sales RM 231993 Total Sales RM 231993 Less Cost of Goods Sold Material RM 64700 Total Cost of Goods Sold RM 64700 Gross Profit RM 167293 Operating Expenses Salaries and wages 69600 Employee benefits 9528 Rent 41600 Utilities (Heat & Light etc.) 5320 Insurance 1200 Travel 2340 Telephone 1320 Marketing/promotion 6980 Bank charges 1992 Depreciation 7668 Owners drawing 26400 Total Operating Expenses 173948 Net Profit (6655) Profit (Loss) Before Taxes 0 Net Income (Loss) (6655) Page 66 of 70

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