MODULE ASSIGNMENT COVERSHEET MODULE CODE

ILP 306

PART 1

Student Name:

Student Number:

Module Tutor:

Module Title / Assignment Number: New Business Development / 2

Date Due / Submission Date: 02.02.2009

Extension Date (including authorising signature):

Please note this is a “provisional” mark: to be ratified @ Examination Board of Studies

ILP306 ASSESSMENT 2 FEEDBACK SHEET

60Name First marker: John ColvinSecond marker: Mike Deakin

0.0. Executive Summary

Present.

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 plan

4.0. Operations Plan

5.0. 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 Plan

Overall 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.

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An interesting idea that you clearly develop with great interest and enthusiasm. Unfortunately that's 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 Range

Knowledge & Understanding Analysis/Synthesis Reading and Research Writing Style

Weighting 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

of key issues and debates. Excellent application of models employed

Evidence of ability to make a sustained argument on the basis of evidence in original terms.Evidence of an ability to synthesise information in a way that shows a full grasp of the material.Strong evidence of appropriate critical evaluation of a wide range of evidence incorporated into excellent plan

Evidence of the ability to range widely and eclectically for information.Very effective deployment of reading in supporting arguments.

Lively and articulate writing that shows evidence of knowledge, enthusiasm for the material and strong control of the arguments being deployed.

70–75% Evidence of a wide knowledge of relevant theory applied in a critical and thoughtful way.Evidence of full and precise knowledge of the possibilities and limitations of the models being employed.

Strong evidence of ability to make a sustained argument on the basis of appropriate evidence.Strong evidence of ability to critically evaluate evidence and synthesise appropriate generalisations from it to produce a focussed marketing plan with few errors

Evidence of appropriate selection of material from an appropriate range of sources.Reading used critically and deployed effectively in supporting arguments

Use of English that makes the meaning clear to the marker and shows control of the arguments being deployed.

60–69% Good subject knowledge and understanding of key issues and debates.Evidence of a full understanding of the possibilities and limitations of the models employed.Evidence of critical understanding of the application of relevant theoretical material to the chosen organisation.

Evidence of ability to make a sustained argument on the basis of appropriate evidence.Evidence of ability to critically evaluate evidence and synthesise appropriate generalisations from it to produce a good marketing plan in most areas.

Appropriate reading with effective use of a wide range of relevant sources.Effective deployment of reading in supporting arguments.

Clear and correct usage with very few imprecise statements.

50–59% Sound subject knowledge.Understanding, but not evidently critical, of key issuesEvidence of an understanding and application of the models used and how they are relevant to the topics in the assessment task.

Evidence of ability to make an argument on the basis of evidence appropriate to the theoretical issues being discussed.Evidence of the ability to collate information, weigh up evidence and construct general conclusion about the information expressed in a competent well written plan.

Evidence of selection of appropriate material from an appropriate range of sources, with coherent structure and clear argument.Satisfactory deployment of evidence to support argument.

Correct English usage with few imprecise statements.

40–49% Evidence of some knowledge of appropriate theory, but lacking depth.Limited understanding of key issues and debates. Lack of application to chosen organisation.

Some evidence of analysis but criteria used not clear.Evidence of preparedness to state a position but with limited use of argument and appropriate evidence expressed in a marketing plan with minor omissions and errors

Evidence of selection of mainly relevant material from a range of sources, but evidence not deployed accurately.Narrow selection of material.Limited evidence of research.

Correct English usage, but with some lack of precision.

Use of English in such a way that the marker cannot understand some of the points made, thus limiting the mark by the material that can be understood.

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Mark Range

Knowledge & Understanding Analysis/Synthesis Reading and Research Writing Style

30–39% Evidence of some relevant knowledge, but with serious omissions.Little understanding of key issues and debates.Some evidence of appropriate deployment of language and concepts from the topic under consideration.

Evidence of a general, but rudimentary, grasp of the planning issue with only a limited ability to sustain this response in a marketing plan with significant omissions and errors.

Scant or superficial reading.No evidence of research beyond directed reading or lecture notes or WebCT.Over-reliance on a single textbook source, without analysis, criticism or interpretation.

Some incorrect use of English.Failure to use technical terminology appropriately.

Failure to adhere to specified format for assignment.

20–29% Evidence of some knowledge, reading and material, but these ideas are marginal to assessment task set. And not applied in any real world sense.Inadequate understanding of subject with significant errors and omissions.

Evidence that the assessment task has been understood but that there is little development of the plan and the conclusions drawn are erroneous in light of the evidence presented.

Superficial reading of inappropriate sources.Failure to use reading appropriately in support of argument.

Significantly flawed use of English with little coherence or structure.

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 MarkSubject to approval by theBoard of Examiners

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Initial Proposal

Company Name: SPA Café

An initial Proposal for new business development: The café is serving variable

flower tea in the period 1.05.2009 – 30.04.2010.

Presented by: Chew Wan Chin

Contents

Pg

Executive summary 4-5

1.0 Company description 51.1 Rational for development of business 61.2 Product / services description 6-71.3 Identification of Market Niche 71.4 Mission Statement 7

2.0 Market environment2.1 Environment Scan 82.2 SWOT Analysis 8-92.3 Marketing Objectives 92.4 Marketing Strategy 9

2.4.1 Marketing Mix strategy 9-122.4.2 Positioning statement 12

2.5 Tactics and programs 122.6 Marketing Budget 13

3.0 Management Plan3.1 Business structure 133.2 Management structure, function and rationale 143.3 Personnel and remuneration policies 14

3.1.1 Recruitment policies 143.1.2 Employees training program 14-153.1.3 Employees incentive 15

3.4. Creditor & debtor policies with clear rationale 15

4.0 Operation Plan4.1 Location 164.2 Suppliers 164.3 Equipment needed and Set-up costs 164.4 Standard Operational Procedures 16-17

4.4.1 Key point of services 174.4.2 Selling method and cash up procedure 174.4.3 Access to website 174.4.4 Reservation 174.4.5 Customer complaint 18

4.5 Quality Assurance Procedures 18-19

5.0 Financial Plan5.1 Start up Costs 195.2 Cash flow forecast for one year 195.3 Profit and Loss account for one year 205.4 Break even analysis 20

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6.0 Contingency Plan / Business control6.1 Creditor policies 206.2 Personal and personnel position 20-216.3 Marketing Controls 21

References 22-25

Appendix 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

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Executive summary

SPA café will be a café reflect on trend of consumers changing the behaviour

of diet, moving from stimulating drink to healthy drink. The café is serving

variable flower tea. My flower tea is does not contain caffeine, cholesterol,

preservative, artificial colour and also flavour essence, so it become healthier

and nature. The café is not only selling the tea but more in services, it

provides a healthy and relax environment for customer. SPA café will full of

aroma which can provide physical and mental relaxation.

SPA café will be located BayAvenue at Queensbay, Bayan Lepas. It is the

main industrial hub of Penang, and has a population of about 141000 people.

Because the café are providing many different beauty treatment efficacies, so

it will obtain female favour, especially white collar. By this, SPA café major

target is on female market, Chinese and middle upper level of people.

There are currently no this kind of café in this area, however have other

organizations in the city that sell similar service to that of café. This will not

have an effect on the success of café as we will use many methods which will

differentiate from competitor.

Through differentiation strategy, my café provide customization, we have

alimentation consultant to help different constitution, age and sexual of

consumer to analyse and select which tea are suitable for them. Beside that

will provide special dessert which cannot find in the market and we will

employ a high quality staff.

The main finance contribution will be the director (RM50000) and additional

financing will be loan from bank (RM50000).

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The primary objective is not only serves the flowers but also provide quality

services and relax environment, by using only the natural ingredients from

around the world in order to meeting the need of customers and to make each

and every visit to SPA café memorable, happiness, warm and deliciously fun.

1.0 Company description

SPA café will be a café reflect on trends of consumers changing the

behaviour of diet, moving from stimulating drink to healthy drink. According to

Doctor Maoshing (2008) state that tea is the most commonly consumed

beverage in the world after water, and for good reason. Whereas coffee

hotwires your nerves and depletes your life force in the long run, tea gently

lifts your energy, and offers many health benefits. The café is serving variable

flower tea. SPA café will be trade in sole proprietorship own by Chew Wan

Chin. It will be located at Pulau Pinang of Malaysia and the design of cafe is

modern and high – class. In addition will ignite aroma, decorate by using

decoration flower, and paint on lilac color. The aim is to provide a healthy and

relax environment for customer, since lighter versions of purple, such as

lavender and lilac, will bring the same restful quality to room and the essential

oil is drawn into people lungs, supplying physical benefits as well. SPA café

business hours will be open from 10.30am – 10.30pm six day a week, be

closed on Monday.

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1.1 Rational for development of business

According to Phua Kai Lit, the financing and delivery of healthcare services is

changing all over the world today. In today market, the trends are being alive

and people are more stressful. Especially female, because of their job and

also their personal reason, their life are more stressful and do not have a

good place and method to release their stress. There is a growing need a

place for them to entertain and this growing market is the reason SPA café

will succeed. SPA café aims to provide people with a relax environment

where they also can serve with healthy food and drinks and also enjoy the

service.

1.2 Product / services description

The Café will be offering variable flower teas which can be single flavour or

mixed flavour and also will help the customer to choose the tea suitable for

them. Besides offering the flower tea, it also serving the dessert that makes

from tea, for example teas flavour cake, ice cream and other (refer appendix

A). SPA café also will follow the seasonal change and offer tea and dessert

with secret recipe, for example the special tea for customer to maintain their

smooth skin in hot day. My flower tea is does not contain included caffeine,

cholesterol, preservative, artificial colour and also flavour essence, so it is

becomes more healthy and natural. In addition, in special festival will offer the

extra special dessert according to the festival, for example moon cake festival

will offer flower tea moon cake. Other than that, it will also provide wireless

internet access for customer. Furthermore SPA café is not only selling the tea

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but more in services, it provides a healthy and relax environment for

customer.

The benefits of drinking flower tea embrace are to reduce stress, for beauty,

improve digestive system, and remove excess fat, for slimming, relaxation

and other functions. The SPA café is full of aroma which can provide

physical and mental relaxation. It is a new experience of spa other than

massage, sauna. Besides the environment of café will let consumers feel

romantic, warm and happiness.

1.3 Identification of Market Niche

SPA café will be located BayAvenue at Queensbay, Bayan Lepas. It is the

main industrial hub of Penang. And has a population of about 141,000

people. Because such café are providing many different beauty treatment

efficacies, so it will obtain female favor, especially white collar. By this SPA

café major target is on feminine market, Chinese and medium -upper level of

people (Refer appendix B for more detail).

1.4 Mission Statement

Our primary objective is not only serves the flowers but also provide quality

services and relax environment, by using only the natural ingredients from

around the world in order to meeting the need of customers and to make each

and every visit to SPA café memorable, happiness, warm and deliciously fun.

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2.0 Market environment

2.1 Environment Scan

Refer appendix E for a full overview.

2.2 SWOT Analysis

The summary of the SWOT will follow (Refer appendix F for full overview).

Internal factors

I am a responsibility person and ability to work independently or as an

effective team member. Beside that I have a baking and cooking skill, so I

can bake the cake make dessert myself. In addition, I like to continually learn

new things and I am committed to working fast, these all will help me in doing

the business. Whereas I no have the skill for make tea, this will cause me has

a problem when running the business. Beside that I don’t like tight with long

business hours and I am not a risk taker.

External factors

By analysis the macro environment, I found that there has an opportunity to

do the business in the health related fields, because of the social economic

changes in Malaysia. These include opportunities arising from people are

more stressful lifestyles, health motivated food consumption trends desire to

lead longer and enjoyable live. Besides government encourages

entrepreneurs set up a company by offering assistance in financing,

managing and growing the business for SME. Furthermore since

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unemployment rate is high, so I can get lowest cost of labor from the market.

Populations of Malaysia and Consumers expenditure on food are keeping

increasing. Whereas the global economy is under threat of a recession with

the contagion from the US financial chaos spreading worldwide will be the

threat to doing the business. Beside that there are a lot of other

establishment is a substitute place for people.

Firm will be success if able adapt to the changing environment

2.3 Marketing Objectives

1. 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 Strategy

According to Hill and O’Sullivan (1999), positioning is referring to the way in

which the product is positioned in the mind of the consumer.

SPA café will use differentiation strategy to provide product or services that

offer benefits different from competitors and widely valued by buyer (Johnson

et al. 2008). In order to identifying possible competitive advantages, SPA

café differentiation approaches can be found in appendix H.

2.4.1 Marketing Mix strategy

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To positioning the business is base on the marketing mix element: product,

place, price, promotion and 3 services P’s which are people, physical

environment and process. According to Kotler and Armstrong (2001) define

the marketing mix is includes controllable and tactical marketing tools that firm

blends to produce the response it wants in the target market.

Product

The Café will be offering variable flower teas and also serving the dessert that

makes from tea. In addition, in special festival will offer the extra special

dessert according to the festival. The benefits to the customers will include

enjoys relaxed environment and healthy drinks.

Place

SPA café will be located BayAvenue at Queensbay, Bayan Lepas. This city

was chosen is because it provide an environment to relax and because the

target market fits the needed for SPA café to success. The distribution

channel is we have a physical shop and direct selling to the customers.

Promotion

Communication objective

The 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

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Increase sales from 0% to 70%

The communication methods

SPA café will use different methods and techniques of promotion in order to

achieving promotional objective. The promotion mixes that SPA café use are

show as follows:

Personal selling

Direct response promotion – website

Advertising

Sales promotions

(Refer 2.5 for the SPA café’s marketing tactics and programs)

Physical

The physical environment of SPA café is very important to customers and

therefore we need to manage the environment to achieve a state aim. How

we elaborate disposal the environment can be seen in appendix I.

Price

According to Hitt et al. 2007, because differentiation product satisfied

customers’ unique needs, so we charge the price of product in premium price

those customers willing to pay. Price skimming strategy will be used by SPA

café. It will aims to sell to the top of the market or the top of the demand

curve at high price before aiming at more price sensitive customers (Quester

et al. 2001). The target market is one who is more concern about the quality

and uniqueness and they are willing to pay the high price.

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We also employ promotional pricing strategy when we launch new product to

entice customer to try new product.

Process

There will be a standard services and operating principles. More information

can be found in section 4.4 and 4.5.

People

Human resource is playing a significant role in every organization.

Employees must be motivated and well trained in order to ensure that high

standards of services are maintained. The personal and remuneration

policies can be found in section 3.3.

2.4.2 Positioning statement

For our most important target market, local residents who are more health

conscious, curious and need a place to shop for relax, the SPA café offer a

secret special creation of tea, dessert that makes from flower tea and

comfortable place to enjoy. Unlike our competitors, our café offers exactly

what most customers needs.

2.5 Tactics and programs

The tactics which will be used by SPA café in order to meet the promotional

aim are using advertising, sales promotion and also e-marketing. For more

detail information can be found in appendix J.

The schedules of when the marketing tactics will be launch can be seen in

appendix K.

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2.6 Marketing Budget

These are the probably figures for the cost of the marketing at the grand

opening:

Flyer – 5000pcs * RM 0.30 = RM 1500

Reward card printed – 1000pcs * RM 0.40 = RM 400

Website = RM 180

Total cost = RM 2080

Others batch of flyer and reward card we will only print at that time and

needed.

3.0 Management Plan

3.1 Business structure

SPA café will be sole proprietorship owned by Chew Wan Chin. Chew Wan

Chin will also operate as manager of the café and solely responsible for café

profits, losses, legal and liabilities and HR management. According to Barrow

et al. (2008) state that as sole trader there is no legal distinction between you

and your business - your business is one of your assets. This means that if

the business fails then the creditors have a right not only to the assets of the

business, but also to my personal assets.

RM 100000 capital is needed for café to set up the business. This will be RM

50000 of personal investment and the rest of RM 50000 will be loan from the

back.

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3.2 Management structure, function and rationale

The management structure of SPA café can be seen in appendix M.

At the beginning, SPA café will recruit 1 baker, 1 alimentation consultant and

2 waiters/ waitress. All workers are belonging to full time worker and their job

design was the vertical expansion of tasks, which is called job enrichment

(Bratton and Gold, 2007). For example, SPA café waiters not only serve the

customers 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 policies

Since SPA café is a service oriented company, therefore human resource is

playing a significant role.

3.3.1 Recruitment policies

Getting the right people to work is very important in every organization. SPA

café’s will be scrupulous in recruiting employee in order to getting right staffs.

More information about SPA café recruitment policies can be seen in

appendix N.

3.3.2 Employees training program

SPA café will provide training program for staffs. It will be on job training,

because it provides the advantages of hand-on experience and an opportunity

to build a relationship between supervisor and employee (Snell and

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Bohlander, 2004). However, the employees will have been equipment

training, steeping teas instruction and general orientation training 1weeks

before opening. On the other hand, employees will also be train the standard

way of greeting customers (Refer appendix O for more detail on what will be

include in this).

3.3.3 Employees incentive

In managing people, reward system emphasizes a core facet of the

employment relationship. The reward system enables an organization to

attract and retain suitably qualified workers to perform the work of the

organization (Bratton and Gold, 2007). Beside given base pay, SPA café also

will provide other reward in order to retain suitably qualified workers and

ensure all staffs are treated impartial. The list of the salaries and reward for

staffs can be seen in appendix P.

3.4 Creditor & debtor policies with clear rationale

In case those unlikely events occur and induce the café does not succeed, at

preliminary stage we will loan from bank and to pay all the credit, because

since this kind of business services is not many in Penang, the competitive

rivalry is low, so there will be more opportunity and potential, therefore I

believe that aftertime can reclaim back the originally investment. Unless

really cannot persist, then we just only will sold all the assets in order to pay

all creditors.

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4.0 Operation Plan

4.1 Location

SPA café will be located BayAvenue at Queensbay, Bayan Lepas. The

location map can be seen in appendix Q. There have 3 and 4 storey shop lot

unit type; SPA café will rent 3 storey type and at ground floor shop lot. The

rental will be cost between RM 3000-3500.

4.2 Suppliers

A list of SPA café’s supplier can be found in appendix supplier list R.

4.3 Equipment needed and Set-up costs

SPA café will need a different of equipment and asset purchases. The costs

are show as following:

Asset – RM 25695

Equipment – RM 2658.10

Renovation and decoration – RM 10000 (include paint, decoration flowers,

partition, cabinet and wall shelf, kitchen and washroom fitment). This will be

accomplished by renovation contractor.

The list of Asset and equipment needed can be found in appendix S.

4.4 Standard Operational Procedures

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SPA café will have many operational procedures in place to ensure that

smooth running of the café. The standard operational procedures include the

following:

Key point of services

Selling method

Access to website

Reservation

Customer complaint

4.4.1 Key point of services

SPA 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 procedure

SPA café will charge and make a payment by use a cash payment method

which has attraction in that when deliver product or service we are sure of

getting paid and will have no administrative work in keeping tabs on what in

owned (Barrow et al. 2008). Every day we will reckon the bills at the end of

the day. And will bank in the cash every 1 week.

4.4.3 Access to website

The staff must access to the website every day in order to know the people’s

respond, recommendation and also to reply the enquiry.

4.4.4 Reservation

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Since the café will limited number of customers, the customers can make a

reservation before coming. The reservation is being taken over telephone or

face to face, we has a standard format in doing so (refer appendix U).

4.4.5 Customer complaint

If customers have complaint, the complaint will be deal immediately. In order

to apologized and make customers well pleasing and excuse, we will offer the

discount to them and offer them a free voucher for next visit and will be sure

that it exceeds their expectation. The staffs never argue with customers or

attempt to make excuses. We encourage employees solve the problem out

themselves speedy, but always inform manager what the problem.

4.5 Quality Assurance Procedures

SPA café will have several quality assurance procedures to ensure the quality

at all time.

Quality of services:

To ensure the quality of the services, the standard training and services are

given to the staffs. All staff will be present friendly, smiling and caring good

attitude to customers.

Quality of the material:

As we is promoting fresh, we will buy the tea in small amount and consume it

preferable within 3-5 months and all teas will be store preferably in container

to keep tea away from (sun) light and humid conditions. For those material to

making cake and others, we will buy in sufficient amount and consume within

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1 week. In order to maintenance the food and teas quality assurance to all

the 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 ensure

the foods are fresh, the leavings food will distribute to all the staffs to take

home. The teas process method will be follow the steeping instruction,

because a combination of weight of tea, brewing time, and water temperature

determines the best infusion while cleanliness and water quality will be

conditions for a perfect cup.

5.0 Financial Plan

5.1 Start up Costs

Pre launch marketing RM 2,080 (flyer, website, reward card

printed)

Register Company name RM 30

Pre opening expenses RM 38,951 (asset purchases, equipment

cost, renovation and decoration cost, other

utilities cost)

Shop rental RM 3,200

Total RM 44,261

Cash injection RM 50,000 (director)

RM 50,000 (loan from bank)

Opening balance RM 55,739

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5.2 Cash flow forecast for one year

The cash flow assumptions can be found in appendix V. The revenue

assumptions are show in appendix W. The cash flow forecast can be seen in

appendix X.

5.3 Profit and Loss account for one year

The cash flow projection will be used to complete the profit and loss account

which can be seen in appendix Y. At the first year, SPA café will be loss RM

6655.

5.4 Break even analysis

Variable unit cost = 64700/231993

= 0.27

Contribution per unit = 1- 0.27

= 0.73

Fixed cost = 217105 / 0.73 = 297404.10

Break even point = 297404.10

6.0 Contingency Plan / Business control

6.1 Creditor policies

In case those unlikely events occur and induce the café does not succeed, at

preliminary stage we will loan from bank and to pay all the credit. Unless

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really cannot persist, then we just only will sold all the assets in order to pay

all creditors.

6.2 Personal and personnel position

For next year started, the café will provide extra individual incentive (merit

pay) for employee. A merit pay program links an increase in base pay to how

successfully an employee performance his or her job (Snell and Bohlander,

2004). This is in order to motivate employees.

6.3 Marketing control

In order to make profit in next year, we will put more effort on marketing in

order to increase sales.

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References:

Bohlander, G. & Snell, S. (2004) Managing Human Resources, 13th ed., USA:

Thomson South Western.

Bratton, J. & Gold, J (2007) Human Resource Management – Theory and

Practice, 4th ed., Basingstoke: Palgrave Macmillan.

Department of Malaysia statistics (2008) Consumer Price Index Malaysia

August 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&Itemi

d=11> [Accessed 23 October 2008]

Page 22 of 70

Dr Suku Bhaskaran (2006) OPPORTUNITIES FOR SNACK FOODS IN THE

HEALTHY EATING ERA, Food Marketing Research Unit Faculty of Health,

Engineering and Science Victoria University Australia

Dr. 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 Minister's Department, Malaysia (2008)

Euromonitor International (2008) Country factfile [online], Available from:

<http://www.euromonitor.com/factfile.aspx?country=MY> [Accessed 5

November 2008]

Hill, E. & O’Sullivan, T. (1999) Marketing, 2nd ed, USA: Addison Wesley

Longman 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 Corporate

Strategy, 8th ed., Harlow: FT Prentice Hall.

Page 23 of 70

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 Malaysian

Women [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].

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Summary [online], Available from:

<http://www.mier.org.my/surveys/index.php#meo> [Accessed 23 October

2008]

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[Accessed 25 October 2008].

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Available from:

<http://www.gov.my/MyGov/BI/Directory/Business/BusinessByIndustry/ICT/>

[Accessed 23 October 2008]

Page 24 of 70

Phua Kai Lit (2001) The Malaysian Healthcare System, Socioeconomic

Changes and New Business Opportunities, Thesis (PhD), International

Medical University

Queensbay master plan [online], Available from :<

http://www.queensbay.com.my/qbsitemap.php> [Accessed 30 October 2008]

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from :< http://www.perkeso.gov.my/Jadual_Caruman4.pdf > [Accessed 10

December 2008]

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http://www.epu.jpm.my/New%20Folder/Figures2008/chapt1.pdf> [Accessed

23 October 2008]

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<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 30

October 2008].

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http://en.wikipedia.org/wiki/List_of_countries_by_life_expectancy> [Accessed

30 October 2008].

Page 25 of 70

Quester, P. G., McGuiggan, R. L., McCarthy, E. J. & Perrealt, W. D (2001)

Basic Marketing – A managerial approach, 3rd ed., Australia: The McGraw -Hill

companies.

Barrow, C., Barrow, P. & Brown, R. (2008) The Business Plan Workbook, 6 th

ed., USA: Kogan Page.

Appendix A

Sample Menu

Flowers Teas

Single flavor tea / pot RM10.00

Mix 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

o Jasmine

o Lemon Balm

o Ginseng Flower Artistic flower

tea

o Honeysuckle

o Hibiscus Flowers

o Canary-creeper

Artistic flower tea RM9.90

Desserts

o Cake / slice RM5.50

o Ice cream / scoop RM2.00

o Jelly / set RM2.00

Other

o Cookies / pack RM5.50

o Moon cake – (only available on moon cake festival)

Page 27 of 70

Appendix B

Target market

SPA café will be located at Bayan Lepas, town of Penang. The population of

Penang state is 1,313,449 people, and Bayan Lepas population is 141,000

people, majority of population which 46.5% is Chinese (see appendix C).

Refer to department of statistics Malaysia, the most population age group is

15-64 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 64

years, old and I assume that age group of 29-45 years old have better

purchasing power.

According to Wikipedia, the life expectancy at birth (years) of Malaysia overall

is 74.2, male is 70.2 and female 76.7, by this we can know that the female are

more expectancy at birth.

Page 28 of 70

SPA café has decided to target and serve at age group between 29-45 years

old as primary target market by using concentration strategies, which is an

organization focuses all its attention on a single segment in the market (Hill

and O’Sullivan, 1999). Because such café are providing many different

beauty treatment efficacies, so it will obtain female favor, especially white

collar. By this SPA café major target is on feminine market, Chinese and

medium -upper level of people.

Appendix C

Figure 1: Population distribution by states and territories

State   Population  Area (km2)  

Pop. density  

Urban pop(%)  

Bumiputra (%)  

Chinese (%)  

Indian (%)  

Selangor 4,188,876 7960 526 87.6 53.5 30.7 14.6

Johor 2,740,625 18987 144 65.2 57.1 35.4 6.9

Sabah 2,603,485 73619 35 48.0 80.5 13.2 0.5

Sarawak 2,071,506124450

17 48.1 72.9 26.7 0.2

Perak 2,051,236 21005 98 58.7 54.7 32.0 13.0

Kedah 1,649,756 9425 175 39.3 76.6 14.9 7.1

FT Kuala Lumpur

1,379,310 243 5676 100.0 43.6 43.5 11.4

Penang 1,313,449 1031 1274 80.1 42.5 46.5 10.6

Kelantan 1,313,014 15024 87 34.2 95.0 3.8 0.3

Pahang 1,288,376 35965 36 42.0 76.8 17.7 5.0

Terengganu

898,825 12955 69 48.7 96.8 2.8 0.2

Negeri Sembilan

859,924 6644 129 53.4 57.9 25.6 16.0

Page 29 of 70

Malacca 635,791 1652 385 67.2 63.8 29.1 6.5

Perlis 204,450 795 257 34.3 85.5 10.3 1.3

FT Labuan 76,067 92 827 77.7 79.6 15.8 1.3

FT Putrajaya

45,000 148 304 100.0 94.8 1.8 2.7

Source: National Census 2000 [8], Department of Statistics Malaysia. Putrajaya data

is for 2004.

Appendix D

Figure 2: Population age group

Page 30 of 70

Source: Malaysia official statistics, 2008

Appendix E

Environment scan

Macro environment factors

Page 31 of 70

Factors

Social 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,

Page 32 of 70

with elevated food prices lifting inflation to

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 Malaysia's 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 factors

Since this kind of business services is not many in Penang, the competitive

rivalry is low, so there will be more opportunity and potential. Because not

Page 33 of 70

have so many this kind café can let customers to choice, therefore the

bargaining power of buyer is low. Owing to the café will order the flowers teas

from foreign country (China /Taiwan); the bargaining power of supplier is

medium, due to a lot of supplier in the market of those countries. To

conclude that, the market is attractiveness because today’s people are more

concern healthy, and there have a lot of potential customers.

Appendix F

SWOT analysis

Strengths Weaknesses

I am a responsibility person

ability to work independently or

I am not professional for make

tea

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as an effective team member

I have a baking and cooking

skill

I like to try new recipe

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

they're done or solved

I don’t like tight with long

business hours

I am not a risk taker

Poor communication in English

Opportunities Threat

Social economic changes

Government encourages

entrepreneurs set up a

company

Unemployment rate is high

Consumers expenditure on

food are keeping increasing

Today’s people are more

concern healthy

Economy is under threat of a

recession

Competitors from other

establishments, e.g. Starbuck,

other SPA center is a

substitute place for people to

relax

Future bargaining power of

supplier

Page 35 of 70

Appendix G

Design of customer reward card

Front Back

Page 36 of 70

Appendix H

Marketing strategy

SPA café differentiation approach as show in following:

Page 37 of 70

A

B

C

Rew

ard

card

A= get 1 free dessertB = get 1 pot of tea (single flavor)C= get 1 pot of tea (mixture flavor).

Product differentiation: SPA café will offer a secret special creation of tea and

dessert (e.g. flower tea cake, ice cream) that makes from flower tea which are

different to others. Besides, all the flower teas that serve are natural and

healthy. 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, we

have alimentation consultant to help different constitution, age and sexual of

consumer to analyze and select which teas are suitable for them. Beside that,

the café will limited number of customers, because is to preserve café’s

comfort atmosphere, and in order to assure every customers be able to enjoy

the perfect environment. By limited the number of customers, instead can

arose the customer’s curiosity and be able to bring customer’s first try interest.

Personnel differentiation: The café will through hiring and select people who

are courteous, friendly, responsibilities, and respectful to customers. Beside

that they must able respond quickly to customer requests and problem. SPA

café will encourage staff attend a nutrition courses, in order to accord with

company mission statement.

Location differentiation: SPA café will be located at BayAvenue, Queensbay,

Bayan Lepas. This city was chosen is because Queensbays is the only

development in Penang that encompasses and entirely new upmarket

waterfront development, and it is currently the most anticipated and exciting

project to hit the services of the island. BayAvenue unique and features are:

within an integrated development. The largest mall, the marina and luxurious

homes are all within minutes of each other. Beside, is surrounded by an

established and affluent residential neighborhood. The shop is modern

Page 38 of 70

façade design, and lushly landscaped boulevard areas. Also is a

CYBERCITY that provided the technology hub. SPA café use the location as

a point of differentiation the class and image of the shop.

Image differentiation: SPA café will develop an image as a relaxing and

healthy centre. SPA café want to preserve attractive and surrounding

atmosphere of café.

Appendix I

Physical environment of SPA café

Page 39 of 70

We will employ different technique to ensure that the physical environment

reflect the style and features of the café. These will be discussing according

as follow.

Decoration

The 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 to

freshome.com, room color can influence people mood and thoughts. Lighter

versions of purple, such as lavender and lilac, will bring the same restful

quality to room. It is also feminine and romantic. The use of decoration

flowers will add ambience of the café.

Furniture

The furniture that SPA café will be use is comfortable leisure chairs and

vitreous tables which will fit with the image of cafe.

Ambience

SPA café is full of aroma. People can use aromatherapy to relax, to balance

and stimulate the mind, the spirit, and the body. Using essential, pure oils,

they can achieve psychological and physical well-being. The aroma triggers

positive 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

Beside that the lighting inside the café will be kept soft in order to retain

romantic environment. Furthermore the café also will play soft music.

Appendix J

Marketing tactics

Page 41 of 70

SPA café currently is new and due to potential customers do not know about

the business, we will use three methods of promotion tool to communications

in order to achieve marketing objectives. There are:

Advertising:

Kotler et al. (2006) state that advertising can reach masses of geographically

dispersed buyer at a low cost per exposure. In order to create awareness of

café, SPA café will use flyer and advertise in newspaper to inform the

potential 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 it

serving 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 using

this method (cut coupon) we can calculate how much of the customer know

about the café.

Sales promotions:

In order to create customers favorable feeling, build customers preference

and purchase, the promotion tools we will use is samples to entice customer

to try new product. Beside that, we also launch loyalty program in order to get

customers 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

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 whether

success and to be welcome or not. For loyalty program we can know whether

customers have favorable feeling and preference our café or not.

Website:

In order to build customers conviction and purchase, SPA Café will create

own website. This will be organization sites, SPA cafe website will provide

detail information of SPA café and it serving. Moreover inside the website

also include features of each tea. This will allow potential customers to see

what sort of business is and know more about benefit of drinking flower teas.

Beside that it will provide an opportunity for customers to make comments

and enquiry about the café, this will attract and encourage people to post or

email the newsletter to friends and encourage word of mouth

recommendations.

By using this method, we can save the cost because the website is perpetuity

and the scope to let people know is widespread.

Appendix K

Marketing tactics schedule

Page 43 of 70

The promotions schedule of SPA café on pre-launch, launch and

maintenance activities will be as follows:

Tactics

Month

Flyer Newspaper Sales

promotion

website

Pre-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 to

introduction people and others batch will be distribute in month June, Sept

and 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. The

approximate time is the month before opening when renovation and

Page 44 of 70

decoration starts. This will allow potential customer to know what business is

grand opening.

Appendix L

Design of flyer

Page 45 of 70

Appendix M

Management structure

Page 46 of 70

Chew Wan ChinProprietor and manager

Baker Alimentation consultant waiters/ waitress

Since there are only few employees in café, therefore all of employees are

directly report to the manager. However we encourage all employees to have

their say and discuss matter together.

The job designs that SPA café use which is job enrichment, because job

enrichment may be accomplished by increasing the autonomy and

responsibility of employees (Snell and Bohlander, 2004). For the accounting

function will be handles by independent consultant.

Depending on how success of café, the additional staff will be recruit more

aftertime when need more.

Page 47 of 70

Appendix N

Recruitment policies

This section will be dividing into 3 sections. These are:

1. Candidates qualification

2. Channels used to attract candidates

3. Selection

These will be discussed in following:

1. Candidates qualification

The qualification of staffs needed by SPA café can be seen as follow. According to

Bratton and Gold (2007) job specification is skill required to perform the job and physical

demands of the job, below is a minimum qualification need for each position:

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

make your own dough for such

Page 48 of 70

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, Bachelor's 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

apply

Waiters/ 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.

Proficient in English, Bahasa

Page 49 of 70

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 candidates

SPA café will use two approaches to attracting potential applicant. These are

advertising and notice board. According to Snell and Bohlander (2004) state that

advertising is the most common methods of attracting applicants. By using

advertising can reaching a large audient of possible applicant. Therefore SPA

café will advertise in newspaper to recruit staff. And by notice board which will be

accessible by the general public.

3. Selection

Once receive the applicant’s application, we will select the candidates by using

interview. The interviews methods that we use are in several ways, which is

nondirective interview and situational interview. According to Snell and

Bohlander (2004) nondirective interview is an interview in which the applicant is

allowed the maximum amount of freedom in determining the course of the

discussion, while the interviewer carefully refrains from influencing the applicant’s

Page 50 of 70

remarks. Situational interview is an interview in which an applicant is given a

hypothetical incident and asked how he or she would respond to it. Nevertheless

the interviewer will be maintenance friendliness, and make the candidate feel

relaxes and not threatened which will allow them to be more courageous to give

expression.

Appendix O

Training of greeting customers

Page 51 of 70

The way to greet customers on arrival is really important, because the first

impression 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 customers

From time to time, employees will be trained the proper way of serving customers

the best.

Appendix P

Salaries and reward for staff

Page 52 of 70

Below is a list of the staff and their rewards:

Baker Alimentation

consultant

Waiter / waitress

(per person)

Basic salary RM 1800 RM1800 RM 1100

EPF (Employees

Provident Fund)

contribution

12% @ basic

salary = RM 216

12% @ basic

salary = RM 216

12% @ basic

salary = RM132

Socso (Social

Security

Organization)

Employer

contribution = RM

30.65

Employer

contribution = RM

30.65

Employer

contribution = RM

18.35

Total RM 2046.65 RM 2046.65 RM 1250.35 *2 =

RM2500.70

Extra

Overtime

allowance

RM 1800/26

days/8 hours*

1.5% = RM

12.9/hour

RM 1800/26

days/8 hours*

1.5% = RM

12.9/hour

RM 1100/26 days/

8 hours* 1.5% =

RM 7.93/hour

SPA café will provide extra allowance for those who are work overtime.

Appendix Q

Map of BayAvenue at Queensbay, Bayan Lepas

Page 53 of 70

Source: Queensbay master plan

Appendix R

Suppliers

Page 54 of 70

SPA café need the various suppliers to perform the business. The list is as

follows:

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 contractor

Appendix S

Equipment needed and Set up costs

Page 55 of 70

The list includes the entire asset and equipment needed and the cost.

Asset costs

Asset Quantity Unit cost Total cost

Table and chair 10 set RM 1399 RM 13990

Air conditioning @

LG

2 RM 869 RM 1738

Computer POS

cash register

1 RM 2249 RM 2249

Fridge 1 RM 1299 RM 1299

Oven 1 RM 1289 RM 1289

Mixer 1 RM 2080 RM 2080

Showcase 1 RM 3050 RM 3050

Total RM 25695

Equipment

Equipment Quantity Unit cost Total cost

Glass teapots set 20 RM 78 RM 1560

Induction Cooker

@Takada

1 RM 199 RM 199

Digital thermo pot

@Panasonic

1 RM 149 RM 149

Dessert spoon

(6pcs/set)

5 set RM 4.90 RM 24.90

Dessert fork

(6pcs/set)

5 set RM 4.90 RM 24.90

Dessert plates

(6pcs/set)

5 set RM 10.90 RM 54.50

Dessert cup 20 RM 3.85 RM 77

Wine glass 20 RM 9.90 RM 198

Page 56 of 70

Blender 1 RM 70.90 RM 70.90

Round glass

container

10 RM 4.90 RM 49.90

Ovenware RM 150

Kitchen utensil RM 100

Total RM 2658.10

Above asset and equipment list is just for at the beginning. We will add more the

asset and equipment aftertime when need more.

Appendix T

Page 57 of 70

Key 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

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 left

Appendix U

Page 58 of 70

Reservation format

Employees should take the following information when taking the reservation:

Name

Date

Time

Contact number

Party size

Any special requirements

We will arrange and manage the timing to ensure that all customers do not come

at once.

Appendix V

Page 59 of 70

Cash flow assumption

Capital 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)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

Appendix W

Revenue assumption

Below are some sales assumptions for every month in first year:

Month Pruduct Quantity Unit Price (RM) Sub-total Assuumption

May single flovor tea /pot 480 10 4800pre launch, sale promotion, news release

mix flavor tea /pot 550 15 8250cake,cookies /silce/ pack 280 5.5 1540ice cream (scoope), jelly (set) 280 2 560artistic flower tea (cup) 110 9.9 1089total 16239

June single flovor tea /pot 550 10 5500 Distribute flyermix flavor tea /pot 580 15 8700cake,cookies /slice/ pack 260 5.5 1430ice cream (scoope), jelly (set) 230 2 460artistic flower tea (cup) 120 9.9 1188total 17278

July single flovor tea /pot 610 10 6100 moon cakefestivalmix flavor tea /pot 650 15 9750cake,cookies /slice/ pack 280 5.5 1540ice cream (scoope), jelly (set) 330 2 660mooncake /set 80 32 2560artistic flower tea (cup) 150 9.9 1485total 22095

August single flovor tea /pot 630 10 6300 Moon cake festivalmix flavor tea /pot 680 15 10200cake,cookies /slice/ pack 330 5.5 1815

Page 61 of 70

ice cream (scoope), jelly (set) 350 2 700mooncake/set 150 32 4800artistic flower tea (cup) 180 9.9 1782total 25597

Sept single flovor tea /pot 480 10 4800 Distributr flyermix flavor tea /pot 630 15 9450cake,cookies /slice/ pack 310 5.5 1705ice cream (scoope), jelly (set) 330 2 660artistic flower tea (cup) 130 9.9 1287total 17902

Oct single flovor tea /pot 430 10 4300mix flavor tea /pot 580 15 8700cake,cookies /slice/ pack 280 5.5 1540ice cream (scoope), jelly (set) 380 2 760artistic flower tea (cup) 150 9.9 1485

Page 62 of 70

total 16785

Nov single flovor tea /pot 480 10 4800 News releasemix flavor tea /pot 550 15 8250cake,cookies /slice/ pack 330 5.5 1815ice cream (scoope), jelly (set) 380 2 760artistic flower tea (cup) 180 9.9 1782total 17407

Dec single flovor tea /pot 530 10 5300 Christmas, distribute flyermix flavor tea /pot 730 15 10950cake,cookies /slice/ pack 430 5.5 2365ice cream (scoope), jelly (set) 380 2 760artistic flower tea (cup) 130 9.9 1287total 20662

Jan single flovor tea /pot 480 10 4800New Year

mix flavor tea /pot 680 15 10200cake,cookies /slice/ pack 330 5.5 1815ice cream (scoope), jelly (set) 380 2 760artistic flower tea (cup) 150 9.9 1485total 19060

Feb single flovor tea /pot 430 10 4300 Valentine Daymix flavor tea /pot 730 15 10950cake,cookies /slice/ pack 430 5.5 2365ice cream (scoope), jelly (set) 330 2 660artistic flower tea (cup) 130 9.9 1287total 19562

March single flovor tea /pot 330 10 3300mix flavor tea /pot 630 15 9450cake,cookies /slice/ pack 410 5.5 2255

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ice cream (scoope), jelly (set) 430 2 860artistic flower tea (cup) 110 9.9 1089total 16954

April single flovor tea /pot 480 10 4800mix flavor tea /pot 780 15 11700cake,cookies /slice/ pack 530 5.5 2915ice cream (scoope), jelly (set) 380 2 760artistic flower tea (cup) 230 9.9 2277total 22452

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Appendix X

Cash flow forecast

Month: Pre-Start

1 2 3 4 5 6 7 8 9 10 11 12 Totals

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 17,40

7 20,66

2 19,06

0 19,56

2 16,95

4 22,45

2 331,993.0

0

                             

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

Owner's 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 19,58

1 19,53

1 21,08

1 19,48

1 18,88

1 19,83

1 284,005.1

0 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 50,27

7 48,10

3 49,23

4 47,21

3 47,29

4 45,36

7  

Closing Cash Balance 53,587 50,945

49,092

49,756

55,222

53,993 50,277 48,10

3 49,23

4 47,21

3 47,29

4 45,36

7 47,98

8  

*The bank loan period is 4 years. Loan repayment = RM50000/ 48month

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Appendix Y

Profit 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 69600Employee benefits 9528Rent 41600Utilities (Heat & Light etc.) 5320Insurance 1200Travel 2340Telephone 1320Marketing/promotion 6980Bank charges 1992Depreciation 7668Owner's drawing 26400

Total Operating Expenses 173948 Net Profit (6655)

 Profit (Loss) Before Taxes 0 Net Income (Loss) (6655)

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