Asscssmcnl: l - Business Plan You are about to open your business a restaurant as you have worked as a cook for 10 years and have obtained all recipes for Asian food. Therefore, you are going to develop a business plan for your business and for your business loan application. As you are establishing a business, you have to design internal policies and procedures and performance objectives too. Assume that you are going to open a small restaurant in your city CBD area, and a university and business office buildings are located near your restaurant. The following information is given to this assessment, and you must make your business plan in accordance with the given information. Business Name: Oriental spoon Major products: Asian food dishes Price range: $10~$22 for food (dished), $3~$10 (drinks/desserts) Pricing strategy: Market Penetrating Pricing - set a low initial price on products to gain high sales or market share. Therefore, it is 10% cheaper than their competitors' price. Selling points: as there are many restaurants that provide similarly priced food, Oriental spoon will provide all Asian dishes in 5 mins from order taking, and the Reward program will be launched to the customers (10 dishes purchases, 1 free dish given). The food (dishes) has more value than its prices and is always fast-cooked as it targets students and business employees. Promotion strategies: at the moment, you have considered using flyers (discounts vouchers) Level of market competition: Very high as there are more than 10 similar restaurants surrounding your restaurant. Size of the restaurant: 320 m2 (hall: 240m2) Use of POS (point of sales)I system: Yes Needs of employment: Yes approx. 5 employees, 3 cooks, 1 supervisor, 1 Customer service manager, 1 marketing manager Operating hours: 7 days a week, 11:30 am to 7:30 pm Capital investment: $100,000 Market Opportunity: 2 hotel apartments are under construction and will be completed soon. Goals and Objectives: Goals: Survive in the market by making a net profit of $200,000 at the end ofthis financial year Objectives: 0 Manage COGS as at 20% of the sales each month 0 Achieve $2000 weekly sales per serving employees 0 Achieve sales of drinks/desserts for 20% of total food sales 0 Achieve average sales of $1 5 per customer 13 AssesSrncnl: l *' BUSincSS Plan The Scenario in Assessment 1 is to be used in Assessment 2. Question 1: a. Identify the key personnel from the list for the business operations - Serving employees - Cooks - Customer service manager - Marketing manager b. How do you ensure that the key personnel are always available for the business operation to run smoothly? (PC 2.2) Question 2: The restaurant has been operating for 1 month now, and you have received the outcomes of the business operations. You set up the following performance measurement: No of customer visit per day Sales turnover Sales per serving employee No of complaints received Sales per customer Production time per dish Return on assets Retu rn on investment The outcomes of the business operations Items Jan Sales $28,800.00 No of customers visits 2100 No of complaints received 10 Sales per customers $13.71 Production time per dish Ave.13m305 Sales per serving employee $338.82 You can analyse the outcomes of the business operations; however, you have been informed by the manager that the number of complaints received is confusing as it is not categorised by food and customer service as the business does not have a proper customer feedback procedure and the production time per dish was not accurate as the proper time cannot be measured. Required: Recommend how to refine these issues. (PC 2.3, KE 1.3, 2) Question 3: You are required to report the outcomes ofthe business operations to the investors every 6 months. In order to report on the key aspects of the business operations, what must be included in the report? In your answer, you must list the factors included in the report and explain why these must be included. (PC 2.4 PE 5, 6, KE 4, 5) 14 Question 4: You are required to analyse the performance ofthe restaurant, and the following information is given. Food Drink Total Food Drink Total visitors ViSitOI'S January 24000 5280 29280 24000 4800 28800 1952 2100 February 24000 5280 29280 24000 4200 28200 1952 2250 March 25000 29100 2033 2270 April 25000 31400 2033 2310 May 26000 30600 2115 2290 June 26000 30500 2115 2320 Planned Actual outcome Month Sales COGS Sales COGS January 29280 5856 28800 6336 February 29280 5856 28200 6204 March 30500 6100 29100 6693 April 30500 6100 31400 7222 May 31720 6344 30600 7344 June 31720 6344 30500 7320 Note: During this period, the monthly average number of serving positions (employees) was 85 per month and they did not have enough breaks due to a shortage in staff. For example, if only 2 people (employees) work for 30 days in a month, total number of positions are 60, i.e. 30 days * 2 employees = 60 positions (PC 2.5, 3.1, 3.2, PE 2, 3.6, 3.7, 4, 5, 6 KE 2, 4, 5) Required: a. Conduct the variance analysis. b. Answer the following questions: Did the restaurant meet the targeted sales? If not, why was the restaurant not able to meet the target? Were the marketing activities successful? How can you tell? The restaurant planned the COGS to be 20% of the sales. Did the restaurant meet the target? c. From Part a, are there any significant failures that you can identify? If so, how can the restaurant resolve the issue? d. According to the serving employees' KPls, their weekly sales targets were $2000 per week. Did they meet the target? If not, does the restaurant have to amend its KPls? Question 5: Based on your findings at Question 3, write an email to report to the investors. (PC 2.5 PE 5, 6, KE 4, 5) Question 6: One ofyour team member's performance is not meeting Key Performance Indicators, nor are they expected to complete their own tasks. Identify possible ways to support the team member .(PC 3.3 PE 4, 5, KE 4) Question 7: 15 From Question 6, how can you consult with the team member effectively? (PC 3.3, PE 5, KE 4) Question 8: You are required to design ongoing review processes to manage the business operations. Explain why it is important and recommend steps should be placed in the ongoing review processes. (PC 3.4 PE 4, KE 2) Question 9: You have been approached by the manager and it has been suggested to sell soft liquor such as wine or beer to the customers. In order to sell liquors to the customers, what do you have to prepare? You will need to research this question. (KE 1.3) END ..._'l