Kopi Shop Pte Ltd (shall be known as "Kopi Shop") is one of a few food court operators in Singapore. The firm was founded by its CEO, Mr Alan Tam, some five years ago, and it has a small team of ten operations staff. Kopi Shop operates five food courts around the island, mostly in the sub-urban malls, and the food court stalls are leased to hawkers while Mr Tam and his team manage the cleaning and other operational areas. Kopi Shop distinguishes itself from other food courts by serving only halal-certified dishes and drinks, and this is aligned with Mr Tam's belief that his business shall cater to all Singaporeans. Business has been above average and Kopi Shop's food courts have been attracting a good crowd of mostly seniors and families living in the housing estates due to the attractively priced hawker food served in air-conditioned comfort. Having recently emerged from the COVID-19 pandemic, Mr Tam is trying very hard to re- position his food court business to attract the younger crowd to dine at his food court in an effort to increase revenue. However, any expansion plans have to be halted as finances are tight and Mr Tam has difficulty in recruiting more people to join his operations team. Regardless, Mr Tam has devised a list of projects for his team to consider for the new financial year, 2024: Project A: Conduct a series of workshops with selected hawkers and valued customers to develop new menu items. Project B: Contract Singapore University of Social Science (SUSS) to train Kopi Shop staff on Food Court Management. Project C: Replace the aging cooking exhaust system at Waterway Point Food Court. Project D: Replace Kopi Shop's Food Court Point of Sales System to an advanced version that is integrated with Amazon's Web Services. SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) BUS353 Page 4 of 6 Tutor-Marked Assignment Project E: Partner with ST Engineering to develop a robotic food server. Project F: Collaborate with a food blogger to develop a series of Insta Stories on hawker food. Project G: Participate in an industry-led initiative to develop a food-safe kitchen disinfectant. Question 1 (a) (b) (c) Organisation Strategy Mr Tam has collated a list of projects to embark on. Define the Project Portfolio Management System and appraise how this system can help Kopi Shop to minimise or eliminate the impact of three (3) problems that can arise in a multi-project environment. (20 marks) Project Classification Classify each project, Project A to Project G, into one of Compliance, Strategic or Operational categories. Differentiate how each project can help Kopi Shop meet its strategic objectives and/or social functions. (49 marks) Project Selection Mr Tam has decided to use a variety of methods to assess the viability of projects. (1) For Project A and B. Mr Tam is interested in using Payback Project A is estimated to cost $12,000 and generate an annual cash flow of $24,000, whereas Project B is estimated to cost $20,000 and generate an annual cash flow of $50,000. Mr Tam indicates that the projects must earn a minimum of 14% annually and must breakeven within two years. Assemble an analysis of payback period (in years) and rate of return (in percent) for each project following the Excel output format found in page 42, Larson and Gray (2020). Discuss which project shall be implemented using this method and give two (2) reasons to support your answer. (15 marks) @ For Project C and D, Mr Tam is interested in using Net Present Value. The information for both projects are as follows: Table 1: Projected Cash Flow (SGS) for Project C and D Project C Project D Year Inflow Year Inflow 0 1 2 3 $50,000 $40,000 $40,000 Outflow $150,000 0 1 2 3 $60,000 $50,000 $60,000 Outflow $100,000 Mr Tam indicates that the projects must earn a minimum of 14% annually and must consider an inflation rate of 2%. Assemble a Net Present Value analysis for each project following the Excel output format found in page 43, Larson and Gray (2020). Discuss which project shall be implemented using this method and give one (1) reason if Mr Tam should consider this project or not. (16 marks)