Budget

from eacher

No working budget provided in the operational plan. This should detail the information in 2.1

2.1 CASE STUDY

Read the case study below and complete the activities.

CASE STUDY

Coffeeville opened its doors to the public in Melbourne in 2009 which was opened by Siblings Rufus and Emma Belcastran who both trained and worked in the hospitality industry over the years.

They decided to pool their skills, knowledge and passion for quality to open Coffeeville in 2009. Since then, the Belcastrans have been providing quality products to the busy city population. The family-oriented siblings understand the importance of healthy communities and they endeavor to run a business that values and supports communities on a local and global scale.

Coffeeville supports community and serves certified fair trade coffee. Where possible, Coffeeville sources local ingredients and products and provides a friendly environment for staff and customers.

Coffeeville also aims to provide healthy choices and sources organic ingredients and products and provides vegetarian and gluten-free options.

CoffeeVille is gaining in popularity and getting very busy. The owners have appointed a manager to manage their shop and also an Accounts Manager to look after resources and budgets. The intention and plan of the owners were to expand and have several coffee shops in Melbourne. The owners had prepared an operational plan initially when it commenced however now due to the popularity the owners have decided to expand its business.

The owners have consulted with the managers and colleagues about opening another coffee shop in Melbourne. Based on this, they have asked the manager to prepare an operational plan.

A) Research all relevant documents of CoffeeVille from its website as below

http://coffeeville.simulations.australiantrainingproducts.com.au/and analyse these documents. For ease of use, some of these documents have already been downloaded for you. Document the documents and your findings in the space below. (Guide: Long)

Documents	Explanation
Business Plan	A written document that describes in detail how a business usually a new oneis going to achieve its goals. A business plan show a written plan from a marketing, financial and operational viewpoint.
Marketing Plan	An operational document that outlines an advertising strategy that an organization will implement to generate leads and reach its target market. A marketing plan details the outreach and PR campaigns to be undertaken over a period, including how the company will measure the effect of these initiatives.
Operational Plan	To provide organization personnel with a clear picture of their tasks and responsibilities in line with the goals and objectives contained within the Strategic Plan. Basically, the Operational Plan is a plan for the implementation of strategies contained within the Strategic Plan.
Vision statement	An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action.
Mission statement	A brief description of why a company or nonprofit organization exists. It explains what the company does, who it serves, and what differentiates it from competitors. It's used to provide focus, direction, and inspiration to employees while it tells customers or clients what to expect from the business.
Policies and Procedures	Policies and procedures are designed to influence and determine all major decisions and actions, and all activities take place within the boundaries set by them. Procedures are the specific methods employed to express policies in action in day-to-day operations of the organization.
Risk management strategy and plan	The identification, assessment, and prioritization of risks or uncertainties followed up by minimizing, monitoring and controlling the impact of risk realities or enhancing the opportunity potential by applying coordinated and economical resources.

B) In order to set up a new coffee shop, research what would be the resource requirements.

You can refer to the following bloghttps://www.shopkeep.com/blog/coffee-shop-equipment-list for this task. You might also need to consult specialists responsible for setting up coffee shops and purchasing of equipment. List these below and explain why these would be needed. (Guide: Long)

Resources	Explanation
A High-Quality Espresso Machine	Many typical coffee drinks that your customers are likely to order have an element of espresso, either by itself or in combination with steamed milk, so you'll need an excellent espresso machine.. High-Quality Espresso Machine can make sure the coffee shop providing customers with access to a nice, hot cup of good quality coffee at any time of the day and quickly.
Coffee Grinder	To ensures the ground coffee doesn't clump together, keeps the beans cool while grinding and helps evenly distribute coffee in the basket. We can't make a top espresso unless we have a good quality grinder. The right grinder can make all the difference in the flavor profiles and the aroma of your coffee or espresso.
Refrigeration System	To keep food and drinks cold. Temperatures help food and drink stay fresh longer. The basic idea behind refrigeration is to slow down the activity of bacteria, so that it takes longer for the bacteria to spoil the food.
Containers, Pumps and Assorted Miscellaneous	The coffee shops necessitate the use of a large amount of beans and a huge selection of drink toppings, you must have the hardware to effectively use and store these items. This means pumps for all the syrups, boxes and crates to conveniently store coffee beans near your coffee makers.
Ovens, Toasters, and Devices Used for Cooking	The coffee shop serves breakfast sandwiches, or at least bagels and pastries. you'll need a reliable way to prepare your food quickly, so as not to hold up the efficiency of your operation.
Security System	Every mercantile business needs an excellent system to deter crime in and around their business. This may include security equipment such as cameras, burglar alarms (both in the coffee shop and on the front and back doors). There are a wide variety of choices on the market for security products and surveillance equipment. You'll want to find a company that will oversee installation and has experience and expertise preventing crime near your business.
Freezers and Cold Product Storage	The coffee shop serves food and drink combinations. Frozen food is a good choice because it's easy to store and has a long shelf life. A selection of frozen food that can be flash-baked in the oven should be kept up front for baristas to have easy access for orders. Then you'll need freezers, both in the front of your coffee shop where your baristas work, as well as in the back where inventory is stored
POS System and Related Hardware	Without an efficient and reliable point of sale system, the business can be slowed down by lags in payment processing, poor inventory management and untimely services and repairs. Especially POS is cloud-based, you won't have to worry about tracking your data or inventory because the system will help you do it all.
Dishwasher	It improves availability of flatware, glasses and kitchen dishes for coffee shop rushes. It increases efficiency of labor and kitchen space. It saves time by washing multiple dishes in a short time frame.
Financial resources	The financial resources that coffee shop owner have consist of the money they want to invest in order to start a business. If someone wants to start their own coffee shop, they need to make sure that the money that is available to spend is enough. This is how they will succeed in having a dynamic and productive business.
Rental premises	Rental premises mean the entire property owned by the Landlord on which the rental unit in which the Tenant resides is located, inclusive of all buildings, and rental units, and open and other areas on the property.
Human resources	Human resources is the set of the people who make up the workforce of an organization, business sector, industry, or economy. Similar terms include manpower, labour, personnel, associates or simply people.

Resource	Description	COST
A High-Quality Espresso Machine	Samsung ag2 FARA	$2130
COFFEE GRINDER	Phillips EP220/10	$621
Refrigeration system	Samsung RT22 FARA	$603.8
containers, pump	DZ43 cylinder 5 containers pump	$5 Per container $49.90 for pump
oven toaster and device used for cooking	Aerogaz HL	$70
security system	CCTV camera xiami 1080p	$40
freezer	Samsung RT22 Z	$2000
POS		$45 per piece
dishwasher	PHILLIPS EP43/8	$2500
financial resources	total cost required	$13000
rental premises	per month	$4000
human resource	LABOURER	$50 per day

Your assessor will allocate your colleagues from your class as the stakeholders and advise you of the date and time you are to attend the meeting. This is to ensure that all students get an opportunity to review the scenario by themselves and come up with the resources requirement themselves and benchmark with their colleagues. (Guide: Medium)

MINUTES OF MEETING
Purpose, objectives and elements of the meeting:	Resources require for Coffee Shop
Attendees including specialist assistance:	Knji, Nat Yuhi
Date and time:	6/7/222
Venue:
ITEM	RESPONSIBILITY	WHEN
Rental property	Owners	The residential tenancy agreement is a contract. It has standard 'terms' that are the tenant's and landlord's rights and obligations. When choosing a property, tenants should consider whether the property suits their needs.Important points to consider when looking for or inspecting a property: how much is the rent? is the property the right size, and is it suitable for children or elderly or disabled people? does the property have internet connection available, storage, parking, air-condition? is the property in the right location for work, schools, medical center, and is it close to public transport?
Staff	Manager and owners	Chef needs to design a menu and help with resource acquirement. Barista : hired 2 weeks before opening. It's important because business owners need employees that are able to get the job done, because employee performance is critical to the overall success of the company. Doing so helps determine strengths, weaknesses and potential managerial gaps in the business organization
Contractors	Manager and owners	Once the location is found, contractors need to be engaged to set up the coffee shop. The attraction of hiring an independent contractor is the reduced costs in: expenses, payroll, benefits, and other overhead. Lower overhead means less stress to bring in new business revenue to cover costs. ... A burden on small business is the uncontrollable costs of employee health benefits.
Marketing team	Manager and owners	We have to set up marketing team to create plan and process to make more sale and profit. Marketing informs your customers about the products or services you're offering them. Through marketing, the customers get to know about the value of the products, their usage and additional info that might be helpful to the customers.
Coffee machine	Manager	We have to buy coffee machine for the high quality and estimate the minimum and maximum coffee per day. It's important because you can make coffee to fast and short time. It's always key to a great cup of coffee and keeps your company ethics at a high standard.
Financial resources	Manager and owners	Prepare before start the business. Finance is one of the most important aspects of a business. With huge funds, daily cash flow and continuous transaction, managing and monitoring all of the above turn necessary. ... To be specific, financial management helps the organization determine what to spend, where to spend and when to spend. Good financial resources management is key to achieve the goals of the organization.
Perishables	Manager	Before you open the shop one month. There are other reasons why the right furniture is important such as increasing the morale and productivity of your employees. It is a fact that employees do better at their jobs when their furniture is comfortable, safe and attractive.
Furniture	Manager	Before you open the shop one month. There are other reasons why the right furniture is important such as increasing the morale and productivity of your employees. It is a fact that employees do better at their jobs when their furniture is comfortable, safe and attractive.

D) When developing an operational plan, consultation is an integral part of the operational planning process.

• You are now required to develop and implement a communication and consultation process to engage the relevant personnel during the development of the operational plan.
• Your consultation plan must include names and titles of staff, how often you are going to meet, timelines, form of communication and consultation.

You can use the template below as a guide. (Guide: Medium)

COMMUNICATION PLAN TEMPLATE
Company name:	CoffeeVille
Location:	Melbourne
Name of responsible person:	yuhi
Objectives:	Increase profit and sales by 10% Set up a new coffee shop
When	Who	How	Comments
Daily	Owner, contractor, supplier	Phone call	To keep up date with developments
Daily	Manager, supervisor	Email	Daily written progress update
Weekly	Contractor and supplier	email and phone call	Progress plan for following week
Weekly	Supplier	Email and phone call	Product update for following week
Monthly	Owner and Manager	written Report	Compare progress with the operational and business plan

E) KEY PERFORMANCE INDICATORS (KPI's)

After you have conducted the consultation process and gathered all the evidence, you are now required to incorporate key performance indicators in your operational plan for the Cafeteria and the new coffee shop to measure performance using the template below.

Key performance indicators	How
KPI 1	Wage Cost	Add up your wage cost for the week and your sale figures and work out the percentage of wages
KPI 2	Coffee Sales	Add up your coffee sales for the week and your sale figures and compare if it is meeting the target set out in the business plan
KPI 3	Food Cost	Add up your food expenses the week and your sale figures and work out the percentage of food costs

F) Contingency planning supports an operational plan.

This is to ensure that contingency planning protects resources and minimises customer inconvenience in the event of an unforeseen event. Develop a contingency plan which you can include in your operational plan in case of an emergency to minimise customer inconvenience. You can use the template below or develop your own. (Guide: Long)

CONTINGENCY PLAN
Company overview:	Sibling Rufus and Emma Belcastran have both trained and worked in the hospitality industry over the years. They decided to pool their skills, knowledge and passion for quality to open Coffeeville in 2009 Since then, the Belcastran have been providing quality products to the busy city population. The family-oriented siblings understand the importance of healthy communities and they endeavour to run a business that values and supports communities on a local and global scale. They also aims to provide healthy choices . Where possible, Coffeeville not only sources organic ingredients and products, also provides vegetarian and gluten-free options.
Objectives:	Minimise business interruption
Risk Description	Likelihood	Consequence	Priority	Preventative Action	Responsibility
Poor product quality	Unlikely	Moderate	2	Check supplier quality every day Waiter or manager need to check constantly before serve to customer and if something wrong , should remake product or ask check to the manager or kitchen	Rufus
Coffee Machine breaks down	Possible	Severe	1	Maintenance as required and recommended by specialist we can serve drip coffee, iced coffee etc that can possible make with out machine, it should be comprementally or discount.	Rufus
Staff unavailable for shift	Rare	Moderate	3	Have a list of staff contact details the are available for each shift. If someone unavailable to work suddenly, Reduce the service of the day or should limit number of customer. Should Train some other position staff to help other positions just in case someone can not work.	Emma
Negative online review	Possible	Moderate	3	Maintain high standard of service and product, regularly review social mediasites. If we get some Negative review reply and explain what was happened or reasons , to prevent to not show only bad review to other customers when they see online review .	Emma
Product not available	Unlikely	Moderate	2	Check with suppliers, carry additional stock of popular items. When not available , just put sold or not available on the menue to prevent other problem before customer order.	Rufus
Work place	Possible	Major	2	Regular safety training of staff, strong WHS procedures Safe ty check list and meeting constantly To prevent safety problem.	Rufus

G) Prepare a budget for resource requirement.

Ensure you have met with specialist to seek specialist advice regarding resources and costing. Prepare a budget to the owners on resources, specialist advice regarding resources and gain approval. Use your entire resource list to budget for the first 6 months of operation. Ensure to include costs for Leasing/renting the location (Financial Resource), Staff costs (Human resource) and all other equipment (Physical Resources) required.

Item	Low	High	estimated
rent	$1000	$2500	1500 x 24 weeks $36,000
HUMAN RESOURCE Manager Chef Kitchen hand Waiter barista	WEEKLY RATE 1000 1000 600 600 700	WEEKLY RATE 1300 1300 1000 1000 1200	6 MONTHS 31,200 31,200 24,000 24,000 28,800
FINANCIAL	30,000	60,000	45,000
Coffee machine	200	400	300 x 6 months = 1,800
Oven	200	400	300 x 6 = 1,800
fridge	200	400	300 x 6 =1,800
CONTRACTORS Plumbers Electrician cleaners	800 1000 1,200	1,200 1,500 1,500	1,200 x 6 months =7,200 1,500 x 6 = 9,000 1,500 x 6 =9,000
TOTAL	42,900	71,200	249,600