Ilp306 seniors assignment

MODULE ASSIGNMENT COVERSHEET MODULE ILP 306
CODE

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

60
Name First marker: John Colvin
Second 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 Knowledge & Understanding Analysis/Synthesis Reading and Research Writing Style
Range
Weighting 35 35 20 10
85%+ As for 76-84% but presented in such a way that it cannot be faulted
76-84% Excellent subject knowledge and understanding Evidence of ability to make a sustained argument Evidence of the ability to range widely and Lively and articulate writing that shows
of key issues and debates. on the basis of evidence in original terms. eclectically for information. evidence of knowledge, enthusiasm for
Excellent application of models employed Evidence of an ability to synthesise information in Very effective deployment of reading in the material and strong control of the
a way that shows a full grasp of the material. supporting arguments. arguments being deployed.
Strong evidence of appropriate critical evaluation
of a wide range of evidence incorporated into
excellent plan
70–75% Evidence of a wide knowledge of relevant Strong evidence of ability to make a sustained Evidence of appropriate selection of material Use of English that makes the meaning
theory applied in a critical and thoughtful way. argument on the basis of appropriate evidence. from an appropriate range of sources. clear to the marker and shows control of
Evidence of full and precise knowledge of the Strong evidence of ability to critically evaluate Reading used critically and deployed the arguments being deployed.
possibilities and limitations of the models being evidence and synthesise appropriate effectively in supporting arguments
employed. generalisations from it to produce a focussed
marketing plan with few errors
60–69% Good subject knowledge and understanding of Evidence of ability to make a sustained argument Appropriate reading with effective use of a Clear and correct usage with very few
key issues and debates. on the basis of appropriate evidence. wide range of relevant sources. imprecise statements.
Evidence of a full understanding of the Evidence of ability to critically evaluate evidence Effective deployment of reading in supporting
possibilities and limitations of the models and synthesise appropriate generalisations from it arguments.
employed. to produce a good marketing plan in most areas.
Evidence of critical understanding of the
application of relevant theoretical material to the
chosen organisation.
50–59% Sound subject knowledge. Evidence of ability to make an argument on the Evidence of selection of appropriate material Correct English usage with few
Understanding, but not evidently critical, of key basis of evidence appropriate to the theoretical from an appropriate range of sources, with imprecise statements.
issues issues being discussed. coherent structure and clear argument.
Evidence of an understanding and application Evidence of the ability to collate information, weigh Satisfactory deployment of evidence to
of the models used and how they are relevant to up evidence and construct general conclusion support argument.
the topics in the assessment task. about the information expressed in a competent
well written plan.

40–49% Evidence of some knowledge of appropriate Some evidence of analysis but criteria used not Evidence of selection of mainly relevant Correct English usage, but with some
theory, but lacking depth. clear. material from a range of sources, but lack of precision.
Limited understanding of key issues and Evidence of preparedness to state a position but evidence not deployed accurately.
debates. Lack of application to chosen with limited use of argument and appropriate Narrow selection of material. Use of English in such a way that the
organisation. evidence expressed in a marketing plan with minor Limited evidence of research. marker cannot understand some of the
omissions and errors points made, thus limiting the mark by
the material that can be understood.
Mark Knowledge & Understanding Analysis/Synthesis Reading and Research Writing Style

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Range
30–39% Evidence of some relevant knowledge, but with Evidence of a general, but rudimentary, grasp of Scant or superficial reading. Some incorrect use of English.
serious omissions. the planning issue with only a limited ability to No evidence of research beyond directed Failure to use technical terminology
Little understanding of key issues and debates. sustain this response in a marketing plan with reading or lecture notes or WebCT. appropriately.
Some evidence of appropriate deployment of significant omissions and errors. Over-reliance on a single textbook source,
language and concepts from the topic under without analysis, criticism or interpretation. Failure to adhere to specified format for
consideration. assignment.
20–29% Evidence of some knowledge, reading and Superficial reading of inappropriate sources. Significantly flawed use of English with
material, but these ideas are marginal to Evidence that the assessment task has been Failure to use reading appropriately in little coherence or structure.
assessment task set. And not applied in any understood but that there is little development of support of argument.
real world sense. the plan and the conclusions drawn are erroneous
Inadequate understanding of subject with in light of the evidence presented.
significant errors and omissions.
1–19% The work contains significant misconceptions and basic errors and shows little familiarity with the
concepts and language expected of such a project Seriously flawed with no evidence of analysis or synthesis.

Tutor’s signature………………………………………Date…………………………

Second Marker (if appropriate): …………………….Date…………………………

Provisional Mark
Subject to approval
by the
Board of Examiners

Page 4 of 70

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 5
1.1 Rational for development of business 6
1.2 Product / services description 6-7
1.3 Identification of Market Niche 7
1.4 Mission Statement 7

2.0 Market environment
2.1 Environment Scan 8
2.2 SWOT Analysis 8-9
2.3 Marketing Objectives 9
2.4 Marketing Strategy 9
2.4.1 Marketing Mix strategy 9-12
2.4.2 Positioning statement 12
2.5 Tactics and programs 12
2.6 Marketing Budget 13

3.0 Management Plan
3.1 Business structure 13
3.2 Management structure, function and rationale 14
3.3 Personnel and remuneration policies 14
3.1.1 Recruitment policies 14
3.1.2 Employees training program 14-15
3.1.3 Employees incentive 15
3.4. Creditor & debtor policies with clear rationale 15

4.0 Operation Plan
4.1 Location 16
4.2 Suppliers 16
4.3 Equipment needed and Set-up costs 16
4.4 Standard Operational Procedures 16-17
4.4.1 Key point of services 17
4.4.2 Selling method and cash up procedure 17
4.4.3 Access to website 17
4.4.4 Reservation 17
4.4.5 Customer complaint 18
4.5 Quality Assurance Procedures 18-19

5.0 Financial Plan
5.1 Start up Costs 19
5.2 Cash flow forecast for one year 19
5.3 Profit and Loss account for one year 20
5.4 Break even analysis 20

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6.0 Contingency Plan / Business control
6.1 Creditor policies 20
6.2 Personal and personnel position 20-21
6.3 Marketing Controls 21

References 22-25

Appendix 26-65
Appendix A – Sample Menu 26-27
Appendix B – Target market 28
Appendix C – Population distribution by states and territories 29
Appendix D – Population age group 30
Appendix E – Environment scan 31-33
Appendix F – SWOT analysis 34-35
Appendix G – Design of customers reward card 36
Appendix H – Marketing strategy 37-38
Appendix I – Physical environment of café 39-40
Appendix J – Marketing tactics 41-42
Appendix K – Marketing tactics schedule 43-44
Appendix L – design of flyer 45
Appendix M – Management structure 46
Appendix N – Recruitment policies 47-50
Appendix O – Training of greeting customers 51
Appendix P – Salaries and reward for staff 52
Appendix Q – Map of BayAvenue 53
Appendix R – Suppliers 54
Appendix S – Equipment needs and set up costs 55-56
Appendix T – Key point of services 57
Appendix U – Reservation format 58
Appendix V – Cash flow assumption 59
Appendix W – Revenue assumption 60-63
Appendix X – Cash flow forecast 64
Appendix 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

Page 20 of 70

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].

MIER Quarterly Surveys (2008) Malaysian Economic Outlook: Executive

Summary [online], Available from:

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

2008]

MyGovernment (2008) [online], Available from: <http://www.gov.my >

[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].

Wikipedia (2008) List of countries by life expectancy [online], Available from: <

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

Urban
Area Pop. Bumiputr Chines Indian
State Population pop(%)
(km2) density a (%) e (%) (%)

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
12445
Sarawak 2,071,506 17 48.1 72.9 26.7 0.2
0
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
1,379,310 243 5676 100.0 43.6 43.5 11.4
Lumpur
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
Terenggan
898,825 12955 69 48.7 96.8 2.8 0.2
u
Negeri
859,924 6644 129 53.4 57.9 25.6 16.0
Sembilan

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
45,000 148 304 100.0 94.8 1.8 2.7
Putrajaya

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,

with elevated food prices lifting inflation to

Page 32 of 70

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

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

Page 33 of 70

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 • I am not professional for make

• ability to work independently or tea

as an effective team member • I don’t like tight with long

• I have a baking and cooking business hours

skill • I am not a risk taker

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• I like to try new recipe • Poor communication in English

• I like to continually learn new

things

• I am committed to working fast

• Have good organize skill, can

delegate tasks and

responsibilities to others

• I prefer work on things until

they're done or solved
Opportunities Threat
• Social economic changes • Economy is under threat of a

• Government encourages recession

entrepreneurs set up a • Competitors from other

company establishments, e.g. Starbuck,

• Unemployment rate is high other SPA center is a

• Consumers expenditure on substitute place for people to

food are keeping increasing relax

• Today’s people are more • Future bargaining power of

concern healthy supplier

Page 35 of 70

Appendix G

Design of customer reward card

Front Back

Page 36 of 70

A

Reward card
B

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

Appendix H

Marketing strategy

SPA café differentiation approach as show in following:

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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.

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• 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 Flyer Newspaper Sales website
promotion
Month
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

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

grand opening.

Page 44 of 70

Appendix L

Design of flyer

Page 45 of 70

Appendix M

Management structure

Page 46 of 70

Chew Wan Chin
Proprietor 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

Page 48 of 70

make your own dough for such
products.
• Passion for continuous learning
and self development.
• Good Attitude and responsible
person
• Applicants should be Malaysian
citizens.
Alimentation consultant • Candidate must possess at least
an Advanced/Higher/Graduate
Diploma, 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.

Page 49 of 70

• Proficient in English, Bahasa
Malaysia and Chinese Dialects.
• This is a full time position and
applicant must be willing to work
long hours and split shift if
necessary.
• Discipline and self motivator
• Able to work non- traditional
hours including weekends,
school holidays and public
holidays.

2. Channels used to attract 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

Page 50 of 70

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

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

Page 51 of 70

Training of greeting customers

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

Page 52 of 70

Salaries and reward for staff

Below is a list of the staff and their rewards:

Baker Alimentation Waiter / waitress
consultant (per person)
Basic salary RM 1800 RM1800 RM 1100
EPF (Employees 12% @ basic 12% @ basic 12% @ basic
Provident Fund) salary = RM 216 salary = RM 216 salary = RM132
contribution
Socso (Social Employer Employer Employer
Security contribution = RM contribution = RM contribution = RM
Organization) 30.65 30.65 18.35
Total RM 2046.65 RM 2046.65 RM 1250.35 *2 =
RM2500.70
Extra
Overtime RM 1800/26 days/ RM 1800/26 days/ RM 1100/26 days/
allowance 8 hours* 1.5% = 8 hours* 1.5% = 8 hours* 1.5% =
RM 12.9/hour RM 12.9/hour RM 7.93/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 @ 2 RM 869 RM 1738
LG
Computer POS 1 RM 2249 RM 2249
cash register
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 1 RM 199 RM 199
@Takada
Digital thermo pot 1 RM 149 RM 149
@Panasonic
Dessert spoon 5 set RM 4.90 RM 24.90
(6pcs/set)
Dessert fork 5 set RM 4.90 RM 24.90
(6pcs/set)
Dessert plates 5 set RM 10.90 RM 54.50
(6pcs/set)
Dessert cup 20 RM 3.85 RM 77
Wine glass 20 RM 9.90 RM 198
Blender 1 RM 70.90 RM 70.90
Round glass 10 RM 4.90 RM 49.90
container
Ovenware RM 150
Kitchen utensil RM 100
Total RM 2658.10

Page 56 of 70

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

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

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• 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

Reservation format

Employees should take the following information when taking the reservation:

• Name

• Date

• Time

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• 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

Cash flow assumption

Capital RM 100000 (RM50000 – director + RM 50000 – loan)
Revenue see appendix W
Salaries RM 5800 / month
Employees benefit RM 794 / month
Drawing RM 2200 / month
Rent RM 3200 / month
Telephone RM 100 / month
Travel RM 180 /month
Insurance RM 100 / month
Marketing RM 1500 (flyer), RM 400 (reward card printed)

Page 59 of 70

Interest on loan RM 166 / month – 4% charges
Loan repayment RM 1041 / month – loan 4 year (RM 50000/ 48)
Utilities (water, light) According as monthly business situation
Cash 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
pre launch, sale promotion, news
May single flovor tea /pot 480 10 4800 release
mix flavor tea /pot 550 15 8250
cake,cookies /silce/ pack 280 5.5 1540
ice cream (scoope), jelly (set) 280 2 560
artistic flower tea (cup) 110 9.9 1089
total 16239

June single flovor tea /pot 550 10 5500 Distribute flyer
cake,cookies /slice/ pack 260 5.5 1430
total 17278

July single flovor tea /pot 610 10 6100 moon cakefestival
mooncake /set 80 32 2560
total 22095

August single flovor tea /pot 630 10 6300 Moon cake festival

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mooncake/set 150 32 4800
total 25597

Sept single flovor tea /pot 480 10 4800 Distributr flyer
total 17902

Oct single flovor tea /pot 430 10 4300

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total 16785

Nov single flovor tea /pot 480 10 4800 News release
total 17407

Dec single flovor tea /pot 530 10 5300 Christmas, distribute flyer
total 20662

New
Jan single flovor tea /pot 480 10 4800 Year
total 19060

Feb single flovor tea /pot 430 10 4300 Valentine Day
total 19562

March single flovor tea /pot 330 10 3300

Page 63 of 70

total 16954

April single flovor tea /pot 480 10 4800
total 22452

Page 64 of 70

Appendix X

Cash flow forecast

Month: Pre- 1 2 3 4 5 6 7 8 9 10 11 12 Totals
Start
Receipts
Cash sales 16,239 17,278 22,095 25,597 17,902 16,785 17,407 20,662 19,060 19,562 16,954 22,452 231,993.00
Collections from credit sales 0
New equity inflow 50,000 50,000
Loans received 50,000 50,000
Other 0
Total Receipts 100,000 16,239 17,278 22,095 25,597 17,902 16,785 17,407 20,662 19,060 19,562 16,954 22,452 331,993.00

Payments
Cash purchases 5,000 5,200 5,800 6,000 5,200 5,000 5,200 5,500 5,500 5,500 5,000 5,800 64,700.00
Salaries and wages 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 69,600
Employee benefits 794 794 794 794 794 794 794 794 794 794 794 794 9,528
Rent 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 41,600
Utilities 300 300 350 550 550 350 420 400 450 500 400 300 450 5,320
Insurance 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Travel 180 180 180 180 180 180 180 180 180 180 180 180 180 2,340
Telephone 100 100 100 100 100 100 100 100 100 100 100 100 100 1,300
Marketing/promotion 2,080 1,500 1,500 400 1,500 6,980
Bank charges 166 166 166 166 166 166 166 166 166 166 166 166 1,992
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 19,581 19,531 21,081 19,481 18,881 19,831 284,005.10
Cashflow Surplus/Deficit (-) 53,587 (2,642) (1,853) 664 5,466 (1,229) (3,716) (2,174) 1,131 (2,021) 81 (1,927) 2,621 47,987.90
Opening Cash Balance 0 53,587 50,945 49,092 49,756 55,222 53,993 50,277 48,103 49,234 47,213 47,294 45,367
Closing Cash Balance 53,587 50,945 49,092 49,756 55,222 53,993 50,277 48,103 49,234 47,213 47,294 45,367 47,988

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

Page 65 of 70

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 69600
Employee benefits 9528
Rent 41600
Utilities (Heat & Light etc.) 5320
Insurance 1200
Travel 2340
Telephone 1320
Marketing/promotion 6980
Bank charges 1992
Depreciation 7668
Owner's drawing 26400
Total Operating Expenses 173948

Net Profit (6655)

Profit (Loss) Before Taxes 0

Net Income (Loss) (6655)

Page 66 of 70

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