STAR Coffee Shop Business Plan
Added on 2020-12-24
14 Pages3374 Words344 Views
|
|
|
Individual Project
Table of Contents1. Executive Summary.....................................................................................................................12. Economic and Industry analysis..................................................................................................1Overview of Malaysia Market Regarding Coffee Shop (Coffee shop in Malaysia)..............13. Business idea STAR Coffee Shop...............................................................................................14. Risk analysis................................................................................................................................5(a) Risk analysis(CAPM):......................................................................................................5(b)Determine cost of capital...................................................................................................6(c)Valuation of project...........................................................................................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
1. Executive SummaryCoffee shop is fastest leading business now a day in every country. Business planregarding the coffee shop. A plan to open a business regarding coffee shop for that analysis ofeconomic and industry is done. In that collected knowledge about Malaysia market and also theirstock market, interest rates, currencies and commodities. How these elements affect the businessof coffee shop. Descriptions and SWOT analysis of coffee shop businesses. Five years offinancial plans showing assumption of income statements of five years and cash flow statementsof five years (Baxter and et.al, 2016). Also discussed about sources of finance used for thisbusiness. Evaluation of the risk and compare it with public companies by using CAPM toidentify the needed returns on equity. Cost of capital is determined that effects on rates of returnsand discounting cash flows are used for valuations. Net present value, interest rate of returns,payback periods and profitability. Recommendations regarding accept or to reject the project orbusiness plan.2. Economic and Industry analysisOverview of Malaysia Market Regarding Coffee Shop (Coffee shop in Malaysia)In Malaysia there are both morning and night markets. Night markets timings are from 6pm to 10:30 pm. In this market people can purchase all things: initiating from grocery store tolocal food and also from households to clothing products. Coffee shop market in Malaysia is asmall sized market. It's market value depends on expenses considering sales tax, volume ofmarket is based on number of outlets. In Malaysia, market size for coffee shop is provided inMYR. Forecasting market is facilitated for at least 5 years. Also consider the exposure of socioeconomic information for Malaysia that includes gross domestic product, population, consumerprice index and exchange rates (Manuti and et. al, 2015). Mostly teenager after the age of 18starts to drink coffee. In Malaysia, stock market is 1661.96, currencies are 4.18, interest rate is3.25% (Malaysia Interest Rate, 2018). All these elements affect new business of coffee shop, itprovides financial resources and so on. Need to Exchange the currencies and high interestshould be paid. And also need to import commodities from other places. 3. Business idea STAR Coffee ShopPeople usually considered good coffee for themselves. Coffee shop is a fastest growingbusiness. Coffee is a thing that people love and depend on and in Malaysia because this place1
always have pleasant atmosphere. It is a most normally traded commodity in all over world. Ithas been seen that when coffee prices are high, people do not reduce consumption of coffee. InMalaysia as many coffee shop is growing rapidly so it is plan to start a coffee shop.SWOT analysisSwot analysis is a model that is utilized to measure a competitive position of company byascertaining their strength, weakness, opportunities and threats (brett and et. al., 2014). To runcoffee shop business in small scale like star buck so a SWOT analysis is done to assure that thatwhat is required to operate a coffee shop. Strength: STAR coffee shop serves different types of standard quality coffee at low price.Problems and issues related to service or product can be resolved quickly.Weakness:The identified weaknesses is that business is initiating at a small scale; only limitedoutlets as having limited space for expansion. If it is required to raise. for example:that in current scenario, people are more tend towards that herbal and organicproducts and coffee is considered as unhealthyOpportunities: The reason for operating coffee shop in Malaysia as it best has pleasant atmosphere sopeople use to drink coffee more and have unlimited opportunities to sell various types of coffees.Don't need to attract customers just required to serve standard quality coffee at low price andfacilitates best services for customers. And also can operate this business 24*7 as in Malaysiathere are trends of both day and night markets.Threats:The threats that are going to cause the coffee shop business is the policy of Malaysiamarket and also existing competitors whose coffee shop is famous by its top brands name. Financials for 5 yearsIncome statementsIncome statements is the statements of finance that is applied to assess a performance ofbusiness and position of finances. This statements summarises the income and expendituresproduced by businesses in the specific periods of reporting (Darcy and et.al., 2014). It is2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents