Operation Management

This document provides an introduction to operation management, including objectives, mission, and keys to success. It also discusses the projections of the company, ownership, start-up requirements, and location and facilities. The document further covers product description, sourcing, sales programs, strategic implementation, competitive edge, marketing strategy, pricing strategy, brand challenges, sales strategy, sales forecast, strategic alliances, and milestones.

Running Head: OPERATION MANAGEMENT
Operation Management
Student’s Name
University Name
Author’s Note

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Table of Contents
1. Introduction..................................................................................................................................3
1.1 Objectives...............................................................................................................................3
1.2 Mission...................................................................................................................................3
1.3 What are the keys to success?................................................................................................3
2. Projections of the Company.........................................................................................................4
2.1 Ownership of the Company...................................................................................................4
2.2 Summary of the Start Up.......................................................................................................4
2.3 Start Up requirements............................................................................................................5
2.3.1 Start Up Expenses...........................................................................................................5
2.4 Total Start Up Expenses.........................................................................................................6
2.4.1 Start Up Assets................................................................................................................6
2.5 Location and Facilities...........................................................................................................6
3. Products.......................................................................................................................................8
3.1 Product description................................................................................................................8
3.3 Sourcing.................................................................................................................................8
3.4 Sales Programs.......................................................................................................................9
3.4.1 Grand Opening................................................................................................................9
3.4.2 Point of Purchase.............................................................................................................9

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3.4.3 Direct Mail Piece.............................................................................................................9
4. Strategic Implementation.............................................................................................................9
4.1 Competitive Edge...................................................................................................................9
4.2 Marketing Strategy...............................................................................................................10
4.3 Pricing Strategy....................................................................................................................10
4.4 Brand Challenges.................................................................................................................10
4.5 Sales Strategy.......................................................................................................................11
4.6 sales Forecast.......................................................................................................................11
4.7 Strategic Alliances...............................................................................................................12
4.8 Milestones............................................................................................................................12
4.8.1 Milestones and action Plan............................................................................................13
Reference List and Bibliography...................................................................................................15

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1. Introduction
1.1 Objectives
The main objective of this Business Development plan is to establish the presence of a
successful new fast food outlet and thereby gain an entry in to the market share of the fast food
industry of Singapore.
The new outlet of the Sydney based emerging Asian and American foods company is to
establish Fresin Fries as one of the destination spot for the mall goers of Singapore. The
company wants to starts the operations of the first outland store of the Fresin Fries in Singapore
at the advent of their fourth year in to the business. After opening the first stall in the super mall
of Singapore, the company is aiming for a sustainable target of selling franchises of their stores
in the surrounding metropolis like Jakarta, Bangkok, Manila as well as Kuala Lumpur.
1.2 Mission
The main goal of this project is to open one of the most flourishing outlets of fast food in
Singapore. This outlet is to be projected by the company as a market tester. That is why this
outlet of Fresin Fries is to be located inside the central mall of Singapore. The main aim of the
company after the establishment of the store would be aim towards becoming one of the premier
fast food brands in the local market. The customers visiting the outlets of Fresin Fries are
supposed to enjoy a total experience when they visit this outlet. The plan is to sell merchandise
like prepackaged sauces, t shirts, potato cutters as well as other ancillary sales item which would
be outside the scope of target sales.
1.3 What are the keys to success?

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In order to gain success in the new business, the company needs to:
 Creation of an unique, innovative as well as entertaining menu which will be
differentiating the company from the rest of the competitors
 Controlling costs every time and in all the aspects, thereby implementing a significantly
conservative approach for the growth policy. As stated by the CEO of the business,
although there is larger than allocated fund for the opening of the outlet, they wishes to
be on the safe side while opening an outlet in a new business atmosphere.
 Sell highest quality products as well as introducing new product lines at regular intervals
ranging from food to the store merchandises.
 Attempting towards 100% customer satisfaction and providing services to them that can
help them to gain competitive advantage over the competitors.
 Promote the brand and brand Image as these two are the main drivers in the context of
marketing communications in Singapore.
 Get access to the high traffic shopping malls for opening the site.
2. Projections of the Company
2.1 Ownership of the Company
Fresin Fries is a private company that is registered as a Limited Organization. There is
25% ownership of Guy Fry, 25% with Carl Cone, 25% with Harry Hip and that last 25% with
Sam Sauce.
2.2 Summary of the Start Up

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The retail outlet is supposed to be located in one of the largest malls of the country. The
first preference for the outlet is Space A, for the ultimate purpose of reaching the maximum
possible traffic. The owner investments will be used for financing the start up needs.
2.3 Start Up requirements
2.3.1 Start Up Expenses
Kitchen as well as other fixtures $22,600
Furniture and other Interior $17,100
Legal Requirements $2,700
Rental Expenses $14,900
Packaging as well as Stationary Costs $9,000
Contingencies $4,100
2.4 Total Start Up Expenses

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2.4.1 Start Up Assets
Cash Needed $50,000 (Singaporean Dollars)
Extravagant Current Assets $0
Long Term Assets $0
The valuation of the total requirements is $117,400
2.5 Location and Facilities
The located facility within the shopping mall is supposed to be 50 to 70 square meters
and there will be a standard seating facility for 20 guests and at the peak times it will go up to 25
guests. There will be originality in the merchandise display at the location as well as other brand
development attributes. The outlet will be equipped with modern furniture and the larger aim
will be to ensure cleanliness as well as open feeling which the customers will be able to enjoy.
The space selection has been done based on the following four criteria. These are:

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Figure 1: Space selection Criteria
(Source: Fresinfries.co.nf, 2019)
The company has set this goal as they want the Word of mouth to be the finest and most
availed form of marketing, so that the customers after visiting the outlet cannot wait to speak of
the extravaganza witnessed at the outlet. There is direct competition of Fresin Fries with that of
several other fast food joints inside the selected shopping malls, including Tori-Q (specialists of
local dish Yakitori), Brad Talk, Pizza Walker as well as Bee Che Hiang (maker of Chinese
sausages).

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3. Products
In terms of product development, the greater emphasis is on selling items that falls in the
product category of fries. The outlet will not be typically American as they will not be selling
alcoholic drinks. The company culture needs to be promoted diligently and that is why they
refrain from selling alcoholic drinks. On the contrary, they sell Italian soda as a compliment with
their fries.
For promotion of their lifestyle trend, they will be offering merchandises with their logo as well
as colors. Merchandises sold by them include hats to t shirts to potato peelers to their home made
sauces.
3.1 Product description
The outlet will be selling the fries with their unique sauce dips. The main products that
will be sold from the start are Italian sodas, Belgian fries as well as customized merchandises.
The main four categories of dips that will be available for the fries are Thai Chili ketchup, Lava
Cheese, Creamy Wasabi Mayo and Korean BBQ (De Jong et al. 2017).
3.2 Sales Literature
The company will be using advertising as well as sales programs for getting the word of
mouth to their customers. At first 2000 colored brochures will be distributed in the destination
shopping mall and surrounding in store facilities like cinemas, eateries and others.
They are also casting half page reviews in the Lifestyle magazines of Singapore.
3.3 Sourcing

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Fresh potatoes will be delivered weekly by the distributors of the company directly from
America. The Fresin Fries have a contract with Company Q for exclusive manufacturing of their
home made sauces. Again, the customized merchandises of the company are produced as well as
printed by their partner agency in China.
3.4 Sales Programs
The programs that will follow the opening of the destination location is as follows:
3.4.1 Grand Opening
Every new outlet will be having an outdoor signage as early as possible after the opening
of the stores. The company wants the signage to be supported by banners before the operations.
3.4.2 Point of Purchase
Tray Toppers will be used by the store for explaining the concept as well as philosophy
of the brand. They will be also widely promoting gift certificates, job openings and would also
declare the future franchising opportunities since 1week of opening of the store.
3.4.3 Direct Mail Piece
Stand alone mail pieces will be produced by the company, presented in full color. All essential
details of the Fresin Fries, along with their menu, prices as well as locator map will be enclosed
in the mail.
4. Strategic Implementation
4.1 Competitive Edge

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The unique dipping sauce blends local taste as well as international flavor in to the recipe of their
secret sauce. The enthusiastic as well as friendly staff also incorporates customer values. The
company also has signature merchandises that supports in the brand building of the organization.
Besides, unlike the other brands that sell fries, there are 100% fresh potatoes, unlike the frozen
and canned potatoes used by the others. Lastly, innovative packaging will help in placing us at
the same zone with the major foreign America fast food sellers.
4.2 Marketing Strategy
Local store marketing is the most essential method that is to be used here, followed by
advertisement printing. The company is providing a fun as well as energetic environment with
exceptional quality with a pocket friendly price.
4.3 Pricing Strategy
There will be generic price positioning strategy implemented. This implies that $4.00 is
the average spending for the customers over a snack or light meal. Leveraging the volume of
fries, Italian Soda, and signature style sauces to be sold, they are serving the majority of
Singaporeans.
4.4 Brand Challenges
There should be a distinct identity of the brand so that they can stand apart from the other
western style competitors of the company in Singapore. In this context, it requires mention that
the logo of the company is fresh, playful as well as energetic. The names of the products are also
inclined towards the target segment, including items like Frenzy Fresin, Uber Fresin and others
alike which are quite easy to remember.

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4.5 Sales Strategy
The sales strategy is to open new stores in Singapore modeling the first store concerned
here. Hence, this sales strategy is bent at this market tester outlet. The company will be
attempting to open local customer bases over the first 6 months of their operations in Singapore.
The annual sales goal of every store is almost $104,250 in terms of annual sales.
4.6 sales Forecast
It is anticipated that in the months of November and December, there will be peak sales because
of the holiday seasons. In November, there will be Ramada for the Malaysians as well as
Indonesians, which implies vacation time. Since there will be 1.5 million Indonesians who
travels in Singapore every year for shopping as well as dining, they will be able to create huge
word of mouth publicity among the foreign customers also.
Image 2: Projected Yearly sales for the first year of Operations

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(Source: developed by the researcher)
Image 3: Yearly sales of the company
(Source: Fresinfries.co.nf, 2019)
4.7 Strategic Alliances
The company hopes that the long sustained relationship with the partner vendors will help in
their business. Company Q has been in to a business relationship with the Fresin Fries since 4
years.
4.8 Milestones
In the initial stage of the set up, the 4 directors will be conducting planning as well as
implementation in developing the brand as well as construction of their first outlet. The time
required for the development and construction of the facility is 9 months along with the revision

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as well as refinement process which would be taking a time period of approximately 4 more
months before they can finally open the shop in 2020.
4.8.1 Milestones and action Plan
Milestone Starting Time Ending Time Budgetary
Requirements
Manager Concerned
department
Presentation
materials for all
concerned
stakeholders
12-01-2019 12-03-2019 TBD Carl Cone Business
Development
Taking a follow
up with
stakeholders
21-01-2019 22-03-2019 $100 Sam. S. Business
Development
Department
Following up 21-01-2019 08-09-2019 $50 Sam Business

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with
Developers
Development
Executives
Printing the
materials
13-02-2019 10-04-2019 $8000 Guy, F. Marketing
department
Development
of Marketing
Communicatio
n Plan
21-02-2019 23-06-2019 TBD Sam, S. Marketing
higher
department
Constructions 22-05-2019 03-12-2019 TBD Harry Department
for Business
Development
In store
materials for
signage, POP
23-05-2019 11-10-2019 TBD Guy, F. Core
Marketing
team
Grand Opening
materials
02-06-2019 13-10-2019 TBD Guy, F. Core
Marketing
team
Staff Hiring 14-07-2019 12-08-2019 $900 Harry, H. HRM team

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Reference List and Bibliography
De Jong, B., Worsley, A., Wang, W. C., Sarmugam, R., Pham, Q., Februhartanty, J., & Ridley,
S. (2017). Personal values, marketing attitudes and nutrition trust are associated with patronage
of convenience food outlets in the Asia-Pacific region: a cross-sectional study. Journal of Health,
Population and Nutrition, 36(1), 6.
Fresinfries.co.nf, (2019). About the Company. Retrieved on 22nd April 2019. Retrieved from
http://fresinfries.co.nf/?p=9
Henderson, J. C. (2016). Muslim travellers, tourism industry responses and the case of Japan.
Tourism Recreation Research, 41(3), 339-347.
Henderson, J. C. (2017). Street food, hawkers and the Michelin Guide in Singapore. British Food
Journal, 119(4), 790-802.
Namin, A. (2017). Revisiting customers' perception of service quality in fast food restaurants.
Journal of Retailing and Consumer Services, 34, 70-81.
Sun, J., Zhou, W., Huang, D., Fuh, J. Y., & Hong, G. S. (2015). An overview of 3D printing
technologies for food fabrication. Food and bioprocess technology, 8(8), 1605-1615.

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Appendix 1: Sales Forecast