BSBPMG637 Engage in Collaborative Alliances - Task 2 Written Report

This assignment is a written report for the BSBPMG637 unit, focusing on engaging in collaborative alliances. The student, acting as a project manager for a cafe business, aims to increase the customer base through partnerships. The report begins by presenting a case study of Café Paradiso and its business opportunities. It then details the identification and evaluation of collaborative alliance opportunities, creating a partnership registry for ten businesses. The student selects a marketing agency as the primary candidate and develops a collaborative agreement, including details on the approach, formal agreement, and collaboration plans, adhering to organizational policies and relevant legal requirements. The agreement focuses on improving the cafe's social media presence by addressing current weaknesses such as inconsistent promotional campaigns, use of photo marketing, and analytics to demonstrate effective social media marketing. The assignment emphasizes the importance of policies and procedures in ensuring compliance and streamlining operations within the partnership.

BSBPMG637 Engage in collaborative alliances
Task 2 – Written Report
Task summary
This assessment is to be completed using the case study provided.
Required
 Access to textbooks/other learning materials
 Access to Canvas
 Computer with Microsoft Office and internet access
Timing
 Your assessor will advise you of the due date of this assessment via Canvas.
Submit
 This completed workbook.
Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily
address all the assessment criteria. If part of this task is not satisfactorily completed, you will be asked
to complete further assessment to demonstrate competence.
Re-submission opportunities
You will be provided feedback on your performance by the Assessor. The feedback will indicate if you
have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory
performance. Re-assessment attempt(s) will be arranged at a later time and date.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt
with unfairly or have other appropriate grounds for an appeal.
You are encouraged to consult with the assessor prior to attempting this task if you do not understand
any part of this task or if you have any learning issues or needs that may hinder you when attempting
any part of the assessment.
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Assessment Cover Sheet
Candidate name:
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Candidate
declaration:
I declare that:
 I have read and understood all the information provided in relation to
the assessment requirements to complete this unit, the instructions
and the purpose and processes of undertaking this assessment task
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been used, I have appropriately referenced or acknowledged them
 I understand that plagiarism is a serious offence that may lead to
disciplinary action.
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Task 2 –Written Report
You are currently the project manager and you would like to develop a partnership or alliance with an
existing company or business to increase your own customer base. This can be done through a number
or ways from marketing, sharing adverting costs, sharing the costs of a project or event. You may
choose from one of the following choices:
1. Construction Company
2. Social Media Company
3. Fashion Label
4. Restaurant / Café
5. BYO
Brendan and Margaret Elliott have entered into negotiations to purchase a café business, called Café
Paradiso, because of its great location in the Mountain Glen Shopping Centre with the highest number
of passing shoppers which is supported by a large and growing local population. There are a limited
number of cafés within the centre and with both Brendan’s and Margaret’s experience with having
successfully operated and owned a number of cafes in Australia and overseas they will be able to
increase their market share from 35% to 40% in 12 months.
The competitive advantages of the business are:
Location
Quality of food and service
Knowledge and experience of the industry
Available financial resources
Product/Service Offering
The main activity of the company is the operation of the Café Paradiso. Business activities include
purchasing, storing, preparing, selling and serving our products to our valued customers. We expect to
serve over 6,000 customers (‘dine in’ and ‘take away’) per month.
The Café is open from 8:00am to 5:00pm Monday to Saturday and from 8:00am until midday on
Sunday. The café comfortably seats 36 persons.
The mission of the business is to satisfy customers’ needs and wants for high quality coffee, delicious
nutritious meals and excellent service. Our main point of differentiation from other cafes and coffee
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shops in the Centre is that one of the business owners is an internationally trained chef who will be
able to produce fresh, light and healthy meals each day as well as develop new menu items to meet
the changing needs and tastes of people who care about what they eat. The high quality coffee will
target staff and shoppers in the Shopping Centre who enjoy good coffee that simply offers good value
for money at highly competitive prices.
Once you have selected an area to focus in, you are to research one of the above categories, and then
develop a Collaboration Agreement in Part C to submit to the intended company. The partnership or
alliance can include one of the following categories:
a. Marketing
b. Advertising
c. Rewards Programs
d. Events
e. Sponsorship
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing Plan
The objectives of the company are to:
Maintain market share through the change of ownership then grow market share to 40%, and
Generate a before tax net margin of 20%.
The business will achieve these objectives by:
Retaining two key staff members of Café Paradiso to maintain continuity of customer relationships
during the changeover
Upgrading signage to be more visually appealing
Maintaining the existing price levels and controlling costs
Undertaking more aggressive marketing and promotion.
Management Team
Brendan and Margaret Elliott, owners of Seaview Pty Ltd are both experienced Café owners/managers
having successfully operated a number of cafes in Australia and overseas. Brendan is a qualified chef
and has previously worked for the Hilton and the Sofitel groups before owning his own café. Margaret
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has a degree in Business Management (Hospitality) and she too has worked for the Hilton group of
companies and for the Rydges group.
Brendan and Margaret will work full-time in the business, retain two key staff from the previous owner
to maintain the continuity of relationships with customers during the transition, and will employ an
additional four staff. Two of those staff will work on a part-time basis.
Financial Plan
Our projected performance is summarized below:
Turnover: Year 1 $536,650 Year 2 $580,000
Gross margin $378,690 (71%)
Net profit (before tax) of $109,869 in the first year, growing to $131,175 in the second year of
operation.
The business is cash flow positive from the first month of operation
Break-Even is estimated at a monthly sales level of $30,869
Return on Total Assets: 37.3%
Return on Equity: 51.2%
The purchase price of the business is $170,000. Total start-up cost has been calculated at $209,810 and
is to be funded by way of a $104,905 bank loan and equity injection of $104,905 from Brendan and
Margaret. It is proposed that the loan be paid back over a two year period from cash flow.
2.0 Business Opportunity
Business Opportunity
Purchase of an established cafe within the Mountain Glen Shopping Centre that is part of a large, well
developed master planned community which is still growing, incorporating a regional shopping centre,
residential, retail and commercial development.
The business is ideally located for a Café, being situated on the main mall with a high passing trade due
to its close proximity to two national supermarket chains and a number of well-known retail fashion
clothing chains. There are a limited number of cafes within the centre and Café Paradiso has the best
location, with the highest number of passing shoppers.
Café Parisdo’s primary customers are shoppers and staff within the Shopping Centre who take a break
from their shopping or work and enjoy fine coffee or other beverages as well as for people wanting a
light, quick and healthy meal that provide a good alternative to the fast food options. The success of
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the business is based on its excellent location, quality of management and staff, great ‘value for
money’ coffee and meals and superior service.
Vision and Mission
Vision - The Company’s vision is ‘to be the Café of preference for Mountain Glen Shopping Centre
customers’.
Mission - The mission of the business is to satisfy customers’ needs and wants for high quality coffee,
delicious nutritious meals and excellent service.
Goals and Objectives
Goal one: maintain continuity of customer relationships during the changeover by:
Retaining two key staff members of Café Paradiso
Maintaining the existing price levels
Goal two: maintain market share and sales through the change of ownership then grow market share
to 40% in 18 months. The strategies to achieve this goal are:
Increase the number of customers
Increase the average sales size
Increase repeat trade from customers
Undertaking more aggressive marketing and promotion
Goal three: generate a before tax net margin of 20% for the next two financial years by:
Eliminating high cost purchases
Improving cost control
Improving stock control
Part A - Identify opportunities for collaboration and develop collaborative alliances
Create a Partnership and alliance registry for 10 separate businesses that connect to your business
case study. In creating the registry make sure to:
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1. Identify and evaluate opportunities for collaborative alliances according to organisational and
program objectives
2. Identify and evaluate potential collaborators according to organisational policies
3. Initiate and develop relationships with potential collaborators according to organisational
policies and procedures
Please follow the template:
Partnership Register
Numb
er
Name Type of
Business
Products /
Services
Current
Marketing
Current
Advertising
Benefits Negatives
1 Megapho
ne
Marketin
g
Printing
Business
online
advertising
Google
Ads, lead
generation
, and email
marketing
integrated
communicati
ons
free
strategy
session
Unlimited
Access
2 Digital
Eagles
Marketin
g Agency
IT support Online
appointme
nts
Helped
hundreds
of small,
medium
and large
businesses
achieve
goals
Client
experience
and flexibility.
Protected
& Safe
Search
Millions of
Worldwide
Users
Lack
Industry
Knowledg
e
3 The Go-
To Guy
Online
retailers
social
media
manageme
nt services
Post
manageme
nt
Social
profiling
minimum
project size
of $1,000+
Lowers
the
expansio
n
4 Bared
Footwear
Local retail
outlets
men’s and
women’s
footwear
aims to
share a
love
Luxurious and
stunning
accessories
Protected
and stylish
set up
costs
5 Barney
Cools
Financial
institutatio
ns
crisp color
and a
casual vibe
freedom
and
rebellion,
manifeste
d
Business care-free
spirit
Lack of
knowledg
e
6 Australian
Defence
Industries
Holyday/
Travel
company
Industrials Aerospace
& defense
room and
bar
Business Weapons
manufactur
er
Low cost
resolutio
n
7 KFC Gift cards
company
Food Marketing
strategies
Business Provide all
type of
food with
reasonable
Fake
informati
on
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price
8 Barrio
Collective
Coffee,
Braddon,
ACT
Photograp
hy
Coffee brews and
selection
of sweet
tasty
pastries
The Best
Price.
Cheap
Prices. Full
Offer.
Hard to
measure
9 Wikipedia Not for
profit
organizatio
n
Online
Social
Media
Latest
News and
research
work
Information
about
anything
User driven
tool for
sharing
knowledge
Difficult
to
manage
quality
and
plagiaris
m
10 Cotton On Café bars Dressing
menswear,
kids wear
Latest
design
Business worldwide Hard to
measure
Part B - Establish collaborative agreements
Once you have completed the registry, select one business or company to focus on as the primary
candidate for your intended partnership or alliance.
Create a Collaborative Agreement and include the following details for your intended partnership or
alliance:
1. Collaborative approach with parties which adhere to organisational policies and relevant legal
requirements
2. Formal agreement to ensure continuation of envisaged value and to identify potential need for
changes and additions according to organisational policies and procedures
3. Collaboration plans for each agreement to support implementation
A startup's choice of business structure can have long-lasting effects on the way the business is run and
operates, including how it files taxes and whether it can hire employees.
Assessment Since is an industry leader within the space, Company is excited to team up and tackle the
challenge of improving their current social media standings. As you know, successful social media
marketing is the best way to get noticed. In my research, I discovered that current primary social
media strengths include: timely responding to comments, and creating clever content to engage with
the current follower base. The current weaknesses will work to improve are as follows: use of more
consistent promotional campaigns, use of photo marketing/info graphics, and using analytics to
demonstrate effective social media marketing.
Policies and procedures are an essential part of any organization. Together, policies and
procedures provide a roadmap for day-to-day operations. They ensure compliance with laws and
regulations, give guidance for decision-making, and streamline internal processes.
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However, policies and procedures will not do your organization any good if your employees don’t
follow them.
Employees don’t always like the idea of having to follow the rules. But policy implementation is not
just a matter of arbitrarily forcing employees to do things they don’t want to do.
Following policies and procedures is good for employees and your organization as a whole.
The importance of following policies and procedures
 As your organization’s leaders create and enforce policies, it’s important to make sure your
staff understands why following policies and procedures is critical.
 Here are just a few of the positive outcomes of following policies and procedures:
 Consistent processes and structures
 Policies and procedures keep operations from devolving into complete chaos.
 When everyone is following policies and procedures, your organization can run smoothly.
Management structures and teams operate as they’re meant to. And mistakes and hiccups in
processes can be quickly identified and addressed.
 When your staff is following policies and procedures, your organization will use time and
resources more efficiently. You’ll be able to grow and achieve your goals as an organization.
Company policies and procedures establish the rules of conduct within an organization, outlining the
responsibilities of both employees and employers. Company policies and procedures are in place to
protect the rights of workers as well as the business interests of employers. Depending on the needs of
the organization, various policies and procedures establish rules regarding employee conduct,
attendance, dress code, privacy and other areas related to the terms and conditions of employment.
Equal Opportunity Policies
Equal opportunity laws are rules that promote fair treatment in the workplace. Most organizations
implement equal opportunity policies – anti-discrimination and affirmative action policies, for example
– to encourage unprejudiced behavior within the workplace. These policies discourage inappropriate
behavior from employees, supervisors and independent contractors in regard to the race, gender,
sexual orientation or religious and cultural beliefs of another person within the organization.
Attendance and Time off Policies
Attendance policies set rules and guidelines surrounding employee adherence to work schedules.
Attendance policies define how employees may schedule time off or notify superiors of an absence or
late arrival. This policy also sets forth the consequences for failing to adhere to a schedule. For
example, employers may allow only a certain number of absences within a specified time frame. The
attendance policy discusses the disciplinary action employees face if they miss more days than the
company allows.
Substance Abuse Policies
Many companies have substance abuse policies that prohibit the use of drugs, alcohol and tobacco
products during work hours, on company property or during company functions. These policies often
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outline smoking procedures employees must follow if allowed to smoke on business premises.
Substance abuse policies also discuss the testing procedures for suspected drug and alcohol abuse.
Workplace Security Policies
Policies on security are in place to protect not only the people in an organization, but the physical and
intellectual property as well. Policies may cover entrance to a facility, such as the use of ID cards and
the procedures for signing in a guest. Equipment such as a company laptop or smart phone may need
to be signed out.
Computer security is a high priority for firms these days. Policies cover a variety of topics, such as the
frequency for changing passwords, reporting phishing attempts and log-on procedures. Use of
personal devices, such as a USB drive you bring from home, may also be restricted to prevent to
unintended spread of computer viruses and other malware.
I understand that the idea of a report is extremely broad, so our ingredient list isn’t going to be super
specific (think “flour” rather than “organic whole wheat flour”). Each time you create a report you’ll
need to take the unique situation into account and adjust this ingredient list accordingly.
1. Knowing Who Will Consume the Final Product
When I make pancakes for my kids, I know I can get away with using some whole wheat flour, as long
as at least half is good, old fashioned white flour.
My son likes bananas smashed up in his before they’re cooked; my daughter prefers blueberries. In
each case, I make slight adjustments to my recipe to accommodate the audience.
I could, of course, just make ultra-healthy, whole-wheat pancakes with no sugar, but none of the
message (or nutritional value) would get through to my target consumers.
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2. An Appetizing Executive Summary
For many report consumers at this level, an executive summary may prove more effective than even
the most well-formatted tables and graphs. Think of it as the amuse-bouche for your multi-course data
feast.
If you’re sending a report electronically, the body of an email is great place to include this bite-sized
version of what’s contained in the attachment.
3. NOT Everything in the Data Pantry
Good cooks know when to stop adding ingredients, and so do good report authors.
Combining every single tasty ingredient in your kitchen will produce an overwhelming mess of a dish.
Likewise, cramming each and every data point you’re tracking into a massive spreadsheet will result in
an unintelligible jumble.
4. Pristine Presentation
If you have two identical meals, one that has been lovingly placed on a beautiful dish, and one that has
been tossed haphazardly onto whatever plate was handy, which one do you think will look more
appetizing?
Once again, the same holds true for reports.
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But there’s no need to despair if you’re not a graphic designer. A few straightforward
adjustments (courtesy of DesignShack.net) can take your report spreadsheets from painful to pristine:
● Proper alignment: Choose left aligned text as your default. Center alignment creates a ragged edge
that’s harder for the eye to scan.
● Clear headers: Limit bolding to your headers to help them stand out as important components of the
document. You can also slightly increase their font size for added emphasis.
● Zebra stripes: If you have long data sets that run horizontally for more than a few columns, consider
filling every other row with a very light gray. Known as zebra striping, this helps a reader’s eyes follow
the data from one side of a spreadsheet to the other.
● Extra padding: Always err on the side of having cells that are too wide and too tall. Trying to reduce
scrolling or cut down on the number of pages that need to be printed seem like noble goals, but they
often create cramped, hard to read reports that look unprofessional.
First impressions matter, in both dining and in reports, so take a few minutes to help your data look its
best.
5. A Trusted Report Critic
Critical restaurant reviews can be harsh, but they can also spur chefs to step up their game. Before
sending in a report, tap into your own trusted critic and get their unfiltered opinion.
Ideally, your critic should be someone who isn’t familiar with the data or the project it came from. This
outsider’s perspective will reveal whether or not you’ve achieved the simplicity and clarity that are the
hallmarks of great reports.
Also, be sure you’ve built in time to make adjustments based on this feedback. It doesn’t help if you
get great ideas that you can’t act on because your report is due in an hour.
3 Optional Report Garnishes
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Sometimes you want to go the extra mile on your report. Maybe it’s your first in a new role, or you’ve
got a new boss who needs some background on your projects. Or maybe you’ve identified a potential
change that could make the report more effective.
Anytime you want your reports to go from good to gourmet, try adding one (or all) of these report
garnishes.
1. Report Introduction
This garnish is ideal if you and/or the person consuming the report are new to the role.
It provides background on the who, what, and why of the report itself. For example:
● Who produces the work being reported on?
● Who is the author (or authors) of the report, and why are they the ones who put it together?
● What (if any) actions are expected based on the contents of the report? (If the answer to this
is “none,” you may want to jump ahead to the next garnish and suggest something.)
● Why is the report coming out at this time? Has a project ended, or does the report occur at
standard intervals (e.g., every quarter, every month, etc.)?
Unlike the executive summary, which is an overview of the report’s data, an introduction is meant to
set the stage for the information being shared.
2. Proposed Changes to the Report
Once you’ve done the same report multiple times, you may start having ideas about changing the
frequency, format, or contents.
Maybe it should be done more often in a less-detailed format, or maybe a quarterly roll up would be
just as useful as the monthly reports you’re currently producing. Including such a proposal with your
next report can show that you’re thinking critically about your work, not just going through the
motions.
3. A PowerPoint Version of the Report
This is the ultimate report garnish, and although it’s labor intensive, it can help you a lot in the right
situation.
If you have any inkling that you, your boss, or anyone reading the report might find they talking about
it in a presentation format, create a PowerPoint deck based on your results.
To be clear, this isn’t just cutting and pasting things from your full report. It’s a unique piece of content
that has been fully customized to the medium.
In the Collaboration Plan, each component documents the collaborators’ plans to maximize success
related to this component, for example, by dedicating resources, leveraging facilitating factors, or
addressing known challenges. All told, the Collaboration Plan summarizes the various ways the group
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will build the foundation for, and support, effective collaboration across the lifespan of the team
science initiative, in light of these ten key influences. Given the comprehensive range of influences that
are addressed, and the various factors included within each component, the Collaboration Planning
approach may incorporate any of the aforementioned strategies among others, to help plan for
success.
Café Paradiso will serve take away beverages (especially fine coffee) and moderately priced good
quality light meals to the casual dining market within the shopping centre precinct. The café is
profitable, has a strong positive cash flow and may be seen as a strong viable and growing business.
Seaview Pty Ltd was recently established for the purpose of acquiring the existing café business known
as Café Paradiso, located at the Mountain Glen Shopping Centre. Café Paradiso was one of the first
shops to open at the centre and enjoys an excellent location from which to operate. Seaview Pty Ltd
will be acquiring the business name Café Paradiso.
Brendan and Margaret Elliott, owners of Seaview Pty Ltd are both experienced Café owners/managers
having successfully operated a number of cafes in Australia and overseas. Brendan is a qualified chef
and has previously worked for the Hilton and the Sofitel groups before owning his own café. Margaret
has a degree in Business Management (Hospitality) and she too has worked for the Hilton group of
companies and for the Rydges group.
Brendan and Margaret will work full-time in the business and will employ an additional four staff. Two
of those staff will work on a part-time basis.
Market Analysis
Situational & SWOT Analysis
STRENGTH STRATEGY
Sales & Marketing – Currently holds largest
market share in the shopping
Maintain and grow market share by improving
marketing and promotions both within and outside
the Shopping Centre
Location within the Shopping Centre for point of
sales
Provide quality products and services to generate
word of mouth endorsements and repeat business
Skills – knowledge, skills and experience of
owners/managers in running successful café
businesses previously
Train and develop staff to deliver superior quality
of products and services
Financial – owners’ access to financial resources
and strong cash flow from operations
Fund training, marketing and develop new menu
items
WEAKNESS STRATEGY
Location – capped capacity due to floor space Investigate the option of negotiating acquisition of
additional floor space from adjoining shops
OPPORTUNITY STRATEGY
Economy – Well positioned to take advantage of a
strong economy, low interest rates and high
Expand marketing and promotion and
maintain prices at current market levels
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disposable income
Social Patterns – Population growth (residential
development) and increased standard of living
Increase advertising and investigate potential
to increase floor space
Physical Factors – Improved public transport and
infrastructure
Increase advertising in these surrounding areas
to attract new clients
WEAKNESS STRATEGY
Environmental – Increased cost of utilities, such as
water and electrical power
Look at alternatives to develop capacity to use
gas and implement water saving policies and
practices
Table: SWOT analysis and strategy development
See appendix for the situational analysis done on both the internal and external environments
Industry Analysis
The café market is a competitive market with franchised operators starting to emerge in the coffee
shop segment (also offering light meals), which will over time increase concentration in this segment.
While the level of competition is increasing, the shopping centre in which Café Paradiso will be located
has capped the number of cafés and coffee shops within the complex (by covenant in the Lease
Agreement). To this extent, there will be limited competition and it is anticipated that all cafés and
coffee shops within the complex will be quite profitable.
Key points about the café and restaurant industry:
 Greater concentration in higher than average household income areas
 Sensitive to changes in real household disposable incomes
 Trend towards singles, families and business people meeting and eating out
 Growth with households increasing purchasing frequency and the amount spent in each
transaction in this area
The current general trend is for cafes and restaurants to concentrate on offering value for money with
an emphasis on family restaurants, as well as franchised opportunities. The industry will continue to
benefit from higher incomes and time constraints on some households as well as lifestyle changes. This
will include more dining out or take away food consumption.
There are three key success factors in the café industry that are essential for the business to do well in
order to be competitive. These factors are based on the positioning of the business as well as its’ place
and physical appearance:
 Location of café in terms of:
o Proximity to surrounding attractions
o Short distance to consumers
o Convenience and accessibility
 Physical appearance in terms of:
o Cleanliness of premises
o Quality of food
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o Quality of service
 Clear market position
Competitor Analysis
Our two main competitors are Club Café and Coffee Extravaganza as they both have strong brand
recognition, with high product quality and well-documented processes for how the business should be
run which comes from being a national franchise business. However, they have the operating
boundaries of the franchisor that doesn’t give them the flexibility to change menu items so easily. This
flexibility is something Café Paradiso can take advantage of with having a chef who can develop new
menu items to meet the changing preferences of customers. Zhavargo’s Café is able to be more
flexible to market needs attracting the price conscious clientele with an average quality product but
this is not the market space Café Paradiso is competing in.
Our competitors have no history of discounting and whilst the number of cafés within the centre is
capped, pricing should remain very stable. The following tables outline an analysis of the café’s
competitors, their products and targeted customers:
Table: Analysis of competitors
Company
Name Size Sales Mix
(Product/ Service) Years in Business Reputation Rating
(1-10)
Club Café
National
franchise - 20%
market share
Coffee, wine and beers and
other beverages, light meals,
cakes and desserts; liquor
license
2 years - since the
centre was
opened
8 - Franchise chain
has a sound
reputation
Coffee
Extravaganza
National
franchise – 20%
market share
Coffee and other beverages,
light meals. Focusing more on
coffee and beverages
2 years - since the
centre was
opened
8 - Franchise chain
has a sound
reputation
Zhavargo’s
Café
Local suburban
café.
Coffee and other beverages,
light meals
2 years – since
the centre was
developed
5 – 6. Variable
quality
Table: Analysis of competitors’ products and services
Marketing mix Club Cafe Coffee Extravaganza Zharvargo’s Café
Product Quality High High Variable
Price Upper end of the market Upper end of the market Low end of the market
Place/
Distribution
Franchise – Australia wide.
Locally only the one outlet.
Franchise – Australia wide.
Locally only the one outlet. Only the local outlet.
Promotion
Shop signage, loyalty cards,
sideboards and well know
brand
Shop signage, loyalty cards,
sideboards and well know
brand
Shop signage,
sideboards
People
Franchisees and staff trained
up to the standards of
franchisor
Franchisees and staff trained
up to the standards of
franchisor
Only the local outlet.
Processes Documented processes and Documented processes and Mainly in the head of
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standards to manage and get
the most value out of the
business
standards to manage and get
the most value out of the
business
the owner
Physical evidence
Everything to the standard of
the franchise from the
quality of the product,
service, fit-out of the
premises and staff uniforms
etc
Everything to the standard of
the franchise from the quality
of the product, service, fit-out
of the premises and staff
uniforms etc
Standards vary in
terms of quality of
products, services, staff
and physical
surroundings
Café Paradiso will need to maintain current marketing activities and a high level of service and product
quality to ensure its competitiveness. It needs to have a clear market position to target and promote
the quality and value for money of products and services.
Elements of Success
Target Market
There is substantial population growth in the area as residential development continues and
commercial development commences. The master planned community attracts a high socio-economic
demographic with high employment and higher than average per capita income.
Café Paradiso customers are the passing shoppers and shopping centre staff of all ages who enjoy a
fine coffee (dine-in, or take away) and a healthy, value-for-money meal. The majority of the general
public consulted in the shopping centre were families and young singles. The cafe will make it
particularly easy for a young family to enjoy a meal by providing a range of children’s meals and
activities. Our take away beverages will also appeal to this group and the segments made up largely of
singles between the ages of 18 – 40 who shop or work within the shopping centre precinct. They tend
to have moderate incomes with high discretionary spending.
The majority of customers who purchase coffee from Café Paradiso are ‘social drinkers’, followed by
customers who want their daily fix or a pick me up. They are wanting a convenient, friendly and
relaxing environment to ‘recharge their batteries’ or socialise over a fine coffee, choice of beverages
and quality fresh, light and healthy meals that provide an alternative to fast food options. The market
need being satisfied is based on convenience, quality and value for the coffee drinkers as well the
health conscious consumer who is concerned about what they eat.
Competitive Advantage and Unique Selling Proposition
Our first and main competitive advantage that we possess is our location. Café Paradiso is in the best
possible location for a café and has 3 years of the initial 5 year lease to run, plus the option of another
5 years.
Our second competitive advantage is the quality and value of the wide variety of light and healthy
meals offered by the business that cannot be matched by other businesses in the centre. In addition,
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one of the owners is an International Chef who can create new menu items overnight which gives the
business the flexibility to sell products to meet the changing preferences of customers.
Our third competitive advantage is the industry experience and expertise of both owners running
successful café and restaurant businesses in the past.
These competitive advantages form the basis of our unique selling proposition with the slogan of
“Paradiso’s – convenient, light and healthy” and will also include widely promoting the culinary skills of
our International Chef.
Marketing Plan
Marketing Objectives
There are three key marketing objectives:
To achieve sales of $536,650 for the first year and $580,000 for the second year.
To achieve estimated 40% market share next 12 months.
To position the business as a convenient place to eat light and healthy meals
To be reviewed in 6 months.
Marketing Mix
PRODUCT
Healthy and light meals are the key point of differentiation for the business because the Café has the
capabilities and flexibility to develop new menu lines to meet the changing needs and tastes of
customers, whereas the two franchise businesses in the centre must conform to the requirements of
the franchisor. While the other products, in particularly fine coffee, are not unique they do offer
excellent ‘value for money’ that fill the price points between the high and low ends of the other coffee
and café businesses in the centre.
The café will provide the relaxed and friendly environment that our customers seek when searching for
a ‘dine in’ meals, beverages and cakes and desserts that offers excellent value for money, but do
recognise that this is not unique as shown in table 4 below:
Table: Value Propositions
Features Benefits Importance (1 to
10)
Unique
?
Y/N
Cafe environment Relax and take a break 8 No
Fine coffee Enjoyment & social
connector 7 No
Beverages Refresh and relax 4 No
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Features Benefits Importance (1 to
10)
Unique
?
Y/N
Fresh & light
meals Health & well being 8 Yes
International chef Quality and variety of meals 8 Yes
Cakes & desserts Complements coffee & meals 4 No
Rating: 1 = Low, 10 = High
PRICE
We propose to offer high quality food and service at a price comparative to our major competitors –
we will meet the market on price to retain market share if we need to. Our clientele have a medium to
high disposable income and seek high quality products and good service; pricing will reflect the value
of our products and services.
The shopping centre has a ‘captive market’ and given the limited number of cafés in the centre, prices
have not been discounted in the market. There is no intention to discount to buy market share as Café
Paradiso currently holds the largest market share of approximately 35% and we intend to take it to
40%, whilst maintaining existing margins.
PLACE (i.e. DISTRIBUTION)
Customers access and purchase our products and services through our shop front. The location of the
café is at the southern end of the Mountain Glen Shopping Centre. Mountain Glen is a very large
regional shopping centre drawing customers from up to 15 kilometers away and is surrounded by a
‘market’ of approximately 250,000 persons.
It is situated on the main mall, near the major (national) supermarkets and retail fashion clothing
chains. It has a high passing trade due to its close proximity to two national supermarket chains and a
number of well-known retail fashion clothing chains. The café is 60 m² and there is three years to run
on the current 5 year lease. An option to take another 5 years is available under the lease.
When the proposed commercial development goes ahead, the businesses located there are potential
customers for a catering business. The business plan will be revisited at this time.
PROMOTION
In conjunction with Mountain Glen Centre Management we will be undertaking a range of promotions
when we take over the cafe promoting the new ownership of the café. These promotions will include
offers of discounted meals and coffee, but they will only run for two weeks. We estimate that this will
be sufficient time to allow a smooth transition to ourselves as new owners.
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Our regular advertising will consist of shop front A-frame advertising boards, weekly newspaper
advertising and a three monthly flyer drop in local mail boxes. As most of our business will be passing
trade, shop front signage will be bright and appealing. We will develop and offer a loyalty card scheme
to increase repeat business.
Word of mouth advertising is very important and the best advertising we will be providing is the
quality of our products and service.
PEOPLE
Both Brendan and Margaret Elliott have been successful owners and managers of cafés. Brendan is a
French trained chef and his skills will be used new product lines to meet the changing needs and
preferences of consumers which will be a point of differentiation for the business Margaret with her
business and hospitality background will be responsible for the day to day operations of the Café.
Two key staff member who worked with the previous owner will be retained to help with the
continuity of existing relationships with customers.
PROCESS
Major processes are flow-charted in the café’s procedure manual that are geared to providing quality
and responsive services to clients as well as efficient and effective operations of the cafe. This includes
sufficient numbers of staff are working during the peak periods to make sure customers are served in a
timely manner. Further information about the processes in place are detailed in section 8 of this
business plan.
PHYSICAL EVIDENCE
The café is fully fitted out with table, chairs and décor that projects the desire image of quality and
value as well as aligns with the USP of ‘Light and Healthy – Café Paradiso’. This also applies to uniforms
for the staff. The cleanliness of the premise, tables and chairs will be maintained to a consistently high
standard at all times.
Action Plan
In conjunction with Mountain Glen Centre Management we will be undertaking a range of promotions
when we take over the cafe promoting the new ownership of the café. These promotions will include
offers of discounted meals and coffee, but they will only run for two weeks. We estimate that this will
be sufficient time to allow a smooth transition to ourselves as new owners.
Our regular advertising will consist of shopfront A-frame advertising boards, weekly newspaper
advertising and a three monthly flyer drop in local mail boxes. As most of our business will be passing
trade, shop front signage will be bright and appealing. We will develop and offer a loyalty card scheme
to increase repeat business.
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Word of mouth advertising is very important and the best advertising we will be providing is the
quality of our products and service. In this area will be training the staff in customer service skills
When the proposed commercial development goes ahead, the businesses located there are potential
customers for a catering business. The marketing plan will be revisited at this time.
Sales Analysis and Forecast
Our sales analysis has revealed that we can expect on average 6,000 customers (transactions) per
month with a general mix of customers buying only coffee, usually ‘take away’ and those ‘dining in’
buying a light meal and coffee. Our sales forecast is based on an average industry selling price of $3.50
per cup for coffee and average light meal selling price of $13.00. We expect that the mix of coffee to
meals will be approximately 1.5:1 and have based this on the cafés current figures. On this basis we
have projected sales of $536,650 for the first year and $580,000 for the second year. Sales will spike in
the build-up to Christmas and at times of seasonal celebration e.g. Mother’s and Father’s days, Easter
etc. Our Sales Forecast by quarter is shown in the figure below.
Sales performance will be analysed on the basis of sales ($) per employee.
Figure Sales forecast
Risk Management
Table Risk assessment
(L=low, VL=very low, M=medium. H=high, VH=very high)
Risk
Description
Likelihoo
d
Impac
t
Priorit
y Preventative Action Contingency
Plans
Fire – loss of
property/life
M H H Installation of smoke alarms and
sprinkler system, fire extinguishers
Immediate access to
personal resources to
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Risk
Description
Likelihoo
d
Impac
t
Priorit
y Preventative Action Contingency
Plans
installed and regularly checked, regular
staff training in emergency fire
procedures including evacuation plans
(shop & centre), Ensure insurances
including fire, public liability and
business interruption are adequate and
in place
rebuild shop and
business quickly
whilst waiting for
insurance payments
Change in
suppliers
terms
M M M
Maintain good relationships with
suppliers and maintain access to
personal cash reserves
Utilise alternative
suppliers or increase
working capital (from
personal cash
reserves)
Food
poisoning VL VH H
Use quality products, correct storage of
food stuffs, train staff in hygiene
principles as part of a Quality Control
Process
Develop a complaint
handling process.
Investigate source of
food poisoning and
remediate
Supplier
unable to
supply
L M M Arrange alternative suppliers, evaluate
substitute products
Purchase from
alternative suppliers
or use suitable
substitute products
Major dispute
with centre
owner
L M H
Ensure formal lease agreement is in
order. Develop and maintain a sound
working relationship with the Centre
Manager.
Engage lawyer for
advice
Loss of key
person VL M M
Take out key person insurance, effect
knowledge and skill transfer to other
staff
Short term contract
for suitable
replacement (until
permanent staff can
do the job). Call up
insurance policy
The business package will include public liability, fire, theft, burglary and business interruption
insurance. The above is based on quotes obtained from our Insurance Broker. Insurances will be
finalized once the contract has been signed.
Brendan and Margaret have life insurance and income protection policies already in place.
Human Resource Management
The management of the business comprises Brendan and Margaret Elliott who between them have
significant experience in the hospitality industry. Brendan is a qualified chef and has successfully
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managed a number of restaurants both here and overseas. Margaret has experience in the ‘front’ and
‘back’ offices of resort hotels and is highly respected in the industry for her management skills.
The maximum staff requirement (including the owners) is estimated at 6 employees. Two of the
employees will be employed on a part-time basis. The main skill sets required are food preparation,
sales, customer service, front counter, stock control and management. It is planned to retain two staff
members from the previous ownership and recruit two more appropriately qualified staff. We will be
taking them through our in-house induction program prior to opening.
Salaries and wages in the first year are estimated at $182,000 and $200,000 in the second year of
operation.
Organizational Chart
Team
1
Team
1
Staff at Café Paradiso will be organized into two teams. Team 1 will be headed by Margaret Elliott and
will be responsible for customer service and administration. Brendan Elliott will head Team 2 which will
be responsible for the food preparation and the kitchen.
Margaret will have primary responsibility for staff, accounting, sales, marketing, and managing the
operation of the Café. Brendan will be responsible for HR, stock control, the kitchen and food
preparation.
Owner/Operator Skills and Experience
Table: Summary of owners’ knowledge, skills, qualifications, and relevant experience
Name Position Knowledge, Skills, Qualifications and Experience
Brendan
Elliott Owner/Manager; Chef French trained chef, international and local experience.
Local restaurant and café experience
Margaret
Elliott
Owner/Manager; Business
Manager; responsible for the day
to day running of the Café
Degree in Business Management (Hospitality). Worked
for two national franchise chains, with the last role
involving turning around the underperforming
restaurants of the Hotel/Motels
Goals and Outlook upon implementing the social media marketing strategy described above, we can
use this information to compare results month to month/quarter to quarter/year to year, to
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understand the full scope of the marketing initiatives worth pursuing. Our analysis projects the
following outcomes. We are committed to influencing optimal revenue growth, while exceeding our
client's expectations.
We are a small group of passionate marketers, committed to the success of our clients.
The pace and competitiveness of social media marketing often narrow our focus to a cycle of making
content and then pushing it through platforms of choice using the latest and greatest best practices.
The potential return on building and serving an audience with this approach is significant. However, as
we look for more ways to compete and more ways to engage, we should step back to evaluate the full
breadth of assets we develop as social media marketers and look to leverage all of them in a unique
way.
Part C - Support the evolution of collaborative agreements
Write a draft partnership proposal for the intended business or company focusing on:
1. How to monitor and nurture relationships with collaborators
2. How to assess performance of all parties to an agreement against organisational and program
objectives and expected results, and address variances
3. How to make changes to agreements as required according to organisational policies and
procedures
Discussion may follow the sequence below:
 State the reason for your need or want to form a business partnership or alliance with the
business you have selected from assessment 1.
 Write a brief background to the company you intend to pitch to for your business partnership
and or alliance.
 Explain the opportunities you can project for the partnership or collaborative alliance.
 Explain what benefits will come from the partnership or alliance for your intended business /
company.
 Explain the benefits for your business / company.
 Explain the WIFM (What’s In IT For Me!)
 Describe the relationship you wish to form with the intended company or business.
 Define the aspects you wish to share such as, costs, resources, skills, media, marketing,
advertising, monies, brand awareness.
 Include a partnership agreement draft form for you and the intended company or business.
Please sign and date the form and fill out the form with as much detail as possible.
 Define how you will implement the agreement.
 Outline areas that may cause a breach.
 Describe how you intend to keep track of the partnership / alliance and how you will monitor
and provide feedback to both parties.
 Describe how to assess performance of all parties to an agreement against organisational and
program objectives and expected results, and address variances
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 Describe how to make changes to agreements as required according to organisational policies
and procedures
Before signing an agreement with your partner(s), make sure you both understand the advantages and
disadvantages of a partnership.
Any arrangement between individuals, friends, or families to form a business for profit creates a
partnership. As there is no formal registration process, a written Partnership Agreement shows a clear
intention to form a partnership. It also sets out in writing the important details of how the partnership
will run.
Investors, lenders, and professionals will often ask for an agreement before allowing the partners to
receive investment money, secure financing, or obtain proper legal and tax help.
Without a partnership agreement, your state’s default partnership rules will apply. For example, if you
do not detail what happens if a partner leaves or passes away, the state may automatically dissolve
your partnership based on its laws. If you want something different than your state’s de facto laws, a
formal partnership agreement allows you to retain control and flexibility on how the partnership
should operate.
Without a partnership agreement that clearly spells out each partner’s share of the profits and losses,
a partner who contributed a sofa for the office could end up with the same amount of profit as a
partner who contributed the bulk of the money to the partnership. The sofa-contributing partner could
end up with an unexpected windfall, and a large tax bill to go with it.
A partnership agreement also allows you to anticipate and settle potential business conflicts, prepare
for certain business contingencies, and clearly define the partners’ responsibilities and expectations.
A general Partnership Agreement should generally have details outlining at least the following:
 Who are the partners
 What did each partner contribute
 Where are you doing business
 When does it begin and end
 Why was it formed
 How are profits and losses distributed
 What will happen if a partner leaves or passes away
Business Premises and Location
At present the only facility we will be using is the café. It is ideally located within the shopping centre
to attract passing customers and is also relatively close to our main suppliers i.e. grocer and bakery.
The café is fully fitted out and is fit for purpose.
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There is no need for a separate operating location at this point in time. There is an opportunity to roast
coffee beans and manufacture the café’s own blends at a later date. If this occurs, it may be necessary
to acquire operating premises to implement the idea.
Plant and Equipment Requirements
Set out below is a listing of the minimum plant and equipment items that are required to successfully
operate the Café. A schedule of the plant and equipment (and their values) contained in the purchase
price will be included in the contract documentation and will be subject to due diligence. The purchase
price of the plant and equipment items listed below is stated in the contract at $50,000.
The items to be acquired in the purchase price are two years old and will be subject to a Mortgage
Debenture Charge as part collateral for the bank loan.
We will undertake routine maintenance and plan the replacement of plant and equipment items on
the basis of annual condition assessments.
Table: Listing of plant and equipment
Description of Plant /
Equipment Item Number required Cost and how financed Ongoing costs and
Maintenance
Quality coffee maker 1 Included in the
purchase price. Under warranty
Small commercial
kitchen 1 Included in the
purchase price.
Annual maintenance
check
Benches & cupboards,
sinks/drains
Included in the
purchase price. Replace as necessary
Furniture – Chairs &
tables
36 chairs
10 tables
Included in the
purchase price. Replace as necessary
Signs 3 Included in the
purchase price.
Replace within 6 months
as part of promotional
strategy
Crockery, cutlery and
linen
72 settings of crockery
and cutlery
Included in the
purchase price. Replace as necessary
POS Equipment
(including software),
computer
1 of each Included in the
purchase price. Under warranty
Purchasing and Supply
Brendan has contacted all existing suppliers and has negotiated supply arrangements on very attractive
terms. At this point there are no written contracts although three suppliers have indicated that they
are currently preparing contracts for execution. Where suppliers do not provide formal contracts we
will be requesting an exchange of letters to confirm the basic arrangements.
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In most instances local alternative suppliers exist. Where local alternative suppliers do not exist, we
have identified alternative suppliers from nearby regions who have the capacity to meet the café’s
needs in a timely manner at a reasonable cost.
Table: Listing of major suppliers
Name Product/
Service
Volume
Purchased
Trading
Terms Alternate Suppliers
Mountain Glen Fruit &
Vegetable Supplies
Fresh fruit and
vegetables
$1,400 per
week 30 days
Alternative local supplier
‘The Greengrocer’
Tasty Meat & Delicatessen
Supplies
Fresh meat,
manufactured
meat, and
delicatessen
items
$500 per week 30 days
Alternative local supplier
‘Mavs Meat Supplies’
Mountain Glen Bakery
Supplies
Fresh bread,
rolls, and flour
etc
$1,200 per
week 30 days
Alternative local supplier
‘The Daily Bread’
Café Supplies Pty Ltd Plant and
equipment As required. 30 days
No local alternative supplier
Interstate options
Hot Shot Coffee Supplies Coffee beans $150 per week 14 days
No local alternative supplier
Interstate options
BWS (Drink Suppliers) Wines, beer,
soft drinks $350 per week 30 days
A number of alternative
suppliers exist
Various
Uniforms R Us Staff uniforms
& badges 4 per quarter 30 days
Alternative local supplier
‘Workwear’
Café Supplies
Serviettes,
tablecloths,
promotional
material
30 days
No local alternative supplier
Interstate options
Operating and Production Processes
Our major processes are sales, food and beverage preparation, table service and stock control
(ordering, storing, controlling). Major processes are flow-charted in the café’s Procedures Manual. A
copy of this is appended to the business plan. The processing of Point of Sale (POS) transactions is
electronic, with transactions being automatically posted into the accounting system (which
incorporates a stock control system). The table below represents the current and the planned level of
operation and the standard of these operations.
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Table: Analysis of operating facilities and processes
Detail
Current Level of
Operation/
Standard
Meets Industry
Standard
Planned Level of
Operation/ Standard
Meets Industry
Standard
Plant/Office Capacity ‘Dine in’ seating for
36. Yes 36 + May need to
increase floor space Yes
Scheduling (operation,
sequences & timing)
Current schedules
working well. Yes Efficient, effective &
economical Yes
Equipment/Tooling
Requirements
Equipment sufficient
for our needs Yes Maintain and replace
as required. Yes
Layout of business
premises
Premises well
designed and lay out
excellent.
Yes
Review design and
lay out if additional
space acquired
Yes
Material Requirements
All goods and
produce readily
available at
reasonable prices
Yes No change envisaged
at this time. Yes
Location Excellent Yes Excellent location Yes
Distribution Customers come
into the café. Yes Customers come into
the café. Yes
Quality Controls QA system working
well Yes Ongoing continuous
improvement
Satisfies all
industry
requirements
Staffing Levels Adequate at present
Yes. All
appropriately
trained
Appropriate Yes
Purchasing lead times
Excellent. Great
service from
suppliers
Yes No change envisaged
at this time. Yes
Stock or Inventory
All stock at this stage will be stored ‘on site’ at the café. Fresh produce such as vegetables are
purchased in vacuum sealed bags or cartons and meat in vacuum sealed packs. These will be stored in
a small commercial refrigerator. Other items such as coffee beans, canned and packaged products will
be kept in the storage cupboards.
Other perishables including cakes and cheese cakes will be kept in refrigerated display cabinets and
will be stored for a maximum of three days.
On average, we expect to turn stock over once per week.
Stock will be controlled using our stock control system, which is a module of the accounting software
package.
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Information Communication Technology Systems
ICT systems include the computerized EFTPOS system, linked to the accounting system. The EFTPOS
system will process Direct Debit, Credit Card, and Cash transactions directly to the bank and the
accounting system. The accounting system will process the payroll, stock control, general ledger
transactions and maintain the Human Resource records.
These systems effectively reduce manual accounting and processing to a minimum. They provide real
time reports, thus enhancing productivity and management decision making.
Operational Forecast
We have projected sales transactions at 17,900 for QTR 1, 19,500 for QTR 2, 15,900 for QTR 3, and
18,600 for QTR 4. Our average sale price is estimated to be $7.46 with the average cost of sales at
$2.20.
Our average number of employees is estimated at 5 with 6 required at peak times. This includes both
full time and casual employees.
Profit per person is projected at $4,448 per month. Our target for client satisfaction is a rating of 85%
for the first year.
Table: Analysis of operational performance (existing/planned)
Operational
Feature
Rating out of 10
Notes - Methods for ImprovementCurren
t
Expected (in next
6 months)
Cost 8 9 Change menu to match seasonal availability and cost of
food items
Quality 7 9 Ongoing QA audits and training
Wastage 8 8 Monitor stock control (orders & wastage)
Flexibility 9 10 Workplace Agreement
Skill Levels 7 8 On the job training, mentoring and coaching
Dependability 10 10 None at present
Scheduling 10 10 None at present
Downtime 10 10 None at present
Safety 10 10 None at present
Service 8 10 Train staff and encourage excellence in service
Technology 7 8 On the job training for the EFTPOS
Innovation 7 9 Evaluate changes in consumer tastes and behaviour and
monitor the menus of the leading restaurants and cafés
The current rating is based on our observation of the existing operation under the current owner. We
propose to lift standards significantly within a few months of taking over. We believe that this is
necessary and achievable.
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Financial Plan
Tables attached:
 Sales Forecast
 Start-up Budget
 Annual Profit Budget
 Profit and Loss Statement (2 years projected)
 Annual Cash Flow Budget
 Balance Sheet (2 years projected)
 Break-Even Analysis
 Financial Analysis
Start-Up Budget
The start-up budget is estimated at $ 209,810 broken up into ‘one off’ costs of $187,300 and monthly
expenses in advance of $ 22,510. Included in the ‘one off’ costs is goodwill valued at $120,000 and
plant and equipment of $ 50,000. The start-up budget is shown in Figure 3 below.
The Start-up budget is to be funded by way of equity injection of $104,905 by the owners and a loan
over two years from the bank. The bank loan will be repaid out of the business’ strong cash flow. If
cash flow is reduced for any reason, Brendan and Margaret have personal financial resources to more
than adequately cover the loan repayment. A Mortgage Debenture over the business is being offered
as collateral along with the Directors personal guarantees.
Cash Flow Forecast
The Cash Flow Forecast projects a very healthy cash surplus on trading for each month with the end-
of-year ‘cash from operations’ calculated at $105,847 and an ending cash balance of $145,657.
Brendan has negotiated very favorable credit terms of 30 days from all suppliers for the first 12
months, although in most cases these arrangements are not in writing. If all suppliers reduced their
terms to 7 days cash flow for two trading months, the peak cash shortfall would be approximately
$1,200 for about 2 months.
Brendan and Margaret have significant liquid assets to call upon should this eventuate.
Balance Sheet
The opening Balance Sheet shows an equity position of $104,905 growing to $214,774 at the end of
Year 1 and to $345,949 at the end of Year 2. By the end of Year 2 the business will be clear of any debt
and be ‘cashed up’ to take advantage of further opportunities in the market place.
Break-Even Analysis
The Break-Even point has been calculated at 4138 transactions at an average selling price of $7.46. This
equates to a contribution margin of $6.38 per transaction and a Break-even sales point of $30,869 per
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month. The projected level of sales for each month is well above the Break-even level (approximately
30% above).
Figure Break-even analysis
Financial Analysis
The Return on Owners Equity calculated on the projected end of year financial performance and
position indicates a return on investment of 51.2%. Return on Total Assets is calculated at 37.3%. Gross
Profit Margin over the period is estimated at 71% with the Net profit Margin estimated at 20.5%.
Assumptions
Average sale price $7.46 per transaction
Average cost $2.20 per transaction
Sales transactions range from 5900 per month to 7500 in peak period
Historical gross profit margin of 70% will hold.
Seasonal fluctuations – Christmas and New Year are peak periods of sales activity (build up from
November, the after New Year slow to February)
The business operates on a cash basis for reporting and paying tax.
PAYG (withholding) is remitted monthly on the Instalment Activity Sheet (IAS), with GST remitted
quarterly in arrears on the Business Activity Statement (BAS).
Financial Worksheets
The following documents have been attached:
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 Sales Forecast
 Start-up Budget
 Annual Profit Budget
 Profit and Loss Statement (2 years projected)
 Annual Cash Flow Budget
 Balance Sheet (2 years projected)
 Break-Even Analysis
 Financial Analysis
Start- Up Budget
MONTHLY EXPENSES Projected Monthly
Expenses
Cash needed to
Start
% of
Total
Salary of owner-manager $8,000 $8,000 3.8%
All other salaries and wages $7,000 $7,000 3.3%
Rent/lease $2,200 $2,200 1.0%
Advertising & promotion $200 $200 0.1%
Delivery expense
Supplies (stock-in-trade) $3,100 $3,100 1.5%
Telephone $300 $300 0.1%
Other utilities (electricity, gas etc) $500 $500 0.2%
Insurance
Consumables $300 $300 0.1%
Interest $460 $460 0.2%
Maintenance $200 $200 0.1%
Legal and Professional costs $250 $250 0.1%
Miscellaneous
Subtotal $22,510 $22,510 10.7%
One Off' Costs
Fixtures and Equipment $50,000 23.8%
Fitout
Installation charges
Starting Inventory $3,000 1.4%
Deposits for utilities (electricity, gas etc) $400 0.2%
Legal and professional fees $2,750 1.3%
Registrations, licenses and permits $1,000 0.5%
Advertising and promotion for opening $550 0.3%
Cash $5,000 2.4%
Other $124,600 59.4%
Subtotal $187,300 89.3%
Refining the plan
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This section would not be retained when presenting the business plan to other parties e.g. potential
lenders and investors.
Building off of some of the concepts of organizational effectiveness already covered, let’s look at a few
ways to measure organizational performance.
Achievement of Organizational Objectives
One of the most common ways to evaluate organizational effectiveness and performance is how well a
business achieves its stated goals.
This approach would evaluate factors such as:
 How successfully an organization meets its targets
 Expenditures
 Bottom-line profits
 Innovation
 Growth
Some models of organizational effectiveness, as mentioned, revolve exclusively around goal-setting
and achievement.
Others include other metrics such as those covered below.
Business Process Efficiency
The efficiency of individual business processes can also be used to gauge organizational performance.
Business processes, units, and functions can be measured by, for instance:
 Speed
 Cost-efficiency
 Results and productivity
 Agility and adaptability
Measuring every business area or function can help organizations spot inefficiencies as well as growth
opportunities.
Results of Business Investments and Projects
Another measure of organizational performance is how effectively and efficiently an organization can
execute business projects.
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High-level metrics for evaluating individual projects can include:
 Financial returns
 Project results
 Project efficiency
 Projected costs versus actual costs, measured against the derived benefits
As with the other performance indicators covered here, it is important to keep these measurements in
the context of a model of organizational effectiveness.
Though some measurements are more valuable than others, no single metric should be used as a
catch-all to determine performance.
Marketplace Performance
How well a business performs in the marketplace can also demonstrate is effectiveness and
performance.
Areas to measure can include:
 Market share
 Innovation
 Growth
 Valuation
 Profits
Alignment
Organizational alignment can refer to the synchronization between:
 Different departments
 Individual employees and their department or their team
 The workforce’s actions and the organization’s mission
 The organization’s behavior and its mission
 An organization and its marketplace
The more aligned that workers and business units are with the organization, the better an organization
will perform.
Strategic goals
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To grab greater target showcase, moving from conventional boyfriends to counting a young lady scope
of barbie dolls. To grab the media consideration, getting more clients from TV promoting, connecting
with a considerably greater gather of spectators Giving clients additionally existing and quick paced
toys, extend scope of accessible toys Give quality items and have more fruitful and compelling
techniques for conveyance set up
These regarded workers will then offer assistance the preparation of newcomers and current
representatives who required guide Decreasing the promoting by around half Designating a position
committed to keeping up the nature of the total results of each generation line and another position
whereby the measures and procedures are kept up. Division of the showcasing group, part into two
workplaces one into promoting and another half shaping the business office Direct a survey, checking
and recognizing all reactions gave A representative reward and compensation system will be actualize
to improve the development and improvement of individual workers Audit the organization method at
normal intervals, passing on reviews and surveys to each single existing worker, getting their input for
upgrade the business method and execution of representatives Grow modern item and prepare in
quicker and better course at the practical creation.
Collecting of modern product offerings got to be displayed, centering on the more established and
develop segment advertise. Online progression of the toys through web-based social networking, for
example, Facebook and other online sources, for occasion on kid amusements sites
The workers that are already skilled and prepared will each be given a group / bunch of staff to
prepare and give them with the information required for that toy production line. Region brief of staff
Equal division of skilled employees over the distinctive toy production lines Set out a task for each
group, to carry out. Reducing notice by more than 50% Halving Tv promotions and coordinating that
money towards expanding the number of workers in the manufacturing process.
Newer ways promoting the company might be using social networks (such as Facebook, Twitter,
Tumblr etc) permitting for the use of free advertisement.
The promoting group is to be divided into half. One half of their marketing group will be moved over to
create the deals group whereas the other half will stay as the marketing frontline.
Surveys got to be made and conducted among the younger generation inquiring them what they need
to see in a toy company and the assortment of toys they would need available. All feedback will be
examined and acknowledged, in any case a cost benefit investigation will be made to see which
alternative is more feasible than another.
A remunerate system will be in place to assist motivate representatives to work harder and compete
with one another to pick up the title of ‘Employee of the month’. Ceremonies and events will be held
for employees where they will be awarded with a certificate for their commitment to the company
A monthly survey process will be conducted to assess representative work fulfillment with their
working environment and all directors are to thrust forward the thought of positive reinforcement.
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Give positive feedback and acknowledgment to the group once they wrap up a task to motivate them
to perform way better task. Engineer ought to be contracted or prepared into the company
Responsible for checking and assessing the quality of the material that come into the production
Another design has the task of looking into and assessing the quality of the finished product. Review
the company prepare each 6 month, to guarantee the commerce is working well meeting business key
objective inside the time outline. Review Process will have done by assessing the business’s report to
check the precision and commerce performance. Once trade is checked on, business plan, goal and
objective will be compare to the real execution. By doing this, the company will be able to require the
most fitting adjustment activity and procedures to realize the business’s plan, goal and objective.
During event, such as Christmas, birthday and others occasion toys are ordinarily well known because
it is what kids need to get. Present new toy range that target develop gathering of people would be a
awesome methodology.
Innovative and catchy toys will attract the guardians to purchase the toys for their kids, subsequently
unused line toy ought to be target not as it were at kids but moreover the guardians and develop
audience. Social media got to be enormous portion of everyone’s life these day, the greatest social
media would be Facebook where everybody have one that can be interface and seen any place within
the world. Free notice and promotion People can too like and connect the company’s profile where
they can continuously interface to the company’s update.
Customer satisfaction
Use online survey tool to measuring customer satisfaction can help to reduce the number of unhappy
customer focus on these customer satisfaction metrics.
Uses email to send personalized special offers to specific groups of customers.
Build customer loyalty to increase customer satisfaction
Remember special occasions like birthdays
Strive to empower and educate customers1
Invest in a self-service support channel
Top level managers must lead from the front with customer service
Toy quality control
Critical dimensions of quality are utilizing metrics and key performance indicators (KPIs) to evaluate
the complete value chain, not fair chosen functional areas.The most profitable measurements per
thinks about conducted of quality metrics’ affect on productivity include defect rates, cost of adjust,
guarantee costs, after-sales benefit costs, opportunity costs and costs of good and bad quality.
Toy production cost control
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Watch suppliers and search for alternate sources for the same quality stock at better prices. Keep
annual contract terms with suppliers to allow for changes in market condition
KPIs
Optimum utilization of resources
Utilize human resource planning software. It is important that you succeed in this endeavor in case the
core targets of the organization are to be met. Training can be organized in absence of internal
expertise. Process improvement Improving commerce handle will include changing existing systems,
teams, or forms. For example, we got to acquire modern software, contract a new team member, or
organize training for colleagues. So, we must able to communicate change.
Use apparatuses such as the Change Curve Add to My Personal Learning Plan and Kotter's 8-Step
Change Model Add to My Personal Learning Plan to assist overcome resistance to change. Productivity,
Workforce Efficiency& Quality of Work Effective rewards drive performance
Make shared worker responsibility—by cascading his or her objectives with others in the company.
Creating an open and communicative environment counting quality feedback with respect to
objectives and progress Managers more easily remain in touch with employees' progress—during each
stage of objective completion and offer quick support or coaching to keep execution and due dates on
track.
Cost, Profit and Growth
Develop new product lines - survey your customers about new products
Find new markets - use market research to determine if you could expand your business into new
areas
Customer service - improve your customer service and develop a staff training program
Decrease inventory
Decrease direct costs - make sure you have the right suppliers for your business and negotiate for
better prices or discounts for buying in bulk
References:
https://www.workfront.com/blog/write-the-perfect-report-every-time-a-real-world-recipe
https://www.deakin.edu.au/students/studying/study-support/academic-skills/report-writing
https://www.newcastle.edu.au/__data/assets/pdf_file/0008/333773/LD-Report-Writing-LH.pdf
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http://www.csu.edu.au/__data/assets/pdf_file/0004/51934/Business-Report-Writing-Skills.pdf
https://urgenthomeworkwriters.com/state-practice-agreements/
https://www.sec.gov/Archives/edgar/data/1410428/000119312510260640/dex103.htm
https://www.simuldocs.com/templates/business-collaboration-agreement
https://contracts.onecle.com/cancervax/applied.collab.2000.07.03.shtml
https://www.who.int/docs/default-source/antimicrobial-resistance/who-dndi-
antimicrobialprojectcollaborationagreement.pdf?sfvrsn=4444adaa_0
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