BBM-7-PMP: Coffee Klatsch Café Project Proposal, January 2018

This project proposal details the plan to open a café named Coffee Klatsch in London. The proposal, prepared by a student, outlines the project context, requirements, and proposed solutions, including aims, deliverables, and a 97-day timeframe starting February 5, 2018, with a budget of £67,260.00. It addresses quality management, risk mitigation, and provides a theoretical context using Porter's theory and PESTLE analysis. The project includes a Gantt chart, resource allocation, and budget breakdown. The aim is to establish a high-quality coffee shop in a central location, providing quick service and a friendly environment. The project covers feasibility analysis, development, implementation, and project closeout phases, with a focus on stakeholder management, procurement, and interior design. The document emphasizes the importance of planning, resource allocation, and budget control for successful project completion.

Running head: BUSINESS PROJECT MANAGEMENT
Business Project Management Practice
BBM-7-PMP
January 2018
A Case Study of Coffee Klatsch
Student Name: Monica Dos Anjos Dias Gomes Sa Nogueira
Student ID: 3328562
University Name: London South Bank University

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Executive summary
This paper is focused on preparing a project proposal to open a café named Coffee Klatsch in the
near future. In this proposal, the discussions are carried out on the project context defined as
background and the history behind this project from the provided case study. The requirements
of the project are also illustrated in this proposal as gathered from the associated stakeholders.
Further, a solution has been proposed based on the problems identified in context to opening of
the cafe. The deliverables are also stated in a particular section along with the estimated time to
complete the project is 97 days assuming that it starts on 05 February 2018. The budget for the
project is estimated at £67,260.00. Moreover, the planning for quality management and
mitigation of identified risks has also been proposed. The theoretical context is discussed to
analyze the competitive advantage using Porters’ theory and PESTLE analysis has been
performed to reflect on success of the project.

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Table of Contents
1. Contents.......................................................................................................................................3
1.1 Background............................................................................................................................3
1.2 History...................................................................................................................................3
1.3 Requirements.........................................................................................................................4
1.4 Solution..................................................................................................................................4
2. Proposal.......................................................................................................................................4
2.1 Aims and Objectives..............................................................................................................4
2.2 Deliverables...........................................................................................................................5
2.3 Timeframe..............................................................................................................................6
2.4 Resources...............................................................................................................................9
2.5 Budget....................................................................................................................................9
2.6 Ownership and progress reporting.......................................................................................11
2.7 Risks....................................................................................................................................11
2.8 Theoretical Context.............................................................................................................13
2.9 PESTLE Analysis................................................................................................................13
2.10 Quality management..........................................................................................................15
2.11 Success criteria..................................................................................................................15
2.12 Implications.......................................................................................................................16
References......................................................................................................................................17
Appendices....................................................................................................................................20
Appendix A – Gantt chart for the project..................................................................................20
Appendix B – Porter’s Competitive Advantage Model.............................................................21

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1. Contents
1.1 Background
This project is based on opening of a café “Coffee Klatsch” in the near future that has
been decided by two friends Tanya and Kylie. Presently, Tanya is a student at LSBU enrolled in
Accounting and Finance course and also she is experienced in administrative and customer
management due to her work as Hotel Controller. Kylie has been working as Head Barista at
BBC Club situated in Portland place for several years. Hence, Kylie will be responsible for
managing daily operations at the café in context to production as well as customer service. Tanya
shall be responsible for managing the administrative as well as accounting aspects in context to
the business. The café will be setup in a central location within close proximity of office
buildings such that there is adequate availability of public transport. The vision of the café will
be to offer the customers with high quality coffee than coffee retailer chains like Costa or
Starbucks.

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1.2 History
The focus of the café is to provide delivery of high quality coffee along with food items
in a timely as well as friendly manner. It has been decided that three people that is Kylie along
with two other employees will be working in the café. The setup of the café will be unlike the
other coffee chains that is there will be two counters. One counter will be dedicated for taking
orders allocated to one member and the other counter will be for service with two employees.
The decision has been made that the price for coffee will be same as that offered by other coffee
chains but with high quality. Kylie will be involved with quality control as it is essential for the
business. A loan application has been put forwarded to the funding provider however Tanya and
Kylie have not received any feedback so they have not committed to any contract.
1.3 Requirements
The major requirement of this project is to setup a café in central location of London such
that it is close to offices as well as there is availability of public transport. The loan application
for this project has been forwarded and the location has not been acquired. Hence, another
requirement of this project is funding and acquisition of a place in areas such as Borough Rd or
Finsbury Circus. Further, the focus of Tanya and Kylie is to start with one outlet and expand in
future to open a chain of cafes at posh locations. Despite of loan application by Tanya and Kylie,
they have decided to explore more opportunities for acquiring funding and improving their
business plan.
1.4 Solution
The plan for execution could be implemented within the business plan so that the
investors can get an insight into overall project. The budgeting and duration required for the
project should be presented in a well-organized manner. The costs for material and resources

5BUSINESS PROJECT MANAGEMENT
have also to be elaborated along with profitability that will be gained from the project. This will
eventually attract more potential investors as they will have a share over the same profitability
gained from the project.
2. Proposal
2.1 Aims
The aim of this project is to open a café in the central location of London to provide the
customers with high quality coffee along with food items in a timely and friendly manner. The
focus of this project is on planning the execution along with analysis of risks and budgeting so
that the café can be setup successfully.
From the analysis of requirements, the objectives of the project are illustrated as below:
 To setup a café in the posh area of central location adjacent to offices and proper
availability of public transport.
 To provide high quality coffee as well as food items at the same price like that of
renowned coffee chains such as Costa or Starbucks.
 To start with one outlet and develop a strong brand image for expansion in future.
 To focus on controlling of quality, providing quick service along with maintaining
consistency.
 To provide a friendly environment to the customers while they have their morning
or evening meal.
2.2 Deliverables
The deliverables that will be offered by the project in context to the provided case study
are illustrated as below:

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 An environment friendly atmosphere for the customers so that they often visit the
café to spend their leisure time or just to enjoy their meal.
 Interior design of the café and menu for breakfast or lunch with different varieties
of black and normal coffee.
 Materials for advertisement of the coffee shop on a monthly basis in various local
publications.
Often, project deliverables consist of rational material that is collected in a concrete
method. Sometimes, however, they are consumer goods. For example, Tanya and Kylie might
hire an interior design firm to design and produce custom chairs for its café shop.
In deliverables process it can be identify Internal and External Stakeholders. The
customers are called an external stakeholder for the reason that they receive the deliverables. In
other cases, the person receiving the deliverables is a member employee, also called an internal
stakeholder. (The Management of Change, handout 2018).
When you give project deliverables to an external stakeholder, it is usually because you
have completed the project and are delivering the items you have been contracted to produce.
When you give project deliverables to an internal stakeholder, it is usually because your
employee needs the products to complete her work.
2.3 Timeframe
Planning is an essential factor for successful completion of a project within estimated
time and budget. The plan that has been developed for accomplishment of the project to setup a
café in central location of London is illustrated as below:
Task Name Duration Start Finish Predecessors Resource

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Names
Coffee Klatsch Café
Opening Project 97 days Mon 05-
02-18
Tue 19-06-
18
Feasibility Analysis 22 days Mon 05-
02-18
Tue 06-03-
18
Project Startup meeting 2 days Mon 05-
02-18
Tue 06-02-
18
Stakeholder Analysis 1 day Wed 07-
02-18
Wed 07-
02-18 2
Visiting the Site 3 days Thu 08-02-
18
Mon 12-
02-18 2,3 Kylie, Project
Manager, Tanya
Reviewing the Site 4 days Thu 01-03-
18
Tue 06-03-
18 4
Kylie, Project
Manager,
Project Sponsor,
Tanya
Development of Project
Charter 21 days Fri 09-02-
18
Fri 09-03-
18
Outlining the project
scope and Objectives 2 days Fri 09-02-
18
Mon 12-
02-18 2
Project
Manager,
Project
Executive
Evaluation of the benefits 3 days Tue 13-02-
18
Thu 15-02-
18 7,4
Project
Coordinator,
Project Manager
Analysis of risks 3 days Fri 16-02-
18
Tue 20-02-
18 8,7
Project
Executive,
Project Manager
Determining measures for
risk management 2 days Wed 21-
02-18
Thu 22-02-
18 9
Project
Coordinator,
Project Manager
Identifying the constraints 2 days Fri 23-02-
18
Mon 26-
02-18 7,10 Project Manager
Estimating the cost and
project budget 2 days Tue 27-02-
18
Wed 28-
02-18 11,7,8
Kylie, Project
Sponsor, Tanya,
Financial
Analyst
Progress reporting 4 days Thu 01-03-
18
Tue 06-03-
18 12
Project
Coordinator,
Project
Executive
Arrange Stakeholder
meeting 2 days Wed 07-
03-18
Thu 08-03-
18 13
Project
Coordinator,
Project
Executive

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Approval of project
charter 1 day Fri 09-03-
18
Fri 09-03-
18 14
Project
Manager,
Project Sponsor
Development phase 39 days Mon 12-
03-18
Thu 03-
05-18
Designing the process 5 days Mon 12-
03-18
Fri 16-03-
18 15,9,14 Kylie, Project
Manager, Tanya
Designing of menu 4 days Mon 19-
03-18
Thu 22-03-
18 17
Kylie, Project
Executive,
Tanya
Designing the structure 7 days Fri 23-03-
18
Mon 02-
04-18 18
Kylie, Project
Executive,
Tanya
Development of risk
management plan 3 days Tue 03-04-
18
Thu 05-04-
18 19
Project
Executive,
Project Manager
Development of
communication plan 2 days Fri 06-04-
18
Mon 09-
04-18 20,19
Project
Coordinator,
Project Manager
Procurement of equipment
and materials 10 days Tue 10-04-
18
Mon 23-
04-18 21,19
Decoration
equipment[1],
Decoration
materials[1],
Kylie,
Suppliers,
Tanya
Designing of materials 8 days Tue 24-04-
18
Thu 03-05-
18 22
Decoration
materials[1],
Furniture[1],
Kylie, Tanya
Implementation phase 33 days Fri 04-05-
18
Tue 19-06-
18
Setup of furniture and
equipment 4 days Fri 04-05-
18
Wed 09-
05-18 23,22
Kylie, Project
Coordinator,
Tanya
Recruitment of staffs 12 days Thu 10-05-
18
Fri 25-05-
18 25,17
Kylie, Project
Executive,
Tanya
Designing the interior 14 days Mon 28-
05-18
Thu 14-06-
18 26,23
Decoration
equipment[1],
Decoration
materials[1],
Project
Executive

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Allocation of staffs in
workplaces 3 days Fri 15-06-
18
Tue 19-06-
18 27,26
Kylie, Project
Coordinator,
Tanya
Printing of materials 6 days Mon 28-
05-18
Mon 04-
06-18 23
Decoration
materials[1],
Kylie, Tanya
Project closeout 5 days Tue 05-06-
18
Mon 11-
06-18
Opening of the café 1 day Tue 05-06-
18
Tue 05-06-
18 29
Kylie, Project
Manager,
Project Sponsor,
Tanya
Lessons Learnt and
project report documentation 2 days Wed 06-
06-18
Thu 07-06-
18 31 Kylie, Project
Manager, Tanya
Feedback from
stakeholders 1 day Fri 08-06-
18
Fri 08-06-
18 32 Kylie, Project
Manager, Tanya
Final sign-off 1 day Mon 11-
06-18
Mon 11-
06-18 33 Kylie, Project
Sponsor, Tanya
2.4 Resources
Resource is an essential element that has to be allocated properly according to their skills
and expertise to required activities for successful execution of a project (Leading People
Resource Management, 2008). The resources in context to this project comprises of human
resource as well as the required materials or information technology (IT). The resources that are
required for completion of this particular project to setup the café is presented as below:
Resource Name Type Initials Max. Units Std. Rate
Project Manager Work P 100% £35.00/hr
Kylie Work K 100% £15.00/hr
Tanya Work T 100% £15.00/hr
Project Sponsor Work P 100% £25.00/hr
Financial Analyst Work F 100% £30.00/hr
Project Executive Work P 100% £20.00/hr
Project Coordinator Work P 100% £20.00/hr
Suppliers Work S 100% £15.00/hr
Furniture Material F £15,000.00
Decoration equipment Material D £2,690.00

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Decoration materials Material D £1,250.00
2.5 Budget
Managing Project cost involves implicates to set up the total cost of the project, securing
a budget and then to be sure that it is carried within that agreed budget. It relies on other planning
process like scope management and resources allocation being done successfully (Managing the
Project Budget, not dated).
The required budget for the entire project has been calculated as £67,260.00 which
comprises of both labor costs and materials cost. The total budget has been calculated by totaling
of the costs associated with the different activities required to accomplish the project. The
required budget for setup of the café is illustrated as below:
Task Name Cost
Coffee Klatsch Café Opening Project £67,260.00
Feasibility Analysis £4,440.00
Project Startup meeting £0.00
Stakeholder Analysis £0.00
Visiting the Site £1,560.00
Reviewing the Site £2,880.00
Development of Project Charter £8,720.00
Outlining the project scope and Objectives £880.00
Evaluation of the benefits £1,320.00
Analysis of risks £1,320.00
Determining measures for risk management £880.00
Identifying the constraints £560.00
Estimating the cost and project budget £1,360.00
Progress reporting £1,280.00
Arrange Stakeholder meeting £640.00
Approval of project charter £480.00
Development phase £34,910.00
Designing the process £2,600.00
Designing of menu £1,600.00
Designing the structure £2,800.00

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Development of risk management plan £1,320.00
Development of communication plan £880.00
Procurement of equipment and materials £7,540.00
Designing of materials £18,170.00
Implementation phase £16,470.00
Setup of furniture and equipment £1,600.00
Recruitment of staffs £4,800.00
Designing the interior £6,180.00
Allocation of staffs in workplaces £1,200.00
Printing of materials £2,690.00
Project closeout £2,720.00
Opening of the café £720.00
Lessons Learnt and project report documentation £1,040.00
Feedback from stakeholders £520.00
Final sign-off £440.00
2.6 Ownership and progress reporting
The process that will be followed for reporting progress of the project is illustrated as
below:
Activity Frequency Communication Method Ownership Responsible
Allocation of duties to
resources
Weekly Team meetings and Email Project
Coordinator
Project
Manager
Completion of activities Monthly Formal documentation and
conference calls or email
Tanya and
Kylie
Project
Manager
Issues or conflicts and
progress
Daily Team meetings Tanya and
Kylie
Project
Manager
Budgetary requirements
of the project
Weekly Meetings and face to face
communication
Project
Sponsor
Financial
Analyst
Evaluation of resources
associated with the
project
Monthly Email and formal
documentation
Project
Coordinator
Project
Manager

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2.7 Risks
Ris
k ID
Risk
I
dentification
Evaluation of Risk Risk Analysis Mitigation actions
Likelihood Impact
R01 Inadequate
budget of
funding for
the project
Adequate finding may
not be available to
execute the project.
Likely Major Sufficient funds should
be arranged by the
business owners prior to
planning or opening of
the café. Proper
budgeting is an element
to ensure success of a
project.
R02 Improper
staffing or
lack of
resources
The running of the café
may require longer
work durations for the
available staffs. So
they may be exhausted
and it will eventually
affect the business.
Likely Minor There must allocation of
additional staffs during
busier times which may
demand for more
workload.
R03 Selection of
location
The opening of a café
in the suburbs or
places with fewer
crowds will hamper
Unlikely Moderate The selection of
location has to be done
by analyzing the
possible opportunities

13BUSINESS PROJECT MANAGEMENT
the business. and facilities in the area
(Gido, Clements and
Clements 2014). The
café should be opened
in a close proximity to
offices, school or
college and such that
there is availability of
public transport.
R04 Improper
scheduling
There may be a
possibility that an
activity is not
completed in estimated
time or duration
(Martinelli and
Milosevic 2016). This
will affect severely and
delay the entire
project.
Likely Minor The schedule for the
project have to be
planned and developed
by considering the
possible constraints that
may occur during
execution.
R05 Lack of
adherence to
regulatory
requirements
The café has not been
setup by following the
local regulations in
context to commercial
developments. There is
lack of regulations for
safety and security in
Unlikely Moderate Proper local regulations
have to be taken into
consideration (Nicholas
and Steyn 2017). The
café have to be
developed with proper
safety and security

14BUSINESS PROJECT MANAGEMENT
the café. regulations.
2.8 Theoretical Context
According to the competitive advantage model of Porter (1985), there are two ways of
gaining competitive advantage over the competitors that is cost or quality. The cost in context to
this particular organization is price of the coffee that will be offered by the café. The vision of
the café is to provide high quality coffee as well as food items at the same price as that of other
coffee chains. Hence, the organization has chosen quality as their main factor for maintaining
their competitive advantage and developing a brand image of the café.
2.9 PESTLE Analysis
The PESTLE analysis that has been conducted on this particular project to setup the café
has been categorized as below:
Political factors
 Increase in business participation
 Employment laws
 Tax policies
Economic factors
 Taxation
 Sudden inflation on price of coffee.
 Wealth of customers
 Changes in fee by competitors

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Socio/Cultural factors
 Lack of education for required skills and expertise
 Trends in lifestyle
 Brand image
Technological factors
 Advertisement of the café with the help of social media.
Legal factors
 Follow up of correct regulations for employment
 Maintain the safety and security regulations
Environmental factors
 Maintain clean surrounding and adherence to anti-litter laws
 Proper measures for waste management
2.10 Quality management
To focus on controlling of quality to provide fast service, along with maintaining
consistency.
Professional bureaucracy has the operating core as its key part, uses standardization of
skills as its main coordinating mechanism, and employs vertical and horizontal decentralization.
The organization is relatively formalized but decentralized to provide autonomy to professionals.
Highly trained professionals provide non routine services to clients. Top management is small;
there are few middle managers; and the structure is usually undersized. Nevertheless, the support
staff is normally huge to provide clerical and maintenance support for the professional operating

16BUSINESS PROJECT MANAGEMENT
core. The goals of professional bureaucracies are to innovate and provide high-quality services
(Mintzberg, 1979).
Hence, she has to make use of various observational techniques for fulfilling the quality
requirements as it is central to the business. There is also a need to implement strong
professional culture which will in turn lead to enhancements in the experience of customers (Mir
and Pinnington 2014). Kylie should analyze and evaluate the products or services that will be
offered by the café to check that those meet the requirements of customers.
According to Deming, W.E (1986), to achieve the best quality will be needed to create
constancy of purpose toward improvement of product and serviced. Constantly improve the
system of production and service.
2.11 Success criteria
The success criteria for this particular project on setup of café “Coffee Klatsch” is
presented as below:
 The team members associated with the project has the required skills and
expertise.
 The project is completed within the estimated time and budget.
 The project has been completed according to the specifications and required
objectives (Tooand Weaver 2014).
 Positive feedback acquired from the customers in terms of quality and service of
the café.

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2.12 Implications
The proposal to setup a café illustrates that proper allocation of budget and resources is
an essential element for success of the project. The proposed plan for the project shows that it
will require 97 days to complete considering the beginning is on 05 February 2018. The costs
associated with resources and materials shows that a budget of £67,260.00 is required for
completion of the project. The analysis has also been done that Kylie have to be aware of the
tools and techniques that can be used for quality control of the business.

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References
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Appendices
Appendix A – Gantt chart for the project