Автор: Пользователь скрыл имя, 07 Февраля 2013 в 14:52, доклад
Burger World LLC is a fast food retailer which is engaged in producing and selling traditional and western fast foods in Oloy Bazaar are. It produces both fried and baked products and sell them in the Oloy Bazaar area.
Summary Business Plan
EXECUTIVE SUMMARY
Burger World LLC is a fast food retailer which is engaged in producing and selling traditional and western fast foods in Oloy Bazaar are. It produces both fried and baked products and sell them in the Oloy Bazaar area.
In increasing demand for the fast food market in Uzbekistan, the concerns for hygiene and high quality fast foods are the big issue. Burger World LLC is expected to take an account of consumer healthy food choices, packaging requirements and both traditional and western food demands. The company want to approach fast food market as a high standard food supplier.
The following business plan is conducted in order to find the viability and profitability of Burger World LLC company. The business funding came from two sources: owner’s equity and bank loans. These investments allows the company to buy necessary equipments and develop the initial inventory for operating expenses.
COMPANY SUMMARY
The Burger World is Limited Liability Company. The company involves in street fast food small restraunts in Oloy bazaar region. It prioritizes the develop the fast food services in this region where there is a high population turnover due to closeness to the city center and popularity of the bazaar services The reason for establishing limited liability company is that it limits company’s liabilities to owners in terms of the company bankruptcy and its debts, so no owner will be personally liable for any company’s debt. Moreover, establishment of LLC, gives the opportunity not to be limited in the form of operation, as in case with private entrepreneur. It means that we can do different activities and businesses.
The organization is headed, managed and controlled by the owner (Appendix 2, Chart 1). Moreover, the accountant is responsible for company’s financial performance and employee salaries. The accountant’s responsibility is further extended to administering the work performance in the organization. The lower bottom of the organizational hierarchy consists total of 6 employees who are hired full time for the organization.
The product portfolio of the Burger World LLC is highly diffferentiated. The products are typically divided into two categories: baked and fried (Appendix 2, Table 1). The company aims to provide fast and snack like food products in the bazaar area.
Burger World LLC identified start-up costs and requirement for its business activities. According to this the star-up expenses totalled 6,970,000 soums (Appendix 2, Table 2). Moreover, the 7,000,000 liquid assets are required in order to purchase raw materials for the products. This expenses, in turn, are covered by owner’s funding the business (5,000,000 soums) and short-term bank loans (8,970,000 soums) with an interest rate of 14% for one year payback period. The start-up budget are described in the following table.
Mission Statement
To be #1 in fast food supplier in Oloy Bazaar area and maximize the company sales by providing product differentiation in traditional and western style
Company SWOT
Strengths
|
Weaknesses
|
Opportunities
|
Threats
|
Objectives
MARKETING PLAN
Marketing segmentation
Takeaway fast food service can segment its market into two major group of consumers with distinctive buying behavior. This may include the following:
Segment 1 |
Youth |
Segment 2 |
Family |
While takeaway fast food service segments its market into two consumer groups, it is prioritized to target youth market. This is because youth aged 16-25 years are more likely to socialize more often than other group of consumers. The core benefit they receive from visiting takeaway fast food service is convenient service which delivers high quality and unique taste fast foods that creates feelings of pleasure and enjoyment.
Market demand (Survey results)
Market positioning
Market positioning highly depends on the differential advantage that company promises to each segment and the level of effectiveness of those activities. The strategic capability of the company which outlined in the form of SWOT offers market segment developed fast food services which satisfies consumer daily lunch needs. The company wants to see itself as better service and product quality in consumer minds by providing high quality and healthy food products and maintaining maximum hygience and packaging control. This, in turn, will help to develop consumer brand identity and loyalty.
Products
The product portfolio of takeaway fast food service is quite identical to its competitors in the market. The fast food products such as lavash, hamburger, cheeseburger, hot dog and pizzas will be produced. However, in order to differentiate the products from those of competitors following product development and service delivery systems are launched:
Advertising
Buger World LLC uses different formats of printed advertisement, such as, billboard advertisement (e.g. near universities and schools), flyers (distributed in supermarkets), newspaper advertisements, and advertisements in metro. Printed ads are considered as effective as TV ads in Uzbekistan. Moreover, it is more cost effective type of media advertising than TV. Audience seeing our printed ads holds a higher value and respect in Buger World LLC brand. So, communicating the message in four types of printed ads will facilitate to reach the target audience efficiently.
PERSONNEL PLAN
The Burger World LLC staff consists of two chief cookers, two sellers, one delivery men and cleaner, and one accountant (Appendix 2, Table 3). The salaries are allocated according to the degree of responsibilities of each personnel to the organizational performance. The accountant gets the highest salary in the organization (282,000 soums) because of full responsibility to organizational as well as work operation performance.
Chart 1. Organizational chart
Chief cooker 1 is engaged in making baked products whose salary are based on the demand for the product in the market. The level of the wage tends to fluctuate with respect to the market demand. Similarly, chief cooker 2’s salary has the same characteristics who will be involved in making fried products. However, both cookers wages are fixed in monthly basis which are not influenced by the short-term demand fluctuations (see table below). Seller 1 is engaged in selling fried foods which includes of the majority of product portfolio of the Burger World LLC but units sales of fried products are less (13,500 units) compared to baked products (16,500). Both seller 1 and seller 2 monthly wages consists of variable and fixed portion. Variable portion of seller 1 includes sales commission for units of fried products sold (67,500 soums) and fixed portion of 50,000 soums are awarded which altogether seller 1 gets 117,500 soums. The total unit sales of the baked food for the first month is 16,500 units which implies that seller 2 will get commission of 5 sum per unit of products sold (82,500 soums). In addition, the total salary of seller 2 also constitutes additional fixed wage of 50,000 soums: altogether seller 2 is estimated to get 132,500 soums per month.
FINANCIAL PLAN
Cost of Production: Direct Materials cost (monthly)
The product materia cost consists of two components: direct materials and indirect materials. Direct material costs are associated with cost of ingredients purhcases for products. It varies proportionally with total unit sales. Direct material costs, as the total product sales is estimated 30,000 units for the first month (January 1, 2012), is totalled 2,820,585 soums (Appendix 2, Table 4). However, the quaterly direct costs for 90,000 units is 8,461,755 soums
Indirect Materials cost
However, in calculation of the total material costs for the product, indirect material costs also has significant value. The indirect cost expenses for the first month totalled 232,000 soums and for the first quarter is 696,000 soums (Appendix 2, Table 5). The indirect material costs include napkins (purchased in boxes) for the every product purchases, plastic bags on consumer demand and paper packages for baked products.
Total materials costs for the product totalled 3,052,585. It is the sum of direct and indirect materials cost which is shown below:
Total materials cost= direct material cost+indirect materials cost
Total material cost= 2,820,585+232,000=3,052,585 soums for the first month
Total material cost=8,461,755+696,000=9,157,
Overhead costs
Monthly overhead costs include electricity and water bills which constitute majority of the overhead expenses. Moreover, heating and conditioning expenses varies in seasonal basis, which is also significant value in overhead expenses. The total overhead expenses for the first month of the Burger World LLC operation becomes 87,600 soums (Appendix 2, Table 6).
Labor Cost
Total labor costs became 1,264,000 soums for the first month (Appendix 2, Table 3) and for the first quarter is 3,792,000 soums Direct labor costs are associated with making the products ready to purchase for the consumers. The labor costs incurred in producing the fast foods such as chief cookers salaries, sellers’ sales commissions and delivery men salaries are considered as direct labor costs. Moreover, cleaner’s and accountant’s salaries are indirect labor costs because they do not play a key role in product operations.
Fixture costs: Fixed cost for the first year (January 1, 2012)
The fixed costs for the first year for starting the business totalled 6,970,000 (Appendix 2, Table 7). The majority of fixed expenses are related to buying necessary equipments for cooking and modelling the fast food sale place.
Sales forecast
The unit sales forecast for the first month is estimated 30,000 units (Appendix 2, Table 8). The estimated total sales for the respective month is 5,835,000 soums and quaterly sales will be 17,505,000 soums. Total sales is expected to increase 5% quaterly basis throughout the year.
Profit and Loss Account
Burger World LLC net profit for the first quarter is estimated 3,286,184 soums (Appendix 2, Table 9). Moreover, interest expenses for the borrowed loans from the bank for the first quarter is totalled 313,950 soums (14% annually, 1.17% monthly). Income tax by the government with annual 10% is totalled 92,311 soums. Total operating expenses such as rent fees, utilities etc totalled 5,350,800 soums which is estimated to rise for the respective months.
Cash Flow Statement
The cash flow for the first quarter is estimated 6,074,745 soums. However, cash balance after the first quarter will be increased to 8,074,745 soums (Appendix 2, Table 10). The Burger World LLC company additional cash spending on maintenance totalled 30,000 soums. This may include the electrician fees for fixing the electrical cords, buying additional cleaning things and tablecloths. Moreover, principal payment for the bank short-term loans totalled 2,242,500 soums for the respective four quarters. Finally, the first quarter cash inflow became 6,074,745 soums from operations. However, cash balance after in fourth quarter, 2013 is estimated to be 71,227,103 soums.
Sensitivity Analysis
Burger World LLC company products are highly sensitive to direct material prices. If the flour, meat and other ingridients costs rises in the future, then cost of producting items will be higher. So if it is expected meat price increase to 4,900, butter price rise up to 42,000 and flour price goes up to 500 soums per kilo then cost of goods sold will rise up to 2,919,886 soums compared to 2,820,585 soums (Appendix 2, Table 11). However, the net profit for the first month after the price increase will fall to 1,017,435 soums compared to 1,115,908 which is about 100,000 soums less profits will be gained. In fact, 9% loss on net profit incurred under unfavorable condition.
Bibliography
APPENDIX 1
Table 1. Product Portfolio
Item |
Category |
Type of preparation | |
1 |
Hot dog |
Traditional food (exist in market) |
Fried |
2 |
Pancake with meat |
Traditional food (exist in market) |
Fried |
3 |
Pancake with sour cream |
Traditional food (exist in market) |
Fried |
4 |
Lavash |
Traditional food (exist in market) |
Fried |
5 |
Doner Kebab |
Traditional food (exist in market) |
Fried |
6 |
Patty with rice and egg |
Traditional food (exist in market) |
Fried |
7 |
Cheburek with meat |
Traditional food (exist in market) |
Fried |
8 |
Brownies |
Western food (new in market) |
Baked |
9 |
Cheseburger |
Traditional food (exist in market) |
Baked |
10 |
Hamburger |
Traditional food (exist in market) |
Baked |
11 |
Baked hot dog |
Traditional food (exist in market) |
Baked |
12 |
Somsa with meat |
Western food (new in market) |
Baked |
13 |
Turk somsa |
Western food (new in market) |
Baked |
Table 2. Start-up budget
Start-up expenses |
Total |
Funding |
Total |
Oven |
2,000,000 |
Owners equity |
5000000 |
Deep-fryer |
1,200,000 |
||
Fridge |
1,400,000 |
Liabilities |
|
table (for cooking) |
600,000 |
Accounts payable |
8,970,000 |
Tea pot |
100,000 |
||
cooker equipment |
100,000 |
||
Table for sitting space |
750,000 |
||
Chairs |
720,000 |
||
Cleaning expenses |
100,000 |
||
Rent expenses |
200,000 |
||
Total |
6,970,000 |
||
Start-up assets needed |
|||
Cash balance on starting date |
5000000 |
||
Start-up inventory |
2000000 |
||
Total Assets |
7000000 |
||
Total Requirements |
13,970,000 |
Информация о работе Summary Business Plan (Fast Food, Ibragim)