EXERCISE 1

1) Risk Management
- Entrepreneurs can identify and evaluate potential risks and develop mitigation
strategies through developing a business plan.
- A business plan reduces risks and improves the probability of long-term
success.

2) To convince relevant parties for funding acquisition

- A well-written business plan is typically required when seeking funding from
investors or financiers.
- It increases chances of procuring funding by bolstering the entrepreneur’s
credibility and demonstrating the potential return on investment.

3) Guideline for Operational Direction

- A business plan acts as a road map for the company’s ongoing activities.
- The strategy aids business owners on focusing, prioritising activities, and
tracking their success.
EXERCISE 2

⦁ INTRODUCTION
- Name of the firm: The Cooking House Café
- Type of business: Café with a focus on culinary experiences and recipe-sharing community
- Industry profile: Food and beverage
- Location: Lot 397 & 398, Jalan Segemal, Kampung Pokok Keras, 13400 Butterworth, Pulau
Pinang, Malaysia
- Criteria considered for venture: Unique culinary experiences, strategic location, absence of
similar cafes in the area
- Prospects: To become the leading destination for food lovers and a hub for a recipe-
sharing community

⦁ PURPOSE
- Objective: To establish The Cooking House Café as the preferred cafe in Malaysia for a
delightful culinary experience
- Intent of the business plan: To secure funding, provide information, and serve as a guide
for running the business

⦁ COMPANY BACKGROUND
- Name: The Cooking House Café
- Business Address: Lot 397 & 398, Jalan Segemal, Kampung Pokok Keras, 13400
Butterworth, Pulau Pinang, Malaysia
- Activities: Culinary experiences, recipe-sharing, cafe services
- Date of Registration: October 10, 2023
- Registration Numbers: Registered with SSM (Suruhanjaya Syarikat Malaysia)

⦁ LOCATION OF THE BUSINESS

- Physical location: Lot 397 & 398, Jalan Segemal, Kampung Pokok Keras, 13400
Butterworth, Pulau Pinang, Malaysia

⦁ ADMINISTRATIVE PLAN
- Introduction to the organisation:
Vision: To be the leading destination for food lovers and welcoming those who wish to be a
part of our recipe-sharing community.
Mission: To be the first choice cafe in Malaysia which offering a delightful culinary
experience.
- Schedule of Tasks and Responsibilities:
Owner
• Location and Space Selection
• Overall business strategy (branding, pricing, and target market.)
• Reviews financial statements and makes high-level financial decisions
• Identifying and managing risks
Cafe Manager
• Managing the daily operations of a cafe
• Ensure excellent customer service
• Health and Safety Compliance
Front of House Manager
• Overseeing staff
• Ensuring customers receive quality front of house service
• Maintaining order and cleanliness
Inventory and Supply Manager
• Plan and coordinate the ordering of supplies to meet the cafe's demand
• Ensure that all incoming inventory meets quality standards and safety regulations
• Develop strategies to minimize food waste
Human Resources Manager
• Creating hiring plans for staff
• Develop and implement employee training programs
• Ensuring compliance with labour laws and regulations
Head Chef
• Menu Planning
• Controlling and directing the food preparation process
• Overseeing kitchen staff
• Ensuring the quality of food items
Assistance Chef
• Assist the head chef as necessary.
• Prepare all ingredients for the daily menu
• Collaborate with the Head Chef to create and update the cafe's menu.
Event Coordinator
• Sourcing, planning, and executing specials events.
• Promote the cafe's event.
Barista
• Prepare and serve high-quality coffee and beverages to customers.
• Clean work areas, coffee machines, equipment, and tables
Waiter
• Welcoming and seating customers
• Take and serve food/drinks orders.
Cashier
• Managing financial transactions
• Ensuring smooth and accurate payment processes

⦁ MARKETING PLAN
- Product or Service Offered: Various Western dishes, beverages, and desserts
- Target Market: Cooking enthusiasts, food lovers, local community
- Sales Forecast: - RM 25123.00
- Marketing Strategy: Utilising Facebook and Instagram for advertising

⦁ OPERATIONS PLAN
- Process Flow Chart: -

- Material Requirements: -
Yellow Onion
Potato
Button Mushroom
Oyster Mushroom
Chicken Bacon
Butter
Sugar
Salt
Soy Sauce
Black Pepper
- Manpower Requirements: -
Café Manager
Front of House Manager
Inventory and Supply Manager
Human Resources Manager
Head Chef
Assistance Chef
Event Coordinator
Barista
Waiter
Cashier
- Operations Layout Plan: -

- Location of Operation: - Lot 397 & 398, Jalan Segemal, Kampung Pokok Keras,
13400 Butterworth, Pulau Pinang.

⦁ CONCLUSIONS
- Summary of important elements and the main goal of the business plan: To establish The
Cooking House Café as a leading destination for food lovers and a recipe-sharing
community hub. Information on financial aspects and specific conclusions -
 Items Cost (RM)

Shampoo 1140

Polishing Material 1725

Brushes and sponges 750

Total 3615
Direct Variable Cost/ Material Cost

Items Cost (RM)

Workers salary 11520

Direct Labour Cost/Direct variable labour cost

Items Cost (RM)

Rent 900

Utilities 1800

Depreciation 1050

Petty Expenses 450

Supervisor salary 1500

Total 5700
Fixed Cost

Items Cost (RM)

Variable Cost/ Material Cost 3615

Labour Cost 11520

Fixed Cost 5700

Total 20835
Overall Total Cost
Cost Per Unit
RM 3615+ RM 11520+ RM 5700
300
¿ RM 69.45
Break Even Point (Quantity) : Break Even Point (RM) :
Total Cost Margin
Variable Cost per Unit
Total Variable Cost per Month(RM ) = Total Sales per Month (RM) –
¿
Quantity per Month(Units) Total Variable Cost per Month (RM)
RM 3615+ RM 11520
= 300
= ( RM 80 ×300 )−( RM 3615+ RM 11520 )
= RM 8865.00
= RM 50.45

Contribution Margin Ratio

Break Even Point ( Quantity ) Total Cost Margin (RM )
¿ ¿
¿ Total ¿ Cost per Month ( RM ) Total Sales per Month(RM )
( Selling Price−Variable Cost per Unit )
RM 8865
RM 5700 =
= RM 80−RM 50.45 RM 24000
= 0.3694
= 192.89 units

Break Even Point ( RM )

¿ Total ¿ Cost per Month(RM ) ¿
Contribution Margin Ratio
RM 5700
=
0.3694
= RM 15430.43