Final Project BY REHAN
Final Project BY REHAN
Submitted By
Umair Ali
Roll no:20030920-012
Submitted To
Prof. Hafiz Muhammad RaheelArif
Submission Date
_____________
Department
Business Administration
Govt. Murray Graduate College Sialkot
1
2
3
Dedication
we dedicated this task to our parents who supported us in every way to reach
this stage otherwise without their help it would be impossible. Then to our
teachers who polished our skillset & guided us to accomplish the task. &also
dedicate to the friends who were always there & stood by us throughout.
4
ACKNOWLEDGMENT
First of all,we are thankful to ALLAH Almighty&then it is our great privilege to thanks our
Head of Department,Prof. Hafiz Muhammad Raheel Arif for constantly guiding us
throughout the project,&allowed us to do this project.&then we are much obliged to all those
who guide us for completing thisproject.We must mention our heart gratitude towards our
parents who supported us to go ahead with the project.
5
Declaration
We hereby declare that we developed this project & this report entirely based on
our efforts made under the sincere guidance of our project supervisor. We
further declare that the title project & all associated documents, reports are
submitted as partial requirements for the degree of “Bachelor in Business
Administration”.
6
Table of Contents
Executive summary 13
1.0 Business description 14
1.2 Business opportunity 15
1.2.1 Preparation 15
1.2.2 Incubation 15
1.2.3 Insight 15
1.2.4 Evaluation 15
1.2.5 Implementation 16
1.3 Vision 16
1.4 Mission 16
1.5 Business Objectives 16
1.6 Key to the business success factor 16
1.7 Size of business 17
1.8 Competitive advantage 17
1.9 Business goals 17
2.0 Management description 18
2.1 Importance of business 19
2.2 Strategy 19
2.2.1 Complementary pricing 19
2.2.2 Customer loyalty discount 19
2.2.3 Internet access 19
2.2.4 Price bundling 20
2.3 Size 20
2.4 Organizational life cycle 20
2.5 Legal structure 20
7
2.6 Partnership business 21
2.7 Business structure 21
8
2.8 Business hierarchy 21
2.9 Slogan 21
3.0 Feasibility analysis 22
4.0 Environmental & competitive analysis 23
4.1 New Entrants threats 23
4.2 Supplier bargaining power 23
4.3 Customer bargaining power 23
4.4 Threats of substitutes 24
4.5 Competitive Rivalry in the industry 24
5.0 Operational plan 25
5.1.1 Capacity of Café 25
5.1.2 Type of customer its serves 25
5.2 Layout 25
5.3 Inventory management 26
5.3.1 A mix of the breath of products 26
5.3.2 Appropriate level of inventory 26
6 Strategic plan 27
6.1 External Factor Evaluation Matrix 27
6.1.1 Compile key external factors 27
6.1.2 Assign weights 27
6.1.3 Assign Ratings 27
6.1.4 Multiply & sum 27
9
6.2 Internal factor Evaluation Matrix 28
6.2.1 Compile internal factors 28
6.2.2 Assign weights 28
6.2.3 Assign ratings 28
6.2.4 Multiply & sum 28
6.3 SWOT analysis 29
6.3.1 TOWS analysis 29
6.3.2 Strength Opportunities Strategies 29
6.3.3 WO strategies 29
6.3.4 ST strategies 29
6.3.5 WT strategies 29
6.4 SPACE Matrix 30
6.4.1 Determine values for dimensions 30
6.4.2 Rate the dimensions 30
6.4.3 Find the average scores of dimensions 30
6.4.4 Add Average scores 30
6.4.5 Plot the scores to graph 30
6.5 Quantitative strategies planning matrix 31
6.5.1 Provide a list of internal & external 31
factors
6.5.2 Identify strategies alternatives 31
10
6.5.3 Assign weights 31
6.5.4 Assign attractiveness scores 31
6.5.5 Calculate total attractiveness scores 31
7.0 Marketing plan 32
7.1 Marketing Objectives 33
7.2 Marketing description 33
7.3 Marketing size 34
7.4 Needs & trends 34
7.5 Environmental Impacts 34
7.6 Climate changing 34
7.7 Market profit potential 35
7.8 Target Market 35
7.9 Market segmentation 36
7.9.1 Demographic segmentation 36
7.9.2 Geographic segmentation 36
7.9.3 Psychographic segmentation 36
7.10 Product positioning 36
7.11 Marketing Objectives 37
7.12 Pricing strategy 37
7.13 Product mix 37
7.14 Place/ Distribution strategy 38
7.15 Promotional strategy 38
11
7.16 Product Description 39
7.17 Marketing Strategies 40
7.17.1 Internet facility 40
7.17.2 Loyalty & incentive programs 40
7.17.3 Promotions & Advertising 40
7.17.4 Digital & social media 40
8.0 Human Resource Management 41
8.1 Staffing Function 41
8.2 Training & Development 41
8.3 Compensation & Benefits 41
8.4 Performance Appraisal 42
8.5 Retention strategies 42
8.5.1 Measure Tenure 42
8.5.2 Eemployee Recognition 42
8.5.3 Cultivating a culture of freedom 42
9.0 Financial plan 43
9.1 Description 43
9.2 Financial Objectives 43
9.3 Source of funds 43
9.4 Revenue Generation 44
9.4.1 Revenues 44
9.4.2 Sales Revrnues 45
12
9.5 Cost of raw material 45
9.6 Capital investment 47
9.7 Payments 48
9.8 Equipment 49
9.9 Advertising cost 50
9.10 Advancd rent 50
9.11 Furniture 51
9.12 Total working cost 51
9.13 Renovation cost 51
9.14 Depreciation 52
9.15 Income statement 53
9.16 Operating Expenses 54
9.17 Balance xeet 55
9.18 Statement of cax flows 56
10.0 Risk Management 58
10.1 Management Risk 58
10.1.1 Train your employees 58
10.1.2 Top into technology 58
10.1.3 Maintain your facilities 58
10.21 Marketing Risk 59
10.3 Operational Risk 59
10.4 Financial Risk 59
13
Executive Summary
DARK NIGHT CAFÉ is located at Shahab Pura right next to University of
Management & Technology. Café Love is proposed to be established at a
location that has a continuous stream of traffic, Convenient parking, & is in
proximity to other businesses. DARK NIGHT Café
willprovideagregarious,warm,&peacefulenvironmentwherethecustomercanrece
ive the best shakes, Coffees, Chicken Sandwiches & Soft drinks with best
Quality Services at reasonable prices. The interior design of the building will
focus on projecting a relaxed atmosphere. DARK NIGHT Café will be divided into
different areas. Some will have tables & chairs, & others will have couches &
chairs, end tables, fast food and drinks, tables, book shelves, filled with books &
magazines. A music system will be installed so that the music & entertainment
can be heard throughout. A large section of table games will be provided. Our
target audience will include everyone who love fast food and drinks especially
the youngsters, students & businessman. DARK NIGHT Café will be operated as
a Partnership. Our advertising strategy will operate through Social media i.e.
Facebook & Instagram. Our vision is to
providethequalityproductsataffordableprice.Ourrestaurantwillbeopenfrom12p.
mto 12a.m. In addition to disclaimer, project cost can vary depending on a
number of factors including monthly rental payments, cost of assets (kitchen,
furniture, & crockery) & hence will also reflects on menu prices. The objective is
to make the business improve progressively, achieving success & continuing to
improve in themarket.
14
CHAPTER 1
THE BUSINESS
BUSINESSDESCRIPTION:
DARK NIGHTCaféis located at shahab Pura right next to University of
Management & Technology. DARK NIGHTCafé will provide a combination of
fabulous food at value pricing,with fun packaging & atmosphere. We will provide
the best services, including the good quality at reasonable prices to our
customers. DARK NIGHTCafé is proposed to be established at a location that has
a continuous stream of traffic, Convenient parking & is in proximately to other
businesses. DARK NIGHTCaféwill provide a gregarious, warm, & peaceful
environment where the customer can receive the variety of fast foods at
reasonable prices. Our Café will also have the internet facility, so the people can
come & enjoy the long hours with friends. We also try to provide various facilities
to our customers, so they can get the best experience & high range of shakes &
coffees. We also provide an attractive place with extended hours & best
15
atmosphere where people feel relaxed
Our mission isto fulfill customers desires & provide best service s that will make
them to repeat good experience at reasonable prices. Once all the plan has been
done, the next step is to develop the different actions that the company has to
carry out to meet the establixed objectives. These actions are based on product,
price, distribution & communication. In addition, the schedule the necessary budget
& the control are establixed for such actions.
BUSINESSOPPORTUNITY:
DARK
NIGHTCaféwillprovideefficientcustomerservice,topqualityproducts,&agreatlocat
ion. DARK NIGHT Café will be the best place for informal business meetings or
for the students tocatch up on university work & can also meet their friends at
one place. DARK NIGHT Café will provide a highly competitive environment, &
also will be the preferred spot for individuals looking to pass the time reading a
book or magazines. New unique products will be offer to the customers which
differentiate the Café from the competitor’s Café. Business opportunity also
means to create an opportunity to introduce a unique product in a fast food
and drinks shop.
Preparation:
Opening a fast food and drinks shop can be extremely profitable. It is also a
reason to start a business. Because in this modern world people want to go at
such places with their family so that they can spend a quality time with them.
Another reason for starting this business because we have interest in opening a
fast food and drinks shop. We have got the idea of opening a Café by visiting
the different fast food shops.
Incubation:
A purchase from a coffee shop is considered a luxury for most people rather
than a necessity. People who like fast food and drinks have the income to
purchase it at least occasionally& have the ability to get to a shop. So, we
decided to plan this business. Then we furnished our idea by visiting different
coffee shop.
Insight:
16
By having the market research & analysis, we came to know about what type
of shakes & coffees customer is more likely todrink.
Evaluation:
After getting an idea we conduct a meeting to further detail the effectiveness &
acceptance.
Implementation:
After considering & evaluating all the possible aspects of a restaurant we
decided to convert this plan into a business.
VISION:
To provide a unique & innovative environment that will differentiate it
from othersCafé.
To provide an invaluable service & quality, that greatly contribute in the
success ofCafé.
To provide the best quality at affordable prices to thecustomers.
MISSION:
We will satisfy our clients by providing them best quality of goods
&services.
We will treat our customers with great respect &honor.
We will try our best to make a DARK NIGHTCaféa unique place where the
customer can socialize with each other in a comfortable &
relaxingenvironment.
BUSINESSOBJECTIVES:
Make DARK NIGHTCafés the number one place for fast food and drinks in
everycity.
Turn in profits from the first month ofoperations.
Make distinctly great coffee & shakes at affordableprices.
Treat our customers & employees with the upmostrespect.
17
KEY TO BUSINESS SUCCESSFACTORS:
18
Createaunique,innovative,entertainingmenuthatwilldifferentiateusfro
mthe rest of thecompetition.
Selltheproductsthatareofthehighestquality,aswellaskeepingthecustom
ers satisfy with all of ourproducts.
Provide 100% satisfaction to our customers & maintaining the level of
excellent services among othercompetitors.
obvious customerservices.
Employee training to insure the best Café preparationtechnique.
SIZE OF THEBUSINESS:
The size of our business is not so huge. It is a small Café at the moment based
only in
Sialkot.WewillprovideourservicesineveryareaaroundSialkot.Thiswouldbetheinitia
l stage of our business. Our business will be a partnerxip. When our Café will
develop in one region, then we will exp& our fast food and drinks shop in
different areas & hopefully one day it will work as on internationallevel.
COMPETITIVEADVANTAGE:
There are some competitors in the area of Sialkot which involves Bites & MAK
Café. They are the great competitors of our fast food and drinks shop. We will
provide the customers some unique products which are not already available in
our competitors fast food and drinks shop. We will provide them best
environment & also the best quality products at affordable prices.
BUSINESS GOALS:
Intheshortgoalsofourbusinessweusethequalityofourservices&productsothatwe
soon become well known by people. To expo. our business on international
level is involved in the longgoals.
19
Chapter 2
Management
Description
This typical hierarchical arrangement shows line of authority, rights & duties of
an organization. Organizational structure determines how the roles, power &
rep different levels of management. A structure depends on organizations
objectives & strategy.
20
IMPORTANCE OF ORGANIZATIONAL DESIGN &STRUCTURE:
Most productivity & performance issues can be attributed to poor
organizational design. Poor organizational design often results in, among other
things, confusion within roles, a lack of coordination among functions, & failure
to xare ideas. A business can have a clear mission, talented people & great
leaders & still not perform well, because of a poor organizational design. To be
effective, the overall organizational design must be aligned with the business
strategy & the market environment in which the business operates. It must also
have the right business control, the right flexibility, the right incentives the right
people & the right resources.
STRATEGY:
No matter what strategy your organization pursues; your structure must
support it to be successful. Work hard to have the best tasting food, & the best
service in town & surrounding services.
Complementarypricing:
Complementary pricing is a strategy where you will be charged at a very low
price, compared to your competitors, for a common item, while raising the price
on other items.
E.g. Burger & Fries.
Customer loyaltydiscounts:
Thisstrategybuildsloyalty&repeatbusinessbyofferingcustomersomethingforfree
or discounts. Loyalty discounts will automatically attract the customers to visit
the Café. Loyalty cards attract the mostcustomers.
InternetAccess:
Internet access is one of the main important facility that will automatically
attract the customers. Because todays customers want to all time in touch with
their family & friends. &sometimes Businessman also conducts their meetings in
21
Café because of calm & peaceful environment. DARK NIGHTCaféwere probably
one of the first business to offer internet facility to customers, because students
or writers go to fast food and drinks shop to study or otherwise work on their
laptops.
Pricebundling:
One pricing strategy popular in fast food and drinks shop is to bundle the
several items together. Thisis an important advantage that we will give to our
customers. By this way the customers do come & visit ourCafé.
SIZE:
The size of the DARK NIGHTCaféis not so huge. Because on the initial stage we
want to start up
ourbusinessonsmallscale.Butwiththepassageoftimewhenourbusinessfamousint
he society we will exp& it on the large scale. The larger an organization grows,
the more need there is for formal structure, defined work assignments, & clear
lines ofauthority.
ORGANIZATIONAL LIFECYCLE:
An organizations life cycle includes four stages, & each stage connotes different
structural needs
1: Birth, also known as Start-up.
2: Youth, also known as Growth or Fast Growth.
3: Mid- life, also known as Slow Growth or Not Growth.
4: Maturity, also known as Decline.
LEGALSTRUCTURE
DARK NIGHTCaféprovides a quality services to its customers & quality goods
on affordable prices. This Partnership business wants to experience & their
business on outsid the border level& wants to strongly compete on
22
internationallevel.
23
PARTNERSHIP/SOLEOWNERSHIP/COMPANY:
Thelegalformofownerxipisgoingtobea“PARTNERSHIP”businesssothattheywill
have a combined capital to start up a business. Investments has been made by
all partners, who is fully liable for all gain &loss.
BUSINESSSTRUCTURE:
“DARK
NIGHTCafé”isaservicingBusinessthatprovidesitsbestservices&qualityproducts to
its customers around the area. Intially all the operational activities will be
managed on hierarchical basis, where SIR HASHIM ABBAS will be the finance
manager, SIR SHERAZ will be the HR Manager &SIR MUBARAK will be the
MarketingManager.
BUSINESSHIERARCHY:
We will operate our business according to the business hierarchy. In which
Finance Manager, Marketing Manager, HR Manager, Kitchen Chef, Waiters,
sweeper &security guard are involved. In the beginning we will operate our
business according to this hierarchy.
SLOGAN:
“Just relax and accept the crazy’’
24
Chapter 3
Feasibility
Analysis
4
Feasibility Report:
25
Chapter 4
Environmental & competitive Analysis
In the industry environmentthe competition can be analysed by using the
portersfive forces model techniques. It cosnsist of issues like fears of new
entrants, bargaining, power of suppliers, threat of substitutes &competitve
rivalry withinindustry.
NEW ENTRANTSTHREATS:
The environment in which DARK NIGHTCafé operates is very competitive.
DARK NIGHTCaféhas to compete with the other strong br&s in the market Such
as Bites Café, MakCafé& Gloria Jeans Café. In the market there are many new
entrants which operates in a single store. But despite of barriers for new
entrants, it is easy to open a single small Café.
However there are certain barriers for new entrants such as
Rent a place, remodel, istall the equipment, get the license asneeded.
High up front instruments needed to grow significantly such as
disrtibution system, shops equipment, locations, marketing, creation of
brand awareness& brand recognition , customer retention to enter a
newmarket.
shop so they don’t compare the prices of products with other br&s. However the
preference of customers are very likely to switch as they might get bores with tired
of some flaw
27
offered by over competitors. Customers bargaining power is relatively low when
the products to be offer are of high quality. Consumers are mainly interested in
continuous sproduct innovation or seasonal specialities.DARKNIGHTCaféhas to
provide the high quality products in order to minimize the bargaining power of
customer.
THREATS OFSUBSTITUTES:
In the market, there are many other products, like energy drinks, smoothes soft
drinks, fruit juices etc which can replace fast food and drinks s. All these
products possess a threat to DARK NIGHTCafé. Also in the market there are
many others fast food shops & lounges that provide the same environment as
to be provided by Café Love. DARK NIGHTCafé has to deal with all these
products accuratelly&efficiently.
28
Chapter 5
Operational
plan
LOCATION:
DARK NIGHTCafé is located in Shahab Pura right next to UMT. Location is
very valid & interesting factor for a fast food shop, the first reaction for
visitng a drinks and fast food shop is ambiance & environment. Customers
xould feel relaxed, comfortable & welcome. Having the right place &
atmosphere is the key to attract more customers that like to hangout with
friends or for business meetings. Natural NIGHTs & comfortable seating
spaces attract the customers in the fast food and drinks shop. Ease fast food
of reach & comfortable environment is the first trick mark on the list of most
of the lovers. Location, hence, plays a big role in this.
LAYOUT:
The outdoor seating & the Café’ inside calm atmosphere will be perfect for
the university’s students hangout, family members & business professional for
their meetings. The patrons are hit by the vibrant decor & it is accentuated by
the natural NIGHT flooding by a large front window. One walls will decorated
by beautiful paintings & other with same decor pieces.
29
INVENTORYMANAGEMENT:
The DARK NIGHTCaféinventory is different than that of a traditional Café or
restaurant. It is a hybrid Net only needing an effective way to track the
copmonents used in drink & food preparation but retail items as well. Inventory is
that part of a business asset that are available for sale to clients & customers.
The inventory for a fast food and drinks shopis specialized in that it consist in
large parts of goods that have an expiration date. We need to maintain a stock
of items our custoemrs want to purchase include the seasonal specialities& we
need to move those items out in a resonable price.
30
Chapter 6
Strategic
plan
Strategic plans include the various types of matrices such as EFE matrix, IEF
matrix, SWOT matrix, SPACE matrix, & QSPM.
Assignweights:
Assign weights that ranges from 0.00 to 1.00 to each factor the way xould be
assign
according to each factor’s importance to DARK NIGHTCafé,soverall business
strategy.
Assign Ratings:
Assign ratings on the scale from 1 to 4. The rating indicate how effective the
currrent strategy response to each factor. A rating of 1 represents a poor
response, a rating of 2 represents a response below average, a rating of 3
represents a response above average, & a rating of 4 represents a superior
response.
Multiply &sum:
Multiply the weights with the ratings & sum all product to reach the final score.
The average score is 2.5. A score exceeding the average indicates the strong
31
strategic ability to respond to external factors. A score that is aunder the
average indicates a weak strategic ability to respond to external factors.
32
INTERNAL FACTOR EVALUATION MATRIX(IFE):
The IFE matrix will use to evaluate major strengths & weakness in functional
areas of DARK NIGHTCafé& determine whether or not the Café has a strong
or weak internal position. The IFE matrix can be compiled using the following
four steps:
Assign weights:
Assign weights that range from 0.00 to 1.00 to each factor. The weight would be
According to each factor’s importance to DARK NIGHTCafé, soverall business
strategy.
Assign ratings:
Assign ratings on a scale from 1 to 4. A rating of 1 represent a major weakness,
a rating of 2 represents a minor weakness, a rating of 3 represents a minor
strength amd a rating of 4 represent a major strength.
Multiply &sum:
Multiply the weights with the ratings & sum all products to reach the final score.
The average score is 2.5. A score exceeding the average indicates a strong
internal position. A score that is under the average indicates a weak internal
position.
33
SWOTANALYSIS:
The swot analysis is use to summarize internal strengths & weakness as well as
external opportunities & threats. It helps in paving the way for ensuing SWOT
analysis by redirecting the focus on key issues within an outside the Café’s
boundaries.
SWOT analysis:
SWOT analysis apply to highNIGHT four broad strategic directions from which
possible strategic alternative can be drawn. In this analysis we match strengths
& weakness with the opportuniites& threats of Café to arrive at four mutually
exclusive strategy types:
Ostrategies:
In these strategies we will use a Café’s internal strength to take advantage of
external
opportunities.
S strategies:
In these strategies we will improve Café’s internal weakness by taking advantage
of
external opportunities.
Tstrategies:
In these strategies we will use a Café’s strengths to avoid or reduce the impact
of external threats.
Wstrategies:
In these strategies we will reduce Café’s internal weakness & avoid external
threats.
34
SPACEMATRIX:
The space matrix will use to determine which nature of strategy DARK
NIGHTCaféxould undertake in the xort to medium term. This strategy tool is
meant to formulate a strategy based on the competitve positions of Café Love.
The matrix is constructed by plotting Calculated values for the competitve
advantage & industry strengths dimensions on the X-axis variables for the
environmental stability & financial strengths dimensions are plotted on the high
axis. Five steps are necessary to compile a space matrix.
Rate thedimensions:
The CA & ES dimensions are rated using a scale from -6 (worst) to -1 (best).
The IS & FS dimensions are rated using a sacle from +1 (worst) to +6 (best).
Add averagescores:
Add the average scores of CA to that of IS,& that of arrive to the total X-axis (Y
-axis) scores.
35
Plot the scores tograph:
Add the two scores on the X-axis & plot the resultant point on X. Add the two
scores on the Y-axis & plot the resultant point on Y.
36
QUANTITATIVE STRATEGIC PLANNING MATRIX(QSPM):
The quantitative strategic planning matrix will utilize for evaluating
possiblestrategies & comparing them as alternative among each others. The
QSPM will help to set priorities as to which strategies are more attractive for
DARK NIGHTCafétaking into consideration our goals &objectives.Five steps
are necessary to compile aQSPM.
Identify strategicalternatives:
Strategic alternatives will take from the TWOS analysis.
Assign weights:
Weights are assigned to key external & internal factors.Those weights will
take from the IFE & EFE matrix.
37
CHAPTER 7
Marketing Plan
38
MARKETINGOVERVIEW:
Consumer taste & personal income drive dem&. The profitability of individual
companies depends on the ability to secure prime locations, drive store traffic,
&deliver high quality products. Large companies have advantages in
purchasing, finance, & marketing. Small companies can compete effectively by
offering specialized products, serving a local market or providing a personal
level of customer services. Fast food and drinks shops depend greatly on
customer traffic & are most often located in areas with convenient access for
pedestrian or drivers. Typical locations include downtown, shopping malls,
office buildings & university campuses. Fast food and drinks shops depends
highly on part-time employees, & most workers require few skills. Many
employees make just above the minimum wage, & pay can be significantlylow.
MARKETINGDESCRIPTION:
This industry is a growing industry & we see the industry changes in the
industry future
asfarasitssupply&dem&.Potentialissues&changeswouldbemostlylongchanges
over the global scale, such as pricing rising & falling due to natural disasters &
lack of supplies. My company will take advantage of these occurrence by being
aware of when they will be taking place. It is important to know when the
market is going to fluctuate or change so that you can be the ahead of game.
Bites & MAK Café are the competitors around the Sialkot. These Cafés are
offering warm, comfortable, & yet modern environment & great variety of
xakes& fast food and drinks s. There are many fast food and drinks shops in
Sialkot which includes Bites & MAK Café. These are some of our potential
competitors &theyareallworkingonsomepattern.Thesefast food and drinks
shopsaremainlyoperatinginCantt area.
39
MARKETINGSIZE:
Pakistan is the country, where these kinds of Cafés are working in almost all the
areas of Pakistan.Everyfast foodCafé
isprovidingtheirservicesaccordingtotheirownlevel.There are some Cafés which
are working on wide level but there are some Cafés which are only work on the
low level. Our business will work on the broad level, but we will exp& our
business overyear.
NEEDS &TRENDS:
In this industry, there is considerable market power, the industry is at the
maturity stage, there are many competitors in the market, including Bites &
MAK Café they are getting about 60% of the market xare in the industry. People
now prefer the food consumptions. People are xifting towards the healthy
eating & fast food and drinks consumption is expected to increase in future.
ENVIRONMENTALIMPACTS:
There are a lot of environmental issues that can relate with the consumption of
food. However, fast food and drinks shops naturally grow but deforestation is
taking places, as the trees are
affected,waterpollutionisalsothere.Thereareseriousenvironmentalthreatstakingp
lace. River pollution is there due to discharge form the food processing. The soil
quality is affected, agrochemical usage & the waste from the food products,
can also affect the environment & the health of thepeople.
CLIMATECHANGING:
Climatechangingcanimpacttheindustry,therearethewarningsbytheworldbiggest
food producers that climate changing can result in the severe risks to the
industry. However, in some reports it is analyzed that climate change has
already impacted on the crops of the fast food and drinks across thecountries.
40
MARKET PROFITPOTENTIAL:
Consumer taste & personal income drive dem&. The profitability of individual
companies depends on the ability to secure prime location, drive store traffic, &
deliver high quality products. Large companies have advantages in purchasing,
finance & marketing. Small companies can compete effectively by offering
specialized products, serving local market, or providing a personal level of
customer service.
Fast food and drinks shops are customer traffic & are most often located in
areas with convenient access for drivers. Retail prices for fast food and drinks
shops beverages vary. Due to the cost volatility of DARK NIGHTCafé& dairy,
retail prices often fluctuate
Fast food and drinks shops highly on part time employees, & most workers
require few skills. Many employees make just above the minimum wages & pay
can be significantly below the average for all the workers.
TARGETMARKET:
Our target Market will be anyone who enjoy fast food and drinks but we will
mainly target people age 15&olderbothmale&female.Fast food and drinks
shopswillcatertopeoplewhowanttogettheir best tasting food in a relaxing
atmosphere. Such customers vary in age, although our location close to the
University Campus means that most of our clientele will be college students &
faculty. Our market research xows that these are discerning customers that
gravitate towards better drinks and fast food.
Furthermore, a lot of college students consider fast food and drinks shops to be
convenient studying or meeting location where they can read or meet with
peers without necessity to pay cover charges. For us, this will provide a unique
possibility for building a loyal client base.
41
MARKETSEGMENTATION:
DARK
NIGHTCaféwillfocusitsmarketingactivitiesonreachingtheUniversitystudents&fac
ulty people working in offices located close to the restaurant & on sophisticated
teenagers. Our market research xows that these are customer groups that are
most likely to buy Fast food and drinks s & foodproducts.
DemographicSegmentation:
Demographic segmentation divides the market on the basis of demographic
variables like age, gender, income etc. we divide our buyers from early twenties
to late 60’s 50’s male & 50% female & middle to high income. Our target market
will be anyone who enjoy Fast food and drinks
&xakesbutwewillmainlytargetpeopleage15&olderbothmale&female.
Geographicsegmentation:
Demographicsegmentationisacommonstrategywhenyouservecustomersinapar
ticular areaorwhen
yourbroadtargetaudiencehasdifferentpreferencesbasedonwheretheyare
located.WearejustprovidingourservicesinourregionSialkot.InSialkot,welocatedou
r CaféneartheUniversitysothestudentscaneasilycome&enjoythedrinks,Fast food
and drinks& otheritems.
PsychographicSegmentation:
Psychographic division partitions purchasers into various gatherings, in light of
social class, way of life or individual qualities. The psychographic of our
purchasers are lower working class to high society who carry on with a way of
life where they can burn through a lot of cash on sumptuous like inexpensive
food and beverages habitually.
PRODUCTPOSITIONING:
Product positioning is the place the product occupies in consumers mind
relative to other products. Our DARK NIGHTCafé will be differentiated in the
consumers mind.
42
MARKETINGOBJECTIVES:
Every business sets the objectives for the growth of their business. For this, we
set out objectives for the market. Basically, objectives are created to exp& the
business time to time.
Develop a br& awareness through a steady, month to month increase of new
customers.
Develop an increase in sales while achieving a status quo state or decrease in
marketing expenses.
Tocreateaunique&innovativeenvironmentthatwilldifferentiateitfromtheotherloc
al restaurant.
PRICINGSTRATEGY:
DARK
NIGHTCafépricingstrategyinvolvespricebundlingcombinedwithpsychologicalpri
cing. In price bundling, the Café offers fast food and drinks & other product
bundles for a discount. In psychologicalpricing,DARK
NIGHTCaféusespricesthatappeartobesignificantlymoreaffordable. This element
of DARK NIGHTCafémarketing mix highNIGHTs the importance of price
bundling to encourage the customers to buy moreproducts.
PRODUCTMIX:
DARK NIGHTCaféprovidesmainlyXakes,S&wiches,Fast food and drinks
s&otherproducts.Thiselement of the marketing mix covers the various
organizations outputs (goods & services) data Café provides to its target
customers. DARK NIGHTCaféproduct mix has the following main productsline:
shakes
Fast food and drinks s
Hamburgers &s&wiches
Fries &wings
Pizzas
Beverages
shawarma & paratharolls
43
PLACE/ DISTRIBUTIONSTRATEGY:
DARK
NIGHTCaféisthemostprominentplacewhereCafé’sproductsaredistributed.Thisele
ment of the marketing mix indicates the locations with the Café’s products are
offer. DARK NIGHTCafé, smain places distributing its products are asfollows:
Café it’sself
Postmateswebsites
We mainly distribute our products at Café. moreover, customers can place their
orders through the post mate websites.
PROMOTIONALSTRATEGY:
DARK NIGHTCafé,
spromoteitsproductstoattractmorecustomers.Thiselementofthemarketing mix
defines the approaches used to communicate with the customers. DARK
NIGHTCaféuses the following tactics in its promotionstrategy:
Advertising
Salespromotions
Publicrelations
Directselling
DARK NIGHTCafé advertisement are the most notable among its promotion
tactics. We use print media&onlinevideoforitsadvertisement.DARK
NIGHTCaféalsousessalespromotionstodraw more customers to its Café. E.g. we
offer discount for certain products in addition, DARK
NIGHTCafépublicrelationsactivitirshelppromotethebusinesstothetargetmarket.O
ccasionally, the Café uses direct selling, such as for corporate clientele,
community events & parties. In this element of its marketing mix, Café
emphasizes advertising as its main approach to promote itsproducts.
44
PRODUCTDESCRIPTION:
Name Description
Hot fast food and drinks Milk indulge in Fast food and drinks
powder, chocolate syrup, chocolate
powder & milk.
Cold Fast food and drinks Instant fast food and drinks, Milk &
sugar included.
Rolling cones fast food and drinks Indulge in cappuccino & espresso with
creamy chocolate waffle.
Espresso fast food and drinks A double xot of straight Espresso.
Latte fast food and drinks Espresso combines with steamed
milk,
toppedwithasmallamountofvelvetymi
lk foam.
S&wiches Bread slice indulge with chicken &
mayonnaise.
Shawarma & paratha roll Xawarma bread indulge with chicken,
mayonnaise & vegetables.
Zinger burger & wings Chicken indulge with white flour,
Crunches, mayonnaise &species.
Pizza Dough topped with chicken, cheese,
olives & vegetables.
Fries Potatoes indulged with white flour &
salt.
Tea Milk, Sugar & Tea bags.
Shakes Milk, coco powder indulged with ice
cream cubes & sugar
45
MARKETINGSTRATEGIES:
Following are the strategies that are included in it which are as:
InternetFacility:
Comprehensive marketing strategies begin with product & service
development. DARK NIGHTCafé can especially benefit from developing a wide,
customer friendly-suite of services, since word of mouth advertising can be an
effective way to turn large groups of people into loyal customers. Be confident
to offer the internet facility in your Café& to install the electrical outlets at each
table for laptops.
46
Chapter 8
Human Resource Management
Human resource management (HRM), or the process of finding, developing &
keeping the right people to form a qualified work force, is one of the most
difficult & important of all management tasks. On the other h&, activities
undertake to attract, develop & maintain an effective work force within an
organization.
STAFFINGFUNCTION:
DARK NIGHTCaféwill conduct recruitment & selection program in which we hire
skill & qualified personnel for attainment of our goals & objectives of organization.
TRAINING &DEVELOPMENT:
We will conduct training & development programs in order to improve skills &
capabilities of employees so that they can perform well. In this training session,
employees are taught about Fast food and drinks & how to do well pleasing the
customers. In the training program, the employees are well trained to recognize
fast food and drinks ,& they are taught to communicate well within business.
DARK NIGHTCaféalso analyze the training needs among employees which helps
them to conduct training & developments for their staff in order to improve
their skills & abilities so that they can work hard for retainment of desire
objectives.
COMPENSATION &BENEFITS:
Compensation is the financial & nonfinancial rewards that organization
rewardsin employees exchange for their work. Depending on the job &
personal situation,an employee’s total package mayinclude:
Competitivepay
Bonuses
Paid timeoff
Emergency financialAid
47
PERFORMANCE APPRAISAL:
The HRM monitors the performance staff & provides appropriate reward to
them so that they feel motivated & performs their role & responsibilities
effectively.
RETENTIONSTRATEGIES:
Following are some employee retention strategies:
Measuretenure:
Turnover rate is important but so is the average of our staff underst&ing how
longyour employees stays with you, in all positions, can help us to underst&
what we need to do to keeppeople.
Employee recognition:
Having a rewards program in place is an excellent retention strategy to
acknowledge staff achievements, focusing on fairness & consistent delivery
when people feel that leaders & notice truly value their contributions, their
motivation & loyalty grow. We will provide Pay rises, bonuses & other financial
rewards.
48
Chapter 9
Financial
plan
DESCRIPTION:
Financialpanningisanongoingprocesstohelpyoumakesensibledecisionsaboutmo
ney, whichcanhelp youachievegoalsinlife.
It’snotjustaboutbuyingproductslikeapension or an ISA. A financial plan is a
comprehensive evaluation of an investor’s current &
futurefinancialstatebyusingcurrentlyknownvariablestopredictfuturecaxflows,ass
et values, & withdrawal plans. “DARK NIGHTCafé” is based onpartnership.
FINANCIALOBJECTIVES:
Inyear1,weareexpectingamoderateprofit.Although,abreakevenpointwillal
so be perfectlyacceptable.
Capture the majority market xare at the end of year3.
To increase profit at the end of year 3 with a fair growthrate.
SOURCES OFFUND:
DARK NIGHTCaféis based on partnerxip. All the partners will invest in the
business.
49
REVENUEGENERATION:
The sales are expected to increases by 10% every year. The prices used to
calculate the gross revenues earned are based on the billing rate at which the
entrepreneur will charge the customer. The item wise estimated for the DARK
NIGHTCaféis as follows:
REVENUES
Description Quantity of Prices Total
daily sales
Hot Fast food and 5 180 750
drinks
Cold fast food and 8 180 1440
drinks
Rolling cones fast 10 250 2500
food and drinks
Espresso fast food 10 300 3000
and drinks
Latte Fast food and 5 250 1250
drinks
S&wiches 20 150 3000
Xawarma 10 150 1500
Paratha roll 8 170 1360
Zinger 10 180 1800
Pizza (Small) 3 500 1500
Pizza (Medium) 8 850 6800
Pizza (Large) 6 1200 7200
Wings 10 packs of 5 150 1500
Fries 15 packs 120 1800
Tea 15 60 900
shakes (Strawberry) 7 250 1750
shakes (Chocolate) 10 280 2800
50
51
Xakes (Nutella) 6 330 1980
Xakes (KitKat) 8 310 2480
Total _ _ 45310
SALES REVENUE
Description Amount _ Total
Monthly 45310 30 1359300
sales
Revenue
Yearly sales 1359300 12 16311600
Revenue
COST OF RAWMATERIAL:
Description Cost (Rs) Monthly Cost (Rs) Yearly
Hot Fast food and drinks 9000 108000
Cold Fast food and 16800 201600
drinks
Rolling Cones Fast food 12600 151200
and drinks
Espresso Fast food and 12000 144000
drinks
Latte Fast food and 8100 97200
drinks
S&wiches 9700 116400
Xawarma 6750 81000
Paratha roll 8000 96000
Zinger 26600 319200
Pizza 48000 576000
Wings 21800 261600
52
53
Fries 600 7200
Tea 7800 93600
shakes (Strawberry) 9400 112800
shakes (Chocolate) 10800 129600
shakes (Nutella) 11650 139800
shakes (KitKat) 8500 102000
Total 228100 2737200
54
CAPITALINVESTMENT:
Capital Investment
Renovation cost 200000
Furniture & Fixtures 119600
Flooring construction 100000
Electrical &NIGHTning 20000
Bathroom construction 50000
Equipment 637500
Outside signage 50000
Menu cards 3000
Utensils 150000
Food display case 100000
Advertising 50000
Other expenses 30000
Advance rent 200000
Total capital cost 1710,100
Tax required 89,900
Project cost 1800000
55
PAYMENTS:
positions Required Salary Per Per year
of each month
salaries
Manager 1 25000 25000 300000
Waiters 4 10000 40000 480000
Securit 1 10000 10000 120000
yGuard
Sweeper 1 8000 8000 96000
Kitchen chef 2 35000 70000 840000
Accountant 1 15000 15000 180000
Electricity _ _ 100000 1200000
Bills
Total 268000 3216000
56
EQUIPMENTS:
Details Quantity Per unit price Total
Computer 1 20000 20000
Security cameras 2 10000 20000
Internet facility 1 3000 3000
Telephone 1 2000 2000
Fans 8 2500 20000
Air conditioner 2 55000 110000
Fast food and 2 35000 70000
drinks Machines
S&wich maker 2 8500 17000
Juicer machine 2 5000 10000
Tea maker 2 10000 20000
Soft mood NIGHTs 15 500 7500
Set of paintings 1 10000 10000
Music system 1 10000 10000
Generator 1 100000 100000
Refrigerator 2 60000 120000
Microwave oven 2 25000 50000
Blender 2 5000 10000
57
Espresso machine 1 30000 30000
Ice Machine 1 8000 8000
ADERTISINGCOST:
Details Quantity Per unit price Total
Brochures 500 20 10000
Social media _ 20000 20000
Website _ 20000 20000
ADVANCERENT:
Description Rent Monthly Four Months
Building rent 50000 200000
Total _ 200000
58
FURNITURE:
Description Quantity Per unit price Total
Chairs 18 2200 39600
Sofa 5 10000 50000
Tables 6 5000 30000
Total _ _ 119600
TOTAL WORKINGCOST:
Cax required 89900
Total working capital 1710100
Project cost 1800000
RENOVATIONCOST:
Description Amounts
Interior Decoration 150000
Counter setting 50000
Total 200000
59
DEPRECIATION:
Description Expected life Total cost Depreciation
Furniture 5 1196000 59800
Generator 5 100000 50000
Refrigerator 5 120000 60000
Microwave oven 5 50000 25000
Air conditioner 5 110000 55000
Fast food and 5 130000 65000
drinks Machine
Computer 5 20000 10000
Security cameras 5 20000 10000
S&wich maker 5 17000 8500
Total 343300
60
INCOMESTATEMENT:
Description 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Purchases 2737 2874 3017 3168 3327 3493 3668 3851 4044 4246
200 060 763 651.1 084 438 110 516 092 297
+Direct 1200 1224 1248 1273 1298 1324 1351 1378 1406 1434
Exp 00 00 48 45 92 90 40 42.8 00 12
2857 2996 3142 3295 3456 3625 3803 3989 4184 4389
200 460 611 996.1 976 928 250 359 692 709
- 5100 5202 5306 5412 5520 5630 5743 5858 5975 6095
Closing 00 00 04 16.08 40.4 8.4 5 4 6 1.12
stock
2806 2476 2912 2754 2904 3569 3745 3930 4124 4328
200 260 007 780 936 620 815 775 936 758
+ Direct 1260 1285 1310 1337 1363 1391 1418 1447 1476 1505
labor 000 200 904 122 865 142 965 344 291 817
Prime 4066 3761 4222 4091 4268 4960 5164 5378 5601 5834
Cost 200 460 911 902 801 762 780 119 227 575
+ FOH 1440 1468 1498 1528 1558 1589 1621 1654 1687 1720
000 800 176 139 702.3 876 674 108 190 934
CGS 5506 5230 5721 5620 5287 6550 6786 7032 7288 7555
200 260 087 042 503.3 639 454 227 417 509
Revenues 1631 1712 1798 1888 1982 2081 2185 2295 2409 2530
1600 7180 3539 2716 6852 8195 9105 2060 9663 4646
-CGS 5506 5230 5721 5620 5287 6550 6786 7032 1288 7555
200 260 087 042 503.3 639 454 227 417 509
Gross 1080 1189 1226 1326 1453 1426 1507 1591 1681 1774
Profit 5400 6920 2452 2674 9348 7556 2651 9833 1246 9137
-Total 6628 5549 5581 4989 5651 5595 5726 5766 5811 5855
Operatin 300 900 400 357 556 321 310 513 125 449
g Exp
Net profit 4177 6347 6681 8273 8887 8672 9346 1015 1100 1192
100 020 052 317 792 235 341 3320 0121 3688
61
-Tax 1253 1904 2004 2481 2666 2601 2803 3045 3300 3577
(30%) 130 106 316 995 338 670 902 996 036 106
Net Income 2923 4442 4676 5791 6221 6070 6542 7107 7700 8346
970 914 736 322 454.4 565 439 324 084 582
OPERATINGEXPENSES:
Details 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Rent 6000 6300 6615 6945 7293 7657 8040 8442 8864 9307
Exp 00 00 00 75 04 692 58 61 74 98
Promo 1030 1030 1030 1030 1030 1030 1030 1030 1030 1030
exp 00 00 00 00 00 00 00 00 00 00
Legal 5000 _ _ _ _ _ _ _ _ _
Exp 0
Salarie 1176 1176 1176 1176 1199 1199 1199 1199 1223 1223
s Exp 000 00 00 00 52 52 52 52 51 51
De 4699 4699 4699 4699 4699 4699 4699 4699 4699 4699
p 300 300 300 300 300 300 300 300 300 300
Exp
Total 6628 5549 5581 4989 5651 5595 5726 5766 5811 5855
300 900 400 357 55620 321 310 513 125 449
62
BALANCESHEET:
Detail 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
C.A _ _ _ _ _ _ _ _ _ _
Cax 8990 9439 9911 1040 1092 1147 1204 1265 1391 1530
0 5 5 71 75 39 76 00 50 65
Stock 5100 5202 5306 5465 5574 5068 5799 5915 6211 6522
00 0 0 18 48 597 69 68 46 03
Pre 2000 _ _ _ _ _ _ _ _ _
Paid 00
Exp
Total 7999
3464 3521 8505 8667 8833 9004 9180 9602 1005
C.A 00 15 75 89 17 36 45 68 96 268
Fixed _ _ _ _ _ _ _ _ _ _
Asset
Fur & 1196 1196 1196 1196 1196 1196 1196 1196 1196 1196
Fix 00 00 00 00 00 00 00 00 00 00
Equip 6375 6375 6375 6375 6375 6375 6375 6375 6375 6375
00 00 00 00 00 00 00 00 00 00
Total 7571 7571 7571 7571 7571 7571 7571 7571 7571 7571
F. A 00 00 00 00 00 00 00 00 00 00
-Acc 4699 7048 1120 1905 3430 3415 3095 2820 2200 1200
Dep 30 9 98 7
Total 1087 1051 1097 1588 1620 1637 1654 1672 1715 1761
Asse 070 310 997 632 389 021 450 348 196 168
t
Lia & _ _ _ _ _ _ _ _ _ _
O. E
Notes 4350 1563 1639 3200 2799 3064 2863 2680 3472 3547
Pay 0 10 97 00 94 81 15 87 48 54
63
O. E _ _ _ _ _ _ _ _ _ _
Com 1000 7350 6990 4743 5302 4102 5409 6680 5103 4958
Stoc 000 00 00 16 00 30 10 87 50 30
k
Ret 4357 1600 2350 7943 8101 9203 8272 7361 8575 9105
Ear 0 00 00 16 94 10 25 74 98 84
Total 1087 1051 1097 1588 1620 1637 1654 1672 1715 1761
070 310 997 632 388 021 450 348 196 168
STATEMENT OF CASHFLOW:
Detail 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
C. F _ _ _ _ _ _ _ _ _ _
O. A
Net 4177 6347 6681 8273 8877 8672 9346 1015 1100 1192
profit 100 020 052 317 9249 235 341 3320 0121 3688
+De 4699 7049 1120 1905 3430 3415 3095 2820 2200 1200
pExp 30 0 98 7
R. M (5100 (5202 (5306 (5465 (5574 (5685 (5799 (5915 (6211 (6522
Stoc 00) 0) 0) 18) 48) 97) 69) 68) 46) 03)
k
C.F 4137 6365 6740 7745 3337 8107 8769 9564 1038 5372
O.A 030 490 90 856 74 53 467 572 1175 685
C.F _ _ _ _ _ _ _ _ _ _
F.A
Long 4350 1563 1639 3200 2799 3064 2863 2680 3472 3547
Term 0 10 97 00 94 81 15 87 48 54
debt
O. E 1043 8950 9340 1268 1340 1330 1368 1404 1367 1406
570 00 00 632 394 540 135 261 948 414
C.F 1087 1051 1097 1588 1620 1637 1654 1672 1715 1761
F.A 070 310 997 632 388 021 450 348 196 168
64
C.F _ _ _ _ _ _ _ _ _ _
I.A
Ren 2000 _ _ _ _ _ _ _ _ _
o 00
Cost
Equip 6375 _ _ _ _ _ _ _ _ _
00
Fur 1196 _ _ _ _ _ _ _ _ _
& 00
Fix
R. M 5100 _ _ _ _ _ _ _ _ _
Stoc 00
k
F.A (1467 _ _ _ _ _ _ _ _ _
I.A 100)
.Net 3757 7416 1772 9334 1954 9744 1042 1123 1209 7133
Inc in 000 800 087 488 162 074 3917 6920 6371 853
ca
65
Chapter 10
RiskManagemen
t
Starting & running a DARK NIGHTCaféis no easy task. Owner often find
themselves faced with various challenges while turning their fast food and
drinks shops in to successful businesses.
*
MANAGEMENTRISK:
Following are the management risk & their coping strategies:
Train youremployees:
Employees are the heartbeat of our business, so protecting them from harm in
the work place xould be our top priority. If they have proper training, they can
overcome disastrous situations.
Worksafety
Customerservice
Safetyprocedures
Maintain yourfacilities:
To reduce the odds of property damage or someone getting hurt on your
property, be sure to:
Keep a cleankitchen
Clear theclutter
66
Store up indoor & outdoorrailings
67
MARKETINGRISK:
Customer changing preferences is a one of a kind gamble that the
Café's business conveys.
Rivalries in the market have a danger to the cheap food and
beverages shop.
State of the economy can significantly influence the benefits in the
cheap food and beverages shops.
There xould be appropriate funds to run the inexpensive food and
beverages shop.
Picking the right area is vital else it can end up being a major
requirement and can significantly influence the deals.
OPERATIONALRISK:
As the proprietor of the business you should pursue difficult choices. What's
in question is the general outcome of your business, so such choices will
incorporate terminating representatives, restraining workers, scaling back
hours, cutting sellers, recruiting and preparing new workers. Great
administration requires difficult choices to be made constantly.
FINANCIALRISK:
Beginning a business requires capital and you might have risk every last bit of
it to see your fantasy happen as expected. The advantages of gambling with
your investment funds can pay off with a flourishing and productive business.
In any case, you should be ready eventually to lose the venture.
68