Beruflich Dokumente
Kultur Dokumente
Table of Contents
1
Executive Summary............................................................................................. 2
Opinion of value................................................................................................... 2
History of company.............................................................................................. 3
Services provided................................................................................................. 4
6.2
PESTEL Analysis............................................................................................. 5
6.3
SWOT ANALYSIS............................................................................................. 5
Production process............................................................................................... 6
Customers Analysis.............................................................................................. 7
Suppliers.............................................................................................................. 7
10
Human resources.............................................................................................. 8
12
13
Financial Analysis............................................................................................ 10
References...................................................................................................... 13
15
Bibliography.................................................................................................... 14
16
Appendix......................................................................................................... 14
Table of figures
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1:Opinion of value............................................................................................. 2
2: service menu................................................................................................. 4
3: production process........................................................................................ 6
4: suppliers........................................................................................................ 7
5: job analysis................................................................................................... 9
6: furniture& fitting............................................................................................ 9
7 Assets........................................................................................................... 10
8; bookvalue.................................................................................................... 11
9 : market value.............................................................................................. 11
10 : ROI........................................................................................................... 12
1 Executive Summary
This is a business overview of the ABC canteen as proposed by my superiors. My
boss is looking at the possibility of buying the canteen business over from Mr
Bernard, as he will be relocating. In order to come up with this report, its required to carry out
certain tasks accordingly of which include among others, the analysis of both the internal and external
environment factor affecting ABC canteen operations, industry analysis of the company. A market
research is also required and would have to analyse different plans for the company including operational
plans, human resource plan, risks contingency plan and financial plan. Recommendation for risks,
finances, human resources and operations accordingly.
2 Opinion of value
As per the given information of the past five (5) year sales, There is a difference of RM200,000
in turnovers. So in my opinion as per the findings the canteen can be sold between RM 400,000
and RM 600,000. As described in the table below
RM 400,000
Maximum Price
RM 500,000
RM 500,000
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a) Assumes that the new owner(s) of the Canteen will have the necessary resources and
commitments to not only acquire, but also to grow the Company.
b) Assumption of the buyers knowledgeable and understanding about the Canteen and
its operations
Some of the liming conditions faced by the canteen are as follows;
The history and nature of the canteen business
The economy and the industry of the Canteen business.
Financial condition of the Canteen.
The canteen business associated risks.
The market.
Business Overview:
4 History of company
The Canteen is a shop which selling drinks, bake goods & food products to retail customers.
The Canteen buys and sells all of its products in a competitive marketplace. The Canteen has
proprietary product or exclusive rights to sell its product. There are several competitors within
the market range of the Canteen all selling similar products. Competition is based primarily on
price, location and name recognition.
ABC University has been in business for a long period offering educational services to
different students around the world; however, the University did not want to engage on food
services delivery to students. The University food business was and is serviced by external
vendors. Prior to Mr. Bernard operations, other different vendors had the opportunities but
numerous complaints from students about the lack of quality on the food and the whole service
kept on increase. This was a problem and from Mr. Bernard venturing for business, he met his
luck and struck a deal with the University. Mr. Bernard is a sole owner of the canteen business at
the ABC University. From the beginning, Mr. Bernard had to change the whole ambiance of the
food court to reflect the students expectations and after a while the University was impressed
with Mr. Bernard operations and this led to long term contract for him and being the monopoly
of the food sector. No other food service operated within 3 kilometers of the University and this
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meant a great deal for Mr. Bernard. Although, the canteen started operating earlier than that, it
was officially launched in 1998.
During the early times of canteen operations, Mr. Bernard lacked enough staff to service the
whole scale of students in the University and this meant he lost customers to different fast food
chains like Macdonald, Dominoes, Pizza Hut and KFC. The official times for the canteen were
from 7:00am to 19:00pm. His total staff number was 5 and the canteen did not have enough
variety of foods. Although, available foods at the canteen were finished by the end of the day, not
all students managed to be served. This summed up that Mr. Bernard had shortage of foods and
proper staff.
In 2001, the food were prepared from the canteen itself and never brought in anymore.
Besides, the student population kept on increasing to 5000 students from 3000 students. Overall
the eating student percentage increased to 40 percent out of 5000 students.
There was no major supplier and Mr. Bernard took fresh produce every morning from the market
and he mostly paid in by cash till later date when he established a relationship with other
suppliers that he was able to get discounts and pay end of the month.
By the year 2012, the canteen was the center of students breakfast, lunch and afternoon
tea. Staff had increased to 10 in number so as to match the growing demands from the students
and Mr. Bernard only took the managerial responsibilities while other duties like cooking and
cashier part was handled by the staffs. The canteen offered self-service and a la carte ordering as
well. The canteen was able to acquire discounts from the suppliers like Seasons Tea, Zesta and
other local fresh produce.
5 Services provided
The canteen provides two kinds of services; namely self-service and catering
service. ABC even extends catering service to a diverse clientele including private
agencies, individuals, government agencies, as well as big events like weddings and
celebrations etc.
The self service is whereby people serve themselves to their satisfaction with a
buffet provided by the company. This is in effect to the large number of students
and staff. Below is the menu sample of the food offerd
Beverages
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Breakfast
Lunch
Afternoon
Tea
Coffee
Teh tarik
Season Tea
Roti
Mee goreng
Oyster omelet
Roti jala
Nasi goreng
Tuna
ayam
sandwiches
Fried Chicken Chocolate
Cakes
USA style
fried rice
Chicken Rice
Fries and
chicken
Chicken curry
7 Production process
The canteen serves students and staff with breakfast, lunch and dinner, the production
process is discussed below.
Location & Premises
Operating Hours
Sales
Turnover
$500,000
(Last year $450,000)
Net profit
$60,000 (12%)
(Last year $67,500 (15%)
Inventories
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8 Customers Analysis
According to Malaguio (2012), there are three well known leading market segments for
the food concessionaires and these are students, office employees and factory. In this three
segments Mr Bernard canteen is focusing on the students section, supplying ABC University
worth 10,000 students. The student segment has a high spending habits, As in nature students are
well known to be quite active people therefore be likely to eat more to replace lost energy in their
bodies, thus leads to high spending habits on food.
There are two primary aspects to be considered when performing a customer analysis,
namely; demographic profile and a behavioral analysis. Will be targeting the 18 years and older
demographic, mostly their income obtained from parents or part time jobs. Through this means
of earning money an average student income is about $300 - $500 per month (Nationwide.com,
2013). Food is basic necessity, Most college students spending habits revolves around food, this
target market is good for the business.
9 Suppliers
The canteen supplier market is highly segmented, therefore the canteen business has more
bargaining power on products.
Supplier
Joancan
composites
sdn.Bhd
Product
Kitchen equipment
AEON.SDN.bhd
Perishable goods
Table 4: suppliers
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Contact details
Johor, Malaysia
Total Revenue
US$1 Million US$2.5 Million
Kuala lumpur,
Malaysia
Total Revenue
US$3million
Terms of trade
Payment at every
year end
Payment at every
month end
10Human resources
Human resource development is quite important in sustaining the business growth,
therefore high focus should be put on the training and development of the employees (Hrsp.org,
2013).The current canteen staff are highly trained personnel and know how to carry out their
duties accordingly without much supervision. Below is a detailed job assessment of the key
competent jobs in the canteen industry.
Cook
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Furniture &
Fittings
Chair
Light
Quantity
Condition
200
20
Good
Bad
Description
No problem found
Need to change few light
Display Counters
Bain-maries
Dining Furniture
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13Financial Analysis
13.1 Asset valuation: Book value method
Book value is the value of an asset on the balance sheet minus total depreciation, depletion,
or amortization. For an entire company (McNish, 2010), it is often viewed as total assets minus
total liabilities, often stated on a per-share basis. In this case, it is also known as shareholder's
equity
Assets = Liabilities + Equity
Assets
Quantity
Price
Refrigerator
RM50,000
RM30,000
Coffee Maker
RM20,000
Microwave
RM20,000
Stove
RM10,000
50 seated Table
10
RM1000
4 Seated Table
40
RM1000
2 Seated Table
20
RM1000
Sofa
RM3000
Chairs
280
RM1500
Air Conditioner
RM5000
Basin
RM5000
Lighting
20
RM200
10,000 items
RM300,000
Table 7 Assets
=300,000 -10000-0
200,000
300,000.00
150,000.00
Output:
Book value
150,000.00
Table 8; bookvalue
Therefore, according to book value method the selling price of the canteen is estimated at
RM 150,000 but the owner proposed RM300, 000
Transacted selling
Selling price
Paradise Cafe at
price
RM150,000
150.000/ 3000=
50x10,000student
RM50/student
s = 500,000
600.000 /15000=
400,000
RM600,000
Twain University
RM40/student
(15,000 students
Wan Cafe at Pan
Corporation (6,000
RM400,000
400.000/6000 =
666,700
RM66.67/ student
employees)
Table 9 : market value
According to this information, the canteen price can estimated to be between RM 400,000
to RM 600,000.
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Table 10 : ROI
The ABC canteen has an overall ROI of 20% ROI is chosen based on the following reasons;
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14
References
Brady, E., Cravens, D., Maister, D., Peter, J., Thompson, A. and Walker, O. 2007. Strategic
marketing. North Ryde, NSW: McGraw-Hill Custom Publishing.
Hrps.org. 2013. HR People & Strategy. [Online] Available at: http://www.hrps.org/ [Accessed: 27
Sep 2013].
Malabaguio, M. 2012. Business Ideas. [Online] Available at:
http://www.entrepreneur.com.ph/article/6-things-to-remember-when-running-a-canteenbusiness [Accessed: 23 Sep 2013].
Nationwide.com. 2013. College Student Spending | How Much Do College Students Spend? |
Nationwide.com. [Online] Available at: http://www.nationwide.com/college-studentspending-habits-infographic.jsp [Accessed: 27 Sep 2013].
Porter, M. 1980. Competitive strategy. New York: Free Press.
Ritson, N. and Marsden, A. 2003. Organizational management. Amsterdam: CIMA.
15Bibliography
Fine, L. 2009. The SWOT analysis. [S.l.]: Kick It.
Fitz-Enz, J. 2000. The ROI of human capital. New York: AMACOM.
Hamersveld, M. and Bont, C. 2007. Market research handbook. Chichester, West Sussex, England: John Wiley
& Sons.
The Motley Fool. 2013. Book value. [online] Available at:
http://wiki.fool.com/Book_value#sthash.3bBFurzK.dpuf [Accessed: 30 Sep 2013].
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16Appendix
16.1 Industry analysis
16.1.1
Competitive Rivalry
According to the article there are no other competitors within the vicinity of the school,
therefore the ABC canteen business can operate freely as they will as its not faced with any
competition at all. The ABC Company has monopolised the canteen industry in the area as thus it has
more power on its customers. It can easily regulate the service prices to its advantage. Profits are
easily maximised in this case.
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Customers can switch easily without any restrictions to this new products. This can have a bad impact
on the company, therefore the company will have to reposition itself in the market to gain a competitive
edge.
16.1.2
SWOT analysis
Strengths
Weaknesses
Opportunities
16.1.3
Threats
Competitors.
Increase of facilities rental.
Possibility of losing experienced staff.
Possibility of losing customers.
PESTEL Analysis
Political
The Malaysian economic growth is slow due to
political issues, this may lead to slow business in
the beginning of setting the business in Malaysia.
And this also lead to the changing of government
policy which may resulted all goods to be sold in
the market increasing the prices
Social
The Malaysian government has its own strict rules
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Economical
Due to the current global financial crisis in
Malaysia. There is an impact on the foreign
exchanges. Due to this foreign currency
fluctuation risk effect, importing products might
become costly high for the business
Environmental
Due to deforestation and global
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16.2.2
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Balance sheet