Fyp ppt v3

ACCA Business Competition 2013

Participants

Yeung King Lam

Tsang Wai Shun

Lin Chun Hung

Pang Wai Kuen

Hong Kong Institute of Vocational Education (Morrison hill)

2

Content• Introduction

• Executive Summary

• Background of Consultancy Company

• Introduction of Forold Restaurant

• Sustainability

• Marketing Strategies

• Budget

• Statement of Comprehensive Income

• Statement of Financial Position

• Risk Recognition

3

Introduction

• According to Population Census Thematic Report (Older Persons) Elderly Population are increasing 4.8% per years.

• According to Task force on Population Policy 2013, the proportion of older persons (aged 65 and above) would rise significantly from 11% to 31% in 2031

• In this connection and being an ethical and caring entity, we have the responsibility to provide job opportunity to the elderly.

4

Executive Summary

• Apart from selling delicious and convenient lunch boxes to salary men and students, Forold Cuisine emphasizes to provide healthy and fresh meals to elderly at economical price. We hope to enhance the quality of life of elderly who living in relatively lower income district.

5

Background of consultancy company

Established in 2000

Over 80 staff members

Services : marketing, strategic planning , organizational, development, risk management, etc for small and medium enterprise.

6

Forold Cuisine • Major Business Nature: Chinese cuisine

lunch box

• Forms of Business: Sole Proprietorship

• Venue: Sham Shui Po

• Opening Hours: 9:00 a.m. – 11:00 p.m.

• Service:

• Cooked cuisine

• Take away

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Characteristic

Normal Customer

Elderly

Various

Delicious

Healthy lunch box

Affordable

Reasonable Pricing

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Staff

• Provide job opportunity for unemployed

• Also provide job opportunity for the elderly

• Flexible work hours (part-time / full-time)

• All staff enjoy statutory holidays by turns.

• The restaurant provides employee with benefits like insurance, sickness pay, bonus, etc…

elderly30%

un-em-

ployed70%

staff

9

Sustainability• In order to enhance the quality of life of the

elderly, Forold Cuisine offers affordable and healthy meals to them at lunch and dinner time.

• On the order hand, we provide well diversified meals to attract the other customers, such as salary man. That is the major revenue to cover the expenses.

• Moreover, the largest expense, rent is minimized as we choose a relatively small shop to operate the business. That is the reason we chose to provide take-away service but not for stay.

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Marketing

• Price :

• Lunch $25, Dinner $30 for all customers exceed elderly

• Lunch $10, Dinner $10 for elderly

• Place:

• Residential area nearby

• Average monthly family income around $17,000 which the second lowest one among the districts of Hong Kong

• Few competitor in nearby area

• The populations of elderly is high

• Rent is relatively lower than most of other districtsPreparatio

n License registrationTraining

Year 1Opening of Forold

Year 2consideration of

seeing more branches

according to the performance in

year 1

Timeline

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Channel Leaflet Facebook Newspaper

Target Audience

Sham Shui Po Resident

Facebook Users

Newspaper Audience

Corporation Parties

- - Retro, Headline

Quantity Print 1,000 pieces in the 1st stage

- 1 small area

Costs $190(half year)

-

Marketing – Promotion Plan

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Budget – Sales Forecast (weekly)

No. of customers (Elderly)

($)Sales

No. of customers (below 55)

($)Sales

($)Total sales

Lunch Dinner Lunch

Dinner

Monday

100 120 2200 63 90 4275 6475

Tuesday

90 100 1900 63 110 4875 6775

Wednesday

98 110 2080 65 80 4025 6105

Thurday

95 120 2150 70 80 4150 6300

Friday 95 130 2250 50 70 3350 5600

Saturday

50 50 1000 30 35 1800 2800

Sunday

40 40 800 20 25 1250 2050

33585

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Budget – Sales Forecast (daily)

Year 2 Total

Population of Sham Shui Po

Aged 55 or above: 115,500Aged below 55: 267,300

Assumption of the number of customer

Lunch: • Elderly (0.05% of 115,500)

110x 10• Below 55 (0.009% of

276,300): 74 x 25

Elderly : $1100Below 55: $1850

Dinner:• Elderly (0.03% of 115,500):

150 x 10• Below 55 (0.006% of

267,300): 100 x 30

Elderly : $1500Below 55: $3000

Total Elderly: $ 2600Below 55: $ 4850

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Sales Forecast

Year 1 Year 20

500000

1000000

1500000

2000000

2500000

3000000

Sales for the year

Elderly Below 55

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Budget - Legal and Professional

License License Fee ($)

Business Registration $3,950 / 3 years$1,316.7 per year

Fire Safety Certificate $1800

General Restaurant License $2,520

Food factory license $3,740

License for discharge from industrial, Commercial and institutional Premises

Free

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Budget - Consultant fee

• Year 1:

• Calculate method: set by contract

• Contract price : $10,000

• Year 2:

• Calculate method: set by contract

• Contract price : $8,000

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Budget - Rent

The area of restaurant: 600 square feet

The location of the restaurant: Sham Shui Po

Monthly rent: $20,000

Expected inflation: 5%

Total rent:

Year 1: 20000*12= $240,000

Year 2: 20000*1.05*12= $252,000

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Budget - Food Material

Items Monthly Cost ($)

Meat (pork, beef, chicken, fish) $20,000

Green stuff $7,000

Seasoning (sugar, etc) $3,000

Total $30,000

Items Yearly Cost ($)

Plastic Boxes $1,000

Tableware $2,500

Total $3,500

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Budget - Salaries

Full-time / Part-time

Monthly Salaries

Total

Manager Full-time 1@ $15,000 $15,000

Cashier Full-time 1@ $13,000 $13,000

Chef Full-time 2@ $7,000 $14,000

Staff Part-time 2@ $30 per hour Total working hours per day: 14 hours

$5,040

Total Salaries(per month)

$47,040

Total working hours per day: 14 hours (Day + Night Shift)(full-time)7 hours three days per week (Part-time)

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Budget - MPF

Monthly Salaries

Manager $15,000 $15,000*5% $750

Cashier $13,000 $15,000*5% $750

Chef $7,000@2 $7,000*5%*2 $700

Total payment $2200

Total working hours per day: 14 hours (Day + Night Shift)(full-time)7 hours three days per week (Part-time)

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Budget - Fixed assets

assets Expected cost ($)

Vehicles (Second hand small wagon)

$120,000

Utensil (Furniture, Cooking utensils)

$13,000

Electrical appliances(Air-conditioner, Refrigerators）

$46,000

Total $179,000Vehicles, Utensil, Electrical appliances depreciation : 5%

22

Budget - Renovation

Area: 250Square Feet

Renovation fee: $200 per square feet

Total expected fee: $200x250= $50,000

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Budget – Insurance

• Group Medical Insurance Plan: Bupa Choice Plus

• Insurance Fee:

• Staff $2,150 (per year) x 5 = $ 10,750

• Total Insurance Fee per year = $ 10,750

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Miscellaneous

Items Monthly Cost($)

Electricity bill $12,000

Water bills $2,000

Gas charge $2,300

Telephone expense $155.8

Total $8955.8

Telephone service for the installation fee: $475

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Forold Restaurant

Statement of Comprehensive Income for the year ended

1Jan2014 - 31Dec2014

1Jan2015 - 31Dec2015

$ $

Sales 651,525

733,650

Less: Cost of Good sold 360,000 　

360,000

Gorss Profit 291,525

373,650

Less: Expenses

Advertising 380

380

Legal fee and Professional fee

9,377

9,377

Salaries 564,480

564,480

MPF 26,400

26,400

Rent 240,000

252,000

Renovation 120,000

Insurance

10,750

10,750

Depreciation 8,950

8,503

Consulatnt fee 10,000

8,000

Sundry expenses 3,500

3,500

Miscellaneous 107,944.6

1,101,781

107,469.6

990,859

Net Profit (810,256)

(617,209)

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Forold RestaurantStatement of Financial Position as at

1Jan2014 - 31Dec2014

1Jan2015 - 31Dec2015

$ $Fixed AssetVehicles

120000 114000

Less: Accumulated Depreciation

6000 5700

Netbook Value 114000 108300Utensil 13000 12350

Less: Accumulated Depreciation

650 617.5

Netbook Value 12350 11732.5Electrial Appliances

46000 43700

Less: Accumulated Depreciation

2300 2185

Netbook Value 43700 41515Total Fixed Assets

170,050

161547.5

Current AssestsBank balances and cash

19,694

221,243.5

Prepayment

Current LiabilitiesTrade Payable - -Net current asset

189,744

382,791

Financed by:

Capital 1,000,000

1,000,000

Add Profit for the year (810,256.3)

(617,208.80)

189,744

382,791

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Risk

• The face of peer competition

• Staff are lack of the related experiences

• The surrounding hygienic environment is bad

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recommendation

• Refresh the meals monthly and create more cuisine.