Professional Documents
Culture Documents
1
Business Planning: Business planning is the process of
constructing a formal statement of a set of business goals, the
reasons they are believed attainable, and the plan for reaching
those goals. It should also contain background information about the
organization or team attempting to reach those goals.
Crimson: CHCs Business Plan is based on excellence in very specific
market segments it serves throughout Asia Pacific and primarily
Australia. Our Business Plan details every aspect of our business on
its website: www. EducationClub.com.au
1.2
CHCs mission, vision and goals all have to face in the same
direction. All these must collaborate and coordinate with others to
attain the final vision of the company. Crimson defines the following
as:
Mission
Our mission is to deliver genuine and trustworthy hospitality by
making a difference in the lives of the people we touch every day,
including our associates, guests and owners.
Vision
Our vision is to be the most preferred brand in each customer
segment that we serve for our associates, guests and owners.
Values
We aim to foster a common purpose and culture within the Crimson
family through shared core values of mutual respect, intellectual
honesty and integrity, humility, fun, creativity and innovation.
My decision to opt for the Italian Restaurant is perfectly aligned with
the above three. The new establishment is going to be the uptown
venue to see and to be seen. It will be a place through which we will
fulfill our mission to deliver nothing but excellent service. This also
helps us build stronger community ties, goodwill and market value.
All three are critical ingredients to our attainment of our vision. And
finally, whatever we do, our values guide us. Thus, I see the
restaurant as an outstanding opportunity to establish in the market
as a premium fine dining venue.
1.3
A key priority for the CHCs project development is to build
employee and stakeholder confidence. We are committed to
achieving this by ensuring our initiatives are recurring and
consulting regularly with stakeholders and our employees.
1.4
It is important that sufficient and convincing homework is done
before a heavy investment is made creating a product, which is
bound to fail in the market. One of the most important tasks in
evaluating the economic viability of a niche market is determining
the size of the market. If the market is too small, there will not be
enough sales available to cover start-up, capital, and operating
costs. Conversely, if the market potential looks quite large, it is not
20 Km Radius
40 Km Radius
Total Area
551,039
1,476,825
2,027,864
72.6%
68.2%
69.4%
400,054
1,007,195
1,407,249
50.0%
25.0%
32.1%
200,027
251,799
451,826
1.5
0.75
1.08
300,040
188,849
488,889
$100
$100
$100
$30,004,073
$18,884,900
$48,888,973
Households
DINNER
1.5
Vision should not be a stand-alone item. It works in conjunction with
the other parts of the business plan. The forward step is to form a
goal-vision connection to introduce goals into the planning model. It
is common to treat vision and goals as separate units without a
relationship. This goal-vision disconnect is frequently found in
planning. A team develops a vision and somewhere later in the
agenda the team develops a set of goals.
To effectively convert vision into daily objectives and goals, the
management has to bear full responsibility and the team should
believe in managements vision. There are several ways in which we
will be able to set performance targets in our new restaurant and
also manage and monitor employee performance.
We have over past few years specialized in defining KPIs for our
employees and contractors. KPIs will be developed by senior
members of the management in appropriate consultation with
stakeholders. Stakeholders are involved at different levels within the
company and thus, different functions and processes require
Develop and Implement a Business Plan Assignment
1.6
Our start-up costs are mostly expensed equipment, furniture,
painting, reconstruction, rent, start-up labor, liquor license, six
months operating cash, and legal and consulting costs associated
with opening the restaurant. These are the start-up requirements to
the best of our knowledge and experience in the industry. Our
bidding conference fixes prices with typed bids and solidifies costs.
A number of items are self-explanatory.
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$315,431
$63,878
$379,309
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$23,878
$40,000
$0
$40,000
$63,878
Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$0
$0
$0
$0
$0
Capital
Planned Investment
Owner Equity
Investor
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital
$30,009
$349,300
$0
$379,309
($315,431)
$63,878
$63,878
$379,309
1.7
CHC will need to file for a Restaurant Licence in order to legally
operate a liquor selling premises anywhere within the country. A
restaurant licence authorises the consumption of liquor and the sale
of liquor for consumption on the premises at any time with or
ancillary to a genuine meal. The Liquor Licensing Act 1997 defines
a meal as a genuine meal eaten while seated at a table.
A restaurant licence also authorises the following:
Supply of liquor without a meal
A condition that allows the sale of liquor for consumptoion by a
patron seated at a table or attending a function where food is
provided. This condition allows a person to consume liquor while not
consuming a meal.
BYO with meals
A person may bring liquor onto the licensed premises with the
consent of the licensee to consume with or ancillary to a meal
provided by the licensee on the licensed premises. The person can
then take the unconsumed portion of that liquor from the premises
when they leave.
Trading Hours
A restaurant licence allows the licensee to trade at any time,
provided the sale and consumption of liquor occurs with or ancillary
to a meal.
However, in some cases trading hours may be restricted by a
condition on the licence. Trading hours are usually subject to local
council consents so it is advisable to check with our local council.
Other Authorisations
2.
Entertainment Consent
If a licensee intends to provide entertainment on the licensed
premises, the licensee must apply for an Entertainment
Consent. An Entertainment Consent will only be granted for a
restaurant licence provided the licensee can show that
entertainment is ancillary to the primary business, being the
supply of meals.
3.
1.8
Vision
To be the best name in hospitality in Asia Pacific
Mission
To create an environment where ladies and gentlemen can serve
ladies and gentlemen for their ordinary to discerning needs
Values
Keys to Success
Quality
Presentation
Service
Knowledge
Strengths
Weaknesses
Threats
Opportunities
Marketing Fails
Poor Customer Service
consistently.
Consumer expects more
than that can be offered.
Implementation
PESTEL Factors
Political
Government
policies
Educational
Local economy
Taxation
Social
Demographics
Media views of
Technological
Emerging
technologies
Econo
Env
reg
Government
term and
change
Trading policies
Funding, grants
and initiatives
Lobbying and
pressure groups
Wars, terrorism
and conflicts
Elections and
political trends
Internal political
issues
Inter-country
relationships
Local
commissioning
processes
Corruption
Bureaucracy
Inflation
Interest
Economy
trends
Seasonality
issues
Industry
growth
Import/export
ratios
International
trade
International
exchange
rates
the industry
Work ethic
Brand,
company,
technology
image
Lifestyle
trends
Cultural
Taboos
Consumer
attitudes and
opinions
Consumer
buying
patterns
Ethical issues
Consumer role
models
Major events
and influences
Buying access
and trends
Advertising
and publicity
Maturity of
technology
Technology
legislation
Research and
Innovation
Information
and
communicatio
ns
Competitor
technology
development
Intellectual
property
issues
10
Eco
reg
Red
carb
foot
Sus
Imp
adv
wea
2.1
It is crucially important to stakeholders that organizations are well
led and know what they want to be famous for. At its core is having
strong organizational vision and direction, and having the
confidence to make decisions to follow this through. It is quite
undoubted that those organizations that rate best among their
stakeholders are those with the greatest clarity of purpose
stakeholders want to know what an organization is doing to add
value to them.
Based on the same thought principle we at CHC have sworn in to be
proactive in our approach to keep our stakeholders informed and
satisfied. Just as with customer satisfaction, stakeholder perceptions
while influenced by communications have to be built on a solid
base. An organization that is clear about its objectives and
successfully meets them will be recognized as such by stakeholders.
Communication and stakeholder involvement are not always easy
since there may be a wide variety of organizations, people,
perspectives, and concerns involved. Be ready to assume the
responsibilities as well as the benefits that come with increased
involvement:
Pamphlets/Brochures/Newsletter
Personal Contact
Displays/Posters
Site Visits/Open Days
Advertising
Press Releases
Public Meetings
Letters
Stakeholder Interviews
Announcement Signs on Site
Focus Groups
Community Responsible Plan
Briefings
Incident Report
Immediate Response Statement
Response Case Study/Working Paper
Media Interviews
Education and Training Materials
Surveys
2.2
Human resource required to carry out the business will be allocated
through our resources plan. Our resources plan should include
documentation of what has to be marshaled to support our
operational and organizational plans. One purpose of a taking a
systemic look at resources is to glean every edge we can develop to
make our business plan fully operational. The company-level
resources plan is developed in conjunction with the other parts of
the business plan during the planning conference. A few resources
that our plan must address are:
Staffing levels
Information requirements
Facilities
Technology
Dollars
Time
Relationships with Business Partners and other companies
Market Image
Leadership
2.3
At CHC we have developed a new approach to addressing our
Performance Management needs. The following process outlines six
key steps in the cycle and how we must focus on the system itself if
we want better results from our employees:
Evaluate our current performance appraisal process. Look at
what type of feedback we are providing to our employees.
Determine if there is anything we need to change or add to the
evaluation itself. We may decide to build on what we already have
or to develop a new system altogether.
Identify organizational goals. Performance management
systems help rally staff members around our organization's goals
because they help staff know how they are to be involved in
reaching that goal. Take the time to clarify what our goals are for the
next year as a company.
Develop and Implement a Business Plan Assignment
items may be the same. However, since these are also based on
organizational goals, we will need to re-examine our goals for the
upcoming year.
There are four key steps in a performance measurement framework
the strategic objectives of the organization are converted into
desired standards of performance, metrics are developed to
compare the desired performance with the actual achieved
standards, gaps are identified, and improvement actions initiated.
These steps are continuously implemented and reviewed:
Initiate Improvement
2.4
Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even
$46,455
Assumptions:
Average Percent Variable Cost
33%
$31,125
Year 1
Year 2
Year 3
$943,882
$311,481
$0
$311,481
$632,401
67.00%
$1,085,465
$358,203
$0
$358,203
$727,262
67.00%
$1,248,285
$411,934
$0
$411,934
$836,351
67.00%
$236,592
$301,512
$307,512
$55,897
$75,564
$85,291
$0
$2,004
$2,004
$2,004
$996
$2,004
$996
$20,004
$15,000
$36,000
$0
$0
$373,501
$258,900
$258,900
$13,139
$0
$2,004
$2,400
$2,400
$1,152
$3,200
$2,300
$21,996
$18,000
$36,000
$0
$0
$466,528
$260,734
$260,734
$11,532
$0
$2,004
$3,000
$3,000
$1,320
$4,800
$3,300
$22,992
$21,600
$36,000
$0
$0
$490,819
$345,532
$345,532
$9,747
Taxes Incurred
Net Profit
Net Profit/Sales
$84,637
$161,123
17.07%
$87,220
$161,981
14.92%
$116,125
$219,659
17.60%
Balance Sheet
Assets
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Year 1
Year 2
Year 3
$222,186
$0
$222,186
$367,268
$0
$367,268
$540,938
$0
$540,938
$0
$0
$0
$222,186
Year 1
$0
$0
$0
$367,268
Year 2
$0
$0
$0
$540,938
Year 3
$21,213
$0
$0
$21,213
$177,050
$198,263
$185,000
($322,200)
$161,123
$23,923
$222,186
$23,923
$51,121
$0
$0
$51,121
$152,443
$203,564
$185,000
($183,277)
$161,981
$163,704
$367,268
$163,704
$59,270
$0
$0
$59,270
$126,055
$185,325
$185,000
($49,046)
$219,659
$355,613
$540,938
$355,613
2.5
To produce high quality products in an increasingly competitive
marketplace, the ability to efficiently discover, track, and correct
incidents or failures found during product development, testing,
and operations is crucial.
A failure reporting, analysis and corrective action system (FRACAS)
is a system, sometimes carried out using software, that provides a
process for reporting, classifying, analyzing failures, and planning
corrective actions in response to those failures. It is typically used
in a business environment to collect data, record and analyze
system failures.
failure,
however
3.1
The question is simple: Did the company hit the plan it established?
If yes, the organizational performance is acceptable. If the answer is
no, then excuses are not acceptable. If a company fails, then the
president must be responsible and should answer to the board of
directors for his or her failure to provide appropriate leadership and
managership of the organization and its plan. It is that simple.
Managers are held accountable for their teams using the same
command responsibility concept. The vice president is held
accountable for making the sales figures or the research and
development vice president is responsible and accountable for
bringing new products in on schedule. Vice presidents answer to the
president in the same fashion as the president answers to the board
of directorsno excuses. Their appropriate bosses likewise hold
other team leaders such as plant managers accountable.
We know from research that clear objectives with effective
measures can improve performance by over 30%. So that we can
have effective measures we need to monitor performance against
the objectives. The key to effective monitoring performance is to
identify a range of methods so we can then choose the method
thats easiest to apply and most effective. Lets begin with the easy
part monitoring performance against quantifiable objectives.
Monitor staff
objectives
performance
against
Methods:
quantifiable
Sales reports
Deadlines met
Error reports
Accuracy reports
Documents
Proposals
Plans
Budget forecasts
Widgets produced
Monitor staff
objectives
performance
against
behavioural
Observation:
Report
Feedback:
Customers
Suppliers
Team members
Other departments
How
to
Monitor
Staff
Objectives A Key Principle
Performance
against
The wider the range of methods the manager uses, the more
effective the monitoring will be because using a range of methods
means they will gain a more balanced view of the staff members
performance
This means managers can then give their staff the type of
performance feedback that staff tell us they want more of, because
they find it constructive and motivational, and which improves
performance
And of course we know what gets measured gets done and its
impossible to measure without monitoring!
3.2
An effective performance measurement system helps to drive an
organization towards the achievement of its strategic goals and is
the basis for management decision making. Key areas of focus
(Strategic Success Factors) are defined to identify areas where a
company must be ahead of its competitors to achieve competitive
advantage and Key Performance Indicators measure the
achievement of strategy implementation.
A strategy should be cascaded down an organisation to measure its
achievement at both enterprise-wide and business unit levels and to
define a decision-making framework and to motivate management
and employees.
Among the most frequently encountered issues in corporate
performance measurement at CHC is:
analysis
Lack of support for business decision making
Lagging result measures. Historical view of the business
Lack of clarity and consistency in management reporting
procedures, responsibilities, data sources, number and
contents of reports
Inaccurate and untimely management reporting
Excessive manual efforts in the reporting process that create
an administrative burden.
Performance measurement not linked to strategic goals
Insufficient control over corporate strategy execution.
3.3
Establishing effective performance management systems can have
significant benefits for our business, as it can lead to happier, more
motivated and better performing employees. Reviewing, refining
and implementing performance management systems are ways of
helping achieve these significant benefits.
Underperformance or poor performance can be exhibited in the following
ways:
to
follow
step
by
step
guide
to
managing
Once the problem has been identified and assessed, we should organise a
meeting with the employee to discuss the problem.
We should let the employee know the purpose of the meeting in advance
so they can adequately prepare for the meeting.
The employee should be allowed to bring a support person of their choice
or a union representative to the meeting. Employers working at best
practice will inform the employee that they can bring a support person as
a matter of process.
Step 3 Meet with the employee to discuss the problem
It is important that the meeting takes place in private and in an
environment that is comfortable and non-threatening, away from
distractions and interruptions.
We should begin by holding a discussion with the employee to explain the
problem in specific terms. From this conversation, the employee should
be able to clearly understand:
We should discuss the outcomes they wish to achieve from the meeting.
The meeting should be an open discussion and the employee should have
an opportunity to have their point of view heard and duly considered. We
should listen to the explanation of why the problem has occurred or to any
other comments the employee makes.
A date should be set for another meeting with the employee to review
progress and discuss the employees performance against the agreed
action plan.
We should keep a written record of all discussions relating to
underperformance in case further action is required. Generally, it may also
be used as evidence if legal action is taken about the matter.
Step 5 Monitor performance
We should monitor the employees performance and continue to provide
feedback and encouragement.
A meeting to review and discuss the employees performance should be
held even if there is no longer an issue. This enables both parties to
acknowledge that the issue has been resolved. We should provide both
positive and negative feedback to the employee and should work with the
employee to ensure that performance improvements are sustained.
More serious action may need to be taken if the employees performance
does not improve including further counselling, issuing formal warnings
and ultimately if the issue cannot be resolved, termination
of employment.
Termination of Employment
If an employees performance does not improve to an acceptable
standard, termination of their employment may be an option.
Employers cannot dismiss their employees in circumstances that are
harsh, unjust or unreasonable. What is harsh, unjust or unreasonable
will depend on the circumstances of each case. However, it is important to
be fair to employees particularly when it comes to termination of
employment. They should be given reasons for dismissal and an
opportunity to respond to those reasons.
Importantly, employers with fewer than 15 employees (based on a simple
headcount) will be covered by special dismissal arrangements, which are
different to those that apply to larger businesses. The special
arrangements that apply to employers with fewer than 15 employees are:
Employees will need to have worked for the business for 12 months
in order to be eligible to make a claim for unfair dismissal, and
If a small business employer strictly follows the small business
3.4
By moving beyond basic employee evaluation, job assessment and
performance management we can strategically improve employee
engagement, development and more. CHC has developed this fivestep process that can significantly help us improve our performance
management strategies.
1. Provide employees the opportunity to assess themselves. At
the same time a manager or supervisor completes a
performance appraisal, give the employee an evaluation form
and have them complete a copy as well. While you may think
that an employee will gloss over his own weaknesses, the
opposite is more often the case. People are typically harder
and more critical of themselves than others are. Getting their
input on their own performance can open up lines of
communication and allow the manager to more easily discuss
the differences in opinion and perception between the two
assessments.
2. Gather information from a variety of sources. Rather than
getting feedback and input only from the employees direct
supervisor, ask those who interact with the employee to
evaluate his performance as well. This might include
customers or clients, coworkers, other departmental and
executive level managers, team members, or anyone else who
regularly communicates or collaborates with the employee
and can provide information on his strengths and weaknesses.
3. Help employees to understand how their performance ties into
the companys overall vision. By letting an employee see the
big picture, reminding her often of the companys mission
statement, and clarifying how her contribution helps to fulfill
the goals and strategies of the business, you give an
employee a sense of purpose in her work. That makes it much
more likely she will perform her job as well as she can.
4. Provide continuing opportunities for employee development
and advancement. Using the performance evaluation as a
door to open discussion about the employees advancement
and training needs allows you to determine areas that need
improvement and help the employee work toward increasing
his skill and knowledge. Online training courses that
specifically address the recognized deficiencies can get the
employee back on track and moving toward increased
efficiency and effectiveness.
5. Employee evaluations offer a strategic means for rewarding
employee performance. Ensuring that employee performance
evaluations are directly linked to compensation and employee
rewards provides a fair system for monitoring pay raises and
company bonuses. Such a system can help motivate
employees to perform well, knowing that their future income
depends on it.
Effective performance management can be dramatically improved
by implementing these simple strategies and communicating their
importance to every employee prior to annual evaluations.
4.1
Benchmarking
Benchmarking is a systematic process of searching for and
encouraging the introduction of best practice. The three main forms
of benchmarking are:
(1)Results benchmarking (comparing performance within and
between organisations using performance indicators of
effectiveness and efficiency);
(2)Process benchmarking (analysing systems, activities and tasks
that turn inputs and outputs into outcomes); and
(3)Setting best practice standards (establishing goals and
standards to which organisations can aspire).
Benchmarking typically involves a number of steps. Whatever the
chosen approach or focus, the steps usually include:
4.2
You have four basic approaches to preparing your business plan:
(1)Prepare it yourself the old fashioned way. This means
scouring websites and reading books to learn how to prepare a
business plan.
(2)Prepare it yourself using business plan software. Most
software packages cost less than $100. They guide you
DISADVANTAGES
Very expensive in
terms of your time,
especially if you do
not have a strong
business and
financial background
(you can count on
300-500 hours in
most cases).
COMMENTS
This is probably
most appropriate for
an Idea Business
Plan or an Operating
Business Plan that
will not be shown to
investors.
DISADVANTAGES
COMMENTS
Most software
packages are not
very flexible.
However, you
should be very
wary about using
this plan for VC or
corporate
investors, since a
poorly written
business plan will
blow the only
chance you have.
Do it yourself
WITH
software
Relatively inexpensive.
ADVANTAGES
DISADVANTAGES
Relatively inexpensive
(under $5,000, and
sometimes even under
$1,000).
Hire an
INEXPENSIVE
business plan
consultant
COMMENTS
Same comments as
above. If you are
lucky, you may find
one of the few
inexpensive
consultants who
produce reasonably
good results. But do
you really want to
rely on luck as a
strategy?
ADVANTAGES
Hire an
EXCELLENT
business plan
consultant
DISADVANTAGES
COMMENTS
Fairly expensive
(usually well over
$10,000).
If you are
preparing an
Equity Funding
Plan and you have
never written a
funded plan
before, you should
give this option
serious
consideration.
It can be difficult to
distinguish between
the excellent and
the average
business plan
consultant (hint:
look at their track
records).
They provide an
objective outside
perspective, and will
challenge your
assumptions.
They perform
independent market
and competitor
research.