Besides, there are people who want to meet or talk with their friends.- State management agency:+ Business Registration Office - Ho Chi Minh City Department of Planning and Investment re
CASH FLOW ANALYSIS EXERCISE
OVERALL OF THE PROJECT
Project description
- Name of the project: PM COFFEE
- Type of the project: Business plan providing beverage service
Coffee Fruit tea Milk tea Dessert
Black coffee Peach green tea Black sugar pearl milk tea Mochi cake Milk coffee Strawberry tea Matcha milk tea Tiramisu cake Capuchino Hibiscus tea Grass jelly roasted milk tea Macaron cake Cacao coffee Watermelon tea Roasted oolong milk tea Donut cake
- Project owner: Project team, including 05 members of the Project Management Class at Ton Duc Thang University
- Target customers: Students of Ton Duc Thang University and surrounding areas in District 7, who want a quiet space to study and research exercises Besides, there are people who want to meet or talk with their friends.
+ Business Registration Office - Ho Chi Minh City Department of Planning and Investment (registering for a business license)
+ Food Safety and Hygiene Sub-department of Ho Chi Minh City (certificate of food safety)
+ The suppliers: Trung Nguyen Legend Coffee, Chinh Son Tea Company Limited, ABC Bakery.
+ Landlord: Mr Long - real estate agent at S Home Company
Table 7: Brief After prediction of initial investment costs d) Employment
As PM coffee will open 24 hours a day so we will have 3 shifts per day (6am- 2pm, 2pm-8pm, 10pm-6am) so we assume that we will need 1 manager, 1 security guard and 2 service staff for each shift, the coffee shop also demands to have 1 accountant for the shop Theresore, in total, there will be 13 hired employees:
DRAFTING THE PROJECT
Outline of the main phases of the project
To complete the PM Coffee project as best as possible, our team drafted this project and divided it into 3 main implementation phases: a) Conception phase: from 1-Oct-2022 to 30-Oct-2022
Planning the concept and scale of the shop
Analyzing the market, competitors, and the customer's demand Analyze project using SWOT method
Analyzing the financial viability of the capital b) Definition phase: from 31-Oct-2022 to 6-Dec-2022
Choosing the location of the cafe's premises
+ Capital structure and the need for initial investment capital
+ Employee salary expenses by month/quarter/year
+ Forecast of expected revenue and operating expenses in 1 year, 2 years, 3 years, etc.
Making plans to manage and operate the cafe
Making marketing plan for coffee shop c) Execution phase: from 7-Dec-2022 to 1-April-2023
Buying the shop design and recipes
Signing all kinds of contracts with suppliers
Building menu, and serving process
Constructing the facilities and buying furniture and other necessary items Asking for a business license and food safety certificate
Hiring and training the staffs
Officially put into operation in the actual market d) Operation phase: from 2-April-2023 to 1-April-2027
PROJECT ANALYSIS AND EVALUATION
Market analysis
In this section, we have collected more than 100 surveys of students and residents living in the Kim Son residential area Based on the survey results, we can analyze the market, offer suitable products, and set the prices.
Currently, people come to the coffee shops not only for refreshments but also for many other purposes such as studying, working, and talking with friends, The survey showed that most of them usually go to a coffee shop more than 3 times a week, about 60.8% The second place belongs to the group of people who go to the coffee shop to study 2 to 3 times a week, around 25%:
My team has come to some impressive conclusions based on a survey of students’ needs for an ideal learning cafe According to 81% of respondents, the first and most important factor that influences customers' decision to use a coffee shop is a reasonable price Next, customers' demand for studying and working in cafes open 24 hours a day is quite high, accounting for 75.2% However, this inadvertently creates a bit of difficulty for PM Coffee because opening a shop overnight is relatively complicated Silence is indispensable if you want to focus on studying, it is not surprising that it ranks 3rd and accounts for 70.2% In addition, we also received many
21 other requests, such as for friendly staff, on-trend and allowed pets at 24.8%, 20.7%, and 14.9%, respectively:
It can be seen that the need to find a suitable cafe for studying and working with young people is very high The evidence is that 62% of search demand is in the 18-25 age group, which is the age of university students In addition, the proportion of working people is also relatively high, about 29.8%:
Since PM Coffee's customers are mostly students, the price must be inexpensive Here, most people accept prices below 30.000 VND At such a reasonable price (around 30.000 VND), PM Coffee make sure that we will provide a delicious and nutritious menu while ensuring prices and hygiene for students:
In the Tan Phong area in general and the Kim Son residential area, regular customers will go to Ong Bau restaurant The proof is that the rate of this restaurant is 39.5%, accounting for the highest proportion in the competitor chart Mr Bau provides all the following convincing factors: quiet, reasonable prices, diverse drinks, and open
24 hours, The lowest is Open Glass, with a 26.9% rate, despite the reasonable price, but the shop does not serve after 11 p.m., which causes Open Glass to lose many customers:
In summary, through the survey of more than 100 students at Ton Duc Thang University and people of the Kim Son residential area, we give the following conclusions:
The need to find a suitable coffee shop for students has relatively strict regulations.
Minimum requirements must meet the criteria: being open 24 hours a day, having reasonable prices, and having a quiet space.
The price is suitable for students, so it is less than 40,000 VND.
Coffee shops that meet the above criteria will be loved by most students and working people, for example: Ong Bau, Bamos, Open Glass
Project analysis
With the strategy of diversifying products, to create more choices for customers, PM Coffee has released coffee, milk tea, fruit tea, and dessert Besides, the above products all ensure food hygiene and safety, suitable for daily consumption To avoid confusing customers, we specially train knowledgeable cashiers to advise customers on the right products for their needs when choosing.
PM Coffee offers a variety of drinks and cakes, with different prices to suit the needs of many customers However, most still fluctuate at a level enough for students to pay:
No Products Unit Sales price (VND)
9 Black sugar pearl milk tea
11 Grass jelly roasted milk tea
Table 8: Detailed price list of products
Suppliers play an important role in the success of a business Creating good relationships with quality suppliers will bring great benefits to importers However, finding a suitable material supplier for PM Coffee is not easy We must ensure the factors of a reasonable price, quality materials, and other requirements of the contract.
Through searching and consulting with friends and other coffee shops, we have selected a few ingredient suppliers for PM Coffee: a) For coffee products: We choose supplier Trung Nguyen Coffee
Trung Nguyen is the largest coffee brand in Vietnam With more than 25 years of experience, Trung Nguyen has developed a chain of large and famous coffee shops in Vietnam and some other countries around the world So, the quality of the coffee ingredients is not in dispute The process of picking 100% fully ripe coffee by hand, natural fermentation with strict brewing conditions, international standard roasting, testing, and tasting in batches to ensure the best quality products reach people for consumption in addition, the source of premium, carefully selected coffee materials, ingenious mixing recipes, and modern production technology have brought quality and prestige to Trung Nguyen for more than 25 years Trung Nguyen Coffee has become one of the coffee suppliers for PM Coffee We guarantee that each cup of coffee delivered to our customers will be made from delicious coffee beans.
The types of Trung Nguyen coffee that PM Coffee imports are:
Whole-roasted Trung Nguyen coffee
Whole bean Trung Nguyen coffee b) For fruit tea and milk tea products: We choose supplier Chinh Son Tea company limited
Chinh Son is a tea company with nearly 20 years of experience Supplying green tea, black tea, oolong tea, matcha, sencha, genmaicha, houjicha, and instant tea, to business agents throughout Vietnam Chinh Son's tea leaves are required to meet quality standards through the following criteria: Organic, environmental, and safe In there:
Organic: all virgin areas selected by Chinh Son must be cultivated with 100% organic technology.
Environment: Chinh Son understands that for sustainable development, it is necessary to protect the environment for the social community
Safety: All products of Chinh Son are only put on the market when they have been censored for the absolute health and safety of users.
Currently, PM Coffe is importing the following items:
Japanese tea: modern tea, suitable for office workers, students, and students.
Tea cakes, tea ice cream products with modern Japanese style.
Basic types of tea such as oolong tea, green tea, lotus tea, and jasmine tea. c) For dessert: We choose supplier ABC Cake Company
Today, ABC Bakery has more than 30 stores not only in Ho Chi Minh City but also expanding to other provinces such as Dong Nai, Binh Duong, Tien Giang, Not only that, but ABC bakery is also gradually asserting and identifying itself with the Southeast Asian market with the initial presence of a branch in Cambodia.
As a brand known for its quality and delicious products from bread, cakes, cakes to other products, ABC Bakery always has a wide variety of items at reasonable prices Maintaining the tradition of product quality, besides constantly improving methods, and applying advanced techniques, ABC Bakery always wishes to develop to meet more and more increasing demands of consumers.
Some products at ABC ensure all 3 criteria: no refined sugar, no preservatives, and no food additives So, customers can feel secure when experiencing PM Coffee's pastry products without worrying about the price and quality of the cakes.
4.2.3 SWOT evaluation and competitiveness of PM COFFEE a) The market overview
The most common option for both men and women when finding thr locations for leisure, studying, and working among young people is a coffee shop One of the reasons is Vietnamese typically drink coffee According to the International Coffee
Organization (ICO), Vietnam is a second-world coffee exporter, accounting for about 10% of the export turnover of the country
In addition, coffee symbolizes both a distinct culture and the normal way of life of Vietnamese people Consequently, the coffee market is a challenging but lucrative one for startups. b) SWOT analysis
After extensive investigation and analysis of market dynamics, significant target markets, and rivals The following is a clear analysis of PM Coffee's SWOT:
- The location is in the center of District 7, with a focus on universities and a lot of students there.
- The space is spacious and serene, making it perfect for working, studying, and spending time with friends.
- A fresh, striking design that combines elements of the classic and modern styles gives clients a sense of coziness, warmth, and relaxation, encouraging them to return.
- A wide range of goods, including a wide selection of drinks and numerous delectable and lovely sweets, which satisfy the demands and preferences of young people
- Besides that, prices of goods are in line with students' abilities, and several student-specific discounted schemes are available.
- Having a reliable source of food and drink on the market, so people don't have to be concerned about the product's quality or the labor used to manufacture the products.
- Students can reserve rooms to study more privately in groups You will receive a 10% discount, making PM Coffee unique and more alluring than other coffee shops, especially when making reservations and making full purchases in groups of more than
- Human resources in the service industry are not few, but experienced, skilled, and high-quality human resources are not many Most of the staff working at the cafe are students, students, and young people in general Although they are dynamic, flexible and have enthusiastic friends, they have not been trained much The selection and training of human resources are one of the difficulties when opening a cafe that you need to face.
- Opening a cafe is more expensive because the raw materials of coffee beans also have a higher price than other drink ingredients, especially roasted coffee This is considered a big difficulty when opening a cafe that PM Coffee needs to face, calculate it reasonably.
- Products will easily appeal to tastes with a varied and well-researched menu.
- Concentrate on the caliber of the food and drink Additionally, by continually attending to customer needs, businesses will have the chance to draw in new clients.
- Few cafes on the market provide bookable rooms for conferences and study groups, thus PM Coffee's investment in bookable rooms will set it apart from the competition, especially when PM Coffee seeks out young people who come to the area to study, work, and communicate with each other.
- When growing the market, one factor that must be considered is the price of food and beverages In Kim Son residential area, there are many cheap coffee shops for students and have been open for a long time such as Ong Bau, Open Glass, Lalo Therefore, the competitions of PM Coffee is extremely huge
- Coffee is a popular drink but difficult to please people Although coffee is a popular drink, it is difficult to prepare and has the most diverse flavors Just change a little of the ingredients, a little bit of quantity or the coffee beans are not ripe, the coffee is not roasted properly, and the taste of the coffee cup has also changed Each
29 type of coffee bean, each way of mixing ground coffee will bring a different coffee flavor That's not to mention the cup of drink is also affected by the temperature, the amount of water, the skill of the bartender, Therefore, finding a cafe is not difficult, but finding a good coffee flavor is much more difficult In order to retain customers,
PM Coffee's coffee must be unique, and retain an unforgettable attractive taste If PM Coffee is negligent in doing something wrong, the customer will not come back next time
ORGANIZING, PLANNING, AND IMPLEMENTING PROJECT
Organization of the project
The following is an organizational structure diagram of the management team of the PM coffee project based on the functions of the departments.
We also have the organizational diagram of the project's organizational structure of the business team when the PM Coffee is put into operation shown below:
5.1.2 General responsibilities of department/position in the organizational chart. a) Management team:
Each department in the organization has the following responsibilities:
- Executive Department: This is a head of organization and it is responsible for creating business ideas, operating, and supervising the business activities of the shop
In addition, it is also take on planning the maintenance and development of resources as well as increasing the shop's finances.
- Marketing Department: Responsible for building marketing strategies, building images, and the brand of the shop, and holding promotions and advertisement campaigns Besides, it also has the task of surveying customer needs and researching the market.
- Administration and Human Resources Department: This department must plan to recruit and train employees as well as build a salary and bonus system suitable for the shop, then it must monitor and evaluate the employees Not only that, but this department also completes administrative activities such as applying for business licenses and certificates, storing and arranging documents, and activities related to national regimes and policies
- Professional Department: Responsible for activities related to the shop's business activities such as beverage processing or new product line development It is also responsible for the storage and maintenance of ingredients, machinery, and the establishment of the shop's menu and service procedures.
- External Relations Department: it is responsible for finding reliable partners and suppliers, as well as having a role in liaising, planning, and maintaining cooperative relationships with them In addition, the external affairs department must also contact and resolve customer complaints. b) Business team:
- Manager: This is the person who will be the main responsible person at the shop during their shift, they will be responsible for the operation of the shop as well as the staff and handle unexpected situations at the restaurant Next, the managers need to manage daily input and output materials and work as a cashier in their shifts They are
39 also obligated to report activities at the shop to management departments at the end of the month
- Accountant: The person must track and record to summarize costs and determine revenue and profit of the tax reporting shop and do the financial statement
He or she also needs to pay wages based on the payroll.
- Service staff: Serve customers with professional attitude, prepare drinks at the request of guests, and clean the working area when on shift and during shift delivery.
- Security: The person who keeps the motorbike and protects the property of the customers and protects the property of the shop.
5.1.3 Work Breakdown Structure (WBS) and Responsibility Matrix a) The definition of Work Breakdown Structure
Tasks can be made more manageable and approachable by using a common productivity technique called breaking work For projects, the Work Breakdown Structure (WBS), one of the most significant projects management documents, is the tool that applies this technique to projects It does so on its own, integrating scope, cost, and schedule baselines to ensure project plans are in alignment. b) The benefits of Work Breakdown Structure
The benefits that PM COFFEE received when building the good Work Breakdown Structure are:
- Creating a common perception at work: Through WBS, the work contents of the project are transparent, thereby reducing the deviation of the scope of work with the person in charge of that work.
- Build a project schedule: By breaking down the work into smaller pieces, we can clearly see the time and resources for each task and plan the allocation for those tasks.
- Reduce project risk: Building a good WBS will help us reveal problems in the project early When a problem is reflected in the WBS, as the coffee owners, we can quickly gauge its impact on the whole process through a clear work hierarchy The diagram below shows the WBS of this project from the Conception phase to the Execution phase:
Figure 4: Work Breakdown Structure b) Responsibility Matrix
After working together for a long time and as well as having a good understanding of everyone’s strengths and weaknesses, based on the above WDS we have created the Responsibility Matrix of the project This responsibility matrix is based on the RACI method, in which:
R = Responsible: The person/department responsible for the implementation.
A = Accountable: The person who will be responsible for approving those projects and plans.
C = Consulted: Sometimes doing a project/plan if it's R, before submitting it for approval, you also need consultants (advisors) somewhere to be more complete when doing it.
I = Informed: People who may not be doing anything on that project/campaign, but who need to be informed.
Planning the concept and scale of the shop
Analyzing the feasibility of the project
Making marketing plan for coffee shop
Buying the shop design and recipes
Building menu, and serving process
Asking for licenses and certificates
16 Hiring and training the staff A I R R C
Project planning
5.2.1 The analysis of Gantt chart a) The definition of Gantt chart
Gantt chart is a project management tool that supports project planning, scheduling, and monitoring The planning and scheduling, remote work collaboration, resource allocation, and task delegation will all benefit from using a Gantt chart.
A horizontal bar graph used in a Gantt chart provides a visual representation of all data Project managers and team members can quickly scan the chart to see the task schedules, dependencies, and progress Teams can deliver on time when all tasks are planned and made visible in one location. b) The benefits of Gantt chart
- Manage a lot of information at the same time: With a simple diagram presentation consisting of vertical and horizontal axes as the main Gantt charts help us understand information and manage it easily Specifically, the project starts and end time, the process, the assignment of tasks, the person responsible for the implementation of the project, etc.
- Improve productivity: The way work is assigned, and the progress of implementation is shown directly in the diagram Helping everyone in the PM Coffee
44 project understand the importance of each stage As a result, our members can actively complete their work optimally.
- Effective use of human resources: Gantt charts will help us plan and implement projects and have the most overview of the project This supports us to know how to distribute work efficiently, and ensure human resources are used rationally and optimally. c) The analysis of Gantt chart
After a long discussion and with the agreement of everyone, we came up with a job description and analysis table below:
Task Start date End date Length
1 Planning the concept and scale of the shop
3 Analyzing the feasibility of the project
6 Making business management plan 22/11/2022 6/12/2022 2 weeks
7 Making marketing plan for coffee shop
9 Buying the shop design and recipes 14/12/2022 21/12/2022 1 week
10 Signing contracts with suppliers 22/12/2023 29/12/2023 1 week
12 Building menu, and serving process 6/1/2023 13/1/2023 1 week
14 Asking for licenses and certificates 12/2/2023 24/2/2023 2 weeks
15 Making employee management plan 24/2/2023 2/3/2023 1 week
16 Hiring and training the staff 2/3/2023 1/4/2023 4 weeks
Table 14: Job description and analysis table
The table contents of 16 jobs with their descriptions and implemented timeline, and this project will be conducted in 25 weeks Based on the Job description and analysis table above, we have a Gantt chart for PM Coffee project like this:
Jobs on the Critical path Jobs not on the Critical path
Figure 5: The Gantt chart of PM Coffee project
From the Gantt chart we know that the two jobs that we spend the most time completing are job 13: Building the facilities and job 16: Hiring and training the staff, specifically 4 weeks to complete For other jobs, we will take about 1 to 2 weeks to complete Besides, our project has 2 important jobs that are not on the Critical path, which are job 7: Making a marketing plan and job 9: Buying the shop design and recipes, we will spend a period implementing it parallel with other jobs.
From the data we gathered, here is our detailed budgeting table for this project based on market price:
Categories Quantity Price/unit (VND) Total value
1 Ground deposit 6 months 60,000,000 VND 360,000,000 VND
6 Cash register bar 1 unit 15,000,000 VND 15,000,000 VND
7 Drink counter 1 unit 20,000,000 VND 20,000,000 VND
10 Cake cabinet 1 unit 1.000.000 VND 1.000.000 VND
10 Coffee machine 2 unit 8,500,000 VND 17,000,000 VND
15 Big electric kettle 1 1,505,000 VND 1,505,000 VND
Organized the grand opening of the shop: 8,000,000VND
Project Control
5.3.1 Techniques and tools to measure performance
5.3.1 Techniques and tools to measure performance
There are many ways to measure employee performance that businesses can choose from However, you can track and apply the following best practices:
Using a ranking chart is an effective method that provides a full range of specific metrics to help managers compare performance among employees easily With the ability to fill quickly, these ranking charts are made frequently From the lowest to highest performance numeric scale rankings, businesses can quickly identify areas for improvement CRM (Customer relationship management) is the most effective tool for managers to monitor and evaluate the work quality of everyone, control work progress to ensure the achievement of set targets.
Sometimes businesses will not be able to see the performance of all their employees Therefore, cross-evaluation is an effective way of measuring performance that is recommended to apply In this way, business leaders can easily collect data about employees through those who have worked with them.
Collect evaluation from direct manager
This is considered a great tactic that should be applied because it is suitable for employees who like direct feedback and have a desire to voice their wishes.
Time management is the process of planning and practicing conscious control over a unit of time spent in an activity or series of activities, to increase efficiency, effectiveness, or productivity.
PM Coffee will conduct project time control through 07 items: schedule management planning, business activity definition, activity arrangement, resource estimation, completion time, schedule development and schedule control:
- Schedule management planning: Create policies, procedures, and documents for the preparation of the schedule At the same time, it provides guidance and control over the processes in the PM Coffee project construction model.
- Activity definition: At this process, the controller will define and plan specifically to create the product and assign it to the next processes Break down jobs for easy quality control and correction.
- Organize activities: Plan and define relationships between tasks and projects to achieve peak performance.
- Estimating resources for activities: It is the process of calculating and determining the materials, human resources, etc,… for each phase of the project This process helps us to control the right number of resources while maintaining high efficiency in work.
- Estimated completion time: Provide the time required to complete each activity.
- Develop a schedule: Analyze factors such as order, time, resources, and other activities to create a suitable schedule This factor helps to create the project's schedule baseline and determine a specific end date.
- Schedule control: Control and update the progress of this coffee project.
Cost control is a regular and continuous management activity throughout the construction investment process from project formulation, project implementation to completion, and when the project is put into operation without breaking the budget. Costs have been determined to ensure the project is effective, bringing benefits to the investor.
To control the cost of this project, we will estimate the cost of this business model with statistics and estimate the cost of completing the project Next, determine the budget required for this project Finally, control these costs by making expense reports, measuring work performance, and checking expenses.
Quality control is the control of the processes that create products and services through controlling factors such as people, machines, materials, methods, information and the working environment.
To achieve standard quality, it is inevitable that the requirements for each work component are available We will proceed to develop the plan, requirements and objectives of this model Analyze the risks that may affect the work Select the tools, equipment, and resources needed for the model Next is project control by managing and checking progress At the same time, supervise the project according to the construction requirements that were planned from the beginning, according to the regulations and with the right quality Always check the condition of the materials and other criteria Finally, propose solutions and corrections when there are signs of deviation from the trajectory.
Risk management is the process of identifying, analyzing, measuring and evaluating risks, to find measures to control and overcome the consequences of risks for operations for optimal use of resources.
When establishing a project, we face the following risks: Financial risk, time risk, human resource risk, material and supply operational risk, and operational, risks of meeting customer needs, etc.
Therefore, when the causes of the risks are identified, and then we set up measures to address those risks The processes are as follows:
+ Risk identification: It is necessary to identify and assess threats that negatively affect an activity or project The more risk factors we identified, the more risk factors we could include in the general system Instead of having to report through many levels, any employee can see the types of risks, thereby speeding up the work of the project.
+ Risk analysis: Once specific types of potential risks have been identified, the organization needs to analyze the risks To determine the severity and scope of a risk, it is necessary to consider the probability as well as the impact of that
53 risk on the business, thereby ranking the risks to find ways to cope, find solutions to prevent, eliminate, limit or mitigate damage.
+ Risk assessment: We further evaluate each potential risk after determining the likelihood that the potential risk will occur and the corresponding consequences There are large risks that must be avoided, there are smaller risks that the organization can ignore Risk rating is indispensable because it helps to get a holistic view of the impact of risk on the entire business Each type of risk will have a different treatment, depending on its severity There are two types of risk assessment: qualitative risk assessment and quantitative risk assessment:
Qualitative risk assessment: from the collected data to assess that risk with the results presented in the form of a table, listing all identified hazards with mitigation measures, analysis type of risk However, most risks cannot be quantified.
Quantitative risk assessment: analyzing and calculating the frequency and consequences of incidents based on methods and data collection. Quantitative risk assessments are easier to automate than qualitative risk assessments and are often more objective.