BM019-3-3Individual Assignment2Entrepreneurship (BM019-3-3)

Learning Outcome

Upon completion of this assignment, students should be able to:

i. Demonstrate knowledge and understanding of entrepreneurial management.

ii. Develop a capacity for informed critical understanding of environmental conditions and the ability to analyze current trends.

iii. Demonstrate entrepreneurial activities and competence building.

iv. Demonstrate an understanding of the strategy process.

Assignment Specifications

Mr Bernard has been operating his own canteen at ABC University for the past 15 years. This canteen serves breakfast and lunch at reasonable prices. Last month, Mr Bernard had received his permanent residence status from the Australia government. He plans to sell off his canteen business and migrate to Australia to stay with his family there.Upon hearing rumors that Mr Bernard is contemplating a sale of the canteen at ABC University, your boss approached Mr Bernard to discuss the possibility of purchasing the canteen. Mr Bernard offered to sell the canteen for the price of RM500,000.Since your boss is not sure whether it is a good buy at RM500,000. He asked you to give him a business valuation report for this canteen at ABC University.Your boss has given you the following information that he obtained from Mr Bernard and some other sources:a. Currently, ABC University has 10,000 students b. Most of the equipments, furniture and tools are bought about 5 years ago c. Currently, Mr Bernard is the manager and he has 10 staffs working under him. The staff turnover rate has been low, with 80% of them has been working here for more than 5 yearsd. Mr Bernard still has 6 years rental contract with the university and this contract will remain effective for anybody who takes over from Mr Bernard with the condition that university agree with it. The rental per month is RM6000.00e. There are no other competitors within 3km from the University

f. Canteens turnover and net profit for the last 5 years:Year Turnover Net profit

2007RM300,000RM60,000

2008RM350,000RM63,000

2009RM400,000RM60,000

2010RM450,000RM67,500

2011RM500,000RM60,000

g. Assets: Total tangible assets: RM300,000 (book value at time of purchase) Total liabilities: Nil

h. Some information for the going market rate in the last one year: CompanyTransacted selling price

Paradise Cafe at Smart High School (3,000 students)RM150,000

Moon Cafe at Twain University (15,000 students)RM600,000

Wan Cafe at Pan Corporation (6,000 employees)RM400,000

* For any information not given here, you are free to use your own assumptions.

Required:You have to prepare a business valuation report using the following: Executive Summary Opinion of value Assumptions and Limiting Conditions

Business Overview: History of company Services provided Education industry analysis and its impact on canteen business Production process Customers analysis Suppliers Human resources Description of facilities Furniture and Fitting Equipment and Machine

Financial Analysis: Asset valuation: Book value method Market valuation method: The going market rate method Income-based business valuation: Return on investment (ROI) method

Referencing

Assessment Method

The following assessment scheme will be adopted in order to evaluate the elements above:

CriteriaAllocation of Marks

Executive Summary5

Introduction5

Models & Conceptual Skills20

Integration and Synthesis20

Analysis & Interpretation20

Prescriptions/Recommendations15

References5

Structure & Layout5

Language & Clarity5

Marking Criteria

Marks are awarded based on the following guidelines:

GradeDescription of performance level

75% 100%You should be able to show good application of theories and concepts covered in the subject. Your business plan should be well thought, with a in depth analysis of all the necessary areas. It should have clearly written points showing originality of thought. You provide correct citations for resources used. No grammatical errors, spelling mistakes and appropriate conclusion. Sufficient references from various sources and not primarily from the Internet.

65% 74%You should be able to show proper understanding of the theories and concepts chosen from the topics covered in the subject. Your analysis are clearly written and stated, although the contents may not be properly described. Minimal citation problems relating to style and presentation. Sufficient points noted on company performance and improvement recommendations. Minor grammatical errors, spelling mistakes. Sufficient references but not varied.

50% 64%You should be able to show some understanding on theories and concepts taught in the subject. Citation problems and minor referencing problems. Grammatical errors and spelling mistakes. Poor references.

Below 50%You did not show understanding of the theories and concepts taught. No analysis given or little relevant points were given, disregarding the guidelines. Citation and referencing problems. Grammatical and spelling mistakes. Minimum references, questionable sources.

Submission and Administrative Information

Students should include the Coursework Submission and Feedback Form with their submission. The lecturer will give the CSFF before the submission dates. Plagiarism is NOT acceptable Representation of another person's work as your own, without acknowledgement of the source, for the purpose of satisfying formal assessment requirements is considered plagiarism. The possible consequences of plagiarism include:

Reduced grade for this module Referral for this module Failure of this module Expulsion from the Institution

You can avoid plagiarism by using correct referencing, attribution, and proper research technique submission. All submissions must be made before the stipulated time. If the work is submitted after this time it will be given 0 (zero). Wikipedia.com is not a valid nor reliable source for reference and will not be accepted in the assignment. This assignment should not exceed 2,500 words, excluding appendixes. Assignments that significantly exceeds the word count will be penalised (i.e. every additional 200 words will be penalised 2%)

Degree Level 3 Asia Pacific University of Technology & Innovation