Small Business Management -Assignment-

TC/IS/2011/MS/118Small Business Management : GMT – 4213Department business and Management StudiesFaculty of Communication and Business StudiesTrincomalee CampusEastern University, Sri Lanka

( Business Plan )

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Business plan

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KPWDR Weerasinghe, Rasa Foods, No.12/B, Kandy road, Dambulla. T.P.+94777207092,+94662234569 Email. rasafood@gmil.com

Räsa Food

Stay with freshness..

Content

Topic Page No. 01.Executive Summary 4

02.Vision and mission 5

03.Company Overview ………………………………………………………………………………………………6

04. Marketing Plan ……………………………………………………………………………………………...7

05.Management plan ………………………………………………………………………………………...…...10

06.Operating plan ……………………………………………………………………..……………………..13

07.Financial plan ………….………………………………………………………………………………...17

08.Appendix

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01. Executive Summary

Rasa Food is one of fast food store that provides the best food service with quality products made with local ingredients. As well as it has best hospitality services surrounding the organic environment. Today most people are suffering from some diseases such as diabetes, blood pressures, cancers and fatty levers due to the bad food habits of the human. Therefore, the people who are suffering from these diseases are trying to use the local products.

We have forecasted to achieve an annual net profit of Rs.300,000 by the end of year 2017.All from an initial planned investment of Rs.800,000.We have currently invested Rs.300,000 and are now looking for an additional investment of Rs.500,000 to enable the business to start up.

Most people adapt to the fast foods due to the limitation of time. Every time they use foods which including huge amount of fat, carbohydrate, colouring, sugar and also various soft drinks. We try to target the customers who re working with limit time, suffering from some diseases. As well as most foreigner like to use the local foods and beverages to take experience when they are travelling. We already provide the service within the well-established natural environment.

The Rasa Food organization does their operation as a sole proprietorship and small business including 10 employees. The owner of the Rasa Food is the manager of its. Apart from the 09 employees, one accountant will be recruited to maintain the daily exchanges and financial statements.

The business location of Rasa Foods is the Kandy road, Dambulla. When designing the service environments, landscaping and some interior designing will be planned to use without harming the environment. Mostly we plan to create the environment by using some materials which are being used by the villagers such as (traditional kitchen equipment) pots for cooking, banal eves, with equipment which is made out of Palmyrah tree leaves or coconut tree leaves for serving. Dambulla area is famous or the farming. Mostly, Kurakkan, Undu, Rice and other farming products are grown in the rural area of Dambulla such as Kandalama and Sigiriya.

Now the trend is moving from western foods to foods with local ingredients based on the customer preferences. That is the business opportunity was identified to fulfil the market demand.

02. Vision and Mission Statement

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Vision

‘’ To provides the freshness for a healthiest life ’’

Mission

‘’ We are providing local tasty for the customers with quality product and hospitality under the natural

servicescape ‘’

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03. Company Overview

Rasa Food is one of fast food store that provides the best food service with quality products made with local ingredients. As well as it has best hospitality services surrounding the organic environment.

We hope to provide the service in the attractive servicescape including environment as a village with the norms and all the treatments as villagers. Mainly, the environment provides more relaxation to the customers without unexpected situation.

We are trying to provide all the products related with the environment (organic) without using meet and fish, and also all the ingredients will be supplied assist with the local farmers for low cost but some raw materials are grown in the service place. We will arrange all the aspects related with this small business with aim of attract the customers who are preferred to use the local foods and some cool drinks such as steam hoppers, hoppers, cutlets, pittu, dose, roti and juice with water melon, pineapple, tamarind, papaya, passion fruit, soup.

Nowadays, most people are like to eat organic foods based on some health issues. Some people who are living in foreign countries and town areas also like to use the domestic cuisine. As well as, today most people are suffering from some diseases such as diabetes, blood pressures, cancers and fatty levers due to the bad food habits of the human. Therefore, the people who are suffering from these diseases are trying to use the local products.

We have forecasted to achieve an annual net profit of Rs.300,000 by the end of year 2017.All from an initial planned investment of Rs.800,000.We have currently invested Rs.300,000 and are now looking for an additional investment of Rs.500,000 to enable the business to start up.For the food production process we will recruit local people who are expert for cuisine of local foods and beverages and to provide best hospitality services.

The main objective is increase the customer preference under the better environment while increasing profit and sales per annum. In addition to that we expect to continue long-term sustainability to the society.

Goals

Grow the business by approximately 5% each month. Increase the customer retention rate by 10% each month. Minimum impact to the environment and society. Identify the organic ingredients from the environment.

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04. Marketing plan

4.1 Market analysis

Foods and beverages are urgent need of the human life. In past, most Sri Lankan fulfils their foods and beverages by using vegetables, leaves, and fruits. They not much concern about the fish and meets and they not concern about oily (fat) foods. Mostly they organically eat and cook the foods and other beverages. Therefore they were able to spend their life style with healthy life and healthy body.

But nowadays, most people adapt to the fast foods due to the limitation of time. Every time they use foods which including huge amount of fat, carbohydrate, colouring, sugar and also various soft drinks. We try to target the customers who re working with limit time, suffering from some diseases. As well as most foreigner like to use the local foods and beverages to take experience when they are travelling. We already provide the service within the well-established natural environment. Anyone who prefer to the friendly environment can come and take the foods and beverages under the few of local resources. The young couple also come and eat foods with local beverages in the pleasure times. Most people are travelling for the pleasure, pilgrimages and some of reasons. If they want eat some things when travelling, they can come and taste the local foods and relax under the organic environment.

Now the trend is moving from western foods to foods with local ingredients based on the customer preferences.

4.2 The competition

Nowadays, there are some competitors in my business area. When analysing the market, It clearly seen that some business are doing fast food store and their customer bases. There are some strongest competitors such as Perera & Sons(P&S), Mango Mango(Alankulama), Benthota Bake house and also small competitors such as Ninu, Asela bakers and other grocery stores but, as a small fast food producer, Rasa food have distinctive competencies to face the rival in my business areas. It may be the competitive advantages to the success of my business.

Then, from the starting point of my business I try to response against dynamic business changes by adding more competitive advantages to my business and convert it to the sustainable competitive advantages while enhancing the customer relationship.

4.3 Marketing Strategy

Product Rasa food has a variety of foods and beverages made with the local ingredients without fauna (meets and foods). When I select this name as ‘’Rasa food’’, I concentrated the meaning with aim of to give a quality of food, like ‘’tasty foods’’. The product is include :

Item Ingredients01.Stream hoppers White rice flour , Red rice flour02.Hoppers White rice flour03.Cutlets Green jack fruit04.Pittu Kurakkan, Corn flour , Madu flour05.Dose Undu flour06.Roti Kurakkan flour, Corn flour, White rice flour with sambola

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07.Juice Water melon, Pineapple, Tamarind, Papaya, Passion fruit and mix fruit08.Soup Mushroom, Vegetables, Leaves09.Sweet Kawum,Undu Walalu, Kokis,10.Wadei Undu flour and white rice flour with sambola Table 01: foods and beverages with ingredients

Under the business logo, I expect to give the idea that native foods and beverages. Therefore, the green logo was created with the cutlery. The slogan is mentioned as ‘’ Stay with freshness’’. Customer can easily identify and memorise the slogan and it also give some enthusiastic to customer with to make the positive contribution to sale.

Räsa Food

Stay with freshness.. Figure 01: Business logo with slogan

Distribution Products will be distributed to final customers through the fast food store in Dambulla within the well-designed landscape area.

Pricing We always try to continue the affordable price to the customer purchasing power. When we determine the cost for pricing we consider the total cost as;

+ +

Figure 02: cost determination for pricing

Based on that, the price of product is:

Item Price (Rs. per item)01.Stream hoppers 402.Hoppers 1503.Cutlets 2504.Pittu 2505.Dose 1006.Roti 1007.Juice 4008.Soup 50

Table 02: Price of products

Promotion To pursue the customers and creating customer awareness, we use some promotional tool such as social media (Face book), bundled price, publicity events (CSR activities) and catalogues.

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Cost of goods offered Selling cost Overhead cost

People Our personnel will be recruited from the villages near to the business place with best way of talking and neat appearances. We already put 10 employees for the cuisine and other works. We use green colour uniform to them related with the organic environments and foods.

Physical evidence When, planning the business environment, the in store atmosphere is important condition. Specific interior design (colours), exterior facilities (parking, landscaping), ambient condition re used to enhance the customer convenience related with the concept of village.

Process All the cuisine process will be done in front of the customers by using pots without using plastics and aluminium. Therefore it is easy to serve the hot foods with freshness.

4.4 Market Segmentation and targeting

Figure 03: Market Segmentation and targeting

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A

B

C

D

E

FMarket segment A- Travellers (domestic, foreign)

Market segment B- Business people and workers

Market segment C- Youngest

Market segment D- Patients

Market segment E- Environment friends

Market segment F- Others

05. Management Plan

The Rasa Food organization does their operation as a sole proprietorship and small business including 10 employees. The owner of the Rasa Food is the manager of its. Apart from the 09 employees, one accountant will be recruited to maintain the daily exchanges and financial statements.

5.1 Organization hierarchy

Figure 04 : Organization hierarchy of Rasa Food

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Manger

Employee – A Employee – B Employee – C Employee – D Employee – E Employee – F Employee – G Employee – H Employee – I

Accountant

5.2 Business Details

Rasa Foods.

No.12/B, Kandy road, Dambulla.

T.P.+94777207092,+94662234569 Email. rasafood@gmil.com

VAT Details: Not VAT Registered

Legal Status: Sole Trader

Financial Year Start Month: April

5.3 Key people

01.Ms. KPWDR Weerasinghe Job title: Owner and manger

Skills Qualified with a degree of B.Sc (Mgt) sp. Marketing and as my experience , I have acquired a number of skills. These include being able to manage people and deal with pressurised environments, to being able to design a menu and select quality food. I have a local passion for food, and beverages. By using these skills and my interest in food, I hope to create a highly successful specifics experience for my customers.ResponsibilitiesAs well as helping to serve in the local foods and beverages, and ensuring the customer experience is right: I will be responsible for sourcing the local ingredients by visiting farmers, growers and bakers in the region. From being a chef, I have a number of contacts in the area, and will use these contacts to source the best ingredients and prices.

02.Mr. KMDJ JayawickramaJob title: Accountant

SkillsQualified with a Diploma in Accounting in Open University and completed AAT, Sri Lanka. He has acquired a number of skills related with Accounting & Financial Management. He has abilities to effectively manage the financial situation of the organisation.

ResponsibilitiesAs well as managing the financial situation to serve in the local foods and beverages, and ensuring the customer experience is right: He will be responsible for providing the well – managed financial statements and hold down daily entry book.

5.3 Bank Details

Commercial Bank PLC. Main Street,

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Dambulla. T.P +94667896540

We have an agreed overdraft limit of Rs.200,000 for the first 12 months.

5.4 Employees Details

Employees are selected based on the ability of cuisine and efficiencies of them. After recruitment, one month probationary periods will be given. The quality of the workers will be evaluated while this period then, after end of the month they become as a permanent worker of the Rasa food.

Following things are the minimum requirements to be fulfilled by the employees:

Age limit between 30-45. Neat appearances and cleanliness. Communication skills. Experience(not essential)

The employees are selected by conducting a test.

Selection test

We will give a small tsk to prepare the one meal of the menu. We will give all the ingredients to prepare those foods. Cleanliness, material handling, time management, and tasty of food will be evaluated after finishing of the cooking.

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06. Operating Plan

6.1 Location Decision

I considered main factors when selecting this place such as customer accessibility, business environment condition, availability of resources, the entrepreneur’s personal preferences, site availability and cost. As, business location of Rasa Foods, I selected the Kandy road, Dambulla. These are the distinctive competencies of this place.

Convenience place to customers. Attraction place to do this business. Mostly, Dambulla is a hub of tourism (Central point of the Sri Lanka). Tourism attraction place. Easy to supply row materials for the production process. Near to A9 road.

According to my business place, it is possible to supply the row materials on times. All of the local ingredients are available in this place and also easy to provide the labours for its.

6.2 Designing the physical facilities.

When designing the service environments, landscaping and some interior designing will be planned to use without harming the environment. Mostly we plan to create the environment by using some materials which are being used by the villagers such as (traditional kitchen equipment) pots for cooking, banal eves, with equipment which is made out of Palmyrah tree leaves or coconut tree leaves for serving. The following things are considered when designing the environments;

Exterior Appearance Interior Appearance Ambient Conditions Interpersonal Factors Employee Appearance Employee Behaviour

6.2.1 Servicescape of the business

Facility exterior -Exterior design -Signage -Parking -Landscape -Surrounding environment

Facility interior -Interior design -Equipment

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Other tangibles -Stationery-Billing statements-Reports-Employee dress-Uniforms-Brochures

-Signage -Layout -Air quality/temperature

When designing the service environments, ambient condition is directly influence to the customer satisfaction. Ambient conditions-Temperature-Air quality-Noise-Music-Odor-Colours

Therefore, I considered colours and its influences to the business.

6.3 The Operation Process

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Inputs

Raw materials Cash Labour Equipment Information

-Designing -Cleaning

-Processing -Treating

-Cooking -Storing

Operations

-Supervising -Instructing

- Quality goods - Effective Service

Outputs

Figure 05: Operation process of the production

6.3.1 Raw Materials

For the production process, I concern to use some raw materials and also all the raw materials are taken from the selective farmers and also some are grown around the environment which surrounding my business premise.(such as fruits).

Dambulla area is famous or the farming. Mostly, Kurakkan, Undu, Rice and other farming products are grown in the rural area of Dambulla such as Kandalama and Sigiriya.Therefore, I plan to take the raw matrials from the ;

Kandalama Sigiriya

These are the raw materials which are supplied from these areas.

White rice flour Red rice flour Green jack fruit Kurakkan Corn flour

Other raw materials are grown from the surrounding environments.

Green jack fruit Pineapple, Tamarind, Papaya, Passion fruit.

These fruits are grown in the business environment for the landscaping with aim of increase the attractiveness of the environment and to established the ‘localization’ on consumer’s mind.

6.3.2 Cash and labour

Cash

Loan from the Commercial bank- Rs.500,000 Own money - Rs.300,000

Labour

No. of employees for gardening and other arrangements.(cleaning) - 03 No. of employees for cuisine and other preparation - 07

10

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Undu flour Vegitables and mushroom Madu flour Water melon Coconut

07.Financial Plan7.1 Financial Statements

7.1.1 Income Statement

Income statement for Rasa Foods, for the year ending 31 December 2017

(Rs.)

Sales Revenue 1050,000Cost of goods sold (550,000)Gross profit on sale 500,000Operating expencesMareketing expences 90,000General and administrative Expences

80,000

Depreciation expenses 30,000 (200,000)Total earning 300,000

7.1.2 Balance Sheet

Balance sheet for Rasa Foods, for the year

ending 31 December 2017

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Assets (Rs.)Current assets Cash 150,000 Account receivable 80,000 Inventories 220,000 450,000

Investment 100,000Fixed assetsGross fixed assest 960,000Depreciation (390,000) 570,000Total assets 1120,000

Liabilities and equityCurrent liabilities Account payable 10,000 Others 10,000Long-term debt Bank loan 500,000 520,000Ownership equity Capital 300,000 Total earning 300,000 600,000Total liability and equity 1120,000

7.1.3 Cash flow statements

Cash flow for Rasa Foods, for the year ending 31

December 2017

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(Rs.)Sales income 275,000Accounts payable 60,000Others 10,000 370,000Investment 25,000

Depreciation expenses 4,000Salaries 150,000Accounts receivable 5,000Interest 8,500Inventories 50,000Other expences 2,500 (220,000)Increase in cash 150,000

APPENDIX

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Service Blue Print

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