Business Making Decision Assignment 3 BTEC Nguyen Huu Phong 2017

Business Making Decision Assignment 3 BTEC Nguyen Huu Phong 2017 tại University of Greenwich Viet Nam, đây là một trong những môn rất quan trọng và cần thiết cho những người muốn theo nghành businness cụ thể là human resource management như mình. Bài assignment này được mình làm tại trường. Các bạn có thể xem và tham khảo nhưng lư

ASSIGNMENT FRONT SHEET No.3

Unit number and title Unit6: Business Decision Making

Learner declaration:

I certify that the work submitted for this assignment is my own and research sources are fully acknowledged

Grading grid

P4

1

P4

2

P4

3

Assignment title Enhancing Business Decision Making

1

In this assignment, you will have opportunities to provide evidence against the following criteria

Indicate the page numbers where the evidence can be found

no.

Assessor’s Feedback

LO4 Be able to use software- generated information to make decisions in an organisation

4.1 use appropriate

information processing tools

□Student individually use Microsoft Excel and Microsoft Project in information

 Not achieved

4.2 prepare a project plan for

an activity and determine the

critical path

Students manage □to draw the Gantt chart, construct network diagram, □identify

 Not achieved

4.3 use financial tools for

decision making.

Students can calculate two financial indicators: □NPV and IRR And

□provide the suggestion for the most appropriate project tool based on results of NPV and IRR

2  Achieved

 Not achieved

2

(note on Merit/Distinction if applicable)

 Not achieved

Merit descriptor No (M2) □Good analysis of the results to draw valid conclusions in a business

context

 Achieved

 Not achieved

Merit descriptor No (M3) □Clear assignment structure with □appropriate level of academic English

writing

 Achieved

 Not achieved

Distinction descriptor No (D1) □Provide critical analysis of information for decision making by

summarizing data

 Achieved

 Not achieved

Distinction descriptor No (D2) □ An appropriate recommendation

□ Sources of information are correctly cited

 Achieved

 Not achieved

Distinction descriptor No (D3) □ Smart recommendation for decision making by summarizing data  Achieved

 Not achieved

Summative feedback

3

<ATTACHED EVIDENCE>

Introduction 8

4.1 Use appropriate information processing tools 8

4.2 Prepare a project plan for an activity and determine the critical path 10

4.3 Use financial tools for decision making 12

Conclusion 14

References 15

Today, the drinking coffee have gradually become a habit of everyone from everyone to students, people

of all ages People who like speed and an aromatic essence of coffee, this has gradually changed the way that people who sell coffee or do Instead of content makers to coffee now many places have espresso machine to do, you know those big coffee chain in the world such as Starbucks uses espresso machine Use the espresso for a delicious coffee and tasty more, because of this reason that gradually more people like to drink in places with espresso more than filter coffee Capture this trend, I open a small shop selling coffee espresso to serve everyone

4.1 Use appropriate information processing tools

Project name: My coffee shop is named "COFFEE in BLACK" which sells espresso coffee

Location: On No.10 Street, District 6, Ho Chi Minh City It then the next Kinh Duong Vuong - Galaxy Cinema and in dining area of district 6 This place is very crowded in the evenings and lasts until mid-late

at night and during the day there are quite many employees work The ground we rent include a foothold

to sell wide 10m2 in the middle of this bustling area

Segment: With cheap prices, great and fast, becoming an expresso coffees for everyone especially those who like the strong flavor of the coffee

Project size:

THINGS TO PURCHASE TO START THIS PROJECT

Quantity(unit, kg)

Price

BREVILLE BES 870XL – AUSTRALIA (Espresso

Specialized car for selling coffee and espresso

The total amount of money to buy related equipment is 31,863,000 VND

In addition, the space rent is 2,000,000 VND / month and we have to deposit 3 months is 6 million

BUSINESS SPACE

Location: No.10 Street, District 6, Ho Chi Minh City

Space: 10m2

I hired a bright employee from 5am to 8pm with a monthly salary of 1.500.000VND and an employee working with a midday employee from 11am to 2pm with a salary of 1.500.000 VND In the evening, I

will stand for sale due to not busy learning, thus saving part of the cost of hiring staff So in total, I spend 3,000,000VND per month for 2 employees

Salary for employees 2 employees 1.500.000 3.000.000

As a coffee shop, we will continue to operate all day except for big holidays The total amount calculated above is 5.000.000 VND

Working capital in the first three months is 15,000,000 VND In addition, because of the curb sale, we need some small fees to be allowed to trade about 500,000 VND

TOTAL INVESTMENT

Equipment and tools 31.863.000

Costs incurred 5.000.000

This is my total investment cost for this project The above cost will help my project to operate in 3 months, 3 months is the time that I have to ensure the project operation smoothly and smoothly

4.2 Prepare a project plan for an activity and determine the

critical path

Task 1 Ideas and concept

Task 2 Market search

Task 3 Search for supplier

Task 4 Production

Task 5

Search for location, decorate

Task 6 Buying equipment and tools

Task 7 Training employees

Gantt chart: the chart above is the weekly Gantt chart, after this period I will be able to start my own business

Task description:

Task 1: Ideas and concept

I am a coffee lover and especially black coffee and milk coffee are the best coffee in Vietnam Vietnamese people sometimes like to drink coffee like that and have a little more modernity At present, there are many models selling coffee as fast as we do, but they use filter coffee and instant coffee These things take away the essence of coffee, so also with their business model but we instead use espresso machines to make coffee This will break the concept of coffee taken in the morning that it will not be delicious That

is why "COFFEE in BLACK" was born and brought the wonderful coffee to anyone at affordable prices

Task 2 & 3: Market search and search for supplier

As mentioned above, we refer to surveys of some friends in community groups We recognize that morning workers tend to enjoy coffee, but they are usually in a hurry, and we rely on them to bring them the best coffee in the mornings to bring to work place

Black coffee and milk coffee are also the favorite drinks of a large segment of consumers in Vietnam including young people Another special thing is, the coffee takes away as we sell very little in the evening although a large number of customers like to drink these kinds of coffee in the evening We will appear all day, all the time and in the future is everywhere so people can enjoy the fastest, cheapest and best coffee

Task 4: Production

Due to the quickest criteria, we will train employees to use espresso machines and make coffee that are designed to meet the needs of our customers at all times while maintaining the best quality The next job is

to add milk, sugar and ice Customers just carry and enjoy In addition, we will give away our own ice cubes to keep our customers' best quality coffee while on the road

Task 5: Search for location, decorate

I have observed and visited many places around me live, luckily next to the place where I eat every day there is an easygoing owner whom I know They let me rent space and freely use electricity and water from their homes, of course included in the 10m2 rental price that I hired On decor, we will decorate the simplest of the two colors WHITE and BLACK This represents the culture for us "COFFEE in BLACK"

Task 6: Buying equipment and tools

Because my friends have opened cafes, they should introduce me to buy products and tools from Khoinghiepcafe.com The facilities and equipment for making coffee here are of good quality and I choose them

The other items I buy at the market and stores for convenience and maximum cost savings.

Task 7: Training employees

Because our menu is simple and they are drinks that any Vietnamese can make it Of course, I have individual formulas with appropriate levels so that the coffee is always delicious and impressive The training of staff took place quite quickly in 2 days

Week 1: Instruct the staff to use the Espresso machine, mix the coffee by the formula available Of course

I will give them a try and the drinkers are me and my friends If all accepts more than 90%, then the employee meets the requirement

Week 2: Learn how to greet and take care of your customers Smile, talk briefly with them and pay attention to the habits of frequent customers I will supervise them in the later working sessions Absolutely not emotionless

4.3 Use financial tools for decision making.

Prices of ice coffee and hot coffee are the same and milk coffee is higher than black coffee 2,000 VND Milk coffee will cost 14.000 VND and black coffee is 12.000 VND We will count on black coffee at 12,000 VND for a profit of 6,000 VND

Sales growth rate in the first

Variable

Discount

0

Breakeven analysis is the analysis between price, revenue, profit and cost to calculate break-even point and generate profit Based on these calculations, we set up a table to find out the breakeven point

Based on this table, I can see the sales calculated by the formula (Revenue = Selling Price x quantity) With each cup of coffee we make is priced at 6.000 VND, this is the cost of sales, we have calculated the reasonable price for each cup of coffee sold 12,000 VND, suitable for the majority of people in Vietnam

It is estimated that we will sell 600 cups in the first month and reach sales of 7,200,000 VND, then 9 months continuous will have a growth rate of 20% By the third month, we sold 864 cups and achieved a turnover of 10,368,000 VND and profit of 184,000 VND, at which we will maintain the operation without loss

Quantity 850

revenue 10.200.000

fixed cost 5.000.000

variable

cost 5.100.000

profit 100.000

From statistics, it can be seen that if the growth rate of 20% is continuous for 9 months and stopped at the highest level, then after 11 months, we will pay back in 12 months

NPV = net

present value 107.029.485

Payback 12 months

Payback period: I reached the breakeven point of my project in 12th month when I sold 2580 cups per month with sales of 30,958,682 VND and profit of 10,479,431 VND

Thereby, we can see, my project has the potential to grow and be able to recover capital in just 12 months with the standard set

Conclusion

It can be seen that setting up a clear business plan will tell us what needs to be done and what needs to be done to evaluate whether the project is viable and potential In addition, during project implementation, it

is necessary to continuously monitor and adjust deviations from the plan

Khoinghiepcafe (2016) How to open Cafe Espresso, Available at: http://khoinghiepcafe.com/tu-van-mo-quan-cafe-espresso-voi-30tr/?v=e14da64a5617 (Accessed: 29 April 2017)

Caphenguyenchat (2017) Coffee price, Available at: http://caphenguyenchat.vn/bang-gia-nguyen-chat-coffee (Accessed: 29 April 2017)

Dungcubarcafe (2017) Knock Box, Available at: https://dungcubarcafe.com/san-pham/knock-box-nhua-110mm/ (Accessed: 29 April 2017)