Amendment Management Simulation - Essay Example

Table of Contents 0 Our Executive Summary ___________________________________________________4 1 Vision___________________________________________________________________51.2 Mission__________________________________________________________________62.0 Current Position__________________________________________________________72.1 Porter’s 5 Forces__________________________________________________________72.2 PESTLE analysis__________________________________________________________72.3 SWOT Analysis___________________________________________________________73.

0 Our Strategy_____________________________________________________________83.1 Type of Strategy___________________________________________________________83.2 Risk, Uncertainty and Contingency Plan________________________________________84.0 Marketing Plan__________________________________________________________144.1.1 Secondary Research_____________________________________________________164.1.2 Competition____________________________________________________________184.2 Branding________________________________________________________________214.

3 Marketing Mix- 7Ps________________________________________________________225.0 Operational Plan_________________________________________________________195.1 Staffing_________________________________________________________________195.2 Daily Operations & Production____________________________________________195.3 Size of Global Treats’ premises___________________________________________206.0 Human Resource Concerns ________________________________________________X7.0 Finance_________________________________________________________________X8.

0 Legal Concerns__________________________________________________________X9.0 References______________________________________________________________X10.0 Appendices_____________________________________________________________XAppendix 1 - Short/Long Term Objectives_________________________________________Appendix 2 - Porters’ Five Forces_________________________________________________Appendix 3 - PESTLE Analysis___________________________________________________Appendix 4 - SWOT Analysis____________________________________________________Appendix 5 – Risk & Contingency Plan_____________________________________________Appendix 6 -Appendix 7 - Marketing – Justeat.

com registration __________________________________XAppendix 8 – Secondary Research_______________________________________________Appendix 9 – Mintel Research___________________________________________________Appendix 10 - Appendix 11 - Appendix 12 - Appendix 13 – Staffing____________________________________________________________________Appendix 14 –Appendix 15 - Size of Premises_____________________________________________________________………….1.0 Executive SummaryGlobal Treats is a new business in the takeaway industry in Salford on Tootal Road.

It is a Limited Liability Partnership (LLP) and was founded by five owners: Loide, Kinga, Maria, Minh and Nam, who are students at University of Salford. All directors are passionate, creative, hard workers and have a wide range of social and business experiences. Especially, the management team’s members come from different countries around the world hence their strategy is delivery the world-wide food to the residents in Salford. Therefore, it will be a strongly competitive advantage with others rivals.

Our goal is serving mouth-watering dishes of international food to customers within this area. The most inspired reason for choosing the name of the shop (Global Treats) is to emphasise the plentiful supplies of good food, which is offered to their customers. This new style of fast food will sell a variety of products and services ranging from appetizer, main course, salad, side dishes to dessert and drink, serving in both “takeaway” and “eat in”. The operational strategies approves that it is a potential plan to get profit and expand the market in the future.

According to our researches, the shop was located in a good area with various public places. Therefore, encouraged by the growing demand for more choice of international food takeaway, combined with the home delivery service, Global Treats will be easy to get the advantage of the market demand and serve fresh, unique and delicious dishes to the local residents, workers, students and shopper in this area. The take away can cover and serve a 1.0 mile area in East Salford. On top of that, The total cost will be saved as much as good.

Although Global Treats’s price may not lower than other rivals, we guarantee that it will not be higher while still maintaining the good quality of the products. Global Treats has received £40,000 for opening the store, which was invested by all partners involved to the takeaway business. The manager team does not consider any loan as the project financial statement express that within three years, we are able to achieve our goal, the revenue projections for the next three years has been carefully calculated as below:Year 1:Year 2: Year 3: Additionally, the profit projection for the upcoming three years is:Year 1:Year 2: Year 3: 1.

1 Vision: Our Long-term goals:Global Treats aims to reach an annual turnover of £160,000 by the end of year 1 of business;To rise our annual turnover of year 2 of business by 10% up to £176,000;In year 3 of business, Global Treats aims to increase annual turnover by 15% from Year 2 up to £202,400;To conquer a well-recognised market share within City of Salford and even Manchester;To constantly upgrade technological systems to keep up to date;Increase the customer rating of Global Treats each year.

Our Short-tern targets and Objectives: To position Global Treats in a prestigious level in the food takeaway market in Salford/Manchester through our USP of high variety of worldwide healthy foods; Develop an efficient operations and marketing differentiation strategy for Global Treats that will be constantly improved throughout the first year of business; Exceed the expectations of all customers and overall stakeholders of Global Treats. (Refer to Appendix 1 – Detailed Table with objectives.)Our aim for Global Treats is to: Develop a chain of takeaways offering a worldwide variety of healthy and unique food options with the vision of compelling to local, fresh and regional suppliers Create tasteful experiences that combine the magic of worldwide ingredients with the daily need for a treat across a variety of freshly made dishes.

Uphold a friendly and efficient workplace environment in which the workforce is encouraged to grow together with the business. Gradually develop our business reputation through focusing on customer recognition of our brand through high quality food and variety. 1.2 Mission Statement: We have the mission to offer a new experience of diversified global pizzas and treats from a variety of countries in the world emphasising superior quality of food and customer service through creative innovation and exclusivity.

To create a relationship foundation of trust and loyalty with our suppliers and customers as to segment a guarantee of premium quality food, service and distinguished business strategy.Global Treats aims to break even in the first year through providing an upright value to all customers and accomplishing excellent levels of customer satisfaction in relation to service, quality of food and overall value.2.0 Current Position2.1 PORTER’S FIVE FORCESPorter’s five forces are extremely useful to efficiently analyse the microenvironment structure of our industry in this business plan.

It has been thoroughly analysed in term of buyer and supplier power in relation to Global Treats, as well as the competitive rivalry surrounding the business together with all barriers of entry in this industry and the threat of substitutes in the area. (REFER TO APPENDIX 2)2.2 PESTEL ANALYSISA PESTLE Analysis of Global Treats has been carried out with the purpose of identifying and analysing the MACRO environment thoroughly which will determine the main decisions and strategies to be implemented.

(REFER TO APPENDIX 3)2.3 SWOT ANALYSIS:A careful SWOT Analysis has been carried out with the purpose of identifying crucial internal and external factors that can positively or negatively impact Global Treats in the future such as the internal strength and weaknesses of the takeaway and the external opportunities ad threats of its surrounding environment.. (REFER TO APPENDIX 4)3.0 Strategy3.1 Type of strategy:Differentiation strategy will be used in Global Treats as our business strategy. Global Treats will deliver distinctive food options such as Sweet Brazilian pizzas, Polish dishes, Greek food and Vietnamese dishes together with the English options for all tastes which creates our competitive advantage from the competition in Salford area.

Our highly skilled and creative product-development personnel will create an innovative menu and rearrange it frequently so Global Treats meets all customer demands and preferences. Global Treats will keep control over cost without compromising quality of food and service, but mainly concentrate on providing a differentiated service that does not currently exist in the area. According to Bowman’s Strategy Clock (Johnson et al, 2011), a differentiation strategy is known as a high utility of value strategy with medium price/cost in order to achieve it and that is exactly what Global Treats aim to conquer, value to our customers through an affordable strategy that will be different from competitors.

Our USP is clearly the worldwide concept of high quality Brazilian Sweet Pizzas and dishes from 5 different countries including England which competitors do not offer. It is in this context that focusing on the possibly ‘un-tapped’ section of the market, our venture is expected to attain huge market share within a short period. It although indicates our aggressive competitive move, the strategy will also ensure that the entry barriers to the market are high so that chances of rising number of competitors in the near future gets minimised.

Moreover, as the strategies get differentiated extensively, competitors will have reduced scope to imitate our product and service procedures, which will in turn add to our competitive advantages. We therefore expect to become the pioneers of the market and set a new trend among the targeted customers who will prefer our recipe of Brazilian pizzas and dishes. We also intend to ensure strictness in maintaining secrecy of our food products, which will help us to secure a competitive position. Selling strategy:Global Treats will ensure that our customers will perceive the value and quality of the unique pizzas and world dishes they buy which will be superior than the other takeaways around Salford and Manchester due to the fresh ingredients provided at an affordable price considering the economic downturn.

Global Treats will focus on providing a quick delivery service with the aim of reaching customer satisfaction and winning a strong customer base. Global Treats will also sell coffee to drink in and takeaway which is a good selling strategy as people with busy lives would prefer to pick up a hot drink and go to work. Time management will be essential in our selling strategy wherein customer convenience will receive utmost attention. For the initial few months, i.e. until we observe the market to contain adequate awareness regarding our brand, we will practice push selling strategies.

Correspondingly, we will emphasise making continuous interaction with the customers and keep on refining our service deliverance procedure with time. This will not only make our services better and help us to augment our branding strategies, but it will also assist in the creation of strong customer loyalty that will again increase market entry barriers for our competitors. Nevertheless, cost will also be maintained at a lower profit margin that will again create a pressure on our potential competitors in the same product line. 3.2 Risk, uncertainty and contingency plan: 5 main risks1.

Event: New competitors.Contingency plan:We must always check the competitors food menus, ratings and their advertising campaigns. We compete more aggressively in the period of the business start-up, apply more meal deals/offers to maintain current customers and attract new ones. Hence, we would be able minimize the competitors market share and increase Global Treats’ market share then leading to their failure in the early stages. This particular risk factor will be dealt by Loide, who will be responsible for designing the company’s competitive strategies. 2. Event: Wrong sales prediction.

Contingency plan:We must review our primary research data to make an educated guess about sales, as well as look at actual performance against the predicted performance to analyze if our initial predictions were optimistic. We have to revise predictions to match current situation and figure out the problems then solve it if sales predictions were overly optimistic. However, if sales predications were pessimistic, we revise them to a more suitable prediction based upon current performance. To assess the internal strategies of the company, Kinga will be responsible, who possess adequate skills in the field.

Following proper quantitative measures to predict sales, we believe to overcome this risk factor with sufficient rationalisation. 3. Event: Wrong/Delayed deliveries.Contingency plan:The delivery team must be trained well and the delivery vehicles must be maintained regularly. In addition, the satellite navigation would be installed in each vehicle; a line with detailed delivery address, what the customer ordered would be stick on the packaging of the products. This risk factor might become serious for the company if not corrected at the initial stage.

To overcome this risk factor, Maria will be responsible. She will therefore look after the efficiency of the entire team, which would prove effective in reducing instances of late deliveries. 4. Event: Food spoilage.Contingency plan:Well-trained staff of Global Treats must check quality food carefully at both the beginning and the end of the day. We ensure that all food would be stored in the right place and in the right way that protect against contamination and minimize deterioration. We obtain ingredients from well-known suppliers for the best quality of our products.

This risk factor will indicate the quality maintenance structure of the company, which will be directed by Minh. Correspondingly, we will take measures to reduce wastage of our food stock by proper ordering and also by maintaining a FIFO (First-in-First-out) account.5. Event: Business failure.Contingency plan:We would sell all current leases as soon as possible when we see signals of this failure. When the worst case happens, because we have rent our premise and leasing most equipment and machinery, we would take less damages than if we purchased them.

While this risk factor will demand the attention of all the Directors, we will be headed by Nam, who will be responsible to forecast such issues and intimate other Directors so that a rational and objective oriented recovery plan can be devised within time.(REFER TO APPENDIX 5 – Full Chart on Likelihood and Impact of Risk)4.0 Marketing Plan4.1 Market ResearchMarket Research Questionnaires: When we identified our target market, we carried out primary market research questionnaires so to gain further information about customer needs, wants and favourite food options.

And to see if we need to change anything to make sure that our products and service will reach the highest efficiency. This will also require our operational team to be highly flexible and efficient in dealing with any such change coming over. In this project document, we present “Market Research Questionnaires” and “Market research result”. (REFER TO APPENDIX 6)Market Segmentation: Full-time students of University of Salford - (Around 17,812 students in Salford aged 16 and over - Source: Census 2011, Office for National Statistics).

Local residents and shoppers (233,933 residents in Salford, Source: Census 2011, Office for National Statistics). Middle aged local residents of Salford (Around 90,505 people aged 30-60 years old in Salford - Source: Census 2011, Office for National Statistics). The number of household was 101,547 in Salford in 2011. The statistics says that the Average Income of the household at that time was £32,090 and the Middle Income Value was £25,360. In addition we know that the households figure that occurred most often was £12,500.

(Census 2011)The population average in Salford of females is 19,435 and males is 20,029 showing us the potential customers that Global Treats can reach through clever marketing.Unemployment rates in Salford are estimated as 1,598 individuals and the total working age population is 28,316 meaning that there is a high amount of people with income that will invest in affordable takeaway with quality with regularity.(REFER TO APPENDIX 7 - Figure 1, 2 and 3.) Religion:Most of the population of Manchester area are Christian (61.8%) in comparison to Muslim (8.7%). In East Salford Christian Religion still dominates with 18,944 people and 1,778 Muslim Religion individuals.

However, since Muslim Religion population is fairly high, Global Treats will provide a meat supplier Halal based in order to fulfil all the needs and religions of the community. Our operations team will therefore also need to have a strong understanding about the market trends and customers’ preferences that might vary in terms of their religion. Source: Census 2011, Office for National Statistics Resident 4.1.1 Our secondary research of the takeaway fast food market: The eating out market in the UK is estimated to grow by 3% in 2014, to £33.

4 billion due to predicted increases in consumer expenditure, therefore Global Treats will have to take advantage of this through chasing sales with a suitable strategy. (Mitel, 2014)Due to recession consumers are now more demanding about where their money goes so Global Treats must meet customer needs accordingly. In 2013, the UK pizza and pasta are in 3rd place of segment share on fast food market with Burgers leading in 1st place and Ethnic takeaway in 2nd:(Mintel, Eating Out Review - UK - June 2014)Further growth is predicted for the takeaway industry which is of great advantage for Global Treats’ future.

(REFER TO APPENDIX 8).Despite sustained pressures on household incomes, nearly a third of diners still manage to eat out at least once a week. For most diners it is still a rare treat, nearly half of diners eating out once a month or less. “Ordering a takeaway through a restaurant’s own website (eg Domino’s, Pizza Hut) remains the prevalent behaviour, with four in 10 diners having done so. However, ordering through third-party sites (eg Just-Eat) is also relatively commonplace now, with around one in four having done so.

”(Mintel, 2014)Mintel’s article ‘Eating Out Review’ (June 2014) mentions that despite an increase in consumer’s interest on healthy eating, four in 10 state that they rarely think about healthy eating concerns when ordering a takeaway. This is one of the reason why Global Treats want to indirectly emphasise healthiness to our community through their usual takeaways by offering appealing healthy but enjoyable options. 4.1.2 CompetitionGlobal Treats’ Direct and Indirect Competitors:Global Treats’ direct competitors within 1 mile radius:Global Treats’ indirect competitors within 1 mile radius:Opponent 1 - Adams Sandwich BarSubwayOpponent 2 - PhoenixGreggs Opponent 3 -Golden LemonLidlOpponent 4 - The Chandos Grove AldiOpponent 5 - Tandoori HouseKFCOpponent 6 - Pizza Box Opponent 7 - Tuckers Sandwich Opponent 8 - The ChippyOpponent 9 - Perfect PizzaOpponent 10 - Casa PizzaOpponent 11 - Top Trough(REFER TO APPENDIX 9)Global Treats faces a few factors that determine the high level of direct competition within 1 mile radius such as:High variety of rivals and food options around Global TreatsHigh Price competition amongst businessesTechnological software run by some competitors such as computing system ordering website (justeat.com)With the purpose of creating competitive advantage for Global Treats in East Salford area, a USP will be provided to all customers in comparison with all competitors within 1 mile radius and will ensure that regular competitor analysis is carried forward through looking at major factor in the table below.

This process will help Global Treats keep a close control over competitor’s marketing strategies, competencies, USPs and cost structures:Top 7 Competitors Analysis:Upon the competitor service analysis carried forward it is noticeable that the main competitor weaknesses and Global Treats’ strengths/competitive advantage are:We will provide home delivery for orders over £8 every day from 6pm until late, which most main competitors do not offer. Hence, we will be able to differentiate our products effectively and obtain greater market share than our competitors.

On the other side, it will demand high level of integrity and efficiency at the end of the workforce, which will require our HR team to be adequately active. Global Treats will provide fresh ingredients in all dishes from local suppliers which will benefit local business growth. We believe that by this way, we can maintain a higher standard of food quality along with minimise wastage through a cost effective supply chain process that would expand our scope of growth in a sustainable manner. It will reward better customer satisfaction and financial liberty as well.

Global Treats will be opened for the whole day from 12pm until late providing constant food service for longer hours in comparison to most competitors. As our customers will obtain service at their need that will again increase their satisfaction level and thus, secure long-run competencies of the brand.We have a skilled team of five directors graduated from University of Salford which will be of great value for the business in terms of effective operations, marketing strategies and past experience that is an advantage for Global Treats success.

This particular quality is expected to enhance team strength within the organisation and thereby reward it with long term sustenance. This will also ensure that any change implemented for the organisation’s better growth gets channelized and implemented efficiently. Global Treats will provide seating table area for our customers to enjoy their meals in-house or take-out which most competitors do not offer. Again, this strategy will help us to differentiate our products and services from the competitors and obtain greater profitability in the market.

Global Treats will join justeat.com website for a competitive advantage of providing online service of ordering and delivery without the hassle of phone calls and availability of paying by card online. This will increase the periphery of customers targeted and also add to customer convenience, building on their degree of satisfaction. The website will also act as a promotional system to reach larger base of customers and thereby obtain competitive advantages. (REFER TO APPENDIX 10)4.2 BrandingGlobal Treats’ logo is international and broad with a hint of multicultural adaptation with the purpose to target the different cultures in East Salford and Manchester and, simultaneously, offer the so valued “healthy option” to all of our customers to choose from.

Our aim to use lively colours and flags from the countries that represent the dishes that will be served is eye catching and to directly transmit to our customers the type of food served at Global Treats by simply looking at the logo. The range of dishes offered will implement the uniqueness of Global Treats and the high quality of food with reasonable prices to all consumers. (REFER TO APPENDIX 11 – Logo) 4.3 Marketing Mix - 7Ps(REFER TO APPENDIX 12)5.0 Operations Plan5.1 StaffingGlobal Treats is expected to employ 5 members of staff to start with and then recruit as needed depending on customer demand.

Management has adopted an effective interview process designed to staff the restaurant with highly qualified people for each position. Each applicant will be rated and evaluated according to a pre-defined set of standards adopted for each position. Background checks will be utilized for designated positions. (REFER TO APPENDIX 13)5.2 Daily Operations & ProductionGlobal Treats will be opened 7 days a week from 2pm every day and 4pm on Saturdays providing all types of food on the menu all day. The menu has been created in a manner to allow the preparation of all dishes freshly on a daily basis with suitable labelling and rotation techniques, accompanied by an ample storage facility will ensure that high quality prepared product will be sufficiently available to meet the demands during peak business hours.

Management will be responsible for ordering, receiving and maintaining sufficient inventory to meet production demands. Ordering schedules will be staggered with perishable products being ordered only as needed to preserve freshness Management will adopt the use of operational checklists to verify that each work shift has been properly prepared for and to insure the operational standards are followed before, during and after work shifts.The counter service style of Global Treats easily accommodates both takeout and din-in.

(REFER TO APPENDIX 14)5.3 Size of Global Treats’ premises:Width: 6 metersLength: 10 metersSquare meter: 60 sq metersSquare feet: 645.83ft2 (REFER TO APPENDIX 15)5.4 Hours of Operation: MONDAY2.00pm - 11.00pmTUESDAY2.00pm - 11.00pmWEDNESDAY2.00pm - 11.00pmTHURSDAY2.00pm - 11.00pmFRIDAY2.00pm - 12.00amSATURDAY4.00pm - 12.00amSUNDAY2.00pm - 11.00pmAverage Delivery Hours:(Delivery days can vary according to necessity) MONDAY6.00pm - 10.00pmTUESDAY6.00pm – 10.00pmWEDNESDAY6.00pm - 10.00pmTHURSDAY6.00pm - 10.00pmFRIDAY6.00pm - 11.00pmSATURDAY6.00pm - 11.00pmSUNDAY6.00pm - 10.00pmProduct Production Flow DiagramGlobal Treats has created two product production flow diagrams for two of our dishes that we believe will be our main selling food dishes in the business which gives the whole workforce a concept of timeframe of how long each dish is expected to take for cooking and how long it should take to reach the customer.

(REFER TO APPENDIX 16)Global Treats’ Complaint Management Practice:When and if a customer has a complaint of any kind, they can contact Global Treats by:Using our complaint form and this will be emailed back to: treatsglobal@yahoo.com or posted to us at Global Treats, 1 Tootal Road, Salford, M5 5HJ;Or calling us on this mobile number – 07568502929 (Management).We welcome all feedback and are happy to help with any issues customers may have.(REFER TO APPENDIX 17)Waste Management: Global Treats will fully comply with the Environmental Protection Act 1990 in relation to disposable wastage generated by the business.

Also, the business will hold a Waste Transfer Note which by law is entitled to preserve for two years under the EPA 1990 legislation. The Environment Agency may request a Waste Transfer Note which must be presented within 14 days or a fine could be incurred otherwise. Delivery Transport:Global Treats will have one delivery member of staff and, therefore, Global Treats will purchase one delivery scooter as way of transport for our food delivery process which will be fully insured to the business and the driver included.

(REFER TO APPENDIX 18)Key Performance Indicators (KPIs):Global Treats finds it crucial to have at least 5 main Key Performance Indicators that it aims to have close control over and keep on constantly updating according to the circumstances and environmental factors around the business with the purpose of providing an excellent customer service, with high quality of food standards as well as caring for the interests of the business such as generating revenue through serving over 500 customers weekly with an average aim of 2,220 monthly customers.

We will ensure that all KIPs are evaluated through a SMART perspective which will help maintain a realistic and effective analysis of Global Treats. Also, a major KPI will be to ensure that every customer’s orders are produced and delivered within a maximum of 20 minutes which will ensure effective food production flow systems. In addition, we will aim to ensure that no more than 5% of bought in food is wasted every week by following close control wastage regulations. Finally, we wish to receive a 5 start rating upon every inspection by the Food Standards Agency through carefully following policies and procedures in accordance with the ‘Safer Food, Better Business Pack’ for caterers.

(REFER TO APPENDIX 19)Global Treats’ Equipment:Global Treats will purchase their kitchen and takeaway equipment on CS Catering Equipment website as it offers excellent prices and the availability to lease purchase items which is a tremendous advantage for the business financial stability and regulated cash inflows and outflows by spreading payments through. (REFER TO APPENDIX 20)(Refer to Excel Spreadsheets on CDROM for a full breakdown or figures.)Floor Plan: Global Treats’ premises floor plan has a total of 6 meters width and 10 meters length and has been designed considering all aspects that a successful takeaway must take into consideration.

(REFER TO APPENDIX 21)Suppliers:Management will establish relationships with qualified suppliers that provide reasonably priced product with good quality, delivered whenever necessary upon request. The food supplier that Global Treats will use for all food, drinks, packaging, chef’s clothes and even cleaning products will be the Express Food Service Supplier.Coffee supplier will be Next Day Coffee and our tables and chairs will be purchased from Café Reality. (REFER to References for Websites)(REFER TO APPENDIX 22)(Refer to Excel Spreadsheets on CDROM for a full breakdown or figures.)6.0 Human Resource ConcernsStaffing RequirementsThe primary objectives in staffing requirements is to ensure that the business will achieve the goals of strategic plan, customer expectations, overall outcome and maintain qualified staff by providing appropriate training and performance management.

Global treats will operate on a weekly basis rota with 7 staff members employed from which 2 will work part-time. In the kitchen, 1 chef on full-time basis is required. 1 kitchen assistant and 1 counter staff full-time plus 1 delivery driver on part-time basis will also be needed (refer to Appendix 23). Counter staff is required to undertake cleaning duties during quiet periods. Each one must work 3 days a week, which will depends on their availability. In addition each member of staff is allowed 15minutes break after 5 hours worked, except delivery drivers.

If shift lasts for 4 hours there are no breaks, except going to toilet or having a quick drink. Employee Handbook:Global Treats has created the Employee Handbook so that all staff will find all details that they need regarding the company and their role. The handbook will contain all processes to succeed within this job and help to answer some of the important questions that staff might have.The number of working hours for each depends on the opening times of the shop (See table below - Staff Rota)(REFER TO APPENDIX 23)Jobs Description & Person Specification can be found in Appendix 24 of this Business Plan.

TrainingIn terms of training, pizza chef is required to have a minimum of two years’ experience and kitchen assistant at least one year of experience. Short training will be provided to kitchen staff to introduce the menu. Full training will be provided (by the manager) to counter employees as they represent the business in a way, so it’s important that they behave friendly and helpful. Counter staff comes into direct contact with customers as well as delivery drivers. Consequently the key point is to make them aware of a mission, vision and values of the business.

Global Treats managers will stress out that all visible areas within the workplace should be kept in a clean and tidy condition as well as the kitchen should be spotless at all times. What’s most important of catering business is simply hygiene. Prior to opening the business, Global Treats will operate training programmes of First Aid Training, Food Hygiene Training and Training for Food Handlers. (REFER TO APPENDIX 25)Employee’s Wages:Global Treats have decided upon employee wages under fairness and following the law by paying the lowest wage according to minimum wage set by the law.

(REFER TO APPENDIX 26)Reward SystemRegarding the reward, pizza chef will be paid an hourly rate between £7.50 depending on experience. Kitchen assistant will be paid £7.00 per hour, counter assistants and the delivery drivers will be paid £6.31 per hour. The annual pay for each staff member will be different, according to the working hours. RecruitmentGlobal Treats aims to manage and develop the recruitment and hire high quality personnel in order to achieve their set of goals. Global Treats will put a high importance in staff selection to create the best showcase for the business.

Interview Policy: …………………(REFER TO APPENDIX 27)Sickness Leave PolicyGlobal Treats’ sick leave is earned from the first day of employment at a rate of one (1) day per month, culminating in a maximum of ninety (90) days. After an employee is absent for seven (7) consecutive days, a medical statement may be requested. On return to work employees are required to handle a Sickness Self Certificate Form (which can be found in Appendix 28).(REFER TO APPENDIX 28)Maternity Leave Policy/Paternity Leave PolicyThis is the time off work to have a baby and can be a struggle financially for any parent.

Parental Leave will enable eligible mothers, fathers, partners and adopters to choose how to share time off work after their child is born or placed for adoption. This could mean that the mother or adopter shares some of the leave with her partner, perhaps returning to work for part of the time and then resuming leave at a later date.It is designed to give parents more flexibility in how to share the care of their child in the first year following birth or adoption. Parents will be able to share a pot of leave, and can decide to be off work at the same time and/or take it in turns to have periods of leave to look after the child.

(REFER TO APPENDIX 29)Holiday PolicyThe basic paid annual leave entitlement for staff at Global Treats is as follows:Treatment of annual leave/bank holidays for Job Sharers and part-time support staff whose normal pattern of work is such that they work less than 5 days per week.Entitlement to annual leave is pro-rata based on the number of days worked each week.(REFER TO APPENDIX 30) 7.0 FinanceRent and Business Rate: Global Treats has to pay 12 months upfront rent in March 2015 as it opens for business.

Rent will be of £6,000 per annum (Exc. VAT) and will be paid as a one-time cost for the first year. Salford City Council Business Rate for Global Treats, 1 Tootal Rd, M5 5HJ, Salford is: £3,555 to be paid. (REFER TO APPENDIX 31)Overview of Sources of Finance:Global Treats has a starting capital of £40,000. We have managed our funds in a way that the starting capital will be able to incur all the start-up and purchase costs required so we take no loans. Budgeted set-up costs:Global Treats will be leasing shop on 1 Total road, Salford, M5 5HJ.

Global Treats has to pay 12 months upfront rent in March 2015 as it opens for business. Rent will be of £6,000.00 per annum and will be paid as a one-time cost for the first year. Because the place is initially empty, we will need to incur costs for renovation, machinery and insurance costs in order to start our business. We have decided to acquire most of the machinery on a 3-years lease agreement instead of buying the machinery to reduce start-up costs and help maintain a positive cash flow.

We have budgeted for all the income and expenses we will incur on a monthly basis for the first year (2015) and on an annual basis for the second and third year (2016 and 2017).Cash Flow Forecasts:Cash flow forecast are based on speculated demand, calculated by combining our key research data, and production cost, calculated by using cost of suppliers, wages, machinery, overhead costs and insurance costs.We predict sales based on questionnaire results collected in the local area. We have extrapolated the results and taken into account error that might be caused due to relatively small sample size.

As mentioned above, we have acquired most of the machinery on a lease agreement leading to lowering start-up cost and helping maintain a healthy cash flow balance during the year.We also have made profit and loss accounts in line with balance sheet for the first 3 years since March 2015. Nevertheless, VAT applicable on fuel charges will be calculated at 20% that would be deducted from the cash flow forecasted for this business. Break-Even Analysis:Most of the costs are either semi-fixed or semi-variable so we cant calculate the accurate breakeven quantity.

We have taken most of the costs except ingredient costs to be fixed for the break-even calculations.(REFER TO APPENDIX 32) - Monthly Cash Flow Budget 2015(REFER TO APPENDIX 33) - Cost of Making a pizza(REFER TO APPENDIX 34) Side Costs(REFER TO APPENDIX 35) Just Eat commission rate(REFER TO APPENDIX 36) Start-up Machinery Costs(REFER TO APPENDIX 37) Start-up item costs(REFER TO APPENDIX 38) Tables chairs counters(REFER TO APPENDIX 39) Utilities costs(REFER TO APPENDIX 40) Year cash flow budget 2016-2017(REFER TO APPENDIX 41) Profit and Loss account(REFER TO APPENDIX 42) Depreciation(REFER TO APPENDIX 43) Break Even Analysis8.

0 Legal ConcernsGlobal Treat’s Management Team: Global Treats company is going to be directed by five graduates of Salford University with BSc in Business and Management Studies qualification working together as a partnership in order to manage and operate the business efficiently. (Refer to Appendix 44 – Our Limited Liability Partnership Agreement). Global Treat’s policies and regulations are supported by:Food Hygiene Regulations (England) 2006Licensing Act 2003Food Standards Act 1999 (FSA)Salford City Council Trading StandardsHealth and Safety regulations and trainingFirst Aid Training Environmental Protections Act 1990 Value Added Tax (VAT) RegistrationHazard Analysis and Critical Control Point TrainingNCASS New Allergy Legislation (December 2014)Food Hygiene Regulations (England) 2006:Global Treats will comply to the Food Hygiene rating scheme created by the Food Standards Agency (FSA) in January 2011 which Salford City Council has acquired consisting of the business being inspected by officers from Environmental Health and given a rating based on the legal requirements and agreement for hygiene, management performance and structural conditions.

The Food Hygiene Regulations came into force on the 11th of January 2006 for the purpose of laying down procedures of food safety and law in compliance with the European Food Safety Authority and Global Treats will thoroughly apply these regulations to its food establishment in order to provide a safe and enjoyable workplace of food treats for the community. (REFER TO APPENDIX 45)Licensing Act 2003Global Treats will have its takeaway business fully registered and recognised as a food business under the Licensing Act 2003 in 1 Tootal Road, Salford, M5 5HJ Manchester through its local authority-Salford City Council.

The application form for registration of food business establishment is required by law and will be in place at least 28 days before food operations take place. Also, Global treats will have a Late Night Catering License form by the Salford City Council. (REFER TO APPENDIX 46)Food Standards Act 1999Global Treats will comply to the standards set by the Food Standards Agency (FSA), which was established on 11th November 1999, in order to protect public health in relation to food safety and standards with the purpose of establishing trust and peace of mind to the community.

Salford City Council Trading Standards Global Treats will adhere to work together with the Salford City Council trading standards to ensure it trades within regulatory frameworks as to reduce compliance costs and ensure the business is trading on the right side of law. (REFER TO APPENDIX 47)Health and Safety Regulations and TrainingAt Global Treats all food handlers and directors will receive full training under the law of food and hygiene in the UK through supervision and training with the purpose of increasing their knowledge and awareness of the basic principles of food hygiene.

Main covered topics:Cross-Contamination Food PoisoningFood StorageBody ContaminationPests AwarenessTemperature ControlPersonal health and HygieneFood Storage (REFER TO APPENDIX 48)Environmental Protection Act 1990:Global Treats will comply to the Environmental Protection Act 1990 which came into place on the 1st November 1990 with the purpose of improving the control of pollution of the establishment from its operations, collection and disposal of waste, prevent contamination from hazardous substances and process the correct equipment to filter and maintain clean air.

Caring for the business is caring for the community. Value Added Tax (VAT) Registration:Global Treats will carry out a VAT registration form for its food business through the HM Revenue & Customs and fully comply to the law. (REFER TO APPENDIX 49)Hazard Analysis and Critical Control Point Training: Global Treats will take on board the Hazard Analysis and Critical Point system (HACCP) in its business with the purpose of fully training its staff and management to the point of ensuring that food handling procedures are known by all to make sure the food produced is safe to eat.

Global Treats will contact the Environmental Health Practitioner of the local authority as to implement HACCP effectively. Safer food, better business (SFBB) management procedures will be carried out to ensure that food hygiene regulations are met. Refer to appendix 50 - for link to SFBB file). NCASS New Allergy Legislation (December 2014):Global Treats will comply to the new allergy legislation by Nationwide Caterers Association (NCASS) which will come into force on the 13th of December 2014 in order to implement an effective allergen management program, train staff in food allergen risks, and how to communicate accurate and consistent information on the allergens in the food sold.

This is a major step that Global Treats will take as to care for the community’s well-being and safety through providing food allergen information of all the food sold in labels regarding the presence of any of the 14 specific allergens as ingredients and meet legal obligations. (Refer to Appendix 51)First Aid TrainingFirst aid training will be provided firstly to management of Global Treats and then offered to employees at the time they start employment. It will not be an obligation for all employees to carry out the course as long as one employee on duty has the course.

Leasehold Property ActThe lease will be taken on the mentioned grounds of the leasehold property act practiced in the UK based on section 20 consultation. This will help ensuring that the business property is safe from any malicious intention of the leaseholder. In addition, licenses will be verified by a third party, i.e. a professional lawyer on the free consent of the leaseholder and the leasor. Source: Gov.UK, 2014Investor’s RiskAs it is a new business initiative taken, investment from top ranked investors is unexpected.

However, we will emphasise allowing investors with good ranking. We will investigate about the investor prior to confirming his/her contribution. We will also be aware of the possible chance of being taken over by large investors in the market in order to protect our business. Global Treats’ Insurance:Coversure Insurance Services: £950 yearly or £79.17 monthlyGlobal Treats will be insured by the Coversure Insurance Services as it has found the best deals that will significantly benefit the business and help it flourish.

With great benefits including public, products and employers liability which is a major cover for all takeaway businesses. (REFER TO APPENDIX 52)Cover Includes:Stock cover inc food and alcoholElectronic business equipment (e.g. tills)Public, products and employers liabilityBuildings insurance available (inc listed buildings)Contents coverGlass coverLoss of licence cover 9.0 References Websites:About, (2014). Writing a Business Plan - Management and Human Resources Plan. [online] Available at: http://entrepreneurs.about.com/od/businessplan/a/mgmtandhr.

htm [Accessed 14 Nov. 2014].Anon, (2014). [online] Available at: http://www.legislation.gov.uk/uksi/2006/14/pdfs/uksi_20060014_en.pdf [Accessed 14 Nov. 2014].BBC Science, (2013). Healthy living: How to live longer. [online] Available at: http://www.bbc.co.uk/science/0/22019289 [Accessed 14 Nov. 2014].BBC News, (2014). Economy tracker: Interest rates. [online] Available at: http://www.bbc.co.uk/news/business-11013715 [Accessed 18 Nov. 2014].Cafereality.co.uk, (2014). Cart - Cafe Reality. [online] Available at: https://www.

cafereality.co.uk/cart [Accessed 11 Dec. 2014].Express-foodservice.co.uk, (2014). Homepage | Express Foodservice - More than Just Pizza. [online] Available at: http://www.express-foodservice.co.uk [Accessed 11 Dec. 2014].Gov.UK, (2014). Leasehold Property. [online] Available at: https://www.gov.uk/leasehold-property/leaseholder-rights-and-responsibilities [Accessed 17 Feb. 2014]. Johnsons, G. and Whittington, R., (2011), Exploring Strategy; Text and Cases, 9th ed, Harlow: Pearson Education Limited.

Legislation.gov.uk, (2014). Environmental Protection Act 1990. [online] Available at: http://www.legislation.gov.uk/ukpga/1990/43/contents [Accessed 14 Nov. 2014]Nextdaycoffee.co.uk, (2014). 4oz Paper Cups - Caffe Design (500). [online] Available at: http://www.nextdaycoffee.co.uk/disposables/cup-options/500-cups/4oz-paper-cups-caffe-design-500-1069 [Accessed 11 Dec. 2014].Partnersinsalford.org, (2014). Income in East Salford - Partners IN Salford. [online] Available at: http://www.partnersinsalford.

org/income-eastsalford.htm [Accessed 14 Nov. 2014].10.0 Appendices Appendix 1Short/Long Term Objectives of Global Treats:Objectives:To establish a consistent presence in the food takeaway market in the city of Salford and Manchester as a whole in order to support our sales goals, marketing strategies and market positioning. Global Treats aims to grow an exceptional brand reputation with the emphasis on our community through delivering a high quality standard of customer service.To guarantee that Global Treats always delivers a consistent high quality of food options from day one.

To create and stimulate a friendly family environment establishment for all of our customers and community and a safe and enjoyable workplace for all of the employees. To continuously develop healthy and potential relationships with our suppliers and related business organisations as to establish trust and reliability amongst parties aiding the daily operations of the business. Promote an international taste of foods to all of our stakeholders creating competitive advantage in our area of business.

Short-Term Objectives:To position Global Treats in a prestigious level in the food takeaway market in Salford/Manchester through our USP of high variety of worldwide healthy foods; Develop an efficient operations and marketing differentiation strategy for Global Treats that will be constantly improved throughout the first year of business as to further drive the business to success in the long-term.Exceed the expectations of all customers and overall stakeholders of Global Treats through outstanding customer service, efficiency and excellent quality of food served every day.

Long-Term Objectives:Global Treats aims to reach an annual turnover of £160,000 by the end of year 1 of business. To rise our annual turnover of year 2 of business by 10% up to £176,000.In year 3 of business, Global Treats aims to increase annual turnover by 15% from Year 2 up to £202,400To conquer a well-recognised market share within City of Salford and even Manchester through emphasising on constant food development ideas and innovations offering options that competitors do not offer using workforce potential ideas for R&D of Global Treats throughout the years of business.

To constantly upgrade technological systems to keep up to date with customer demand and business development. Increase the customer rating of Global Treats each year through emphasis on feedback and appreciation over the community and their preferences upon food and tastes.Appendix 2Current Position:Porter’s five forces are extremely useful to efficiently analyse the microenvironment structure of our industry in this business plan:Appendix 3Pestle Analysis of Global Treats:PoliticalPolitical factors deal with the degree to which the government influences and controls businesses.

For Global Treats, the most important factors will be health regulations relating to food preparation. Global Treats will be affected by factors other businesses as well, such as:labour law, tax policy, tariffs, trade restrictions, consumer protection and even environmental law. Global Treats will be guided by health and safety guidelines and labelling of GM Foods.EconomicIt is major for any business to understand how its markets are affected by the prosperity of the economy as a whole (Johnson, Whittington, Scholes, Angwin and Regner 2014).

Therefore, Global treats will carefully consider factors such as economic growth rates around the area of Salford-Manchester as such analysis determine consumer purchasing power and spending patterns. A good aspect for Global treats is that the takeaway market keeps growing and is still a favourable option performing more efficiently through recession drawbacks in comparison to expensive restaurant options as pricing became a major decision factor.The current interest rate level in the UK is 0.

5% as MPC kept it as low as before leading to facilitation for new start-up businesses (BBC News,2014), a rise in investment and consumption due to higher disposable incomes which contributes to economic growth.The Guardian (2014) reveals that British population spends an annual £30bn on takeaways and fast food showing a tremendous shift in the fast food industry with each individual purchasing an average of 156 takeaways a year. (http://www.theguardian.com/lifeandstyle/wordofmouth/2014/apr/01/uk-takeaways-healthier-fast-food-industry).

Also, Daily Mail (2013) states how a Brit spends around £1,320 yearly on fast food buying approximately 12 meals monthly. This shows us the potential advantages in opening up Global Treats as Brits are well known for not having the time or inclination to cook, therefore even through recession Tootal Road in Salford will experience affordable and high quality global recipes. SocialTakeaway and ready meals are the most popular types of world foods, bought by 54% and 40% of adults respectively.

This reflects their wide availability through mainstream channels and the general popularity of these food types among the majority of UK adults. (see Mintel’s Prepared Meals – UK, May 2013). The great popularity of ethnic food suggests that this segment could serve as a good platform to introduce new cuisine types such as South American, Korean, Vietnamese and Asian in which there is strong interest (see The Consumer – Attitudes Towards World Foods). Global Treats realized this trend and would get a chance to meet the demand of this market.

It will be our mission to serve the unique products for residents in this area. According to data based on partner in salford website,in 2011 the number of households in Salford was 101,547. The current population age profile indicates relatively more young people generally than within the city as a whole, with significantly more aged 20-29 - a group that has grown by 36% since 2001. It means that this area will be the potential market for fast food, takeaway industry. Otherwise, between 2001 and 2009, the number of residents considered to be Asian, Black, Chinese, Mixed and to belong to other non-white groups, increased from 8,300 (3.

8% of the total population) to 18,800 (8.4%) (http://www.partnersinsalford.org/ethnicity-eastsalford.htm). Once again, it is strongly determine that Global Treats’s strategy is the right one when we serve international food for customers. Last but not least, the average income of households was £32,090 whilst the middle income value is £25,360 but the income of households that occurs most often is actually £12,500. These figures outline whilst some households within areas of the city earn far higher than average income the majority of Salford residents earn considerably less (http://www.

partnersinsalford.org/income-eastsalford.htm). This data means that Global Treats has to embark on strong business strategy to increase the sales and then expand the market.TechnologicalIn order to enter the fast food industry, technological environment is the most important aspect that we focus and invest in.In this competitive market, Global Treats wont fall behind, but will apply the latest technology such as telephone, online systems, mobile apps and face-to-face ordering services as our advantage to attract customers from our competitors.

Customers will feel more convenient when they will be able to pay in both cash and card electronic fund transfer system. Global Treats applies the latest iBacsTel printer device, which is a unique device able to receive takeaway orders from a webpage using a GPRS data connection provided by a SIM card. The device uses either data pull/push system to retrieve the data directly from the webpage without any help of third parties. The device can also work very well with SMS message where the orders can be sent from the website using a SMS GATEWAY to the printer SIM (mobile number) and the printer can process and print the order accordingly.

In addition, iBacsTel printers can receive and send information simultaneously, so when the takeaway users accept/reject the order, the confirmation is sent back to the webpage directly from the printer in the same instant - which is known as two-way communication (http://www.ibacstel.com/online-ordering-takeaways.php).We know that use of technology at Global Treats plays a major role to achieve the goals of connecting and reaching out to existing and potential customers. LegalOne of the beliefs of Global Treats is to be committed to safeguarding and caring for the environment and take the necessary steps to implement the required laws and policies in all operations and sectors of the business.

In addition, Global Treats will be part of the food industry from the moment of its launch, therefore all of its operations must take adequate Health and Safety guidelines at all times. This will be closely controlled by management as to ensure that all laws and regulations are effectively incorporated in all operations of the business. Global Treats will be guided by laws and insurance policies on environmental and waste management, Food Hygiene Regulations 2006, Food Hygiene Rating Scheme, Licensing Act 2003, Health and Safety , Food Standards Act 1999 and Trading Standards.

Moreover, Global Treats will implement the regulations enforced by the FSA (Food Standard Agency) with the objective of caring for public health in our community. (Refer to Appendix 14) EnvironmentalEnvironmental concerns for Global Treats are mainly pollution, waste and climate change as it imposes additional costs for example; waste disposal charges and pollution control systems. Management at Global Treats is aware of the key drivers for changes and will follow the Waste and Pollution regulations certified by the Environmental Protection Act (1990) holding a Waste Transfer note for two years and renovating as requested by the Environment Agency.

Fast-food restaurants have a massive influence on the younger generation’s eating habits and the way they live. Many factors including a healthy diet has an impact on people’s ability to live a longer and healthier life (BBC Science, 2013). Most young people think of quick and cheap food options without even considering whether it’s healthy for them or that it can make them ill, but Global Treats can offer a healthy way out through its fresh and quick takeaway menu. The way most people eat is constantly changing and it is far away from supporting the green environment and Global Treats wants to help the community eat healthier and still enjoy a takeaway night.

Global Treats will consider the worlds’ concern on environmental issues and this is why our business will operate under a firm corporate social responsibility not only caring for the profits, but also for the safety of our environment as well as for the health of our future generation. Global Treats will make sure to give their customers better options by all it means healthier choices in our menu from many countries in the world.Appendix 4SWOT Analysis of Global Treats: Appendix 5Risk, Contingency planning:EventsLikelihoodImpactª= Likelihood x ImpactNew competitors326Wrong sales prediction224Flood122Fire122Wrong/delayed deliveries133Business failure133Changes in tax policy212Ingredients wasted212Food spoilage133Wrong details on fliers122For each event that might adversely affect to Global Treats, we have rated the likelihood it happens (rare = 1; may happen = 2; quite often = 3) and the impact of each to our business (small = 1; moderate = 2; severe =3).

After that, depend on the ª=Likelihood x Impact, we have contingency plan for each event with ª >= 3.Appendix 6Market Research Questionnaire used: What age group do you belong to? Under 18 18-24 25-30 30+What gender do you belong to? Male FemaleDo you use fast-food service in this area? Yes NoDo you think others would use takeaway service in this area? Yes NoWhat is your favourite type of takeaway food?a) Kebabsb) Sandwichesc) Chinesed) Pizzae) Hamburgerf) Fish & Chipsg) Other (Indian, Italian…)h) NoneHow often do you order takeaway?a) Every dayb) Once a weekc) Twice a Weekd) Once every two-weekse) Once a monthf) Less frequentg) Usually, neverHow often do you eat Pizza?a) Every dayb) Once a weekc) Twice a weekd) Once every two weekse) Once a monthf) Less, frequentg) Usually, never Which day do you most often order a takeaway?a) Mondayb) Tuesdayc) Wednesdayd) Thursdaye) Fridayf) Saturdayg) SundayHave you got a favourite place that you normally order from?

Answer:______________________________________________How do you usually order your takeaway?a) In the takeawayb) Online c) By telephoned) Mobile appe) Text messageWhich do you normally do:a) Get food delivered b) Collect from the takeawayWhich fast-food to you order most often:a) Kebabsb) Sandwichesc) Chinesed) Pizzae) Hamburgerf) Fish & Chipsg) Other ( Indian, Italian…) h) NoneWhat do you usually buy as an addition to pizza?a) Drinks b) Chipsc) Salad d) Desserte) Garlic Bread f) NothingWhich factor is the most important for you when you order a takeaway?a) Price b) Qualityc) Speed of delivery d) Healthinesse) Other:_______________What time of the day do you normally order your takeaway?a) 12 - 4pm b) 4 - 6pmc) 6 - 8pm d) 8 - 10pme) 10 - 12am f) 12 - 2amg) After 2am How much would you expect to pay for 9” margherita pizza?a) £3 or less b) £3.01 to £3.50c) £3.

51 to £4 d) £4.01 to £4.50e) £4.51 to £5 f) £5.01 to £5.50g) Over £5.50 h) No idea, I never order thisDo you normally buy pizza from supermarkets?Yes No If “yes” why don’t you buy it from a takeaway?a) cheaperb) more convenientc) it’s normally fasterWhat type of promotion do you prefer? a) Buy 1 get 1 free b) Free item with pizza (e.g. bottle of drink or chips) c) Loyalty scheme (e.g. buy 2 get 3rd free Thank You for Your Time!!!!!