Secret Recipe Franchise Analysis

sequestered Recipe privilege AnalysisExecutive summarySecret Recipe, Dubai, UAE go out be a dealership of catering confederation c solelyed Secret Recipe owned by ALAMERI Group. The trans defendion is in aliment functions manufacturing and has achievementfully established its brand name in Malaysia, Singapore, Ind unrivaledsia, Thailand, China, Philippines, Pakistan, Brunei, and Australia by virtue of its fair quality preventions, fusion sustenance and kinsfolkifiable service.The purpose for this business picture is to give up a written deport for managing the franchise of Secret Recipe, Dubai, UAE and seek financing from relevant institution and investors by providing detailed documentation business plan. This franchise of secret recipe get out be owned by Taleb AlAmeri and go away be primarily mired in the cooking of variety fresh food products such as cheese, chocolate and fresh, cream cakes, health cakes and brownies.The business mission statement is to be s olution oriented progressively and the vision is to be cardinal of the leading telecommunication companies in Africa. The objective of the gild is to provide job opport unities youths, generate income for owners and to divide 10% of the revenue can to the community.The fundamentals of this business success stay put with the capacity to deliver value to the guest at matched prices (Ajami, feeble Goddard, cc6).With the background association of stiff competition in the food industry deep down Dubai, this franchise aims at attracting and retaining its guest by means of the provision of fine quality food products and distinctive service. In addition to the above, the fundamentals of this business result encapsulate best demonstration of respectable practice inwardly both the internal and external environment. This is because of the backdrop knowledge of the stringent measures and legislations that manage the food industry.The food industry is expected to grow in the h onest and innovative approaches to food service and delivery allow for shape success within this industry. Changing consumer demographics and increasingly complicated customers atomic number 18 pushing food service businesses to the drag outing boards (Toyne Nigh, 1999). The success of this franchise will depend on the capacity to create a powerful market niche that cannot be broken.General conjunction DescriptionWhat makes the business very quaint is the actualisation that businesses and consumers be increasingly demanding more than leading edge in service and product delivery in the most efficient, time saving and unquestionable way (Hill, two hundred8).The Secret Recipe situated at Dubai Mall, UAE a franchise of Secret Recipes will be primarily reckond in the provision of fine quality cakes and fusion food. This will encompass the provision of more than 20 types of fusion food, 40 cake creations and pastries, with a flavorful kitchen stove of ice cream and beverages .Mission statement To provide world class food services to the customer.Vision To become a leading supplier in fine quality cakes and fusion food.The play along will suggest value addition services innovatively using the real technology for reliableness and efficiency. With a powerful website to be developed, the customers will be able to prove and purchase their preferred choice of quality fine cakes and fusion foods on occupation. The website will be used to advertise and sell the products and services erected by the confederation.Company Goals and ObjectivesGoalsTo vex the franchise operating exactly 3 months aft(prenominal) receiving seemly funding.Obtain $ 200,000 of not bad(p) by 31st December 2010 to round and launch the business towards achieving its long term tendencys.To attain the stated twelvemonth goal of invokeing employees by the beginning of the year 2011.ObjectivesAchieve excellent levels of high ethical standards within the food industry.Have a heal thy, thriving bon ton that is a leader in customer service and that has a loyal customer following.Achieve a sales events target of $20,000 within the first three months of the operation.Business Philosophy The most in-chief(postnominal) aspect of this business is to provide value to the customer through distinctive service and in a manner that guarantees their re change form.The more than 20 types of fusion food, 40 cake creations and pastries, with a flavorful range of ice cream and beverages will be exchange to all customers of different backgrounds in United Arabs Emirates. However, I envisage to draw the larger bulk of my customer base from the residents of Dubai City. Because of the increasing innovative trade approaches, the marketing strategy will strive to reach customers of diverse backgrounds and will then be narrowed down to touch on the unique(predicate) market niche.Food industry is a growth industry that has leaped from one phase to the other and is expected to record tremendous growth in the future tense. Changes that will arise in the future will mainly be in admiration to changing demographics and the complexity in the demands of the customer. This will as well include changes in technology that will define the operations and customer service delivery (Singh Delios, 2005). My company will stay in tandem bicycle with the changes in the food industry and at pace with technological overture to reap the most out of the bene sums presented by these two growth scenarios.My ample strength and competency that will also be my warlike gain is the unrivalled engender in the food industry and chain management. As the owner of this franchise, I plan to put in an aggressive and innovative marketing campaign within this industry that will immediately wad away competition and enhance my entry and strong regional heraldic bearing in Dubai.I strongly believe my competitors strength will be found on tears of operation that have made them r emove a deeper sense of understanding of the customer. In fact, after an intensive interrogation on the competitors strengths and weaknesses, the company realized that the competitors strengths are based on the experience, location, advertisement, employee, technology, financial, semipolitical connection and goodwill.I plan to plough in my vast experience in management within the food industry to his business and find its survival. In addition to the above, my capacity to raise capital that will obscure important business start-up areas will provide me a competitive payoff against my competitors who has struggling with waning confidence in small and medium coat entrepreneurs by banks. Furthermore, I expect to reap from the efforts of the main company in regards to brand and image building.This will be a sole proprietorship type of business. This is because I believe the inability to raise adequate capital random variables the reason behind enlargement and partnerships. Capit al is not a puzzle in my case. Furthermore, sole proprietorship offers the best and simplest environment in regard to decision making (Cherunilam, 2004). I plan to execute my decisions and discharge my duties within this business without any op business office and inhibition.Products and ServicesThis will be an exclusively food business that will only deal with the products of the mother company. I will sell the more than 20 types of fusion food, 40 cake creations and pastries, with a flavorful range of ice cream and beverages offered in allSecret Recipeoutlets.After an intensive research on the competitors strengths and weaknesses, the company realized that the competitors strengths are based on the experience, location, advertisement, employee, technology, financial, political connection and goodwill. These will form the areas that will define my competitive disadvantages.As a in the raw franchise, I plan to get into the market at a more or less reduced sales fee in comparison to my competitors. This will form the introductory offer of the business that is aimed at drawing the customer to the business. trade PlanMy marketing ill revolve around the need to vary my brands to meet local and regional culture because of the understanding that branding act as a means of linking items that are part of product line and emphasizes the individuality of product items. This emphasis can only be achieved in instances where products items fit into the local or regional culture of the target market. This is a food industry and therefore I expect very piddling conflict with the culture of the people in Dubai.In addition to the above, the adapting of these brands to fit into the local and regional culture of the target market is a competitive advantage that is commonly used by competing devoteds engaged in the sale of similar or substitute products. In essence, this means that a firm that outperforms the others in the primary goal of performance-profitability-has com petitive advantage. A reference back to the branding generic model of firms can be made, where the question of whether firms are branding strategies is be driven or value added arises. Value added competitive advantage arises in instances where competing firms attach strong cognizance to the understanding of local or regional culture before launching their product lines. Companies practise in branding strategies that their rival because their products are positioned to capitalize on their unique characteristics of a local or regional group and which, in one or more aspects, their rivals find hard to emulate. This competitive advantage gives it a basis for outperforming competitors because of the value that firms are able to present to the customer. These will define my marketing plan.Management and OrganizationAs I have stated, the mean solar day to day management of the business will be my primary debt instrument with the support of other individuals that will form part of empl oyees in the company. The mathematical function of running the business will be through delegation as per the chain of current bellowDIRECTORS CEOsSENIOR passenger carFINANCE MANAGERASSISTANT AGENTSWATCHMENHUMAN RESOURSE MANAGERThe carriages and the staff are very important for the company as they are the means through which goals are realized, duties are carried out and they provide the links between the organization and the clients.5.2 Management aggroupThe initial management team consists of the founders who will be working jointly as shareholders. The founders of the company share a vision for the success of Secret Recipe Franchise situated in Dubai, UAE. Their duty will involve day to day running of the business which involves finance, logistics and human resource.In future the company will have a general manager, finance manager and human resource manager who must have a gradation or diploma with the relevant course from a recognized University or College.5.3 Other mili tary unitApart from the management team, the company is having three (3) supervisors at the head office and one (1) adjunct supervisor in each department. The company is planning to employ watchmen, office messenger and more assistant agents as we will be expanding. These military group have and will have minimum qualification of O level education and diverse knowledge in the food industry.5.4 RecruitmentThe management team has been able to recruit other personnel through networking and train them within the already existing outlets before they are posted to the new outlets. The business will also consider advertising through posters, internal memo, friends and relatives, internet, electronic media like radio and printed media like newspapers.The recruitment process will involve short-listing of the applicants, interviewing of the shortlisted applicants, selection of the successful applicants and finally issuing the appointment letter. We will also recruit through confirmation o f the interns and the volunteers.5.5 Orientation, training and developing of staffSecret Recipe Franchise Company will carry out orientation, training and development of staff through induction, on the job training, contract training, refresher courses, internship and evaluation after training.The company is looking forward to become custodians of a very thin yet integral good customer trust, therefore the company will maintain refresher courses to ensure all our staffs are properly aline when it comes to personal integrity.5.6 Remuneration/incentives5.6.1 Salaries/wagesThe company will offer to the personnel a very competitive basic salary according to the qualification, experience, position and expertise. The salary will also be based on what the competitors offer and the companys returns. There will be a commission for the sales personnel and prompt payment for wages.5.6.2 Fringe benefitsIncentive is also another means that the company has put at the top of priorities. Incenti ves will enable, motivate or encourage a particular course of action which in turn will contribute to the company success. We will offer allowances in effective injury of overtime, leave, millage, hardship and many more as they may arise. There will be bonuses including awards in terms of value for money and certificates.streamly the company provides tea, soft drink and has installed a television system. The business will soon embark on taking our staff to the trips, have insurance covering for them and remit contributions on their behalf to their respective insurance companies.5.7 Support servicesThe company will require the following support services financial advisor, legal advisor, banking system, security support services, infrastructure and insurance services.9. FINANCIAL PLANThe company has at its disposal a sum total of $20,000 as a financial source from directors personal savings. We are therefore looking for funding from other investors and banks. The business finance will be used to for the facilities, equipments, materials, bills for operating expenses and salaries, fees and other termss.9.1 Capitalization9.1.1 Own contributionCapitalization based on the shareholders contributions is $20,000.9.1.2 Proposed capital from borrowing sourcesFor the business to operate as proposed, the start-up cost must be met. The company is therefore proposing funds from borrowing sources of $ 20, 0009.1.3 perfect investmentTotal investment is the sum of own contribution and the proposed funds from borrowing sources which is $40,000.The following sections lay out the details of the financial plan for rapid, but controlled growth for the next one year. The simple structure to be adopted by the company will provide a great deal of flexibility resulting in few coordination problems hence quick reaction to changes in the market.7.3 immediate payment flow projection for the year 2011JanFebMarApril mayJuneJuly loftySepOctNovDecTotal property INCash carried in adva nce3001,866.671,733.341,800.011,851.681,903.352,005.022,056.692,088.362,180.032,216.72,303.3722,305.22 bring2,000000000000002,000Cash from Sales2006008008508509009009001,0001,0001,0501, deoxycytidine monophosphate10,150cash come onSalary3504504505105105105105105505505505506,000 aim404040454545454545505050540 percentage trackCosts505050505050507070707070700LOAN PAYMENT93.3393.3393.3393.3393.3393.3393.3393.3393.3393.3393.3393.331,120Drawings1001001001001001001501501502002002001,650CASH BALANCE1,566.67-133.3366.6751.6751.67101.6751.6731.6791.6736.6786.67136.672,140.04 cumulative1,866.671,733.341,800.011,851.681,903.352,005.022,056.692,088.362,180.032,216.72,303.372,440.04NOTE solely values are in $ (00)7.3 Cash flow projection for the year 2011JanFebMarAprilMayJuneJulyAugustSepOctNovDecTotalCASH INCash carriedForward2,440.042,487.792,535.542,583.292,631.042,678.792,726.542,774.292,822.042,869.792,917.542,965.2932,431.98LOAN0000000000000Cash from Sales1,099.581,099.581,099.581,099.58 1,099.581,099.581,099.581,099.581,099.581,099.581,099.581,099.5813,195CASH OUTSalary6506506506506506506506506506506506507,800Rent58.558.558.558.558.558.558.558.558.558.558.558.5702Office RunningCosts58.3358.3358.3358.3358.3358.3358.3358.3358.3358.3358.3358.33700LOAN PAYMENT93.3393.3393.3393.3393.3393.3393.3393.3393.3393.3393.3393.331,120Drawings2002002002002002002002002002002002002,400CASH BALANCE39.4239.4239.4239.4239.4239.4239.4239.4239.4239.4239.4239.42473.04CUMULATIVE2,487.792,535.542,583.292,631.042,678.792,726.542,774.292,822.042,869.792,917.542,965.293,013.04NOTE All values are in $ (00)7.3 Cash flow projection for the year 2012JanFebMarAprilMayJuneJulyAugustSepOctNovDecTotalCASH INCash carriedForward3,013.043,196.493,379.943,563.393,746.843,930.294,113.744,297.194,480.644,664.094,847.545,030.9948,264.18LOAN0000000000000Cash from Sales1,429.51,429.51,429.51,429.51,429.51,429.51,429.51,429.51,429.51,429.51,429.51,429.517,153.5CASH OUTSalary8458458458458458458458458458458458451 0,140Rent76.0576.0576.0576.0576.0576.0576.0576.0576.0576.0576.0576.05912.6Office RunningCosts757575757575757575757575900LOAN PAYMENT0000000000000Drawings2502502502502502502502502502502502503,000CASH BALANCE183.45183.45183.45183.45183.45183.45183.45183.45183.45183.45183.45183.452,201.4CUMULATIVE3,196.493,379.943,563.393,746.843,930.294,113.744,297.194,480.644,664.094,664.095,030.995,214.44NOTE All values are in $ (00)9.6 break-even levelsCheese Cakesumber and FreshCream CakesHealth CakesBrowniesRevenue6,342,0001,080,0001,000,0001,008,000720,000Selling Price (SP)/unit325632,2507080Units198,18819,2863114,4009,000Variable cost/unit..5428,37515Variable cost..1,041,444879,625135,000Contribution6,342,00038,556120,3751,008,000585,000 burden Average Contribution (WAC) = total contribution/total revenue (Johnson Turner, 2003).= $ 80,939.31/$ 101,500= 0.8 kick the bucket Even-Point (BEP) = Fixed cost/WAC= 90,500 Units9.7 Measurement of profitability9.7.1 direct profit allowance account oper ational profit margin = (operating profit/Revenue) x100First year direct profit margin = (1,400/101,500) x 100= 1.38%Second yearOperating profit margin = (4,730/131,950) x 100= 3.58%Third yearOperating profit margin = (22,009/171,530) x 100= 12.83%9.7.2 Current RatioCurrent Ratio = Current assets/Current liabilitiesProjected Current Ratio by the end December 31, 2011 = 21,000/11,200= 1.8759.7.3 Return On coronation (ROI)Return On Investment (ROI) = Net Profit/InvestmentReturn On Investment (ROI) for the ended December 31, 2010 = 1400/23,000= 0.06