Research Topics: Planning Operations Essays

Operations Plan

Operations Plan             In business, creating a business plan is an important step in order to give a vivid detail regarding the set of business goals. It does not once the business plan is already finished or has been created. In order to achieve the desired goals written in the business plan, an operations plan must be made. The operations plan presents the action plan of the company for executing its objectives and goals. And according to  (2007) the details of the operations plan include the short term processes and the long term processes.             Technology nowadays is rapidly changing and evolving. It makes the business easier to manage. Video conferencing is one of the fastest rising types of technology utilised in a number of businesses in the world. The company wants to use video conferencing in the business; however there are various types of video conferencing and in order to determine the one that fits the company an operations plan must be made. Content of the Operations Plan Business location: video conferencing is part of the on-line business of the company, and the main location is the internet. On the other hand, businesses than in cyberspace also needs a physical location and in the case of the business, it is the offices of the organisation. The video conferencing could be a useful tool in managing the process of marketing of the products. Operating facilities and equipment- after the company have established or identified the location of the video conferencing system, a description of the assets of the business in operation such as the building or the room wherein the video conferencing equipment will be placed, the fixtures, software and hardware. In the case of the organisation the integrated videoconferencing system will be utilised. Integrated video conferencing system is a group of conferencing systems that is often times used in conference rooms with more than 2 participants. This system is composed of centralised location, video sources, and cameras placed in one conferencing area. Production and Operating Procedures- in this part of the procedure the day to day operations of the company will be discussed. And in daily operations the video conferencing equipment is important; therefore the operating procedures of the chosen video conferencing system will be discussed by the management of the company. In the case of the integrated video conferencing, the centralised feature of the system is very appropriate for the company because it will make deals and discussion easier. Moreover, maintenance would not be hard since the system is centralised. Purchasing Procedures- after determining that the integrated video conferencing will be the one utilised by the company, the purchasing procedure of the product will be the next step. The company must therefore scrutinise the possible companies that will provide the system and they could do that by inviting various companies to bid. Inventory management procedures- once the product is purchased the company will conduct inventory of the systems in order to efficiently manage the processes of the company that involves using video conferencing equipments. Quality Control Procedures-  video conferencing is a relevant tool in most businesses today therefore the company must always check the quality of the system in order to maintain the product and develop risk management strategies if problems will arise. Credit:ivythesis.typepad.com

Operations Plan

Operations Plan In business, creating a business plan is an important step in order to give a vivid detail regarding the...

Tourist Destination: Planning and Development

Contributions of destination of development models to destination planning             Tourism is one of the recreational practices an individual undertakes. People who exercise tourism are called tourists. According to  (2005) due to the fact that tourism is now one of the most popular recreational activity of people all over the world, in the year 2004 around 763 million tourists arrive in various parts of the world. Tourism plays a vital and crucial role in the economy of any country because the income and profit that is being obtained by the utilisation of products and services of the tourists will generate taxes which can be levied to the government. In addition, tourism provides employment and aids in the development of the economy of the nation. According to  (2000) tourism is not just a recreational and decorative activity but instead tourism correlates centrally to the modernity in numerous dimensions such as politics, moral, economical and technological.             This paper examines the various models of development destination. Models such as the Tourist Area Life Cycle, Resort Development Spectrum, and Touristisation model will be discussed. In addition the strengths and weaknesses of the three models will also be discussed in this paper. In the Tourist Area Life Cycle (TALC) Model the stages will be examined. The TALC model will be illustrated using the Danxia Mountain in People’s Republic of China wherein the development stages are highlighted. The measures that the tourism authority has taken up in the product re-organisation, transformation, rejuvenation, and specialisation of the Danxia Mountain in People’s Republic of China will also be discussed. Finally, a conclusion will be made at the end of this paper.             Hong Kong is one of the most popular destinations in the world and the tourism industry is one of the most important aspects in the economy of Hong Kong.  According to the  (2007) the industry held another record last 2006 in which more than 25 million tourists arrived in Hong Kong. In order to maintain the number of tourist arrivals in Hong Kong, the tourism department plans, develops, and audits the possible competitive destination. Tourism planning, according to  (1985) is the procedure which is concerned with expecting and regulating the transformation in the system in order to enhance the methodical development benefits from the society, economy, and the environment. In planning, especially, in the industry such as tourism the stakeholder plays an important role. A stakeholder is an individual or group of individuals that is changed negatively by the causes and the consequences of the issues and decisions (1992).              According to (2002) there are two approaches in tourism destination planning and these are project planning approach and organic planning approach. In project planning approach the steps include determining the sponsorship of the projects, and also the leaders behind it. The tourism authority must set goals that must be attained within the timeframe. Examine systematically the strengths and weaknesses of the planned project. Determine the purpose of the project and identify the best strategy to utilise. Designate the priorities and responsibilities of the individuals involved in the project. Excite the people involved and guide the development of the plan, and then monitor the development and review the feedback Organic planning process on the other hand includes the following steps the determination of the problem and opportunities within the planned project, establishment of goals that must be attainable, analysis of the area of the project, as well as, the entire location of the project, detailed studies on the project and are, planning the concepts of the business, as well as, the options involved, development of the guidelines, creating detailed designs of the project, implementation of the designs and the project, and management and evaluation of the project.             In developing the destinations in any country a destination development model is important. There are three types of destination development models and these are the Tourist Area Life Cycle, the Resort Development Model, and the Touristization Model. Resort Development Spectrum- according to  (2000) it is a destination development model wherein the tourist destination is usually a commercial area wherein the products and the services are produced and sold to the tourists. These commercial facilities entice the existing and new markets in which it develops new products and facilities.             In addition, according to Predeaux the capacity of a tourist destination to expand will be determined by the infrastructure of the area if the infrastructure is poor then most probably there would be fewer financiers that will invest in the area, transport is another aspect in expansion, if the area is not accessible to transportation, inviting investors to expand will be hard, ecological constraints such as storms and earthquakes could also hamper the expansion of the tourist destination, the physical constraints such as the political stability in the area, and the attractiveness of the resources, if the destination could be an attractive destination especially for investors, then there is a probability that they would invest in order to expand the area.             Resort Development Spectrum has its own share of strengths and weaknesses. According to  (2003) the advantage of the resort development spectrum model is that it is multidimensional and based on an understanding of the demand-side response to the market that operates in resorts and integrates the elements of Fordist and post- Fordist interpretation of the production and demand. Moreover, the model can be a possible candidate for planning tool in predicting the patterns of resort development in the future. However, there are disadvantages of the model, according  (2004) the disadvantages of disadvantages and limitations of the model are over-commercialization and a poor image most resorts or tourist destinations are overly commercialised and tends to be over-crowded which can lead to a negative perception of the place by the existing and possible tourists, another is the deterioration of the physical environment due to mass tourism. It includes the loss of the natural habitats of the plants and animals and increase in air, water, and noise pollution and even damage to the historic places, and then the lack of investment because of over-dependence of the package holiday which is characterised by high volume and low yield.   Touristisation Model- according to  (1983) this destination development model focuses on developing the rural area for tourism. Young enumerated the stages in the touristisation model and these are: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Early traditional</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Late traditional</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Initial tourism in which the rural areas are explored to determine potential tourist destinations.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Early tourism in this stage the government as well as the government and private sectors are involved in planning and developing the destination.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Expanding tourism in this stage the plans are created and put into action.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Consolidation stage in which all of the development projects and ideas are united.</li> </ul> Touristization model juts like other destination development models have strengths and weaknesses. One of the strength of the model is that it helps the people, particularly of low-income status living in a possible tourist destination to gain extra income. Areas that are good locations for tourist destination can be developed in order to attract possible tourists in the area. However, the model has its share of disadvantages; according to  (2003) utilisation of touristisation model will slowly lose the identity of the place, in traditional societies the quick leap from the traditional way of earning to a faster one through tourism seemed to be immoral and almost indecent. In addition, the changes that occur in traditional villages would relate directly to the differences in the aesthetic, ethical and economic values between those proposing the tourism development and the people that want to retain their traditional way of living. In addition, the economic advantages relies upon the people living in the area whether they will accept the drastic changes in their way of living, culture and even personal identities. Tourist Area Life Cycle- according to (1980) this destination development model is utilised for the evolution of a destination. In addition, Butler (2006) TALC model has proven to be an important aspect in articulating the evolution of the area for tourism, at the same time, verifying the imitation of the predictable pattern of the stages of the lifecycle such as introduction, expansion, consolidation, and contraction which is related to all types of organisation may it be biological, genetic, cognitive, cultural ecological, or economic.             From the three destination development model, the most preferred especially by developed nations is the Tourist Area Life Cycle, due to the fact that the model goes with the flow in the changes and preferences of the customers. Tourism is also a business, and businesses constantly evolved in order to keep up with the trends and the competition with others. Although Tourism Area Life Cycle is often favoured by a number of sectors in the society particularly the tourism government authorities, there are still disadvantages of the said model. According to  TALC Model has its strengths, and one of those is it is useful in interpreting and explaining the past and can be utilised as one of the prime attractions in the tourist destinations. In addition, in the context of fully-developed destinations the TALC model could be utilised in a strategic manner to instigate action to prevent the decline. Moreover, strength of the model according to  (2006) is that it is a useful tool for understanding the development patterns of mass tourism destinations.  The disadvantages of the model were discussed by some critics of the model and one of those is Agarwal (1994) he discussed that the model should have alternative and additional stages after the stagnation stage of the original model. In addition, according to Baum the original TALC Model does not acknowledge the probability of having further stages which could take place as associated alternatives to either decline or rejuvenation. Another limitation of the model, according to Morais et al is that the TALC Model is not applicable model of tourism particularly in the developing world wherein the appropriate model is the ethnic tourism.             The stages in the Tourist Area Life Cycle, according to Prideaux are the following: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Exploration- an area usually not yet developed is explored in order to determine if it has the potential of being a tourist destination. The task force hired by the tourism authority and the consultants are the individuals involved in the exploration of new places. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Involvement- once the place is explored and has been considered as a possible tourist destination, the relevant individuals and group of individuals are going to discuss about the development plans in the area, concerns such as in the environment will be tackled.  </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Development- once the key organisations and individuals have finished discussing and have come in to terms then the development of the project will begin. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Consolidation- the elements that are important in developing a new tourist destination are merged in order to perform a related function. Example while the area is being developed, the government as well as the owners of the businesses in the area will promote the destination to attract more consumers.  </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Stagnation- it is the period when the tourist destination has little or nor growth at all. Stagnation usually happens if a problem occurred such as damaged of property due to calamities like earthquakes and storms, or even outbreak of a disease such as SARS. The income generated from the tourist destination declines during this particular stage. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Decline to Rejuvenation- if the tourism authority, as well as, the owners are keen in gaining more profit they would look for ways to restore the vitality and vibrancy of the tourist destination. An example is during the SARS outbreak in Hong Kong wherein the tourism industry was greatly affected and a number of tourists have withdrawn their visits, however after that stagnation Hong Kong was able to recuperate from the financial losses and once again became one of the premier destinations in Asia.  </li> </ul> According to  () tourism area life cycle model is simple, plausible, and obtains interesting outcomes, it is the first analytical framework that incorporates the features of demand and supply of the customers. The Application of Tourist Life Cycle Model in Danxia Mountain             According to Danxia Mountain is one of the most famous geological parks in the People’s Republic of China and it is located in the northern part of the Guangdong Province. The area is approximately 180 square kilometres. The usual features of the mountain are its red hills and stones. Exploration- the place has not been explored by the tourism authority for numerous years. The tourism authority was able to examine the area and determine possible tourist attractions which are the temples in Guangdong that were built 1200 years ago.  Involvement- upon determining that the area could be a possible tourist attraction the group of individuals that were involved created plans to develop the area. The development of a new attraction was discussed and around 3.5 square kilometres of Danxia Mountain was opened for tourists. Development- even though it is not a major attraction, a number of people have visits Danxia Mountain already, however the development of the mountain began in 1970s; this is he development stage of the Mountain. Consolidation- Danxia Mountain was successful in attracting tourists, and it became an important pilgrimage destination for the Buddhists, at the same time, the area became popular for its scenic view of the sunrise, as well as, the sights that the mountain beholds. Stagnation- however the tourist arrivals in Danxia Mountain have declined due to mismanagement and a tougher competition from other resorts in China, as well as, in Asia. The number of tourists became stagnant until the tourists that visits the place declined. The tourism authority still made efforts to promote the destination, but still it was not enough to lure the visitors. Decline to Rejuvenation- the tourist influx in Danxi Mountain has immensely decreased despite of the efforts made by various sectors in the industry. In order to revive the splendour of the Danxia Mountain Prof.  was invited to work in reviving the mountain. The main reason for the decline of tourist arrivals was the poor management of the area, and in order to solve that problem the image of Danxia Mountain will be enhanced and the resort will open new attractions. After careful deliberation on the situation, the team of Prof. Bao selected YangYuan Stone as the main feature of the resort, aside from the new attractions it offered. And in the year 1995 the Danxia Mountain received tourists again and the outcome has been positive because the arrivals have been increasing since it opened again.               In addition, according to Butler the first application of the Tourist Life Cycle Model in China was in Danxia Mountain in 1993, wherein Professor Jigang Bao found out that the mountain was in its Stagnation Stage and the best way to attract new tourists is to develop new tourist attractions, and after deliberating the factors associated with developing new attractions the Yangyuan Stone Scenic Spot was selected as the new attraction afterwards it was developed. Danxia Mountain was quickly rejuvenated after selecting and adding new tourist spots in the area.             The successful utilisation of the Tourist Area Life Cycle model in the planning and developing of Danxia Mountain exhibited that the appropriate analysis of the area could determine the proper ways in rejuvenating and reviving the tourist destination. Conclusion             Tourism is one of the pillars in the economy of Hong Kong and it is an important source of income for the nation. Hong Kong has already faced a number of challenges in their tourism industry; it has experienced ups and downs due to a number of reasons. But despite of those, Hong Kong remained one of the premier tourist destinations not just in the Asia Pacific Region but in the whole world as well. In order to keep and even increase the amount of tourist arrivals in the nation, the tourism authority of Hong Kong must utilised various forms of destination development, they can use any of the three models to promote and maintain the tourist destinations. In order to ensure that the developments of new destinations, as well as the existing destinations are tourist and investor friendly, the tourism authority should monitor the new developments in the area. Aside from monitoring the developments in the tourist destinations, the authorities, as well as, the people involved such as the investors and the public should identify the measures that would improve the situation, and alleviate the problems even if it is small. Through this, the authorities could be able to prevent the catastrophes from emerging. TALC model is the first tourism framework developed and aside from the fact that it is a model for destination development it could also be utilised in monitoring the evolution of the area, TALC could be able to determine whether the area is already stagnant and authorities will be able to prevent the decline of the area. TALC is also an appropriate tool for longer tourism plans because the stages are created for a longer span of time. The authorities could already visualise future problems and they could create risk measures to counter those probable problems. Credit:ivythesis.typepad.com

Tourist Destination: Planning and Development

Contributions of destination of development models to destination planning Tourism is one of the recreational practices an ...

Network Maintenance Plan

Network Maintenance Plan                 Network planning and Design aims at ensuring that the network or service meets the needs of the users and operators by encompassing topological design, network synthesis and network realization. Involve in the process of network planning and design is the creation of a Network Maintenance Plan. This very important process will ensure good performance and reliable network operation and service. Investing in network maintenance improves the performance and longevity of the network. A well-maintained network performs better, lasts longer and costs less than networks that are not maintained regularly.   Processes:             The company’s maintenance plan will include Network modification of servers and workstations, download of virus and spyware updates, reviewing and addressing system performance and make small adjustment on the system to ensure optimal performance. It will also include fixing some minor problems on particular part of the network. The network maintenance plan will be carried out by an experienced engineer to keep the smooth operation of the network and to keep it trouble free. The Network Maintenance Plan is intended at eliminating slow networks that often lead to poor performance or network breakdowns. The Network Maintenance Process involves checking switches, checking hubs, checking routers, checking print servers, checking printers, checking firewall rules, checking firewall logs, checking UPS’s and more. It will also update the firewall operating system.   Procedures: 1. Network Overview involves checking the maintenance status of the network. It will also allow the maintenance team to define new maintenance needs and to check performed maintenance actions. 2. Recording of the maintenance and service tasks performed in the network. Searching of upcoming maintenance needs and performed maintenance actions. 3. Routine technical maintenance of telecommunication equipments to ensure network security. 4. To ensure the integrity of security controls, the equipments must be regularly checked. 5. Periodical checking of power and grounding to ensure keep them within specifications. 6. Adequate power backup maintenance. 7. Creation of error-reporting logs of equipment failures that will focus on the cause of error. 8. Putting institutional identification on each item and recording of the maintenance that was done on a specific item.          Expected Outcomes:             The Network Maintenance Plan is expected to increase the company’s profitability and improve the network by: <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Network Downtime Reduction</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Network Performance Improvement</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Longevity of network equipments.</li>                                     Credit:ivythesis.typepad.com

Network Maintenance Plan

Network Maintenance Plan Network planning and Design aims at ensuring that the network or service meets the needs of the u...

Undertake Business Planning

FEASIBILITY STUDY PIE FACE     Table of Contents TITLE PAGE……………………………………………………………………………………………1 TABLE OF CONTENTS……………………………………………………………………………2 PART 1: INTRODUCTION………………………………………………………………………..3 1.1  Personal Details………………………………………………………………………..3 1.2   The Business Idea……………………………………………………………………3 PART 2: CRITICAL FACTORS…………………………………………………………………..5             2.1 Critical Factor #1……………………………………………………………………….5             2.2 Critical Factor #2……………………………………………………………………….5             2.3 Critical Factor #3……………………………………………………………………….6             2.4 Critical Factor #4……………………………………………………………………….6 PART 3: MARKET ANALYSIS……………………………………………………………………6             3.1 Market Size and Segments…………………………………………………………6             3.2 Market Trends…………………………………………………………………………..7             3.3 Life Cycle/Seasonality………………………………………………………………..7             3.4 Target Market Characteristics……………………………………………………..8             3.5 Competition………………………………………………………………………………8             3.6 Competitive Advantage………………………………………………………………9             3.7 Location and Distribution……………………………………………………………10             3.8 Product Mix……………………………………………………………………………..10             3.9 Pricing…………………………………………………………………………………….11 3.10 Promotion………………………………………………………………………………11             3.11 Contracts/Letters of Interest……………………………………………………..12 3.12 Preliminary Sales Projections………………………………………………….12 PART 4: RESOURCE REQUIREMENTS…………………………………………………..13             4.1 Business premises…………………………………………………………………..13                      4.2 Plant and Equipment………………………………………………………………..13             4.3 Distribution Channels……………………………………………………………….14             4.4 Sources of Supply……………………………………………………………………14             4.5 Technical and Expertise required……………………………………………….15 4.5 Management Expertise required…………………………………………………15 4.6 Professional Advisers………………………………………………………………..16 PART 5: FINANCIAL VIABLITY…………………………………………………………………16             5.1 Sales Income…………………………………………………………………………..16             5.2 Financial Viability……………………………………………………………………..16 PART 6: CAPITAL REQUIREMENTS………………………………………………………..17             6.1 Summary of Capital Required…………………………………………………….17             6.1 Sources of Equity Capital/ Details of Ownership             Structure………………………………………………………………………………………17             6.3 Sources of Loan Capital…………………………………………………………….17 CONCLUSION……………………………………………………………………………………….18 APPENDIX…………………………………………………………………………………………….19         Part 1 Introduction 1.3  Personal Details 1.4   The Business Idea The business is a Pie Face franchise that will operate in Chatswood. The food franchise industry has been the primary choice considering Australian’s love for food. This business includes an exciting gourmet pie concept that will surely click to customers of all ages. Pies are the third most popular food products in Australia next to sandwiches and hot chips. The annual consumption of this food product has been estimated to reach 260 million. The popularity of pies among Aussies indicates the future growth in this business sector. With this, I have decided to acquire a franchise at the Pie Face which provides superior franchising opportunities for its prospective franchisors. The business has started its franchising since 2006. The present owners have been operating for the past four years and during this period they have managed to expand their shops. Today, Pie face is embarking on a national franchise program and is targeting to penetrate the rest of Australia. The shops are designed not to be too big and cater sufficiently to sales targets. If the shops are too big, the owner is likely to pay high for its rentals. The products are delivered from the Sydney factory which is then distributed to the shops. All of these will provide an opportunity to operate a small business. The products I could sell include: ·         Specialized gourmet pies ·         Freshly baked muffins, cookies, croissants and brownies ·         Coffee and cold beverages I would like to take advantage of Pie Face launching of its franchise program. Thus, I would commence the business as soon as possible. To conclude this feasibility study, I want to prove that: ·         The business is competitively positioned in the market and has potential for future growth ·         The business franchise is financially viable and will give fulfilling returns Part 2 Critical Factors Critical Factor #1                 The government has examined the dietary intervention methods to achieve better health outcomes and to contain the escalating health care costs. Internationally, the World Health Organization (WHO) has identified obesity epidemic among Australian children and adults. Thus, there is the need for food franchisers to include healthy foods in the products to be offered. Critical Factor #2             The proposed National Food Safety Standards are aimed at reducing the incidence of food borne diseases in Australia. Many organizations has recognized the need for safe food and thus implemented preventive food safety management systems. However the proposed standards will cost the business of approximately 0 with an annual on going costs of ,080. Compliance for small business is estimated to reach ,071. Critical Factor #3             The Trade Practices (Industry Codes-Franchising) Regulations 1998 made under the Trade Practices Act 1974 provides a set of guidelines for franchising practices that must be complied with by both he franchisor and franchisee. Critical Factor #4                         Prior to the final meeting with the franchisor, further issues will have to be discussed in regards to the pie franchise which will include the franchise code of conduct, disclosure of documents and the franchise agreement. All of which will be discussed and an independent legal and financial advice should be sought out to examine the agreement. The franchise agreement will serve as the basis of the relationship with the franchisor. Part 3 Market Analysis             3.1 Market Size and Segments The intended market area is in Chatswood, a suburb in North Shore Sydney, New South Wales Australia. The area is located 10 km north of downtown Sydney and is considered to be the major commercial and retail hub of the north Shire district. It has two major shopping centers and several high rise offices and apartment towers and is close to the Lane Cone National Park. The population of Chatswood is 18,190. The age group of 20 to 39 constitutes the largest proportion (49%) of the total population.  Chatswood is a relatively affluent area with 40.1 5 of the population earning over AU,724 in 2001. This has been the highest Australian quartile of income earners. ()             3.2 Market Trends                         The food franchise industry is a seemingly daunting market to invest in. The competition is becoming more intensive as pie franchise seeks to offer the best quality pies to the consumers. The Australian pie franchise market is dominated by three big names: Jesters Franchise, the Big Dad’s franchise and Pie Face franchise. The fast food franchise industry is strife and is characterized by intense competition. Even so, the pie franchise industry is becoming more and more homogenous with the giants getting what is left of the fast food industry. In such case there is the need to offer something really different and unique in the fast food franchises.             3.3 Life Cycle/Seasonality All the products will be available all throughout the year. There appears to be no seasonal variation at least one that will greatly impact the franchise since pies are one of the staple foods in Australia. Also, the wide range of product selection will mitigate any seasonal effects on other products. The sales are expected to become stable until the several few months.             3.4 Target Market Characteristics Pie face is designed to appear youthful and irreverent so that it could appeal to consumers of all ages. In so far as its present operation is concerned, Pie Face has been attracting a wide range of consumers from young and old, men and women. Surprisingly, at least fifty percent of its customers are women. The customers include a lot of mothers and children and couples on the way home on Friday and Saturday night who want something to eat. Many of the women also purchased healthy wraps and mini pies. Kids will also love the stickers that come with the pies. The primary target market will be families specifically mothers and their children. As evidenced by the present Pie Face operations, a large proportion of consumers are mothers and women who seek healthy and convenient foods. This target market is viable since majority of the population within the geographic area comprised of women (54%) and families (49%). This would mean that the target market is largely available within the chosen area.             3.5 Competition             There are three major names in the pie franchise industry throughout Australia. The main competitors would be Jesters franchise and Big Dad’s franchise.             Jesters is a 100 percent Australian owned pie franchise which resulted from the merger of Shakespeare’s Pie and Jesters Jaffle pie company. This fast food has been a result of 20 years of experience in gourmet, manufacturing, retailing, and marketing and small business management. It offers a strong brand strategy that sells quality products backed by an experienced team. Big Dad’s is also a 100 percent Australian owned company which sells pies containing 95% fat free beef. Its main stay is its steak pies complemented by a variety of pie, sausage rolls, pastries and a selection of cakes.             3.6 Competitive Advantage The Pie Face franchise is the most exciting gourmet concept in Australia. Compared to its competitors, the Pie Face is a young and dynamic concept in the pie franchise industry. It set out to make quality gourmet pies with a gimmick. The products are unique that each of the delicious pies has its own face that denotes the flavor of the pie inside. A smiley mouth indicates chicken, S on the side is for steak and V is for vegetable. Aside from the faces, there is also a unique brand logo created for each item. Pie Face stand out from the other fast food franchise pack with its specialty in gourmet pies well complemented by other delightful selection such as muffins, cookies, brownies, croissants, wraps, sandwiches and freshly brewed coffee. The pies are prepared fresh daily in the pie factory and the franchise owner will only have to worry of popping them in the oven. In addition to this, Pie Face offers a business format that can be availed of easily by anyone who intends starting up a small business. ·         the set up cost is low as fit outs are simple ·         the start times are not demanding ·         the product is made fresh daily in front of customers ·         the product is of premium quality and healthy ·         the product lines are focused, making operations simple ·         the staff costs/requirements are low due to low labor at store ·          the brand is well recognized and has strong retail appeal The franchise can also be expected to have a higher success rate than a start up business. Customers are already familiar with the brand and instant sales and credibility can be expected.             3.7 Location and Distribution                         The business will be operated in Chatswood. The products will be prepared in the pie face factory in Sydney and delivered fresh each morning in the shop. As a franchisee, I would be responsible for baking the pies, cookies, muffins and croissants fresh everyday in front of the customers. All the hard works are done in the factory and pie dealers are left to bake and merchandise the products and cater to the needs of the customers.             3.8 Product Mix             The products to be offered are the following: Party Tray: Mini savory pies, mini sausage rolls, sausage rolls, regular savory pies, assorted mini sweet pies Pie Flavors: chunky steak injected with cheese, chunky steak, mince beef with tomato chutney, spinach sundried tomato and ricotta, bacon and egg, chicken mushroom, Mexican vegetable, Mexican vegetables injected with cheese, Thai chicken curry Other Selections: muffins, cookies, brownies, croissants, wraps and sandwiches Beverages: freshly brewed coffee and cold drinks and juices including Pepsi, fruit juice and sports drinks             3.9 Pricing         Party time 3 6 12 30+ Mini savory pies .75 .25 .95 .65* Mini sausage rolls .75 .25 .95 .65* Sausage rolls .95 .95 .95 .00* Regular savory pies .95 .95 .95 .00* Assorted mini sweet pies .50 .50 .50 .25*             3.10 Promotion             Advertising and promotions will be essential part of the marketing strategy. Highly visible and strong advertising will enable to develop a strong position in the market.  The marketing activities are to be carried out by the mother company through the Sydney Local Promotions and are included in the establishment costs. Also, there is a required payment for ongoing royalty and marketing levy which will be used to create greater awareness of Face Pie products to drive further growth.             3.11 Contracts/Letters of Interest             Not Applicable             3.12 Preliminary Sales Projections              The initial customer base is expected to reach 25-35 (including take home and dine-in) on a daily basis. The average number of customers is 30 and the average amount spend by each customer is to reach . Assuming such projection is met, the monthly sales (for 30 working days) for the initial operation will reach 000. For the succeeding years, the number of customers is expected to grow and the sales to increase.                               Preliminary Sales Projection Year 1 (based on gaining 5 customers monthly) Month No. of customers Sales 1 30 000 2 35 500 3 40 000 4 45 500 5 50 000 6 55 500 7 60 000 8 65 500 9 70 950 10 75 450 11 80 950 12 85 450 Total for the end year   4800             3.13 Future Opportunities              In the future, the franchise can expand by introducing new products. Pie Face will continually develop its current product line and research opportunities for other products. While most of the pies are intended for take home, the dine-in part of the business would eventually be expanded to attract more customers and add to the sales. Part 4 Resource Requirements             4.1 Business premises         The business will be operated in Chatswood in New South Wales Australia. This area is major commercial district in the north. It is home to major shopping centers and other business establishments.             4.2 Plant and Equipment             The store fit put will be handled by the Pie Face main office. The design and lay out will be developed based on the new premise and the experience with previous stores. The best available equipments will be selected designed to the company’s specifications and requirements. Experienced shop fitters will supervise the construction of the store. The basic equipments needed include the following: ·         Tables and chairs ·         Point of Sales equipment ·         Signage ·         Business cards, marketing aids and uniforms ·         Pie warmers ·         Hot pie display ·         Pie heaters ·         Food warmers ·         Drink mixer and coffee dispenser             4.3 Distribution Channels Finished products will be delivered every morning from the central kitchen. After which, the freshly baked products are delivered at the store level. The primary concern of the franchise is to order, bake, merchandise and sell the products. All other works are done within the pie face factory.             4.4 Sources of Supply             Ready-to-bake goods are manufactured in the central kitchen and supplied to the franchise on a daily basis. The pie face factory ensures that quality ingredients are used from the point of production and that freshness and value are maintained. All of these products are made by the central kitchen and are merely delivered to the franchisee for baking and selling. This will enable the franchisee to focus on the selling the pies and serving the customers. The retail system including operations manual, site selection and least negotiation as well as ongoing training and support will be provided by the company to help establish and operate the food franchise. Other ingredients and supplies will be delivered by local suppliers organized by Pie face. Such arrangements are made to guarantee the continuing supply of quality ingredients. Also, the best quality ingredients offered at the lower prices can be acquired through arrangements with the suppliers.             4.5 Technical and Expertise required In terms of skills, Pie Face will need to employ staff with strong customer service and good merchandising skills. They must be customer oriented, friendly and enjoy serving people. Employees must work in a team environment and undertake customer service and barista duties which involve preparation and service of food and hot and cold beverages. The focus on merchandising must be reflected through the variety of products on display and their good appearance. On the other hand, the baking process is not very difficult. Rather it is a simple process that can be learned in just an hour. 4.5 Management Expertise required The daily responsibility of the manager is to manage the operation of the store. This will include the estimation of food supplies, placing orders with the suppliers and scheduling the delivery of fresh food and beverages. The efficient use of food and supplies must also be ensured to avoid wastages. The quality of food and services will also depend on the manager’s ability to hire, train and supervise competent staff.   4.6 Professional Advisers As a franchisee, I am entitled to seek an independent legal and financial advice outside. Such help will provide a greater understanding of the prevailing franchise regulations and my rights as a franchisee. In addition to this, I could acquire an expert opinion as to the financial prospects of the business. Part 5 Financial Viability   5.1 Sales income                     5.2 Financial viability The figures show that the invested capital can be regained during the first year if the preliminary sales projections are to be met. To earn the target annual sales the store needs to earn 56.98 daily. That is:   Desired income                  4,800       = 56.98/day     No. of Days                             365   Part 6 Capital Requirements             6.1 Summary of Capital Required              The investment amount required to establish the Pie Face store in Chatswood ranges from 0,000.00-0,000.00 including the initial franchise fee. Total Capital Required                    Sources of Capital   Franchise fee           0,000   Non Current Assets ,000     Equity Capital Personal Savings     0,000   Capital Loan                         0,000                           6.2 Sources of Equity Capital/Details of             Ownership Structure                          The business will be operated solely by me. This ownership structure is less complicated since minimal risks are involved. It will also serve as a method for self employment.  Some of its advantages include: (1) a great degree of independence and autonomy (2) tax for such business are less than those in partnerships (3) business losses can be offset through other tax returns and business profits need not be shared with other owners             6.3 Sources of Loan Capital             The capital will be obtained from a lending institution where minimum collateral is required. Fix rate loans can be sought that will require a fixed interest rate for a set term. After which the agreement will be renegotiated with the lending institution. This way I would know the monthly loan repayments during the period of the loan. It will also provide an option of repaying interest only or the interest and the capital. Conclusion             There are numerous lists of franchising opportunities throughout Australia although the food franchise can be considered to be the most viable option. Food is an indispensable part of everyday life and the love of Australians for it leaves no doubt that the business will click. Aside from this, pies are increasingly becoming favorite food products in Australia. The market trends in the pie franchising industry signify the potential of doing business in this sector. For franchisees, the first thing to be considered is the established mark of the franchise in the market. In this regard, I have chosen the Pie Face franchise which is considered to be one of the three giants in the pie franchising industry in Australia.             In terms of finances, the capital requirements are relatively high but can be acquired through lending institutions. Lenders are aware of the costs associated with food franchise. They become more willing to provide funds due to the fact that food franchise generates high revenues. Thus, the capital can be acquired without so many difficulties.             The set up and initial operation is not a very difficult task since the company will guide the new franchise. In terms of labor costs, employees are paid at minimum although the turnover ratio is extremely high in this business. The projected sales are likely to be met since the food franchise will operate on long hours.   Appendix A Costs Name of Expense Amount per year Continuing royalty payments, marketing levy 50 (9% of monthly sales of 000. 3% for Royalty and 6% for the marketing levy) Business or operating licenses   Rentals                            0,000 Real estate and leasehold improvements   Discretionary equipment such as a computer system or business alarm system                            00 Training (provided by company) Legal fees                            0 Financial and accounting advice                             0 Insurance 0 Compliance with local ordinances, such as zoning, waste removal, and fire and other safety codes                             00 Employee salaries and benefits With an hourly rate of .28/hour x 5460 annual working hours  = ,968.80 (each employee) For 3 employees= 3906.4                  Total 9595.80   Appendix B Productivity Calculations The store will be open on Monday to Sundays. Working hours will start from 7am to 10pm.                 Appendix C Capital Requirements   List of Non current assets           Appendix D SWOT ANALYSIS Strengths <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="line-height: 200%">Relatively higher success rate than business starts up</li> </ul> <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="line-height: 200%">Name/Brand Recognition of Franchise </li> <li class="MsoNormal" style="line-height: 200%">Existing Customer Base </li> <li class="MsoNormal" style="line-height: 200%">Instant Sales </li> <li class="MsoNormal" style="line-height: 200%">Uniqueness of the Product Concept</li> </ul> Weaknesses <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="line-height: 200%">Lack of experience in the industry </li> <li class="MsoNormal" style="line-height: 200%">Higher prices compared to other pie franchise </li> </ul> Opportunities <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="line-height: 200%">Increasing demand for the products in the market</li> <li class="MsoNormal" style="line-height: 200%">Expansion through product innovation </li> </ul> Threats <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="line-height: 200%">Competition with well established franchise such as Jesters and Big Dads</li> <li class="MsoNormal" style="line-height: 200%">Health and Food safety Regulations </li> </ul>                     Credit:ivythesis.typepad.com

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