TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL BUSINESS ----🙘🙘🙘---- FINAL REPORT Subject: Project Management Topic: ESTABLISHING A COFFEE SHOP PM COFFEE PROJECT LECTURE: Mr. Nguyen Chinh Quang CLASS: 701, Friday 2st shift Ho Chi Minh City, Dec 2022 GROUP MEMBERS AND EVALUATION Student Evalua Name Duty ID te ● Chapter 2 (2.2) Le Hoang 720I013 ● Chapter 3 1 100% Minh Chau 5 ● Chapter 4 (4.3, Tran Thi Minh 720K059 4.3) 2 95% Tam 2 ● Conclusion and recommendation ● Chapter 2 (2.2) 3 Do Ngoc Anh 100% 4 ● Create PowerPoint ● Synthesize report ● Preface ● Chapter 4 (4.3) 100% Khanh 7 ● Conclusion and recommendation 5 Dinh Nguyen 720i049 ● Chapter 1 100% Gia Dinh 0 ● Chapter 5 (5.3) 1 ● Create PowerPoint TABLE OF CONTENTS GROUP MEMBERS AND EVALUATION.1 TABLE OF CONTENTS.2 TABLE OF FIGURES.5 TABLE OF TABLES. 5 CHAPTER 1: CASH FLOW ANALYSIS EXERCISE.7 CHAPTER 2: OVERALL OF THE PROJECT. Overview of the project.
The related parties. Timeline of the project. Size of the project.17 CHAPTER 3: DRAFTING THE PROJECT.1 Outline of the main phases of the project.2 General approach and methods.19 CHAPTER 4: PROJECT ANALYSIS AND EVALUATION. SWOT evaluation and competitiveness of the coffee shop.4 Analyze and evaluate the financial feasibility of the project.3 Project risk analysis.1 Investment-related cash flow.2 Risks of reinvestment and debt settlement.3 Market purchasing power risk.35 CHAPTER 5: ORGANIZING, PLANNING, AND IMPLEMENTING PROJECT.1 Organization of the project.1 Project organization structure diagram.2 General responsibilities of department/position in the organizational chart.
Work Breakdown Structure (WBS) and Responsibility Matrix. The analysis of Gantt chart. Techniques and tools to measure performance. Organize removal procedures and documentation.53 CONCLUSION AND RECOMMENDATION.57 4 TABLE OF FIGURES Figure 1: Model of the PM COFFEE space.13 Figure 2: Management team's structure.36 Figure 3: Business team's structure.36 Figure 4: Work Breakdown Structure.39 Figure 5: The Gantt chart of PM Coffee project.45 Figure 6: Customer relationship management.49 TABLES Table 1: Cash Flow 2.7 Table 2: Calculate NPVs.8 Table 3: Calculate Payback period.9 Table 4: Calculate Profitability Index.10 Table 5: Type of products.11 Table 6: Total capital of the project.15 Table 7: Brief After prediction of initial investment costs.16 Table 8: Detailed price list of products.24 Table 9: The number of employees and salaries.30 Table 10: The fixed cost.31 Table 11: The adjusted cost.32 Table 12: The NPV of the project.33 Table 13: Responsibility Matrix.42 Table 14: Job description and analysis table.44 Table 15: Detailed budgeting table.48 5 PREFACE In the first place, in order to carry out and successfully complete the subject of Project Management and the final report "PM COFFEE", our team has received a lot of help and facilitated advantage from Ton Duc Thang University.
In particular, we would like to express our sincere thanks to Mr. Nguyen Chinh Quang – our lecturer, who directly guided and accompanied our team throughout the process of completing this course and this report. As well as all of us know, coffee is a familiar and almost indispensable drink in today's world, associated with the Vietnamese people's long-standing culture and tradition. In this industry, the amount of customer demand and the potential market is large, so many startups always want to step in.
Currently, students and office workers need a space to study, work and stay open 24 hours. To solve this problem, PM COFFEE was born with a commitment to being a cafe that never closes for busy people. Besides, PM COFFEE offers a spacious, and lovely space suitable for studying and teamwork. We are so fortunate when studying the subject Project Management so that we can contribute efforts to implement this project for the social community.
Our project “PM COFFEE” is made based on the efforts of the team members as well as the references, lessons learned from books, research works, and information from news sites. In the process of implementation, although we have tried our best, because of limited knowledge and lack of practical experience, it is difficult to avoid shortcomings. Therefore, we are looking forward to receiving your attention and comments to improve this report. Finally, we wish you all good health and good work.
We sincerely thank you! Sign Team PM Coffee 6 CHAPTER 1: CASH FLOW ANALYSIS EXERCISE Based on the Cash Flow that the proposal gives, our team decides to choose cash flow 2 to do this task. Therefore, we apply the profitability models to evaluate investment opportunities: Table 1: Cash Flow 2 1. Net Present Value (NPV): Because we have a required rate of return of 10% with an inflation of 5% so we calculate. 7 Project Initial cash investment NPV A -400 100.23 Table 2: Calculate NPVs After calculating the NPVs, my group found that project D is the best opportunity.
Payback Period (PP) - It is the number of years required to repay the initial investment. - Fomulas: Payback Period = Initial Investment / Cash Inflow per Period Y Project A Project B Project C Project D e a Cumulati Cumulati Cumulati Annu Cumulati Annual Annual Annual r ve ve ve al ve 0 (400) (400) (300) (300) (300) (300) 0 0 1 50 (350) (200) (500) 150 (150) (300) (300) 2 300 (50) 400 (100) 150 0 250 (50) 3 350 300 400 300 150 150 300 250 8 Table 3: Calculate Payback period Payback: Project A 2 = 2 + 50/300 = 2.25 years Project C 1 = 1 + 150/150 = 2 years Project D 2 = 2 + 50/250 = 2.2 years → Project C is the best opportunity. Profitability Index of those opportunities: - Fomulas: Profitability Index (PI) = 1 + NPV/I0 - Note When PI > 1.0, NPV > 0: the project is worthwhile. When PI = 1: investable.
When PI < 1: the project is inefficient. Project Initial cash investment PI A (400) 1.48 Table 4: Calculate Profitability Index In summary, our team found that Project D fits all the criteria set by our team through the process of calculating NPVs, Payback period and Profitability Index. 10 CHAPTER 2: OVERALL OF THE PROJECT 2. Overview of the project - Name of the project: PM COFFEE - Type of the project: Business plan providing beverage service - Type of the products: Coffee Fruit tea Milk tea Dessert Black coffee Peach green tea Black sugar pearl milk tea Mochi cake Milk coffee Strawberry tea Matcha milk tea Tiramisu cake Capuchino Hibiscus tea Grass jelly roasted milk tea Macaron cake Cacao coffee Watermelon tea Roasted oolong milk tea Donut cake Table 5: Type of products 2.
The related parties - Project owner: Project team, including 05 members of the Project Management Class at Ton Duc Thang University - Target customers: Students of Ton Duc Thang University and surrounding areas in District 7, who want a quiet space to study and research exercises. Besides, there are people who want to meet or talk with their friends. - State management agency: + Business Registration Office - Ho Chi Minh City Department of Planning and Investment (registering for a business license) + Food Safety and Hygiene Sub-department of Ho Chi Minh City (certificate of food safety) + The suppliers: Trung Nguyen Legend Coffee, Chinh Son Tea Company Limited, ABC Bakery. Long - real estate agent at S.
Home Company 11 Table 7: Brief After prediction of initial investment costs d) Employment As PM coffee will open 24 hours a day so we will have 3 shifts per day (6am- 2pm, 2pm-8pm, 10pm-6am) so we assume that we will need 1 manager, 1 security guard and 2 service staff for each shift, the coffee shop also demands to have 1 accountant for the shop. Theresore, in total, there will be 13 hired employees: 3 managers 6 service staff 3 security guard 1 accountant 2.1 Project objectives - Customer target: Having an average of 100 customers in the shop and 100 online orders a day, of which 40% of customers will come back the next time after experiencing the service of the shop. - Marketing target: Advertising the shop's image to customers by taking advanataage of the social media and promotional campaigns. - Environmental target: Building a comfortable environment to socialize and relax, at the same time ensuring an ideal space to study and work for the customers.
- Products target: Trying to research and create new drinks and develop seasonal products, along with guaranteeing the quality of each drink and dessert in the shop to be able to satisfy the needs of customers. - Suppliers target: Creating a professional reputation to the suppliers and partners for the long-time cooperations. - Service target: Making sure each staff must have a friendly and enthusiastic attitude to welcome and be ready to serve customers. Moreover, PM COFFEE will make drink 16 deliveries through applications such as Grab, ShopeeFood, Baemin,.for remote customers.2 Management objectives - Project implementation time: from 1-Oct-2022 to 1-April-2027 - Project implementation phases: Conception phase: from 1-Oct-2022 to 30-Oct-2022 Definition phase: from 31-Oct-2022 to 6-Dec-2022 Execution phase: from 7-Dec-2022 to 1-April-2023 Operation phase: from 2-April-2023 to 1-April-2027 - Project progress: The members of the PM Coffee project must complete the project at the perfect level on schedule and set up an appropriate time budget for each stage and each task.
- Revenue: Gaining the set expected revenue; continue to maintain and expand the market. - Cost: Controlling and optimizing costs to bring quality products at reasonable prices and provide clear specific solutions for financial risks. - Human resources: Ensure staffs are well trained, avoid making mistakes; and take the most advantage out of the human resources. 17 CHAPTER 3: DRAFTING THE PROJECT 3.1 Outline of the main phases of the project To complete the PM Coffee project as best as possible, our team drafted this project and divided it into 3 main implementation phases: a) Conception phase: from 1-Oct-2022 to 30-Oct-2022 Planning the concept and scale of the shop Analyzing the market, competitors, and the customer's demand Analyze project using SWOT method Analyzing the financial viability of the capital b) Definition phase: from 31-Oct-2022 to 6-Dec-2022 Choosing the location of the cafe's premises Making Financial planning: + Capital structure and the need for initial investment capital + Working capital needs + Employee salary expenses by month/quarter/year + Forecast of expected revenue and operating expenses in 1 year, 2 years, 3 years, etc.
Making plans to manage and operate the cafe Making marketing plan for coffee shop c) Execution phase: from 7-Dec-2022 to 1-April-2023 Selecting suppliers Buying the shop design and recipes Signing all kinds of contracts with suppliers Building menu, and serving process 18 Collecting raw materials Constructing the facilities and buying furniture and other necessary items Asking for a business license and food safety certificate Making employee management plan Hiring and training the staffs Officially put into operation in the actual market d) Operation phase: from 2-April-2023 to 1-April-2027 Evaluating the shop's activities Enhancing services and products 3. General approach and methods PM coffee is a passionate project of our team and throughout this project, we have used a lot of methods to be able to build the project and manage it. From the first steps, to be able to come up with ideas and build this project, we had to research and collect information through reports, websites, magazines as well as refer to the opinions of experts. Next, to better understand the market, competitors, and customer needs, we conducted a survey based on the Google Form platform and invited people to participate in through social networking sites such as Facebook.
Then, from the information and the survey responses, we proceed to evaluate our project through the SWOT model to know the feasibility and risks so that we can make project management plan.