Small Business

Management
Present By :- KAMAL KAPOOR
A7383
What is Small
Business ?

A Small Business is a Business only when it is not a part of large business.
That should not have specialist managerial staff.
It can be owned and manage by an individual or individual partnership.
It should not have more than 50 people and not less than 10 people in
the manufacturing segment. while, in the service segment people should
not less than 25 In the manufacturing and goods production.


Why Small Business ?
Small Business surge up the economy of the nation.
Supported by the Govt. to improve the GDP.
Circulate the money inside the nation.
Provide employment and increase the standard of
living.
Support education and studies.
It enhances the entrepreneurial skills.
Depending upon small income.
It can generate freedom.


My Small Business
**Starbucks**
Introduction:
Name: - Starbucks
Location: - 220, Queen Street, Auckland.
Business Formation: - Starbucks is comes under existing small business
company.
Founder : - SB is incorporated in the city of Auckland. It is equally owned
and managed by its two partners. Mr. Ankit kakkar had an extensive
experience in sales, marketing and management, and was branch
manager at Vodafone co. and Mr. x had an experience in the field of
marketing, accounting.
About Starbucks :- The chain of this Coffeehouse is establish in 1971 and
now they have 15,000 stores throughout the world.






Mission:
Mission is to provide our customers with the best possible service.
To attain 20% profit annually.
We also want to make our contribution to the welfare of the local
community by supporting charitable and civic activities.
We will support the farmers who grow our coffee by using Fair Trade,
Sustainable Production and Organic products whenever possible.

Vision:
As stated on the website, the company's vision is
to 'establish Starbucks as the most recognized and
respected brand in the world.'
Objectives:

Starbucks will become the number one destination for coffee in Auckland.

Sales of $600,000+ the first fiscal year, $750,000+ the second fiscal year
and $1 million the third fiscal year.

Achieve a 15% net profit margin within the first year and 30% by FY3.

Achieve a total net profit of $150,000+ in FY1 and $200,000+ by FY3.

Create a solid concept in the industry and track performance in order to begin
expanding to other markets within six months.

To create new stuffs time by time just to attract the consumer.




Advantages:
Ongoing, aggressive marketing and name.
Location
Large customer support and base.
Highly trained and friendly staff.
Various types of coffee and food stuffs are available
under one roof.
Wi-Fi internet access in its stores.



Disadvantages:
The previous bad image create lot of obstacles for the
business to run smoothly.
More competitors in the market. For instance, subway,
The coffee club, McCafe by barista and on.



Legal Requirements:
Consumer Guarantee Act

The Consumer Guarantees Act sets out
guarantees that goods and services must meet
when sold by someone in trade.

The Consumer Guarantees Act applies to all
goods and services normally bought for
personal or household use.

Food safety and Standard act, 2006: -

A number of people visit restaurants for dine in so the standard of the
restaurant should be upgraded and the food safety, food quality,
presentation of the food should be hygienic so that people can feel
satisfied. This is the main purpose of food safety and standard act
2006. However restaurants have to maintain the food and safety for the
satisfaction of their customers. As far as Trendy is concerned so it has
got Grade A from food and safety that helps them to show that they
are following and keeping food and safety rules.
However, Under the Food Act, you also need to comply with additional
requirements if you manufacture bread and bread products:
i) You must use iodized salt
ii) You may voluntarily add folic acid.
Fair Trading Act:

The Fair trading act designed to stop misleading,
false representation and unfair practices in trade.
It also sets out when information about certain
products must be disclosed to consumers, and helps
ensure products are safe.
The Act covers government agencies and state-
owned enterprises.
Minimum wage rate: -

As far as the NZ govt. concerned about the payment rules the
basic pay rate for the employees is $15.00 per hour. But there
are few restaurants that do not pay the minimum wage rate
that is decided by the govt. this is illegal. However restaurant
owners should follow these rules.
The Market:
The retail coffee industry in the New Zealand has recently experienced
rapid growth. The cool marine climate in all over the region stimulates
consumption of hot beverages throughout the year.
Starbucks want to establish a large regular customer base, and will
therefore concentrate its business and marketing on local residents, which
will be the dominant target market. This will establish a healthy, consistent
revenue base to ensure stability of the business. In addition to this, tourist
traffic is expected to comprise approximately 35% of the revenues. High
visibility and competitive products and service are critical to capture this
segment of the market.

Major competitors:
To remain alive in the market we have to follow 4 P principals.
1. Price
2. Product
3. Place
4. promotion
Problems:
Brand awareness.
Dont have weekly offers as we compare with
others.
Slow service.
Less Equipment's

Suggestions:



Promotion and Advertisement: Company should focus on
promotion and advertisement of the Caf with the help of
print media, FM and so on.
Offers: Introduce weekly offers and discounts for regular
customers.
Recruitment: company would hiring 2 full time and 2 part
time workers to eradicate this slow service problem.
Survey: Company will focus on conducting a survey in the
city to get to know about consumer taste, their demands
and off Corse, our merits and demerits.

Finance:
Cost of acquiring $210,000.
$100,000 loan financed by ASB Bank.
Rate of interest 5% fixed per annum.
Profit for this time period is expected to be approximately $13,000 in
year 1, $36,000 by year 2, and $46,000 by year 3.




Operating Management:
Coffee roasting is provided by Grizzly Mountain Coffee Company, Pleasantville.

Tea is primarily supplied by Harney & Sons Tea, Connecticut.

Our water vendor is Crystal Geyser, St. Helena, CA

Juices are provided by Longhorn Orchards, Corpus Cristi, TX
(fresh orange juice and lemonade) and Genesis Juice, Eugene.

Pastries are provided by local Pleasantville companies such as
D'Angelo's Bakery, Pleasantville Biscotti and Pleasantville Cheesecake.

Chocolates and cocoa are from Ghirardelli Chocolate Company, San Francisco,
Bellagio, Los Angeles and Black Forest Chocolates, Arnold, CA

Gift items are from various vendors

Soft drinks are provided by Sprecher's Brewery, Milwaukee,
WI, and Thomas Kemper Soda, Seattle, WA.
Human Resource Management:
Key factor in determining the success of business.
Major the focus of all the activities is on the operations and
the employees.
Employees are actual representatives of the business.
1 manager present at a time in the caf.
2 full time employees and 4 part time employees
Contemplating all the
things:
Starbucks changes the behaviors and view points of global
consumers of coffee, and this successful example has caught global
attention.
Nowadays, it is not only one of the fastest growing corporation, but
also an outstanding business model with low employee turnover rate
and high profit performance shows that motivation is the key factor
of a company policy, opposite to the principles of classical
management which is only concerned about production and ignores
workers ideas.
A good relationship between managers and employees could
maintain a high quality of performance

THANK YOU