Assignment 06 - Project Report

CBA 440 – PRACTICUM IN BUSINESS & MIS

Project Final Report

Chabra Company

Presented By

Name: Loloah al-bader GUST ID: 9961

Name: Ghaneimah al-hashash GUST ID: 10259

Submitted in partial fulfilment of the requirements for

CBA 440 – Practicum in Business and MIS

Spring 2016

Table of ContentTable of Content..............................................................................................................1

Executive Summary.........................................................................................................3

Introduction......................................................................................................................4

Business Vision............................................................................................................4Business Mission.........................................................................................................4

Business Case.................................................................................................................5

Problem Statement......................................................................................................5Proposed Solution........................................................................................................5Customer Segment......................................................................................................6SWOT Analysis............................................................................................................6Competitive Analysis....................................................................................................7

Business Model...............................................................................................................8

Key Partners................................................................................................................8Key Activities................................................................................................................8Key Resources.............................................................................................................8Unique Selling Proposition...........................................................................................9Unique Advantage.....................................................................................................10Channels....................................................................................................................10Business Launch Plan...............................................................................................10Market Development..................................................................................................10Pricing Strategy..........................................................................................................11

Projections.....................................................................................................................12

Initial Phase – MVP....................................................................................................12Sales Estimates.........................................................................................................12Revenue Structure.....................................................................................................12Cost Structure............................................................................................................13Break Even................................................................................................................13

Project Scope Baseline.................................................................................................14

Project Objectives......................................................................................................14Project Deliverables...................................................................................................14Work Breakdown Structure........................................................................................15

Project Time Baseline....................................................................................................17

Project Cost Baseline....................................................................................................19

Quality Management.....................................................................................................21

Quality Metrics & Targets...........................................................................................21Quality Management Activities for Project.................................................................21

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Quality Management Activities for Operations...........................................................22

Human Resource Management.....................................................................................22

Human Resources Needed for Project......................................................................22Human Resources Needed for Operations................................................................23

Risk Management..........................................................................................................23

Progress to Date & Potential.........................................................................................24

Appendix A – Gantt Chart..............................................................................................25

Appendix B – Project Charter........................................................................................25

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Executive Summary

Our project is Chabra Company restaurant which provides unique cuisines with healthy recipes and whose vision is to bring customers and the society as whole to create a healthy lifestyle for them is currently encountering 3 basic problems represented by miscalculation of expenses, difficulty in getting location, and difficulty in recruitment. This report gives some proposed solutions to the above problems.

Moreover, it provides internal analysis of the project including SWOT analysis, competitive analysis and business model, unique selling proposition and unique selling point, and its differentiation from competitors. Apart from that, the report provides information about pricing strategy, projections, work breakdown structure, human resources management and quality management.

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Introduction

In Chabra Company restaurant, we offer different cuisines with a specific healthy recipe

for almost every region for example: we offer American, Italian and Kuwaiti cuisines.

Also, our restaurant contains a small garden with a variety of vegetables that included in

our recipe and our customer will pick their dishes ingredients. The word Chabra derived

from the place where all farmers gather to sell their fresh fruits and vegetables which is

also relevance to the farmer’s markets in the world wide. The name is related to our

restaurant, because we offer the same service to our customers, where we provide

freshly cut vegetables from our own garden in the restaurant.

Business Vision 1- Our vision is to bring customers and the society as whole to create a healthy

lifestyle for them, starting from their eating habits. Their bad eating habits will

enhance by the restaurant’s variety of dishes from different cuisines that satisfies

all tastes.

2- As we make some progress in achieving our goals of being a typical organic

restaurant, we will support people to change their mentalities toward healthy

food. Furthermore, the restaurant will service our customer’s needs of how to

start eating healthy by providing tasty dishes for them and make their stomachs

full, granting their desire of eating our healthy food rather than other healthy

food restaurants.

Business Mission

At Chabra Company, our mission is to allow people all the way through Kuwait to

become conscious of their full abilities. We believe that our mission is a promise to our

customers.

We deliver on that commitment to do our best to create food recipes that suit all tastes

of all ages and nationalities. Chabra Company is one of the typical restaurants where we

create the most mouth-watering and yummiest healthy, organic food.

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Business Case

Problem Statement1- Miscalculating our expenses:

Calculating the expenses must be accurate, because it measures the financial

strength of the restaurant besides helping us to plan in advance. In addition,

wrong calculations lead to all kind of financial problems beyond just

misinterpretation of earnings, including poor allocation of capital and deprived

fee manage.

2- Not finding a good place with a good rent:

In case we did not find good place with a good rent, we will not be successful as

other restaurants who have their own places where people can go to eat their

food, or otherwise we can take by the baby steps method; where we start the

business by catering and delivering, in order to raise our capital.

3- Finding a proper labor:

It is so difficult to find a well-trained labor in Kuwait, for the reason that the

percentage of our unsophisticated hand force number is much higher than the

percentage of skilled labor, despite the huge population of foreigners who seek

for a job, we require a waiters who communicate well with customers and other

waiters, quick thinkers to have the ability to think through problems or

unexpected situations and be familiar with how to appease a customer in cases

of missed up or delayed order, on the other hand we do not expect to have the

perfect staff from the beginning, but by time we will get the perfect one.

Proposed Solution1- Our steps will be as follow to support my assessment:

Gather financial statements such as our receipts, mortgage and account

statements to see where our money is going.

Record fixed expenses: Expenses such as rent and insurance and

employee’s salaries.

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Record flexible expenses: Expenses that vary each month must be

recorded also, such as the grocery bill and utilities.

2- In order to find good place with a good rent, going to a broker is the best way to

find one.

3- There are many ways to acquire the proper labor such as: asking the family and

friends to recommend any potential employees, beside advertisements and we

can achieve it by using the social media. We will set a clear goals and strategies

to allocate the proper labor by interviewing also.

Customer Segment1- Health conscious young people category: According to a report conducted by

the Nielsen Global Health and Wellness Survey, which surveyed more than

30,000 consumers in more than 60 countries, it revealed that health conscious

young people are more concerned to eat organic food than the previous

generations and they are willing to pay more to eat organic food.

2- Weight conscious people: For people who are on diets and count every calorie,

we designed for them a menu that contains delicious meals for a reasonable

calories count, by this we will be able to offer for hungry dieters a technique to

spoil their desires for delightful restaurant cuisine and sustained weight loss at

the same time, almost 60% of Kuwait’s population are on diets most of them are

females.

3- People on special diets: People who are on vegan diets, gluten-free diets, and

low-carb diets, frequently face difficulty eating in restaurants. In our restaurant

we tag choices for people with restricted diets, roughly 20% of Kuwait’s

population are vegan.

4- Families: Like some families who have 2 incomes, it will be much easier for

them to have their dinner out, because it takes less time if we compare it with

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http://usapple.org/PDF/OutlookPres/Outlook2014/2_Nielsen-Health-and-Wellness-Consumer-Whitepaper-Aug2014.pdf

preparing meals at home and it offer time to catch up with each other. Also, it is

a chance to raise a habit in their children on eating healthy food.

SWOT Analysis

Competitive AnalysisOur competitors might be other organic restaurants like:

1- Freshii

2- Eighty-Six

3- Healthy Feast

4- Organica Fish & Chips

In Kuwait there are plenty of restaurants and companies with the idea of healthy and organic kind of food, but what we have experienced is not tasty and welcoming. That’s why in our restaurant we provide an organic food and drinks in a welcoming environment that attracts costumers to reconsider changing their eating habits. Chabra company restaurant provides different cuisines with a specific healthy recipe for almost every region for example: we offer American, Italian and Kuwaiti cuisines. All our ingredients are freshly cut by our customers from our garden in the restaurant that

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contains a variety of vegetables. Our idea is so unique, because none of these restaurants offer different cuisines especially the Kuwaiti cuisine, it is so difficult to find a healthy mchbos (traditional Kuwaiti food). By offering these types of cuisines people will get

Business Model

Key Partners1- Food suppliers:

Alban Dairy Company: It will provide us with fresh daily dairy for our

shakes and juices.

Sadeer Farms: Sadeer is fully organic farms for all kinds of vegetables

and fruits.

Prime Cuts Butcher: Their cattle are raised the organic way, which

means naturally raised with no growth hormones, in a completely natural

environment that is not tainted with chemicals or pesticides and is Halal

certified. Their cattle are raised in fresh air and sunshine, they drink pure

water, and they graze only on natural pastures and are not given any s

drugs.

2- Delivery:

6alabat.com is responsible on delivering our food to our customers.

3- Financial institutions: Later on, taking a loan will help us in expanding our

business.

Key Activities1- Buy ingredients and cook them.

2- Provide small portions (testers) of food for people to test it and get their

feedbacks.

3- Marketing and branding the products

4- Deliver the food.

Key Resources1- Chef and cookers: without them we will not be able to cook our recipes.

2- Waiters: They will be responsible on serving the food to our customers.

3- Drivers for delivery service.

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4- Kitchen gadgets: It assist the cookers in making the food.

5- Ovens and hobs: In order to get our food done, we must cook them first.

6- Range hood: to remove smokes, smell and steam in the air.

7- Chairs and Tables for customers.

Unique Selling Proposition

In Chabra Company, we literally cook our meals with fresh organic ingredients, from

farms all the way to serving without the need to freeze them, given that fresh food

freezing process reduces the nutrients which we get from eating vegetables and fruits,

unlike other restaurants who freeze their products.

We pick up our dairy, vegetables, fruits, meat and poultry from the best local farms who

provide healthy environment for these products to grow. The dedication itself makes the

visit to our restaurant worth it. Furthermore, customers can pick up their vegetables

from our little garden and make their own customized salads. For our delivery services,

they are free if customers called the restaurant directly by phone, or otherwise through

6alabat.com; there will be extra charge by them which cost 200 Fils.

Offering a fine dining is one of what we specialized in, our menu consists of a variety of

good selected items, at least five or more different entrées cooked to order, and nearly

all the dishes are made from scratch or fresh ingredients where they will be served to

customers in a relaxing atmosphere to enjoy every bite!

Vegetarians and vegans are very welcome in our restaurant in comparison with other

organic restaurants, we provide varieties of diets for them such as:

1- Ovo-vegetarian diet: It includes eggs but not dairy products.

2- Lacto-vegetarian diet: It includes dairy products but not eggs.

3- Ovo-lacto vegetarian diet: Includes both eggs and dairy products.

4- Vegan diet: Excludes all animal products, including eggs, dairy, beeswax and

honey.

We give a promise to all our customers that Chabra Company will provide the

ultimate cooked organic food.

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Unique Advantage1- Creativity: While expanding in both creativity and quality, we will create many

concepts that are based on ongoing fads. Creativity can appear in the form of

restaurant design, new dishes and drinks, arrangements, management, and

variations on service.

2- Special personal touches: Having the manager or owners stop by a table to

assure quality, or sending a complementary dish for a birthday or anniversary

can leave a lasting impression, and help to make an emotional connection with

customers and instill loyalty.

Channels

Reaching our customers will be through advertising on newspapers and social media

pages like Instagram and Snapchat. Also, sponsoring sport events like: Gulf Bank

Marathon, Pro Vision Sport Management events and health campaigns.

Business Launch Plan

Chabra is a healthy restaurant that offers healthy meals.

Before opening the restaurant, we will offer samples of our meals for free in the market and malls, having some activities that attract people to try, free meals for a couple of days, attending some events to show what we have and explain to people the advantages of being healthy.

Market Development

We will start up with the social media and doing some advertising, we are also managing to participate in many exhibitions to show our restaurant, later on we may post our logo in the street and news paper.

Also, we may sign a contract with a marketing and development company that offers famous people to market our products. Beside these marketing methods, we will do some of these routines to our restaurants:

- Renew our menu after 6 months.

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- Offering new dishes.

- The customers can choose their own type of food and how would they like to be

cooked.

- Keep advertising each month in newspaper.

- Stay active in social media for any new advertising or any questions from the

costumers.

We will market for our business through our social media pages on Instagram, Snapchat and our official website

Instagram: https://www.instagram.com/chabra_company/

Snapchat: Chabra_Company

Website: http://cba440spring2016.wix.com/chabracompany

Pricing Strategy

Category Average price

Breakfast 3 to 5 KD

Lunch 6 to 12 KD

Dinner 6 to 12 KD

Snacks 2 KD

Breakfast includes:

Eggs Vegetables (freshly cut) Pancakes / French toast Natural juices Breads Cheese Fruits

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https://www.instagram.com/chabra_company/

Lunch includes:

Organic rice Steaks Fish and shrimps Organic Smoothies

Dinner includes:

Vegetables All types of grilled meat Seafood Soups

Projections

Initial Phase – MVP

First of all, we may start up with some samples of what we have as a free tester in malls for two weeks then ask the customers if they would like to join our restaurant to get their feedback.

Sales Estimates

Year1 Year2 Year3

Breakfast 36,000 45,000 47,000

Lunch 30,000 40,000 42,000

Dinner 32,000 31,000 37,000

Snacks 17,000 20,000 25,000

Total 115,000 136,000 151,000

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Revenue Structure

Year1 Year2 Year3

Breakfast 126,000 157,500 164,500

Lunch 300,000 400,000 420,000

Dinner 224,000 217,000 259,000

Snacks 34,000 40,000 50,000

total 684,000 814,500 893,500

Cost Structure

Year1 Year2 Year3

Rent 70,000 70,000 70,000

Salaries 42,000 49,000 51,000

Food supplies 45,000 56,000 64,000

Advertisement 35,000 45,000 51,000

Cars 50,000 56,000 67,000

Equipment 89,000 60,000 49,000

Total 331,000 336,000 352,000

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Break Even

Year1 Year2 Year3

Revenue 684,000 814,500 893,500

Cost 331,000 336,000 352,000

Profit/Loss 353,000 478,500 541,500

Our breakeven will be reached in the first year since our profit for first year exceed our project case baseline.

Project Scope Baseline

Project Objectives1. Exclusivity: The idea of the restaurant is unique, as it is one of its kind in Kuwait

where we offer different cuisines with a specific healthy recipe for almost every region including a garden with a variety of vegetables included in the recipe.

2. Social Responsibility: We believe in changing ourselves before changing others, so starting from us solving the problem of obesity and to change Kuwaitis mentalities toward healthy food is from our priorities in establishing this restaurant.

3. Reputation: Our objective is to focus on customer and business loyalties in order to gain a good reputation in the marketplace.

4. Earnings: Like any other business, one of our aims in the market is to gain profits.

Project Deliverables

Chabra Company Report:

Sections have to be complete. Confirm to the supplies specified in “Project Requirements”. Renting a place

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Website:

Introduce the company’s characteristics and how our business is running. Describe all our products and services briefly. Website must include pictures and experiments of our customers.

Social Media accounts:

Our accounts must reflect our restaurant’s atmosphere. The Snapchat account will show our daily dishes for our followers. Our Instagram account will gain more than 50 followers.

Work Breakdown Structure

Project Phases / Tasks Description

1. Complete Registration & Paperwork

1.1. Sign the agreements of the company

Project Manager

1.2. Own a commercial license Project Manager

1.3. Register at the chamber of commerce and industry

Project Manager

1.4. Sign the restaurant place lease arrangement

Finance Manager

1.5. Open bank account Finance Manager

2. Perform Market Study

2.1. Distribute surveys Marketing Manager

2.2. Wide-ranging interviews Marketing Manager

2.3. Collect the results Marketing Manager

2.4. Choose a business model Marketing Manager

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2.5. Select the applications Marketing Manager

2.6. Determine our financial situation Finance Manager

2.7. Confirm the offerings Marketing Manager

3. Complete Product/Service Offering Arrangements

3.1. Sign contracts with our providers Project Manager

3.2. Select the best location Project Manager

3.3. Choose Interior designing Project Manager

4. Prepare the Website

4.1. Prepare basic structure Staff

4.2. Add brief information Staff

4.3. List our products and services Staff

4.4. Choose the design Staff

4.5. Test the website Staff

5. Launch the Business

5.1. Post ad in newspapers Marketing Manager

5.2. Use social pages to advertise Marketing Manager

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5.3. Start soft opening Project Manager

5.4. Begin Official Opening Staff

Project Time Baseline

Project Phases / TasksDuration Estimate



4

1.2. Own a commercial license 4


4


4

1.5. Open bank account 4


2.1. Distribute surveys 8

2.2. Wide-ranging interviews 9

2.3. Collect the results 9

2.4. Choose a business model 21

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2.5. Select the applications 7

2.6. Determine our financial situation 6

2.7. Confirm the offerings 5


3.1. Sign contracts with our providers 21

3.2. Select the best location 41

3.3. Choose Interior designing 22


4.1. Prepare basic structure 12

4.2. Add brief information 12

4.3. List our products and services 18

4.4. Choose the design 10

4.5. Test the website 12


5.1. Post ad in newspapers 12

5.2. Use social pages to advertise 17

5.3. Start soft opening 9

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5.4. Begin Official Opening 10

- Gantt Chart is in the appendices - ( Appendix A )

Project Cost Baseline

Project Phases / TasksDuration Estimate



16833

1.2. Own a commercial license 4000


2000


1000

1.5. Open bank account 1000


2.1. Distribute surveys 3166

2.2. Wide-ranging interviews 3333

2.3. Collect the results 3000

2.4. Choose a business model 6000

2.5. Select the applications 2667

2.6. Determine our financial situation 5000

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2.7. Confirm the offerings 1000


3.1. Sign contracts with our providers 15000

3.2. Select the best location 8500

3.3. Choose Interior designing 30500


4.1. Prepare basic structure 1000

4.2. Add brief information 1000

4.3. List our products and services 500

4.4. Choose the design 500

4.5. Test the website 1000


5.1. Post ad in newspapers 933

5.2. Use social pages to advertise 4000

5.3. Start soft opening 2000

5.4. Begin Official Opening 3333

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Quality Management

Quality Metrics & Targets

Website:




Call center:

Tools and equipments.

Appropriate atmosphere.

Sufficient team.

Quality Management Activities for Project

Chabra Company Report:

Sections have to be complete. Confirm to the supplies specified in “Project Requirements”. Renting a place

Website:




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Perform for inspections & measurements:

1. Project Report: Project Manager.2. Website: IT Manager.3. Social Media: Marketing Manager.

Quality Management Activities for Operations

Call canter:

Get orders from customers. Get feedbacks.

Website:

Server is up and the website is usable. Taking feedbacks from customers to improve the website.

Social Media:

Interact with our customers and followers. Keep updating about what is new.

Perform for inspections & measurements:

1. Call center audit: service survey Company.2. Website: IT Manager.3. Social Media: Technology Company.

Human Resource Management

Human Resources Needed for Project

Project Manager Loloah Al Bader

Finance manager Ghaneimah Al Hashash

Marketing Manager Vacant Position

Chef Vacant Position

Waiters Vacant Position

Cookers Vacant Position

Cashier Vacant Position

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Human Resources Needed for Operations

Risk Management# Risk Response Type Response Action /

Owner1 Municipality law Negative Risk:

AcceptLoloah AlBader ,Project manager

2 Competition Negative Risk: Avoid

Loloah AlBader, Project manager

3 Economic crisis Negative Risk: Accept / Forecast the future.

Ghaneimah AlHashash, Finance manager

4 Loses ( Revenue < Expenses )

Negative Risk: Avoid

Ghaneimah AlHashash, Finance manager

5 Government Policies Positive Risk: Enhance

Loloah AlBader ,Project manager

6 Ministry of Health Policies Positive Risk: Accept

Loloah AlBader ,Project manager

7 Devices deficits Negative Risk: Ghaneimah AlHashash

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Team 1- Project Manager

Accounting 3,500 KD

Team 2- Marketing

Manager- Finance Mnagaer

Markeitng 2,500 KD

Financing 3,000 KD

Team 3 - Operations

Manager - HR

Chef 950 KD

Cookers 600 KD

Waiters 450 KD

Mitigate ,Finance manger8 Bankruptcy Negative Risk:

AvoidGhaneimah AlHashash ,Finance manger

9 Fire in the properties. Negative Risk: Avoid

Ghaneimah AlHashash ,Finance manger

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Unqualified staff Positive Risk: Exploit

Loloah AlBader, Project manager

Progress to Date & Potential

Provide a summary of what activities have you done from the beginning of the semester till now to work on your business idea:

We have prepared a list of vacant places to rent for our restaurant some of them in Kuwait City (Sharq) and others located in different malls like avenues and 360 malls. Also, we are working on getting a licence from the Chamber of commerce and industry to start announcing for our upcoming restaurant. Besides that, all of the restaurant’s main objectives and business plan are ready to launch the business.

Mention what you plan to do about your idea in the near future:

Hopefully we will continue working on finding the proper place to rent and complete the rest of the business official papers and licences to start with the real business plan by bringing the staff, assigning missions to owners and begin with the preparations to decorate and set the kitchen’s and diner’s tools and equipment to create a suitable place for employees and customers.

Also write a statement why your project should be in the top 15:

In Kuwait we are in need for such a business that helps people to get rid of their bad eating habits. People spend almost all of their time in weekends or weekdays going to restaurants, and if they were on a diet they will stop going to restaurants and cook their food at home which is unpleasant. It will be such a boring diet. Our idea brings up happiness for those who seeks for a restaurant where they can find a healthy, organic food for their diets and for those who are not on a diet they have the opportunity to choose amongst our different cuisines and order their favourite meal with our organic recipes. Chabra Company provides a variation of options for all people in a very welcoming atmosphere.

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AppendicesAppendix A – Gantt Chart

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Appendix B – Project Charter

Project Title

The project title is ‘’Chabra Company’’

Project Overview

The Idea is to provide an organic food and drinks in a welcoming environment that attracts costumers to reconsider changing their eating habit.

Opportunity

According to Kuwait society we have a high level of obesity and it is a routine to visit restaurant in weekends therefore, we decided to establish this business to solve the problem of obesity and to change Kuwaitis mentalities toward healthy food.

Social Responsibility

People will feel the different after trying our delicious dishes and drinks and this will hopefully change the perspective of eating junk food

Innovation

There are many restaurants and companies in Kuwait with the idea of healthy and organic kind of food but what we have experienced is not tasty and welcoming. That’s why in our restaurant we have many cuisines with a specific healthy recipe for almost every region for example: we offer American, Italian and Kuwaiti cuisines. Also our restaurant will contain a small garden with a variety of vegetables that included in our recipe and our customer will pick their dish ingredients.

Sustainability

At the first stage of our business we will have a great financial support from my father and after our breakeven we will repay our debt.

Student Driven

We will do many surveys to complete our business plan and visit the ministry of commerce to know what the requirements are.

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Relevance to Kuwait

After our business grows it will have a great impact on Kuwait economy because we will expand until we have our own farm to produce our own ingredients and that will have a great effect on Kuwait’s economy afterward

Key Project Deliverables

Our deliverables meet all the luxurious obligation as stated by the owner and deliver complete restaurant and provide all the infrastructure for the restaurant to construct and then later on to operate it on 15th of September 2016 within the budget of 30,000 KD.

Our first deliverable is to get applicable licenses and approvals.

Secondly, we will hire an interior design firm to design and produce custom chairs for the dining area.

Thirdly, applying an online food ordering system.

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High Level Milestones

High Level Cost Estimates

It will cost about 30,000.

Major Stakeholders

Loloah al-bader

Ghaneimah al-hashash

Ahmad al-bader

High Level Risks1. Miscalculating our expenses

2. Not finding a good place with a good rent.

3. Finding a proper labor.

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Grand opening on 15-9-2016

Staff training from 11 july to 11 august 2016

Choosing a qualified staff completed 11-7-2016

Staff interview 10-6-2016 to 10-7-2016

Find a proper place 5-6-2016

Ministry paperworks 12-4-2016

Project Team

Full Name GUST ID

Loloah al-bader 9961

Ghaneimah al-hashash 10259

Charter Approval Approved

Not Approved

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Documents

Assignment 06 - Project Report