MAGIC MENU

7/29/2019 MAGIC MENU

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United Arab Emirates University

College of Business & Economics

Computer Application in Business

MAGIC MENU.

Group members ID Number

Fatma Ali Saleh Saeed 200800541

Mashael Mohamed Omar 200806112

Huwaida Ahmed Saeed 200812674

Noura AlKaabi 200715630

Amal Abdul Khalek 200834824

Instructor:

Saif Al Shaali

Section :51

Fall 2012


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1Overview of the

company


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Introduction :

our project is to create a nice program with technical methods( touch screen ) . the idea will

serve restaurants and the relationship with their customer . It is about electronic menu in the

restaurant table that have everything included in it like available meals , price . Our product

name is (MAGIC MENU ).The MAGIC MENU product has designed for many reasons. First, it can

save time of order. Second E-Menu can eliminate the waiter, so no need for waiters in the

restaurant. Third, it's also helpful for the saving money that needed for waiters' salaries. Our

product can save a lot of money, effort and it is easy to use. Moreover, we expect that MAGIC

MENU will get a success in the market because it is new and creative product; also it is needed

in our fast lifestyle.

We recommend that to try our product to enjoy with the applications and features anytime you

order.Mission :

MAGIC MENU mission is to apply the technology in the regular menu to make it up to date

attractive product.

General company description:

Our company selling and maintaining an electronic menu with touch screen; we will program it

and sell it to the restaurants; also we will sell unique accessories for our e-menu.

Products and services :

MAGIC MENU will contain all meals that are available in the restaurant; with the prices and

calories of every meal. Moreover, the customers can choose which flavor, sauce, size and drink

they want.

MAGIC MENU will have an attractive designs and colors; so it will take the style of the restaurant

and design appropriate templates. Also, the screen will contain games; so customers can play in

waiting time of their orders. Another thing is that customers can see the kitchen and how their

meals are cooked.

Also customers can order without the need for a waiter to be with him. The company will

maintain the products and redesign its applications for every restaurant as they want.


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Management and organization:

For this year, the total number of the workers is 24 employees. The management team plans to

increase the number of employees in the organization to 50 workers in the second year and to

60 workers by the third year. In this year , 5 are sales staff reporting to a sales manager who

reports to the owner , with 6 technicians and 3 engineers , 1 advisor and 2 consultants .

The major members of the management team are Huwaida, Fatema, Mashael, Amal and noura.

They are also the board of directors of the company and the managers of the financial ,

marketing , HR , accounting and supply chain departments .This team will hold the decision

making process, schedule the product manufacturing, Reviews daily reports, and Monitors

performances


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2Financial Plan


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How business is financed?

We decided to take a loan from Khalifah Funds. The amount of the loan is ADE 1,000,000. We see that

the advantages of the loan is valuable more than disadvantages and the reasons that led us to borrow

money are no sharing in ownership, more borrowing allows for potentially greater return on equity

and the opportunity cost is justified when the cost of borrowing is low during periods of low interest

rates. We think that our business is small and we need small factory with modern machines and 24

workers so, we do not need a huge amount of many to finance our business.

Price :

The price for MAGIC MENU is AED3500 in the first year. We choose this range of the price according

to the features and high production process. Our product is unique and we have the power to put the

price as we want not based on the market because no one like us that means we have a competitive

advantage. Also , the price of MAGIC MENU are related to the maintaining services and accessoriesthat the customer want it to be with our product .

F-Statement function :

We use f-statement function to evaluate our revenues and expense and see if them in a good

position or not .

1 2 3 4 5 6

salary 30000 30000 30000 30000 30000 30000

other inco 5000 2000 2000

telephon 1200 1000 1250 950 1000 1200

electricity 1000 1500 1100 1000 950 1000

rent 3500 3500 3500 3500 3500 3500

maintanc 1200 2230 3100 3000 2810 3200

loan 3000 3000 3000 3000 3000 3000

other exp 4000 4000 4000 4000 4000 4000

We make F-Statement function on our balance after paying all our expenses as the following

:

=IF(B14>20000,"good","bad") if the balance is less than 20000 we will be in agood position and else we should make some improvement because we will be in

bad position


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Financial balance sheet :

A balance sheet is a statement of a firms assets, liabilities and net worth. The key to

understanding a balance sheet is the simple formula:

Assets = Liabilities + Equity

All balance sheets follow the same format: If it is in two columns, assets are on the left, liabilities

are on the right, and net worth is beneath liabilities.

Here is our balance sheet :

Beginning Projected

26-Nov-12 25-Nov-13

Assets

Current Assets

Cash in bank $ 1,000,000 $ 1,500,000

Accounts

receivable 60,000 50,000

Inventory 250,000 150,000

Prepaid expenses 54,000 -

Other current

assets 209,000 -

Total Current

Assets $ 1,573,000 $ 1,700,000

We will begin our analysis by assets which divided into Current assets and fixed assets, we will

begin by current assets.

Current assets means include cash, stocks and bonds, accounts receivable, inventory, prepaid

expenses and anything else that can be converted into cash within one year or during the

normal course of business.

As we see between the two years the current assets increase thats means that the company is

in good position comparing between two years .We found that the performance of our company

increase and now it is in good position because it increase from 1573000 to 1700000.

Fixed assets are also known as long-term assets. Fixed assets are the assets that produce

revenues.

Fixed assets in this company are Machinery & equipment Furniture & fixtures Leasehold

improvements Land & buildings other fixed assets.


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As we see from the fixed assets is increasing means the company uses its fixed assets more to

generate revenue and comparing between two years we see it increase from 371920 to 426000.

Secondly. we will talk about liabilities section . we divide into current liabilities and long term

liabilities.

Current liabilities are accounts payable, notes payable to banks (or others), accrued expenses

(such as wages and salaries), taxes payable, the current due within one year portion of long-

term debt and any other obligations to creditors due within one year from the date of the

balance sheet. The current liabilities of most small businesses include accounts payable, notes

payable to banks and accrued payroll taxes.

As we see in the total current liabilities it decrease that the mean debt decrease from 669370 to

410500 and we focus in decreasing our liabilities as much as we can .

Long-term liabilities are any debts that must be repaid by your business more than one year

from the date of the balance sheet. This may include startup financing from relatives, banks,finance companies or others. By comparing between the two years we see that the companys

long term loan is decreasing.

Finally,we will talk about the owners equity .Net worth is what is left over after liabilities have

been subtracted from the assets of the business.

In a sole proprietorship, it is also known as owners equity. This equity is the investment by the

owner plus any profits or minus any losses that have accumulated in the business.


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3Marketing..


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Competitors :

No competitors, because this idea is not available in Arabian gulf countries, its new idea to

use this technical in Arabian gulf .

Market strategy :

From our new business we will create new technique that we will serve high income

restaurant . We will apply the E-menu that will eliminate the waiter. This high level of

service will create professional design because we want response from customer to come a

lot to cover our cost ,gain profit, loyalty, and tell others about our business to have more

and more customer.

Market positioning :

We use the differentiation that we offer unique services, More benefits with more price andWe can offer services for People with special needs.

Sales forecast :

Forecasting can be broadly considered as a method or a technique for estimating many future

aspects of a business or other operation. There are numerous techniques that can be used to

accomplish the goal of forecasting. One of these methods is moving average . we use moving

average to predict the our sales for the coming year .

The sales data are presented in the table below :

t observed A(t) forecast error deviation percent

1 4000

2 4000

3 5200

4 3000 4050

5 5000 4300 4050 950 950 19%

6 3500 4175 4300 -800 800 23%

7 2500 3500 4175 -1675 1675 67%

8 3800 3700 3500 300 300 8%

9 6300 4025 3700 2600 2600 41%


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454035302520151051

70000

60000

50000

40000

30000

20000

10000

0

Index

obser

ved

Time Series Plot of observed

As we see from this graph that the sales fluctuated because in the first year not many people

know about our product and how it will be an effective for them .

454035302520151051

50000

40000

30000

20000

10000

0

Index

A(t)

Time Series Plot of A(t)

But when we put our prediction for the next year , we found these results that are presented

in the graph above .

For the forecast data , as we see in the graph above that our sales will increase from 5200

AED in week 3 to 46200 AED in the last quarter of the year specially in week 48 because we

will make advertisement plan to show people our product . after that year we expect that

we will gain a lot of profit from our product (MAGIC MENU )..


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4Operational plan..


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Stage of Development :

To date, market research has been completed and a lease has been secured .Equipment lease

rates have been pre-negotiated and order commitments have been received from over two

dozen businesses in the area. Marketing materials are in draft form as well.

The next steps are as follows:

Sign office lease within 30 days Complete leasehold improvements Sign equipment lease agreement and accept delivery of equipment Product training from equipment company Set-up equipment and test Finalize and print marketing materials Open for business Launch advertising and promotional plan.

Suppliers :

Equipment : It will be cheaper to lease directly from the manufacturer than to go through an

independent leasing company.

Quality Control :

Initially, as a sole proprietor, we will personally oversee all product output to ensure quality

control. We will also train my support staff on what to look for and how to correct potential

problems.

Production Process:

1. Land and Equipment RequirementsI have leased a 1,000 square foot factory space on Main Street as well as a internet system

$1,800 per month. I will purchase Equipment Requirements , and store finishing for $ 371,920 .

Leasehold improvements will cost 56,000

2. Inventory ControlThe computer system will keep track of industry activity. We will follow that up with regular

manual checks. This is realistic considering our location is only 1,000 square feet.

3. Time Frame for ProductionAll orders can be ready within 20 days. Larger orders will be queued and run after 30 days.

Each job will be estimated individually.


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Blog (website for the company):

We areate a website for our company to help us in advertisement for our idea . this website

contain a lot of details of how our business will be .

This is the site of our company :

http://magic-menu.blogspot.com/

Conclusion :

In conclusion , by the improvement that we face every day we must always create new things

that will make our life easier . That was the idea of our project (MAGIC MENU ) . it will serve a

lot of people specially people who care about the time , and also it will help us in reducing the

number of employees that we will need . if our company succeeds to achieve our objectives in

the first two year we will expand our business to build a strong brand name .that all about our

project and we hope that we reached to best work in this report.
http://magic-menu.blogspot.com/http://magic-menu.blogspot.com/http://magic-menu.blogspot.com/


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References :

http://smallbusiness.findlaw.com/business-finances/reading-a-balance-sheet.html http://www.enotes.com/forecasting-reference/forecasting http://www.rbcroyalbank.com/sme/bigidea/michaels.html
http://smallbusiness.findlaw.com/business-finances/reading-a-balance-sheet.htmlhttp://www.enotes.com/forecasting-reference/forecastinghttp://www.rbcroyalbank.com/sme/bigidea/michaels.htmlhttp://www.rbcroyalbank.com/sme/bigidea/michaels.htmlhttp://www.enotes.com/forecasting-reference/forecastinghttp://smallbusiness.findlaw.com/business-finances/reading-a-balance-sheet.html

Documents

MAGIC MENU