FEASIBILITY REPORT

Table of ContentsTABLE OF FIGURES2INTRODUCTION3SMART OBJECTIVES3Specific Objectives3Measurable4Achievable4Relevant & Time Bound4CHARACTER TRAITS OF THE PRODUCT/SERVICE4MARKET RESEARCH5SURVEY QUESTIONNAIRE6GRAPHICAL ANALYSIS9OPERATIONS PLAN17Organization Chart18PRICING AND PROMOTIONS18FINANCIAL PROJECTIONS/INCOME STATEMENT19Master Budget20FINAL CHOICE30REFERENCES31

TABLE OF FIGURESFigure 1:Organization Hierarchy18

INTRODUCTIONEducation and learning goes to the next level when learning mechanisms provide skills to individuals that are usually not directly present in text books, or taught at school. The culinary industry in the UAE is a flourishing industry because of multilingual and multicultural influences in the country that bring together multiple cultures and cuisines to the area from around the world. With an increased incidence of globalization and enhanced economic activity, more and more restaurants open every day in the UAE because of an increase in per capita incomes and expansion of existing cities into bigger economic hubs. It is under these circumstances that we wish to open a service-oriented business that offers cooking classes for beginners and professionals so that they can also be a part of this industry in some way. We call it The Culinary Kit. SMART OBJECTIVESAn objective can be explained as the description of the goals that an organization wants to achieve. So these objectives should be Specific, Measureable, Achievable, Relevant and Time Based.Specific Objectives

To provide a range cooking lessons to individuals possessing different levels of cooking skills in the Abu Dhabi region, and introduce restaurant-style cooking skills to them so that they can use these skills to pursue cooking as a profession. To enroll twice as many students in the second year of running as compared to the first, thereby achieving a 100% increase in revenue from year 1 to year 2.MeasurableWe are very vigilant about the changing situations around us, and even then we remain very confident that we will be able to measure our objectives in a short span of time. The true indicator of our success will be the expansion of our businesss premises, and the introduction of new lines of cuisine for individuals, after a time span of 5 years. AchievableThe objectives of the organization are specific and measureable with the help of the efficient staff of chefs they are also achievable. This can also be assessed after the given time span of 5 years that whether the desired objectives achieved by the organization or not.Relevant & Time BoundThe goal of the organization is relevant and also time bound. The timely completion of these goals will give a cutting edge over the competitors and also help to work effectively in providing services to the students.CHARACTER TRAITS OF THE PRODUCT/SERVICE

The service that we aim to provide is different from regular cooking schools and cooking workshops. To start off, we aim to introduce cooking lessons in the Arabic cuisine only. This will help us focus all our efforts entirely on developing lessons and finding newer students who want to learn the art of making Arabic cuisines. Secondly, we aim to affiliate our cooking lessons with a leading local restaurant in the area, from where professional chefs will dedicate part of their time to teach the art of cooking to our students. We have shortlisted three restaurants primarily, namely Zaatar W. Zeist, Just Falafel and Marrakesh, with whom we will negotiate terms of affiliation and come to an agreement. The cooking lessons will be conducted in a rented space a hall or a big room of some kind, with established workstations that can accommodate a total of 15 20 people simultaneously during each session. The interior will be inspired from popular TV series, Master Chef, with a clean outlook, essential equipment and a small pantry/store at one corner of the room. Lessons will include theoretical and practical lesions both, with a heavier weightage to the latter, obviously. At the end of the quarter, practical exams will be conducted to evaluate the performance of the enrolled students. MARKET RESEARCH

The UAE is a hub for nationals of different countries, and is thus the perfect place to start a business like ours. The food and restaurant industry in the UAE is dominant, with about 3000 food establishments in the Abu Dhabi area alone (Food Service Profile - The United Arab Emirates (UAE), 2009). In the current scenario, there are primarily two ways in which individuals can get enrolled for cooking lessons in Abu Dhabi. The first is a long time commitment with culinary schools that offer proper diplomas and degrees in the art of culinary skills. On the other hand, world-class chefs have started their own line of cooking lessons in the area, where people who want to be professional cooks enroll themselves. Our idea is slightly different from the two. We aim to affiliate ourselves with a restaurant, and invite rotating chefs to our school to give lessons. Similar to our tier of service provision are cooking classes options like the ones at Al- Bayt, which offer baking classes. Other examples would include the cooking classes offered at the Yacht Club in Abu Dhabi, the Culinary Forum Dubai and the themed cooker schools of Table 9. The weekly price range of these cooking schools is from USD 250 per person to USD 500 per person for three months. The market for our product is fairly competitive and will require value addition and customer satisfaction to gain popularity. We aim to keep an average of the price range as our weekly price initially. Once the business gains momentum, itll be easier to raise the prices by a percentage every year. Existing cooking lessons providers in the market do not offer recreational cooking classes, which will be our unique selling point. The strategy is to introduce culinary development skills alongside themes like entertaining guests, catering for parties and cooking in fun environments like outdoor bar- be- queue evenings. The cooking classes will run from 9am 5pm on weekdays, and apart from classes, the premises that we acquire will have a high-end food store that sells imported food products. During the summers, our school will offer themed cooking classes for kids and teens so that the younger population can be indulged in new cooking styles as well. To achieve further differentiation, our business will also provide for on-premise catering options for guests. Therefore, on the whole, the business will be divided into cooking lessons, high-end food store and a catering service, something that any competitor in the market has not been able to achieve as yet.SURVEY QUESTIONNAIREWe have used the following close ended structure questionnaire with multiples choice responses to gain maximum validity and reliability in the results. Closed ended questionnaire provide the respondents with an ease of selecting answers out of the options presented at the end of each question (Babbie, 2011). The questionnaire used in the survey is presented below:

1. Gender?12

MaleFemale

2. Age?1234

18- 2526-3334- 4142-50

3. Can you speak Arabic and English languages?123

BothOnly ArabicOnly English

4. How many times you can attend cooking classes in a weak?123

2 days/ week3 days/ weekMore than 3 days/ week

5. Which timings you would prefer for cooking lessons?123

11am- 1pm3pm- 6pm7pm- 9pm

6. Which type of cuisine you would like to learn in cooking class?123

AsianArabianContinental

7. Which theme you would like for your cooking class?1234

BakingBBQNormal mealsSea food

8. In which type of cooking class you like to learn?12

Demonstration (Watch & Learn)By Hand Practice (Watch, Learn & Practice)

9. Category of cooking classes you would like to participate?1234

BeginnersCo educationOnly FemaleOnly Men

10. Your cooking class should be in? 123

ArabicEnglishBoth

0

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GRAPHICAL ANALYSISThe questionnaire was given to 50 respondents for data collection. The graphical analysis increase the convenience by presenting the results in form of pictures for quick review (Greene, 1888). The sampling was done on random basis. The responses have been recorded in SPSS and the graphical analysis of the responses is presented below:

OPERATIONS PLAN

Once the legal registration of the business is complete, the first step will towards establishing the business will be acquiring the right office space for our business. Ideally, we want to be located in A-Markaziyah, so a rental property in that area will be acquired after careful market research. The next step will be to set up the pantry, the catering room and the class rooms. We will require a range of kitchen equipments for the set up including food processor, standard cooking ranges/ovens, cooler/freezer, dishwasher, drying kitchen equipment, pressure cooker, baking equipment, canning equipment etc. The interior will require chairs, tables, benches, workstation equipment, kitchen cutlery, kitchen utensils, and cabinets for storage and kitchen shelves. Once the interior is set, the office space will require a projector and a few white boards for lesson giving. All operations will ultimately be supervised by the owner under the supervision of sales and marketing manager, HR and administration personnel, contract chefs and chef manager. We will hire chefs on contract who will visit our premises and deliver their lessons according to the work plan set by the chefs manager. The chef-instructor and manager will also look after catering events along with help from the sales and marketing coordinator. The pantry will be the sole responsibility of the Sales and marketing coordinator. Procurement of food stuff will be done according to the lessons planed, catering events organized and inventory turnover in the pantry. The HR and Administration will include one officer who is responsible for administering the shifts of contract chefs. End of course exams will also be the responsibility of the Administration personnel. Organization Chart

Figure 1:Organization HierarchyPRICING AND PROMOTIONS

Everyday low pricing strategies are being used by different competitors providing cooking lessons in the market (Berman & Evans, 2007). Because the market survey shows that the existing price range for cooking lessons is from USD 500, we aim to price our lessons at around USD 500 for three months. In this price package, we will add a few perks to make the cooking classes more attractive. For instance, a free breakfast package at the end of the week to celebrate the weeks success would be ideal. The central concept of our marketing strategy will revolve around pre-opening promotions campaign, because more and more people will need to be made aware of the services that we will offer prior to the opening of the business. To achieve that, we will primarily use an internet website and social media marketing strategies to reach out to a maximum number of internet users. This medium of marketing will generate interest amongst food lovers and culinary practitioners to check out the services that our business has to offer. With that, we will use print advertisement in local newspapers and get fliers printed for distribution in main market areas. The ideal location for our business is the city center or the area of Al- Markaziyah so our marketing activities will be concentrated at venues in this area. We will also adopt mechanisms of direct marketing by conducting a research on potential customers and then offering them specific custom-made services according to their needs. Because our business will have a capacity to manage catering events, we will sponsor one event every year to promote our business accordingly. FINANCIAL PROJECTIONS/INCOME STATEMENT

The finances of the business will be a composite of personal savings and a bank loan from one of the local banks in Abu Dhabi. The profitability of the business is considerable enough for us to be eligible for a loan. The owners have invested USD 400,000 in the business, a loan of USD 200,000 is obtained from companys bank at 6% per year. The selling price per unit is USD 500 for 3 months semester and we are expecting to enroll 30 students in the first quarter. Another major cost is the sales manager salary which is USD 36000 for three months. Depreciation for equipment is calculated at spreading the life over 10 years with zero residual value. Detailed financial projections are present in the Master Budget.

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Master Budget"The Culinary Kit" Master Budget for 20X3 & 20X4

The Culinary KitThe Culinary Kit

Opening Balance Sheet Balance Sheet

01-Jan-1301-Jan-14

Assets

Cash512000 148549

Accounts receivable 0 106691

Inventory 0 0

Equipment100000 90000

Less accumulated depreciation0 100000 090000

Total assets612000 345240

Liabilities and Equity

Liabilities

Accounts payable200000 240

Note payable to bank (12% per year)0 200000 0 240

Long-term notes payable 6% interest per year12000 200000

Total liabilities212000 200240

Shareholders' equity

Ordinary shares400000 400000

Retained earnings0 400000 (255000)145000

Total liabilities and equity612000 345240

Sales Budget

1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

Prior quarters sales in units 30 30 33 36 40 44 48 53

Plus 10%3 3 3 4 4 4 5 5

Projected unit sales30 33 36 40 44 48 53 58

Selling price per unit500 500 500 500 500 500 500 500

Projected sales $15000 16500 18150 19965 21962 24158 26573 29231

Sales Total for the Year69615 101923

Sales first quarter following2013 1st Qtr2014 1st Qtr

Prior quarters sales in units 40 58

Plus 10%4 6

Projected unit sales44 64

Selling price per unit30 30

Projected sales $1318 1929

Purchases Budget

1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

Next quarter's unit sales 33 36 40 44 48 53 58 64

Ending inventory % (multiply)25%25%25%25%25%25%25%25%

Desired units ending inventory0 0 0 0 0 0 0 0

This month's unit sales (add)30 33 36 40 44 48 53 58

Units to be available30 33 36 40 44 48 53 58

Less beginning inventory in units (minus)0 0 0 0 0 0 0 0

Units to be purchased30 33 36 40 44 48 53 58

Budgeted $ cost per unit (multiply)12 12 12 12 12 12 12 12

Projected purchases360 396 436 479 527 580 638 702

Purchases Total for the Year (total for 4 quarters)1671 2446

Budgeted cost of goods sold

1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

This quarter's unit sales 30 33 36 40 44 48 53 58

Budgeted $ cost per unit (multiply)500 500 500 500 500 500 500 500

Projected cost of goods sold15000 16500 18150 19965 21962 24158 26573 29231

Cost of goods sold for the year69615 101923

Budgeted inventory for December 31st

Units 0 0

Cost per unit - $ (multiply)12 12

Total0 0

Selling Expenses Budget

1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

Budgeted sales $15000 16500 18150 19965 21962 24158 26573 29231

Delivery charge rate (multiply)0%0%0%0%0%0%0%0%

Delivery charge total00000000

Sales Manager salary3600045000450004500045000450004500045000

Projected selling expenses3600045000450004500045000450004500045000

Selling expenses yearly total171000180000

General and Administrative Expenses Budget

1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

Administrative Salaries1000010000100001000010000100001000010000

Depreciation1000010000100001000010000100001000010000

Interest on long-term notes - 0.5% monthly10001000100010001000100010001000

Interest on short-term notes - 1% monthly075757575757575

Totals2100021000210002100021000210002100021000

General and admin expenses yearly total8400084000

Expected Cash Receipts From Customers

1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

Budgeted sales 1500016500181501996521962241582657329231

75%75%75%75%75%75%75%75%

Ending accounts receivable - 75% (multiply)75%1125012375136131497416471181181993021923

Cash receipts

Cash sales - 25% (of the quarter's sales)37504125453849915490603966437308

Collections of last quarter's receivables (i.e. 90% of 75%)90%10125111381225113476148241630617937

Collections of receivables 2 quarters ago (i.e. 10% of 75%)10%112512381361149716471812

Total cash to be collected375014250168001848020328223612459727057

Accounts receivable 4th quarter = all credit sales of 4th quarter sales plus 10% of credit sales of 3rd quarter)1633523916

Expected Cash Payments To Suppliers

1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

50% previous quarter, 50% present quarter200180378416457503553609670

Expected Dec 31st balance240351

Cash Budget

1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

Beginning cash balance5120002684952262921866011485491122997803145944

Cash receipts 375014250168001848020328223612459727057

Equipment sales

Shares issue

Total cash available 51575028274524309220508116887713466010262873001

Cash payments

Payments for merchandise 200180378416457503553609670

Sales delivery expense00000000

Salaries

Sales 3600045000450004500045000450004500045000

Administrative 1000010000100001000010000100001000010000

Interest on long-term notes 10001000100010001000100010001000

Dividends

Interest on short-term notes3%7575757575757575

Total cash payments24725556453564915653256578566285668456745

Preliminary balance (Total cash available - Total cash payments)268495226292186601148549112299780314594416256

Additional loan (min cash balance 40,000) (add)000000023744

Amount Available for loan repayment if any228495186292146601108549722993803159440

Loan repayment (minus)00000000

Ending cash balance (4th quarter balance appears in balance sheet)268495226292186601148549112299780314594440000

Ending short-term notes (4th quarter balance appears in balance sheet)00000000

Budgeted Income Statement

Sales 69615101923

Cost of goods sold (minus) 69615101923

Gross profit00

Operating expenses

Sales expenses171000180000

General and administration 8400084000

Total operating expenses255000264000

Net income (Loss)-255000-264000

Budgeted Statement of Retained Earnings

Beginning retained earnings (given)0-255000

Net income -255000-264000

Funds available for distribution-255000-519000

Less cash dividends 00

Ending retained earnings-255000-519000

Budgeted Balance Sheet

The Culinary KitThe Culinary Kit

Budgeted Balance Sheet Budgeted Balance Sheet

31-Dec-201331-Dec-2014

Assets

Cash148549 40000

Accounts receivable 106691 23916

Inventory 0 0

Equipment100000 90000

Less accumulated depreciation (depreciation in opening balance sheet plus depreciation expense for the year)1000090000 1000080000

Total assets345240 143916

Liabilities and Equity

Liabilities

Accounts payable240 351

Note payable to bank0 240 0351

Long-term notes payable200000 262565

Total liabilities200240 262916

Shareholders' equity

Ordinary shares400000 400000

Retained earnings(255000)145000 -519000-119000

Total liabilities and equity345240 143916

FINAL CHOICE

Among the two options that we have evaluated today, the more viable business idea seems to be the cooking lessons one. The ideology and the underlying market statistics of the culinary industry in the UAE are preferable for this business to be set up in the country. When it comes to non-profits, they are more successful in spreading welfare in more underdeveloped economies rather than economies like the UAE. While donors will be willing to contribute given the per capita GDP and the petro-dollars of these states, there are a fewer number of people that need development assistance in a country like the UAE. On the other hand, the business in the culinary world has an ample opportunity for expansion and development, and has a means of surviving in the market because of extensive diversification. We therefore go with the decision of choosing cooking classes as a more viable business option.

REFERENCES(2009). Food Service Profile - The United Arab Emirates (UAE). MARKET ANALYSIS REPORT, Agriculture and Agri-Food Canada, Ottawa. Canada.Babbie, E. (2011). The basics of Social Research (5th ed.). Belmont: Wadsworth Cengage Learning.Berman, B., & Evans, J. R. (2007). Retail Management (10th ed.). New Delhi: Pearson Education Inc.Greene, C. E. (1888). Graphical Analysis of Roof Trusses. Wiley.