SLIDE 1 Coffee Shop
Cristine Lambarte
Eddie Lin
James Hsi
Margarita Hua
BUS 600 | Instructor: Eric Tao
SLIDE 2 Our CALMAT Mission
SLIDE 3 Our mission: to welcome and inspire a human soul – every sip of our coffee.
SLIDE 4 Why Coffee Shop?
1) a place to enjoy coffee
2) a place for students to study
3) it is convenient
4) it is located at the university
5) it is a cafeteria
2) a place for students to study
3) it is convenient
4) it is located at the university
5) it is a cafeteria
SLIDE 5 Location
SLIDE 6 Menu
SLIDE 7 Business Structure
S corporation
> $1 per share, issue 60,000 initial shares
> each shareholder invests $15,000, holds 12,000 shares (20%);CALMAT has
12,000 shares (20%) for royalty and rent
> $1 per share, issue 60,000 initial shares
> each shareholder invests $15,000, holds 12,000 shares (20%);CALMAT has
12,000 shares (20%) for royalty and rent
SLIDE 8 Finance
How do we get our fund?
1) bank
2) shareholders, and etc.
As a new entrant, 4 shareholders have 20% shares each,CALMAT has 20%
1) bank
2) shareholders, and etc.
As a new entrant, 4 shareholders have 20% shares each,CALMAT has 20%
each shareholder invests $15,000:
1) cristine, president
2) Margarita, ceo
3) eddie, cfo
4) JAMES, secretary
5) Calmat
1) cristine, president
2) Margarita, ceo
3) eddie, cfo
4) JAMES, secretary
5) Calmat
SLIDE 9/10 Initial Balance Sheet
| ASSETS | LIABILITIES | ||
| Cash | $10,000.00 | Accounts Payable | $50,000.00 |
| Store Inventry | $10,000.00 | ||
| Equipment | $30,000.00 | ||
| Goodwill & Royalty | $10,000.00 | ||
| TOTAL LIABILITIES | $50,000.00 | ||
| TOTAL OWNER'S EQUITY | |||
| Owner's Equity | $10,000.00 | ||
| TOTAL ASSETS | $60,000.00 | TOTAL LIABILITIES AND EQUITY | $60,000.00 |
SLIDE 11 Operations
How do we get COMPETE WITH COMPETITORS?
1) COFFEE DELIVERY IN THREE MINUTES
2) FRENCH ROASTs COFFEE COMES DIRECTLY FROM SOURCE
INVENTORY STRATEGY?
1) WE KEEP THE COFFEE BEANS FOR 2 WEEKS
1) COFFEE DELIVERY IN THREE MINUTES
2) FRENCH ROASTs COFFEE COMES DIRECTLY FROM SOURCE
INVENTORY STRATEGY?
1) WE KEEP THE COFFEE BEANS FOR 2 WEEKS
SLIDE 12/13 Marketing
location advantage:
1) CALMAT faculty, staff, students, AND other clients get 20% discount
2) POST CALMAT COFFEE SHOP
FLYER aROUND THE
NEIGHBORHOOD (I.E.,PARK,
light-rail station
1) CALMAT faculty, staff, students, AND other clients get 20% discount
2) POST CALMAT COFFEE SHOP
FLYER aROUND THE
NEIGHBORHOOD (I.E.,PARK,
light-rail station
3) advertise on the internet
who are the competitors/incumbents?
How do we sell?
who are the competitors/incumbents?
How do we sell?
SLIDE 14 Marketing Strategy: Porter’s Five Forces Analysis
1) WE USE COSTCO AS THE MAIN SUPPLIER FOR OUR COFFEE AND
ACCESSORIES
2) (WE ARE A NEW ENTRANT)
3) WE USE FRENCH STYLE
4) ()
5) WE SELL THE COFFEE IN A
BARGAINED PRICE, $3.00
ACCESSORIES
2) (WE ARE A NEW ENTRANT)
3) WE USE FRENCH STYLE
4) ()
5) WE SELL THE COFFEE IN A
BARGAINED PRICE, $3.00
SLIDE 15/16 Marketing-Consumer & Distribution Channel
1) buyer: faculty, staff, students, other clients:
light rail passengers, 22
miles employees, san jose
down town residents
2) distribution channel:
retail stores
3) influences:
4) who needs it, why?
5) is it planned to buy our coffee or an impulse buy?
6) what are the perceptions of our product?
light rail passengers, 22
miles employees, san jose
down town residents
2) distribution channel:
retail stores
3) influences:
4) who needs it, why?
5) is it planned to buy our coffee or an impulse buy?
6) what are the perceptions of our product?
SLIDE 17 Quantitative Analysis
1) cash flow analysis
first year cash inflow (revenue from sales – $49,500)
first year cash outflow (costs of production – $42,500 = net $5,000
2) npv – net present value
first year cash inflow (revenue from sales – $49,500)
first year cash outflow (costs of production – $42,500 = net $5,000
2) npv – net present value
SLIDE 18 Marketing-SWOT Competitive Analysis
SLIDE 19 Business Forecast
| 1. First year: | ||||||||
| Revenue $49,500 | ||||||||
| $3/cup x (2,000 1st Q +3,200 2nd Q +4,800 3rd Q +6,500 4th Q)=$49,500 | ||||||||
| Cost $42,500 | ||||||||
| Material $16,500, Salary $20,000, Utilities $6,000, Others $2,000 | ||||||||
| Net $5,000 | ||||||||
| 2. Second year: | ||||||||
| Revenue $108,000 | ||||||||
| $3/cup x 3,000cups/month x12month = $108,000 | ||||||||
| Cost $ 92,600 | ||||||||
| Material $36,000, Salary $41,600, Utilities $10,000, Others $5,000 | ||||||||
| Net $ 15,400 | ||||||||
| 3. Third year: | ||||||||
| Revenue $144,000 | ||||||||
| $3 x 4,000 x 12 = $144,000 | ||||||||
| Cost $107,600 | ||||||||
| Material $48,000, Salary $41,600, Utilities $12,000, Others $6,000 | ||||||||
| Net $ 36,400 | ||||||||
SLIDE 20 Long Term Goal
expanding:
1) store chain (retained
earnings
2) franchise (royalty)
1) store chain (retained
earnings
2) franchise (royalty)
