Final Entry re Group Presentation CALMAT Coffee Shop

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

            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

            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%

  each shareholder invests $15,000:

  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

            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

  3) advertise on the internet

  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

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?

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

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)