EVIDENCE 7:

WORKSHOP BUSINESS PLAN ANALYSIS

PRESENTED BY:

ALEJANDRA MARTIN

PRESENTED TO:
MARIA CRITINA MUÑOZ ORJUELA

SERVICIO NACIONAL DE APRENDIZAJE SENA

INTERNATIONAL PHYSICAL DISTRIBUTION
FILE: 1965993

BOGOTÁ D.C., NOVEMBER 1OTH OF 2020

Table of Contents

1. Introduction .................................................................................................. 3
2. General objective .......................................................................................... 4
2.1 Specific objectives........................................................................................... 4
3. Development ................................................................................................. 4
4. Conclusions ................................................................................................... 9
5. References .................................................................................................. 10
 1. Introduction

For any organization, it is very important how the brand of the product is presented to its
potential customers, as this will allow commercial recognition and open the doors to the national
and international market.

It is important to know how to offer the product, to make known the advantages and economic
competitiveness that it has against other brands, this to clearly expose the business plan on which
the organization is based,
2. General objective

➢ Understand English texts and understand relevant information

2.1 Specific objectives

➢ Enrich the technical vocabulary

➢ Recognize the importance of a trade proposal

3. Development
Workshop Business Plan Analysis

Globalization, as we have already seen and mentioned, has allowed many companies to
participate in the International market. Therefore, when considering getting involved within this
market, it is important to think about the way in which our company can compete in such market
to get the expected positioning which, in the end, will be the key aspect to develop a steady and
lasting growth for any Company
In this context, commercial proposals are essential when being introduced in a new market.
Having a good commercial proposal can become the first step in the ladder of success. That is
why, every company should pay special attention to this process as commercial proposals are
reflections of the analysis of the current state of a company.
Thus, regarding the importance of commercial proposals as well as the importance of speaking
English as a second language, complete the following workshop which, in turn, will help you to
reinforce he knowledge you have on the internal structure of a commercial propose and the
elements you need to have in mind to develop a successful one

1. Download the file called "Airport Café" which is available as complementary material for the
current Learning Activity.

2. Based on “Airport Café- Business Plan Sample” answer the following questions:

➢ What type of business is “Airport Café”?

The Airport Café is as the name implies, a place where the passenger traffic of an airport can
consume food, and drinks such as coffee, tea, among others, all with high quality standards and
in a comfortable environment, allowing the user to enjoy and rest from the shake of a long
journey, or a long wait.

➢ “Airport Café” is A sole Trader? A partnership? A limited Company? A franchise? Explain.

As seen in the reading, it is clear when they say that the only owners of the Airport Café 100%
are Mr. and Mrs. Smith, this can be understood as a partnership between these two people. The
Airport Café Limited is owned 50% by Mr. Smith and 50% by Mrs. Smith.

➢ Does this business plan provide information about short-term and long-term financial
goals?
In the short term the Airport Café, wants to finance growth mainly through working capital.
The Airport Café Search will aim for a net profit before interest and tax of at least 14% from the
second year of trading.
In the long term, Airport Café expects revenue beyond projected sales to invest in withdrawing
debt ahead of time and that revenues will approach projected over a term of approximately 5
years.

➢ Is this information important in a business plan? Explain.

Of course, it is important, because according to what is projected, the indicators can also be
formulated, which are key to measure the performance of the organization and be able to
evaluate how profitable according to what is projected to be, it also allows to see the possible
problems that can arise which will allow to take actions of improvement or corrective if it were
the case.

➢ What kind of information is provided in the executive summary?

In the executive summary, you can see a review of how the Airport Café works, its way of
operating, making a comparison against other platforms of the airport.
Of course it describes the success it has had, establishing that this is due to the quality of its
products, the type of service that is provided to customers, marketing, having a great location
near the exits, area of high flow of people; as well as the management they perform for keeping
high quality products at low costs, being more affordable for buyers; it also reviews the economic
part of what needs to be invested in order for the Airport Café to function properly, showing the
value invested and the value to be borrowed; on the other hand they describe how leases involve
an important financial point of negotiation, since when an agreement is reached it will benefit
the business and overdrafts can be avoided.

➢ How is this information useful in an International Business Plan?

While it is true that an organization's product gives it transactional value, for international trade
to be a success, it is important to develop a specific international business plan, for this it is key
to do the necessary research, invest in resources and relationships to increase potential buyers,
as well as conduct a detailed review of what is intended to be reflected in the business plan.

➢ Why did they include information about Lease terms and Suppliers?
Among the information they reflect we talk about leases, because this is an important canon to
know for the investment that should be made, also refers to the time spent in the premises and
the premiums that must be paid for them.
Against the issue of suppliers, it is important to show that it is clear how to maintain the stock
demanded by the four main suppliers, however, they also have as contingency plan six more
suppliers, demonstrating the organization and planning for the operation of the Airport Café to
be continuous.

➢ How is this information relevant?

All this information is relevant, because it explains in detail the functioning of the business, not
only of its brand and the products they offer, but in turn show what its financial perspective is
like, explain in detail what statistics are based, such as its financial, operational, logistical and
human talent operation, and of course this when making decisions either investment, budget
changes, expansion and market escalation is totally relevant.

➢ What elements are included in the market/competitor analysis?

It refers to the privileged location of the Airport Café near the exit gates and close to the food
corridors, which gives it an advantage over those of the most bidders, as well as makes a profile
of potential consumers and because the Airport Café could take precedence in the plaintiffs. On
the other hand, they also describe the type of food to offer, meeting the gastronomic needs of
traditional British food.

➢ What is this information useful for the future investors?

The information is useful for future investors, as it shows them the real picture not only of
competition, as well as all possible future options versus percentage of profit, possible loss and
trade stagnation.

➢ Being able to market and sell your product/service cost-effectively is one of the most
important aspects of running a business. Promoting your business tells potential customers
that you exist and entices them to buy more. Does “Airport Café” provide evidence of
promotion and competitive methods? Explain.

Based on the information they show, we consider that it broadly encompasses these two
concepts of promotion and competition, as it shows projections with great favorability to be
fulfilled, as well as great potential for service and product to compete with the other food chains
with which they share the population in demand.

➢ Having a good understanding of the financial side of your business right from the start will
increase your chances of success. Based on the financial forecast that “Airport Café”
provided, is it possible to establish their breakeven point (which is when the amount your
business sells matches what it spends)? Explain.

Depending on the equilibrium position explained by the Airport Café, they can reach it as long as
they reach a fixed monthly cost of 57,873 euros and a variable cost per customer of 5.70 euros,
which is very feasible to achieve taking into account the projection of consumption divided
between drinks and food the average expense of the customer is 12.54 euros; and even if the
projection was based on the most common and minimum expenditure which is 8.89 euros;
therefore, these product consumption revenues coincide and are well above what is projected
and required to maintain the balance point.

➢ If it were up to you to invest on Airport café, would you invest on them? Why?

If it is objective and observed from the current perspective, although it is a profitable business
and with a high and constant demand for the projections they present in their business plan, we
consider that it is not a very viable investment today due to the Pandemic landscape, a situation
that has echoed in all economic sectors and which precisely because of mobility restrictions could
drastically affect sales behavior in the Airport Café.
 4. Conclusions

Throughout the development of the activity, we see the great importance of raising a truthful,
objective, clear and solid business plan for an organization; because through it many doubts can
be cleared about the operation not only productive, operational, financial and humane, for
potential investors.
In turn, it allows to evaluate in all aspects the operation of the same, since this business plan can
be measured by means of indicators the results and perform a traceability of them.
5. References

➢ https://sena.territorio.la/content/index.php/institucion/Titulada/institution/SENA/Finan
zas/121518/Contenido/DocArtic/Airport_Cafe.pdf

➢ https://www.menzies.co.uk/international-business-plan/