FP AP 15 EVIDENCE 7

BUSSINES PLAN ANALYSIS

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EVIDENCE 7:

WORKSHOP BUSINESS PLAN

ANALYSIS

PRESENTED BY:
Elcy Lorena Fuentes Ramírez

PRESENTED TO:
Javier Rolando Vega

SERVICIO NACIONAL DE
APRENDIZAJE SENA
INTERNATIONAL PHYSICAL
DISTRIBUTION
2022
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Table of Contents

1. Introduction........................................................................................4
2. General objective................................................................................5
2.1 Specific objectives...............................................................................5
3. Development.......................................................................................6
4. Conclusions........................................................................................11
5. References.........................................................................................11
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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,
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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
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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
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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
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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.
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 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

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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.
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4. Conclusiones

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/