ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 6: Management a Successful Business Project (491)

Submission date Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Le Thanh Nhan Student ID GBD17179

Class GBD0820 Assessor name Phan Tran Phuong Trang.

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Contents
I The Coffee House ................................................................................................................................. 4
II Market ................................................................................................................................................ 4
III Customers Research ........................................................................................................................... 5
IV New product....................................................................................................................................... 5
IV.1 SMART model that applies to the new dessert category at The Coffee House: ......................... 6
IV.2 Deliverable traditional egg tart is the new product of The Coffee House: ................................. 6
V.3 Competitors in the market ............................................................................................................ 8
V Budget ................................................................................................................................................. 8
Payback Period........................................................................................................................................ 8
Net Present Value ................................................................................................................................... 9
VI Constraint........................................................................................................................................... 9
VII Risks ............................................................................................................................................... 10
VIII Work breakdown ........................................................................................................................... 11
IX Personal assessment………………………………………………………………………………………………………………………8

X Gantt Chart ........................................................................................................................................ 12

PROJECT: NEW PRODUCT, EGG
TARTS FOR THE COFFEE HOUSE IN
DA NANG.

I The Coffee House

The Coffee House in Da Nang more than 1 year but The Coffee House has
become the first name when the meeting of many people. 3 values that make up The
Coffee House brand: Giving happiness, excellent coffee quality, respect for human
beings. The SWOT pattern applied to The Coffee House:
- Strength: Solid financial platform, system with more than 130 branches in
Vietnam, brand new establishment but the pace of development is fast and
evenly, many choices for size products to customers. The space is designed
scientifically and very good service.
- Weakness: Products are not much different from competitors, difficulties on
renting good ground.
- Opportunity: Investment, expanding market to reach many potential
customers. New brand but rapidly growing brand that is trusted by
everyone.
- Threats: Exclusive products of the bar can steal formulas. Economic
recession leading to impaired consumption. Hobbies of traditional coffee
flavors, domestic and foreign brands.
The main competitors of The Coffee House on the market include: Highlands Coffee,
Phuc Long Coffee and Tea Express. The Highlands Coffee brand has been long
established. There are loyal customers to Highlands Coffee. Self-produced coffee to
supply the Highlands stores all over Vietnam. High quality coffee, good service and
good stores space. The goal of the Highlands to become a leading enterprise in
Vietnam. The challenge of the Highlands coffee is the participation in the market of
new brands but rapidly growing, customers will love another brand, fierce competition
in the market.

II Market

Market savvy and always customer-focused, The Coffee House is being one of
the fastest growing chain coffee brands on the market today. Realize the change in
how to enjoy the coffee of the Vietnamese: drink coffee not only to enjoy the coffee,
but also to meet with friends chat, enjoy the experience of space, from there, The
Coffee House chose quality service as the difference of them. TCH was born,
combining optimal experience space with reasonable price, The Coffee House
becomes a place to meet friends, an open workspace, with the top quality of service
being focused.
The quality of service at The Coffee House is reflected through the optimal customer
experience, customer-centered. The Coffee House's design architecture gives
customers a warm feeling, an open workspace and friend meeting and partner. TCH
pricing strategy is launched when placing a customer role. TCH toward the price of
30.000 VND-50.000 VND. A reasonable price, for regular customer retention. F&B is
a very competitive cargo sector due to the diversity of alternative products. Therefore,
it is quite common For the stores to continually refine their menus. TCH is no
exception. In Addition to coffee items are popular, brands also develop many other
products, such as milk tea, ice-blended... The most recent is the launching of
Macchiato series, the item is very popular by young. This has brought many
alternatives to customers, when it comes to TCH, which contributes largely to the
retention of consumers.
The occurrence of dense in major cities, the brand also eats points by choosing very
appropriate target audience. The Coffee House are always in easy-to-find places, the
central of the city which owns a view of the eye-catching street. The Coffee House
increasingly scoring on the path of becoming Top-of-mind in the hearts of consumers.

III Customers Research

The following is the result of customer research of The Coffee House (TCH) carried out
through 21 random customers on the Internet. Of the 21 respondents, 18 know about TCH
and 14 used the products of TCH, which shows that TCH brand is very famous and familiar
with Vietnamese customers. Of the 14 respondents, 39% are customers who use TCH
products every week. The figure of 39% represents a very high level of loyal customers of
TCH, the business of TCH is stable. Customers come to TCH because the space is beautiful,
suitable for chatting, accounting for 67%; Because the quality of products is only 22%, which
shows that the strength of TCH is the space and products of TCH can continue to develop to
meet the increasing demands of customers. Customers who order cakes accounting for only
27%, this number is still low, there are many opportunities for development in cake. Through
customer research, it shows that TCH's products have many development opportunities,
especially cakes, so developing bakery products for TCH is very necessary.
https://docs.google.com/forms/d/1DEItcH1SPj_qoK9QYldyTMo9LPEw8I0MuJhYygA5f3U/
edit#responses ( link research customers)

IV New product
 Development of new products for The Coffee House. A combination of whole
breads and eggs and a caramel layer on the surface. Added to The Coffee House's
desserts menu for customers who have a wide choice of enjoying their drinks here.
IV.1 SMART model that applies to the new dessert category at The Coffee
House:

- Specific: develop bread into dessert dishes from basic ingredients. Ingredient
for egg tart: crust of bread, egg, butter, milk, sugar and caramel.
- Measurable: Raw material costs accounted for less than 50 percent of product
costs, production costs including machinery and labor.
- Achievable: Compete with other products in the market. Bring products to
consumers.
- Relevant: Suitable products for The Coffee House. The guest can use egg tart
with a drink at The Coffee House.
- Time-Oriented: Prepare processes and formulas to make products. Quality
assessment, ensuring food hygiene and safety. When the process is complete,
then start applying it to the customer.

IV.2 Deliverable traditional egg tart is the new product of The Coffee
House:

This traditional egg tart has a thousand crunchy layers, covered in creamy egg
cream. The crust is made of crunchy wheat flour, inside is an egg cream layer that is
cooked well. The top surface of the egg cream layer is the burnt sugar or caramel
layer. Customers can choose the taste you like, can be eaten with fruit or fruit jam
depending on customer preferences. Egg tart is a dessert dish that is very suitable for
use with coffee and tea. Customers who eat egg tarts will feel the outer shell of crispy
crackers in their mouths. In addition, the fragrant and fatty egg cream inside and a
layer of burnt or caramelized sugar on the surface of the egg cream layer makes the
cake perfect to eat, which will help prevent boredom.
V.3 Competitors in the market:

Currently on the market, Egg tart is available in stores such as: KFC, several
other pastry shops. But with its advantage of TCH's scale and brand The Coffee House
is the dessert that is suitable for use with a drink as you experience in The Coffee
House's space.

V Budget

The project needs 60.000.000 VND to pay a team with 3 members working for the
project with 5.000.000 salary/1 person/1 month in 2 months and marketing cost is 30.000.000
VND
Formula of 14 egg tarts
No Ingredient Notes Cost (VND)
1 Butter margarine 240g 24.000
2 All-purpose flour 240g 5.000
3 Salt 10g 150
4 Sugar 50g 200
5 Non-sugar milk 200ml 6.000
6 Eggs 3 7.500
7 Whipping cream 70ml 8.050
8 Vanilla essence 10ml 10.700
Total 61.600
Cost of each egg tart: 4.400 VND
Assumption the coffee house will sale average 50 egg tarts per day and the price of each egg
tart is 15.000 VND. Assumption there are 30 days in a month, the monthly cost will be
6.600.000 VND (50x4.400x30) and the monthly revenue will be 22.500.000 VND
(50x15.000x30).

Payback Period
Month 0 Month 1 Month 2 Month 3 Month 4
Investment (VND) -60.000.000 0 0 0 0
Revenue (VND) 0 +22.500.000 +22.500.000 +22.500.000 +22.500.000
Cost (VND) 0 -6.600.000 -6.600.000 -6.600.000 -6.600.000
Total -60.000.000 -44.100.000 -28.200.000 -12.300.000 +3.600.000

Payback period of the project is about 4 months.

Net Present Value
The monthly cash flow is 15.900.000 VND (22.500.000-6.600.000). Assumption the
annual discount rate is 8%, the monthly discount rate is 0,067% (8%/12)
Period Cash Flow (VND) Net Present Value (VND) Total
(VND)
Month 1 15.900.000 15.794.179

Month 2 15.900.000 15.689.062

Month 3 15.900.000 15.584.645

Month 4 15.900.000 15.480.922

NPV = 60.000.000 -15.794.179 - 15.689.062 - 15.584.645 - 15.480.922 = 25.488.08 VND

NPV > 0 so this project is Feasibility

VI Constraint

The menu of TCH has not changed, not keeping up with the trend. At 80A Nguyen Chi
Thanh branch, Danang. TCH’s menu remains unchanged including items like peach tea,
cappuccino, and mojito.
TCH’ s cakes have a higher price. For example, croissant salted egg scrambled eggs with the
price of 29 thousand VND, compared with the market here, like Infinitaste, only for 17
thousand VND. So TCH should reduce the price to be able to compete fairly with the
surrounding market
It’s hard to negotiate with the owner of TCH to bring in new bakery products. Because the
old product has a high price, so if put the new product at the same price, the user still hasn’t
seen the difference of the new cakes
After researching the market by qualitative method, the number of cake callers is only 20%.
It is difficult for consumers to choose new cakes, which may lead to inventory. TCH needs to
have appropriate marketing plans to bring new products closer to the market.

Solution:
The menu should be changed and updated according to customer need. Let customers have
more choices to suit each person’s preference and to attract young people’s market
The founder must create more opportunities for small business to rely on TCH to grow
VII Risks
Risks are inevitable when conducting a project. For example, failing to achieve the stated
goal, not guaranteeing the quality of product, not matching customer demand, unreasonable
product improvement. Another risk is competitor product has been shaped, from which the
competitiveness will be high, leading to low selling. An inevitable risk is about production
costs. In order to implement a project, there are many costs such as material costs, machinery
and equipment costs, etc. When production costs are higher than originally expected, there
will be a shortage of capital. Higher production costs mean higher product prices, which will
make it harder for project executives to reach customers, while competition for product prices
will be extremely fierce. So project implementers need to diagnose and prepare methods to
solve problems when risks occur.
VIII Work breakdown

WORK BREAKDOWN
1 Initiation phase
1.1 Review The Coffee House
1.1.1 Identify problems & opportunities
1.1.2 Identify objectives and scopes

1.2 Do market research

1.2.1 Survey and interview potential customer
1.2.2 Collect and analyze the research
1.2.3 Write a report

2 Planning phase
2.1 Identify the project timeline
2.2 Create a fomurla of egg tart
2.3 Identify constraints and risks
2.4 Determine the costs estimate
3 Implementation phase
3.1 Divide the tasks for employees
3.1.1 Explain and guide doing the tasks

3.2 Monitor the process and quality of project

3.3 Testing the product
3.3.1 Take feedbacks from customers
3.3.2 Analyze and evaluate feedbacks from customers

3.4 Improve the taste of egg tart

4 Project closing phase
IX Personal assessment:
The assessment is a judgment of work performance, based on analyzing the obtained information
compared with the set objectives and standards, to improve quality and efficiency. The purpose of the
assessment is to clarify the level of attainment and failure to achieve, detect errors and the causes of
those errors. The purpose of post-project evaluation helps create opportunities for self-assessment
skills and encourages new opportunities and initiatives to contribute to the group. I was assigned as
the constraint of the project. Project has brought me great experiences.

At first I had to face the difficulties that were during group discussions, people had conflicting ideas
from contributing ideas to studying groups, and people did not have a clear plan. Although each
person in the group has been assigned work, but people still have not fully exploited the lesson
process, there are still many shortcomings and repeated by teachers. When I did the constraint , my
first difficulty was to understand the disadvantages and risks of TCH through online resources, but
because the online source was not enough, I needed to gather more information need from outside,
about understanding the bread market of tch and the price of each product and the opinions of
customers using the cake. The second difficulty is when the group contributes ideas, there are some
members who think that their opinions are not good so they do not say or think that the topic is too
boring so they do not waste time. As a result, we will not understand what to do or will do with
dissatisfaction, which is not effective for the group. The next difficulty is that everyone in the group
often thinks that having an idea keeps saying it, but in fact when a group meeting to give an idea,
there will be some people who will not think, will not give their opinions and think teamwork will
give a general score . And after a few times such positive people will see injustice and neglect.

X Gantt Chart