Project
Selection/Proposal Form
Date: Assignment date
Project title: Open a computer coffee shop
near a college campus
Responsible Manager:
Project Manager:
This project will take more than 500 labors
hours?
[X] Yes [ ] No
This
project is a one-time effort (will not occur on a regular basis)?
[X] Yes [ ] No
Project Type
Technology [
] General Support [ ] Quality
[X] Legal [ ]
Market Share [X] Process Change [ ] Cost
Reduction [ ] Replacement [ ]
Customer [X] New Product [ ] Capacity
Other [ ]
Problem
statement:
In order
to attract college students to our coffee shop, we will need to open a coffee
shop close to college campus in walking distance of less than 5 miles. We will
need to build customers relation to have regular daily attendance in which will
secure earned revenue from those regular attendance. We will need to advertise
our coffee shop with sales promotion and flyers on the college campus and
surrounding areas such as apartments and dorms. However, sales promotion may
not increase earned revenue since we are losing profit on each sale. Still,
sales promotion will bring in new customers for our business. On the other
hand, flyers can be costly but we will need to advertise our coffee shop to
bring in customers. Also, we would like
Apple computers in a designated area of our coffee shop for customers to use.
This will be costly to our business, but we hope that it will attract customers
who do not have access to computers.
Goal
definition:
Our goal
is to gain market share through quality service and customer relation. However,
our business main goal is to meet student’s needs with current technology, a
place to socialize, a place to study, and a place to get good coffee. Other
goals that we would like to see within opening day and the end of the year is
increase profit margin revenue. We would like a profit of fifty percent by the
end of the year. Also, our main concern is the distance from college campus to
coffee location to be less than 5 miles. We would like to lease a location
close to the campus and about 2,000 square feet. We don’t want too small of an
area or too big. Our goal is for our customers to feel comfortable. A place
that is not overcrowded because of small space but cozy enough for socializing.
Goals
that address our mission:
·
Provide
an environment for social gathering
·
Provide
an environment for studying and doing homework
Goals
that address self-sustainment:
We
expect to stimulate consumers’ awareness of the coffee shop with advertisement
and close distance to college campus:
·
Increase
customers from college campus
·
Increase
customers living in the same area
·
Increase
sales revenue from coffee purchase
Objective
definition:
Performance: We expect opening a coffee shop
will increase revenue over time from building customers relation and customers’
awareness of the location. We expect increase in earned revenue from advertisement
and flyers. We project that over 5 years that this business will pay off all
business expense and earned significant revenue. We expect our yearly revenue
will equal 3,155,900 and over the 5-year period our total revenue will equal
15,779,500.
Cost Estimate: Building permits and lease, labors
and materials initial cost of
–
$1,600,900
Advertisement,
flyers, sales promotion, and display material cost
–
$555,000
Total
cost of coffee shop: 10,155,900
Total
project Benefit over 5 years: 15,779,500
Schedule: Opening a coffee shop
expected to be in one month.
