Executive Summary NOT DONE Purpose Statement The purpose is of this report it to present a business plan to reopen the Commons Corner store located in North Park Secondary School. It will sell wanted food products to North Park students and staff (Mr. S said it was too generic, make it more specific) It will sell wanted café style of food products to North Park students and staff? Brief History and Current Situation North Park Secondary School is a diverse school in the Peel Region of Brampton, Ontario. It was founded in 1978, and has been up and running ever since. The current principal at North Park Secondary School is Pat Geale. The current vice principals are Donna Moore and Jennifer Kipfer. Notable alumni include Cassie Campbell, a gold medal Olympian and Shomari Williams a defensive football player on the Saskatchewan Roughriders. The school also hosted the International Co-op Program in conjunction with AFS (American Field Services). This program has selected a number of students to volunteer in South America. North Park currently hosts and has been hosting the IBT (International Business and Technology Program), where students are taught in an environment that consists of using laptops, instead on paper and pencil, all courses are designed around a business field, for 5 years. North Park has hosted the “Relay for Life” charity event as well as the “30 Hour Famine”, through out the past 5 years, alternating every year . North Park currently has enrolled 1364 students, including 423 grade 9 students, 360 grade 10 students, 319 grade 11 students and 240 grade 12 students. The Commons Corner is located in the lobby of this high school. It is a popular place for students to spend their time. The Commons Corner Store was shut down about 5 years ago because of the mess students created and because of the vandalism that was being caused by the students. It was also closed because people were stealing products from the store. Mission Statement and Values Viking’s Grub provides new food experiences to staff and students by serving a variety of quality and nutritious food products at a price that they can afford. Viking’s Grub believes in treating all members of our team and community with respect and equality. Description of Store The name of this business is Viking’s Grub. The store is a combination of quality food products and beverages that will be sold to the staff and students. It is located in the Commons Corner also known as the lobby of North Park Secondary School. The products such as hot chocolate, cappuccinos, bagels, ice cream, soup and salads are going to be sold in the store. A value menu is going to be incorporated in the store, which will consist of goods less than fifty cents. This will allow students and staff with pocket change to purchase products as well. Target Market The target market for this business is all students and staff in North Park Secondary School. This also includes all visitors and guest speakers. The business will target the younger grades, including the current grade 9 and 10 students, and incoming grade 9 students. The business will establish a relationship to ensure future sales. The target market also includes students who do not have the time to make a lunch, breakfast or bring snacks to school. The business will also be targeting the frequent customer at the cafeteria, ensuring that they come to the Commons Corner store, and not the cafeteria. Teachers will also be a primary target. The business targets teachers because many of them want a better working environment and a better life for their students. Through selling to the students, and with 70% of the proceeds going back to the school, this will ensure that their needs are met. The senior grade students, who are busy with their future planning, such as planning for a career, applying to different universities or colleges, or studying for major exams will be targeted as well. These students will not have time to make their own breakfasts, lunches and snacks that the business can provide. Based on research, these students have little money to spend; however, they are willing to spend $0 to $5. The best suited customers for this business are students and staff who purchase breakfast, lunch and snacks daily. These individuals are more likely to purchase the products because of their daily purchases as well as the low prices. However, students who would like to treat themselves at school, to an ice cream cone or other goods would also be great customers. Marketing Research The current needs of the students and staff of North Park Secondary School are related to receiving a quality education. The current wants are to have more money to enhance our school and have a nutritious and low priced menu at North Park. According to the surveys conducted, the business has a 67% demand from our target market. Research shows that the target market is willing and able to purchase goods for less than $5 (refer to pg___, question 10). This informs the business that all products being sold have to be less than $5 to attract the maximum number of customers and also allows the business to target products that are right for the store. The extensive research, conducted through surveys (refer to pg. _____, questions 1,2,3,4,5,6,7) asked students what products they would purchase in a school store. The following products have been chosen to be sold in this business; soup, salads, bagels, toast, ice-cream, cappuccinos, hot chocolate, coffee, various candies and hot tea. The surveys have helped narrow down the specific flavours so that the business will maximize profit. Competition Some of the competition to the business would be the cafeteria store. Through extensive research, the business also found that there are restaurants such as Little Caesar`s, Pizzaville, and Hasty Market. Indirect competition includes the local strip plaza and Trinity Commons Shopping Mall. There are stores such as Tim Hortons, Subway, Harvey’s and Pizza Pizza in the mall. All these stores will provide competition because of the similar food products that they sell. However, the major competition would come from the school cafeteria, Little Caesar`s and Pizzaville because of their easy accessibility which makes these stores direct competition. One advantage that the business has over the major competitors is that the business sells different products that are not be available at other stores. For example, bagels, cappuccinos, hot chocolate and french vanilla are not sold at the competitors’ stores. The competitors sell products such as pizza and fries as their main source of income but, at this business we offer healthier choices with a far more affordable and nutritional value. The products sold at the store differentiate from most competitors, because the money that students spend at the business will go back to the school, to help fund for other school activities. Also, the business sells products at competitive prices which will give this business a higher chance at making a profit. FEATURES Goals The business has many goals that it strives to achieve. Some strategic goals the business has are: That we would like to expand into a franchise in the next 6-7 years. It would like to be in every high school in the Peel Region which includes Caledon, Mississauga and Brampton. The operational goals the business has set to reach its strategic term goals above are: That the business wants to serve at one point, to every North Park student and staff in the school The business aims to be the most favoured store for purchases of food items in North Park. A goal has been set to be the most visited and popular store in the region The business plans on having a very effective organizational structure to create an open environment for customers and employees. Organizational Structure The business employs a form of hierarchy structure. At the top, there will be a CEO which is Mr. Gaele. Beneath the CEO, there will be four managers who will direct and organize the employees. The managers will respond to the CEO. There will be three employees who will be beneath the managers and will respond to them. This will ensure that the business always has two workers on duty at the store. One manager will also be mandatory at business hours. The business plans on having a well structured and motivated crew to obtain the most sales and to perform at its best. This organizational structure will ensure minimal error and will have the maximum chance of success. Ownership Structure The business will be a partnership between six people. Mr. Gaele, the principal of North Park Secondary School, and the five creators of the business, who are the managers, will be responsible in running the business and making sure it is performing at its best. If the business is successful it will plan on turning itself into a franchise. This will mean more profit for the store and the school. This structure will also help us achieve the strategic goals set up by the business. Leadership and Motivational Approach To keep the employees on task and working the business will first employee a strict leadership style. This means that everything that the managers or CEO asks needs to be done. As the store becomes more known and employees have started to work efficiently then the leadership style will change to a more democratic style so that the employees stay happy and satisfied. The motivational approach will first have to be internal for all employees due to the strict leadership style and then it will change to a more external motivational approach due to the managers and CEO being more open to suggestions. This approach will help the company gain successful leadership and motivated employees. Marketing Plan Product Vikings Grub sells a variety of goods to North Park students. There are two varieties of coffee being offered: Hazelnut, and Irish Cream. This differentiates from the local competition of the cafeteria, as we will sell flavoured coffee, and offer two different types. Red Rose tea will also be produced and ready to be sold at Vikings Grub. There will be hot chocolate, and French vanilla cappuccino available all day. A variety of loose candy will be sold, in either pre-packaged bags, or loose with an individual cost for each piece. Ice cream, served in cups or cones will be sold. The ice cream will be available in the three most popular flavours, estimated through surveys (refer to__________); chocolate, strawberry, and vanilla. As a healthy choice to satisfy many teenagers throughout the school, the store will also sell three different types of salads; Caesar, Greek, and Garden salad. Cream of mushroom soup, as well as, Chicken Noodle Soup will be offered. For breakfast, the store will also sell bagels, and toast, with a choice of butter, or cream cheese on either. The product features include different options for each type of product. Example: For example, the business has two different types of coffee and four different types of hot beverages. The product differentiation is that the money that the business will earn from the store actually will go back to the school. Promotion The business will be advertising as a form of promotion. The business will create posters, to advertise and emphasize certain products, attracting customers to the store. These posters will be posted up on various locations in the school. The business will also create a “radio” ad to use for the morning announcements which will be aired every morning, during a vital time in the day, when most students and staff listen to the morning announcements, and important statements. The business will also use sales promotion as a different source of promoting the store. It will give potential customers free samples, and different discounts throughout the year. The business will have promotional pricing to help encourage more sales. There will be a period of time when the business will have a rewards card, every 10 cups of coffee you buy, you will get one free, or every 10 scoops of ice cream you buy you will get one free. This will ensure future sales and more interest in the business. Price The selling price of different products varies. Included below is a table with the price of every item. Product Price Ice Cream in a Cup $1 Ice Cream in a Cone $1.50 Coffee (Any Flavour) $1.25 Tea (Any Flavour) $1 Soup (Any Flavour) $1.50 Bagel (includes choice of butter or cream cheese) $1.25 Salads (choice of Greek, Ceasar, or Garden salad) $2.25 Hot Chocolate $1 French Vanilla Cappuccino $1.25 Candy (mixed bag) $0.75 Extra Ice Cream Toppings $0.50 This will be promotional pricing. The business does not want to scare potential customers with premium pricing; we want to make sure that the products are affordable for every potential customer. An example of promotional pricing is a value menu that will include items for under $0.50, to attract more customers, other than customers who would buy lunch or hot beverage. Conducted research shows that students and staff are willing and able to buy food from the cafeteria at $0-$5, which would show that the business should also be selling at that price range to create potential customers. Place The channels of distribution will be going to the producer, to the retailer, which will then lead to the business, which is another retailer and then to the consumer. The store will be located in the Common’s Corner section, located in North Park Secondary School. This product will be sold at retail, at the store. Human Resources Plan The business will recruit quality employees through developing different posters and advertisements to create interest in potential employees. To employ higher levelled employees such as managers and supervisors, the business will use different employing websites to recruit these types of employees. There will also be advertisements such as posters and written advertisements on the North Park Vikings website to attract other candidate. There will be a success profile developed; this will determine what the employee will need to be considered for the job position. To be a successful employee at Viking’s Grub, employees will need to have great communication skills, basic math skills (for recipes and cash register jobs), the ability to multitask, and be able to balance their education along with their work. The business requires potential employees at least a 75% average in all of their classes. Employees will be chosen through a process including an application, resume, teacher referral, and interview. Through the resume, the extracurricular and volunteer sections will be worth a lot, and could determine whether or not a candidate is chosen. Work history, will also be looked at, however, it is not needed, but would help the candidate. Teacher referrals will be used as a tool to determine different aspects of the candidate on a daily basis. Resumes, cover letters, applications, and following interviews will also determine the selection of these candidates as employees. After the selection process, there will be training and orientation for new employees. A senior employee will give a tour of the facility, use machinery, demonstrate proper hygienic habits while in the workplace and prepare orders for potential customers. All employees will be trained on how to use the cash register. Over the course of the first work week there will be an evaluation assessing employee progress, how well they relate to the environment, work with other, treat customers, and handle money. These evaluations will asses how well customers are treated with the respect, and that the employee practices proper sanitary and health practices to ensure that employees and customers are in a safe and healthy environment. The right type of staff for the business would be those who are responsible, and have acquired the qualities needed to help Viking’s Grub succeed. This will be known through an interview with the possible candidate. There will be a total of four employees for both the shifts. Two employees will work during the first shift, which includes the morning shift from 8:00 am to 8:25 am, and the third period lunch shift. The other two employees will be working during the second shift during the fourth period lunch and the after school hours from 3:00 pm to 3:30 pm. Positive employee attitudes will be encouraged throughout the workplace, as well as employee criticism, to ensure that employees who are the right fit for this company stay with this company. However, performance appraisals will be held every month. These will be conducted by the managers. The appraisal is in the form of a point system, the employee with the most points, will be rewarded with a $25 gift card to various establishments. The employee will also be available to be rewarded with a Christmas bonus at the end of the year, given to one employee every year, for their outstanding qualities, and work ethics that they have developed in the workplace. Any issues or problems amongst employees will be a priority at the business because, employee satisfaction is very important to us. There will be a three strike system; this will give employees three chances to improve behaviour or work ethics to keep their job. If there are any more than three incidents that have happened, the employee will be dismissed. Departures and dismissals will be handled discreetly. In the instance of a dismissal, the employee will be notified a week in advance, that they are being dismissed from their duties at the business. Dismissals will include a interview, to let the employee know what they have done wrong, and why they are being let go, and it will help the business’ team to make changes to ensure that there will not need to be any future dismissals of this manner. In the incident of a departure, there will be a process that will need to be followed. Employees will need to give the business at least a weeks notice to ensure that the business can replace their position. There will be an exit interview, to help the business understand why the employee is leaving and what the business can do help prevent further departures. If an employee is graduating and will be leaving Viking’s Grub, there will also be an exit interview conducted. This interview will give the business feedback on how to improve current standards that would help employees perform better. Interview Questions 1. What qualities do you have that would help you excel in this position? 2. Why are you applying for this job? 3. Why should we hire you? 4. What experience do you have, that could help you in this position? 5. What is you current education? 6. Have you completed any other credits out of school? 7. What skills do you have that will help you with customer service? 8. Where did you find out about this job? 9. What do you think your greatest strengths and weaknesses are? 10. What do you know about Viking’s Grub? Departure Interview 1. Why do you intend on leaving this occupation? 2. What position were you occupying? 3. Does your departure have anything to do with a work environment issue? 4. Were you disrespected or mistreated while working for Viking’s Grub? 5. Is it a personal issue that has caused you to leave? 6. How could we as a company improve conditions that you have left for? 7. Would you re-consider leaving this position if we made the following changes? 8. Would you recommend this job to friends or family? 9. What were the best/worst parts of your job? 10. Do you think that we provided less training than needed to be successful at your position? Dismissal Interview 1. Do you understand why you are being let go? 2. Is there something that Viking’s Grub could’ve done in order to prevent this incident from happening? 3. Do any of these incidents involve other employees? Were they the cause of your behaviour? 4. What were the best parts of your job? 5. What were the worst parts of your job? Graduation Departure Interview 1. In your experience at Viking’s Grub, what would you say helped you the most for your future career? 2. What recommendation would you make for further efficiency at Viking’s Grub? 3. Was the orientation and training provided enough to help you succeed at your job? 4. What was the biggest challenge that you continually face while working at Viking’s Grub? 5. Did the schedule provide enough time for personal needs as well as work? Challenges to the Business Challenges to the business include all of the reasons why the commons corner store closed down before. The business will need to ensure that the common’s corner is kept clean at all times. This will be prevented by letting customers know that their garbage needs to be put away in a garbage can or a recycling bin. The other challenge that may happen is that students may decide to steal products from the store, as it happened in previous years. To ensure that this does not happen, the store door will be locked at all times, when not in use, and as soon as employees enter the store, they must lock the door. The window that allows employees and students to make transactions will be kept closed when not in use. There will also be a lock on the window to ensure that students can not enter the store through the window when not in use. All items close to the opening of the window will be moved into the back of the room, in a storage container, where students will not be able to see it. Another challenge could be, that there will be much more demand than expected. To overcome this challenge, there will need to be an abundance of product materials in order to be ready for this challenge. In that case, if there is not enough employees at any time, managers, will step in, in order to ensure that customers are being served as quickly as possible, in a respectful, and courteous manner. Reaction of Competitors A competitor will or will not react, whether or not the competitors feel that the business is a threat to their business or not. Competitors may introduce reward programs to attract other customers. To avoid this, the business will also have reward programs and, let customers know that the business does also offer that promotion. Competitors may also decide to reduce prices. As a reaction to that, the business depending on how well it is doing may decrease prices as well. If the business is not doing well, and not making as much profit as expected, and getting enough demand, as would be needed to help reduce prices, then the business will need to continue promoting itself, and get even more customers through advertisements, so that it would be able to offer lower prices. Other competitors may try new promotions to try and attract the business’ customers. To prevent customers from leaving; the business will also have monthly promotions. Section 7 NOT DONE Conclusion NOT DONE