PRINCIPLES OF BUSINESS PRODUCTION BY KARESSA TABLE OF CONTENTS

Table of Contents 1 Introduction 2 Description of Business 3 Location 5 Labour 6 Type of production 7 Levels of Production 7 Role of the Entrepreneur 8 Use of Technology 9 Linkages 10 Potential Growth 12 Government Regulations 14 Ethical Issues 15 1. INTRODUCTION Kim’s restaurant and bar is located at 21 Street, Grand Bazaar. Kim’s restaurant and bar is established as a restaurant and bar which offers breakfast meals, lunch meals, dinner meals and a lot of other choices for you to sit eat and relax. There is television for you to watch as you eat, it’s very relaxing and easy view at everyone table. This business plan will be on the production aspect.

Kim’s restaurant even offers a private bar separated from the restaurant for a gentlemen’s club for them to come and relax. 2. DESCRIPTION OF BUSINESS The name of the business is Kim’s restaurant and bar, it is a Sole trader business that will be run by me. The business carries out various activities such as meals like sushi, steak, chinese and so on, coffee and other drinks and also the private bar. The aim of this business is to satisfy customers, help relax them and give them an enjoyable time. This organization has a line structure consisting of Nicholas Brown the Managing Director, a Marketing Manager who has Sales Manager and his two cashiers under his control.

There is a Production Manager who has three chefs and there team and a Personnel Manager who has two waiters and three waitresses and two bar tenders. The Finance Manager has an accountant and the buying department under her control. The business venture that will be undertaken is drinks making and preparation of food. 3. ORANIZATIONAL CHART STAR MANNING (OWNER) STAR MANNING (OWNER) MANAGER MANAGER CHEFS CHEFS WAITERS WAITERS WAITRESS WAITRESS BAR TENDERS BAR TENDERS ACCOUNTANT ACCOUNTANT CASHIER CASHIER CASHIER CASHIER SALES MANAGER SALES MANAGER PERSONNAL MANAGER PERSONNAL MANAGER MARKETING MANAGER MARKETING MANAGER FINANCE MANAGER FINANCE MANAGER 4. LOCATION Kim’s restaurant and bar is located 48 West 21 Street, New York, Manhattan.

This location is an ideal one as it provides a large number of potential customers since Manhattan are popular place for restaurants. Also this location is where everyone hangs out and people live very close by. The raw materials and supplies are close by which are meats, spices, vegetables and other ingredients the chefs need to prepare the meals. Although the location is easy to reach, the workers get there with little hassle. Another benefit is that there is easy access to health facility in case of emergencies. 5. LABOUR The type of workers which will be employed will be both skilled such as the accountant and chefs and unskilled worker, which will be the cashiers, waiter and waitresses.

The skills the skilled workers will need to posses are varied as the accountant will need accounting skills while the chefs will need cooking skill. For the unskilled workers they will have to be trained to work the cashiers, percolators, stoves and blenders but must have some qualifications such as people skills, which will enhance customer’s friendliness. The workers will be obtained by placing an advertisement in the newspaper for jobs and holding an interview for the persons applying in order to select which applicant to hire or give the job. Persons who will be applying for the chef’s position must have at least a first degree in culinary arts. The accountant’s position will require the person to possess qualifications higher than a first degree in accounting. 6.

TYPE OF PRODUCTION The type of production that this business will be participating in is tertiary production. The business will also fall under the service industry; this is mainly because it will be distributing the semi- finished products converted by secondary production as in the meats and crops which the chiefs will need. LEVELS OF PRODUCTION Production is necessary to meet the consumption needs of person, needs such as clothing, food and shelter and wants as well. The level of production which the business operates under is domestic production, where the business goods are produced for the local market and not just for individual, family or community.

If sales go well Kim’s restaurant and bar will look to change the level of production from what the business is currently operating under, to export- oriented production, where the meals prepared by the business will be made not just for the local market but also for persons in other countries by means of exporting, before this can happen the business will first need to expand. 7. ROLE OF THE ENTREPRENEUR The role of the entrepreneur of Kim’s restaurant and bar is crucial to the business as being sole owner it is my responsibility to obtain the capital needed to start the business. Having obtained the funds the entrepreneur is therefore responsible in seeing to it that this business is profitable and not running at a lost. The entrepreneur will be responsible for defining and clarifying business decisions so that personnel at all levels may know and understand what is goal of Kim’s restaurant and bar.

If this information is known then it should help in making everyone aware of what Kim’s restaurant and bar business may achieve. The entrepreneur will also be responsible for making any changes seen as being necessary to further develop the business. 8. USE OF TECHNOLOGY The modern day society has become advanced hence most persons use some sort of technology in their business. This restaurant industry has adopted these systems such as a touch- screen display to allow cashiers and servers to input orders, sending them to the kitchen for preparation without manually call the order back and submit a hand- written dining ticket. There are great advances made in computerized stock management and time clock management.

These two are components are integrated directly into the system allowing employees to clock in and out which keeps track of hours worked. The system also tracks the amount of food and dry stock that is in storage and automatically alerts severs when one or more items are out of stock. These advanced technology helps to improve the restaurant and give it faster flow so people can get there foods and drinks faster without any complains of waiting to long. 9. LINKAGES The restaurant and bar will form both backward and forward linkage. The forward linkage will be carried out in two ways, firstly to prepare our wine and coffee where the farmers will plant and harvest the coffee beans and rapes and so on necessary to make the coffee and wine. This will be then sent to the suppliers who package the coffee beans and grapes, who Kim’s restaurant and bar then buys from and makes into different varieties of coffee and wine the business offers, which finally the customers come and purchase. The second forward linkage that will be carried out will be to prepare the meals for customers, where the livestock and crop farmers and fishers will provide raw food to be sent to the groceries and markets, which will then be checked as to the quality of raw foods and then cut into smaller pieces and packages. Kim’s restaurant will then purchase the packages and the chef will prepare the meals.

Finally the prepared meals will be ordered and purchased by the customers. The backward linkage however will be between suppliers of machines which will be used in Kim’s restaurant and bar such as grills, stoves, blenders, cash register and the percolators used to make the coffees. The first forward linkage (To Prepare the Coffee) 10. The second forward linkage (To Prepare a Meal) 11. Potential for Growth The Cafe will face many competitors which offer almost the same goods. One such competitor is Jade Gardens which will be its biggest because of how close it is like basically rite next door. Also there is another coffee shop located in New York, as well as all the other fast food outlets.

The strategies which the business will imply for growing the business will be to try and obtain or snatch away Kim’s restaurant competitor’s customers by carrying out a survey to find out what puts them over Kim’s restaurant. The survey will also help to show what we can offer that consumer’s want and are not offered by the competitors and adjust these problems. It will also be necessary to put away a portion of the business earning or profits into a saving account until it is enough to purchase space in another key location. This will be necessary as it may appeal to consumers who may not be able to reach Manhattan or find it easier to reach that location instead of the original. The following table and pie charts indicate findings which will be important to the growth of the restaurant. Market Size (Table)

Potential Customers |Early Morning Meals |Afternoon Meals |Evening Meals |Night Meals | Children under 13 3% 0% 2% 1% Teenagers 7% 5% 25% 45% Young Adults under 31 65% 70% 45% 35% Adults older than 31 25% 20% 20% 15% Seniors older than 60 0% 5% 8% 4% 12. Line Chart of Potential Meals 13. Government Regulations Before businesses are allowed to operate it is necessary to access the government regulations and find out which ones apply to the business. They also need to make sure they have the necessary licenses and permits needed for them to operate and finally complete all the necessary documents which must be completed.

Kim’s restaurant will try to obtain a food handlers permit as well as make sure that all our chiefs possess them, as well and that the drink makers possess an alcohol licenses. Kim’s restaurant will also make sure we receive permission from the public health department to make sure that, sanitary conveniences and other health issues to insure that Kim’s restaurant is suitable for approval. Kim’s restaurant will also go to register with the registrar of company so it can operate as a legal business. Kim’s restaurant will also try to obtain a permit which proves that the location where the business is located is legit or that the business has been given the go ahead or allowed to operate there. 14. Ethical Issues Ethical issues basically have to deal with the things the business do are they morally right.

Kim’s restaurant will do its best to ensure that it is operating under or do things which are morally acceptable, this is so because Kim’s restaurant places great importance on consumer’s goodwill that is the business wants to ensure that the consumers are behind or support the company. Therefore Kim’s restaurant will ensure that all of its waste is properly disposed of, where the business will ensure that all workers dispose of their garbage in all the disposal bags which are there, after that is done the disposal bags will be placed outside for the garbage collectors to come and collect. The business will also not be encountering any copyright infringement this is solely because it is operating as a restaurant which has no one person has a patent on also the name of the business is not possessed by another business therefore Kim’s restaurant will also get a patent on the name Kim’s restaurant. 15.