Fcb Fantastic Coffee Bun example essay topic

Management Accounting II FCB Bakery Shop Executive Summary FCB Bakery is a specialty food retailer. FCB uses a system that is similar to RotiBoy Bakery to provide Mexican buns in a fast and time-efficient way. FCB provides its customers the ability to order and buy the bun without waiting in long queue. FCB is offering cheaper offers to the RotiBoy. FCB offers its patrons the finest Mexican buns, specializing in specialty coffees flavors.

In addition, FCB will ensure the patrons grab their freshly made buns straight on the spot without delay. Seasonally, TDP will add other flavors such as chocolate, cheese and more flavors. FCB will focus on two markets: The Daily Commuter- someone traveling to / from work, out shopping, delivering goods or services, or just out for a drive. The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for finger food, or where finger food are an integral part of the environment.

FCB will penetrate the commuter and captive consumer markets by locating their premises in the most logical and accessible locations. The location are carefully selected in a two-sided traffic and selling the buns in less time than required for a visit to the locally confectionary shop. In addition to providing a quality product and an extensive delicious buns, to ensure customer awareness, as well as good publicity coverage and media support, we will be using word of mouths strategy based upon customer positive feedback. The FCB's financial picture is quite promising. Since FCB is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and FCB recognizes that a higher level of talent is required.

The financial investment in its employees will be one of the greatest differentiators between it and FCB's competition. For the purpose of this cash budgeting, the capital expenditures of facilities and equipment are financed. There will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur. The danger in having direct competitors would rise up and establish a foothold on a community before -- or in the midst of -- the arrival of FCB, causing a potential for a drain on revenues and a dramatic increase in advertising expenditures to maintain market share. Knowing these risks -- and planning for them -- gives FCB the edge needed to make this scenario work.

The projected profits estimates a profit of $166,004 for the first year, $157,309 for second year and earnings of $147,754 on the third year. Introduction First, there was Rotiboy. Then came Roti Mum, Hero and even Pappa Roti. These butter-filled Mexican buns topped with caramelized coffee-cream have become the latest fad to hit food-crazy Singaporeans. It has become the next biggest food craze in Singapore. What is the rationale for this bun's popularity and why it is attracting so much people crazy for it?

Most customers are enticed by the aroma of freshly baked buns to queue up and "just try". The new concept to serve it straight away from the oven is one of the reasons that attract most of its patrons. Best eaten when piping hot and it is the wonderful aroma of the coffee butter emanating from the simple bun (flaky and crispy on the outside and light and fluffy in the inside) that keep its customers coming back for more. Rotiboy is the brainchild of 40-year old Mr Hiro Tan, who started the chain back in 1998 in Malaysia. Franchise enquiries, even from Singapore have been flooding in from everyone who saw the chance to milk the popularity of the concept. The bun's popularity across the Causeway was a major draw to investors in Singapore.

Those in Singapore can now satisfy your craving anytime as Rotiboy has now come to Singapore. Operating from a shopfront at the China Square Food Court since about 3 months ago, Rotiboy is already drawing in the crowds. Plans have been in place already for expansion to the bigger stall next door at China Square, with a second outlet to open at Raffles Place and more to come by next year. Business Ideas Indeed, Rotiboy's steamroller success has drawn in more than one competitor eager to sniff out profits and jump on the dough bandwagon. Similar products have sprung up in the market, with local Roti Mum Pte Ltd opening just last December at IMM building. This phenomenon has triggered our thoughts of plan.

It will be profitable us to use this business idea and to produce similar product. Since the market share is too big for them to digest, we will be able to target at the same segment of customers as RotiBoy. Perhaps we can target on consumer who is more cost sensitive e.g. middle-age housewife... etc. Under the 4 "P"s, we will choose to concentrate mainly on the Product and Price factors. For product, we will use common recipe which is highly possibly used by RotiBoy as Rotiboy is actually a Mexican bun which is commonly found in Mexico. With the widely used recipes, we can produce similar product as compare to RotiBoy.

The most important factor to be taken is the taste and aroma of the bun. Firstly the bun must taste delicious and must have a strong coffee's smell which will indeed attract the patrons. For price, we will set our selling price lower than what Rotiboy is offering now in order to switch consumer's brand preference. If the product has the same taste as Rotiboy and costs lesser, consumer will rather go for a cheaper range of similar product. Moreover, there is a high demand for Mexican buns in Singapore now. Although there are opportunities for us to make a profit out from it, however there is some risk involved.

The risk for copying others' idea is relative high in long run if there are too many copycats competing for same share of pie. Lesson can be learnt from similar case like the fad of Taiwan Bubble Tea in 2001. This particular business's idea collapses when there are too many copycats blooming up after its initial success. For our business plan, we will set up similar concept as RotiBoy since this fad just arises. We will set up our store as soon as possible so that we can be one of the few pioneers who sell the Mexican Bun. Despite of using their business idea, we will differential ourselves from others by the name of our buns.

We will name it as FCB - Fantastic Coffee Bun. Our Bakery Shop Our bakery shop will be set up in a simple designs layout as we are focusing only on our products and services. We will start off with 1 outlet initially and based on the results, we will decide on whether to continue with our business for the long run. For our labor management, we will employ 1 baking hand, 2 kitchen helpers, 2 front shop assistants and a cashier for the entire whole operation. It is unnecessary for us to invest too much on advertising and promotion as we are competing against competitors with our selling price. Although our buns are no difference from others, we aim to differentiate ourselves with our excellence services and low selling price in order to compete for more market shares.

For our case, we are concentrating on a single product, that's Roti Baby. We are not taking a risk for focusing on only one type of product as now Mexican bun is very popular and we are taking this opportunity to 'Hit and Run" in short run. Our bun will be 100% freshly home baked and we will not retain any unsold buns overnight. Due to the economy downturn, most of the people are still affecting by the impact. Now though the economic is slowly improving, however consumers are still price sensitive. As our store involve a low production cost, we can set our selling price lower than what is being offer outside the market.

As you can see in all the RotiBoy shop, people are in a very long queue to buy the RotiBoy. We believe that people will be attracted over to another shop if other places are offer the same product which cost cheaper and consumer do not have to queue up so long in order to purchase the desire product. Budget Monthly Operating Income $15,000 / month Production Capacity Maximum Capacity 2430 unit / day Maximum Capacity 63189 unit / month Sales Forecast Target to sale 1,800 bun per day Target to sale 46,800 bun per month Set a sales forecast as this quantity is due to others brand can sales about 1500 of buns with their selling price $1.2, to attract more consumer, we will produce in better quality, provide better service with lowest price, so with target to sales 1800 buns per day is a logical aim. Selling Price Selling price will set as $0.9 to get a budgeted monthly operating income of $15,000 with monthly sales for cast is 46800 buns.