Whistle Blowing Theory And Whistleblowers Protection

Whistle Blowing Theory And Whistleblowers Protection The aim of this paper is to present the theory of whistleblowers protection, analyze the mechanisms for protection that surrounds it and draw out recommended whistle-blowing protection for Republic of Macedonia. It will start with presenting background theory for whistleblowers protection and define the main concepts of this theory such as who are the whistleblowers, what it means and when does it occur, and what are the most commonly used mechanisms for protection of whistleblowers usually included in policies. The paper will furthermore, analyze the basic mechanisms of protection such as anonymity, immunity from legal action, and protection against reprisal which are often referred to as basic whistle-blowing protection, and further mechanisms such as relocation or transfer, reinstatement and back pay. These mechanisms will then be compared to the legislation in Macedonia. The final part of this paper will conclude with recommendations drawn out from these analyses for a whistleblowers policy protection that might be adopted by the Government in Macedonia. WHISTLEBLOWING Whistle-blowing is a term that has been used a lot in the media to present different cases of wrongdoing and stress the importance of these cases for the public welfare. In this part of the paper we will look at the concept behind whistle-blowing and what this means through several different definitions that have been used in this theory or definitions that support the understanding of the author of this paper. Furthermore, we will define the term whistle-blower and whistleblowers protection and several cases of whistleblowers will be presented in order to present the importance of this protection. The term whistle-blowing comes from different origins. The general understanding that underlines the origin of this term usually derives from the action of whistling as an act of signaling. In these terms, Miceli and Near make a parallel of the act of blowing the whistle in a corporation or government, and the whistling of a football referee. By comparing whistle-blowing with an official on a playing field, such as a football referee, who can blow the whistle to stop action, they refer to the whistleblower as someone who whistles to stop wrongdoings (Miceli and Near 1992, 15). Similarly Deiseroth, ties the term whistleblower to the Englishbobbies(policemen), who would blow their whistles when they would notice the commission of a crime (International Network of Engineers and Scientists for Global Responsibility 2009). All of these imply that whistle-blowing as an act is related to signaling wrongdoings. Before going into explanation of who are the whistleblowers and what is the impac t of reporting wrong doings, we will look at the theory that defines the concept of whistleblowers and whistle-blowing as an act. According to Larmer, whistle-blowing is the act of complaining, either within the corporation or publicly, about a corporations unethical practices (Larmer 1992, 126). De Maria in his book Deadly disclosures: whistle-blowing and the ethical meltdown of Australia defines whistle-blowing as a public exposure of wrongdoing (De Maria 1999, 32) and as an ethical resistance against the usually protected existence of wrongdoing (De Maria 1999, 34). Whistle-blowing is also defined as the disclosure by organizations members (former or current) of illegal, immoral, or illegitimate practices under the control of their employers, to persons or organizations that may be able to effect action (Near and Miceli 1985, 4). In addition to these definitions Jubb looks at whistle-blowing in a broader range and defines it as dissent, in response to an ethical dilemma, in the form of a public accusation against an organization (Jubb 1999, 79) and in the more narrow terms defines it as: a deliberate non-obligatory act of disclosure, which gets onto public record and is made by a person who has or had privileged access to data or information of an organisation, about non-trivial illegality or other wrongdoing whether actual, suspected or anticipated which implicates and is under the control of that organisation, to an external entity having potential to rectify the wrongdoing (Jubb 1999, 79). As it can be understood from the provided definitions of whistle-blowing, we can conclude that the concept of whistle-blowing is mainly defined as a concept that involves reporting of ethical wrongdoings which affect the public in the society. Now that we have underlined the origins and the act of whistle-blowing, we turn to identifying who is the whistle-blower and why there is a need for a whistleblowers protection. De Maria defines whistleblowers as: a concerned citizen, totally or predominantly motivated by notions of public interest, who initiates of his or her own free will, an open disclosure about significant wrongdoing directly perceived in a particular occupational role, to a person or agency capable of investigating the complaint and facilitating the correction of wrong doing (De Maria 1995, 447). At the same time, Miceli and Near define the whistleblowers as present or past member of an organization against which the complaint is lodged (Miceli and Near 1992, 16). The definitions given above imply and confirm the idea given in Jubbs more narrow definition of whistle-blowing about possessing inside knowledge about an organization regarding different wrongdoings of the organization or skeletons in their closets. They also stress the importance of whistleblowers in the act of revealing wrong doings in the public sector or the organizations. Additionally, the provided definitions of wrong doings also stress the importance that these acts often refer to information in possession of the whistleblowers gained in the period of employment with the public sector or given organization, which deals with illegal or un-ethical acts. Unfortunately when information is leaked very often the question within the organizations according to Frome is not Is it right or wrong? but Who leaked it? (Frome 1978, 53). In many cases such as these, when this information is exposed to the public, the whistleblowers are fired, repressed or in some extreme cases even assassinated. Such is the case of Marlene Garcia Esperat who was killed for her exposà © on graft and corrupt practices (Espejo 2006) in the Philippines Department of Agriculture in 2005. Similar is the case of Satyendra Dubey who brought up the corruption in the highway construction in India and was assassinated in 2003 year after he complained to Mr Vajpayee and the road network authorities (BBC News 2003), and the case of Manjunath Shanmugam, who brought up to attention the corruption in the gas industry in India and was murdered for exposing an adulteration racket in Lakhimpur in 2005 (News, Daily News Updates 2009). Even thought the cases presented above represent extreme situations, they stress the importance of having policies that will offer whistleblowers protection. The protection in these terms is provided through the several mechanisms brought up at the beginning of the paper, namely the anonymity, immunity from legal actions, protection against reprisal as well as relocation, reinstatement and back pay. Basic protection Anonymity Whistleblowers are in some cases reluctant to blow the whistle. This can be a result of many factors, some of which include the fear of their safety, the seriousness of the information that they are in possession of, and some factors may include the fear of unfair retaliation. In these cases whistleblowers may choose to stay anonymous. However even thought some of these factors can be into play anonymity not always can be guaranteed, especially in cases as defined by Elliston when the anonymity impedes the pursuit of truth (Eliston 1983, 174). One way of establishing anonymity is by introduction hot lines in the organization, but has to be taken into account that this may come as a conflict in smaller organizations. Immunity from legal action This shield refers to the immunity from legal actions for the whistleblowers. In the most simplified meaning this reflects to situations when the whistleblower may be given immunity from criminal prosecution in exchange for their testimony. The Justice Department of Australia in a discussion paper on Public interest disclosures states that person that discloses information about wrong doing will not be liable for any action, claim or any other demand of whatsoever nature including for breach of statute, criminal offence, defamation, breach of confidence, misconduct or other disciplinary offence (Tasmanian Department of Justice 2000). However, it needs to be noted as well that immunity from legal actions is also not always guaranteed. For example, a person can not be given immunity if the wrongdoings that are reported have been carried by from the person that is reporting them. Protection against reprisal Protection against reprisal is seen as critical by Near and Dworkin because it signals organizational support for the reporting of wrongdoing (Near and Dworkin 1998, 1560). These authors point out that an organization that does not treat its employees fairly under other circumstances would seem more likely to retaliate against whistleblowers than would an organization that is seen as fair (Miceli and Near 1992, 217). Considering the above, whistle-blowing protection policies usually define certain actions that are taken against individuals that are attempting or conspiring to cause harm to the whistleblower. Further protection Relocation or transfer Relocation, which sometimes is tied to anonymity, is an additional mechanism of the whistleblower protection that provides relocations or transfers to another department upon a request of the person that blows the whistle. In cases when the identity of the whistleblower is keep anonymous this protection is not necessary, whereas in cases of knows identity additional protection is provided by relocating the whistleblower. In other cases, the whistleblower if he has concern about his safety, he can again request for relocation or transfer. It needs to be taken into account that considering this protection will most probably vary on a case to case basis. The South Australian Whistleblower Protection Act 1993 states that if whistleblowers feel that a reprisal might arise from their actions of reporting wrongdoings, they can request for relocation on the basis that the only practical way to remove or substantially remove the danger (South Australian Whistleblower Protection Act 1993). Remedies Reinstatement The reinstatement with the whistleblowers protection usually falls under the categories of remedies. Within this category reinstatement should be provided in order for the whistleblowers to continue his career. Kohn states that one of the goals of reinstatement is to restore the employee as nearly as possible to the position he or she would have been in if the discrimination has not occurred (Kohn 2001, 331). Furthermore, he states that reinstatement after a person has blown the whistle is sometimes nearly impossible especially when it comes to finding comparable work in the same industry (Kohn 2001, 330). In has to be taken into account that for most of the whistleblowers the issue of having a job comes first and foremost from the fundamentals of the benefits that one gain in terms of income. Therefore, the protection to the whistleblowers by providing reinstatement can be seen as having crucial importance to the whistleblowers themselves. Lewis in his article on whistle-blowing at work also points out to the importance of having reinstatement provided by saying the where workers have lost their jobs they should also have the option of choosing reinstatement or re-engagement (Lewis 2001, 193). Back pay According to Kohn, back pay serves to vindicate the public policy behind a wrongful discharge statute, at acts as a deterrence to future unfair labor practices, and it serves to restore the injured employee to the same status quo as would have existed but for the wrongful act' (Kohn 2001, 332). These serves to provide the whistleblower with further protection on the basis of compensation; however the limitation of the back pay is that it is difficult to approximate the amount that the person would have earner have he or she stayed in the organization. Kohn states that back pay awards are continues and are concluded once the employer makes unconditional offer of reinstatement (Kohn 2001, 333). After we have looked at the whistle-blowing concept and the protection that is proved to whistleblowers, we need to take a look at the legislation in Macedonia to see what kind of protection is offered, if any. Furthermore, we will continue with recommendations for whistle-blowing protection that the Government of Macedonia might consider to implement in future whistleblower policies. Article 38 from the Law on free access to information of public character in Macedonia states that: Any responsibility shall be removed from an employee within the state administration that shall disclose protected information, in case such information be of significance for the disclosure of abuse of power and corruptive behavior, as well as for the prevention of serious threats to human health and life and the environment (Law on free access to information of public character 2006). In addition to this article, Article 20 from the Law on prevention of corruption in Macedonia provides that: A person who has disclosed information indicating an act of corruption may not be subject to criminal prosecution or to any other liability; protection according to the law shall be provided to a person who has given statement or has testified in a procedure for an act of corruption. This person shall have the right to compensation of damages, which he/she or a member of his/her family has suffered, due to the statement made or testimony given (Law on prevention of corruption 2002). These two articles from the legislation in Macedonia provide some legal protection to whistleblowers, however they do not protect the whistleblower fully. Article 38 from the Law on free access to information of public character in Macedonia states that person that would disclose information about wrong doings will be removed from responsibility, however the article does not define this responsibility and whether it refers immunity of legal prosecution. In addition, Article 20 from the Law on prevention of corruption limits the disclosed information only to acts of corruption, and similarly to the previous article again it does not define the protection of the whistleblower in a way that no further information is given about the form of the compensation of damages. The following section of this paper provides the recommendation for an ideal whistleblowers protection and gives a recommendation on which of the measures or as we called them shields should be taken into consideration and drafted in a law by the Government of Macedonia. RECOMMENDATIONS In terms of anonymity, the author of this paper feels that it needs be taken into account that people sometimes choose not to blow the whistle when they consider this action to be vain. In addition to this, Miceli and Near point out that people sometimes dont want to take the time to make a report (Miceli and Near 1992, 42). They furthermore stress that even thought guaranteed anonymity may reduce this bias to some extend, it does not address the other problems (Miceli and Near 1992, 42). Having said this, the author of this paper believes that further devolvement in policies that would address biased situation should be well and explicitly developed in the whistleblowers protection. Recommendations on immunity refer closely to the discussion earlier about the Law on free access to information of public character in Macedonia and the need to clearly identify the removal of responsibility when disclosing wrongdoings and whether it refers to immunity of legal prosecution. The whistleblowers protection should include actions for people that are attempting or conspiring in order to carry out reprisal over the whistleblower. These actions should include legal and disciplinary actions if a person engages in acts that would personally harm or threaten the safety of the whistleblower, would engage in acts of property damage or loss, intimidates, decreases level of employment and similar activities that might harm the white-blower. The author of this paper believes that in terms of relocation or transfer, a recommendation for an ideal policy for whistle-blowing protection aside from the relocation and transfer should consider expanding this protection in a way that would provide as well leave of absence in case when no relocation or transfer is available at the moment. This in addition to the relocation and transfer shield would provide more efficient protection when there is any chance that the person blowing the whistle might be reprised. The whistleblowers protection should clearly define reinstatement and back pays protection. In terms of reinstatement, it needs to be noted in the legislation that reinstatement must be to a comparable job (Kohn 2001, 333). The protection should clearly defined the process of back pay awards and if this process can last continuously until reinstatement of the employee has been brought up on the agenda of the employer. Further considerations might be given in defining the process of calculation in terms of time. This would imply that back pays can be calculate on quarterly basis which would imply that employees interim earnings in one particular quarter have no effect on back pay liability for another quarter' (Kohn 2001, 333), or they can be calculated on periods of six months which would reflect the current situation in Macedonia where usually no significant changes are seen in terms of promotions or raise on salary on shorted periods. In conclusion, the articles provided in the legislation of Macedonia referred to some degree to immunity from legal action and to payment of damages to the whistleblowers as a result from inflicted damages from a given testimony. Thus, a whistleblowers protection is recommended that would give clear understanding of what constitutes a person that discloses wrongdoings, the opportunity for anonymity, reinstate or transfer as well as definitions of remedies that would follow these actions. Second and most important due to the effort of the Government of Macedonia to fight with corruption having a clear and well defined whistleblowers protection drafted in law that might lead to more rapid improvements when fighting and prevention corruption. REFERENCE LIST BBC NEWS. 2003. India probes whistleblower murder. BBC NEWS, December 15, http://news.bbc.co.uk/2/hi/south_asia/3320011.stm (accessed November 29, 2009). Deiseroth, Dieter. 2009. What is whistle blowing? International Network of Engineers and Scientists for Global Responsibility. http://www.inesglobal.com/index.php?whistle-blowinghighlight=Dieter%20Deiseroth (accessed November 29, 2009). De Maria, William. Deadly Disclosures: Whistleblowing and the Ethical Meltdown of Australia. Kent Town, S. Aust: Wakefield Press, 1999. De Maria, William.1995. Quarantining dissent: the Queensland public sector ethics movement. Australian Journal of Public Administration 54(4): 442 455. Elliston, Frederick A. 1982. Anonymity and Whistleblowing. Journal of Business Ethics 1(3):167-177. Espejo, Edwin G. 2006. The Esperat murder case: Justice at last but no end yet. Sun.Star General Santos, October 09, http://www.sunstar.com.ph/static/gen/2006/10/09/feat/the.esperat.murder.case.justice.at.last.but.no.end.yet.html (accessed November 29, 2009). Frome, Michael. 1978. Blowing the Whistle. The Center Magazine 11 :50-58. Johnson, Roberta Ann. Whistleblowing: When It Works and Why. Boulder: L. Rienner Publishers, 2003. Jubb, Peter B. 1999. A Restrictive Definition and Interpretation. Journal of Business Ethics Vol. 21, no. 1 (August). http://www.jstor.org/stable/25074156 (accessed November 29, 2009). Kohn, Stephen M.Concepts and Procedures in Whistleblower Law. Westport, Conn: Quorum Books, 2001. Larmer, Robert A. 1992. Whistleblowing and Employee Loyalty. Journal of Business Ethics Vol. 11, no. 2 (February), http://www.jstor.org/stable/25072254 (accessed November 29, 2009). Lewis, David. 2001. Whistleblowing at Work: On What Principles Should Legislation Be Based? Industrial Law Journal 30, no. 2, http://ilj.oxfordjournals.org/cgi/reprint/30/2/169 (accessed November 29, 2009). Miceli, Marcia P., and Janet P. Near.Blowing the Whistle: The Organizational and Legal Implications for Companies and Employees. Issues in organization and management series. New York: Lexington Books, 1992. NDTV News India. 2009. News, Daily News Updates, November 10, http://birlaa.com/news/remembering-manjunath-killed-for-honesty/10000 (accessed November 29, 2009). Near, Janet P., and Marcia P. Miceli. Organizational Dissidence: The Case of Whistle-Blowing. Columbus, Ohio: College of Administrative Science, Ohio State University, 1985. Near, Janet P., and Terry M. Dworkin.1998. Responses to Legislative Changes: Corporate Whistleblowing Policies. Journal of Business Ethics 17, no. 14 (October), http://www.jstor.org/stable/25073989 (accessed November 29, 2009). Official Gazette of the Republic of Macedonia. 2002. Zakon za sprecuvanje na korupcijata (Law on prevention of corruption) 28/02. Official Gazette of the Republic of Macedonia. 2006. Zakon za sloboden pristap do informacii od javen karakter (Law on free access to information of public character) 13/06. South Australian Government Gazette. 1993. Whistleblower Protection Act 16.9/93. Tasmanian Department of Justice. 2000. Public Interest Disclosures. Discussion paper. http://74.125.77.132/search?q=cache:8G4kPPC9a18J:www.justice.tas.gov.au/__data/assets/word_doc/0008/55556/Discussion_Paper_Final.doc+%22Immunity+from+legal+action%22+whistlecd=3hl=enct=clnk. (accessed November 29, 2009).

Freak the Mighty and The Mighty compare and contrast

Freak the Mighty and The Mighty and both known by many. One is a book and the other is a movie based on the book. Although they can relate to each other this book and movie both are unique in their own ways. One similarity of these pieces of art is that the chapters match up. Max’s childlike chapter titles are very much incorporated in the movie. For example, chapter 6 of the book â€Å"Close Encounter of the Turd Kind† is narrated in the movie. In addition, Killer Kane comes to the down under just as expected after the chapter title â€Å" What Came Down the Chimney†.Also, when Grim gets a gun Max hears the wretchedly loud conversation his grandparents had that he is not supposed to hear, just like in the book. Furthermore, the tone set by Rodman Philbrick is undeniably there considering the execution of the suspenseful scenes, i. e. when Kevin starts choking on american chop suey and when Max is throwing things in frustration when he learns his father is on par ole. While these similarities show what these pieces have incommon Freak the Mighty and The Mighty still have differences that make them distinctive.Although the characters have the same names, I have got to say there appearance was definitely incorrect. In the book Max was said to be 7 feet tall, while Kevin was said to be 2 feet tall. In the movie Max was about 6 feet and Kevin was the height of an average 6th grader at Eldorado K-8 ( about 4†6’). Kevin was supposed to have blond hair and blue eyes ( the movie gave him brown eyes and brown hair) while Maxes appearance was not clear in the book. Additionally, in the book, Kevin and Max seemingly lived in suburbia while the movie gave the impression they lived in much more of a city.For example, the old testaments seemed much bigger and better-looking than described in the book ( broken toys and ragged and dirty children who seemed a little broken themselves). The minor problem in plot detail is a third difference. In t he movie, Kevin is apparently Max’s LD (learning disabled) reading tutor. In the book there is no mention of tutoring that went on between the boys in school. Without a doubt, Freak the Mighty and The Mighty remain comparable by their names and who the story was inspired or written by, but these pieces are individual works of art with varying traits.

Fresin Fries Bussiness Plan

Company Summary What is Fresin Fries? Fresin Fries sells  gourmet fries in a cone  with a   choice of sauce. We use the concept of Belgian Fries, where the fries are all made from fresh potatoes and fried twice. Our outlet also provides excellent and friendly customer service to support the ambience of fun, energetic and youthful lifestyle. Youthful and fresh surroundings We will imitate  successful establishments, such as Jamba Juice and Starbucks, which represent the majority of our core target market, between 18 to 35 years of age. Our store will feature display cooking of our featured Belgian Fries from cutting to frying. Our customers will also be able to read our in-house brochures in regards to all knowledge about Belgian Fries and our featured sauces. Our store will be decorated with fast food setting, such as a bright counter and display menu on the wall. Quality food Each  store will  offer nothing but freshly fried Belgian fries, sandwiches and variety of unique blend sauces, all served with old-fashioned home-style care. Open everyday Our store is open everyday from 10 am to 9 pm. Variety, variety, variety A different selection of sauces will be featured every three months and we will also change our Italian soda flavors to accompany our fries. . 1 Company Ownership Fresin Fries is a privately held company. It will be registered as a Limited company, with ownership 25% – Guy Fry, 25% – Sam Sauce, 25% – Carl Cone, 25% – Harry Hip. Guy Fry and Sam Sauce have more than 10 years of experience in the food industry. Both are currently employed as Corporate Staff of Co mpany A. Sam Sauce holds an MBA degree from University V. A true entrepreneur by heart, his latest entrepreneurial project is a diamond store in the heart of Singapore. Guy Fry holds a BA degree in Graphic Design from the Academy of Arts. His projects are widely varied from product design to brand development of several reputable companies. Harry Hip holds a MS degree from Institute Y. He completed several projects and served as project manager for multi-national companies in Singapore. Carl Cone holds a BS degree from University Z, majoring in Management and Information Technology. Prior to his return to Singapore, he has held several management positions in a U. S. -based IT company. 2. 2 Start-up Summary The retail outlet will be rented at one of the target location shopping malls. Our preference is Space A, for the main reason of reaching larger traffic. Startup requirements will be financed through owner investments. [pic] [pic] [pic] |Start-up | | | | |Requirements | | | | | |Start-up Expenses | | |Kitchen and Fixtures |$21,600 | |Furniture and Interior |$16,500 | |Legal |$3,000 | |Rent |$15,000 | |Packaging and Stationary |$8,500 | |Contingencies |$4,200 | Total Start-up Expenses |$68,800 | | | | |Start-up Assets | | |Cash Required |$50,000 | |Other Current Assets |$0 | |Long-term Assets |$0 | |Total Assets |$50,000 | | | | |Total Requirements |$118,800 | 2. 3 Company Locations and Facilities Fresin Fries locations will range in size from 50 – 70 meter square and will seat from  15 –  25 guests. Our first location will be on the larger end of this range. The location will feature its own originality in merchandise display and other brand building attributes. We will equip the outlet with modern furniture and  aim for  cleanliness  and an  open feeling. We are currently looking at several possible sites in shopping malls along Orchard Road. The space selection will be chosen based upon the following criteria: †¢ Community size: minimum of 800,000 people within a radius of 8 kilometers. †¢ Tourist destination. †¢ Easy access. †¢ Large percentage  of teenagers in the community. All of these qualities are consistent with Fresin Fries' goal of providing a top quality fast food experience. We want â€Å"word-of-mouth† to be our best form of marketing, where our customers value our brand as something exciting and cannot wait to tell their friends and neighbors. Fresin Fries will directly compete with several fast food joints inside the chosen shopping mall,  including Tori-Q (yakitori specialist), Bee Che Hiang (chinese sausages), Bread Talk (one of the most successful bakery franchises), and Pizza Walker (locally owned pizza chain). Products We want to focus only on selling fries. Alcoholic drinks will not be sold in our outlet, as Fresin Fries promotes a healthy and positive Singaporean lifestyle. Instead, we will offer Italian Soda  to complement the fries. In promoting  the  Fresin Fries  lifestyle, we will offer various merchandise  with our logo and colors, from hats to t-shirts to potato cutters to our signature sauces, so that our customers can enjoy Fresin Fries at home. Our signature sauce is exclusively manufactured by Company Q. They can be also purchased at selected retailers. 3. 1 Product Description Fresin Fries primarily sells fries and our  unique dipping sauces. Main products sold are: Belgian fries, Italian sodas and corporate merchandise. Belgian-style fries are available in large (choose 2 dips), small (choose 1 dip), with addition of garlic Fresin (add S$0. 25). The dips for Belgian style fries can also be served with sandwiches; they  are available in more than 20 flavors: †¢ Pesto Mayo †¢ Satay Sauce †¢ Teriyaki Sauce †¢ Thai Chili Ketchup †¢ Creamy Wasabi Mayo †¢ Roasted Pepper Mayo †¢ Lava Cheese †¢ Black Pepper Sauce †¢ Curry Ketchup †¢ Barbecue †¢ Jalapeno Ketchup †¢ Caribbean Islands Traditional Sambal †¢ Korean BBQ †¢ Hot Chili Sauce †¢ Garlic Dip 3. 2 Competitive Comparison Fresin Fries has several advantages over its leading competitors: †¢ Unique â€Å"fusion† concept of dipping sauce. †¢ We expect a high degree of enthusiasm and offer a fun store with friendly staff , that reflects the company's youthful and energetic culture. †¢ Supporting merchandise items that support the company's brand building. †¢ Our fried potato is made 100% fresh, compared to most fast food outlets that use frozen fries. †¢ Our dipping sauce is also made fresh without preservatives. Our innovative packaging will be more entertaining than our competitors; a single cone with a cup reserved for dipping sauce. |Company | | | |2005 |2006 |2007 |2008 |2009 | | |Potential Customers |Growth | | | | | |CAGR | |Young Singaporeans |15% |5,000,000 |5,750,000 |6,612,500 |7,604,375 |8,745,031 |15. 00% | |Working Singaporeans |10% |3,000,000 |3,300,000 |3,630,000 |3,993,000 |4,392,300 |10. 0% | |Tourists |20% |3,800,000 |4,560,000 |5,472,000 |6,566,400 |7,879,680 |20. 00% | |Total |15. 52% |11,800,000|13,610,000|15,714,500|18,163,775|21,017,011|15. 52% | 4. 2 Target Market Segment Strategy Fresin Fries intends to cater to the bulk of teenagers and youngsters in Singap ore. We have chosen this group for several important reasons. It is our goal to be â€Å"the extraordinary fast food place† and we believe that the age group from 15 to 25 is the primary age where brand building efforts could take place. They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets. Our secondary target is  between the ages of 25  and 37, which are a heavy lounge/restaurant user group. They are more flexible in budgets and seek more than a value/price relationship. Our lunch strategy is dual purposed. First, we are featuring fresh fries to fill Singapore's craving for fast food as most ideas of lunch is a quick bite not a heavy meal. Second, we want to keep the price point at lunch as fair as possible to keep us in competition with other fast food outlets. At S$4. 00 for a medium size fries, we are only slightly above the segment, but we offer much more excitement than the rest of the competition. 4. 2. 1 Market Needs Fresin Fries sees our targeted market group as having many â€Å"makan† (eating) Singaporean Dollar needs. A recent Consumer Trend and Analysis by Euromonitor identified the following needs among our target markets. Our core group: †¢ Wants variety and flavor in its food, preferably something fried †¢ Looks for speed of service †¢ Wants an entertaining and fun experience Insists upon a clean, friendly, and attractive environment †¢ Adopts a global lifestyle †¢ Is computer literate †¢ Enjoys eating out †¢ Has an active lifestyle †¢ Comes from various ethnic backgrounds According to a GAIN Report published in 2000, potatoes are  the second largest commodity of US exports to Singapore after fresh fruit, valuing almost USD $13 million per annum. This is caused by the increasing ly younger demographic and rising incomes throughout Singapore that have led to lifestyle changes that are influencing consumer purchases, food, and entertainment choices. Some changes taking place include a larger professional class with more working women,  which means greater disposable incomes. 4. 2. 2 Market Trends In the past, Singaporeans preferred Western chain restaurants. This was the time when KFC, McDonald's, Long John Silver's  and Pizza Hut were dominating most of the chains. But the trend seems to have shifted in the last decade, with the success of the locally grown brands, such as Bread Talk and Bee Che Hiang. Many of these local brands grew to become  giant franchises  that dominate the Southeast Asia region. For instance, Bread Talk controls 55% of Indonesia's bakery market. The key to success for these foreign chains was mainly due to the popularity of Singapore as tourist destination for these countries. Tourists are the strongest â€Å"buzzer. † Usually after  they went back from vacationing in Singapore, they told friends and families about new things in Singapore, including new shopping malls, new boutiques, new restaurants, and new fast food joints. The fascination of Asian tourists coming to Singapore has positioned the city itself as an aspiration to modern life in the region. Many local entrepreneurs camouflaged their retail stores as an international brand in accordance to what they sell. For instance, there is a local entrepreneur who created a Japanese name to sell yakitori (Japanese BBQ meat skewers), and there is a fashion boutique named after an old Italian movie. 4. 3 Industry Analysis Despite the prolonged effects of the Asian Economic Crisis followed by political turmoil up to mid 2001, Singapore's food service industry witnessed growth over 2000/2001 at 4  Ã¢â‚¬â€œ 5% in terms of units and transaction (Euromonitor). Much of this growth was contributed by the cafes/bars, fast food, and food retail sectors, whose wide appeal amongst a young population, for whom time is of a premium, led to high levels of growth. This growth is underpinned by market demand and lifestyle changes, such as seeing eating out as part of trendy lifestyle. Entry of major multi-national food service operators into major shopping destination in the late 1980s until the 1990s led to growth in competition in the marketplace, mainly from fast food chains. This stimulated the rise in the number of fast food units, both of international  and local chains, that started in the early 1990s. Although there was a  slowdown during the economic crisis in 1998,  the food service industry  recovered faster than others, particularly during 2000 and 2001. Recent bombing tragedies have also proven that  negative effects on this sector  are moderately short-term. Franchising became popular in the food service industry through the introduction and entry of multi-national food service brands, primarily U. S. -owned enterprises, such as KFC, Pizza Hut and McDonald's. Currently, there are many local chains that have also experienced growth by applying this system to their operations. 4. 3. 1 Trends in Food Service Retail According to government surveys, Singapore's spending on â€Å"eating out† is continuing to increase. Spending on cooked food as a percentage of total average food-spend reached 55% in 1998. The growth in spending in the food service sector arises from a number of factors: †¢ Increased affluence amongst Singaporeans, especially those under the age of 40 years. †¢ Increases in the number of expatriate residents, which has more than doubled since 1988. †¢ Increased convenience-seeking amongst younger Singaporeans who live in a hectic city today compared to the much slower pace of life that existed 20 years ago. When they want convenient cooked food, Singaporeans have long turned to the local hawker stalls, rather than prepared ready-to-cook or ready-to-eat processed convenience foods. As the numbers and variety of food service outlets has increased in Singapore, locals have adopted the convenient products of other food service outlets, especially the fast food outlets, as alternative sources of convenient cooked food. Younger middle and upper income group families and individuals are also frequent users of the full service restaurants, modern-style coffee shops and cafes that now exist all across Singapore. Over the past 5 years, there has been a general upgrading in the food service sector which has seen the establishment of more air conditioned food centers (food courts) that are considerably cleaner than the traditional hawker markets. At the same time, increased investment from foreign and local businesses in the sector has also produced an increase in the numbers of: †¢ Foreign chains, including chains such as Outback Steakhouse. †¢ Modern retail bakery/cafe outlets such as Bread Talk. †¢ Modern coffee shops such as Starbucks. 4. 3. 2 Competition and Buying Patterns The competition in this arena is the fiercest  in all  other metropolitan areas in SE Asia. Singapore is a compact city, but has a lot to offer. Usually there are a minimum of two of the same outlets within  a radius of less than 300 meters. For instance, Bread Talk opens one outlet inside the Ngee Ann City Shopping Centre and another just across the street inside the Far East Plaza Shopping Centre. It is quite common for retailers to implement this kind of strategy, due to the high volume of people strolling around the main area of Orchard Road. Another reason is because many retailers do not want to lose sales opportunity, as the competitors are offering substitutions and similar product categories. This phenomenon has made Singapore the best place to shop. If you just missed Haagen Dazs waffle at CK Tang Shopping Mall, there is another Haagen Dazs across the street at the new Paragon Shopping Centre. 4. 3. 3 Main Competitors Our main competitors in this segment are any food outlets within the 300 meter radius along the Orchard Road. In our location, there are Tori-Q, Pizza Walker, Starbucks, Bread Talk, and Rotiboy. Tori-Q Tori-Q is locally owned franchise who sells Japanese BBQ skewers. Established in 1998, Tori-Q had expanded its operation into neighboring countries, Indonesia, Malaysia, and Thailand. Tori-Q is popular among local teenagers as it offers fast service to its customers. Commonly, Tori-Q outlets are rather small,  and can only serve a maximum of 6 guests. It is a choice for those who are in a hurry and would like to grab a quick lunch on the way. Pizza Walker Pizza Walker is a joint venture positioned as gourmet pizza joint in Singapore. Most of its retail outlets are decorated with welcoming ambience, such as flowers and see-through kitchens. Pizza Walker is a good place to hang out, and the place is always full during lunch hour. It has more than enough tables to serve a maximum of 55 guests. Its specialty is all-you-can-eat pizza! Starbucks Starbucks' strategy entering the lunch market had made some impact in Singapore. Usually, a lunch menu in Singapore consists of â€Å"fried and BBQ stuff† such as roast pork with rice or the Big Mac. Starbucks is one of the first food retailers that popularized â€Å"light and healthy† alternatives such as salad or lean sandwich as an options for Singapore's lunch accommodations. Bread Talk As the most successful franchiser in Singapore, Bread Talk is surely becoming a threat for most food retailers. Bread Talk not only rented most of the retail space along Orchard Road, but now they are doing delivery to offices and apartments nearby. Bread Talk outlets usually consist of a huge see-through kitchen, and bread trays ready for pick-up by customers, with three or four cashiers at front, to speed up the queue. Rumor has it that Bread Talk sold more than 35,000 breads each day in just one of their retail outlets. Rotiboy A Malaysian franchise. Rotiboy is quite popular in the region as it is now expanding into several cities in Indonesia, Vietnam, Thailand, and the Philippines. Rotiboy offers simplicity for quick lunch franchiser, and often considered alternatives for its long queueing rivals. 4. 3. 4 Foreign Vs. Local Franchising Around 40% of the franchises operating in Singapore are foreign. Home grown franchises are still in their maturing stages as they start to expand globally. Franchises from the U. S. account for 65% of foreign brands, with big players such as KFC, Starbucks, Pizza Hut, etc. Due to high capital investment, Singapore conglomerates tend to dominate the industry. Home grown franchises are more  often sought more by young entrepreneurs than  are their Western counterparts, as  they offer greater flexibility and lower franchise fees to operate. Unlike Western license holders, home grown franchises  are more efficient in the overall supply chain management as the basic raw ingredients are commonly found anywhere in the region. Strategy and Implementation Summary At first, we will open one outlet inside the New Paragon Shopping Centre. This will become our â€Å"market testing area,† and as we go further, Fresin Fries is planning to open another in nearby shopping malls. In attracting customers to try our fries, we will provide a see-through kitchen, so that people will see how we are committed to freshness in our products. The kitchen will also let out an aroma of our freshly fried fries into the surroundings area, so that people will come and try our products. 5. 1 Competitive Edge †¢ Our unique dipping sauces blend local taste and international into one fusion recipe for the signature sauce. Enthusiastic and friendly staff †¢ Supporting merchandise items that support company's brand building. †¢ Our  fries  are made of 100% fresh potatoes, unlike the frozen fries used by competitors. †¢ Innovative packaging will position us at the same level with foreign fast food franchises. 5. 2 Marketing Strategy Our strategy is based on serving our markets well. We will start our first outlet a s a â€Å"market tester† that could become a model of the expanding number of outlets in the future. Concentration will be on maintaining quality and establishing a strong identity in the local market. A combination of local media and local store marketing programs will be utilized at each location. Local store marketing is most effective, followed by print ad. As soon as a concentration of stores is established in a market, then broader media will be explored. We believe, however, that the best form of advertising is still â€Å"buzz. † By providing a fun and energetic environment, with unbeatable quality at an acceptable price in a clean and friendly outlet, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan. We will actively build our brand, through the selling of supporting materials, such as merchandise, promotional items and other marketing gimmicks similar to those of other fast food franchises. 5. 2. 1 Pricing Strategy Our pricing strategy is positioned as â€Å"generic†, meaning that S$4. 00 is the average consumer spending for a snack or light lunch in Singapore. Leveraging the volume of fries, Italian Soda, and signature style sauces to be sold, we are serving the majority of Singaporeans. 5. 2. 2 Brand Challenges Fresin Fries must establish a distinct brand to stand out from the other Western-style fast food competitors. Our logo is distinct as fresh, energetic and playful with color elements that are eye catching. †¢ Product names are geared toward the target market (teens), with items such as â€Å"Frenzy Fresin† and â€Å"Uber Fresin† which are fun and easy to remember. 5. 2. 3 Marketing Programs We will deploy three different marketing tactics to in crease customer awareness of Fresin Fries. Our most important tactic will be â€Å"word-of-mouth† and in-store marketing. This will be by far the cheapest and most effective of our marketing programs  because of  the high traffic in targeted shopping locations. The second tactic will be local store marketing. These will be low-budget plans that will provide community support and awareness of our facility. The last marketing effort will be utilizing local media. Although, this will be the most costly, this tactic will be used sparingly as a supplement where necessary. †¢ In-Store Marketing o In-store brochures containing our concept and philosophy. o Wall posters. o Design concept. o In-store viewing of making fries process from cutting to frying. o Standing signage inside malls’ lobby/aisle. o Outdoor signage (if possible). o Grand opening promotion. o Party catering. o Merchandising items. †¢ Local Store Marketing o Brochures. Free occasional t-shirts at local stores events. †¢ Local Media o Direct mail piece – containing brochures sent to surrounding addresses. o Web page – containing company philosophy, history and news. o Local magazines that target our core customers, such as Free! Magazine. o Newspaper campaign – placing several large ads t hroughout the month to explain our concept to the local area. 5. 2. 4 Positioning Statement Our main focus in marketing will be to increase customer awareness in the surrounding community. We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about. We will price our products fairly, keep our standards high, and execute the concept so that â€Å"word-of-mouth† will be our main marketing force. 5. 3 Sales Strategy The sales strategy is to build and open new locations in order to increase revenue. However, this plan will be implemented when the one â€Å"market tester† outlet showed potential growth. As each individual location will continue to build its local customer base over the first three years of operation, the goal of each store is  S$104,250 in annual sales, with the original flagship store expected to earn almost S$200,000 per year. . 3. 1 Sales Forecast We anticipate the highest peak on the months of November and December in our sales forecast, due to the holiday seasons. In November, there is Ramadan, and for non-muslim Malaysians and Indonesians, it means vacation time. Approximately 1. 5 million  Indonesians visit Singapore each year, mostly for shopping and dining. Then in December, we anticipate m ore tourists coming into Singapore; this explains the jumped of sales in these last two months of the year. [pic] [pic] [pic] [pic] [pic] Sales Forecast | | |2005 |2006 |2007 | |Unit Sales | | | | |Belgian Fries |49,464 |98,928 |197,856 | |Italian Soda |27,692 |55,384 |110,768 | |Merchandising |3,889 |7,778 |15,556 | |Signature Packaged Sauces |3,356 |6,712 |13,425 | |Total Unit Sales |84,401 |168,802 |337,605 | | | | | | |Unit Prices |2005 |2006 |2007 | |Belgian Fries |$4. 00 |$4. 00 |$4. 00 | |Italian Soda |$1. 50 |$1. 50 |$1. 50 | |Merchandising |$8. 50 |$8. 50 |$8. 50 | |Signature Packaged Sauces |$2. 00 |$2. 00 |$2. 0 | | | | | | |Sales | | | | |Belgian Fries |$197,856 |$395,712 |$791,424 | |Italian Soda |$41,538 |$83,076 |$166,152 | |Merchandising |$33,057 |$66,114 |$132,228 | |Signature Packaged Sauces |$6,712 |$13,425 |$26,849 | |Total Sales |$279,163 |$558,327 |$1,116,654 | | | | | | |Direct Unit Costs |2005 |2006 |2007 | |Belgian Fries |$0. 80 |$0. 80 |$0. 80 | |Italian So da |$0. 15 |$0. 15 |$0. 15 | |Merchandising |$3. 83 |$3. 83 |$3. 83 | |Signature Packaged Sauces |$1. 00 |$1. 00 |$1. 0 | | | | | | |Direct Cost of Sales | | | | |Belgian Fries |$39,571 |$79,142 |$158,285 | |Italian Soda |$4,154 |$8,308 |$16,615 | |Merchandising |$14,876 |$29,751 |$59,503 | |Signature Packaged Sauces |$3,356 |$6,712 |$13,425 | |Subtotal Direct Cost of Sales |$61,957 |$123,914 |$247,827 | 5. 4 Strategic Alliances Our business requires a long relationship with raw suppliers as well as partner vendors. In Chinese, this relationship is called â€Å"guanxi,† meaning business bonding. We already have a long and good standing relationship with  Company V  in our previous ventures. For Company Y, Mr. Joe Shmo, the managing director,  is a prominent figure in the society and we hope to strengthen further our business relationship with him and  the company. 5. 5 Milestones During the initial set up of the company, the 4 founders (Guy Fry, Harry Hip, Sam Sauce, and Carl Cone) will conduct the planning and implementation in building the brand and the construction of our first outlet. The planning and construction will take approximately 8 months, in addition to the revision and refinement process that will take the rest of the 12 month period before our opening in early 2005. [pic] [pic] [pic] Milestones | | | | | | | | |Milestone |Start Date |End Date |Budget |Manager |Department | |Presentation materials for all |1/12/2004 |3/12/2004 |TBD |Carl Cone |Business | |stakeholders | | | | |Development | |Follow up with suppliers |1/21/2004 |3/22/2004 |$100 |Sam Sau ce |Business | | | | | | |Development | |Follow up with developers |1/21/2004 |9/8/2004 |$50 |Sam Sauce |Business | | | | | | |Development | |Printing materials |2/13/2004 |4/10/2004 |$8,000 |Guy Fry |Marketing | |Marketing communication program |2/21/2004 |6/23/2004 |TBD |Sam Sauce |Marketing | |Constructions |5/22/2004 |12/3/2004 |TBD |Harry Hip |Business | | | | | | |Development | |In store signage, POP |5/23/2004 |10/11/2004 |TBD |Guy Fry |Marketing | |Grand opening materials |6/2/2004 |10/13/2004 |TBD |Guy Fry |Marketing | |Hiring staff |7/14/2004 |8/12/2004 |$900 |Harry Hip |Human Resources | |Open second location |7/1/2005 |7/1/2005 |$10,000 |Carl Cone |Business | | | | | | |Development | |Open 3rd and 4th locations |1/1/2006 |6/1/2006 |$15,000 |Carl Cone |Business | | | | | | |Development | |Open 5th, 6th, and 7th locations|1/1/2007 |12/31/2007 |$20,000 |Carl Cone |Business | | | | | |Development | |Training staff |9/12/2004 |12/10/2004 |$1,000 |Harry Hip |Human Resources | |Totals | | |$55,050 | | | Web Plan Summary The website will, of course, show visitors everything about Belgian food culture, including the history of french fries over time. To make the website interactive, Fresin Fries will offer gift cards and promotions via the Internet, so our visitors can print the promotional coupon in PDF format and bring it when they visit Fresin Fries. Visitors can also download Fresin Fries' theme song as ring tones, or order potato cutters for delivery. Besides the traditional formats of customer service hotline and in-store form, customers can now write their comments and suggestions  on our website, which will be directed to one of our staff. So, the website itself will act as the medium between our company and our audience. In the future, our website will show information on franchising/licensing our brand name. 6. 1 Website Marketing Strategy We will leverage the visibility of our shopping mall's website by getting them to include a link to ours. We will also post  banners on an official Singapore tourism website. 6. 2 Development Requirements To adequately serve our audience, the front end strategy of our website should be parallel with our corporate color. The front end design of our website will be entirely trusted  to Mr. Guy Fry. The diversity of founders' background in our company has enabled a cost efficient development in our venture. As Mr. Harry Hip and Mr. Carl Cone are experts in Information Technology, the back end of our website will be developed by  these gentlemen. Management Summary The initial management team depends on the founders themselves, with little back-up. As we grow, we will take on additional help in certain key areas. Part of our basic philosophy will be able to run our executive management as a â€Å"knowledge sharing† fellowship. We will not add additional overhead until absolutely necessary. This will mean that the initial staff support team will have to work extra. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our outlets. This will also allow us and future business partners to recoup investments as quickly as possible and enjoy a higher return. At present time, Fresin Fries is being owned by its 4 founders. Others that have helped on the development of this business venture will be offered an opportunity to grow together with the company at the appropriate time, and when the time comes, the 4 founders’ share will be consolidated as one entity. 7. 1 Management Team Fresin Fries is currently the creative idea of its four founders. As the company is small in nature, it only requires a simple organizational structure. Implementation of this organization form calls for all four individuals to make all major management decisions in addition to monitoring all other business activities. As we expand into multiple locations, each location will have a primary site manager. 7. 2 Organizational Structure Future organizational structure will include a director of store operations when the store locations exceed four units. We hope that this individual will come out of the ranks of our stores’ management. This will provide a supervisory level between the executive level and the store management level. Current plan is to have our accounting and payroll functions done by an in-house bookkeeping. Mr. David Lu will be responsible for accounting and business development of Fresin Fries, helped by Mr. Harry Hip, acting Head of Human Resources Division. Possible positions might be added at a later date include marketing manager, purchasing manager, controller, human resources, R&D and administrative support team. 7. 3 Personnel Plan Our initial employees will  include two  cashiers, two cooks and two bus boys per location, with one of each on the premises during open hours. This is considered an ideal personnel number for a food outlet the size of our own. Each employee will work for 38-40 hours per week. In the long run, as we expand our product category and retail outlets, we will employ more people in the middle management to ensure the focus of our work, including site managers. [pic] |Personnel Plan | | |2005 |2006 |2007 | |Site Managers |$0 |$60,000 |$96,000 | |Cashiers |$36,000 |$80,000 |$144,400 | |Cook |$28,800 |$66,000 |$115,200 | |Busboy |$23,400 |$56,000 |$94,000 | |Total People 12 |26 |40 | | | | | | |Total Payroll |$88,200 |$262,000 |$449,600 | Financial Plan The company is now privately held by Harry Hip, Guy Fry, Carl Cone, and Sam Sauce. Future shares will be offered after two consecutive years of operating in Singapore. 8. 1 Projections 8. 2 Start-up Funding Currently, the company is owned by the original 4 founders, who each will contribute $200,000 for the same amount of share, 25%. This will more than cover start-up requirements, and provide the business with a cash cushion to use for expansion over the first thre e years. [pic] Start-up Funding | |Start-up Expenses to Fund |$68,800 | |Start-up Assets to Fund |$50,000 | |Total Funding Required |$118,800 | | | | |Assets | | |Non-cash Assets from Start-up |$30,000 | |Cash Requirements from Start-up |$50,000 | |Additional Cash Raised |$681,200 | |Cash Balance on Starting Date |$731,200 | |Total Assets |$761,200 | | | | | | | |Liabilities and Capital | | | | | |Liabilities | | |Current Borrowing |$0 | |Long-term Liabilities |$0 | |Accounts Payable (Outstanding Bills) |$0 | |Other Current Liabilities (interest-free) |$0 | |Total Liabilities |$0 | | | | |Capital | | | | | |Planned Investment | | |Eric Yam |$200,000 | |Martin Ng |$200,000 | |David Lu |$200,000 | |Sagita Suwandi |$200,000 | |Additional Investment Requirement |$0 | |Total Planned Investment |$800,000 | | | | |Loss at Start-up (Start-up Expenses) |($68,800) | |Total Capital |$731,200 | | | | | | | |Total Capital and Liabilities |$731,200 | | | | |Total Funding |$800,000 | 8. 3 Break-even Analysis Our break-even analysis shows that we need unit sales over 9,700 per month to break even. We do not expect to begin turning a profit until year three. [pic] [pic] [pic] |Break-even Analysis | | | | |Monthly Units Break-even |9,706 | |Monthly Revenue Break-even |$32,104 | | | | |Assumptions: | | Average Per-Unit Revenue |$3. 31 | |Average Per-Unit Variable Cost |$0. 73 | |Estimated Monthly Fixed Cost |$24,979 | 8. 4 Projected Profit and Loss As the Profit and Loss shows,  Fresin Fries will run at a loss f or the first two years, using up some of the cash reserves initially invested by the founders. As sales increase, we will expand into new locations to aggressively spread brand recognition. This increase in visibility will allow us to take up less expensive locations off of Orchard Road, while maintaining our flagship operation, the first store, in a  prime spot. [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] Pro Forma Profit and Loss | | |2005 |2006 |2007 | |Sales |$279,163 |$558,327 |$1,116,654 | |Direct Cost of Sales |$61,957 |$123,914 |$247,827 | |Other Costs of Sales |$0 |$0 |$0 | |Total Cost of Sales |$61,957 |$123,914 |$247,827 | | | | | | |Gross Margin |$217,207 |$434,413 |$868,826 | |Gross Margin % |77. 81% |77. 81% |77. 81% | | | | | | | | | | | |Expenses | | | | |Payroll $88,200 |$262,000 |$449,600 | |Marketing/Promotion |$10,000 |$10,000 |$10,000 | |Depreciation |$0 |$0 |$0 | |Rent |$174,000 |$248,000 |$298,000 | |Utilities |$2,550 |$5,000 |$8,000 | |New locatio n setup |$25,000 |$50,000 |$50,000 | | | | | | |Total Operating Expenses |$299,750 |$575,000 |$815,600 | | | | | | |Profit Before Interest and Taxes |($82,543) |($140,587) |$53,226 | |EBITDA |($82,543) |($140,587) |$53,226 | |Interest Expense |$0 |$0 |$0 | |Taxes Incurred |$0 |$0 |$0 | | | | | | |Net Profit |($82,543) |($140,587) |$53,226 | |Net Profit/Sales |-29. 57% |-25. 18% |4. 77% | 8. 5 Projected Cash Flow The following chart and table show the Projected Cash Flow for Fresin Fries. [pic] [pic] [pic] |Pro Forma Cash Flow | | |2005 |2006 |2007 | |Cash Received | | | | | | | | | |Cash from Operations | | | | |Cash Sales |$279,163 |$558,327 |$1,116,654 |Subtotal Cash from Operations |$279,163 |$558,327 |$1,116,654 | | | | | | |Additional Cash Received | | | | |Sales Tax, VAT, HST/GST Received |$0 |$0 |$0 | |New Current Borrowing |$0 |$0 |$0 | |New Other Liabilities (interest-free) |$0 |$0 |$0 | |New Long-term Liabilities |$0 |$0 |$0 | |Sales of Other Current Assets |$0 |$0 |$0 | |Sales of Long-term Assets |$0 |$0 |$0 | |New Investment Received |$0 |$0 |$0 | |Subtotal Cash Received |$279,163 |$558,327 |$1,116,654 | | | | | | |Expenditures |2005 |2006 |2007 | | | | | | |Expenditures from Operations | | | | |Cash Spending |$88,200 |$262,000 |$449,600 | |Bill Payments |$244,265 |$430,245 |$599,286 | |Subtotal Spent on Operations |$332,465 |$692,245 |$1,048,886 | | | | | | |Additional Cash Spe nt | | | | |Sales Tax, VAT, HST/GST Paid Out |$0 |$0 |$0 | |Principal Repayment of Current Borrowing |$0 |$0 |$0 | |Other Liabilities Principal Repayment |$0 |$0 |$0 | |Long-term Liabilities Principal Repayment |$0 |$0 |$0 | |Purchase Other Current Assets |$0 |$0 |$0 | |Purchase Long-term Assets |$0 |$0 |$0 |Dividends |$0 |$0 |$0 | |Subtotal Cash Spent |$332,465 |$692,245 |$1,048,886 | | | | | | |Net Cash Flow |($53,301) |($133,918) |$67,767 | |Cash Balance |$677,899 |$543,981 |$611,748 | 8. 6 Projected Balance Sheet Fresin's projected company balance sheet follows. We expect to run at a loss for the first two years, decreasing our net worth slightly. As the operation becomes more profitable in the third year, our net worth rises again. [pic] Pro Forma Balance Sheet | | |2005 |2006 |2007 | |Assets | | | | | | | | | |Current Assets | | | | |Cash |$677,899 |$543,981 |$611,748 | |Other Current Assets |$0 |$0 |$0 | |Total Current Assets |$677,899 |$543,981 |$611,748 | | | | | | |Long-te rm Assets | | | | |Long-term Assets |$0 |$0 |$0 | |Accumulated Depreciation |$0 |$0 |$0 | |Total Long-term Assets |$0 |$0 |$0 | |Total Assets |$677,899 |$543,981 |$611,748 | | | | | | |Liabilities and Capital |2005 |2006 |2007 | | | | | | |Current Liabilities | | | | |Accounts Payable |$29,242 |$35,911 |$50,452 | |Current Borrowing |$0 |$0 |$0 | Other Current Liabilities |$0 |$0 |$0 | |Subtotal Current Liabilities |$29,242 |$35,911 |$50,452 | | | | | | |Long-term Liabilities |$0 |$0 |$0 | |Total Liabilities |$29,242 |$35,911 |$50,452 | | | | | | |Paid-in Capital |$800,000 |$800,000 |$800,000 | |Retained Earnings |($68,800) |($151,343) |($291,930) | |Earnings |($82,543) |($140,587) |$53,226 | |Total Capital |$648,657 |$508,070 |$561,296 | |Total Liabilities and Capital |$677,899 |$543,981 |$611,748 | | | | | | |Net Worth |$648,657 |$508,070 |$561,296 | . 7 Business Ratios The following table outlines some of the more important ratios from the  Fast Food Restaurants and Stands  in dustry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code 5812. [pic] |Ratio Analysis | | |2005 |2006 |2007 |Industry Profile | |Sales Growth |0. 00% |100. 00% |100. 00% |8. 7% | | | | | | | |Percent of Total Assets | | | | | |Other Current Assets |0. 00% |0. 00% |0. 00% |37. 31% | |Total Current Assets |100. 00% |100. 00% |100. 00% |45. 97% | |Long-term Assets |0. 00% |0. 00% |0. 00% |54. 03% | |Total Assets |100. 00% |100. 0% |100. 00% |100. 00% | | | | | | | |Current Liabilities |4. 31% |6. 60% |8. 25% |17. 94% | |Long-term Liabilities |0. 00% |0. 00% |0. 00% |22. 26% | |Total Liabilities |4. 31% |6. 60% |8. 25% |40. 20% | |Net Worth |95. 69% |93. 40% |91. 75% |59. 0% | | | | | | | |Percent of Sales | | | | | |Sales |100. 00% |100. 00% |100. 00% |100. 00% | |Gross Margin |77. 81% |77. 81% |77. 81% |59. 05% | |Selling, General & Administrative Expenses |107. 37% |102. 99% |73. 0 4% |39. 24% | |Advertising Expenses |0. 00% |0. 00% |0. 00% |1. 96% | |Profit Before Interest and Taxes |-29. 57% |-25. 8% |4. 77% |1. 92% | | | | | | | |Main Ratios | | | | | |Current |23. 18 |15. 15 |12. 13 |1. 04 | |Quick |23. 18 |15. 15 |12. 13 |0. 66 | |Total Debt to Total Assets |4. 31% |6. 60% |8. 25% |50. 2% | |Pre-tax Return on Net Worth |-12. 73% |-27. 67% |9. 48% |6. 90% | |Pre-tax Return on Assets |-12. 18% |-25. 84% |8. 70% |13. 87% | | | | | | | |Additional Ratios |2005 |2006 |2007 | | |Net Profit Margin |-29. 57% |-25. 18% |4. 77% |n. a | |Return on Equity |-12. 73% |-27. 7% |9. 48% |n. a | | | | | | | |Activity Ratios | | | | | |Accounts Payable Turnover |9. 35 |12. 17 |12. 17 |n. a | |Payment Days |27 |27 |26 |n. a | |Total Asset Turnover |0. 41 |1. 03 |1. 83 |n. | | | | | | | |Debt Ratios | | | | | |Debt to Net Worth |0. 05 |0. 07 |0. 09 |n. a | |Current Liab. to Liab. |1. 00 |1. 00 |1. 00 |n. a | | | | | | | |Liquidity Ratios | | | | | |Net Working Capital |$648,6 57 |$508,070 |$561,296 |n. a | |Interest Coverage |0. 00 |0. 00 |0. 00 |n. | | | | | | | |Additional Ratios | | | | | |Assets to Sales |2. 43 |0. 97 |0. 55 |n. a | |Current Debt/Total Assets |4% |7% |8% |n. a | |Acid Test |23. 18 |15. 15 |12. 13 |n. a | |Sales/Net Worth |0. 43 |1. 10 |1. 99 |n. a | |Dividend Payout |0. 00 |0. 00

What Makes A Good Role Model - 3241 Words

1. What constitutes a good role model and how can I ensure that I act as a role model for employees I supervise? Ambition: A good role model will push them and in turn push you to do well. Whoever is your role model should know how to excel, so that you learn how to. Confidence: People admire individuals who accept assignments with confidence. Humility: Put the goals of all or others before yourself rather than thinking only of your goals. Empathy: Showing concern for others and using empathy by acknowledging their emotions is an approach to strengthen cultural bonds. Generosity: Giving is the same as adding value and if we increase the value to a relationship we are giving more to it. Genuine: It is a well-known fact that liars are guilty of something. Would you want an unrepentant criminal leading you? Most often the answer is no. Tolerant: People from different lifestyles, religions, and cultures are learning how to coexist without changing their values because they tolerate one another. Positivity: Positivity is more than just being happy because happiness is a result of positive experiences while Positivity means always looking up and to the successful completion of your goal. Determination: Leaders have a desire to reach a target, and to let nothing get in the way this is not the same as an obsession, which can lead to unhealthy behaviour, so any potential leader should know the difference. 2. What are the traits of an effective leader? How can theseShow MoreRelatedWhat Makes A Good Role Model?1058 Words   |  5 Pages1. What makes a good role model and how can I ensure that I act as a role model for employees I supervise? It is said that role models in work places are no different to those elsewhere. In families, parents are role models. Managers are role models in the work place. They too, set an example. 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