Sunshine stationery shop foundation project

Prepared expressly for

Mr. Ming li

Director

Huayuan Branch Office

Bank of Communication

Table of contents

Part 1 Finding Problem(s) . . . . . . . . . . . . . . . 1

Unit 1 Current Business Analysis . . . . . . . . . . . . . . . . 1

Unit 2 Focus Group Report . . . . . . . . . . . . . . . . . . . . . 3

1

Unit 3 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . S

Part 11 Deciding the Project objective(s) . . . . 7

Unit 1 objective SMART Analysis . . . . . . . . . . . . . . . . . 7

Part 111 Planning the activities . . . . . . . . . . . . . 8

Unit 1 Action plan & Activity Chart . . . . . . . . . : . . . . . 8

Unit 2 Cost Breakdown . . . . . . . . . . . . . . . . . . . . . . . . 12

Unit 3 Risk Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Unit 4 Project Framework . . . . . . . . . . . . . . . . . . . . . . 16

Part IV Presenting Proposal for Project . . . . . . 18

Unit 1 Executive Summary . . . . . . . . . . . . 18

Unit 2 Proposal for the Project . . . . . . . . . . . . . . . . . . . 22

Part 1 Finding Problems

Unit 1 Current business analysis

Sunshine stationery shop, it is a new business project exists in

Ruawen Road, where there are several schools, including one

primary school, one middle school and a vocational school. It is

the only stationery shop 'in this street .It mainly carries ball

pens, pens, pencils, pencil-boxes, erasers, notebooks, backpacks

and other kinds of stationery for different ages of the students.

2

The main business of the Sunshine stationery shop is going to

sell stationery covering all kinds of pens, pencils, ball pens,

rulers, pencil-boxes, notebooks, envelops, etc. It also carries

things for albums and letter papers, sharpeners.

It usually has a stock of 18,000 stationery which increases

when. a semester starts and decreases by the end of school year.

The different ball pens with colorful designs and advanced

functions, various size of the notebooks, all kinds of smell of

erasers always enjoy a high rate.

Customer profiles

The majority of the customers of the stationery shop are

students:

The primary school pupils, who are a some percentage of

the amount. They need more pencils, rulers, erasers, and

exercise books than other groups of customers. Also they

need white paper a lot because of their age stage.

According to their age character

Middle school students, who are the main power of selling

account. The number of the middle school students needs

a lot of ball pens, notebooks, and cute pencil-cases, etc.

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They are keen on beautiful and fashionable covers of the

notebooks. These smart things will attract students

greatly. Meanwhile, they have more pocket money than

pupils.

Vocational school students, who carry heavier burden of

studying than middle school students. That means they

need more ball pens, pens and notebooks. With the

increase of the age, they would like to use individual

things which can show their individuality greatly.

Non-student customers Include:

School teachers, who also need to buy some useful and

helpful stationery for their teaching, such as red ball pens,

rulers, red ink and medals.

Residents living near to the street also need to consume

stationery.

Clerks in some corporations of this street.

Some passerby.

Unit2 Focus groups report

To get a clearer idea of the views and opinions of customers,

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three groups were organized; the focus groups were as follows:

10 primary school pupils.

8 middle school students.

8 vocational school students

A basic list of questions were prepared, but the discussion

with each focus groups were allowed to be free and open:

Questions:

What do you need in the stationery shop?

What do you want to buy most?

How often do you visit the stationery shop?

What most often disappoints you when you come to the

shop?

What do you think of the price s the stationery shop

offers?

Do you think the shop assistants are helpful?

What do you think of the business hours at present?

What do you do when you can't find the thing you are

looking for?

Do you usually find the stationery you need?

What kinds of stationery are not available now, but which

you or your friends would like to buy?

What additional services would you like to see?

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What kind of stationery do you want to buy most?

Complaints:

The size of the shop is not big enough to hold more than

fifteen customers.

The shop assistants, lacking experience of working in a

stationery shop, cannot give appropriate help when asked

to do so.

The color and style of the stationery can not satisfy the

need of the various customers.

The present business hours are rather short. Students

would prefer to visit the shop after evening class.

The Sunshine stationery shop lack the convenient

equipments for residents, such as photocopier, a printer, a

fax machine and a IC telephone.

There is no place to sell popular superstars souvenirs for

students' fans.

Suggestions:

The stationery shop should add working hours to fit the

need of the marketing.

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The stationery shop should install a photocopier, a printer,

a fax machine and a IC telephone.

Stock some the most popular superstars' sonvenirs to

satisfy the students' need

The management should often do some surveys to get the

newest the tendency of the goods

The layout of the stationery shop should be comfortable

and bright.

The management should often do some surveys to get the

newest tendency of the current stationery and the favor of

the students.

The stationery shop should put a recorder to play the hit

songs to attract the students.

Unit3 SWOT Analysis

Strengths:

The stationery shop is the only one to serve the pupils and

the students who need ball pens, rulers, erasers,

notebooks and pencil-cases for their study.

The cost of the new shop is low, this allows the Sunshine

stationery shop to have lower prices. It is more

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competitive.

The fashionable decoration meets the students' need.

The stationery shop purchases directly from wholesale, so

it can offer larger discounts to the customers than the

retail's outlet.

The salary of the assistants and the rent of the shop are

low, this allows the stationery shop has lower price.

It is the only place to sell the popular, superstars

souvenirs, which are the students' favorite things.

Weaknesses:

It is impossible to expand the stationery shop at the

present location, because companies and firms are

occupying all the houses around.

The prices of the stationery are not low enough so that

some customers may choose another stationery shop to

buy something what they want.

The space of the stationery shop is not large enough to

contain more customers.

The assistants facial is not vivid .It is hard to attract the

students.

The working hours are shorter than other stationery shop.

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There are no advertisements for the Sunshine stationery

shop, so no more people know about it. The numbers of

the customers are fixed. It is hard to add the new

customers.

Opportunities

The students of three different schools are the steady

customers of consuming.

More and more companies appear nearby, they also need

vast stationery.

There are three schools in this area, but there is no decent

stationery shop around

Sunshine stationery shop can supply the demand of

different levels of customers.

It is difficult to find a place to copy files and fax files.

The students cannot find a place to telephone when they

are in trouble or something urgent.

It is a good place for students to communicate each other.

Threats:

High qualified ball pens and pencil-cases cost a lot, so the

price of these stationery are not low. This will encourage

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people to use recycled pens rather than to use ball pens.

There is going to be a new department store in the next

street. I t Will supply all kinds of goods, including

stationery. Maybe the prices of the stationery in this

department store are lower than Sunshine stationery

shop.

On-line stationery shop that offer discount stationery are

attracting more and more customers.

Other convenient shops will sell stationery as their by

work in order to increase the business volume.

Part II Deciding the project objectives

Unit I Objective SMART Analysis

Smart stands for five words: Specific, Measurable, Agreed,

Realistic and Time-bound

Specific

I set up this stationery shop to supply convenient services for the

students nearby: There are three different schools in the street,

so the aim of the shop is very clear: to serve the students whom

are the main customers. The shop will offer the best services to

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meet the customers' need.

Measurable:

The Sunshine stationery shop is expected to increase the revenue

by 30,000yuan the first year and by 40,000 to 45,000 in the

following year.

Agreed:

To establish a stationery shop is a promising job, so I my partner

and, I have the agreement. We realize that to run a stationery

shop is our own enterprise.

Realistic:

Because of the good commercial environment,' there are three

different schools and over 2000 students, this is the only

stationery shop in this area as well, so the prospect is very

optimistic. My partner is very familiar to the management and

good at accounting. The stationery shop will solve the problem of

consumption.

Time-bound:

I set up this stationery shop borrowing money from Bank of

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China. I loan 20,000 Yuan from the bank. According to the profit

every year, in ten years I can pay back all the loan and interests.

Part III Planning the activities

Unit 1 action plan and activity chart

By the end of Week one

Identify and negotiate the rental of the new premises.

Sign the contract to use it.

By the end of Week Two

Design the new stationery shop layout.

By the end of Week Three

Sign the contract with the decorating company to decorate

the new shop

Order new counters and equipment.

By the end of Week Four

Start decorating the shop

Select consultants.

By the end of Week Five

Have the first consultant meeting

By the end of Week Six

Hire the new shop the assistants

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Order new stationery based on the decision made at the

consultant meeting

By the end of Week Seven

Start training the new shop assistants

By the end of Week Ten

Check and accept the decorating projects

Publicize in the street the Sunshine stationery shop open

By the end of Week Eleven

Get the new equipment delivered and installed

Install the new counters and shelves in the new shop

Clean the new shop

By the end of Week Twelve

Get the new stock delivered and put on the selves

In Week Thirteen

Hold the opening ceremony

In Week Fourteen

Get ready for selling

Unit 2 Cost breakdown

Rental cost: the new premises would cost RMB40, 000 to rent

each year.

13

Decorating: the purchase of building materials and the labor

cost for the new shop would be RMB120, 000.

FLOORING 20,000

LABOUR COST 60,000

CEILING 7,000

LIGHTING 95,000

LUMBER 5,500

PAINT 51000

CEMENT &PUTTY 2,500

WONDOWS - 9,500

GLUE&TOOLS 1,000

EQUIPMENT: The cost of equipment in the new stationery shop

would be RMB71,000

GOODS SHELVES40,000

AIR CONDITIONERS 10,000

OFFICE SUPPLIES 1,000

OFFICE FURNITURE 2,000

BUDGET: The annual increase in the operating budget would be

RMB 16,000

WAGES 12,000

UTILITIES 2,000

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EQUIPMENT MAINTENANCE 1,000

CONSULTANTS FEES 1,000

TOTAL COST OF PROJECT

INITIAL COSTS: DECORATING 120,000

EQUIPMENT 71,000

SUB-TOTAL 191, 000

RECURRENT COSTS: RENTAL40,000

OPERATING 16,000

BUDGET

SUB-TOTAL 56,000

TOTAL COST 247,000

Unit 3 Risk analysis

People-related:

The new assistants may not good at selling goods at all.

Some customers may pilfer from the stationery shop.

Some customers may not satisfy with the environment of the

shop.

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Time-related

The newly ordered shelves may not arrive in time , causing

delay in the opening of the new shop.

Three different schools may open their own convenient shops

in the campuses in future.

The assistants may not be trained well until the eve of the

opening ceremony.

The working hours of the Sunshine stationery shop are

similar to the time of school, the most working hours face no

students, when the school time is over, the stationery shop

will be closed.

Product-related:

The loan may not be obtained from the bank.

The new stock may not cater to the interests of the customers.

The whole decoration cannot reach the standard of the

management.

Three measures:

Try to avoid the risks, i.e. to prevent the dangers from

happening, e.g.: carry out market research among target

customers to improve the popularity of the stock

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Prepare alternatives beforehand in case the dangers actually

happen, e.g.: contact more clerk candidates as substitutes in

case the employed are not qualified.

Set aside a certain percentage of the total budget as

contingency allowance to take account of the unexpected

risks, for example:

To cover the pilferage loss

To cover the re-decorating expense

Three more Items should be added to the total costs:

Public relations 2,500 Yuan per year

Market research 1,500 Yuan per year

Contingency allowance 2% of the annual profit

Unit 4 Project Framework

Narrative Objectively Sources of Assumptions

Summary verifiable information and risk

indicators

Goal or Aim To establish a Student and Opinion survey

new stationery staf opinion two years after

and meet project

student implementation

demands for

better and wider

services

Purpose or 1.To increase Revenue and Stationery

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Objectives revenues and profit figures financial

profits by records

20%and 30%

respectively

within 2 years

2.To raise the Increased Stationery

profile and number of records

improve student.

competitiveness

of the stationery

shop within 2

years.

Outputs 1.Large enough Existence of Observation 1.That the

new

premises new shop stationery shop sales staff are

2.Additional new services records competent and

services on operational honest

offer, these and in regular 2.The new

include: use department

"Comfortable store appears

sofas 3.That the

*Photocopying advice on new

stationery to

3.A functioning Regular Minutes of stock is correct

group of staff advice on consultant

and student stock and group meeting

consultants services

Narrative Objectively Sources of Assumptions

verifiable

summary indicators Information And risks

ACTIVITIES 1.Identifdy and 1.Rental Project 1.That there

are I

negotiate agreement

implementation no

rental of new signed diary interruptions

premises and delays to

2.Design new 2.Design given the decorating

stationery to contractors of the shop

shop layout 2.That the

3.Order 3.Orders contractor uses

equipment and placed good quality

furniture materials

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4.Install

equipment in

new shop

5.Order new

stock

6.Train new 4.Job offers

staff made and

7.Hold contracts

opening signed

ceremony

8.Identify 5.Consultants

consultant accept

group of staff appointment

and students

9. Hold initial

consultants

group meeting

INPUTS Human Equipment Financial That the bank

Additional Photocopier 247,OOORMB will be willing

to

sales staff Computer new as a loan from

lend the money

display the industrial

shelving and

Additional till commercial

bank

Part IV Presenting Proposal For Project

Unit 1 Executive summary

I want to establish a new stationery shop (Sunshine stationery

shop), because there is not any stationery shop in Huawen Road.

The new stationery shop `s site is that about 140square meters

and all will offer new services demanded by customers.

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The project will bring increases in revenue and profit by 40%

and 50%respectively in the first year and will do more in the

years to come.

The shop need 247,000yuan to establish and decorate the new

bookshop, purchase new equipment, stock with new stationery

and offer new services.

The new stationery shop will surely satisfy the customers' needs,

increase the revenue and profit, and improve the financial

statements.

Sunshine stationery shop, a privately owned, mainly carries all

kinds of pens, pencils, ball pens, rulers, pencil-boxes, notebooks,

envelops, etc, and various best sellers for students, teachers,

clerks in nearby companies, and local residents. It is located next

to three schools, and attracts a lame number of customers.

The new stationery shop would allow us to increase the revenue

and profit by 40%and 50% respectively one year after the plan

is accomplished and increase more in the years to come.

Unit 2 proposal for the project

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New promises:

The new stationery shop, located in Huawen Road, will occupy

an area of about 140 square meters, and have the following

features:

1. The wide space make the customers comfortable, they do not

have to disturb other customers when walling along the aisles.

2. The interior decorating is simple but comfortable.

3. Lighting and ventilation of the stationery shop are of the first

class.

New services:

The Sunshine stationery shop will offer the best new services

those are followed:

The stationery shop will offer new services based on customers

'requests and suggestions, expanded services are as following:

1. Stock with more stationery, so that customers will have more

choices.

2. Provide printing services by installing a photocopy machine

and a computer with a high quality printer.

3. Set up new counters selling greeting cards, phone cards, us

passes.

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4. It is a place where the customers can change their monthly

tickets.

New facilities:

The stationery shop will order new goods shelves and purchase

additional office furniture, a photocopy machine, and a

computer with a laser printer. The shop will install some

comfortable sofas for customers.

Cost breakdown:

Rental cost: the new premises would cost40, 000yuan to rent

each year.

Decorating: the purchase of building materials and the labor

costs for the new shop would be RM11120, 000.

FLOORING 20,000

LABOUR COST 60,000

CEILING 7,000

LIGHTING 95,000

LUMBER 5,500

PAINT 5,000

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CEMENT &PUTTY 2,500

WINDOWS 9,500

GLUE&TOOLS 1,000

EQUIPMENT: The cost of equipment in the new stationery shop

would be RMB71, 000

GOODS SHELVES40,000

AIR CONDITIONERS 10,000

OFFICE SUPPLIES 1,000

OFFICE FURNITURE 2,000

BUDGET: The annual increase in the operating budget would be

RMB 16,000

WAGES 12,000

UTILITIES 2,000

EQUIPMENT MAINTENANCE 1,000

CONSULTANTS FEES 1,000

Benefits:

The sunshine stationery shop is expected to increase the revenue

by 40,000 yuan the first year when the project has been

completed and by 50,000 yuan in the following year.

The stationery shop will offer various services to the students

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who then do not have to go out of the Huawen Road to get things

what they want. They will also find it enjoyable to browse there,

they will find that in the stationery shop, they can get the lately

information from the assistants.

Schedule:

The project will start one week after it is approved and budget is

made available. It will take approximately three months to

finish, with two and a half months needed to decorate the new

stationery shop, and one week to make the final preparation.

I believe that this stationery shop project would enable us not

only to meet the demands and needs of the students, but also of

those in this areas. There is also no decent stationery shop

around Huawen Road. A well-equipped stationery shop like this

one would attract customers from three schools and local

residents areas.

To: Lili Chen, President

From: Jie Zhang, Sunshine stationery shop manager

Date: March 22,2002

Subject: Sunshine stationery shop Project

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Location:

The management has chosen a good location in Huawen Road

where there are three different schools nearby. They are a

middle school, a primary school and a vocational school. Also,

many firms and companies are around here.

Services:

The stationery shop will offer good services to meet customers'

needs. To supply additional and convenient services, the shop

installs a photocopier, a fax machine, an IC telephone .We also

supply comfortable shopping environment foe the customers.

The assistants show their high-qualified services to the

customers.

Benefits:

The new project will increase the revenues by 20%and 30%

respectively. To raise the profile and improve competitiveness of

the stationery shop within two years.

Costs:

The total cost o the project is estimated to be 200,000 yuan.

Schedule:

The project will start one week after it is approved.

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