BM019-3-3 Individual Assignment 1

Degree Level 3 Asia Pacific University of Technology & Innovation

Entrepreneurship (BM019-3-3)

Learning Outcome

Upon completion of this assignment, students should be able to:

i. Demonstrate knowledge and understanding of entrepreneurial management.

ii. Develop a capacity for informed critical understanding of environmental
conditions and the ability to analyze current trends.

iii. Demonstrate entrepreneurial activities and competence building.

iv. Demonstrate an understanding of the strategy process.


Assignment Specifications

Mr Bernard has been operating his own canteen at ABC University for the past 15 years. This
canteen serves breakfast and lunch at reasonable prices. Last month, Mr Bernard had received
his permanent residence status from the Australia government. He plans to sell off his canteen
business and migrate to Australia to stay with his family there.
Upon hearing rumors that Mr Bernard is contemplating a sale of the canteen at ABC University,
your boss approached Mr Bernard to discuss the possibility of purchasing the canteen. Mr
Bernard offered to sell the canteen for the price of RM500,000.
Since your boss is not sure whether it is a good buy at RM500,000. He asked you to give him a
business valuation report for this canteen at ABC University.
Your boss has given you the following information that he obtained from Mr Bernard and some
other sources:
a. Currently, ABC University has 10,000 students
b. Most of the equipments, furniture and tools are bought about 5 years ago
c. Currently, Mr Bernard is the manager and he has 10 staffs working under him. The
staff turnover rate has been low, with 80% of them has been working here for more
than 5 years
d. Mr Bernard still has 6 years rental contract with the university and this contract will
remain effective for anybody who takes over from Mr Bernard with the condition
that university agree with it. The rental per month is RM6000.00
e. There are no other competitors within 3km from the University



BM019-3-3 Individual Assignment 2
Degree Level 3 Asia Pacific University of Technology & Innovation

f. Canteens turnover and net profit for the last 5 years:
Year Turnover Net profit
2007 RM300,000 RM60,000
2008 RM350,000 RM63,000
2009 RM400,000 RM60,000
2010 RM450,000 RM67,500
2011 RM500,000 RM60,000

g. Assets:
Total tangible assets: RM300,000 (book value at time of purchase)
Total liabilities: Nil

h. Some information for the going market rate in the last one year:
Company Transacted selling price
Paradise Cafe at Smart High School
(3,000 students)
RM150,000
Moon Cafe at Twain University
(15,000 students)
RM600,000
Wan Cafe at Pan Corporation
(6,000 employees)
RM400,000


* For any information not given here, you are free to use your own assumptions.









BM019-3-3 Individual Assignment 3
Degree Level 3 Asia Pacific University of Technology & Innovation
Required:
You have to prepare a business valuation report using the following:
- Executive Summary
- Opinion of value
- Assumptions and Limiting Conditions

Business Overview:
- History of company
- Services provided
- Education industry analysis and its impact on canteen business
- Production process
- Customers analysis
- Suppliers
- Human resources
- Description of facilities
- Furniture and Fitting
- Equipment and Machine

Financial Analysis:
- Asset valuation: Book value method
- Market valuation method: The going market rate method
- Income-based business valuation: Return on investment (ROI) method

Referencing










BM019-3-3 Individual Assignment 4
Degree Level 3 Asia Pacific University of Technology & Innovation

Assessment Method

The following assessment scheme will be adopted in order to evaluate the elements
above:

Criteria Allocation of Marks
Executive Summary 5
Introduction 5
Models & Conceptual Skills 20
Integration and Synthesis 20
Analysis & Interpretation 20
Prescriptions/Recommendations 15
References 5
Structure & Layout 5
Language & Clarity 5



Marking Criteria

Marks are awarded based on the following guidelines:

Grade Description of performance level
75% 100% You should be able to show good application of theories and concepts
covered in the subject. Your business plan should be well thought, with a
in depth analysis of all the necessary areas. It should have clearly written
points showing originality of thought. You provide correct citations for
resources used. No grammatical errors, spelling mistakes and
appropriate conclusion. Sufficient references from various sources and
not primarily from the Internet.
65% 74% You should be able to show proper understanding of the theories and
concepts chosen from the topics covered in the subject. Your analysis are
clearly written and stated, although the contents may not be properly
described. Minimal citation problems relating to style and presentation.
Sufficient points noted on company performance and improvement
recommendations. Minor grammatical errors, spelling mistakes.
Sufficient references but not varied.
50% 64% You should be able to show some understanding on theories and concepts
taught in the subject. Citation problems and minor referencing problems.
Grammatical errors and spelling mistakes. Poor references.
Below 50% You did not show understanding of the theories and concepts taught. No
analysis given or little relevant points were given, disregarding the
guidelines. Citation and referencing problems. Grammatical and spelling
mistakes. Minimum references, questionable sources.
BM019-3-3 Individual Assignment 5
Degree Level 3 Asia Pacific University of Technology & Innovation

Submission and Administrative Information

Students should include the Coursework Submission and Feedback Form with
their submission. The lecturer will give the CSFF before the submission dates.
Plagiarism is NOT acceptable Representation of another person's work as your
own, without acknowledgement of the source, for the purpose of satisfying formal
assessment requirements is considered plagiarism. The possible consequences of
plagiarism include:

Reduced grade for this module
Referral for this module
Failure of this module
Expulsion from the Institution

You can avoid plagiarism by using correct referencing, attribution, and proper
research technique submission.
All submissions must be made before the stipulated time. If the work is submitted
after this time it will be given 0 (zero).
Wikipedia.com is not a valid nor reliable source for reference and will not be
accepted in the assignment.
This assignment should not exceed 2,500 words, excluding appendixes.
Assignments that significantly exceeds the word count will be penalised
(i.e. every additional 200 words will be penalised 2%)