United Arab Emirates University College of Business & Economics Computer Application in Business

MAGIC MENU .

Group members Fatma Ali Saleh Saeed Mashael Mohamed Omar Huwaida Ahmed Saeed Noura AlKaabi Amal Abdul Khalek

ID Number 200800541 200806112 200812674 200715630 200834824

Instructor: Saif Al Shaali Section : 51 Fall 2012

1
Overview of the company

Introduction : our project is to create a nice program with technical methods( touch screen ) . the idea will serve restaurants and the relationship with their customer . It is about electronic menu in the restaurant table that have everything included in it like available meals , price . Our product name is (MAGIC MENU ).The MAGIC MENU product has designed for many reasons. First, it can save time of order. Second E-Menu can eliminate the waiter, so no need for waiters in the restaurant. Third, it's also helpful for the saving money that needed for waiters' salaries. Our product can save a lot of money, effort and it is easy to use. Moreover, we expect that MAGIC MENU will get a success in the market because it is new and creative product; also it is needed in our fast lifestyle. We recommend that to try our product to enjoy with the applications and features anytime you order. Mission : MAGIC MENU mission is to apply the technology in the regular menu to make it up to date attractive product. General company description: Our company selling and maintaining an electronic menu with touch screen; we will program it and sell it to the restaurants; also we will sell unique accessories for our e-menu. Products and services : MAGIC MENU will contain all meals that are available in the restaurant; with the prices and calories of every meal. Moreover, the customers can choose which flavor, sauce, size and drink they want. MAGIC MENU will have an attractive designs and colors; so it will take the style of the restaurant and design appropriate templates. Also, the screen will contain games; so customers can play in waiting time of their orders. Another thing is that customers can see the kitchen and how their meals are cooked. Also customers can order without the need for a waiter to be with him. The company will maintain the products and redesign its applications for every restaurant as they want.

Management and organization: For this year, the total number of the workers is 24 employees. The management team plans to increase the number of employees in the organization to 50 workers in the second year and to 60 workers by the third year. In this year , 5 are sales staff reporting to a sales manager who reports to the owner , with 6 technicians and 3 engineers , 1 advisor and 2 consultants . The major members of the management team are Huwaida, Fatema, Mashael, Amal and noura. They are also the board of directors of the company and the managers of the financial , marketing , HR , accounting and supply chain departments .This team will hold the decision making process, schedule the product manufacturing, Reviews daily reports, and Monitors performances

2
Financial Plan

How business is financed?

We decided to take a loan from Khalifah Funds. The amount of the loan is ADE 1,000,000. We see that the advantages of the loan is valuable more than disadvantages and the reasons that led us to borrow money are no sharing in ownership, more borrowing allows for potentially greater return on equity and the opportunity cost is justified when the cost of borrowing is low during periods of low interest rates. We think that our business is small and we need small factory with modern machines and 24 workers so, we do not need a huge amount of many to finance our business.

Price :
The price for MAGIC MENU is AED3500 in the first year. We choose this range of the price according to the features and high production process. Our product is unique and we have the power to put the price as we want not based on the market because no one like us that means we have a competitive advantage. Also , the price of MAGIC MENU are related to the maintaining services and accessories that the customer want it to be with our product .

F-Statement function : We use f-statement function to evaluate our revenues and expense and see if them in a good position or not .
1 salary 30000 other income 5000 telephone expenses 1200 electricity expenses 1000 rent 3500 maintance 1200 loan 3000 other expnese 4000 2 30000 2000 1000 1500 3500 2230 3000 4000 3 30000 4 30000 5 30000 2000 1000 950 3500 2810 3000 4000 6 30000

1250 1100 3500 3100 3000 4000

950 1000 3500 3000 3000 4000

1200 1000 3500 3200 3000 4000

We make F-Statement function on our balance after paying all our expenses as the following : =IF(B14>20000,"good","bad") if the balance is less than 20000 we will be in a good position and else we should make some improvement because we will be in bad position

Financial balance sheet : A balance sheet is a statement of a firms assets, liabilities and net worth. The key to understanding a balance sheet is the simple formula: Assets = Liabilities + Equity All balance sheets follow the same format: If it is in two columns, assets are on the left, liabilities are on the right, and net worth is beneath liabilities. Here is our balance sheet :

Beginning 26-Nov-12 Assets Current Assets Cash in bank Accounts receivable Inventory Prepaid expenses Other current assets Total Current Assets $ $ 1,000,000 60,000 250,000 54,000 209,000 1,573,000

Projected 25-Nov-13

$ 1,500,000 50,000 150,000 $ 1,700,000

We will begin our analysis by assets which divided into Current assets and fixed assets, we will begin by current assets. Current assets means include cash, stocks and bonds, accounts receivable, inventory, prepaid expenses and anything else that can be converted into cash within one year or during the normal course of business. As we see between the two years the current assets increase thats means that the company is in good position comparing between two years .We found that the performance of our company increase and now it is in good position because it increase from 1573000 to 1700000. Fixed assets are also known as long-term assets. Fixed assets are the assets that produce revenues. Fixed assets in this company are Machinery & equipment Furniture & fixtures Leasehold improvements Land & buildings other fixed assets.

As we see from the fixed assets is increasing means the company uses its fixed assets more to generate revenue and comparing between two years we see it increase from 371920 to 426000. Secondly. we will talk about liabilities section . we divide into current liabilities and long term liabilities. Current liabilities are accounts payable, notes payable to banks (or others), accrued expenses (such as wages and salaries), taxes payable, the current due within one year portion of longterm debt and any other obligations to creditors due within one year from the date of the balance sheet. The current liabilities of most small businesses include accounts payable, notes payable to banks and accrued payroll taxes. As we see in the total current liabilities it decrease that the mean debt decrease from 669370 to 410500 and we focus in decreasing our liabilities as much as we can . Long-term liabilities are any debts that must be repaid by your business more than one year from the date of the balance sheet. This may include startup financing from relatives, banks, finance companies or others. By comparing between the two years we see that the companys long term loan is decreasing. Finally, we will talk about the owners equity .Net worth is what is left over after liabilities have been subtracted from the assets of the business. In a sole proprietorship, it is also known as owners equity. This equity is the investment by the owner plus any profits or minus any losses that have accumulated in the business.

3
Marketing..

Competitors : No competitors, because this idea is not available in Arabian gulf countries, its new idea to use this technical in Arabian gulf . Market strategy : From our new business we will create new technique that we will serve high income restaurant . We will apply the E-menu that will eliminate the waiter. This high level of service will create professional design because we want response from customer to come a lot to cover our cost ,gain profit, loyalty, and tell others about our business to have more and more customer. Market positioning : We use the differentiation that we offer unique services, More benefits with more price and We can offer services for People with special needs. Sales forecast : Forecasting can be broadly considered as a method or a technique for estimating many future aspects of a business or other operation. There are numerous techniques that can be used to accomplish the goal of forecasting. One of these methods is moving average . we use moving average to predict the our sales for the coming year . The sales data are presented in the table below :
t 1 2 3 4 5 6 7 8 9 observed A(t) forecast error deviation percent 4000 4000 5200 3000 4050 5000 4300 4050 950 950 19% 3500 4175 4300 -800 800 23% 2500 3500 4175 -1675 1675 67% 3800 3700 3500 300 300 8% 6300 4025 3700 2600 2600 41%

Time Series Plot of observed

70000 60000 50000

observed

40000 30000 20000 10000 0 1 5 10 15 20 25 Index 30 35 40 45

As we see from this graph that the sales fluctuated because in the first year not many people know about our product and how it will be an effective for them .

Time Series Plot of A(t)

50000

40000

30000

A(t)
20000 10000

0 1 5 10 15 20 25 Index 30 35 40 45

But when we put our prediction for the next year , we found these results that are presented in the graph above . For the forecast data , as we see in the graph above that our sales will increase from 5200 AED in week 3 to 46200 AED in the last quarter of the year specially in week 48 because we will make advertisement plan to show people our product . after that year we expect that we will gain a lot of profit from our product (MAGIC MENU )..

4
Operational plan..

Stage of Development : To date, market research has been completed and a lease has been secured .Equipment lease rates have been pre-negotiated and order commitments have been received from over two dozen businesses in the area. Marketing materials are in draft form as well. The next steps are as follows: Sign office lease within 30 days Complete leasehold improvements Sign equipment lease agreement and accept delivery of equipment Product training from equipment company Set-up equipment and test Finalize and print marketing materials Open for business Launch advertising and promotional plan.

Suppliers : Equipment : It will be cheaper to lease directly from the manufacturer than to go through an independent leasing company. Quality Control : Initially, as a sole proprietor, we will personally oversee all product output to ensure quality control. We will also train my support staff on what to look for and how to correct potential problems. Production Process: 1. Land and Equipment Requirements I have leased a 1,000 square foot factory space on Main Street as well as a internet system $1,800 per month. I will purchase Equipment Requirements , and store finishing for $ 371,920 . Leasehold improvements will cost 56,000 2. Inventory Control The computer system will keep track of industry activity. We will follow that up with regular manual checks. This is realistic considering our location is only 1,000 square feet. 3. Time Frame for Production All orders can be ready within 20 days. Larger orders will be queued and run after 30 days. Each job will be estimated individually.

Blog (website for the company): We areate a website for our company to help us in advertisement for our idea . this website contain a lot of details of how our business will be . This is the site of our company : http://magic-menu.blogspot.com/

Conclusion : In conclusion , by the improvement that we face every day we must always create new things that will make our life easier . That was the idea of our project (MAGIC MENU ) . it will serve a lot of people specially people who care about the time , and also it will help us in reducing the number of employees that we will need . if our company succeeds to achieve our objectives in the first two year we will expand our business to build a strong brand name .that all about our project and we hope that we reached to best work in this report.

References : http://smallbusiness.findlaw.com/business-finances/reading-a-balance-sheet.html http://www.enotes.com/forecasting-reference/forecasting http://www.rbcroyalbank.com/sme/bigidea/michaels.html