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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
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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.
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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.
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Decorating: the purchase of building materials and the labor cost for the new shop would be RMB120, 000. FLOORING 20,000 LABOUR COST CEILING 7,000 60,000

LIGHTING 95,000 LUMBER PAINT 5,500

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 CONSULTANTS FEES 1,000

1,000

TOTAL COST OF PROJECT INITIAL COSTS: DECORATING 120,000 EQUIPMENT 71,000 SUB-TOTAL 191, 000

RECURRENT COSTS: OPERATING BUDGET SUB-TOTAL 56,000 16,000

RENTAL 40,000

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 2% of the annual profit

Contingency allowance

Unit 4 Project Framework

Narrative Summary indicators Goal or Aim and meet student demands for better and wider services Purpose or

Objectively verifiable To establish a Student and

Sources of information Opinion survey staf opinion project implementation

Assumptions and risk

new stationery

two years after

1.To increase Revenue and

Stationery 17

Objectives profits by 20%and 30% respectively within 2 years 2.To raise the profile and improve

revenues and profit figures

financial records

Increased number of student.

Stationery records

competitiveness of the stationery shop within 2 years. Outputs new premises 2.Additional services on offer, these include: "Comfortable sofas *Photocopying stationery to 3.A functioning Regular group of staff and student consultants advice on stock and services Minutes of consultant group meeting stock is correct new shop new services operational and in regular use stationery shop sales staff are records competent and honest 2.The new department store appears 3.That the advice on new 1.Large enough Existence of Observation 1.That the

Narrative verifiable summary are I negotiate

Objectively indicators

Sources of Assumptions Information And risks Project 1.That there agreement diary interruptions and delays to the decorating of the shop 2.That the contractor uses good quality

ACTIVITIES 1.Identifdy and 1.Rental

implementation no rental of new signed premises 2.Design new 2.Design given stationery shop layout 3.Order furniture 3.Orders materials
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to contractors

equipment and placed

4.Install equipment in new shop 5.Order new stock 6.Train new staff 7.Hold opening ceremony 8.Identify consultant group of staff and students 9. Hold initial consultants group meeting INPUTS Additional to sales staff lend the money display shelving Additional till bank the industrial and commercial Computer new as a loan from Human Equipment Photocopier Financial That the bank 247,OOORMB will be willing appointment 5.Consultants accept 4.Job offers made and contracts signed

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 CEILING 7,000 60,000

LIGHTING 95,000 LUMBER PAINT 5,500

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 CONSULTANTS FEES 1,000 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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