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<b>TON DUC THANG UNIVERSITYFACULTY OF BUSINESS ADMINISTRATION</b>

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<b>GROUP MEMBERS AND EVALUATIONName^Student</b>

Minh Chau

<b>● Chapter 2 (2.1.5; 2.2)</b>

<b>● Chapter 3 ● Chapter 4 (4.2.4)● Chapter 5 (5.1; </b>

<b>● Chapter 4 (4.2.3, 4.3)</b>

<b>● Conclusion and recommendation</b>

3 Do Ngoc Anh ^720I0434

<b>● Chapter 2 (2.1)● Chapter 5 (5.1; </b>

<b>5.2)● Create </b>

<b>PowerPoint● Synthesize report</b>

4 ^{Nguyen Thuc}Khanh

<b>● Preface ● Chapter 4 (4.1; </b>

<b>4.2.1, 4.2.3)● Conclusion and </b>

5 Dinh NguyenGia Dinh

<b>● Chapter 1● Chapter 5 (5.3)</b>

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<b>● Create PowerPoint</b>

<b>CHAPTER 1: CASH FLOW ANALYSIS EXERCISE...7</b>

<b>CHAPTER 2: OVERALL OF THE PROJECT...11</b>

2.1. Project description...11

2.1.1. Overview of the project...11

2.1.2. The related parties...11

2.1.3. Timeline of the project...12

<b>CHAPTER 3: DRAFTING THE PROJECT...18</b>

3.1 Outline of the main phases of the project...18

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3.2 General approach and methods...19

<b>CHAPTER 4: PROJECT ANALYSIS AND EVALUATION...20</b>

4.2.3. SWOT evaluation and competitiveness of the coffee shop...27

4.2.4 Analyze and evaluate the financial feasibility of the project...30

4.3 Project risk analysis...33

4.3.1 Investment-related cash flow...34

4.3.2 Risks of reinvestment and debt settlement...34

4.3.3 Market purchasing power risk...35

<b>CHAPTER 5: ORGANIZING, PLANNING, AND IMPLEMENTING PROJECT... 36</b>

5.1 Organization of the project...36

5.1.1 Project organization structure diagram...36

5.1.2 General responsibilities of department/position in the organizational chart...36

5.1.3. Work Breakdown Structure (WBS) and Responsibility Matrix...38

5.2 Project planning...42

5.2.1. The analysis of Gantt chart...423

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5.3.6. Organize removal procedures and documentation...53

<b>CONCLUSION AND RECOMMENDATION...55</b>

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<b>TABLE OF FIGURES</b>

Figure 1: Model of the PM COFFEE space...13

Figure 2: Management team's structure...36

Figure 3: Business team's structure...36

Figure 4: Work Breakdown Structure...39

Figure 5: The Gantt chart of PM Coffee project...45

Figure 6: Customer relationship management...49

<b>TABLES</b>

Table 1: Cash Flow 2...7

Table 2: Calculate NPVs...8

Table 3: Calculate Payback period...9

Table 4: Calculate Profitability Index...10

Table 5: Type of products...11

Table 6: Total capital of the project...15

Table 7: Brief After prediction of initial investment costs...16

Table 8: Detailed price list of products...24

Table 9: The number of employees and salaries...30

Table 10: The fixed cost...31

Table 11: The adjusted cost...32

Table 12: The NPV of the project...33

Table 13: Responsibility Matrix...42

Table 14: Job description and analysis table...44

Table 15: Detailed budgeting table...48

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In the first place, in order to carry out and successfully complete the subject of Project Management and the final report <b>"PM COFFEE"</b>, our team has received a lotof help and facilitated advantage from Ton Duc Thang University. In particular, we would like to express our sincere thanks to Mr. Nguyen Chinh Quang – our lecturer, who directly guided and accompanied our team throughout the process of completing this course and this report.

As well as all of us know, coffee is a familiar and almost indispensable drink in today's world, associated with the Vietnamese people's long-standing culture and tradition. In this industry, the amount of customer demand and the potential market is large, so many startups always want to step in. Currently, students and office workers need a space to study, work and stay open 24 hours. To solve this problem, PM COFFEE was born with a commitment to being a cafe that never closes for busy people. Besides, PM COFFEE offers a spacious, and lovely space suitable for studyingand teamwork. We are so fortunate when studying the subject Project Management so that we can contribute efforts to implement this project for the social community.

Our project “PM COFFEE” is made based on the efforts of the team members as well as the references, lessons learned from books, research works, and information from news sites... In the process of implementation, although we have tried our best, because of limited knowledge and lack of practical experience, it is difficult to avoid shortcomings. Therefore, we are looking forward to receiving your attention and comments to improve this report.

Finally, we wish you all good health and good work. We sincerely thank you!

Sign

<b>Team PM Coffee</b>

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<b>CHAPTER 1: CASH FLOW ANALYSIS EXERCISE</b>

Based on the Cash Flow that the proposal gives, our team decides to choose cash flow 2 to do this task. Therefore, we apply the profitability models to evaluate investment opportunities:

Table 1: Cash Flow 2

<b>1. Net Present Value (NPV): </b>

Because we have a required rate of return of 10% with an inflation of 5% so we calculate.

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Project Initial cash investment NPV

<b>- It is the number of years required to repay the initial investment. </b>

- Fomulas: Payback Period = Initial Investment / Cash Inflow per Period

Project A Project B Project C Project D

Cumulative

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Table 3: Calculate Payback period

Payback:

Project A 2 = 2 + 50/300 = 2.17 yearsProject B 2 = 2+ 100/400 =2.25 yearsProject C 1 = 1 + 150/150 = 2 years Project D 2 = 2 + 50/250 = 2.2 years

<b>→ Project C is the best opportunity.3. Profitability Index of those opportunities:</b>

- Fomulas: Profitability Index (PI) = 1 + NPV/I0- Note

When PI > 1.0, NPV > 0: the project is worthwhile.When PI = 1: investable.

When PI < 1: the project is inefficient.

Project Initial cash investment PI

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C (300) 1.14

Table 4: Calculate Profitability Index

In summary, our team found that Project D fits all the criteria set by our team through the process of calculating NPVs, Payback period and Profitability Index.

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<b>CHAPTER 2: OVERALL OF THE PROJECT </b>

<b>2.1. Project description2.1.1. Overview of the project</b>

- Name of the project: PM COFFEE

- Type of the project: Business plan providing beverage service- Type of the products:

Black coffee Peach green tea Black sugar pearl milk tea Mochi cakeMilk coffee Strawberry tea Matcha milk tea Tiramisu cake

Capuchino Hibiscus tea Grass jelly roasted milk tea Macaron cakeCacao coffee Watermelon tea Roasted oolong milk tea Donut cake

Table 5: Type of products

<b>2.1.2. The related parties</b>

- Project owner: Project team, including 05 members of the Project Management Classat Ton Duc Thang University

- Target customers: Students of Ton Duc Thang University and surrounding areas in District 7, who want a quiet space to study and research exercises. Besides, there are people who want to meet or talk with their friends.

- State management agency:

+ Business Registration Office - Ho Chi Minh City Department of Planning and Investment (registering for a business license)

+ Food Safety and Hygiene Sub-department of Ho Chi Minh City (certificate of food safety)

+ The suppliers: Trung Nguyen Legend Coffee, Chinh Son Tea Company Limited, ABC Bakery.

+ Landlord: Mr. Long - real estate agent at S. Home Company

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Table 7: Brief After prediction of initial investment costs

d) Employment

As PM coffee will open 24 hours a day so we will have 3 shifts per day 2pm, 2pm-8pm, 10pm-6am) so we assume that we will need 1 manager, 1 security guard and 2 service staff for each shift, the coffee shop also demands to have 1 accountant for the shop. Theresore, in total, there will be 13 hired employees:

(6am-3 managers6 service staff3 security guard 1 accountant

<b>2.2. Objectives</b>

<b>2.2.1 Project objectives</b>

- Customer target: Having an average of 100 customers in the shop and 100 online orders a day, of which 40% of customers will come back the next time after experiencing the service of the shop.

- Marketing target: Advertising the shop's image to customers by taking advanataage of the social media and promotional campaigns.

- Environmental target: Building a comfortable environment to socialize and relax, at the same time ensuring an ideal space to study and work for the customers.

- Products target: Trying to research and create new drinks and develop seasonal products, along with guaranteeing the quality of each drink and dessert in the shop to be able to satisfy the needs of customers.

- Suppliers target: Creating a professional reputation to the suppliers and partners for the long-time cooperations.

- Service target: Making sure each staff must have a friendly and enthusiastic attitude to welcome and be ready to serve customers. Moreover, PM COFFEE will make drink

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deliveries through applications such as Grab, ShopeeFood, Baemin,...for remote customers.

- Project progress: The members of the PM Coffee project must complete the project atthe perfect level on schedule and set up an appropriate time budget for each stage and each task.

- Revenue: Gaining the set expected revenue; continue to maintain and expand the market.

- Cost: Controlling and optimizing costs to bring quality products at reasonable prices and provide clear specific solutions for financial risks.

- Human resources: Ensure staffs are well trained, avoid making mistakes; and take themost advantage out of the human resources.

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<b>CHAPTER 3: DRAFTING THE PROJECT</b>

<b>3.1 Outline of the main phases of the project</b>

To complete the PM Coffee project as best as possible, our team drafted this project and divided it into 3 main implementation phases:

<b>a) Conception phase: from 1-Oct-2022 to 30-Oct-2022</b>

Planning the concept and scale of the shop

Analyzing the market, competitors, and the customer's demandAnalyze project using SWOT method

Analyzing the financial viability of the capital

<b>b) Definition phase: from 31-Oct-2022 to 6-Dec-2022</b>

Choosing the location of the cafe's premisesMaking Financial planning:

+ Capital structure and the need for initial investment capital+ Working capital needs

+ Employee salary expenses by month/quarter/year

+ Forecast of expected revenue and operating expenses in 1 year, 2 years, 3 years, etc.

Making plans to manage and operate the cafeMaking marketing plan for coffee shop

<b>c) Execution phase: from 7-Dec-2022 to 1-April-2023</b>

Selecting suppliers

Buying the shop design and recipesSigning all kinds of contracts with suppliersBuilding menu, and serving process

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Collecting raw materials

Constructing the facilities and buying furniture and other necessary itemsAsking for a business license and food safety certificate

Making employee management planHiring and training the staffs

Officially put into operation in the actual market

<b>d) Operation phase: from 2-April-2023 to 1-April-2027</b>

Evaluating the shop's activitiesEnhancing services and products

<b>3.2. General approach and methods</b>

PM coffee is a passionate project of our team and throughout this project, we have used a lot of methods to be able to build the project and manage it.

From the first steps, to be able to come up with ideas and build this project, we had to research and collect information through reports, websites, magazines as well asrefer to the opinions of experts.

Next, to better understand the market, competitors, and customer needs, we conducted a survey based on the Google Form platform and invited people to participate in through social networking sites such as Facebook.

Then, from the information and the survey responses, we proceed to evaluate our project through the SWOT model to know the feasibility and risks so that we can make project management plan.

At the same time, we also adopt quantitative methods that can calculate indicators such as total cost, expected revenue, and payback period, to assess the financial viability of the project, as well as using Cost Engineering to make the budget table of the project.

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In addition, Work BreakDown Structure (WBS) and Gantt Chart are also used so that we can easily divide the tasks and manage the project progress effectively.

Finally, to measure performance against objectives we will use the rating chart.

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<b>CHAPTER 4: PROJECT ANALYSIS AND EVALUATION</b>

<b>4.1 Market analysis:</b>

In this section, we have collected more than 100 surveys of students and residents living in the Kim Son residential area. Based on the survey results, we can analyze the market, offer suitable products, and set the prices.

<b>4.1.1 Market demand</b>

Currently, people come to the coffee shops not only for refreshments but alsofor many other purposes such as studying, working, and talking with friends, ... Thesurvey showed that most of them usually go to a coffee shop more than 3 times aweek, about 60.8%. The second place belongs to the group of people who go to thecoffee shop to study 2 to 3 times a week, around 25%:

My team has come to some impressive conclusions based on a survey of students’ needs for an ideal learning cafe. According to 81% of respondents, the first and most important factor that influences customers' decision to use a coffee shop is a reasonable price. Next, customers' demand for studying and working in cafes open 24 hours a day is quite high, accounting for 75.2%. However, this inadvertently creates a bit of difficulty for PM Coffee because opening a shop overnight is relatively complicated. Silence is indispensable if you want to focus on studying, it is not surprising that it ranks 3rd and accounts for 70.2%. In addition, we also received many

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other requests, such as for friendly staff, on-trend and allowed pets at 24.8%, 20.7%, and 14.9%, respectively:

<b>4.1.2 Potential customers</b>

It can be seen that the need to find a suitable cafe for studying and working withyoung people is very high. The evidence is that 62% of search demand is in the 18-25 age group, which is the age of university students. In addition, the proportion of working people is also relatively high, about 29.8%:

Since PM Coffee's customers are mostly students, the price must be

inexpensive. Here, most people accept prices below 30.000 VND. At such a reasonableprice (around 30.000 VND), PM Coffee make sure that we will provide a delicious andnutritious menu while ensuring prices and hygiene for students:

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<b>4.1.3 Competitors</b>

In the Tan Phong area in general and the Kim Son residential area, regular customers will go to Ong Bau restaurant. The proof is that the rate of this restaurant is 39.5%, accounting for the highest proportion in the competitor chart. Mr. Bau providesall the following convincing factors: quiet, reasonable prices, diverse drinks, and open 24 hours, ... The lowest is Open Glass, with a 26.9% rate, despite the reasonable price, but the shop does not serve after 11 p.m., which causes Open Glass to lose many customers:

In summary, through the survey of more than 100 students at Ton Duc Thang University and people of the Kim Son residential area, we give the following conclusions:

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The need to find a suitable coffee shop for students has relatively strict regulations.

Minimum requirements must meet the criteria: being open 24 hours a day, having reasonable prices, and having a quiet space.

The price is suitable for students, so it is less than 40,000 VND.Coffee shops that meet the above criteria will be loved by most students and working people, for example: Ong Bau, Bamos, Open Glass...

<b>4.2. Project analysis4.2.1 Product analysis</b>

With the strategy of diversifying products, to create more choices for customers, PM Coffee has released coffee, milk tea, fruit tea, and dessert. Besides, the above products all ensure food hygiene and safety, suitable for daily consumption. To avoid confusing customers, we specially train knowledgeable cashiers to advise customers on the right products for their needs when choosing.

PM Coffee offers a variety of drinks and cakes, with different prices to suit the needs of many customers. However, most still fluctuate at a level enough for students to pay:

<b>No.ProductsUnitSales price (VND)</b>

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6 Strawberry tea Glass 25,000

9 Black sugar pearl milktea

11 Grass jelly roastedmilk tea

12 Roasted oolong milktea

Table 8: Detailed price list of products

<b>4.2.2 Supplier analysis</b>

Suppliers play an important role in the success of a business. Creating good relationships with quality suppliers will bring great benefits to importers. However, finding a suitable material supplier for PM Coffee is not easy. We must ensure the factors of a reasonable price, quality materials, and other requirements of the contract.

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Through searching and consulting with friends and other coffee shops, we have selected a few ingredient suppliers for PM Coffee:

a) For coffee products: We choose supplier Trung Nguyen Coffee

Trung Nguyen is the largest coffee brand in Vietnam. With more than 25 years of experience, Trung Nguyen has developed a chain of large and famous coffee shops in Vietnam and some other countries around the world. So, the quality of the coffee ingredients is not in dispute. The process of picking 100% fully ripe coffee by hand, natural fermentation with strict brewing conditions, international standard roasting, testing, and tasting in batches to ensure the best quality products reach people for consumption in addition, the source of premium, carefully selected coffee materials, ingenious mixing recipes, and modern production technology have brought quality and prestige to Trung Nguyen for more than 25 years. Trung Nguyen Coffee has become one of the coffee suppliers for PM Coffee. We guarantee that each cup of coffee delivered to our customers will be made from delicious coffee beans.

The types of Trung Nguyen coffee that PM Coffee imports are:Whole-roasted Trung Nguyen coffee

Whole bean Trung Nguyen coffee

b) For fruit tea and milk tea products: We choose supplier Chinh Son Tea company limited

Chinh Son is a tea company with nearly 20 years of experience. Supplying green tea, black tea, oolong tea, matcha, sencha, genmaicha, houjicha, and instant tea,to business agents throughout Vietnam. Chinh Son's tea leaves are required to meet quality standards through the following criteria: Organic, environmental, and safe. In there:

Organic: all virgin areas selected by Chinh Son must be cultivated with 100% organic technology.

Environment: Chinh Son understands that for sustainable development, itis necessary to protect the environment for the social community

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Safety: All products of Chinh Son are only put on the market when they have been censored for the absolute health and safety of users.

Currently, PM Coffe is importing the following items:

Japanese tea: modern tea, suitable for office workers, students, and students.

Tea cakes, tea ice cream products with modern Japanese style.Basic types of tea such as oolong tea, green tea, lotus tea, and jasmine tea.

c) For dessert: We choose supplier ABC Cake Company

Today, ABC Bakery has more than 30 stores not only in Ho Chi Minh City but also expanding to other provinces such as Dong Nai, Binh Duong, Tien Giang, ... Not only that, but ABC bakery is also gradually asserting and identifying itself with the Southeast Asian market with the initial presence of a branch in Cambodia.

As a brand known for its quality and delicious products from bread, cakes, cakes to other products, ABC Bakery always has a wide variety of items at reasonableprices. Maintaining the tradition of product quality, besides constantly improving methods, and applying advanced techniques, ABC Bakery always wishes to develop to meet more and more increasing demands of consumers.

Some products at ABC ensure all 3 criteria: no refined sugar, no preservatives, and no food additives. So, customers can feel secure when experiencing PM Coffee's pastry products without worrying about the price and quality of the cakes.

<b>4.2.3. SWOT evaluation and competitiveness of PM COFFEE</b>

a) The market overview

The most common option for both men and women when finding thr locations for leisure, studying, and working among young people is a coffee shop. One of the reasons is Vietnamese typically drink coffee. According to the International Coffee

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Organization (ICO), Vietnam is a second-world coffee exporter, accounting for about 10% of the export turnover of the country.

In addition, coffee symbolizes both a distinct culture and the normal way of life of Vietnamese people. Consequently, the coffee market is a challenging but lucrative one for startups.

- Besides that, prices of goods are in line with students' abilities, and several student-specific discounted schemes are available.

- Having a reliable source of food and drink on the market, so people don't have to be concerned about the product's quality or the labor used to manufacture the products.

- Students can reserve rooms to study more privately in groups. You will receive a 10% discount, making PM Coffee unique and more alluring than other coffee shops, especially when making reservations and making full purchases in groups of more than5 persons.

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- Human resources in the service industry are not few, but experienced, skilled, and high-quality human resources are not many. Most of the staff working at the cafe are students, students, and young people in general. Although they are dynamic, flexible and have enthusiastic friends, they have not been trained much. The selection and training of human resources are one of the difficulties when opening a cafe that you need to face.

- Opening a cafe is more expensive because the raw materials of coffee beans also have a higher price than other drink ingredients, especially roasted coffee. This is considered a big difficulty when opening a cafe that PM Coffee needs to face, calculate it reasonably.

- Products will easily appeal to tastes with a varied and well-researched menu.- Concentrate on the caliber of the food and drink. Additionally, by continually attending to customer needs, businesses will have the chance to draw in new clients.

- Few cafes on the market provide bookable rooms for conferences and study groups, thus PM Coffee's investment in bookable rooms will set it apart from the competition, especially when PM Coffee seeks out young people who come to the areato study, work, and communicate with each other.

- When growing the market, one factor that must be considered is the price of food and beverages. In Kim Son residential area, there are many cheap coffee shops for students and have been open for a long time such as Ong Bau, Open Glass, Lalo... Therefore, the competitions of PM Coffee is extremely huge.

- Coffee is a popular drink but difficult to please people. Although coffee is a popular drink, it is difficult to prepare and has the most diverse flavors. Just change a little of the ingredients, a little bit of quantity or the coffee beans are not ripe, the coffee is not roasted properly, and the taste of the coffee cup has also changed. Each

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