Actividad de proyecto 15

Actividad de aprendizaje 1: Aplicar las formas de pago y reembolso para la

organización en las operaciones de importación y exportación teniendo en

cuenta los acuerdos y normas de comercio internacional

Business Plan Analysis

Globalization, as we have already seen and mentioned, has allowed many companies to
participate in the international market. Therefore, when considering getting involved within this
market, it is important to think about the way in which our company can compete in such market
to get the expected positioning which, in the end, will be the key aspect to develop a steady and
lasting growth for any company. In this context, commercial proposals are essential when being
introduced in a new market. Having a good commercial proposal can become the first step in the
ladder of success. That is why, every company should pay special attention to this process as
commercial proposals are reflections of the analysis of the current state of a company.

Thus, regarding the importance of commercial proposals as well as the importance of speaking
English as a second language, complete the following workshop which, in turn, will help you to
reinforce he knowledge you have on the internal structure of a commercial propose and the
elements you need to have in mind to develop a successful one.

1. Download the file called "Airport Café" which is available as complementary material for the
current Learning Activity.

2. Based on “Airport Café- Business Plan Sample” answer the following questions:

• What type of business is “Airport Café”? A sole Trader? A partnership? A limited Company? A
franchise? Explain.

The Airport Café is as the name implies, a place where the passenger traffic of an airport can
consume food, and drinks such as coffee, tea, among others, all with high quality standards and in
a comfortable environment, allowing the user to enjoy and rest from the shake of a long
journey, or a long wait.

As seen in the reading, it is clear when they say that the only owners of the Airport Café 100% are
Mr. and Mrs. Smith, this can be understood as a partnership between these two people. The
Airport Café Limited is owned 50% by Mr. Smith and 50% by Mrs. Smith

• Does this business plan provide information about short-term and long-term financial goals? Is
this information important in a business plan? Explain.

In the short term the Airport Café, wants to finance growth mainly through working capital. The
Airport Café Search will aim for a net profit before interest and tax of at least 14% from the second
year of trading. In the long term, Airport Café expects revenue beyond projected sales to invest in
withdrawing debt ahead of time and that revenues will approach projected over a term of
approximately 5 years
Of course, it is important, because according to what is projected, the indicators can also be
formulated, which are key to measure the performance of the organization and be able to
evaluate how profitable according to what is projected to be, it also allows to see the possible
problems that can arise which will allow to take actions of improvement or corrective if it were the
case.

• What kind of information is provided in the executive summary? How is this information
useful in an International Business Plan?

In the executive summary, you can see a review of how the Airport Café works, its way of
operating, making a comparison against other platforms of the airport. Of course it describes the
success it has had, establishing that this is due to the quality of its products, the type of service
that is provided to customers, marketing, having a great location near the exits, area of high flow
of people; as well as the management they perform for keeping high quality products at low costs,
being more affordable for buyers; it also reviews the economic part of what needs to be invested
in order for the Airport Café to function properly, showing the value invested and the value to be
borrowed; on the other hand they describe how leases involve an important financial point of
negotiation, since when an agreement is reached it will benefit the business and overdrafts can be
avoided.

While it is true that an organization's product gives it transactional value, for international trade to
be a success, it is important to develop a specific international business plan, for this it is key to do
the necessary research, invest in resources and relationships to increase potential buyers, as well
as conduct a detailed review of what is intended to be reflected in the business plan

• Why did they include information about Lease terms and Suppliers? How is this information
relevant?

Among the information they reflect we talk about leases, because this is an important canon to
know for the investment that should be made, also refers to the time spent in the premises and
the premiums that must be paid for them. Against the issue of suppliers, it is important to show
that it is clear how to maintain the stock demanded by the four main suppliers, however, they also
have as contingency plan six more suppliers, demonstrating the organization and planning for the
operation of the Airport Café to be continuous.

All this information is relevant, because it explains in detail the functioning of the business, not
only of its brand and the products they offer, but in turn show what its financial perspective is like,
explain in detail what statistics are based, such as its financial, operational, logistical and human
talent operation, and of course this when making decisions either investment, budget changes,
expansion and market escalation is totally relevant.

• What elements are included in the market/competitor analysis? What is this information
useful for the future investors?

It refers to the privileged location of the Airport Café near the exit gates and close to the food
corridors, which gives it an advantage over those of the most bidders, as well as makes a profile of
potential consumers and because the Airport Café could take precedence in the plaintiffs. On the
other hand, they also describe the type of food to offer, meeting the gastronomic needs of
traditional British food.

The information is useful for future investors, as it shows them the real picture not only
of competition, as well as all possible future options versus percentage of profit, possible loss and
trade stagnation.

• Being able to market and sell your product/service cost-effectively is one of the most
important aspects of running a business. Promoting your business tells potential customers that
you exist and entices them to buy more. Does “Airport Café” provide evidence of promotion and
competitive methods? Explain.

Based on the information they show, we consider that it broadly encompasses these two
concepts of promotion and competition, as it shows projections with great favorability to be
fulfilled, as well as great potential for service and product to compete with the other food chains
with which they share the population in demand

• Having a good understanding of the financial side of your business right from the start will
increase your chances of success. Based on the financial forecast that “Airport Café” provided, is
it possible to establish their breakeven point (which is when the amount your business sells
matches what it spends)? Explain.

Depending on the equilibrium position explained by the Airport Café, they can reach it as long as
they reach a fixed monthly cost of 57,873 euros and a variable cost per customer of 5.70 euros,
which is very feasible to achieve taking into account the projection of consumption divided
between drinks and food the average expense of the customer is 12.54 euros; and even if the
projection was based on the most common and minimum expenditure which is 8.89 euros;
therefore, these product consumption revenues coincide and are well above what is projected and
required to maintain the balance point

• If it were up to you to invest on Airport café, would you invest on them? Why?

If it is objective and observed from the current perspective, although it is a profitable business and
with a high and constant demand for the projections they present in their business plan, we
consider that it is not a very viable investment today due to the Pandemic landscape, a situation
that has echoed in all economic sectors and which precisely because of mobility restrictions could
drastically affect sales behavior in the Airport Café