Locutionary Act Definition in Speech-Act Theory

Locutionary Act Definition in Speech-Act Theory In speech-act theory, a locutionary act is the act of making a meaningful utterance, a stretch of spoken  language  that is preceded by silence and followed by silence or a change of  speaker- also known as a  locution or an  utterance act. The term locutionary act was introduced by British philosopher J. L. Austin in his 1962 book, How to Do Things With Words. American philosopher John Searle later replaced Austins concept of a  locutionary act with what Searle called the propositional act- the act of expressing a proposition. Searle outlined his ideas in a 1969 article titled Speech Acts: An Essay in the Philosophy of Language. Types of Locutionary  Acts Locutionary acts can be broken into two basic types: utterance acts and propositional acts.  An utterance act is a speech act that consists of the verbal employment of units of expression such as words and sentences, notes the  Glossary of Linguistic Terms. Put another way,  utterance acts are acts in which something is said (or a sound is made) that may not have any meaning, according to Speech Act Theory, a PDF published by Changing Minds.org. By contrast, propositional acts are those, as Searle noted, where a particular reference is made. Propositional acts are clear and express a specific definable point, as opposed to mere utterance acts, which may be unintelligible sounds. Illocutionary vs.  Perlocutionary Acts An illocutionary act refers to the performance of an act in saying something specific (as opposed to the general act of just saying something), notes Changing Minds, adding: The illocutionary force is the speakers intent. [It is] a true speech act such as informing, ordering, warning, undertaking. An example of an illocutionary act would be: The black cat is stupid. This statement is assertive; it is an illocutionary act in that it intends to communicate. By contrast, Changing Minds notes that perlocutionary acts are speech acts that have an effect on the feelings, thoughts, or actions of either the speaker or the listener. They seek to change minds. Unlike locutionary acts, perlocutionary acts are external to the performance; they are inspiring, persuading, or deterring. Changing Minds gives this example of a perlocutionary act: Please find the black cat. This statement is a perlocutionary act because it seeks to change behavior. (The speaker wants you to drop whatever you are doing and go find her cat.) Speech Acts With Purpose Locutionary acts may be simple utterances devoid of meaning. Searle refined the definition of locutionary acts by explaining they should be utterances that propose something, have meaning, and/or seek to persuade. Searle identified five illocutionary/perlocutionary points: Assertives: Statements that may be judged true or false because they aim to describe a state of affairs in the worldDirectives: Statements that attempt to make the other persons actions fit the propositional contentCommissives: Statements that commit the speaker to a course of action as described by the propositional contentExpressives: Statements that express the sincerity condition of the speech actDeclaratives: Statements that attempt to change the world by representing it as having been changed Locutionary acts, therefore, should not simply be  meaningless bits of speech. Instead, they should have purpose, either seeking to bolster an argument, express an opinion, or cause someone to take action. Locutionary Acts Do Have Meaning Austin, in a 1975 update of his book How to Do Things With Words, further refined the notion of locutionary acts. Explaining his theory, Austin said that locutionary acts, in and of themselves, did indeed have meaning, stating: In performing a locutionary act, we shall also be performing such an act as: Asking or answering a question; Giving some information or an assurance or a warning; Announcing a verdict or an intention; Pronouncing a sentence; Making an appointment, an appeal, or a criticism; Making an identification or giving a description. Austin argued that locutionary acts did not need further refinement into illocutionary and perlocutionary acts. Locutionary acts by definition have meaning, such as providing information, asking questions, describing something, or even announcing a verdict. Locutioinary acts are the meaningful utterances humans make to communicate their needs and wants and to persuade others to their viewpoint.

Bird Flu Research Paper Example | Topics and Well Written Essays - 1000 words

Bird Flu - Research Paper Example Bird flu in humans is similar to the average influenza, so detecting it and diagnosing it can be, at times, difficult. Symptoms can be a bit more harsh than a typical flu and can sometimes lead to death in those with a weaker immune system. Like the average flu, bird flu can be passed from person to person; unfortunately, while the same medications used in the human influenza can be used to treat bird flu, the virus tends to become immune to the effects of the human influenza vaccine, making it helpless against treating the virus. There are also other varying viruses that come from the bird flu microorganism, so symptoms and the threats on life can differ between which type of virus the person has. Bird flu is a virus that is passed from system to system, whether it is by bird or human. Like all microorganisms, bird flu can be carried by means of hands, therefore being capable of being passed on by merely touching another person that has the disease. Bird flu shares many symptoms and traits to a normal flu, so it is spread in the same way. People need to be careful how they handle food, and make sure that they wash their hands after making contact with something that has had previous contact with other hands. This microorganism is a bacteria, so while it may not be seen, it can most definitely be present in an area. This microorganism is transmitted to humans through indirect and direct contact. While it cannot be caught while eating poultry that has been infected by the disease (Mohamed Saif, 2005), it can still be caught by touching surfaces that the poultry has been on or by making physical contact with a bird that has it. Indirectly, bird flu can be caught in the same way as other diseases that are passed on by humans. The microorganism is found in birds and can be passed down to humans; its original environment is within the

Political Science Chinese Nationalism as topdownbottomup phenomenon Essay

Political Science Chinese Nationalism as topdownbottomup phenomenon - Essay Example There are waves of nationalism that move from the grass-roots to political leadership, and waves that move in the opposite direction. One of the major challenges for the twenty-first century will be finding ways to channel the energies of the world's most populous nation into positive directions. There are many perspectives on the potential motivations, and possible outcomes, of Chinese nationalism. There are some that see this movement as a "reckless movement driven by China's traditional Sino-centrism and contemporary aspirations for great-power status" (Zhao, p. 131). Bernstein and Munro conclude, for example, that China is "[d]riven by nationalist sentiment, a yearning to redeem the humiliations of the past, and the simple urge for international power" (Bernstein and Munro, p. 19). This has led the Chinese to demonstrate with particular urgency against the United States, whom it wishes to replace as the dominant power in Asia. One example of this would be the massive demonstrations in front of the U.S. diplomatic missions in China after the mistaken bombing of the Chinese embassy in Belgrade by NATO forces under the command of the U.S. Western diplomats were shocked to find that the Chinese assumed that the bombing had been intentional (Zhao, p. 132). After a U.S. Navy s urveillance plane collided with a Chinese fighter jet over the South China Sea in April 2001, similar demonstrations broke out, with the Chinese pilot, Wang Wei, honored as a "martyr of the revolution" (Pomfret, p. A1). James Lilley's 2004 article in Public Affairs and Maria Hsia Chang's book Return of the Dragon: China's Wounded Nationalism are two examples of anxious observations of the fervent nationalism that has arisen at the end of the twentieth century, which was seen by many Chinese as one of humiliation. However, it would be short-sighted to describe the new Chinese nationalism as nothing more than emotionalism running rampant in the streets and squares of China. After all, the Chinese government has shown considerable skill in managing the public outbursts of its citizens. The idea that Suisheng Zhao has termed "pragmatic nationalism" refers to the ways in which the Chinese government actually organizes the shows of patriotism. This nationalism, according to Zhao, is a force used to "hold the country together during its period of rapid and turbulent transformation into a post-Communist society" (Zhao, p. 132). However, the leaders of China want peace and development, and they realize that if Chinese nationalism is perceived as being out of control, the ideals of political stability and economic development would be threatened, as other countries would tend to distance themselves from what they saw as an unstable situation. Nationalism is a relatively new phenomenon in Chinese culture, particularly given the ancient times in which the Chinese Empire began. The Opium War with Great Britain (1840-1842), however, was a disaster. China was occupied and incorporated into Western empires, and it was only at this point in time that

Struktura Inc Essay Example for Free

Struktura Inc Essay * Struktura, Inc. (SI) is a corporation owned by ALCO Group of Companies. * SI is practically a machine shop that manufactures car air-conditioners for Karkon others, steel frames for PGSEP and die casting needs of electronic companies. * 1987 Sales amounted P1. 32M of which roughly 72% are derived from other companies of ALCO. * PGSEP is also testing the solar home system (SHS), a stand-alone photovoltaic energy generation unit suited for a single household. SHS unit come in two variants: the 28 watt-peak (wp) and the other is 50wp. The components of SHS, except for the solar panels, were locally available. * PGSEP will be terminated by the year-end and is worried that their efforts in propagating the technology would be useless unless it identified a group to commercialize the project. * PGSEP invited Antionio Co, SI owner to inspect SHS and examine the possibility of commercializing SHS. PGSEP’s contract with the Philippine government disallowed PGSEP from commercializing the venture. * PGSEP Director offered Mr. Co the services of PGSEP staff if the latter will agree to making Burias community as the pilot phase. In 1987 there were 3. 3 million un-electrified households of which around 387,000 â€Å"un-electrified† households were living in Region V. * Mr. Co told his consultant that SHS is categorized as SI project and requested him to come up with recommendation Statement of the problem The company is considering whether or not to diversify its operations by venturing to assemble and market SHS units to un-electrified households of the country starting in Burias, Masbate wherein 120 customers are already on the waiting list. Objective * SI should analyze well the viability of the SHS project to Burias community and its potential acceptance to other un-electrified rural areas in the country considering that SHS is an emerging product. SI should come up with a thorough and objective project feasibility study.

literature :: essays research papers

In Alice Walker’s story â€Å"Everyday Use,† symbolism, allegory, and myth stand out when thinking about the characters, setting, and conflict in the story. The conflict is between the mother and her two daughters (Maggie and Dee). There is also the conflict between the family’s heritage (symbolized by the quilt, bench, and butter chum) and their different ways of life. Dee chose a new African name, moved to the city, and adopted a new way of life while Maggie and her mother have stay behind. The quilt (the most important symbol) represents the family’s heritage in that it is made of scraps of clothing worn by generations of family members. The quilt has been sewn by family hands and used on family beds. It has seen history and is history. Maggie and her mother see that that history is alive but Dee thinks it is as dead as her name. Dee does not see that name as part of her heritage. By analyzing these symbols, a number of possibilities for a theme can be seen. Walker could be suggesting that to understand the African-American heritage, readers have to include the present as well as the past. However, the theme could be that poverty and a lack of sophistication and education cannot be equated with ignorance. Lastly, she could be telling her readers that dignity or self-respect rise from and are virtually connected to one’s entire heritage- not just a selected part of it. Dylan Thomas wrote the poem â€Å"Do Not Go Gentle Into That Good Night.† It is about a son’s plea to his father who is approaching death. Two lines are repeated in the poem and addressed directly to the father. These lines structure the first stanza and collaborate as a couplet in the last. They are repeated a lot but each time, they have different meanings: statements, pleas, commands, or petitions. Repetition and rhyme scheme are parts of prosody in poetry. The rhyme scheme is built on two rhymes and forms of a pattern. The two rhymes are night and day and the pattern is aba, and in the last stanza, abaa. Even though the poem seems to have too much repetition, the fascinating imagery is more important and readers pay more attention to that instead.

Policy Priority Issue Essay

Policy Priority Issue Those who utilize the Medicaid system range from low income families to the over 65 age group. Within this population is also those who are disabled due to physical or mental problems. This is among the sickliest of our American population. A paper based on a study in Oregon stated that â€Å"Medicaid significantly increased the probability of being diagnosed with diabetes, and being on diabetes medication as well as high blood pressure and high cholesterol.†(Baicker et al., 2013, p. 1715). Much of this is due to the struggle that the Medicaid beneficiary has to accessing all of the benefits of the program. This mostly consists of medical appointments, especially those related to a specialist physician. This paper will identify the importance to make available proper healthcare to those who receive Medicaid. Not only with specialty doctors but also with their own primary physicians. The need to transfer the ownership from the government to the patient is necessary for better healthcare outcomes. This is directly correlated to the care received and expected by the patient. This will result in a better outcome both medically for the patient and fiscally for the government. The specific problem Medicaid is a government sponsored and run program, it provides care to over 53 million low income Americans yearly and has an average operating budget of $349 billion dollars (O’Shea, 2007). This increasingly high expenditure has caused much strained to the budgets of not only the federal government but also the state budgets as well. With the changes to the way we view healthcare and the use of evidence based practice in the care delivered it is evident that the quality of care given to those with Medicaid is missing. Evidence has shown that patient’s with Medicaid receive inferior care than those with private insurance based solely on the access they have to the Medical providers, especially those who provide specialty care (O’Shea, 2007). In a survey conducted in 2003, it highlighted that the recurrent problem is the reimbursement rate from Medicaid to the physician (O’Shea, 2007). The Center for Studying Health System Change (HSC) show that 21% of physicians that state they accept Medicaid have reported they will not accept a new Medicaid patient in 2004-2005(O’Shea, 2007). This number would only logically be assumed to have risen in 2013 A survey conducted by the U.S. National Health reported that researchers have found two standout trends among Medicaid beneficiaries: they have more difficulty getting primary care and specialty care and they visit hospital emergency departments more often than those with private insurance (Seaberg, 2012). The lack of primary and specialty care access is mostly contributed to the following barriers; unable to reach the MD by phone, not having a timely appointment with the MD and lastly unable to find a specialty MD that will accept Medicaid. In a recent report released by the Partnership to Fight Chronic Disease, it stated that about 30% of Medicaid patients experience â€Å"extreme uncoordinated care†, there is a strong correlation between this situation and higher Medicaid spending and less quality of care given (Bush, 2012). After January 1st 2013, healthcare providers have experienced a 2% reduction in payments for Medicaid beneficiary, this will only create more of a problem for these patients to seek the care thy desperately need. The question must be asked, how can we give the care necessary to those with Medicaid and also make this as cost effective for the providers seeing the patient as well. Steps to Change There is much conversation in government today that would expand the Medicaid program, but there is no discussion on payment to physicians, hospitals and other providers, which is the main problem at hand. A system that would most be beneficial is one that is centered on the patient-doctor relationship (Felland, Lechner, & Sommers, 2013). This would not only improve the standard of care given to the patient but help with the fiscal decline related to a very broken system that is presently in place. Our aim should be to stop the decision making from the government, and transfer this power to the individual as well as promote individual responsibility for healthcare choices. A policy that would restructure the financing of healthcare to assist low-income families and medically needy Americans to purchase coverage that would best meet their needs and their medical situations. This approach would need to be Nationwide and would be a great undertaking to accomplish. The rational approach model would be the model of choice for this type of change. It would take many years to accomplish based on financial barrier as it pertains to the various budgets at the state and federal levels. However, the end result would be that a personal ownership of health insurance, and control over the flow of dollars in the health care system, this will enhance personal responsibility. Another aspect it would accomplish would be that patients would demand and receive better value for health their care dollars. This ownership of their own care would raise much awareness in the patients and facilitate many quality conversations with their healthcare provider. This is an opportunity currently unavailable to patients enrolled in the Medicaid program and has resulted in a system that does not give quality care and the costly price to the government is evident. Until we can have all 50 states participating in this policy change Nationwide, there are some steps that can be taken with the present system in place. These would involve the use of technology in interesting situations. If you cannot get the patient to the physician, regardless of primary or specialty, bring the physician to the patient. Using telehealth programs would help identify problem before they are in need of emergency attention (Felland et al., 2013). Kentucky used this system to help with the overpopulated Medicaid system and this state was able to save money and provide quality care to those who are in need of it (Ungar, 2013). Another solution would be to expand the primary role of the primary provider. Utilizing the Advanced Registered Nurse Practitioner (ARNP) to take on the care of patients in the role of the Primary Provider would help ease the burden for the dwindling Medical Community (Felland et al., 2013). With only 7% of the graduating physicians choosing primary care a large strain is evident on the medical community to provide care to patients (Sellers, 2013). Both the above policy changes would best be suited under the stage-sequential model. Putting both of these changes in to place at the same time in multiple areas then re-evaluating the need for changes in order to define a process that could be utilized Nationwide would be important for success. Both of these policy changes would give way to better care for the Medicaid beneficiary, better outcomes and a use of funds that would be cost effective as well. Conclusion In conclusion this paper has reviewed the importance of change needed to the present Medicaid system. The present system has shown to take away the ownership of healthcare from the patient and given it to the government. In doing so several areas for needed improvement have been identifies; cost, lack of resources among physicians and most important below quality care. All resulting in a system that is not able to deliver quality care to those who are in desperate need of it the most. By implementing the changes outlined in this paper, it will be able to change and improve these barriers for the better, resulting in better patient care outcomes, better financial outcomes and a healthier America. References Baicker, K., Taubman, S., Allen, H., Bernstein, M., Gruber, J., Newhouse, J., †¦ Zaslavsky, A. (2013, May 2, 2013). The Oregon Experiment — Effects of Medicaid on clinical outcomes. The New England Journal of Medicine, 368, 1713-1722. Bush, H. (2012, November 2012). Caring for the costliest. Hospital and Health Networks, 156-162. Felland, L., Lechner, A., & Sommers, A. (2013, June 6, 2013). Improving access to specialty care for Medicaid patients: policy issues and options. The Common Wealth Fund. Retrieved from http://www.commonwealthfund.org/Publications/Fund-Reports/2013/Jun/Improving-Access-to-Speciality-Care.aspx O’Shea, J. (2007). More Medicaid means less quality health care. Retrieved from http://www.heritage.org/research/reports/2007/03/more-medicaid-means-less-quality-health-care Seaberg, D. (2012). Medicaid patients go to emergency room more often. Retrieved from http://www.ncpa.org/sub/dpd/index.php?Article_ID=21732 Sellers, A. (2013, July 23, 2013). Nur se practitioners aim to fill care gap.

Fresin Fries Bussiness Plan

Company Summary What is Fresin Fries? Fresin Fries sells  gourmet fries in a cone  with a   choice of sauce. We use the concept of Belgian Fries, where the fries are all made from fresh potatoes and fried twice. Our outlet also provides excellent and friendly customer service to support the ambience of fun, energetic and youthful lifestyle. Youthful and fresh surroundings We will imitate  successful establishments, such as Jamba Juice and Starbucks, which represent the majority of our core target market, between 18 to 35 years of age. Our store will feature display cooking of our featured Belgian Fries from cutting to frying. Our customers will also be able to read our in-house brochures in regards to all knowledge about Belgian Fries and our featured sauces. Our store will be decorated with fast food setting, such as a bright counter and display menu on the wall. Quality food Each  store will  offer nothing but freshly fried Belgian fries, sandwiches and variety of unique blend sauces, all served with old-fashioned home-style care. Open everyday Our store is open everyday from 10 am to 9 pm. Variety, variety, variety A different selection of sauces will be featured every three months and we will also change our Italian soda flavors to accompany our fries. . 1 Company Ownership Fresin Fries is a privately held company. It will be registered as a Limited company, with ownership 25% – Guy Fry, 25% – Sam Sauce, 25% – Carl Cone, 25% – Harry Hip. Guy Fry and Sam Sauce have more than 10 years of experience in the food industry. Both are currently employed as Corporate Staff of Co mpany A. Sam Sauce holds an MBA degree from University V. A true entrepreneur by heart, his latest entrepreneurial project is a diamond store in the heart of Singapore. Guy Fry holds a BA degree in Graphic Design from the Academy of Arts. His projects are widely varied from product design to brand development of several reputable companies. Harry Hip holds a MS degree from Institute Y. He completed several projects and served as project manager for multi-national companies in Singapore. Carl Cone holds a BS degree from University Z, majoring in Management and Information Technology. Prior to his return to Singapore, he has held several management positions in a U. S. -based IT company. 2. 2 Start-up Summary The retail outlet will be rented at one of the target location shopping malls. Our preference is Space A, for the main reason of reaching larger traffic. Startup requirements will be financed through owner investments. [pic] [pic] [pic] |Start-up | | | | |Requirements | | | | | |Start-up Expenses | | |Kitchen and Fixtures |$21,600 | |Furniture and Interior |$16,500 | |Legal |$3,000 | |Rent |$15,000 | |Packaging and Stationary |$8,500 | |Contingencies |$4,200 | Total Start-up Expenses |$68,800 | | | | |Start-up Assets | | |Cash Required |$50,000 | |Other Current Assets |$0 | |Long-term Assets |$0 | |Total Assets |$50,000 | | | | |Total Requirements |$118,800 | 2. 3 Company Locations and Facilities Fresin Fries locations will range in size from 50 – 70 meter square and will seat from  15 –  25 guests. Our first location will be on the larger end of this range. The location will feature its own originality in merchandise display and other brand building attributes. We will equip the outlet with modern furniture and  aim for  cleanliness  and an  open feeling. We are currently looking at several possible sites in shopping malls along Orchard Road. The space selection will be chosen based upon the following criteria: †¢ Community size: minimum of 800,000 people within a radius of 8 kilometers. †¢ Tourist destination. †¢ Easy access. †¢ Large percentage  of teenagers in the community. All of these qualities are consistent with Fresin Fries' goal of providing a top quality fast food experience. We want â€Å"word-of-mouth† to be our best form of marketing, where our customers value our brand as something exciting and cannot wait to tell their friends and neighbors. Fresin Fries will directly compete with several fast food joints inside the chosen shopping mall,  including Tori-Q (yakitori specialist), Bee Che Hiang (chinese sausages), Bread Talk (one of the most successful bakery franchises), and Pizza Walker (locally owned pizza chain). Products We want to focus only on selling fries. Alcoholic drinks will not be sold in our outlet, as Fresin Fries promotes a healthy and positive Singaporean lifestyle. Instead, we will offer Italian Soda  to complement the fries. In promoting  the  Fresin Fries  lifestyle, we will offer various merchandise  with our logo and colors, from hats to t-shirts to potato cutters to our signature sauces, so that our customers can enjoy Fresin Fries at home. Our signature sauce is exclusively manufactured by Company Q. They can be also purchased at selected retailers. 3. 1 Product Description Fresin Fries primarily sells fries and our  unique dipping sauces. Main products sold are: Belgian fries, Italian sodas and corporate merchandise. Belgian-style fries are available in large (choose 2 dips), small (choose 1 dip), with addition of garlic Fresin (add S$0. 25). The dips for Belgian style fries can also be served with sandwiches; they  are available in more than 20 flavors: †¢ Pesto Mayo †¢ Satay Sauce †¢ Teriyaki Sauce †¢ Thai Chili Ketchup †¢ Creamy Wasabi Mayo †¢ Roasted Pepper Mayo †¢ Lava Cheese †¢ Black Pepper Sauce †¢ Curry Ketchup †¢ Barbecue †¢ Jalapeno Ketchup †¢ Caribbean Islands Traditional Sambal †¢ Korean BBQ †¢ Hot Chili Sauce †¢ Garlic Dip 3. 2 Competitive Comparison Fresin Fries has several advantages over its leading competitors: †¢ Unique â€Å"fusion† concept of dipping sauce. †¢ We expect a high degree of enthusiasm and offer a fun store with friendly staff , that reflects the company's youthful and energetic culture. †¢ Supporting merchandise items that support the company's brand building. †¢ Our fried potato is made 100% fresh, compared to most fast food outlets that use frozen fries. †¢ Our dipping sauce is also made fresh without preservatives. Our innovative packaging will be more entertaining than our competitors; a single cone with a cup reserved for dipping sauce. |Company | | | |2005 |2006 |2007 |2008 |2009 | | |Potential Customers |Growth | | | | | |CAGR | |Young Singaporeans |15% |5,000,000 |5,750,000 |6,612,500 |7,604,375 |8,745,031 |15. 00% | |Working Singaporeans |10% |3,000,000 |3,300,000 |3,630,000 |3,993,000 |4,392,300 |10. 0% | |Tourists |20% |3,800,000 |4,560,000 |5,472,000 |6,566,400 |7,879,680 |20. 00% | |Total |15. 52% |11,800,000|13,610,000|15,714,500|18,163,775|21,017,011|15. 52% | 4. 2 Target Market Segment Strategy Fresin Fries intends to cater to the bulk of teenagers and youngsters in Singap ore. We have chosen this group for several important reasons. It is our goal to be â€Å"the extraordinary fast food place† and we believe that the age group from 15 to 25 is the primary age where brand building efforts could take place. They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets. Our secondary target is  between the ages of 25  and 37, which are a heavy lounge/restaurant user group. They are more flexible in budgets and seek more than a value/price relationship. Our lunch strategy is dual purposed. First, we are featuring fresh fries to fill Singapore's craving for fast food as most ideas of lunch is a quick bite not a heavy meal. Second, we want to keep the price point at lunch as fair as possible to keep us in competition with other fast food outlets. At S$4. 00 for a medium size fries, we are only slightly above the segment, but we offer much more excitement than the rest of the competition. 4. 2. 1 Market Needs Fresin Fries sees our targeted market group as having many â€Å"makan† (eating) Singaporean Dollar needs. A recent Consumer Trend and Analysis by Euromonitor identified the following needs among our target markets. Our core group: †¢ Wants variety and flavor in its food, preferably something fried †¢ Looks for speed of service †¢ Wants an entertaining and fun experience Insists upon a clean, friendly, and attractive environment †¢ Adopts a global lifestyle †¢ Is computer literate †¢ Enjoys eating out †¢ Has an active lifestyle †¢ Comes from various ethnic backgrounds According to a GAIN Report published in 2000, potatoes are  the second largest commodity of US exports to Singapore after fresh fruit, valuing almost USD $13 million per annum. This is caused by the increasing ly younger demographic and rising incomes throughout Singapore that have led to lifestyle changes that are influencing consumer purchases, food, and entertainment choices. Some changes taking place include a larger professional class with more working women,  which means greater disposable incomes. 4. 2. 2 Market Trends In the past, Singaporeans preferred Western chain restaurants. This was the time when KFC, McDonald's, Long John Silver's  and Pizza Hut were dominating most of the chains. But the trend seems to have shifted in the last decade, with the success of the locally grown brands, such as Bread Talk and Bee Che Hiang. Many of these local brands grew to become  giant franchises  that dominate the Southeast Asia region. For instance, Bread Talk controls 55% of Indonesia's bakery market. The key to success for these foreign chains was mainly due to the popularity of Singapore as tourist destination for these countries. Tourists are the strongest â€Å"buzzer. † Usually after  they went back from vacationing in Singapore, they told friends and families about new things in Singapore, including new shopping malls, new boutiques, new restaurants, and new fast food joints. The fascination of Asian tourists coming to Singapore has positioned the city itself as an aspiration to modern life in the region. Many local entrepreneurs camouflaged their retail stores as an international brand in accordance to what they sell. For instance, there is a local entrepreneur who created a Japanese name to sell yakitori (Japanese BBQ meat skewers), and there is a fashion boutique named after an old Italian movie. 4. 3 Industry Analysis Despite the prolonged effects of the Asian Economic Crisis followed by political turmoil up to mid 2001, Singapore's food service industry witnessed growth over 2000/2001 at 4  Ã¢â‚¬â€œ 5% in terms of units and transaction (Euromonitor). Much of this growth was contributed by the cafes/bars, fast food, and food retail sectors, whose wide appeal amongst a young population, for whom time is of a premium, led to high levels of growth. This growth is underpinned by market demand and lifestyle changes, such as seeing eating out as part of trendy lifestyle. Entry of major multi-national food service operators into major shopping destination in the late 1980s until the 1990s led to growth in competition in the marketplace, mainly from fast food chains. This stimulated the rise in the number of fast food units, both of international  and local chains, that started in the early 1990s. Although there was a  slowdown during the economic crisis in 1998,  the food service industry  recovered faster than others, particularly during 2000 and 2001. Recent bombing tragedies have also proven that  negative effects on this sector  are moderately short-term. Franchising became popular in the food service industry through the introduction and entry of multi-national food service brands, primarily U. S. -owned enterprises, such as KFC, Pizza Hut and McDonald's. Currently, there are many local chains that have also experienced growth by applying this system to their operations. 4. 3. 1 Trends in Food Service Retail According to government surveys, Singapore's spending on â€Å"eating out† is continuing to increase. Spending on cooked food as a percentage of total average food-spend reached 55% in 1998. The growth in spending in the food service sector arises from a number of factors: †¢ Increased affluence amongst Singaporeans, especially those under the age of 40 years. †¢ Increases in the number of expatriate residents, which has more than doubled since 1988. †¢ Increased convenience-seeking amongst younger Singaporeans who live in a hectic city today compared to the much slower pace of life that existed 20 years ago. When they want convenient cooked food, Singaporeans have long turned to the local hawker stalls, rather than prepared ready-to-cook or ready-to-eat processed convenience foods. As the numbers and variety of food service outlets has increased in Singapore, locals have adopted the convenient products of other food service outlets, especially the fast food outlets, as alternative sources of convenient cooked food. Younger middle and upper income group families and individuals are also frequent users of the full service restaurants, modern-style coffee shops and cafes that now exist all across Singapore. Over the past 5 years, there has been a general upgrading in the food service sector which has seen the establishment of more air conditioned food centers (food courts) that are considerably cleaner than the traditional hawker markets. At the same time, increased investment from foreign and local businesses in the sector has also produced an increase in the numbers of: †¢ Foreign chains, including chains such as Outback Steakhouse. †¢ Modern retail bakery/cafe outlets such as Bread Talk. †¢ Modern coffee shops such as Starbucks. 4. 3. 2 Competition and Buying Patterns The competition in this arena is the fiercest  in all  other metropolitan areas in SE Asia. Singapore is a compact city, but has a lot to offer. Usually there are a minimum of two of the same outlets within  a radius of less than 300 meters. For instance, Bread Talk opens one outlet inside the Ngee Ann City Shopping Centre and another just across the street inside the Far East Plaza Shopping Centre. It is quite common for retailers to implement this kind of strategy, due to the high volume of people strolling around the main area of Orchard Road. Another reason is because many retailers do not want to lose sales opportunity, as the competitors are offering substitutions and similar product categories. This phenomenon has made Singapore the best place to shop. If you just missed Haagen Dazs waffle at CK Tang Shopping Mall, there is another Haagen Dazs across the street at the new Paragon Shopping Centre. 4. 3. 3 Main Competitors Our main competitors in this segment are any food outlets within the 300 meter radius along the Orchard Road. In our location, there are Tori-Q, Pizza Walker, Starbucks, Bread Talk, and Rotiboy. Tori-Q Tori-Q is locally owned franchise who sells Japanese BBQ skewers. Established in 1998, Tori-Q had expanded its operation into neighboring countries, Indonesia, Malaysia, and Thailand. Tori-Q is popular among local teenagers as it offers fast service to its customers. Commonly, Tori-Q outlets are rather small,  and can only serve a maximum of 6 guests. It is a choice for those who are in a hurry and would like to grab a quick lunch on the way. Pizza Walker Pizza Walker is a joint venture positioned as gourmet pizza joint in Singapore. Most of its retail outlets are decorated with welcoming ambience, such as flowers and see-through kitchens. Pizza Walker is a good place to hang out, and the place is always full during lunch hour. It has more than enough tables to serve a maximum of 55 guests. Its specialty is all-you-can-eat pizza! Starbucks Starbucks' strategy entering the lunch market had made some impact in Singapore. Usually, a lunch menu in Singapore consists of â€Å"fried and BBQ stuff† such as roast pork with rice or the Big Mac. Starbucks is one of the first food retailers that popularized â€Å"light and healthy† alternatives such as salad or lean sandwich as an options for Singapore's lunch accommodations. Bread Talk As the most successful franchiser in Singapore, Bread Talk is surely becoming a threat for most food retailers. Bread Talk not only rented most of the retail space along Orchard Road, but now they are doing delivery to offices and apartments nearby. Bread Talk outlets usually consist of a huge see-through kitchen, and bread trays ready for pick-up by customers, with three or four cashiers at front, to speed up the queue. Rumor has it that Bread Talk sold more than 35,000 breads each day in just one of their retail outlets. Rotiboy A Malaysian franchise. Rotiboy is quite popular in the region as it is now expanding into several cities in Indonesia, Vietnam, Thailand, and the Philippines. Rotiboy offers simplicity for quick lunch franchiser, and often considered alternatives for its long queueing rivals. 4. 3. 4 Foreign Vs. Local Franchising Around 40% of the franchises operating in Singapore are foreign. Home grown franchises are still in their maturing stages as they start to expand globally. Franchises from the U. S. account for 65% of foreign brands, with big players such as KFC, Starbucks, Pizza Hut, etc. Due to high capital investment, Singapore conglomerates tend to dominate the industry. Home grown franchises are more  often sought more by young entrepreneurs than  are their Western counterparts, as  they offer greater flexibility and lower franchise fees to operate. Unlike Western license holders, home grown franchises  are more efficient in the overall supply chain management as the basic raw ingredients are commonly found anywhere in the region. Strategy and Implementation Summary At first, we will open one outlet inside the New Paragon Shopping Centre. This will become our â€Å"market testing area,† and as we go further, Fresin Fries is planning to open another in nearby shopping malls. In attracting customers to try our fries, we will provide a see-through kitchen, so that people will see how we are committed to freshness in our products. The kitchen will also let out an aroma of our freshly fried fries into the surroundings area, so that people will come and try our products. 5. 1 Competitive Edge †¢ Our unique dipping sauces blend local taste and international into one fusion recipe for the signature sauce. Enthusiastic and friendly staff †¢ Supporting merchandise items that support company's brand building. †¢ Our  fries  are made of 100% fresh potatoes, unlike the frozen fries used by competitors. †¢ Innovative packaging will position us at the same level with foreign fast food franchises. 5. 2 Marketing Strategy Our strategy is based on serving our markets well. We will start our first outlet a s a â€Å"market tester† that could become a model of the expanding number of outlets in the future. Concentration will be on maintaining quality and establishing a strong identity in the local market. A combination of local media and local store marketing programs will be utilized at each location. Local store marketing is most effective, followed by print ad. As soon as a concentration of stores is established in a market, then broader media will be explored. We believe, however, that the best form of advertising is still â€Å"buzz. † By providing a fun and energetic environment, with unbeatable quality at an acceptable price in a clean and friendly outlet, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan. We will actively build our brand, through the selling of supporting materials, such as merchandise, promotional items and other marketing gimmicks similar to those of other fast food franchises. 5. 2. 1 Pricing Strategy Our pricing strategy is positioned as â€Å"generic†, meaning that S$4. 00 is the average consumer spending for a snack or light lunch in Singapore. Leveraging the volume of fries, Italian Soda, and signature style sauces to be sold, we are serving the majority of Singaporeans. 5. 2. 2 Brand Challenges Fresin Fries must establish a distinct brand to stand out from the other Western-style fast food competitors. Our logo is distinct as fresh, energetic and playful with color elements that are eye catching. †¢ Product names are geared toward the target market (teens), with items such as â€Å"Frenzy Fresin† and â€Å"Uber Fresin† which are fun and easy to remember. 5. 2. 3 Marketing Programs We will deploy three different marketing tactics to in crease customer awareness of Fresin Fries. Our most important tactic will be â€Å"word-of-mouth† and in-store marketing. This will be by far the cheapest and most effective of our marketing programs  because of  the high traffic in targeted shopping locations. The second tactic will be local store marketing. These will be low-budget plans that will provide community support and awareness of our facility. The last marketing effort will be utilizing local media. Although, this will be the most costly, this tactic will be used sparingly as a supplement where necessary. †¢ In-Store Marketing o In-store brochures containing our concept and philosophy. o Wall posters. o Design concept. o In-store viewing of making fries process from cutting to frying. o Standing signage inside malls’ lobby/aisle. o Outdoor signage (if possible). o Grand opening promotion. o Party catering. o Merchandising items. †¢ Local Store Marketing o Brochures. Free occasional t-shirts at local stores events. †¢ Local Media o Direct mail piece – containing brochures sent to surrounding addresses. o Web page – containing company philosophy, history and news. o Local magazines that target our core customers, such as Free! Magazine. o Newspaper campaign – placing several large ads t hroughout the month to explain our concept to the local area. 5. 2. 4 Positioning Statement Our main focus in marketing will be to increase customer awareness in the surrounding community. We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about. We will price our products fairly, keep our standards high, and execute the concept so that â€Å"word-of-mouth† will be our main marketing force. 5. 3 Sales Strategy The sales strategy is to build and open new locations in order to increase revenue. However, this plan will be implemented when the one â€Å"market tester† outlet showed potential growth. As each individual location will continue to build its local customer base over the first three years of operation, the goal of each store is  S$104,250 in annual sales, with the original flagship store expected to earn almost S$200,000 per year. . 3. 1 Sales Forecast We anticipate the highest peak on the months of November and December in our sales forecast, due to the holiday seasons. In November, there is Ramadan, and for non-muslim Malaysians and Indonesians, it means vacation time. Approximately 1. 5 million  Indonesians visit Singapore each year, mostly for shopping and dining. Then in December, we anticipate m ore tourists coming into Singapore; this explains the jumped of sales in these last two months of the year. [pic] [pic] [pic] [pic] [pic] Sales Forecast | | |2005 |2006 |2007 | |Unit Sales | | | | |Belgian Fries |49,464 |98,928 |197,856 | |Italian Soda |27,692 |55,384 |110,768 | |Merchandising |3,889 |7,778 |15,556 | |Signature Packaged Sauces |3,356 |6,712 |13,425 | |Total Unit Sales |84,401 |168,802 |337,605 | | | | | | |Unit Prices |2005 |2006 |2007 | |Belgian Fries |$4. 00 |$4. 00 |$4. 00 | |Italian Soda |$1. 50 |$1. 50 |$1. 50 | |Merchandising |$8. 50 |$8. 50 |$8. 50 | |Signature Packaged Sauces |$2. 00 |$2. 00 |$2. 0 | | | | | | |Sales | | | | |Belgian Fries |$197,856 |$395,712 |$791,424 | |Italian Soda |$41,538 |$83,076 |$166,152 | |Merchandising |$33,057 |$66,114 |$132,228 | |Signature Packaged Sauces |$6,712 |$13,425 |$26,849 | |Total Sales |$279,163 |$558,327 |$1,116,654 | | | | | | |Direct Unit Costs |2005 |2006 |2007 | |Belgian Fries |$0. 80 |$0. 80 |$0. 80 | |Italian So da |$0. 15 |$0. 15 |$0. 15 | |Merchandising |$3. 83 |$3. 83 |$3. 83 | |Signature Packaged Sauces |$1. 00 |$1. 00 |$1. 0 | | | | | | |Direct Cost of Sales | | | | |Belgian Fries |$39,571 |$79,142 |$158,285 | |Italian Soda |$4,154 |$8,308 |$16,615 | |Merchandising |$14,876 |$29,751 |$59,503 | |Signature Packaged Sauces |$3,356 |$6,712 |$13,425 | |Subtotal Direct Cost of Sales |$61,957 |$123,914 |$247,827 | 5. 4 Strategic Alliances Our business requires a long relationship with raw suppliers as well as partner vendors. In Chinese, this relationship is called â€Å"guanxi,† meaning business bonding. We already have a long and good standing relationship with  Company V  in our previous ventures. For Company Y, Mr. Joe Shmo, the managing director,  is a prominent figure in the society and we hope to strengthen further our business relationship with him and  the company. 5. 5 Milestones During the initial set up of the company, the 4 founders (Guy Fry, Harry Hip, Sam Sauce, and Carl Cone) will conduct the planning and implementation in building the brand and the construction of our first outlet. The planning and construction will take approximately 8 months, in addition to the revision and refinement process that will take the rest of the 12 month period before our opening in early 2005. [pic] [pic] [pic] Milestones | | | | | | | | |Milestone |Start Date |End Date |Budget |Manager |Department | |Presentation materials for all |1/12/2004 |3/12/2004 |TBD |Carl Cone |Business | |stakeholders | | | | |Development | |Follow up with suppliers |1/21/2004 |3/22/2004 |$100 |Sam Sau ce |Business | | | | | | |Development | |Follow up with developers |1/21/2004 |9/8/2004 |$50 |Sam Sauce |Business | | | | | | |Development | |Printing materials |2/13/2004 |4/10/2004 |$8,000 |Guy Fry |Marketing | |Marketing communication program |2/21/2004 |6/23/2004 |TBD |Sam Sauce |Marketing | |Constructions |5/22/2004 |12/3/2004 |TBD |Harry Hip |Business | | | | | | |Development | |In store signage, POP |5/23/2004 |10/11/2004 |TBD |Guy Fry |Marketing | |Grand opening materials |6/2/2004 |10/13/2004 |TBD |Guy Fry |Marketing | |Hiring staff |7/14/2004 |8/12/2004 |$900 |Harry Hip |Human Resources | |Open second location |7/1/2005 |7/1/2005 |$10,000 |Carl Cone |Business | | | | | | |Development | |Open 3rd and 4th locations |1/1/2006 |6/1/2006 |$15,000 |Carl Cone |Business | | | | | | |Development | |Open 5th, 6th, and 7th locations|1/1/2007 |12/31/2007 |$20,000 |Carl Cone |Business | | | | | |Development | |Training staff |9/12/2004 |12/10/2004 |$1,000 |Harry Hip |Human Resources | |Totals | | |$55,050 | | | Web Plan Summary The website will, of course, show visitors everything about Belgian food culture, including the history of french fries over time. To make the website interactive, Fresin Fries will offer gift cards and promotions via the Internet, so our visitors can print the promotional coupon in PDF format and bring it when they visit Fresin Fries. Visitors can also download Fresin Fries' theme song as ring tones, or order potato cutters for delivery. Besides the traditional formats of customer service hotline and in-store form, customers can now write their comments and suggestions  on our website, which will be directed to one of our staff. So, the website itself will act as the medium between our company and our audience. In the future, our website will show information on franchising/licensing our brand name. 6. 1 Website Marketing Strategy We will leverage the visibility of our shopping mall's website by getting them to include a link to ours. We will also post  banners on an official Singapore tourism website. 6. 2 Development Requirements To adequately serve our audience, the front end strategy of our website should be parallel with our corporate color. The front end design of our website will be entirely trusted  to Mr. Guy Fry. The diversity of founders' background in our company has enabled a cost efficient development in our venture. As Mr. Harry Hip and Mr. Carl Cone are experts in Information Technology, the back end of our website will be developed by  these gentlemen. Management Summary The initial management team depends on the founders themselves, with little back-up. As we grow, we will take on additional help in certain key areas. Part of our basic philosophy will be able to run our executive management as a â€Å"knowledge sharing† fellowship. We will not add additional overhead until absolutely necessary. This will mean that the initial staff support team will have to work extra. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our outlets. This will also allow us and future business partners to recoup investments as quickly as possible and enjoy a higher return. At present time, Fresin Fries is being owned by its 4 founders. Others that have helped on the development of this business venture will be offered an opportunity to grow together with the company at the appropriate time, and when the time comes, the 4 founders’ share will be consolidated as one entity. 7. 1 Management Team Fresin Fries is currently the creative idea of its four founders. As the company is small in nature, it only requires a simple organizational structure. Implementation of this organization form calls for all four individuals to make all major management decisions in addition to monitoring all other business activities. As we expand into multiple locations, each location will have a primary site manager. 7. 2 Organizational Structure Future organizational structure will include a director of store operations when the store locations exceed four units. We hope that this individual will come out of the ranks of our stores’ management. This will provide a supervisory level between the executive level and the store management level. Current plan is to have our accounting and payroll functions done by an in-house bookkeeping. Mr. David Lu will be responsible for accounting and business development of Fresin Fries, helped by Mr. Harry Hip, acting Head of Human Resources Division. Possible positions might be added at a later date include marketing manager, purchasing manager, controller, human resources, R&D and administrative support team. 7. 3 Personnel Plan Our initial employees will  include two  cashiers, two cooks and two bus boys per location, with one of each on the premises during open hours. This is considered an ideal personnel number for a food outlet the size of our own. Each employee will work for 38-40 hours per week. In the long run, as we expand our product category and retail outlets, we will employ more people in the middle management to ensure the focus of our work, including site managers. [pic] |Personnel Plan | | |2005 |2006 |2007 | |Site Managers |$0 |$60,000 |$96,000 | |Cashiers |$36,000 |$80,000 |$144,400 | |Cook |$28,800 |$66,000 |$115,200 | |Busboy |$23,400 |$56,000 |$94,000 | |Total People 12 |26 |40 | | | | | | |Total Payroll |$88,200 |$262,000 |$449,600 | Financial Plan The company is now privately held by Harry Hip, Guy Fry, Carl Cone, and Sam Sauce. Future shares will be offered after two consecutive years of operating in Singapore. 8. 1 Projections 8. 2 Start-up Funding Currently, the company is owned by the original 4 founders, who each will contribute $200,000 for the same amount of share, 25%. This will more than cover start-up requirements, and provide the business with a cash cushion to use for expansion over the first thre e years. [pic] Start-up Funding | |Start-up Expenses to Fund |$68,800 | |Start-up Assets to Fund |$50,000 | |Total Funding Required |$118,800 | | | | |Assets | | |Non-cash Assets from Start-up |$30,000 | |Cash Requirements from Start-up |$50,000 | |Additional Cash Raised |$681,200 | |Cash Balance on Starting Date |$731,200 | |Total Assets |$761,200 | | | | | | | |Liabilities and Capital | | | | | |Liabilities | | |Current Borrowing |$0 | |Long-term Liabilities |$0 | |Accounts Payable (Outstanding Bills) |$0 | |Other Current Liabilities (interest-free) |$0 | |Total Liabilities |$0 | | | | |Capital | | | | | |Planned Investment | | |Eric Yam |$200,000 | |Martin Ng |$200,000 | |David Lu |$200,000 | |Sagita Suwandi |$200,000 | |Additional Investment Requirement |$0 | |Total Planned Investment |$800,000 | | | | |Loss at Start-up (Start-up Expenses) |($68,800) | |Total Capital |$731,200 | | | | | | | |Total Capital and Liabilities |$731,200 | | | | |Total Funding |$800,000 | 8. 3 Break-even Analysis Our break-even analysis shows that we need unit sales over 9,700 per month to break even. We do not expect to begin turning a profit until year three. [pic] [pic] [pic] |Break-even Analysis | | | | |Monthly Units Break-even |9,706 | |Monthly Revenue Break-even |$32,104 | | | | |Assumptions: | | Average Per-Unit Revenue |$3. 31 | |Average Per-Unit Variable Cost |$0. 73 | |Estimated Monthly Fixed Cost |$24,979 | 8. 4 Projected Profit and Loss As the Profit and Loss shows,  Fresin Fries will run at a loss f or the first two years, using up some of the cash reserves initially invested by the founders. As sales increase, we will expand into new locations to aggressively spread brand recognition. This increase in visibility will allow us to take up less expensive locations off of Orchard Road, while maintaining our flagship operation, the first store, in a  prime spot. [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] Pro Forma Profit and Loss | | |2005 |2006 |2007 | |Sales |$279,163 |$558,327 |$1,116,654 | |Direct Cost of Sales |$61,957 |$123,914 |$247,827 | |Other Costs of Sales |$0 |$0 |$0 | |Total Cost of Sales |$61,957 |$123,914 |$247,827 | | | | | | |Gross Margin |$217,207 |$434,413 |$868,826 | |Gross Margin % |77. 81% |77. 81% |77. 81% | | | | | | | | | | | |Expenses | | | | |Payroll $88,200 |$262,000 |$449,600 | |Marketing/Promotion |$10,000 |$10,000 |$10,000 | |Depreciation |$0 |$0 |$0 | |Rent |$174,000 |$248,000 |$298,000 | |Utilities |$2,550 |$5,000 |$8,000 | |New locatio n setup |$25,000 |$50,000 |$50,000 | | | | | | |Total Operating Expenses |$299,750 |$575,000 |$815,600 | | | | | | |Profit Before Interest and Taxes |($82,543) |($140,587) |$53,226 | |EBITDA |($82,543) |($140,587) |$53,226 | |Interest Expense |$0 |$0 |$0 | |Taxes Incurred |$0 |$0 |$0 | | | | | | |Net Profit |($82,543) |($140,587) |$53,226 | |Net Profit/Sales |-29. 57% |-25. 18% |4. 77% | 8. 5 Projected Cash Flow The following chart and table show the Projected Cash Flow for Fresin Fries. [pic] [pic] [pic] |Pro Forma Cash Flow | | |2005 |2006 |2007 | |Cash Received | | | | | | | | | |Cash from Operations | | | | |Cash Sales |$279,163 |$558,327 |$1,116,654 |Subtotal Cash from Operations |$279,163 |$558,327 |$1,116,654 | | | | | | |Additional Cash Received | | | | |Sales Tax, VAT, HST/GST Received |$0 |$0 |$0 | |New Current Borrowing |$0 |$0 |$0 | |New Other Liabilities (interest-free) |$0 |$0 |$0 | |New Long-term Liabilities |$0 |$0 |$0 | |Sales of Other Current Assets |$0 |$0 |$0 | |Sales of Long-term Assets |$0 |$0 |$0 | |New Investment Received |$0 |$0 |$0 | |Subtotal Cash Received |$279,163 |$558,327 |$1,116,654 | | | | | | |Expenditures |2005 |2006 |2007 | | | | | | |Expenditures from Operations | | | | |Cash Spending |$88,200 |$262,000 |$449,600 | |Bill Payments |$244,265 |$430,245 |$599,286 | |Subtotal Spent on Operations |$332,465 |$692,245 |$1,048,886 | | | | | | |Additional Cash Spe nt | | | | |Sales Tax, VAT, HST/GST Paid Out |$0 |$0 |$0 | |Principal Repayment of Current Borrowing |$0 |$0 |$0 | |Other Liabilities Principal Repayment |$0 |$0 |$0 | |Long-term Liabilities Principal Repayment |$0 |$0 |$0 | |Purchase Other Current Assets |$0 |$0 |$0 | |Purchase Long-term Assets |$0 |$0 |$0 |Dividends |$0 |$0 |$0 | |Subtotal Cash Spent |$332,465 |$692,245 |$1,048,886 | | | | | | |Net Cash Flow |($53,301) |($133,918) |$67,767 | |Cash Balance |$677,899 |$543,981 |$611,748 | 8. 6 Projected Balance Sheet Fresin's projected company balance sheet follows. We expect to run at a loss for the first two years, decreasing our net worth slightly. As the operation becomes more profitable in the third year, our net worth rises again. [pic] Pro Forma Balance Sheet | | |2005 |2006 |2007 | |Assets | | | | | | | | | |Current Assets | | | | |Cash |$677,899 |$543,981 |$611,748 | |Other Current Assets |$0 |$0 |$0 | |Total Current Assets |$677,899 |$543,981 |$611,748 | | | | | | |Long-te rm Assets | | | | |Long-term Assets |$0 |$0 |$0 | |Accumulated Depreciation |$0 |$0 |$0 | |Total Long-term Assets |$0 |$0 |$0 | |Total Assets |$677,899 |$543,981 |$611,748 | | | | | | |Liabilities and Capital |2005 |2006 |2007 | | | | | | |Current Liabilities | | | | |Accounts Payable |$29,242 |$35,911 |$50,452 | |Current Borrowing |$0 |$0 |$0 | Other Current Liabilities |$0 |$0 |$0 | |Subtotal Current Liabilities |$29,242 |$35,911 |$50,452 | | | | | | |Long-term Liabilities |$0 |$0 |$0 | |Total Liabilities |$29,242 |$35,911 |$50,452 | | | | | | |Paid-in Capital |$800,000 |$800,000 |$800,000 | |Retained Earnings |($68,800) |($151,343) |($291,930) | |Earnings |($82,543) |($140,587) |$53,226 | |Total Capital |$648,657 |$508,070 |$561,296 | |Total Liabilities and Capital |$677,899 |$543,981 |$611,748 | | | | | | |Net Worth |$648,657 |$508,070 |$561,296 | . 7 Business Ratios The following table outlines some of the more important ratios from the  Fast Food Restaurants and Stands  in dustry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code 5812. [pic] |Ratio Analysis | | |2005 |2006 |2007 |Industry Profile | |Sales Growth |0. 00% |100. 00% |100. 00% |8. 7% | | | | | | | |Percent of Total Assets | | | | | |Other Current Assets |0. 00% |0. 00% |0. 00% |37. 31% | |Total Current Assets |100. 00% |100. 00% |100. 00% |45. 97% | |Long-term Assets |0. 00% |0. 00% |0. 00% |54. 03% | |Total Assets |100. 00% |100. 0% |100. 00% |100. 00% | | | | | | | |Current Liabilities |4. 31% |6. 60% |8. 25% |17. 94% | |Long-term Liabilities |0. 00% |0. 00% |0. 00% |22. 26% | |Total Liabilities |4. 31% |6. 60% |8. 25% |40. 20% | |Net Worth |95. 69% |93. 40% |91. 75% |59. 0% | | | | | | | |Percent of Sales | | | | | |Sales |100. 00% |100. 00% |100. 00% |100. 00% | |Gross Margin |77. 81% |77. 81% |77. 81% |59. 05% | |Selling, General & Administrative Expenses |107. 37% |102. 99% |73. 0 4% |39. 24% | |Advertising Expenses |0. 00% |0. 00% |0. 00% |1. 96% | |Profit Before Interest and Taxes |-29. 57% |-25. 8% |4. 77% |1. 92% | | | | | | | |Main Ratios | | | | | |Current |23. 18 |15. 15 |12. 13 |1. 04 | |Quick |23. 18 |15. 15 |12. 13 |0. 66 | |Total Debt to Total Assets |4. 31% |6. 60% |8. 25% |50. 2% | |Pre-tax Return on Net Worth |-12. 73% |-27. 67% |9. 48% |6. 90% | |Pre-tax Return on Assets |-12. 18% |-25. 84% |8. 70% |13. 87% | | | | | | | |Additional Ratios |2005 |2006 |2007 | | |Net Profit Margin |-29. 57% |-25. 18% |4. 77% |n. a | |Return on Equity |-12. 73% |-27. 7% |9. 48% |n. a | | | | | | | |Activity Ratios | | | | | |Accounts Payable Turnover |9. 35 |12. 17 |12. 17 |n. a | |Payment Days |27 |27 |26 |n. a | |Total Asset Turnover |0. 41 |1. 03 |1. 83 |n. | | | | | | | |Debt Ratios | | | | | |Debt to Net Worth |0. 05 |0. 07 |0. 09 |n. a | |Current Liab. to Liab. |1. 00 |1. 00 |1. 00 |n. a | | | | | | | |Liquidity Ratios | | | | | |Net Working Capital |$648,6 57 |$508,070 |$561,296 |n. a | |Interest Coverage |0. 00 |0. 00 |0. 00 |n. | | | | | | | |Additional Ratios | | | | | |Assets to Sales |2. 43 |0. 97 |0. 55 |n. a | |Current Debt/Total Assets |4% |7% |8% |n. a | |Acid Test |23. 18 |15. 15 |12. 13 |n. a | |Sales/Net Worth |0. 43 |1. 10 |1. 99 |n. a | |Dividend Payout |0. 00 |0. 00