Upon completion of this assignment, students should be able to:
i. Demonstrate knowledge and understanding of entrepreneurial management.
ii. Develop a capacity for informed critical understanding of environmental conditions and the ability to analyze current trends.
iii. Demonstrate entrepreneurial activities and competence building.
iv. Demonstrate an understanding of the strategy process.
Mr Bernard has been operating his own canteen at ABC University for the past 15 years. This canteen serves breakfast and lunch at reasonable prices. Last month, Mr Bernard had received his ...view middle of the document...
The rental per month is RM6000.00
e. There are no other competitors within 3km from the University
f. Canteen’s turnover and net profit for the last 5 years:
Year | Turnover | Net profit |
2007 | RM300,000 | RM60,000 |
2008 | RM350,000 | RM63,000 |
2009 | RM400,000 | RM60,000 |
2010 | RM450,000 | RM67,500 |
2011 | RM500,000 | RM60,000 |
Total tangible assets: RM300,000 (book value at time of purchase)
Total liabilities: Nil
h. Some information for the going market rate in the last one year:
Company | Transacted selling price |
Paradise Cafe at Smart High School (3,000 students) | RM150,000 |
Moon Cafe at Twain University (15,000 students) | RM600,000 |
Wan Cafe at Pan Corporation (6,000 employees | RM400,000 |
* For any information not given here, you are free to use your own assumptions.
Assignment Hand Out Date :19 August 2013
Assignment Submission Date : 19 September 2013
You have to prepare a business valuation report using the following:
* Executive Summary
* Opinion of value
* Assumptions and Limiting Conditions
* History of company
* Services provided
* Education industry analysis and its impact on canteen business
* Production process
* Customers analysis
* Human resources
* Description of facilities
* Furniture and Fitting
* Equipment and Machine
* Asset valuation: Book value method
* Market valuation method: The going market rate method
* Income-based business valuation: Return on investment (ROI) method
The following assessment scheme will be adopted in order to evaluate the elements above:
Criteria | Allocation of Marks |
Executive Summary | 5 |
Introduction | 5 |
Models & Conceptual Skills | 20 |
Integration and Synthesis | 20 |
Analysis & Interpretation | 20 |
Prescriptions/Recommendations | 15 |
References | 5 |
Structure & Layout | 5 |
Language & Clarity | 5 |
Marks are awarded based on the following guidelines:
Grade | Description of performance level |
75% – 100% | You should be able to show good application of theories and concepts covered in the subject. Your business plan should be well thought, with a in depth analysis of all the necessary...