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Starbucks Nepal Youth Empowerment CSR

The document proposes a youth empowerment program called "Connecting you to Opportunities" between Starbucks and Kathmandu, Nepal. The program would provide 200 training seats and internships for 70 candidates aged 16-25 to learn customer service and barista skills. Starbucks aims to reduce unemployment among Nepalese youth by providing skills training and work experience. If approved, the program would launch a new Starbucks store in Kathmandu over three years to train and potentially employ local youth, supporting Starbucks' mission of empowering communities.

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Abishek Risal
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0% found this document useful (0 votes)
473 views29 pages

Starbucks Nepal Youth Empowerment CSR

The document proposes a youth empowerment program called "Connecting you to Opportunities" between Starbucks and Kathmandu, Nepal. The program would provide 200 training seats and internships for 70 candidates aged 16-25 to learn customer service and barista skills. Starbucks aims to reduce unemployment among Nepalese youth by providing skills training and work experience. If approved, the program would launch a new Starbucks store in Kathmandu over three years to train and potentially employ local youth, supporting Starbucks' mission of empowering communities.

Uploaded by

Abishek Risal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 29

“Connecting you to opportunities”

Reported by

Alisha Tandukar 4579962


Reejash Nakarmi 4579969
Seong Hwa Kim 4580318
Namaraj Khanal 4576207

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1. Cover letter
To whom it may concern:
We are writing this on behalf of “connecting you to opportunities” to present to you the youth empowerment
program CSR proposal for Starbucks. After careful investigation and evaluation of the market. This document
is ready to prove and start the CSR project from Howard Schultz, chairman, president and Chief executive
officer of Starbucks coffee company.
This program focuses on pragmatic approach to Starbucks mission and vision which is to inspire and nurture
the human spirit – one person, one cup and one neighbourhood at a time. While conducting this project,
Starbucks will be targeting the prevalent Nepalese potential customers and improvising the brand image and
popularity in exponentially growing Nepalese market. On the other hand, we would be working with Starbucks
coffee company interest of Starbucks coffee company interest of Starbucks support and taking advantage of
their business standard popularity and their resources.
In addition to that, CSR venture of Starbucks includes source ethically and sustainably, lead in green retail,
strengthen communities and create opportunities. Our project mainly aims to provide employment
opportunities to youth of Kathmandu, Nepal with due consideration to exponentially increased sales trend in
Starbucks.
We are highly positive about your interest in our proposal of launching connecting you to opportunities, kindly
find the business proposal from attached for further detailing of our project. We look forward to hear your
comments and answer any question you have. You are more than welcome to contact us via email or phone.
Thank you for your time and attention.
Yours sincerely,
Team Starbucks Kathmandu
Starbucks Australia
Email: [email protected]
Phone: 42333072

2|Page
2. Executive Summary

3|Page
Contents
1. Cover letter.....................................................................................................................................................2
2. Executive Summary......................................................................................................................................2
3. Background to the business case......................................................................................................................5
4. Business Case Definition..................................................................................................................................6
4-1 Nature of the business venture........................................................................................................................6
4-2 Business Case Aim........................................................................................................................................6
4-3 Business Case Scope....................................................................................................................................6
5. Business Case stakeholders and stakeholder analysis.........................................................................................8
6. Program Logic model.......................................................................................................................................9
7. Feasibility Analysis.........................................................................................................................................14
8. Gantt Chart...................................................................................................................................................18
9. Resources....................................................................................................................................................18
10. Budget........................................................................................................................................................21
11. References..................................................................................................................................................23
2. Nepal Coffee - Nepalese Coffee Beans - Espresso & Coffee Guide.........................................................23
3. Company Information | Starbucks Coffee Company...............................................................................23
12. Appendices.................................................................................................................................................24
12-1Appendix 1: The Project Team.....................................................................................................................24
12-2 Appendix 2: Project management methodology.............................................................................................25

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3. Background to the business case
Founded by three partners in Seattle, Washington in 1917. Starbucks Corporation is an American coffee
company. Starbucks is considered the main representative of the coffee, quality, customer experience and
great darkly roasted coffee taste. It also serves hot and cold drinks, teas, fresh juice, Frappuccino beverages
and snacks. It is set out to be a different kind of company. Starbucks not only offer coffee but the rich tradition
that also connect feelings.

In 1980s Howard Schulz (Starbucks chairman and chief executive officer) had join into a Starbucks store and
changed it to the next level. Beside of what they brew, Starbucks is keen to work for community development
and make sure everything is highest quality to customers to do business responsibly. Starbucks aims to
empower every member of the community and every organization on the globe to achieve more. Starbucks
company expanded more than 24,000 retail stores in 70 countries.

Starbucks coffee house created The Starbucks Foundation as part of their mission and vision committed to
strengthen communities. Starbucks supporting communities around globe in various projects. They have
contributed to offer opportunities to youth, supporting farming group to improve access to education and
agricultural trainings, access to clean water project through Ethos Water fund and supported funding for
community- building programs through partnership with (RED) to help people who are not aware of HIV/AIDS
prevention, education and treatment programs in Africa.

Starbucks is working on opportunity for youths and launching “Connecting you to opportunities” project which
aims to create pathways to job opportunities for youths of Kathmandu, Nepal and aims to reduce
unemployment rate throughout. This campaign is conducting in Thamel, Kathmandu the capital city of Nepal.
This project aims to allow 200 training seats and 70 best candidates to do internship and work in Starbucks
company over three years period to the youths age 16-25 freshly graduates youth adults. Starbucks believes
that it creates the pathways to lifelong opportunity for young people with the skills required for the changing
globe economy.

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4. Business Case Definition

4-1 Nature of the business venture

Starbucks mission and values are to provide training and job opportunities to the young adults from age 16-25
and make a positive change. For this to make possible Starbucks is launching a “connecting you to
opportunities” project with new store in Kathmandu, Nepal. Starbucks will be providing free internship to
candidates taking part in the campaign they will be trained in customer experience skill, time management
skills, leadership skills which will help them to grow more skills and knowledge for lifelong opportunities.
Nowadays barista is a remunerative job all around the world and in the context of Nepal youths have been hit
hard by harsh unemployment coffee making and customer service is a great knowledge to give a young
generation to help them in the future.

4-2 Business Case Aim

Starbucks is keen to help community members to build and support to achieve more by educating them, help
to grow their creativity and innovative personality and giving working experience and training at the same time.
Starbucks coffee house is a place where people can enjoy the perfect cup of drink and friendly enthusiastic
customer service. They believe that educating youth and give them an opportunity to learn and work offers
new possibilities that helps in empowering youths, students, educators and entrepreneurs and it is guided by
three principles of empower, imagine and realize. In the context of developing country like Nepal they are
facing lot of harsh to youth unemployment situation. Empowering youth is all about educating them and
teaching young people the required skills to thrive in the rapidly changing situation or trend. Providing
internship to those who are freshly graduate and seeking for job experiences in Kathmandu and we are
offering free training and job opportunities to best candidates. Starbucks is working for community to inspiring
the youths for the future possibilities which helps in unleashing future innovators. Starbucks mission and vision
are to inspire human and protect environment for a positive change. We are giving chance to work to local
community youths, use local greens and beans, utilizing recycled paper cups and plates and save water.
Starbucks is willing to help youth to be creative with what a better tomorrow looks like and help them reach
there. The main aim of this project is to help youths to secure employment by realizing what skills they develop
and what skills they need and applying their skills and ideas they can look forward to better future. This can
help them to create more opportunities in various fields either it be further education, business or social
venture. The Company’s CSR vision is to empower community involvement by inspiring nature and for positive
change. And through this campaign, Starbucks will be able to achieve this goal.

4-3 Business Case Scope

This project is going to be a three-year project. Our target area is Thamel, Kathmandu the capital city in Nepal
which has a population of 1.5 million. We have been given one million dollars as our budget and in our project,
we have four team members who are going contribute dedication and enthusiasm in this project. The
resources we are going to need for our project are land for Starbucks coffee shop (including all building
materials), laptops and computers, furniture (Chairs, desk, tables, etc.), fire extinguishers, expresso Machines,
refrigerators/ display freezers, kitchen equipment, flyers. Starbucks is a well reputed multinational company
which is going to be of great help for us as they already have marketing team and brand image to promote our

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campaign. This way we are going to exclude excessive expenses on marketing and promoting which will save
our costs. We don’t want to go out of our budget so we will try and minimize our expenses. We are going to
provide our Barista training to all the participating students and youth adults and train them how to use it to
their advantage along with customer experience and time management skill, team player, leadership skills. We
are aiming to provide 70 best candidates to internship and job in Starbucks. At the end of our project, we are
aiming to increase the growth of our organization by 5%. We will also be hiring interns from the qualified
students for their future growth and employment within our company.

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5. Business Case stakeholders and stakeholder analysis
Projects require involvement of large number of people. Analysing what each type of people can contribute to
our project and how our project affects them should be identified before starting the project.
Stakeholder Their interest or What the project Perceived Actions to take
requirement from needs from them attitudes and/or
the project risks
Youth Better future Commitment in Misunderstandin Engaging them with
learning and g or lack of different activities
working interest. and proper guidance.
Boss Increment of Authorization to Unsatisfied over Keep satisfied and
Revenue pass over the the company updating about the
project. standard. progression.
Customers Serve every Positive feedback They might Maintain high quality
customer with from them and loyal criticize over the service and explain
better quality with our store. project. them about our
product and project to support us.
services
Community in More people Support from them Not aware of the Organise the
Kathmandu awareness and and more main moto of community gathering
give chances to engagement in our our project. to briefly explain
youth to reduce project. about our project and
unemployment induce them to take
and learn new part in our project
skills and support us.
development.
Government Reduce Authorization to Change in rules Consult and follow
of Nepal unemployment, start the project. and regulation. rules and regulation
better to contribute an
community. opportunity to grow.
Resource To invest project Materials and fund Cannot make To convince them
manager status as required. sure the actual invest on resources.
throughout. resources with
supplement
resources.
Project Maintain good Proper and good Hard to cope Provide all the
manager managerial status quality with and resources to perform
management to communication the job correctly and
success the project barriers precisely.
Suppliers To make strong Quality products Time Stay connected with
relationship with and better services. management, them and keep
suppliers. transport and getting updated.
delivery not
being timely.
Support team Their job and role Contribution to Risk might be Assigning the tasks
towards the complete the lack of with their potential
project. project commitment to interest.
successfully. work.
Future recruit Good status Stay focused and Not much Provide enough

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internship complete the assign knowledge and resources and help
job. idea about the them to improve
creative things what they are doing.

Above stakeholder analysis has been done using a stakeholder analysis template to identify and to understand
their impact and influence on the proposed project of a business. Every business has both internal and
external stakeholders and it has included them in a template where project managers, support team members,
resource manager, boss, are the internal stakeholders and youth, government, communities, future recruits
are the external ones who has influence in the proposed project of a business.

6. Program Logic model

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6.1 Operational Objectives
Operational Objectives- Provide the required material setup for project and improved recruiting,
retention and cheap labour cost management as well as using the local materials to operates
Starbucks successfully in Kathmandu, Nepal by 2018
Activities (Tasks or Action) Outputs/Results(measurable) Outcomes/Benefits

Hiring skilled manpower, Contact with the Himalayan Be able to increasing its
they are baristas, wait beanz training centres located margins with reducing overtime
staffs and Cooks from 1 at Palace Marg, Kathmandu (1) costs (1)
July 2018 to 1 August 2018
for Starbucks, Thamel,
Kathmandu

Researching on required Making the list of required Helps to minimize time and
materials materials (2) money (2)

Compare price of the Searching the suppliers around Import of good quality of coffee
required raw materials Kathmandu, Nepal (3,4,5) beans and food products with
low prices (3,4,5)
Making the list up local
suppliers who is able to Legal bound with local The business projects are
make enough supply of suppliers (6) bound with each other’s (6)
coffee beans and food
products around
Kathmandu valley

Arranging the meeting with Helps to increase new


local suppliers and dealing Use of new technology and customers and remain the
with the price coffee making machine (7) existing customers for
Starbucks and raise the
Select the best and suitable revenue (7)
suppliers for Starbucks

Increase the production to


meet the demand for
customers

6.2 Financial Objectives


Economic growth and sustainable increase in market value

Activities (Tasks or Action) Outputs/Results(measurable) Outcomes/Benefits

1. Setting minor achievable Sustainable growth of the Workers/employees are


goals per week such as economy. motivated when goals are
target sales reached. reached.

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2. Projecting revenue growth Increase in sales Investors have an idea of how
per month (5% revenue much a company’s sales is
growth first 3 months and increased over a period of time.
10% growth after that.)
Better strategic long-term
3. Preparing monthly sales Identify changes in trends every forecasting.
report. month.
Employees have enough time
4. Monitoring sales Employees are aware of busy to be prepared for rush hours
throughout the day hours and quiet hours. and make the best out of it and
(morning, afternoon and also can save labour costs
night) during the quiet time.

6.3 Marketing Objectives


Creating approximately 2,000 regular customers for newly opened Starbucks coffee shop in Nepal’s
capital, Kathmandu by the end of 2021.

Activities (Tasks or Actions) Output/Results (measurable) Outcomes/Benefits


1. Offering 200 trial Starbucks 1. Totally 2,400 Nepali people 1. Over 2,400 Nepali people
coffee on a weekly basis in Kathmandu become to become to know Starbucks coffee
for 3 months to local drink Starbucks coffee for 3 shop in Kathmandu, Nepal.
communities in months.
Kathmandu, Nepal, for
increasing the number of
customers.
2. Totally 2,500 flyers are 2. Over 2,500 Nepali people
distributed to local people in become to know Starbucks
2. Printing and distributing Kathmandu for 5 months. coffee shop in Kathmandu,
500 Starbucks flyers Nepal.
monthly for 5 months in
Kathmandu, Nepal, for
promoting Starbucks
coffee. 3. Over 80% of Nepali 3. Starbucks coffee shop in
customers love the Kathmandu become to get the
Starbucks coffee cups. better reputation compared to
3. Designing and using other local coffee shop using
Nepal’s traditional and normal coffee cups.
seasonal coffee cups for
making Nepali people living
in Kathmandu become
accustomed to Starbucks 4. Totally 70% of customers, 4. The number of regular
coffee. who have the royalty cards customers increases
from the Starbucks coffee constantly.
store in Kathmandu, revisit
4. Giving out 500 Starbucks and used the royalty cards.
loyalty cards monthly to
customers visiting
Starbucks store in
Kathmandu for promoting 5. Social media advertisement

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the sales of goods and created on Facebook. 5. Over 2,000 Facebook users
services of others by living in Kathmandu become to
awarding purchase points. know the Starbucks coffee
shop in Kathmandu.

5. Creating the Facebook


advertisement for the first
year for letting young
people know about the
Starbucks coffee store in
Kathmandu, Nepal.

6.4 CSR Objectives


Training and mentorship 70 youth (age from 16 to 25) as an internship to learn job skills in Starbucks,
including leadership skill, problem solving skill, time management skill and workplace ethics by the end
of 2020.
Activities (Tasks or Actions) Output Outcomes
1. Find a barista trainer by 1. Educate 70 young people as 1. 70 students are able to work in
2018 targeted (1,2,3) coffee shops (1,2,3)
2. Advertising to hire young 2. Analyse project in realistic 2. Discover weaknesses of the
people by 2018 (4) project (4)
3. Launch a training
program to attract young
people by 2019
4. Keep monitoring status of
project

CSR objectives - Provide job to 15 outstanding interns, who are from age 19 to 25 years old, in Starbucks and
provide paid internship to 15 outstanding freshly graduate students, who are 17 or 18 years old, to for better
future opportunity in cafeteria on Jan 2020
Activities (Tasks or Actions) Output Outcomes
1. Look at all students’ internship 1. Sort 30 enthusiastic students 1. Provide Job opportunities and
form for the next step (1,2,3) unpurchaseable experiences
2. Communicate with freshly 2. Inform selected students to (1,2,3,4)
graduate students and give understand the plan 2. Reduce unemployment rate
chance to perform as part of a 3. Motivate students to put their (1,2,3,4)
team efforts on the project (6) 3. Discover potential and talented
3. Select 30 students throughout the future employees (1,2,3,4)
3-year plan
4. Allocate students into internship
5. Explain regarding planned
internships and mentoring
6. Help students build their skills and
access mentorships with
Starbucks senior leaders

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7. Feasibility Analysis
Feasibility analysis will be highly helpful to find out the strength and weakness of the project, and will
contribute to improving the Starbucks project in Nepal and gain the desired results.
7-1 Market feasibility 
Growing popularity is the most important market feasibility for the project. Because in order to achieve this
project the Starbucks company has to hire a lot of local young people and invite around 2,000 regular
customers by 2021. The below table demonstrates the growth of population in Nepal.
Population Measures 1971 1981 1991 2001 2011

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Population (millions) 11.6 15.0 18.5 23.2 26.5
Density(pop/km2) 79 102 126 158 181
% of urban population 4.0 6.4 9.2 14.2 17.0

(Source – National population censuses, 2001 and 2011)


This table showed that the population in Nepal has been increasing constantly from 1971 to 2011. It was more
than doubled. The density also increased more than doubled from 79 to 181. The most important factor is the
percentage of urban population as the Starbucks coffee shop will be built in Kathmandu where is the capital of
Nepal. The percentage of urban population increased from 4.0% to 17% between 1971 to 2011, and it was
more than 4 times. This is higher than the total population growth rate in Nepal. Therefore, this means that the
Starbucks coffee shop in Kathmandu is able to hire young people more easily and also have much more
chances for customers to visit the Starbucks coffee shop. In conclusion, growing popularity in Nepal,
especially in Kathmandu(the biggest city in Nepal), is the most fundamental factor in order to make this project
be successful. (Laxman Kumar Regmi, 2014)

7-2 Technical feasibility 

Physical location
The physical location of Kathmandu is the best one in Nepal. Because Kathmandu is the capital city of Nepal,
which means that Kathmandu has the best options for materials, labor, transportation, shipping and
technology. The below diagram illustrates almost all coffee producing districts are located in near Kathmandu.
Which means that Kathmandu is the best location for preparing coffee beans in Nepal.

Labor
Unemployment Rate in Nepal increased to 3.20 percent in 2016 from 3 percent in 2015. Unemployment Rate
in Nepal averaged 2.97 percent from 1991 until 2016, reaching an all time high of 4.50 percent in 1996 and a
record low of 1.90 percent in 1999. The bar graph demonstrates the Nepal unemployment rate between 2008
and 2016. (Trading Economics, 2018)

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(SOURCE : CENTRAL BUREAU OF STATISTICS, NEPAL )

This down trend of unemployment rate in Nepal means that the Starbucks coffee shop in Kathmandu can hire
young unemployed people more easily, and also easy to achieve the Starbucks’s CSR objectives.

Transportation
Kathmandu Metropolitan City has the lack of trucks for trucks, which means that the Starbucks coffee shop in
Kathmandu is highly likely to supper from the transportation of coffee resources from local coffee beans
suppliers to the shop. (R.AlamM.A.I.ChowdhuryG.M.J.HasanB.KaranjitL.R.Shrestha, 2008)

 
7-3 Financial feasibility 
Wage in Nepal
The average monthly wage in Nepal was about $300 in 2014. This is almost 10 times lower than in Australia.
(Nepal government, 2014) Which means that the Starbucks coffee shop in Kathmandu can hire young people
with its low budget.

Bank in Nepal
The below table illustrates the list of major banks in Nepal. All banks have their head offices, and they are
almost located in Kathmandu, the capital city in Nepal. Therefore building a Starbucks coffee shop in
Kathmandu is the most beneficial place to contact with local banks and raise funds throughout major Nepal
banks. (List of Banks and Financial Institutions, 2017)

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(Sourced : NRB, 2017)

Investment in Nepal
Nepal encourages foreign investment both as joint venture operations with Nepalese investors or as 100 per
cent foreign-owned enterprises. The few sectors that are not open to foreign investment are either reserved for
national entrepreneurs in order to promote small local enterprises and protect indigenous skills and expertise
or are restricted for national security reasons. Approval of the GoN is required for foreign investment in all
sectors. No foreign investment is allowed in cottage industries. However, no restriction is placed on transfer of
technology in cottage industries.
Nepal governments recommend outsourcing from US, Europe and Australia. They say “Most foreign
companies are looking to outsource programming, research or labor-intensive work to developing countries.
These companies will save a substantial amount of money by doing so. Such outsourcing opportunities exist
especially in web programming because of a large number of students interested in computer engineering in
Nepal.” (GoInvestment of Nepal, Ministry of Foreign Affairs)

7-4 SWOT Analysis


Strengths Weakness

• A pool of cheap labour • Language Barriers between Nepali and


• Very few competitors English
• Brand name power • Cultural barriers
• Strong supportiveness • Hard to gain good suppliers
• A lot of successful experiences in the world • Undeveloped transportation environment
• Accountability of Starbucks
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Opportunities Threats

• High opportunities to expand the project to a • No Starbucks coffee shop in Nepal


lot of different areas in Nepal • Not efficient financial environment in Nepal
• The improvement of employment • Lack of understanding the western coffee
• Creating well-educated young people for culture
working • Lack of experiences in the western service
industry
• Political threats

8. Gantt Chart

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9. Resources
Different types of resources are essential to carry a project’s tasks successfully. Resources are mainly of two
types i.e. Human Resources and Physical Resources. It is very important to have adequate resources to a
project that stays within the budget.
1. Human Resources

Job Title Staff Status Qualifications Experience Time Salary (For Salary (in
required (Years) Period 3 years) ($) NRs: $1 =
(Years) 82Nrs)
Project 1 Full-Time M.B.A. Min. 4 years 3 110,000 9,020,000
Manager
Finance 1 Full-Time M.B.A. Min. 4 years 3 100,000 8,200,000
Manager
Marketing 1 Full-Time M.B.A. Min. 4 years 3 85,000 6,970,000
Manager
Trainer 2 Full-Time/ Barista Training 2 years 3 60,000 4,920,000
Part- Time Course/ Food
Hygiene and
Safety
Assistant 1 Part-Time B.B.A. 2 years 3 37,500 3,075,000
Manager
Shop 4 Casual/Part- Intermediate N/A 3 82,000 6,724,000
Assistant Time
Cleaners/ 2 Contract Technical Skills 1 year 3 80,000 6,560,000
Technician

Source : https://www.glassdoor.com.au/Salary/Starbucks-Human-Resources-Manager-Salaries-
E2202_D_KO10,33.htm?countryRedirect=true

Total Cost: $554,500

2. Physical Resources

Resources Quantity Rate(NRs) Cost(NRs) Cost(in $: 1$


= 82Nrs)
Land (1.2 acres) 1 9,711,465 per 11,653,758 142,119.00
acre
Starbucks coffee 1 15,625,100 15,625,100 190,550.00
shop (including all
building materials)
Laptops and 3 90,200 270,600 3,300.00
Computers
Furniture (Chairs, 7 sets 43,952 307,664 3,752.00

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desk, tables, etc.)
Fire extinguishers 2 5,166 10,332 126.00
Expresso Machines 2 59,122 118,244 1,442.72
Refrigerators/ 2 67,558.98 135,117.96 1,647.78
display freezers
Kitchen equipment 20 sets 1,640 32,800 400.00
Flyers 500x5 = 2500 200 500,000 6,097.5

Sources:
1. http://hamrobazaar.com/c201-real-estate-for-sale-land
2. https://thehimalayantimes.com/real-estate/safe-and-affordable-prefab-homes/
3. https://www.daraz.com.np/laptops/
4. https://www.daraz.com.np/living-room-furniture/
5. http://haatemaalo.com/ad-detail/fire-extinguisher-in-kathmandu-nepal/3347
6. https://www.daraz.com.np/espresso-machines/
7. https://www.meroshopping.com/refrigerators-freezer
8. http://www.sagtanigroup.com/bakery-confectionery/

Total Cost: $349,435.061

Other Expenses:
The other expenses that are required during the project are:
Items Quantity Rate(NRs) Rate($) Cost(NRs) Cost($)
Electricity 3 years = 36 31,250 per 381.11 1,125,000 13,719.51
months month
Phone bills 36 months 2250 per 27.44 81,000 987.80
month
Vehicle 2 5,560,000 67,804.88 11,120,000 135,609.75
expenses (2
private vans)
Internet 3 years 2,150 per 26.22 77,400 967.50
month
Maintenance - - 55,000 670.73

Sources:
1. http://www.nepalenergyforum.com/nea-electricity-tariff-rates/
2. https://www.ntc.net.np/pages/view/pstn-telephone-charges
3. http://www.dealgara.com/toyota-hiace-iid-483
4. https://worldlink.com.np/ratesnew.php

Total Cost: 151,955.29

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10. Budget

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Financial Estimations:

We are planning to build a Starbucks coffee shop in Nepal. For this project, the overall required fund is
$1,078,265.08. We are a bit over budget but we have got sponsors from Himalayan Java and Café Lava.

Total income in 3 years = 1,109,467.88


Total expenditure in 3 years = $1,078,265.08
Total profit in 3 years = $31,203.8

Since, this is the first ever Starbucks in Nepal, the profit for our first three years may not be high due to lack of
awareness. We have created some marketing strategies to increase the awareness for the first 6 months. We
also aim to increase our profit by 15% every year.

23 | P a g e
11. References

https://www.starbucks.com.au/Learning-Development.php
https://www.starbucks.com/responsibility/community/opportunity-youth
http://www.diva-portal.org/smash/get/diva2:353800/fulltext02
https://www.starbucks.com/responsibility/community/starbucks-foundation
Fogler, HS and LeBlanc, SE 2014 Strategies for Creative Problem Solving, 3rd ed. Pearson Education INC.,
Upper Saddle River
Nepal Coffee - Nepalese Coffee Beans - Espresso & Coffee Guide
https://espressocoffeeguide.com/...coffee/asian...coffees/nepal-coffee-nepalese-coffee/
Company Information | Starbucks Coffee Company
https://www.starbucks.com/about-us/company-information
M. AYMAN AL AHMAR, 2005-2010, Asstt. Prof. and Deputy Dean, College of Engineering and Information
Technology, Fujairah Campus, Ajman University of Science and Technology, UAE
, RULE BASED EXPERT SYSTEM FOR SELECTING SOFTWARE DEVELOPMENT METHODOLOGY,
pp144-145

ILX Marketing Team, 7th June 2010, It takes two to tango in project management, <
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rate >

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12. Appendices

12-1Appendix 1: The Project Team

Alisha Tandukar
Alisha Tandukar is currently studying Bachelor in Business Accounting in Victoria University with her major in
Accounting. She has done number of subjects in marketing and public relations while her degree. She is a
brand and marketing strategist who is currently working on a project of Starbucks Nepal. After Spending three
years in marketing representative and marketing for multimillion dollar brands (McDonald’s company), she
knows what truly drives conversions in present market. She has her expertise in social media marketing and
complex problem solving. She brings her leadership and communication skill to the table and keeps the team
together. She aims to make the maximum of the seed funding in best development of youth opportunities to
make a positive impact to the society through her PR and Marketing knowledge.
Reejash Nakarmi
Seong Hwa Kim
KIM completed Diploma of Website Development in Wells International College in 2016, and now he is taking
Bachelor of Business in Victoria University. He has experienced a couple of projects in IT industry. Throughout
the projects he learned how to make projects be successful. For instance, risk management, time
management, cost management and human resource management. He also studied project management in
Victoria University, Sydney. His most strength part in project management is breaking down all necessary
tasks and creating the professional Gantt chart for completing a project. Another strength is that he has a good
sense of responsibility at his tasks in workplaces. Once a task is assigned to him, no matter what the task is
difficult, he does his best and finishes the task with a good quality within the due date.
Namaraj Khanal
Namaraj Khanal is studying Bachelor of business at Victoria University, Sydney, Australia. He was completed
his higher education from Nepal and further continuing his bachelor degree in Australia. As we know that,
Starbucks is known as high reputed company so we only hire the team member who are capable of doing
business effectively and efficiently this thing we found on him. He has two years experienced as a supervisor
in KFC and Human Resource in Meriton housing apartment in Sydney. Throughout his working period, he
always hired the good skilled manpower and solve the employee’s problem as a human resource
management department. Working on behalf of company and employee is the main key components of him.
So, we are decided to include him as a human resource in Starbucks company.

12-2 Appendix 2: Project management methodology

12-2-1. Waterfall Methodology (Andrew Powell-Morse, 2016)


Much like construction and manufacturing workflows, waterfall methodology is a sequential design process.
Waterfall methodology has the eight stages; conception, initiation, analysis, design, construction, testing,
implementation, and maintenance. And when one stage has been completed, the next step can be moved.

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The waterfall methodology is the worst choice when time is critical because it does not allow for easy schedule
changes. (M. AYMAN AL AHMAR, 2005-2010)

Advantages of the Waterfall Methodology


 Meticulous record keeping
 Showing clear vision about the final achievements

Disadvantages of the Waterfall Methodology


 Difficult to change previous steps
 Rely heavily on initial requirements
 When some errors are founded in requirements, the project has to start again from the first stage of
the project.
 Testing is conducted after producing goods
 Huge impact of cost and schedule when other requirements added

Cases of using waterfall methodology


 When having the clear picture of final products
 When not adding additional requirements
 When the speed is not vital in a project

12-2-2. PMBOK Methodology(Duncan Haughey, 2013)


PMBOK (Project Management Body of Knowledge) is an American National Standards Institute (ANSI)
standard. The US’s Project Management Institute (PMI) published PMBOK 4th Edition to replace the 3rd
Edition. The similarities do not end there. (ILX Marketing Team, 2010)

5 basic process
 Initiating
 Planning
 Executing
 Monitoring and Controlling
 Closing

10 knowledge areas
 Project Integration Management
 Project Scope Management
 Project Time Management
 Project Cost Management
 Project Quality Management
 Project Human Resource Management
 Project Communications Management
 Project Risk Management
 Project Procurement Management
 Project Stakeholder Management

12-2-3. PRINCE2 Methodology(Graspskills, 2017)

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PRINCE2 (Projects IN Controlled Environments) is quite process oriented and is widely recognized throughout
the UK. In the last two years the UK’s Office of Government Commerce (OGC) released PRINCE2 2009 to
replace the 2005 version. (ILX Marketing Team, 2010)

Vital Capabilities
 Support Business Outcome.
 Empower Business Change.
 Oversee Risk in Line with Business Needs.
 Enhance Customer Experience.
 Show Value for Money.
 Persistently Improve.
Advantages of the PRINCE2 Methodology
 Overseeing projects inside a plainly characterized structure.
 Learning about what to do when the project does not go as expected.
 Backings Cross Functional Working
 Adaptable Control.
Disadvantages of the PRINCE2 Methodology
 Improper for little tasks

12-2-4. Agile Methodology (Andrew Powell-Morse, 2016)


The agile methodology is a more distinct program from PMBOK and PRINCE2. The most important factor of
the agile methodology is that it is significantly flexible much more than other project management
methodologies.

Advantages of the Agile Methodology


 Flexibility
 Easy to add features
 Easy to add customer’s feedback
 Easy to test and there is no specific stage for testing

Disadvantages of Agile Methodology


 Hard to control all of sprints in a project
 Needed a specialist as a project manager

Cases of using agile methodology


 When rapid production is needed
 When anticipated a lot of changing requirements during the scope of the project
 When starting totally new projects
 4. When the industry related to the project is quite changeable
 

12-2-5. Conclusion (Our project team’s choice)


The project team of this project has decided the agile methodology. This is simply because this project,
creating a new Starbucks coffee shop, is the first challenge in Nepal. Thus, the project team is unable to obtain

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a successful case information in Nepal, and also it is remarkably hard to anticipate possible problems in the
future. This is meaning that this project would be significantly changeable throughout the whole process of the
project. Therefore, first of all, waterfall methodology is out of the question as it is the worst choice in
changeable project. And amongst PMBOK, PRINCE2, and agile methodology, the strongest methodology in
managing changeable projects is the agile methodology. (See 12-2-4) That is the reason why the project team
has chosen the agile methodology for this Starbucks project.

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