A Literature on the Compensation Culture Litigation Crisis - Free Essay Example

Sample details Pages: 6 Words: 1904 Downloads: 10 Date added: 2017/06/26 Category Law Essay Type Analytical essay Did you like this example? Literature Review It has been widely discussed that Britain is in the grip of a à ¢Ã¢â€š ¬Ã‹Å"compensation cultureà ¢Ã¢â€š ¬Ã¢â€ž ¢ and, thus, a à ¢Ã¢â€š ¬Ã‹Å"litigation crisisà ¢Ã¢â€š ¬Ã¢â€ž ¢ was said to be a problem. Worries of this kind can be found in newspapers, in official reports, political speeches, legislative debate, and judicial decisions. Therefore, in 2004 Stephen Byers protested about the opposing effects of excessive litigiousness on both the economy and the national psyche,[1] while David Davis the shadow Home Secretary also said that if a conservative government were to be elected it would cut out à ¢Ã¢â€š ¬Ã‹Å"the cancer of litigationà ¢Ã¢â€š ¬Ã¢â€ž ¢.[2] This piece aims to discuss the reforms proposed in accordance to the compensation culture and the government response to that. Don’t waste time! Our writers will create an original "A Literature on the Compensation Culture Litigation Crisis" essay for you Create order Thorough research was done by Lord Young that sets out measures which should be considered to bring effective reforms. Lord Justice Jackson also reviewed in his report matters regarding civil litigation which the government has reacted to. However, very less investigation has been carried out in relation to describe what the à ¢Ã¢â€š ¬Ã‹Å"claim cultureà ¢Ã¢â€š ¬Ã¢â€ž ¢ actually is and considering if it exists is a whole different story.[3] This article reviews some of the recent evidence. The initial point to discuss here is that is there really a problem. The answer to this question is highly doubtful, depending as it does on what exactly is thought to establish the à ¢Ã¢â€š ¬Ã‹Å"problemà ¢Ã¢â€š ¬Ã¢â€ž ¢, as well as who is asked. The development of a à ¢Ã¢â€š ¬Ã‹Å"compensation cultureà ¢Ã¢â€š ¬Ã¢â€ž ¢ infers an enlarged and irrational willingness to pursue legal redress when things go wrong,7 whilst a à ¢Ã¢â€š ¬Ã‹Å"litigation crisisà ¢Ã¢â€š ¬Ã¢â€ž ¢ suggests that th is change in social attitudes has been interpreted into unwanted points of official debating. It seems that the label of the problem has picked up in its importance due to the idea that number of claims showed incline over the years. In 2002, a report by the Institute of Actuaries said that there was an increasing compensation culture, guessing the total cost of claims at about  £10 billion a year or 1 per cent of GDP. This is a very big sum of money though it signifies a wide diversity of claims as well as their related administrative costs and expenses. The real problem was said to be a perception. Too many of us have been convinced by media stories and the greedy advertising of certain claims management companies that large sums of money are easily accessible.[4]According to the Task Force there is no accurately completed basis for such views or for declaring that Britain is suffering from a have a go culture. However some reports absurdly decided that an urban my th declaring its existence has been widely accepted as the reality which has motivated a minority to press hypothetical claims that lack value or are false.[5] In these impoverished times to save on costs, it is vital that the Young review studies the British Regulation Task Force report. There are a lot of similarities in the Young report and the BRTF report. The BRTF decided that the compensation culture was a myth however, it influences other acting bodies to deliberate that it exists and is a grave problem. Lord Young has previously pointed out the illogicality of many myths and here Lord Young highlights what are clearly misunderstandings of the law. For example, à ¢Ã¢â€š ¬Ã…“Ridiculous compensation culture claims and pay-outs burden on tourist attractionsà ¢Ã¢â€š ¬Ã‚  [6] Lord Young specifies that he means to examine the litigation procedure inpersonal injury compensation claims in his report. The strengths of his report are that it tries to uncover the rea lity thatà ¢Ã¢â€š ¬Ã¢â€ž ¢s been hidden behind the mask of exaggerations. It also suggests paramount reforms to improve the status of law governing compensation culture. His recommendations focus largely on how to regulate the abundant amount of pay-outs by government to regulate the feud of compensation culture. Where there are some extremely good points in his report it is unfortunate that the element of objectivity regarding references and approach is absent.[7] It can be seen from the heading à ¢Ã¢â€š ¬Ã‹Å"Compensation Cultureà ¢Ã¢â€š ¬Ã¢â€ž ¢ that the initial point of the research is biased and perceptive. However, the new claims procedure in road traffic accident cases following this report is bedding in but seems already to be having an intensely reducing effect on time taken and costs incurred.[8] The statistics can be seen to assess the delicacy of the issue. The rise in the number of claims is the reason why the blame culture is in question. Table showing numbe r of claims reported (CRU) Dates Clinical Negligence Employer Motor Other Public Liability not known Total 2013/2014 18,499 105,291 772,843 14,467 103,578 2,123 1,016,801 2012/2013 16,006 91,115 818,334 17,695 102,984 2,175 1,048,309 2011/2012 13,517 87,350 828,489 4,435 104,863 2,496 1,041,150 2010/2011 13,022 81,470 790,999 3,855 94,872 3,163 987,381 It can clearly bee seen that the total number of claims has stabilised over the last few years. However, even the road accident claims have been showing a decline from 2011. It has established by various authors and it can be seen from the stable that the ratio and number of such claims fluctuate time to time. However, few things can be seen clearly. The total number of claims is less than the past two years which suggests that the recommendations have an impact on regulating the law nevertheless one can still argue that the year 2014 is not finished yet. So the number of claims will increase because future claims of this year still have to be recorded. There has been a recent extensive review of civil litigation by Jackson LJ. The governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s response to that review was positive. Jackson makes several important recommendations and which are listed below,[9] à ¢Ã¢â€š ¬Ã‚ ¢ Consumers should no longer be able to recover the cost of After the Event (ATE) in surance à ¢Ã¢â€š ¬Ã‚ ¢ There should be ban on referral fees whether paid in cash or by discounted or free legal services. à ¢Ã¢â€š ¬Ã‚ ¢ Success fees should come out of client compensations. Impact: Up to 25% reduction in damages in addition to the deductions due to non-recovery of any ATE premiums. à ¢Ã¢â€š ¬Ã‚ ¢ There should be fixed costs for fast track personal injury claims. à ¢Ã¢â€š ¬Ã‚ ¢ There should be green light for contingency fees. à ¢Ã¢â€š ¬Ã‚ ¢ Not having to pay defendantsà ¢Ã¢â€š ¬Ã¢â€ž ¢ costs in lost cases. à ¢Ã¢â€š ¬Ã‚ ¢ There should be a 10% increase in general damages. His recommendations were very considerate of the law and problems in the society. The government published its response and conclusion in March 2011 following the proposals in Lord Jacksonà ¢Ã¢â€š ¬Ã¢â€ž ¢s report.[10] The major issue to assess was the à ¢Ã¢â€š ¬Ã‹Å"no win no fee agendaà ¢Ã¢â€š ¬Ã¢â€ž ¢. The government intended to: Abolish the general recoverability of the CFA success fee from the losing side. Abolish the general recoverability of after the event insurance premiums Introduce the package of associated measures set out by Lord Justice Jackson. It can be seen clearly that a lot of emphasis has given to the law professional fees and insurers meaning that these are the two main bodies that enhance the view of compensation culture. Firstly, ità ¢Ã¢â€š ¬Ã¢â€ž ¢s the law professionals such as lawyers and barristers who in order to make their money support the idea of high level of claims. Secondly, the insurance companies bag some money for their own benefit and use the law for their own advantage. As lee McIlwaine says, à ¢Ã¢â€š ¬Ã…“If we must follow this folly the insurance industry ought to agree a strict regulated pricing regime so that additional profits attained as a consequence of any reduction of rights were returned to the community by way of reduced premiums or indeed injury prevention and treatment. Any taker?à ¢Ã¢â€š ¬Ã‚  There are two other deliberations associated with the numbers issue. First, claimant lawyers often point out with substantial explanation that countless majorities of injured person s never use the law and that it is exactly the absence of a compensation culture that describes our liability organization. A second point is whether genuine, well-founded claims should be calculated as part of the problem. Another point is that it is not easy to find an appropriate substitution measure. For example a 1998 study of legally assisted personal injury cases stated a success amount of 63% with more than 80% of road traffic applicants recovering compensation.[11] This suggests that the great majority of injury claims are well-founded and honest. However, since all the cases in the example must have approved by Legal Aid Boards merits test in order to be capable for public funding in the first place, no such supposition can finally be made? It is very clear that lawyers are doubtful to want to act for clients unless their chances of success are good. Indeed, the problem we started with seems to have come down to this; Effectively they say that whilst some liabi lity stories may be media overstatements or even mythical, business and the public sector have been put on the self-justifying side by the introduction of conditional fee agreements (CFAs) and the strong tactics of some claims management companies and solicitors practices. So it bring us to say that First that only solid cases are likely to be taken up which, while hardly surprising from the viewpoint of claimant lawyers,[12] falls well short of approving the claim sometimes made by politicians that the replacement of legal aid by conditional fees has made justice available to all. Equally, there have been times on which courts have simply wanted to send a powerful note to possible claimants and the legal profession. Thus in Gorringe v Calderdale[13] , Lord Steyn warned that à ¢Ã¢â€š ¬Ã…“the courts must not contribute to the creation of a society bent on litigation, which is premised on the illusion that that for every misfortune there is a remedyà ¢Ã¢â€š ¬Ã‚ .[14] CON CLUSIONS In some jurisdictions, the number of injury claims that have been made seem to act as a yardstick to measure the moral state of the country. The question here is that: Are we less tolerant and more litigious? Regrettably, the accessible statistics do not deliver a suitably reliable answer, though on balance it looks as if the British continue to be a nation of lumpers rather than litigators[15]. It can be concluded from the discussion above that there is no specific proof of the existence of a claim culture in Britain. The statistics show that there is a drop in the registered claim in the past few years. It seems like that by making these claims, lawyers and insurance companies are most benefited. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s clear that the some of the legal bodies have done an impressing job in proposing reforms which will bring a great change and according to the statistics they started to show some effect. So hence concluding that compensation culture has been referred to a myth is most likely a better definition of its status. Statements like à ¢Ã¢â€š ¬Ã‹Å"compensation culture without any argument helps to sell the newspapers that signify to hate it most however, we should be careful before we allow it to command the legislative policy-making agenda. [1] à ¢Ã¢â€š ¬Ã‹Å"Curb claims culture, says Byers, The Guardian, 10 March 2004. [2] à ¢Ã¢â€š ¬Ã‹Å"Victim Nationà ¢Ã¢â€š ¬Ã¢â€ž ¢, The Spectator, 21 August 2004. Too many rights seems to be the central thesis. [3] Office of Fair Trading, An analysis of current problems in the UK liability insurance market, June 2003, at para 10.4. [4] W. Haltom and M. McCann, Distorting the Law. Politics, Media, and the Litigation Crisis [5] Foreword titled Compensation Culture: Exploding the Urban Myth. [6] https://www.dailymail.co.uk/news/article-1268723/Ridiculous-compensation-culture-claims-pay-outs-burden-tourist-attractions.html [7] https://www.13kbw.co.uk/articles/young-report.pdf [8] Cru statistics [9] https://www.judiciary.gov.uk/NR/rdonlyres/8EB9F3F3-9C4A-4139-8A93-56F09672EB6A/0/jacksonfinalreport140110.pdf [10] Global Competition Litigation Review, implementing of Lord Jacksonà ¢Ã¢â€š ¬Ã¢â€ž ¢s recommendations- the Government response. [11] Plea sence, n 24 at 11-13. [12] The CABx report, para 9, observes that CFAs create perverse incentives for the legal profession [13] Gorringe v calderrdale [14] [2004] UKHL 15 at [2]. [15] Lee McIlwaine , Tort Reform and the Compensation Culture

reaction Paper - 692 Words

Last October 3, 10 and 12, 2012 it was a hot afternoon when we watch a movie entitled Jack and the Beanstalk: The Real Story, this movie was related to our last topic in management 5. Instead of having a formal meeting in our subject in Social Responsibility and Good Governance, we need to watch because after that we need to have a reaction paper regarding the movie. In the beginning, the story makes me feel bored of watching and listening because the audio and the cast of the movie speak very fast and I don’t understand what they saying. And another reason is somebody caught my attention or maybe I’m not used to watch a movie at noon. However, the last day of the movie story, I had the opportunity to listen carefully to the†¦show more content†¦All the people in the magical world believe that he is the one who steal the goose and harp they want Jack to die. In order to save his own life, Jack must right the wrongs of the past and return the magical harp and goose that lays the golden eggs to their rightful home. With the return of the Goose and Harp, the Giants world is restored. After returning to his world, Jack saves the companys reputation and he decides to support the project of genetically-engineered plants that he previously rejected. At the end, Ondine returns to Jack, where she is allowed to spend one Giant week (seven years in our world) with him and they lived happily ever after. The story has been changed from the traditional Jack and the Beanstalk. The giant has been transformed into a good giant, and Jack has been transformed into thief. I think this is the best part of this new version when Jack returned what his ancestors have stolen from the giant; he not only restored a world’s riches. He also earned for himself a new meaning of life. Jack Robinson corrected his ancestor’s faults after how many years. In our case as people, if we want our future to be better, we must right the wrong of the past. Question, are you ready to face the truth and the consequences of your past actions and decisions? Of course, it takes time to even accept the truth but with acceptance comes joy and peace and with the two, comes the right decisions and actions. Yes, it takes time, but it willShow MoreRelatedReaction Paper1873 Words   |  8 PagesREACTION PAPER It is said that effective teacher will use both assessment and evaluation regularly to improve student learning and to guide instruction. Indeed, both have pivotal roles in the teaching-learning process yet, somehow they do differ in many ways. Assessment and evaluation measure whether or not learning and/or learning objectives are being met. One could look at assessment and evaluation as the journey (assessment) versus the snapshot (evaluation). 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Diabetes & Metabolism

Question: Describe about the Diabetes Metabolism? Answer: Introduction The best method that is used to deal with the understanding of any of the medical aspect or that of disease may be through Evidence Based Project or EBP. The problems that have been analyzed in the prior studies have been used to understand the current situation. In the present study the most important case that has been followed includes prevention of diabetes or the major cause of the same (Andreelli et al. 2009). Tools and reflective discussion The most effective tool that is used these days includes the measurement of the diabetes reading through fasting glucose. There are devices that are being made by a number of organizations to use the technology for the purpose of measurement. There are a number of clinical studies and advancement research that has been carried out. These days it has been found that there is an extended range of the people who are affected with diabetes. The range includes from old people, to adults and children (Dean Galdas, 2009). The most important aspect is that of successful implementation of the programs. In such case it is important to find a technique or a method that is crucial. The best diagnostic tool that has been made is the machine that could be used in order to measure the reading of diabetes. As per the evidence based report it has been found that one out of twelve people are affected with the disease. Apart from this one out of two affected people are not aware of the fact that they are having the disease. EBP is a process that includes five steps: The question is to be analyzed that helps in getting the proper answer that is related. The next step deals with the facts and the literature that forms the base of answering the question. The results that have been received are then analyzed in order to receive the formal evaluation of the project. There it is process of evaluation that is integrated with the use of evidence. The result that has been found is then re analyzed in order to know about the future prospect and the improvements that are required in future. The paper that has been conducted on similar ground made it evident in the previous cases that the awareness of the people was very restrained and confined (Kocurek, 2009). It is important in such case that there has to be awareness programs that is to be started along with the proper measuring techniques. The methods that are used helps in gaining the required knowledge effectively. The intervention of the same could be included in the following: The tools for intervention may be the ones that are important or the assistants in the health care sector. The help and the understanding that they have are crucial in regard to the increasing levels of the diabetic rate (Bosi, 2009). The nurses have a clear idea of the reasons that are pivotal for the increase rate and the negligence that are related to the patients. A shared decision making process would help for the lifestyle goals and the communication style. The next method of intervention could be the understanding of the problem with the help of technology. The use of the modern machineries could be useful in dealing with the problem and to get the reading. Based on this there are methods of intervention that could be tried. In such case it is important to deal with the same prospects of technology efficiently (Tesfaye Selvarajah, 2009). The computer based risk analyzing tools that are used can be another method of dealing with the technology. There has been studies that has been carried out is US with the relationship that could be established with diabetes and cancer. In such case it is necessary for any organization or the medical practitioners to know about the previous study and to bring out effective medical process (Jaffe, 2015). Conclusion It may be said in this regard that there are a number of aspects that is to analyzed in order to know about EBP. The evidence that are received from the intervention process of diabetes could be used in order to know about the current scenario. There are a number of aspects that is carried out to know about the situation in the most effective way. In such case it is crucial to note that there has to be an integrated service and technological method that may be analyzed. References Andreelli, F., Amouyal, C., Magnan, C. Mithieux, G. (2009). What can bariatric surgery teach us about the pathophysiology of type 2 diabetes?. Diabetes Metabolism, 35(6), pp.499-507. Bosi, E. (2009). Metformin - the gold standard in type 2 diabetes: what does the evidence tell us?. Diabetes, Obesity and Metabolism, 11, pp.3-8. Dean, H. Galdas, P. (2009). The Social Scientist Within Us: Responsibilities to Diabetes Care, Education and Research. Canadian Journal of Diabetes, 33(1), pp.14-15. Jaffe, S. (2015). US initiative for prediabetes. The Lancet Diabetes Endocrinology. Kocurek, B. (2009). Promoting Medication Adherence in Older Adults ... and the Rest of Us. Diabetes Spectrum, 22(2), pp.80-84. Tesfaye, S. and Selvarajah, D. (2009). The Eurodiab study: What has this taught us about diabetic peripheral neuropathy?. Current Diabetes Reports, 9(6), pp.432-434.

Term Paper of Business Plan Essay Example

Term Paper of Business Plan Essay This restaurant business plan is for Bachelor’s Restaurant, a new medium-sized restaurant located in a trendy neighborhood of Bangladesh. Bachelor’s Restaunt emphasis will be on organic and creative ethnic food. An emphasis on organic ingredients is based on Bachelor’s Restaurant dedication to sustainable development. Additionally, the restaurant procures local foods when possible, reducing their dependence on fossil fuels used for transportation. Introduction: Health is wealth. The knowledge persons of all the years times said this valuable comment forever.Really its true. A healthy body can build a healthy human; a healthy human can develop a civil society. A good civil society can build a strong nation. So it is never ever can underestimate the necessity of human health. What is inside the sound human body? If we postmortem the causes then we will get that, a healthy balanced diet is the one of the main reason of maintaining the good health. Now a day the world has become more more professional. In most of the families who duels in the city area the husband also wife are engaged with service.They get a very little or negligible time to cook food in home. And the demand of first food is increasing highly. We will write a custom essay sample on Term Paper of Business Plan specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Term Paper of Business Plan specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Term Paper of Business Plan specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In accordance with the similarity we have decided to set up a restaurant named Bachelor’s Restaurant. It’s the institution where we are providing guarantee of healthy balanced diet, nutrition food as well as in cheap rate. Step One: Making the Commitment Bachelor restaurant fast-casual restaurant, serving fast, fresh, healthy grilled meats and vegetables. The first store will be located in Dhaka.. The restaurant will be located at 16/2 Baily road in Dhaka.The founder and president of bachelor’s restaurant is Mr. asif hasnat Mission Bachelor’s Restaurant is a great place to eat, combining an intriguing atmosphere with excellent, interesting food that is also very good for the people who eat there. We want fair profit for the owners, and a rewarding place to work for the employees. Objectives 1. Sales of $350K the first year, more than half a million the second. 2. Personnel costs less than $300K the first year, less than $400K the second year. 3. Profitable in year two, better than 7. 5% profits on sales by year three.Step Two: Analyzing oneself Bachelor’s Restaurant is a single-unit, medium-sized restaurant. We focus on organic and creative food. The restaurant will be located in a Baily Road. Most important to us is our financial success, but we believe this will be achieved by offering high-quality service and extremely clean, non-greasy food with interesting twists. 2. 1 Company Ownership The restaurant will start out as a simple sole proprietorship, owned by its founders. 2. 2 Start-up Summary The founders of the company are Mr. Asif hasnat. And his companion Mr. Motiour Rahman.Focuses on the financial issues and Motiour Rahman on the personnel issues. Motiour Rahman earned her business major undergraduate degree from the University of IBAIS. We have found the location and secured the lease for $2,000 per month. We will be able to set up shop in time to begin turning back a profit by the end of month eleven and be profitable in the second year. The place is already equipped as a restaurant so we plan to come up with a total of $40,000 in capital, plus a $100,000 SBL-guaranteed loan, to start up the company. Start Up Requirement: Start Up Funding: | |Start-up Expenses to Fund |$3,000 | |Start-up Assets to Fund |$138,000 | |Total Funding Required |$141,000 | | | | |Assets | | |Non-cash Assets from Start-up |$50,000 | |Cash Requirements from Start-up |$88,000 | |Additional Cash Raised |$0 | |Cash Balance on Starting Date |$88,000 | |Total Assets |$138,000 | | | | |Liabilities and Capital | | |Liabilities | | |Current Borrowing |$0 | |Long-term Liabilities |$100,000 | |Accounts Payable (Outstanding Bills) |$1,000 | |Other Current Liabilities (interest-free) |$0 | |Total Liabilities |$101,000 | | | |Capital | | |Planned Investment | | |Investor 1 |$25,000 | |Investor 2 |$15,000 | |Additional Investment Requirement |$0 | |Total Planned Investment |$40,000 | |Loss at Start-up (Start-up Expenses) |($3,000) | |Total Capital |$37,000 | |Total Capital and Liabilities |$138,000 | |Total Funding |$141,000 | |Particulars |Amount ($) | |Start-up Expenses | | |Legal |$1,000 | |Stationery etc. $1,000 | |Other |$1,000 | |Total Start-up Expenses |$3,000 | | | | |Start-up Assets | | |Cash Required |$88,000 | |Other CurrentAssets |$50,000 | |Long-term Assets |$0 | |Total Assets |$138,000 | |Total Requirements |$141,000 | Step Three: Choosing a product or Services 3. 1 Services Bachelor’s Restaurant offers a trendy, fun place to have great food in a social environment. Chef Rafiq Badsha has a large reputation of ethnic ingredients and recipes. Bachelor’s Restaurant forecasts that the majority of purchases will be from the chefs recommendations. Ethnic recipes will be used to provide the customers with a diverse, unusual menu. Chef Rafiq Badsha will also be emphasizing healthy dishes, recognizing the trend within the restaurant industry for the demand for healthy cuisine. 3. 2 The Menu The menu is going to be extremely simple but changing every day.We will keep a small group of constants on the menu and then feature a chefs recommendation that we plan to have 85% of meals ordering. This will help us to reduce waste and plan ingredients and purchasing. 3. 3 Organic Ingredients The organic ingredient element will allow us to price to the extremely wealthy Internet entrepreneurs who are looking to spend an exorbitant amount of money to have peace of mind that their money is still coming back to themselves. We will be extremely ecologically conscious as well, and spread this across our literature. Eating at Bachelor’s Restaurant will feel like having contributed to the Anjuman Mufudul and drinking fresh squeezed orange juice. 3. 4 Ethnic Ingredients and RecipesOur chef will have great latitude in designing and producing menu offerings from many different world cultures. We will endeavor to procure all the traditional, authentic ingredients necessary to hold true to these varied and in teresting cultural recipes. 3. 5 Interior Accoutrements People need to keep life interesting, and our artwork will reflect the world influences that are core to the attitude of the Bachelor’s Restaurant chef. 3. 6 Product [pic] [pic] [pic] [pic] Step Four: Market Research Analysis Because of the founders connections within the very trendy area of Bangladesh, we have an excellent feel for the area and its core group of customers.They will all share something alike, which is a feeling of being in the in crowd and having gotten it in life. Although the crew will be different and not connect with each other in each segment, each segment is complementary to the others. We do plan to raise menu rates as the restaurant gets more and more crowded, and to make sure we are charging a premium for the feeling of being in the in crowd. 4. 1 Market Segmentation 4. 1. 1 The Lonely Rich Most of the lonely rich are tech workers these days, and most of those tech workers are Internet workers. Their life has become their website servers and code they write, and the people who help them to make the decisions in that world.They hang out with each other, but desperately want to get away from it and use the money they are racking up. Because this wealth has come fairly easily for them, it is particularly easy to separate them from their money again they spend the most on drinks, appetizers and tips. 4. 1. 2 Young Happy Couples The restaurant will have an atmosphere that encourages people to bring dates and to have couples arrive. It wont be awkward for others, and Bachelor’s Restaurant does want to be a social place where people meet each other and develop a network. These young couples are generally very successful but balanced and wont be spending as much on drinks. 4. 1. 3The Rich HippiesThe rich hippies in Bangladesh are a massive group with tremendous influence over the citys government and private enterprise. They wear tie-die but drive BMWs and crave the feeli ng of being in a social circle that is changing the world even if in different ways than in their glory days. We will cater to their ecological ideology and contribute to charities to help them part with more of their money. 4. 1. 4 Dieting Women The organic food menu will always have a line of extremely delicious very low-fat meals. Bachelor’s Restaurant will have tables of women meeting like they do in shows like Sex and the City, to discuss all types of matters while feeling good about the food they eat. [pic] |4. Market Analysis: | | | | |Year 1 |Year 2 |Year 3 | |Unit Sales | | | | |Meals |22,822 |35,000 |45,000 | |Drinks |11,415 |17,500 |22,500 | |Other |240 |500 |1,000 | |Total Unit Sales 34,477 |53,000 |68,500 | | | | | | |Unit Prices |Year 1 |Year 2 |Year 3 | |Meals |$15. 00 |$15. 00 |$15. 00 | |Drinks |$2. 00 |$2. 00 |$2. 00 | |Other |$10. 00 |$10. 00 |$10. 0 | | | | | | |Sales | | | | |Meals |$342,330 |$525,000 |$675,000 | |Drinks |$22,830 |$35,000 |$45,000 | |Oth er |$2,400 |$5,000 |$10,000 | |Total Sales |$367,560 |$565,000 |$730,000 | | | | | | |Direct Unit Costs |Year 1 |Year 2 |Year 3 | |Meals |$2. 00 |$2. 00 |$2. 00 | |Drinks |$0. 50 |$0. 50 |$0. 50 | |Other |$1. 00 |$1. 00 |$1. 0 | | | | | | |Direct Cost of Sales | | | | |Meals |$45,644 |$70,000 |$90,000 | |Drinks |$5,708 |$8,750 |$11,250 | |Other |$240 |$500 |$1,000 | |Subtotal Direct Cost of Sales |$51,592 |$79,250 |$102,250 | Step Six: Managemnt Summary Bachelor’s Restaurant has assembled a strong management team. Ahmed Khairul will be the general manager.Ahmed Khairul has extensive management experience of organizations ranging from six to 45 people. Ahmed Al Faisal will be responsible for all of the finance and accounting functions. Ahmed Al Faisal has seven years experience as an Arthur Andersen CPA. Ahmed Al Faisal financial control skills will be invaluable in keeping Bachelor’s Restaurant on track and profitable. Lastly, Bachelor’s Restaurant has Chef Rafi q Badsha who will be responsible for the back-end production of the venture. Rafiq Badsha has over 12 years of experience and is a published, visible fixture in the Portland community. Ahmed Khairul has great experience managing personnel and we are quite confident of his ability to find the best staff possible.Our chef, Rafiq Badsha, is already on board and has a published cookbook that will add prestige to the restaurant immediately. We will be looking to find a young, ultra-hip staff to make sure we add the edge that makes Bachelor’s Restaurant so trendy. Most important to Bachelor’s Restaurant is the financial success which will be achieved through strict financial controls. Additionally, success will be ensured by offering a high-quality service and extremely clean, non-greasy food with interesting twists. Bachelor’s Restaurant does plan to raise menu rates as the restaurant gets more and more crowded, and to make sure that they are charging a premium for t he feeling of being in the in crowd. The market and financial analyses indicate that with a start-up expenditure of $141,000, Studio67 can generate over $365,000 in sales by year one, $565,000 in sales by the end of year two and produce net profits of over 7. 5% on sales by the end of year three. Profitability will be reached by year two. Sales of $350K the first year, more than half a million the second. 1. Personnel costs less than $300K the first year, less than $400K the second year. 2. Profitable in year two, better than 7. 5% profits on sales by year three. [pic] 6. 1 Personnel Plan As the personnel plan shows, we expect to invest in a good team, fairly compensated. We think the planned staff is in good proportion to the size of the restaurant and projected revenues. Personnel Plan | | |Year 1 |Year 2 |Year 3 | |Manager |$60,000 |$65,000 |$70,000 | |Hostess |$42,000 |$45,000 |$50,000 | |Chef |$54,000 |$60,000 |$65,000 | |Cleaning |$30,000 |$35,000 |$40,000 | |Waiters |$72,000 |$100,000 |$130,000 | |Other |$24,000 |$52,000 |$55,000 | |Total People |8 |10 |12 | | | | | | |Total Payroll |$282,000 |$357,000 |$410,000 | Step Seven: Developing A Financial Plan We expect to raise $40,000 of our own capital, and to borrow $100,000 guaranteed by the SBA as a 10-year loan. This provides the bulk of the start-up financing required. 7. 1 Break-even Analysis Our break-even analysis is based on the average of the first-year numbers for total sales by meal served, total cost of sales, and all operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. We realize that this is not really the same as fixed cost, but these conservative assumptions make for a better estimate of real risk. [pic] Break-even Analysis | | | | | | | |Monthly Units Break-even |3,205 | |Monthly Revenue Break-even |$34,171 | | | | |Assumptions: | | |Average Per-Unit Revenue |$10. 66 | |Average Per-Unit Variable Cost |$1. 0 | |Estimated Monthly Fixed Cost |$29,375 | 7. 2 Projected Profit and Loss As the profit and loss table shows, we expect to become barely profitable in the second year of business, and to make an acceptable profit in the third year. [pic] |7. 3 Pro Forma Profit and Loss | | |Year 1 |Year 2 |Year 3 | |Sales |$367,560 |$565,000 |$730,000 |Direct Cost of Sales |$51,592 |$79,250 |$102,250 | |Other |$0 |$0 |$0 | |Total Cost of Sales |$51,592 |$79,250 |$102,250 | | | | | | |Gross Margin |$315,969 |$485,750 |$627,750 | |Gross Margin % |85. 96% |85. 97% |85. 9% | | | | | | |Expenses | | | | |Payroll |$282,000 |$357,000 |$410,000 | |Sales and Marketing and Other Expenses |$27,000 |$35,830 |$72,122 | |Depreciation |$0 |$0 |$0 | |Utilities |$1,200 |$1,260 |$1,323 | |Payroll Taxes |$42,300 |$53,550 |$61,500 | |Other |$0 |$0 |$0 | | | | | | |Total Operating Expenses |$352,500 |$447,640 |$544,945 | | | | | | |Profit Before Interest and Taxes |($36,532) |$38,110 |$82,806 | |EBITDA |($36,532) |$38,110 |$82,806 | |Interest Expense |$9,673 |$8 ,887 |$7,637 | |Taxes Incurred |$0 $7,306 |$19,105 | | | | | | |Net Profit |($46,204) |$21,917 |$56,063 | |Net Profit/Sales |-12. 57% |3. 88% |7. 68% | 7. 4 Projected Cash Flow The cash flow projection shows that starting cost and provisions for ongoing expenses are adequate to meet our needs until the business itself generates its own cash flow sufficient to support operations. [pic] Step Eight: Developing a Legal Plan: Legal policy is the most important issue to set up an organization. We have the copyright to our products brand name. we have the government registration number RG-004732/2011. e have also resistered from the BSTI (Bangladesh Standards Testing Institutions) and all our food products are been made tested by the BSTI. So we can strongly assure that, our products are 100 percent halal, safe, hygienic, healthy best suitable for all ages of people. We have not the interest to franchise or dealership in any parts of the country. We have the wish to spread our own branc hes by the own management in the seven division of Bangladesh. Not by set up by the others. Step Nine: Developing a Insurance Plan We have the insurance plan under the most renowned insurance company in the world Met life ALICO. Our insurance policy number is BO- 0851298. We have insured under the fire insurance in the main office. We have the policy of 100 Crore Taka.That is if the institution burns by fire by short circuit other causes, then according to the loss we will get the compensation. But the most extreme value is 100 crore. Conclusion: Bachelor restaurant will operate within the large restaurant industry. While the industry has its upswings and downturns, the variance is less than the economy itself. People need to eat, they can eat in and save money, but the convenience of dining out creates a significant incentive. This is not to suggest that restaurants are recession proof, they are less affected by the general state of the economy. Bibliography: 1. Google 2. Some Inf ormation from renowned restaurant. 3. www. tomyrecipe. com