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Microfinance Sector in Ethiopia: Strengths and Weaknesses

Microfinance Sector in Ethiopia Strengths Weaknesses The delivery of Microfinance services to urban and rural poor is one of the effective instruments to promote poverty alleviation, food production and food security. MFIs have good outreach, mostly in terms of number of clients reached. There is a significant amount of saving mobilized among the clients. MFIs have in general demonstrated good repayment rates. MFIs have in general a very good and personalized onship with clients. Limited supervision and technical support by the Government. Low interest rates charged, affecting self-sustainability. Gap in serving more structured micro enterprises. Low technical capacity. Difficulties in accessing funds from donors. Lack of product diversification. Inadequate management information system (MIS). Microfinance – Important Role in Economic Growth Posted by Fehmeen on February 11th, 2010 In a world where almost half the population lives on less than $2.50 a day, microfinance is one of the better tool for poverty alleviation, economic growth and development in emerging economies. Loans offer the same benefits to major world economies that face growth problems. Having said that, one must realize microfinance is not impervious to impact of the global financial crisis. Instead, we realize that loans can help lower-income groups setup and grow the small businesses, which generate income and employment that helps their communities and their economies. This fact is recognized in theory as well as in practice. “Jobs must be our number one focus in 2010 We should start where most new jobs do – in small businesses, companies that begin when an entrepreneur takes a chance on a dream, or a worker decides its time she became her own boss.” Barack Obama, President of USA, at the State of the Union Address, 2010, about the potential of microfinance. Currently, microfinance services (loans, savings, etc.) are available to over 100 million of the world’s poorest families (Microcredit Summit Report, 2009). That may partially explain the decline in poverty rates over the last three decades. In fact, 5% of the clients of Grameen Banks pull themselves out of poverty each year thanks to loans and most of ACCION USA’s microfinance clients created 2.4 jobs during 2008, when many businesses were downsizing. The Enterprising Spirit of the Poor is Valuable for the Economy Poor people do not want to stay poor. Like everyone else, they wish to put an end to their economic hardship and exploitation by either working or exploring self-employment. In the latter case, money can be raised through friends and family, gathered over time through savings, or obtained through loans fron microfinance insitutions. You can read about this in detail at the Radical Frontiers Blog. Naturally, small business owners are not afraid of failure and their ‘resilience, grit and determination’ has helped them march through the current economic recession, marked by a collapse of debt instruments. Bear in mind that all these are common characteristics of entrepreneurs. Having said that, many micro ventures do not produce the inflated results we expect of them and some studies show microfinance is not all that it promises to be. This may be because of high interest rates on these loans, or other problems faced by microfinance, or even because of a shortage of tools to measure the social impact of microfinance. It may also be because our expectatio, there is another explanation Microfinance is a Slow Yet Promising Process – No Rags to Riches Stories There is a great deal of buzz about the wonders of microfinance which leads us to expect ‘heart wrenching’ and ‘earth shattering’ stories’. These were the expectations an enthusiastic microfinance activist, Taylor Akins (Kiva Fellows) had when he stepped out into the field. Failing to come across dramatic stories, he decided to take off this ‘rose-colored glasses’ and determine the real impact of these loans. The majority of the people he interviewed ran businesses that were already prospering but they said the loan ‘had a positive impact’ on their lives and that despite the occasional lack in demand, most micro entrepreneurs considered expanding their business in the future. These are very mild yet encouraging responses because it shows microfinance helped contribute to their success over an ‘extended period of time’. Microfinance Impact on Women – Empowerment Posted by Fehmeen on November 20th, 2010 One of the reasons microfinance institutions deal largely with women is because they (women) typically lack social and economic assets owned by men in those regions. It is no secret that microcredit, along with micro-savings and group solidarity, brings about visible changes in the lives of women. Women empowerment, which is achieved by instilling ideals such as justice, equality and freedom of women, is the central goal of many development institutions (including microfinance institutions). The search for these social virtues is not unique to the field of microfinance, nor is it a recent phenomenon. They no longer believe they should be dependent (women enjoy greater economic security and tend to jointly make household and business decisions with their husbands) Women involved in microfinance become leaders, instigating change in social practices and relationships and mobilizing social action (one study reveal a reduction in domestic violence as well). Women’s status, both in their homes and communities, is improved when they are responsible for microloans and for managing micro-savings (this would enhance the social support offered in the group lending methodology) Microfinance improves access to networks and markets (for women) giving wider experience of the world outside the home, access to information and possibilities for development of other social and political roles When they generate and control their own income (through microfinance services), women gain a level of power that means they can make decisions independently and command more respect. Advantages of dealing with women clients in Microfinance Posted by Fehmeen on November 26th, 2010 Women in rural areas of developing countries are often associated with extreme poverty, lack of education, poor access to health care, domestic violence, social seclusion, and the list goes on. As a result, the third Millennium Development Goal is to “promote gender equality and empower women”. Naturally, microfinance institutions are eager to serve women for this reason (among others), but working with women has its own pros and cons. This article mentions some advantages of involving women as clients in microfinance. According to a survey report by UNCDF, there are several benefits of working with women clients. Some are institutional benefits, where as others are social benefits. Women make responsible microfinance clients According to the survey, women are good customers in that their repayment patters are “more reliable and timely” compared to repayment patters of men. Additionally, women tend to save more than men. Women are loyal customers Another benefit to institutions is that women are more loyal to their microfinance institutions (MFI) compared to men. This helps perpetuate a strong relationship between the MFI and its clients, and also motivates loan officers to be more efficient in their service delivery to these women. Women are more honest in their dealings Compared to men, one microfinance institution found, women generally invest the loan as per program guidelines. In other words, if loans were advanced for the purpose of home improvement, men are more likely to use the loan elsewhere. Women offer less resistance when called upon to participate in social causes Some microfinance institutions reported that women are “more easily mobilized for social goals”. When social causes were promoted, women seemed more receptive to these ideas and social change, compared to men. Women look after their family This benefit is more social than institutional in nature. Many microfinance institutions reported that female clients were “more likely to than men to spend their profits on household and family needs’ (such as clothing, food, education, health care, etc.). The “multiplier effect” enhances the social impact of microfinance instructions 5 Ways to Measure Social Performance and Impact of Microfinance Posted by Fehmeen on February 7th, 2010 Grand promise have been made for microfinance over the years. That giving loans to the poor pulls millions out of poverty and improves the level of personal income, health, education and female empowerment, apart from providing handsome returns to investors. The multi-dimensional nature of microfinance makes it harder to decide the exact meaning of ‘social performance’ and to determine its link to financial performance. As a result, people ‘deal more in anecdotes than data’ (Alex Counts, President of the Grameen Foundation). Not surprisingly, there are only a handful of tools that determine whether financial services for the poor (loans, savings, insurance) are changing lives and societies, namely: 22 Social Performance Indicators by the SPTF Progress out of Poverty Index (PPI) Incofin Echos Scientific Research Simple Surveys and Case Studies, 22 Social Performance Indicators by the SPTF By far the most comprehensive social performance measurement tool yet. The Social Performance Task Force (SPTF) recently developed a detailed list of 22 indicators that measure the environmental and social performance of a typical microfinance program. Click here to see a summary of these highly inclusive indicators. Progress out of Poverty Index (PPI) According to Grameen Foundation, the PPI is a simple yet comprehensive tool that measures poverty levels of groups and individuals after assessing the economic and social conditions of each country, to yield context-based results. The tool can be used by Microfinance Institutes (MFIs) to determine their clients’ credit needs, which loan product is most suitable, which programs are most effective, and how quickly clients move out of poverty, through a variety of country-specific indicators. The tool was developed for CGAP and Grameen Foundation to assess the social and economic impact of microfinance programs in more than 30 countries. They regularly train MFIs in various parts of the world in this regard. Incofin Echos Measuring performance from the social investor’s point of view. Incofin developed a list of 45 questions assess an MFI’s social orientation under the following headings: Social mission and vision (purpose of existence), Outreach and access to loans and savings Quality of service (customer service, financial services), Human resource policy (developing employees), Contribution to the community and to the environment. Incofin (a microfinance investment management firm – debt and equity investments) developed this tool to highlight the social dimension of its investments under the philosophy of responsible finance. MFIs that score high on this tool have a better chance of securing investment funds from Incofin, compared to those who don’t. Scientific Research Randomized control trials by researchers offer highly accurate yet mixed results about the social impact of loan programs to the poor, but the biggest limitation of these research methodologies was the short time span of less than two years. The real impact of microfinance, due to its multi-dimensional nature, takes years to demonstrate, says Bruce MacDonald (SVP of Accion International) so any research will be unsuitable unless it: spans over several years (to determine long-term impact of loan to the client’s household), covers various geographical areas (to consider individual social and economic circumstance), and, has a strictly monitored control group that in no way, has access to loans (access to informal sources of credit may not be necessary). Evidently, this form of research is pretty difficult to conduct, as Micheal Chu (Accion) points out: “We’re discussing poverty. Urgency matters. Of course. you can sit on the sidelines and wait for all these trials, but if you need that kind of precision to act, you’re never going to be at the forefront of social action.” Michael Chu, former president and CEO of Accion. Simple Surveys and Case Studies Field surveys are easy and less expensive to conduct compared to other forms of impact assessments, and they generally show positive results: Poverty-alleviation: 5% of micro entrepreneurs pulled themselves out of poverty each year during the 1990s (Grameen Bank, Bangladesh). The direct and indirect impact of these loans is difficult to assess. Domestic Violence: Women who take out loans around the world experience a decrease in domestic violence (Women’s World Banking) Job creation: on average, micro entrepreneurs either created or retained an average of 2.4 jobs during 2007 and 2009 (Accion USA) Wealth Increase: the median hourly wage offered by micro entrepreneurs was 24% higher than the federal minimum wage, which is $7.25 (Accion USA) Business survival: 98% of existing businesses were still in business by year-end 2008, which is very high compared to a national average of 70% (Accion USA). Conclusion This list is by no means exaustive, although it does cover the most prominent social performance and impact assessment tools (read difference) available today. As microfinance continues to emerge as a lucrative business and social opportunity, new tools and techniques will be developed to optimize the performance of MFIs and determine the true impact of offering loans and savings to the poor Microfinance Credit Bureau – Purpose and Operational Elements Posted by Fehmeen on March 27th, 2010 Pakistan Microfinance Network (PMN) recently announced it will setup a credit bureau for microfinance providers so information about the credit histories of borrowers can be used to cautiously expand loan portfolios. The need was felt as a result of rising delinquency levels faced by microfinance banks (MFBs) that followed aggressive expansion strategies in recent years. Greater competition fueled this dilemma because if a client defaults, he can simply visit the next MFI and borrow more money. Several countries, such as India, Peru, and Tajikistan have already setup microfinance credit bureaus and offer benchmarks for organizations such as PMN. Purpose of a Microfinance Credit Bureau A microfinance credit bureau helps distinguish between good (low risk) and bad (high risk) borrowers by looking at their professions, skills, loan and repayment histories. The effort will encourage microfinance providers to join hands instead of compete so the industry as a whole can limit default rates, check multiple borrowing and meet its social and financial objectives while ensuring institutional sustainability. A strategic advantage deliverable by a microfinance credit bureau is the discovery of trends, as well as best practices that will enable MFIs to own healthy microfinance (microcredit, micro-insurance) portfolios. Operational Elements of a Microfinance Credit Bureau (Examples from Pakistan and Other Countries) Identifying all borrowers – Each borrower’s credit history can be linked to his/her unique identity number (e.g. in Pakistan, it can be tied to the National Identity Card or Voter ID, or in USA, it can be tied to the Social Security Number). Gathering data – A credit bureau builds credit histories by seeking data from the computerized financial and operating software used by microfinance banks, which is required by the central bank in Pakistan and most other countries. MFIs will need to overcome a fear of relinquishing internal, competitive data about borrowers and trust an independent entity to handle and secure it. Utility companies that are involved in mobile banking services (e.g. Easy Paisa in Pakistan, or M-Pesa in Kenya) can also be approached to get records of prompt or delayed bill payments. The perfect software – Technology plays a central role in assimilating, processing and distributing accurate data to MFIs in a timely manner. Data about loan payments can be stored on a smart card that is unique for each borrower, or the ‘Mobile Wallet’ accounts (a feature of Easy Paisa in Pakistan) and link these to a central database. Access to the database – MFIs will only have indirect access to a central database; full control will belong to credit bureau officers. If you liked this article, you may be interested in a presentation about credit bureaus in microfinance, and other article about microfinance theory and practice. What is microfinance? Opportunity International Australia helps people out of poverty through microfinance. Microfinance includes basic financial services – including small loans, savings accounts, fund transfers and insurance. Alongside non-financial services such as business training, microfinance assists people living in poverty who wouldn’t usually qualify for regular banking services because they have no form of collateral or formal identification. Loans as small as as $100 help people in poverty start or grow their own small business. This enables them to earn an income so they can afford food, clean water, proper shelter and an education for their children. Here’s how it works By helping a mother buy a sewing machine to start a tailoring business or a father buy seeds to plant a vegetable garden, small loans enable people in poverty to earn an income and provide for their families. As each business grows, loans are paid back and lent out again. With 97% of loans repaid, the cycle continues, year after year. Each successful business feeds a family, employs more people and eventually helps empower a whole community. Microfinance plus As well as microfinance, we provide people living in poverty with non-financial (community development) services to strengthen their businesses and develop their communities. Our partners Opportunity International Australia works through local microfinance institutions in developing countries. This ensures we understand the needs of people living in poverty in the area and allows us to serve them effectively.
Required Content Described population group then described the population’s health problem providing data to support. 18 (12%) – 20 (13.33%) Student provided a fully developed description of population and health problem with insightful analysis of concepts and related issues. 16 (10.67%) – 17 (11.33%) Student provided a developed description of population and health problem with reasonable analysis of concepts and related issues. 14 (9.33%) – 15 (10%) Student provided a minimally-developed description of population and health problem with limited analysis of concepts and related issues. 0 (0%) – 13 (8.67%) Student provided a under-developed description of population and health problem with little or no analysis of concepts and related issues. Required Content Described results of comprehensible community assessment showing collaboration with health care team members and or individuals/groups that represent the problem. 27 (18%) – 30 (20%) Student provided a fully developed description of comprehensive community assessment showing collaboration with insightful analysis of concepts and related issues. 24 (16%) – 26 (17.33%) Student provided a developed description of comprehensive community assessment and collaboration with reasonable analysis of concepts and related issues. 21 (14%) – 23 (15.33%) Student provided a minimally-developed description of comprehensive community assessment and collaboration with limited analysis of concepts and related issues. 0 (0%) – 20 (13.33%) Student provided a under-developed description of compehensive community assessment and collaboration with little or no analysis of concepts and related issues. Required Content Developed possible evidence-based culturally competent interventions/programs aimed at primary prevention at the community and system level of care specific to community. 27 (18%) – 30 (20%) Student provided a fully developed description of culturally competent interventions/programs aimed at primary prevention with insightful analysis of concepts and related issues. 24 (16%) – 26 (17.33%) Student provided a developed description of culturally competent interventions/programs aimed at primary prevention with reasonable analysis of concepts and related issues. 21 (14%) – 23 (15.33%) Student provided a minimally-developed description of culturally competent interventions/programs aimed at primary prevention with limited analysis of concepts and related issues. 0 (0%) – 20 (13.33%) Student provided a under-developed description of culturally competent interventions/programs aimed at primary prevention with little or no analysis of concepts and related issues. Required Content Chose a possible way to evaluate outcomes of project. 18 (12%) – 20 (13.33%) Student provided a fully developed description of possible outcomes for project with insightful analysis of concepts and related issues. 16 (10.67%) – 17 (11.33%) Student provided a developed description of possible outcomes for project with reasonable analysis of concepts and related issues. 14 (9.33%) – 15 (10%) Student provided a minimally-developed description of possible outcomes for project with limited analysis of concepts and related issues. 0 (0%) – 13 (8.67%) Student provided a under-developed description of possible outcomes for project with little or no analysis of concepts and related issues. Required Content Presented to a community professional 15 (10%) – 15 (10%) Presented project and included contact information. 0 (0%) – 0 (0%) 0 (0%) – 0 (0%) 0 (0%) – 0 (0%) Did not present project. Required Content Described role as a health care leader in community 18 (12%) – 20 (13.33%) Student provided a fully developed description of role as a health care leader in the community with insightful analysis of concepts and related issues. 16 (10.67%) – 17 (11.33%) Student provided a developed description of role as a health care leader in the community with reasonable analysis of concepts and related issues. 14 (9.33%) – 15 (10%) Student provided a minimally-developed description of role as a health care leader in the community with limited analysis of concepts and related issues. 0 (0%) – 13 (8.67%) Student provided a under-developed description of role as a health care leader with little or no analysis of concepts and related issues. Format and Writing Format of presentation includes: Bullet information on slide No more than seven lines per slide No more than seven words per sentence Do not write in all capital letters Select a background that will enhance the quality of the information being presented APA format for in-text citation and reference list Minimum 15, maximum 18 slides – this includes the title slide and reference list 14 (9.33%) – 15 (10%) Presentation adheres to all 7 of the identified format items. 12 (8%) – 13 (8.67%) Presentation adheres to 6 of the 7 identified format items. 11 (7.33%) – 11 (7.33%) Presentation adheres to 5 of the 7 identified format items. 0 (0%) – 10 (6.67%) Presentation adheres to 4 or less of the identified format items. Total Points: 150 Name: NURS_4210_Week Develop an intervention plan in collaboration with other professionals that takes into account determinants of health, available resources, and activities that contribute to health and the prevention of illness or injury Provide culturally competent care, i.e., health promotion, disease and injury prevention interventions in collaboration with other health care professionals in a community health care setting Analyze data pertaining to a specific community health issue Evaluate how cultural competence improves nursing practice and health outcomes Evaluate current evidence-based practices for your selected population Analyze evidence-based practices Evaluate programs aimed at solving health problems Evaluate local disaster plans and contemplate collaborative efforts in problem solving Analyze effectiveness of practicum proposal through practice presentations Present practicum presentation to colleagues
Introduction The establishment, operation and the function of many formal non-profit organizations has largely been affected by social, political, legal and economic institutions. In addition, the major big non-profit organizations are found in developed nations but their operations have become largely transnational in nature. These non-profit organizations (NGOs) continue to perform an important role in facilitating health development in sub-Saharan Africa. Moreover, the critical role of non-profit organizations in confronting diseases in Africa has intensively and extensively been documented. Furthermore, the work of NGOs working in Africa especially those in health care has been spurred by the shrinking of state health services across the entire continent, a consequence described as ‘hollowing of the state’ which has been caused by increased privatization and structural programs throughout the 1980s and 1990s which in turn placed the burden on NGOs to fill the gap. These NGOs get much of their funds and donations from governments of high-income countries such as the United States, Japan, and members of the European Union together with other OECD members (Merson, Black and Mills, 2006, p.497). From time to time, the generosity manifested by the assisting governments has largely varied and usually depends more on the supposed geopolitical importance of the problem than the real and actual needs of the affected populations. The aspect of financial prudence has become requirement for many NGOs which in turn dictates the success or failure of NGOs. Financial problems for these NGOs has further been fuelled by global financial recession which means that most NGOs have to operate efficiently within limited budget in order to meet the unlimited health requirements in African countries. Buoyed by this observation, this report will propose an expenditure plan that is necessary in making appropriate administrative decisions with regard to budgeting of health care in African countries. NGOs role in provision of health services in Sub-Saharan Africa The Sub-Saharan Africa has experienced numerous activities that have been spearheaded by non-profit organizations. For instance, the NGOs sector has contributed significantly in the provision of health and education services since the colonial era although many a times, some governments have worked to impose restrictions and measures on NGOs (Mwabu, et al, 2001, p.82). Get your 100% original paper on any topic done in as little as 3 hours Learn More Generally, Sub-Saharan Africa is a region that has been credited with experiencing success and prominence in NGOs work of service provision in health, but over time the form and extent on NGOs effort to provide the health services has reduced due to certain reasons such as: The extent of health problems which determine the demand for services and the roles of state and NGOs sector in responding to the demand; Government perceived attitude towards the NGOs and also the existing state policies in the health sector which tend to be influenced by political model and regime; Economic factors which are vital in establishing resources available to the state sector and hence able to finance service provision programs and also the scope of NGOs to participate in service provision; and The participation and level of interest by foreign aid donors and western NGOs ability in providing resources and influencing domestic social policy which on an evident note has become increasingly important in the context of economic crisis and the structural adjustments that started taking place from 1980s (Mwabu, et al, 2001, p.82). In most African countries, the larger population is subjected to poor quality of government health facilities, coverage of such facilities is limited, available technical capacity is inadequate, decision-making process is over centralized and the process of providing the required services is generally overwhelmed by inefficiencies and small corruption (Mburu, 1994, cited in Mwabu, et al, 2001, p.82). In addition, the increasing cases of diseases such as AIDS and chloroquine-resistant malaria is resulting in emergence of a resource gap and the sustained argument has been that such resource gap can be filled by the NGOs sector (World Bank, 1993; cited in Mwabu, et al, 2001, p.82). Moreover, foreign NGOs continue to exert their presence in Sub-Saharan countries and their presence is seen either in their direct involvement in service provision or through their increased funding for their domestic counterparts and from these, NGOs sector has turned out to be a major source of health provisioning in Africa and such NGOs continue to receive immense support from official donors. NGOs and Health expenditure in Sub-Saharan Africa Non-profit organizations have played a crucial role in financing health services in Sub-Saharan Africa. The efforts of NGOs in this region have boosted the efforts of the respective governments in the region in their efforts to provide and improve health situation of the people of the region (World Bank, n.d, p.14). In addition, NGOs sector has channeled a lot of resources which in turn are used in providing for the basic and tertiary health services that would not be available to the majority of the population if the NGOs sector was to withdraw its activities from the society. Overall, non-profit organizations account for almost 35 per cent of all health donations in Sub-Saharan countries (World Bank, n.d, p.16). The activities of NGOs have been accelerated by the inability of the governments to provide fully and adequately health services to its population and also the profit motive of most private organizations permitted and involved in provision of health services to the population, thereby increasing the prices for vital health care services and products. We will write a custom Research Paper on Solving Health Issues in Africa specifically for you! Get your first paper with 15% OFF Learn More In most cases, non-profit organizations have partnered with respective governments in extending and facilitating accessibility of critical health care services and products to the disadvantaged populations. The graph below shows the comparison between private and public health spending in Sub-Saharan countries. It should be noted that, the private expenditure figures in the graphs below include expenditure figures by the NGOs sector. Private and Public Health Expenditure in Sub-Saharan Africa by the year 2002 Source: Capobianco, Naidu and World Bank, 2008. Budgeting for Non-Profit Sector The primary objective of non-profit organization has been regarded to involve provision of service which in many instances may or may not be sold, and in evaluating the performance of such organization, emphasis is put on how well that service is provided by the organization compared to its cost. From this, many NGOs provide services for which there is no direct financial charge made on consumers and in cases where such financial charge is incurred, it is always negligible when compared to the cost incurred in providing for the services (Cutt and Ritter, 1984, p.5). The objectives of any budgetary model adopted by any organization carrying out specified activities are a function of the goals of the specific organization and the accountability regime specified for the budgetary model functioning within the management cycle of the specific organization. Primarily, the goals of any budgetary model are specifically seen to generate process and display information which, in the initial stages, appear to be proposals but later they become decisions tools employed in order to achieve the organizational goals (Cutt and Ritter, 1984). Second, the goals of any budgetary model reflect the accountability regime responsible for the budgetary model within the organization. This is done with conviction that resources allocated need to be reported and their use also reported in the required manner since all resources are regarded to be scarce (Cutt and Ritter, 1984). For the non-profit organizations, the aim is to provide service, and the value of service provided is measured not in terms of money but through some indicators of quantity and quality of the service being provided. Service goals for most non-profit sector are generally broken down into three large categories: allocation, redistribution and stabilization (Cutt and Ritter, 1984, p.9). Not sure if you can write a paper on Solving Health Issues in Africa by yourself? We can help you for only $16.05 $11/page Learn More Furthermore, the accountability regime which essentially determines the goals of the budgetary model in non-profit organizations is similar to that of profit-making organization with respect to procedural accountability but differ with respect to consequential accountability. Non-profit sector’s accounting mechanisms Non-profit organizations and especially government agencies carry out their operations in different political and economic environments than other business enterprises; hence accounting standards for non-profit organizations have developed differently as compared to business-enterprise standards. Although many principles and concepts such as controlling, reporting, concern for relevance, comparability, consistency and understandability, apply to both non-profit and private sector, the non-profit sector manifests some differences that include: Non-profit organizations have inflow (revenue) and outflow (expenditure) statements but in most cases the concern is on raising and expending resources in accordance to the budget plans; non-profit organizations are expenditure rather than expense-oriented; non-profits emphasis is placed on the sources of revenues and ways the acquired resources are used, and in this respect the organizations are dollar accountability-oriented; largely in non-profits, there is no equity accounting and funds are generally based on legal requirements, further accounting may use either the cash basis or modified cash-accrual basis; non-profits do not typically have operational accountability as a central objective and thus major emphasis of these organizations is placed on stewardship and role of administrators and the management become accountable for the inflow of funds and also their expenditure in attainment of set objectives (McKinney, 2004, p.50). Funds in non-profit organizations are categorized as resources that are available for the organization to obtain goods and service and these resources may either be restricted or unrestricted whereby in case of restricted resources, the donor or the authorizing body outlines the conditions to be observed or adhered to in using the funds (McKinney, 2004, p.50). Expenditure Budget model for Non-profit organization With the availability of specification of the revenue budget and ultimate determination of a planning framework of objectives and priorities, the first constituent of the expenditure budget model is the set budgetary terms of reference. In accordance to these set goals the primary function on which information is collected is for budgetary decision-making. The organization is seen to be divided into specific major programmatic activities and each of which is divided into sub-programmatic activities which can further be described in line-items of expenditure (Cutt and Ritter, 1984, p.19). The second constituent of expenditure budget model is the specification of the accountability regime. Accountability regime is classified into two; the procedural and consequential accountability where procedural accountability deals with accountability for propriety where it exclusively deal with inputs while the consequential accountability is concerned with performance in utilizing the available limited resources hence it includes information on the outputs or benefits consequential on utilizing the limited resources (Cutt and Ritter, 1984, p.21). Consequential accountability regime is further defined at different levels of sophistication all involving the translation of line-item financial outlays into output-oriented cost concepts that in turn represent three levels of sophistication in the explanation of output described as productivity or efficiency measures, effectiveness measures and measures of the imputed money value of output, therefore these three levels of consequential accountability can be seen as cost-efficiency, cost-effectiveness and social profitability (Cutt and Ritter, 1984). The third constituent of expenditure budget model is the specification of the scope of the information to be included in expenditure budget in terms of operating and capital expenditures, and the last constituent of expenditure budget model is the specification of the time horizon in which detailed budget information will be required for which spending is formally authorized (Cutt and Ritter, 1984). Zero-base budgeting (ZBB) for non-profit organization Zero-base budgeting is a budgeting technique that has gained popularity due to its strong push toward analysis of all costs and hence all costs from a base of zero must be justified. The below diagram illustrates elements of a ZBB decision package. Elements of a ZBB decision package Source: Finkler, Kovner and Jones, 2007. The ZBB model builds on a program budgeting apparatus which determines program objectives and the most cost-beneficial or cost-effective method of pursuing program objectives and hence provides a means of implementing of the program objectives at the activity level. The general ZBB model takes the existing organizational or programmatic structure and the basic logic of the model require some form of top-down guidance on the objectives of the organization within the activity-level budgeting is being carried out. With ZBB model, the organizational objectives provide the context within which the activity objectives can be determined and hence activity levels of effort ranked. In general ZBB model does not require the objective-oriented structure of program budgeting but instead relies on the existing organizational structure in most cases may be programmatic in nature. Just like performance budgeting and program budgeting, ZBB model dwell heavily on the line-item budget model and therefore responds to the needs of procedural accountability (Cutt and Ritter, 1984). The objectives of the ZBB model especially for non-profit organization are: first, financial control which reflects the procedural accountability; and second, management which reflects the activity at the organization level for which information is collected for output-oriented decision-making process. The structure of the budget model requires cost and output information for the established organizational units over specified time period and cross-referenced to the standard line-item presentation is required to achieve the set financial control objectives of budgeting. Furthermore, the structure of ZBB budget model generally requires that all set of decision packages for the organization as whole be arrayed in rank order and associated with the funding constraint for the organization in the specified period of time so that emphasis is put on those high priority decision packages and which become first in receiving the allocated funds and also the low-priority packages which become first to be eliminated if the overall budget is reduced or inadequate. In general, the ZBB budget model provides comparison to three major types of alternatives within the decision package for each individual program: first alternative involves ways to produce service or output; second alternative relates to quantity of service or output to be provided; and third alternative, considers the varying levels of quality (Finkler, Kovner and Jones, 2007). Budgeting with limited resources Non-profit organizations have been forced to work with limited budgets to meet unlimited needs specifically in developing societies. For instance, as an organization dealing with health care in Africa, resources available are limited to cater for adequate provision of necessary drugs: medicines from major pharmaceutical companies; non-generic, non USDA approved; and stem cell medication from foreign sources. It is evident that limited the organization has inadequate funds and therefore any move to acquire the above medicines need to be a financial sustainable. A sustainable budgeting is required that will encourage and promote obtaining of the subsidized medicines in a cost-effective manner without compromising on the quality of the drugs. In creating an effective budget for the organization to acquire the medicine using the available limited funds, the first important thing is to access the organization’s cash flow in order to know all the available monies and donations. Budgeting in its nature is a financial exercise that should make provision for expenditure after consolidating the revenue resources. Expenditure in this case is the purchase of drugs for an African country. In the case the budget need to be done objectively and realistically due to limited funds where most pressing needs should be given the first priority. The available pooled fund should be distributed for each drug depending on the demand and priority. In essence the needs will always be more than the available resources and as a result the budget may not fulfill all the demands but the organization and especially the board should be judicious in balancing the organization’s pooled funds and expenditure so that the basic priorities are not foregone and that expenditure is only limited to the most needed drugs. To realize the objectives of the organization with regard to limited funds in buying the subsidized drugs the following measures will be necessary: Flexible Budgeting Flexible budgeting allows the management of the organization to create operating budgets for the various workload levels and this will be done by reviewing the volume of medicine (products) to be provided by the organization and this constitute the workload for the organization. At the same time the management is presented with opportunity to forecast the changes to take place especially in pharmaceutical operations in foreign environment. A flexible budget provides the organization’s management with the opportunity to understand the effects of adopted workloads. Cost-Benefit Analysis Cost-benefit analysis for the organization will compare the costs and benefits of acquiring the needed medicine from the selected foreign sources. In carrying out cost-benefit analysis five-step process is observed: determine the project goals; determine the benefits of the purchase of the drugs; determine the cost and benefit flow at an appropriate rate; and make a decision analysis based on the data collected. To derive a more viable and workable expenditure decision, the organization will use ZBB budgeting model combined with flexible budgeting ideas and incorporating cost-benefit analysis techniques. Conclusion Organizations are formed and exist to accomplish certain set objectives. Non-profits are not insulated from these responsibilities. Further, finance and other resources become necessary and critical in determining the success in accomplishing organizational set objectives within specific timeframe. In ensuring the health state of organization’s finances the board has the responsibility to ensure integrity and reliability is promoted in the organization with regard to finances. The board has the mandate to ensure the organization is managed in a fiscally sound way and the organization possesses adequate resources to carry out its programs. Budgeting becomes necessary for non-profit organization in that the income and expenses for the organization will need to be outlined to show the healthy and sustainability of the organization. Effective financial management and budgeting tools need to be adopted to ensure the financial health of the organization is not compromised and also the organization is in a position to meet its set objectives in cost-effective way. Effective budgeting ensures the organization remains upright in contingency planning process and that the management needs to be assertive and tightly control the expenditure of resources which naturally are scarce while the needs are unlimited. References Capobianco, E., Naidu, V. and World Bank. (2008). A review of health sector aid financing to Somalia. NW, World Bank Publications. Web. Cutt, J. and Ritter, R. (1984). Public non-profit budgeting: the evolution and application of zero-base budgeting. Toronto, Institute of Public Administration of Canada. Web. Finkler, S. A., Kovner, C. T. and Jones, C. B. (2007). Financial management for nurse managers and executives. PA, Elsevier Health Sciences. Web. McKinney, J. B. (2004). Effective financial management in public and nonprofit agencies. CT, Greenwood Publishing Group. Web. Merson, M. H., Black, R. E. and Mills, A. (2006). International public health: diseases, programs, systems, and policies. MA, Jones
Imagine if you are in an interview for a job, or at a formal occasion, but behaving like a monkey, jumping here and there. Or saying bad words while you are in a public area, what would people say about you? What would people think about you? And how will they react to you? The first thing that crosses their mind is that you are an unmannered person. And that is because you are lack of manners in your life. There are a few types of manners for example social manner, table manner and others. In this situation, social manner is important because it helps the way you react to people in the public or rather known as the social community. Manner plays a very important role in our life. Nowdays, the people does not even know how to respect older people. They are lack of social manner and they are unaware of the impact of social manner and why social manner are so important in our live. According to the website, manner is the prevailing customs, ways of living and habits of a people, class or period. Manner is also ways of behaving with reference to polite standards or social compartment by the way of speaking to and treating others. ( Manner plays a very important role in keeping people in a behaved way. Manner is also considered as the key factor to someone’s behavior. This is because the more manners there is in yourself, the better behavior is in you. It is the manners which separate the man from the animals. A person without manners can hardly deserve to be called a human being. Good manners imply polite social behavior. Social manner is basically the way that we act with people during conversations. Having a polite social behavior shows that a person is well mannered. By having a polite behavior, life flows in a positive passion. Good manners enrich the personality of an individual. A well mannered person is liked by everyone. Good manners enhance a person’s value and makes a person a precious human being. Good manners provide guidelines to follow in times of uncertainty and reduce the need of awkward exchanges and the risk of confrontation. Without good manners, without good manners, life would certainly be confusing and potentially brutal. Polite social behavior will make our ownself close to people. It can strengthen the relationship between our neighbors. Imagine not having a polite social behavior, and in case of emergency, do you think that your neighbor will help you? By displaying polite behavior, we show that we expect the same respect in return. It is possible to disagree with someone very strongly, but if the argument is conducted with politeness and good manners, both sides come out of the situation well. Behaving in a polite and mannered way would give people a good first impression. By behaving in a mannered way, people would likely to respect us instead of looking at us in a different way. Good manners are about respect. If a person is dressed well, it does not mean that he must be possessing good manners as well. A man without manners remains savage. Therefore, it is very necessary to have good manners. They are what make a society function smoothly: it is the lubricant for social interaction. We are living in a society after all. Social manner help show respect and let people know that you care. Even the word “thank you” would make people respect you as a well mannered person. Good manners are more than just saying please and thank you. Manners are a way of showing respect to others; the loss of this leads to a more selfish society. A polite social manner doubles the chances of getting a job. Imagine behaving like a monkey answering questions in a rude way, will the company employ you? By behaving in a mannered way, it projects your personality and the way you would behave during working time. And by behaving well during the interview, it will give the employee a 1st impression about your attitude. The practice of good manners can also earn respect. As Clarence Thomas stated, good manners will open doors that the best education cannot.’ In the work place the use of good manners can result in a more harmonious atmosphere. Offering to help a work colleague when they need to finish early, or are struggling with a task. Even the simple act of offering to make coffee when the boss has visitors will earn you respect from him. A polite social behavior is the root of building relationships with others. Polite social manner in the way of respecting other people, consideration of others, or simply being aware of other people’s need is the root of friendship. Good manners are the backbone of the society. They are essential for social life and individual peace and comfort. If people truly were well-mannered there would be no need for the rubbish of political correctness, because true good manners mean that you never make anyone feel uncomfortable for any reason and you would treat everyone with equal respect. Just by respecting others, a friendship can be created just as simple as A-B-C. Commonly, long lasting friendships emerge from such well run conflicts because with the good manners comes respect for the person, even if not for the ideas. Even two teams in a sports competition still meet, greet, and respect each other and show good sportsmanship which is basically good manner by respecting each other. And by forming relationships, it can lead us to finding a lifetime partner. A polite behavior is the key in finding a lifetime partner. As we all develop social manner, we then act and practice it in our daily lives. This is important as it will have effect on our future relationship with our spouse. In finding a lifetime partner, you have to be polite and respect the decision and choices of our partner. If you don’t, you will have a serious problem co-operating with your spouse and it will affect the marriage. By projecting polite behavior, it will show your partner that you are a well mannered person and you can be the right choice a person would spend their entire life with. And with polite social behavior, the chances of getting the same kind of partner will be higher. And for a man, they can be a very potential husband and thus a very well mannered and behaved father. This is important as it will affect the offspring’s that are produced in the family. The kids will carry on their parent’s gene and behavior. And this shows the parents behavior when they were young.Good manners provide guidelines to follow in times of uncertainty and reduce the need of awkward exchanges and the risk of confrontation. Good manners give us the boundaries to behavior which are acceptable to our society, and these vary with each community, often in subtle ways. The elemental part of good manners is that you do not embarrass another person. It’s a simple as that. With these guidelines we can deal with many unexpected situations easily. Good manners are a protection as well as a way of easing communication. Starting this polite way of interacting with people at an early age of our life is important as it will have an effect in our entire life. Manners have their source in violent societies where the powerful must be given signs of respect for their power, or where the consequences can be deadly, even horrific. Shaking hands, with the right hand, began as a way to demonstrate that there were no hidden knives or weapons in the most dominant hand. In some cultures, the right hand is used to wipe after defecating and to use that hand to touch another person is rude beyond belief. Good manners dictate finding out about the customs and behaviors that are most important, learning them and doing them, no matter where we are in the world. By having good manners, our careers can be advanced. There are ways of showing those who assign themselves the top roles and entitlements that they are respected. Even the police will show more respect to a known killer and drug lord than they will to a medical doctor who they pull over for driving while black. Having a good manner can guarantee us a brighter future. Even rich people won’t have a secured future if they don’t have polite social behavior. Money is everything. What is the use of having billions of dollars but not having a good manner? Who would want to do business with you? Who would want to make you as their business partner? By having a good manner, a brighter future is waiting. Those who are feeling relaxed, safe and comfortable are more likely to be productive in their enterprises and good company. Even if this is only because they can concentrate on what they are doing. Good manners are a code of common practice. What constitutes good manners can differ from group to group or culture to culture. Whatever the customs are, respecting them shows a desire to actively engage with a community and the people in it. Failing to adopt them sets you apart. We might forgive people who let their manners lapse, but we’ll feel more positive about and strongly connected to those who don’t. Good manners cannot be borrowed, but have to be practiced over a long period. Good manners are important for everyone including children, adults, families and thus forming a society. They are not just which knife to use at table, or how to address the Arch-Bishop of Canterbury. They are about equality and social cohesion, they are about respect and consideration for others, which in turn leads to respect for oneself. As Johann Wolfgang von Goethe once quoted “A man’s manners are a mirror in which he shows his portrait “.

Small and Medium-Size Enterprises’ IT Solutions Essay

Introduction The Internet of Things (Internet of Things) will grow over the next years in application and adoption. As it grows, its associated technologies will also have to undergo major advancements to accommodate customization and scaling needs of the Internet of Things. For example, privacy, security and semantic interoperability are all features that need further attention. In addition, other IT advancements like cloud technologies and big data, as well as future networks like in the case of proposed 5G will also have to be considered when contemplating the adoption of the Internet of Things now and in the medium-term. For Small and Medium Enterprises (SMEs), the IT solutions combined with the Internet of Things, promise to enhance competitiveness and to make the daily running of businesses easy. Enhancement will come through better customer relationships, better supply chain management and relationships, as well as the provision of an affordable innovative avenue that translates to better services and products. However, the uptake of cloud computing, big data analytics, the Internet of Things, among other features faces the hurdle of overcoming sceptical thoughts about the advancements and their actual need for SMEs (Ruggieri

Hayward State Starbucks Company Case Study

best essay writers Hayward State Starbucks Company Case Study.

I’m working on a management Research Paper and need a sample draft to help me understand better.

Before starting your CLC project, you must go to Strategy Club and view the Sample Strategic Plan for SandersonFarm, 2020 (Link Attached). This sample strategic plan is an example of what your completed strategic case analysis should look like at the end of the course.Starbucks Company Overview and Mission and Vision StatementsFollow the steps below to complete a single Word document to submit to your instructor:Step 1: In 250-500 words, give an overview of the company, describing their business, brief history, and your initial thoughts on the organization’s strategy and business model.Step 2: Go to your project company’s website. Find the company’s vision and mission statements and add them to your Word document.Step 3: Assess the company’s current Mission and Vision statement and, in 250-500 words, explain your analysis of its strengths and weaknesses.Step 4: Write new and improved vision and mission statements for the firm, following the information presented in Chapter 2 (attached) about the characteristics, qualities, components, and importance of vision and mission statements.Step 5: Explain in 100-150 words, how or why your proposed vision and mission statements are better than the current statements, and how they could benefit the company moving forward.****You will be graded on (Rubric):1. Go to your project company’s website. Find the company’s vision and mission statements and add them to your Word document. Step 3: Assess the company’s current Mission and Vision statement and in 250-500 words, explain your analysis of its strengths and weaknesses: The company’s vision and mission statements are present. The evaluation of the company’s vision and mission statements including their strengths and weaknesses is expertly written. Explanation is comprehensive and insightful with exceptional details.2. Write new and improved vision and mission statements for the firm following the information presented in Chapter 2 about the characteristics, qualities, components, and importance of vision and mission statements: The New and Improved Mission and Vision statements following the Chapter 2 protocol are expertly written. Explanation is comprehensive and insightful with exceptional details.3 Explain in 100-150 words, how or why your proposed vision and mission statements are better than the current statements, and how they could benefit the company moving forward: The discussion of how or why your proposed vision and mission statements are better than the current statements is expertly presented. Explanation of how they could benefit the company moving forward is comprehensive and insightful with exceptional details.4. Be sure to cite three to five relevant and credible sources in support of your content. Use only sources found at the University Library, corporate websites, or those provided in Topic Materials: At least three relevant, credible sources are cited and are flawlessly integrated into the essay to support the claims made therein.5. Mechanics of Writing (includes spelling, punctuation, grammar, and language use): The writer is clearly in command of standard, written, academic English.6. Paragraph Development and Transitions: There is a sophisticated construction of paragraphs and transitions. Ideas progress and relate to each other. Paragraph and transition construction guide the reader. Paragraph structure is seamless.
Hayward State Starbucks Company Case Study

Walden Our Duty as Social Services to Join Practices of Social Change Response

Walden Our Duty as Social Services to Join Practices of Social Change Response.

Respond to a colleague with suggestions on how he or she can put his or her policy advocacy into action. Discuss which policy advocacy skills you can use as a social worker in all levels of practice. DB 1 Fatmata— As a social worker, what is your responsibility to engage in political action? As social workers, it is our responsibility to join social reform traditions in society and in the social work profession and engage in political action (s) at every level, micro, macro, and mezzo. But we cannot fulfill this ethical obligation if we are not knowledgeable about the policies that affect the ones that we represent. “The Code of Ethics of the National Association of Social Workers (NASW) requires social workers to engage in social and political action that seeks to ensure that all people have equal access to the resources, employment, services, opportunities they require to meet their basic human needs and to develop fully” (Jannson, 2018, p. 17). Identify an area of social welfare where social work policy advocacy is needed. There is a need for social work policy advocacy when working with opioid drug users. Many states still do not have needle exchange programs and many people have the misconception that if we have these programs it is just enabling addicts to use drugs which is not the case. These are people too that need help just as much as the next person. These programs make the community safe, reduce the number of HIV transmission cases, and provide other resources that increase the likelihood of them getting future drug treatment, counseling, and rehabilitation. Reference Jansson, B. S. (2018). Becoming an effective policy advocate: From policy practice to social justice (8th ed.). Pacific Grove , CA: Brooks/Cole Cengage Learning Series. DB 2 Cheyenne— Responsibility in Political Action Social work is founded on the ethics and values established by the NASW. The NASW asserts that “primary mission of the social work profession is to enhance human well-being and help meet the basic human needs of all people, with particular attention to the needs and empowerment of people who are vulnerable, oppressed, and living in poverty” (NASW,2017). Furthermore, the NASW states that it is a social worker’s duty to “promote social justice and change with and behalf of clients” (NASW,2017) Therefore, it is believed that is my duty to empower the individuals I come in contact with by connecting them to the resources, information, and opportunities necessary to ensure their success. It is also believed that it is my duty to engage in political action when current policies are negatively affecting and perpetuating the harmful cycles in their lives and community. Subsequently, I have the obligation to advocate for my client(s) on micro, mezzo, and macro levels despite the challenges or opposition I may face. I am called to be bold in the face of such to ensure that the voices of the vulnerable and oppressed are heard. Needed Advocacy in Special Need Care I believe that further advocacy efforts are needed in the area of abuse of special need individuals. Advocacy efforts are especially needed for those individuals whom cannot verbally communicate their needs, desires, safety concerns, or negative experiences. In these cases, it is important to be able to recognize the signs of abuse. It is also important to understand that all forms of communication are valid and should be recognized as such. This extends to nonverbal communication and behavior patterns. I believe that this population is extremely vulnerable and more attention should be brought to this population to highlight the enhanced forms of protection that are needed. References NASW (2017). Code of ethics. Retrieved from:
Walden Our Duty as Social Services to Join Practices of Social Change Response

Site Location Of Restaurant Tourism Essay

Regardless of working in a restaurant or hotel proper knowledge of the food and beverage department is important simply because one must know how to prepare a menu, prepare food, all the works of the kitchen and how to set up servings and how to set up a proper theme for the day. The hotel and catering or hotel and food and beverage service industry has become widely known as part of the hospitality industry. This industry is known for the output of products which satisfy the demand for food, drinks and accommodation. There are many ways to prepare a menu but the most important factor is to try and follow the theme of the event / restaurant or hotel. Any how the menu should be well made to look attractive and alluring to customers. A menu should always have updated information about food and beverages available in a food establishment. When preparing a theme for a restaurant one must make sure that once the theme has been picked all the décor (decorations) and menu should try to be linked to the theme. There are many kinds of themes that can be picked for example country, event, holiday and so on. When serving customers there are certain rules and regulations that need to be followed by both staff and customers so that there is constant safety measures for both staff and customers. 2.0 Theme When opening up a new restaurant one of the best parts would be creating the design and theme of the restaurant, you can basically let your imagination go wild and design your restaurant with your own unique stamp (style). Based on the uniqueness of the restaurant you could attract customers, however creating a restaurant theme is not as simple as choosing a location and writing up a menu. A restaurants theme is a basic blend of good food, atmosphere (decorations) and the service. 2.1 Awareness of area needs and wants Basically this means to be careful on what you think and what for a restaurant based on your thoughts on the neighborhood but this doesn’t mean that others would agree with you. For example you might think that your neighborhood might need a good stake house with fine hand crafted beer but others might not agree with you on your decision. Best way to avoid this is to first task you on finding out what others want. Base on this you can decide on the basis of your theme 2.2 Clientele Expected By knowing who would are your customers you could base the theme of the restaurant to match the higher percentage of customers expected for example you could expect white collar (office working people), blue collar (police officers), families, men or women. Depending on these options what kind of customer you want to attract, you would base the theme to try and match a higher percentage of these groups so that it would attract more customers. These are simple ways to try and decide on a theme for a restaurant. 2.3 Theme picked Based on these few pieces of information we have decided to choose the theme of Italian because of the large amount of food options available and that we decided to open up a new Italian pizzeria and pasta house. We have decided to decorate it in a very traditional Italian prospect. It would look quite familiar to this, using oak wood tables and chairs and partitions to have a more realistic “old wooden feel” which would seem more comfortable and a friendlier and homey atmosphere feeling for customers. Since we have used an Italian theme all the food will be based on the many different types of food and drinks available in any Italian restaurant. For example pastas, pizzas, soups, drinks, alcoholic drinks. This will be further explained in the menu section of the assignment. 2.4 Type of Menu Offered The type of menu that being offered in this restaurant is table d’hôte and a la carte. Table d’hôte menu is a set menu with a combination of the appetizer, main course, dessert and drinks. Meanwhile the a la carte menu enables the quest to choose their preferred course with separate prices. This type of menu has been selected due to the changing needs of quest to try different and separate dish each time they are in this restaurant because the dishes available in this restaurant can be enjoyed separately and also in a set menu. 3.0 Menu Planning The menu is where the list of the food available in a restaurant for sale. A menu enables the customer to choose what their option to purchase is. A good designed menu act as a tool for marketing and sales for the restaurant. When a menu is presented to a customer, it is considered as the sales transaction and thus it can increase the sales. The menu reflects the image of the restaurant. So, it needs to be presented in a harmonious way depending to the desire of the target market. When setting the product rice, we must remember that a sophisticated diner will look for the best price-value relationship. Customer satisfaction will decrease and will affect the repeat business if the price selected exceeds the actual value of menu items. Besides, a menu works as a plan for the food service system. The success from the menu planning will influence other basic operation in the restaurant. When planning a menu, the manager must consider the resources under the control of the food service. 3.1 Beverages Menu 3.2 Appetizers Menu 3.3 Pastas Menu 3.4 Pizzas Menu 3.5 Desserts Menu 3.6 Site Location of Restaurant Located at the Medan Stesen 18, it would be a perfect site to open up an Italian restaurant. This is because of its strategic location, in the middle of developing area with Tesco Hypermarket, Aeon Shopping Complex, Pengkalan Emas Mall and several Clubs nearby. Definitely it will attract the visitors to that place as well as the locals. 3.7 Layout of Restaurant Guest Waiting Area Entrance Food Preparation Area Oven Side Board Kitchen Door Cut table Back Door Hand wash Area Washroom Cashier Dishwashing Area Bar Freezer room Chiller room Store room Office 3.8 Images of Restaurant 4.0 Preparing for Service 4.1 Costs Costs of this project are from self funding of the shareholders / members of the group. Some items bought with credit purchase where the payments take place later on. For the regularly used items for service such as the food items / ingredients will be bought based on a long term contract basis. Meanwhile, for the fixed assets such as the building, rents, and the equipments and so on, it will be bought on a long term loan. 4.2 Entrance The entrance of the restaurant will create the first impression of the business. It will be created in an inviting manner so that it will capture the essence of the restaurant. It will be big enough for the guest to gather while waiting for any reasons. A good entrance will be according to the natural flow of the restaurant’s layout. It delivers the guest to the revenue-generating destination which is the dining area. 4.3 Kitchen The kitchen built with having an adequate space for the equipments and more space for the employee to move around while working. The oven, stoves, fryer, broiler, triple sinks, dishwashing machine and shelf was placed according to the correct flow of food preparation process. The space also make sure the food preparation process take place in a safest and most hygiene way. 4.4 Food Storage Area There must be sufficient room for food storing. A walk-in freezer, walk-in refrigerator and dry storage area are built in for a better operation. An additional refrigerator is a must in a restaurant because if the common issue of refrigerator failure. Besides, the dry storage area should be built in a corner or far end of the kitchen or nearby to manager’s office. This is because it will be more secure and prone to theft. 4.5 Office The manager’s office is fit with a computer for management use. Size of office not too big as it is only for use at limited time. Office located far from the dining area and food preparation area and in a secure location in the building. 4.6 Employee Area In a restaurant, there must be a place for the employees to store personal belongings, hang coats and congregate. Other than that, it also consists of space for important notice to be posted, communicated and shared such as the work schedules, employees performance review, managerial notice and so on. This area will be best fit in between kitchen and dining area. 4.7 Dining Room A good combination of tables, large tables, booths and private spaces will make our revenue to maximize. The design of the interior is according to the classic Italian style with oak wood furniture, table cloths and the decoration pieces make the guest feel as though they are in Italy itself. The lighting is not too bright as it could distract certain guest who prefers a dimmer lighting that creates a mood for appetite. 4.8 Bar The bar was created to fit the concept of the restaurant. By the way, it also operates alone with guest can enjoy their preferred drinks at the bar. A bar must be visible to the guest and can be either in the dining area or in the kitchen but at the front part of it. An experience bartender will be performing the duty of mixing drinks while performing some drinks mixing skills of his own. 4.9 Restroom Anyone in the restaurant will definitely visit the restroom during their stay at the restaurant. Thus, it should have fixtures that contribute to the sense of cleanliness. Its space is enough to accommodate a few guests at the same time. There is also a hand wash sink nearby to the restroom. 4.10 Operating Hours Operating hours of our restaurant will be from 8.00 am till 10.00 pm. This is because our intension to serve our guest more. 4.11 Employees The employees that we hire are all local people. Most of them are full-timer and some are part-timer. We do hire part-timer for back-up during the peak hours of operation in our restaurant. Their wages will be comparatively low compared to full-timer because they work on hourly basis. 5.0 Rules to be followed for service at guest table In our restaurant, we practice the “10 Steps of Service” as a benchmark for each and every staff to follow upon service at guest table. These ten steps has been chosen based on the standard operating procedure of a restaurant and is an efficient steps which will make sure no misconduct of service in the restaurant. Step 1: Greeting Any waiter/waitress must greet all guests once they step into the restaurant with a pleasant smile. It is mostly handled by the host at the door. Step 2: Seating Once greeted, guest must be seated according to the number of person in the group. This is also done by the host. Introduce the menu with explanation of the products. Inform the guest what happen next. For example, “Once you are ready to order, please call (server name). She/he will be your server today.” Step 3: Taking the Order Server introduces his/her name with a pleasant smile and eye contact. Promote any new promotions. Do suggestive selling like drinks upgrade or more menu selections. Repeat the guest’s order for confirmation of order. Step 4: Serving Drinks Drinks should be served first as it will quench guest’s thirst. Serve it before the appetizers. Introduce the name of drinks while serving and quotes such as “Enjoy your drinks” with a smile. Step 5; Serving Starters/Appetizers Serve before the main course. Serve it not too long after the drinks as it creates the appetite for guest. Mention “enjoy your meal” with smile in the face. Step 6: Serving Main Course Introduce the name of the food to the guest. Clear the appetizer plate or bowl to create more space for the guest to enjoy the food. Once again mention “enjoy your meal” to the guest. Step 7: Follow-up It is a process of clearing the plates, check the order whether all the items were received or not and inquire about the food’s quality and taste. Step 8: Offering Desserts Offer guest for any addition order of dessert after their meal. Step 9: Delivering Dessert