Balissimo Restaurant Project

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PROJECT MANAGEMENT

MAN905

Assignment

THE PROJECT OF

BALISSIMO

BALI, INDONESIA

by

Nicola Adamo

24th March 2015

TABLE OF CONTENTS

- Executive summary -

1. THE COMPANY
2. THE ASIAN PACIFIC MARKET/THE FUTURE OF TOURISM
3. BALISSIMO

1. Objectives

1. COSTS
2. FEASIBILITY
3. TIME
4. STAKEHOLDERS
5. RISKS
6. PERSONAL ROLE
7. CHALLENGES
8. LESSON LEARNED

EXECUTIVE SUMMARY

Balissimo is a new restaurant, which will open in Bali Island, Indonesia in November 2015.

The restaurant is combining modern design with Bali natural settings, offering variety, ambiance, entertainment and a superior service with world-class cuisine.

Bali is recognized to be one of the hottest destinations in the World for its geographical position and its natural beauty. This, together with the growing economies of the region, makes project’s economic projections very appealing.

The project is not founded from banks loans but from personal owned capital.

This paper will introduce Balissimo deeper, unveiling the costs and the schedule to open it. It will also highlight some of the problems that the team has faced from the beginning until now and propose a number of reflections for them.

1- THE COMPANY

Balissimo PMA is foreign capital company founded in 2014 based in Bali, Indonesia. Balissimo PMA objective is to capitalize from the tourist boom with developments in Bali and South East Asia.

The shares of the company are divided between five partners:

Andrea Fasola: President, 17%

Xavi Canet: Director, 17%

Nicola Adamo: Commissioner, 22%
Jacopo Sertoli: Silent investor, 23%

Janel Sung: Silent investor, 16%

Its first project will be the construction and opening of a restaurant in Batu Belig, Bali.

2- THE ASIAN PACIFIC MARKET / THE FUTURE OF TOURISM

Recent years financial concerns in Europe and America and growing household levels in developing countries changed the global traveler’s profile. As a consequence this is likely to come from the Asia Pacific region. With large population, growing GDP and increased spending power, Asia Pacific appears to be the major supplier tourists and revenues.

During 2012, in Bali for example, there were about 4 to 5 million domestic Indonesian tourists and 2.8 million international.

The major contributing countries were: Indonesia (60.28%), Australia (10.74%), China (4.45%), Japan (2.58%), Malaysia (2.26%) and Korea (1.70%). In 2013 international tourists registered an increase of 13.37% and China more than doubled its numbers hitting 11.82%. (Indonesian Ministry of Tourism 2013)

3- BALISSIMO

The project is to open a Mediterranean restaurant in a central touristic area in Bali. The restaurant will be built on a piece of land of 10 Are (about 1000 square meters). Balissimo strength will be the international background of the working team, a World class Chef and a solid management structure able to meet costs and time. (Exhibit #1)

a) Objectives

1. At the end of the third year operation have net contribution margin of 60%
2. Increase costumer rate 15% every year for the first 3 years
3. Average labor cost of 14%

4- COSTS

The total capital requirement to open Balissimo restaurant is USD 503,300, of which USD 463,300 is allocated to start up capital, and USD 40,000 as business operation reserve.

The money will be invested in personal capital and will be used toward land lease, construction, design, equipment purchase and operational start up expenses. The project managerial team (Fasola, Caner, Adamo) will be recognized a premium on the shares value while silent investors will contribute USD 300,000 for the 39% of the business.