W11_WAS_Takoyaki


Problem Statement

There is a minimarket which has a big parking lot near to my house. Many food truck services park their “truck” there, from Kebab, meatball, noodles, to snow ice. Residential usually buy a snack in those food trucks when shopping at the minimarket. I wonder if I make my own food truck, will it be profitable or not?

Image

Feasible Alternatives

I’m thinking to make a Takoyaki food truck as it is quite easy to make and popular for young people.

Image

To calculate the economic value of Takoyaki food truck business, I’ve collected some data of takoyaki’s tools & ingredients. I assumed takoyaki booth worker is paid IDR 50K per day for 8 hours from 11 am to 7 pm, and for 30 days she will get IDR 1,500K.

Table 1: Takoyaki Business Economic Profile

Image

Image

Market value is assumed to be 25 portion of takoyaki sold a day, while price per portion IDR 9.000 is quite cheap compared to takoyaki’s price at malls IDR 15.000.

Outcomes of Each Alternative

The next step is to calculate Interest Rate of Return using Microsoft Excel:

Image

Setting Minimum / Selection Criteria

If IRR > MARR, then this business plan is economically justified.

Analysis / Comparison of the Alternatives Against the Criteria

In this Takoyaki business, higher revenue can be obtained by increasing sale, increasing selling price, or minimizing cost. Other factors such as location, promotional tools, and human resource capabilities also play a big role.

Selection of Best / Preferred Alternative

Since IRR of takoyaki business is higher than MARR (472% > 25%), then this project is worth to try.

Performance Monitoring and Post Evaluation of Result/ Follow up Assessment

There’s also a risk of not getting sales as much as in the plan, or who knows, maybe I have a chance of getting higher sales? After the first 3 months of running this business, I should re-calculate the assumption of monthly sales for a new strategy. Should I add more stock (ingredient) or reduce it? Or should I open a new booth in a strategic place?

References :

  1. Sullivan, William G., Wick, Elin M., Koelling, C. Patric. (2012), Engineering Economy. Chapter 5 Pp. 178 – 211, Fifteenth edition, Prentice hall.
  2. Gerobak Unik (2013). Jenis dan Tipe Gerobak. [ONLINE] Available at: http://www.gerobak-unik.com/. [Last Accessed 11 December 2013].
  3. Bhinneka (2013). DOMO Kompor Gas [DP 7202]. [ONLINE] Available at: http://www.bhinneka.com/products/sku00512322/domo_kompor_gas__dp_7202_.aspx. [Last Accessed 11 Desember 2013].
  4. Noercholis (2013). Pengusaha Klaim Pasokan Elpiji 3 Kilogram Normal. [ONLINE] Available at: http://tabunggasmurah.blogdetik.com/. [Last Accessed 11 December 2013].
  5. Yummy Takoyaki (2011). Peluang Usaha Dengan Modal Terjangkau. [ONLINE] Available at: http://yummytakoyaki.blogspot.com/. [Last Accessed 11 Desember 2013].
Advertisements

1 Comment

Filed under Week 11, Wirawan ASP

One response to “W11_WAS_Takoyaki

  1. Pak Wira,
    GREAT case study but……….

    Why didn’t you explain how/why you picked or calculated your MARR of 25%? (see Engineering Economy pages 179, 180, 309-310, 526-532,

    And why did you ONLY use IRR? Why didn’t you COMPARE IRR, ERR and Break Even Analysis (Engineering Economy, pages 205-210)

    Bottom line- you picked a great case study but really didn’t prove to me that you know and understand how to calculate MARR nor did you prove to me that you understand how to use the different tools and techniques to determine whether a project is or is not worth doing.

    Suggest that BEFORE you repost as W11.1 that you take a look at the blog postings of others before you on this same topic. See how they treated it and the number of stars I gave them….

    BR,
    Dr. PDG, Jakarta

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s