Posh Pastries Helping Hands | Lima,Peru Expansion | Prepared for: U.S Department of State, Special Grant Review , Business Analyst of Posh pastries Management Team | |

PROJECT DESCRIPTION

Peru has one of the fastest growing economies in South America, so we at Posh Pastries have decided to expand operations to the capital city in Peru. Posh Pastries achievement in the USA (where 90% of sales are made) and expansion to Canada, Northern Mexico and Rome assures us that we are ready to successfully expand to South America. Our goals are to establish a strong relationship with Peru, help the underprivileged acquire a foundation to further their career, and expand our product line to higher end venues. We chose Peru because it is currently one of the leading, fastest growing economies in South America, predicted to eventually surpass Brazils booming economy. Peru’s economy is expected to increase in the next decade, predicting a secure economic establishment with expected growth.

Posh Pastries will partner with local high schools with higher drop out rates to encourage students to stay in school. Each paid intern will be expected to participate in a twelve-week training program where they will learn the daily operations of Posh Pastries. Students who demonstrate talent and dedication will be eligible for one of our part-time jobs at the end of the training program.

Posh pastries will be run by five full-time and five part-time employees. The employees will evaluate the proficiency of operations in the internship program to; the key points of focus will be to: 1) increase customer satisfaction 2) ensure internship attractiveness and 3) make sure all daily operations are being run effectively.

BACKGROUND INFORMATION

Peru has made huge strides in the economy in the past decade. However, due to the fact that Peru is a country filled with great cultural diversity, ethnicity, geographic diversity, and social-economic levels, a lot of statistics and data obscure the fact that many children adolescents are living in extreme poor conditions and don’t get to have an education due to child labor, with the native children being at a higher risk to be affected by this issue. The poverty rate of the native people has not decreased even with the economic growth being experienced. The economic growth has increased jobs which has in turn made more jobs available to be worked by the lower class. In some ways this has been a positive but most poor families are putting their well under-age children to work to bring in the extra available income. Children are also being put to work near where the coalmines are located. The children are being affected by toxins and aren’t given a chance to become educated. By encouraging education, we will be discouraging child labor because young children will be more motivated to finish high school and have a meaningful career.

We recognize the value of helping the community and so we have decided to create a foundation in which we will promote education for the underprivileged youth. Even though the economy is at its best that it has experienced since the start of the country, issues are still prevalent. Poverty is directly linked to the causes of the high rate child labor issues. According to Action Against Hunger(a global humanitarian organization), “Peru has experienced significant economic growth over the past decade, but the gap between rich and the poor has not diminished and over 30% of its population remains poor, 10% of whom live in abject poverty”. Although Peru’s economy has improved by the use of coal mining, the people who live in the area where coal mining is done have been exposed to chemicals, malnutrition, and child labor. Many kids start working as early as five and don’t get the education they need. According to New York Times, “While the poverty rate in Lima fell to 15.7 percent in 2011 from 44.8 percent in 2004, the rural Andes and Amazon anguish in nearly feudal conditions. According to the World Bank, “a citizen of Lima earns 21 times more than a resident of the outback, where the rural poverty rate is a staggering 54 percent. To make matters worse, racial discrimination and bigotry are also issues: the poor are the dark-skinned indigenous, the rich, getting richer, are mostly white”. We will be partnering with local high schools, and recruiting potential talent to go through our twelve week chef training program. Not only will we be contributing to the community but this will be used as a technique to market our products to a range of people and build international relationships by encouraging students to further their education and reduce drop out rates. The following chart can be found on index mundi:

In the next graph, UNICEF shows the difference on how work situations affect children’s learning in Peru,

PROJECT DETAIL

Goals and Objectives

Posh pastries has three major goals and a timeframe of three years to complete them.

Goal #1 – Establish a stronger relationship with Peru by strengthening cultural and political connections between the U.S and Peru . Objective #1.1 - Establish a manufacturing plant in the city of Lima to distribute pastries to local bakeries, supermarkets, top-quality restaurants.

Objective #1.2 – Distribute our product within the city of Lima.

Objective #1.3 – Setup a 4,000 sq. ft. facility

Goal #2 – Help underprivileged acquire a set of skills to motivate them to further their career.

Objective #2.1 – Work with local high schools to recruit potential talent and offer them an internship with Posh pastries (an estimate of twenty students Per twelve week program)

Objective #2.2 – This twelve week internship will teach young students everything they need to know about being a chef and baking pastries.

Objective #2.3 - At the end of the internship positions will be offered based on completion and grades.

Goal #3 – Increase product offering to include a new gourmet line with high end pastries delivered to high end bakeries and restaurants.

Objective #3.1 – Bake fresh pastries to deliver to high end food strips on a daily basis.

Objectives #3.2 – create an effective delivery system to keep customers supplied with fresh product.

Clientele

Although, the main focus of our project is to focus on Peru and the people of tomorrow, there is two main populations which our pastries and marketing advertisements will target.

The first and most important is, the wealthy population, between the ages of 15-40 years old. These chef-inspired gourmet pastries are made fresh everyday, and a percentage of the profits will go to the underprivileged. This will provide an opportunity for the wealthy who not only want top-quality but who also want to assist their community. This clientele group is represented in the objectives for goal #3.

The second population, will be the middle to lower class and we will also make a line of pastries that better suits their financial well-being, so Posh Pastries can be affordable and enjoyed by all. These pastries will be shipped to local supermarkets across the city of
Lima and will have a shelf life of 2 years like our other pastries.

Methods

The primary methods for establishing the company and the foundation will be:

* The establishment of a manufacturing plant where daily operations will take place and all the pastries will be freshly made for bakeries or packaged for supermarkets * The establishment of the training facility next to the manufacturing plant where Posh Pastries will train potential chefs of tomorrow the daily routine and activities. * Utilize local resources to purchase equipment from local stores, contract workers to help build our facility, and but ingredients from local stores to make our pastries. * We will hire brand ambassadors across Peru to market our product in busy venues such as Wong Supermarkets. This will increase product knowledge and boost our sales. * We will partner with local high schools and offer internships to the less fortunate to decrease the drop out rate in the city. Upon graduation, interns will be eligible for one of many positions in our facility.

Staff and Administration

Establishing our manufacturing plant and foundation program will require five full time employees and six part-time, for which our full-time employees will receive 100% salary and part time employees a 50%.

Full time staff:

* Project director(full-time)- responsible for hiring local staff, overseeing operations, and establish links with the government. The project director will be Valeria Andersson. * Operations manager(full-time)- responsible for monitoring staff productivity as well as manufacturing productivity and financial reporting for accounting purposes. * Marketing manager(full-time)- will be responsible of advertisement for our company, establishing links with local venues and well-known supermarkets, handling all social media operations such as Facebook and twitter and be responsible for hiring our brand ambassadors. * Senior pastry chef(full-time)- our senior U.S chef who we will send to Peru to train future chefs and establish a foundation and standard for the future chefs. Senior chef will travel to Peru for three months when our plant is established and at the end of the three months he will receive weekly reports for a month on the process of the training chefs to assure top-quality and performance. * Internship Manager(full-time) will lead the training program and create a twelve week intern class.

Part-time staff:

* Paid Interns- Will learn company operations and do a twelve week internship where future potential chefs will be taught everything there is to know on our pastries. * Pastry chef(full-time)- we will have three chefs in training for three months. These chefs will go through an intensive interview process and at the end of the month one will be hired for senior chef. * Cooking staff member(full-time)- we will hire three cooking staff members to help our senior chef and training chefs. The cooking staff will take care of basic chores like washing dishes and making sure the kitchen is kept clean and sanitary. * Packaging operators (full-time)- we will hire packaging operators who will ensure our pastries are packaged and handled at the highest level quality and service. * Shipping and Receiving clerks(full-time)- Our shipping clerks will ship our product to local markets, bakeries and restaurants and keep track of inventory at these venues to ensure our product is always in stock. * Brand ambassadors- responsible for conducting pastries demonstrations across all large retail locations in the city. Brand ambassadors will be responsible for increasing product sales and enhancing customer experience. Through our visually appealing displays at the store and our brand ambassadors customers will gain knowledge and product attractiveness.

Available Resources:
The head of Posh Pastries company will come to Peru to ensure a smooth grand opening of our facility. He will manage and oversee operations and roles. We will also have an accountant available overseas, whom handles all Posh Pastries operations. The operations manager will send her all of our reports at the end of each month.
Needed Resources: * Personnel * Facility and office space- Posh Pastries will contract local construction workers * Equipment- will be bought from local specialty stores * Professional baking machines * Desks and chairs for training facility * Chalkboard * Typewriter * Computers * Supplies- pens, paper, file cases, folders, material preparation * Budget * Utilities

Budget Expense | Year 1 | Year 2 | Year 3 | Personnel | Full-time | | | Project Director | $100,000 | $100,000 | $100,000 | Operations Manager | $50,000 | $50,000 | $50,000 | Marketing Manager | $40,000 | $40,000 | $40,000 | Senior Pastry Chef | $35,000 | $35,000 | $35,000 | Internship Manager | $35,000 | $35,000 | $35,000 | | Part-time | | | Pastry Chef | $17,500 | $17,500 | $17,500 | Interns | $2,000 | $2,000 | $2,000 | Packaging Operator | $3,000 | $3,000 | $3,000 | Shipping and Receiving Clerks | $3,000 | $3,000 | $3,000 | Cooking StaffBrand AmbassadorsEquipmentFacility(incld utilities)SuppliesUtilities | $5,000$5,000$20,000$12,000$5,000$20,000 | $5,000$5,000$0$12,000$5,000$20,000 | $5,000$5,000$1,000$12,000$5,000$20,000 | TotalGrant Funds | $352,500($300,000) | $332,000($300,000) | $333,000($300,000) | Subtotal $52,500 $32,000 $33,000

EVALUATION PLAN

Project evaluation will consist of two different strategies- formative and summative.

Formative Evaluation -Primary qualitative in nature, we will use formative evaluation to conduct, surveys, interviews, and data collections. The operations manager will oversee all over the operations that take place in the store and record data to track success. The internship manager will track data and survey the interns to find attractiveness of the internship program to the interns. We will also survey our customers and partners to track customer satisfaction. We will track social media, such as yearly increase likes on our facebook page. Periodic reports will be prepared each quarter that will help us track the improvement of Posh Pastries.

Summative Evaluation -Primarily quantitative in nature, we will conduct this evaluation at the beginning, following six month intervals. We will file our receipts daily and create monthly reports, which will be analyzed by the head accountant of Posh Pastries at the end of the year to measure our progress and cost reports.

Data for our summative evaluations will focus on three goals of the project and the objectives of each.

Goal #1 -Records of the number of students we involve in the project (Objective 1.1). -Racial statistics of students admitted to program(Objective 1.2) -Number of students who succeed in the program every twelve weeks (Objective 1.3).

Goal #2 -Records of all the major supermarkets working with Posh Pastries (Objective 2.1). -Records of the increase of revenue through marketing (Objective 2.2).

Goal #3 -Records of the decrease in dropout rates due to our internship (Objective 3.1).

Annotated Bibliography

Arana, M. (2013, March 20). The kids left behind by the boom. Retrieved from

http://www.nytimes.com/2013/03/21/opinion/arana-the-kids-left-behind-by-the-

boom.html?_r=1& Historical data graphs per year. (2012, December). Retrieved from http://www.indexmundi.com/g/g.aspx?v=69&c=pe&l=en
Hunger. (2012, December). Retrieved from http://www.actionagainsthunger.org/hunger
Peru poverty assessment . (2012, December). Retrieved from http://go.worldbank.org/UAA9NGBS00

Situation of children in peru. (2012, December). Retrieved from

http://www.unicef.org/peru/spanish/Folleto_ing_correc_1.pdf