Chapter 5.

Marketing Function

Exchange Function

Exchange functions are activities involved in the transfer of title to goods. They represent the
point at which the study of price determination enters into the study of marketing. The main
exchange functions are buying and selling. When buying, the buyer’s motive is to maintain or
even increase profits and not necessarily to provide. Its marketing concept holds the needs of the
customers important interests. In selling, this is probably the one which people find least difficult
in associating with marketing. This is a part of marketing in the same way of promotion,
advertising, and merchandising.

Physical Function

Physical functions are the activities associated with the supply of finished product at every step,
from the production line to the customers. It includes storage, transportation, and processing.
Storage is an inherent characteristic of agricultural production that is seasonal while demand is
generally continuous throughout the year and is one of balancing supply and demand. Both
growers and consumers gain from a marketing system that can produce available when it is
needed. In transportation, it is one of the chiefly making products available where it is needed
without adding unreasonably to the overall cost of the produce. In processing, this is not the only
way of adding value to a product. Storing products until such times as they are needed add utility
and therefore add value.

Facilitating Function

The facilitating functions include product standardisation, financing, risk bearing and market
intelligence. Facilitating functions are those activities which enable the exchange process to take
place. It is not a direct part of either the exchange of title or the physical movement of produce.
In standardisation, it is concerned with the establishment and maintenance of uniform
measurements of produce quality and quantity. This function simplifies buying and selling as
well as reducing marketing costs by enabling buyers to specify precisely what they want and
suppliers to communicate what they are able and willing to supply with respect to both quantity
and quality of product. Marketing is also concerned with the financing of the enterprise itself.
This involves the use of capital to finance the marketing agencies in their various activities. In
risk bearing, these are the market risks adverse changes in the value of the produce between the
processes of production consumption. It is considered as often as a little understood aspect of
marketing. In market intelligence, it is the process of collecting, interpreting, and disseminating
information relevant to marketing decisions. Its purpose is to reduce the level of risk in decision
making and through this; the seller finds out what the customer needs and wants.
Chapter 4. Financial Requirements in Setting up a Foodservice Operation

One of the biggest challenges in starting a business is making sure that you have enough
money to see you through the challenging first months. Foodservice Businesses must obtain
sufficient capital for start-up requirements and operating expenses until the business starts
generating a profit. Financing may be obtained from personal savings, loans or from investors.
To ensure that you have adequate funds, it’s important to estimate your financial needs before
setting up a business like foodservice business. Estimate how much starting capital you will have
and the amount of revenue you’ll be able to generate each month during start-up period.

A financial business plan is created by gathering all the components of the business and
expressing them in numbers, both revenue and start-up expenses. Your business is selling a
product or service at a specific price point and the goal is to prove that your business is viable. In
assumptions, every projection is based on some assumptions. You need to use the assumptions
area for economic or tax rates as well as significant numbers like sales that drive other numbers
like costs. In key financial indicators and financial ratios, this highlights what you have
determined to be the most important information for measuring the performance of the company.
In cash flow projection, you can prove here whether the plan is going to work, of when to hire
staff, to make significant purchases and distribute cash to make sure your strategy feasible. In
projected income statements and balance sheets, cash is king but standard accounting income
statements and balance sheets show profitability and aspects of the financial health of the
company. Many investors and lenders calculate ratios from the income statement and balance
sheet to determine whether to give money to the company. In break-even analysis or cost-
volume-profit analysis, everything presented above is for one scenario of outcomes. Everyone
knows that it's a collection of guesses, many of which will not come true. The cost-volume-profit
analysis shows the income or cash flows that occur with different scenarios of key assumptions,
like sales or costs.

In any event, financial requirements and the degree to which they are well considered are
more than enough to make or break the best-laid plans of venture capitalists and created by
gathering all the components of the business and expressing them in numbers, both revenue and
start-up expenses.
Chapter 4. Financial Requirements in Setting up a Foodservice Operation

One of the biggest challenges in starting a business is making sure that you have enough
money to see you through the challenging first months. Foodservice Businesses must obtain
sufficient capital for start-up requirements and operating expenses until the business starts
generating a profit. To ensure that you have adequate funds, it’s important to estimate your
financial needs before setting up a business like foodservice business. Estimate how much
starting capital you will have and the amount of revenue you’ll be able to generate each month
during start-up period.

Start with a sales forecast. Set up a spread sheet projecting your sales over the course of
three years. Set up different sections for different lines of sales and columns for every month for
the first year and either on a monthly or quarterly basis for the second and third years. Create an
expenses budget. You're going to need to understand how much it's going to cost you to actually
make the sales you have forecast. You need to develop a cash-flow statement that shows physical
money moving in and out of the business. Create Income projections. This is your profit and loss
statement, detailing forecasts for your business for the coming three years. Use the numbers that
you put in your sales forecast, expense projections, and cash flow statement. Deal with assets and
liabilities. You also need a projected balance sheet and you have to deal with assets and
liabilities that aren't in the profits and loss statement and project the net worth of your business at
the end of the fiscal year. In breakeven analysis, it is when your business' expenses match your
sales or service volume. This is an important analysis for potential investors, who want to know
that they are investing in a fast-growing business with an exit strategy.

In any event, financial requirements and the degree to which they are well considered are
more than enough to make or break the best-laid plans of venture capitalists and created by
gathering all the components of the business and expressing them in numbers, both revenue and
start-up expenses.
Chapter 6. Essential Preliminary Foodservice Processes

Planning – This is the first and most important phase of designing a Foodservice Facility. During
this phase, the main outline of the facility and spacing is established. The planning process for
the renovation of a foodservice facility often is even more complex than designing a new facility
because of the difficulty of dealing with existing walls, structural members, utilities, and space,
and the demolition of parts of the existing structure. Moreover, in renovation projects decisions
must be made about which pieces of existing equipment should or could be used in the newly
renovated facility.

Purchasing – This is an essential part of every food service operation. All competent cooks
should be skilled in buying the appropriate ingredients, in accurate amount, at the right time, and
the best price. Every kitchen operation has different purchasing procedures. But there is one rule
that should always be followed and that is to buy only as much as it is anticipated and will be
needed until the next delivery. This will ensure that foods stay fresh and will create a high
inventory turnover. All foods deteriorate in time, some more quickly than others. It is the job of
the purchaser to ensure that only those quantities that will be used immediately or in the near
future are purchased.

Basic Inventory Process – This is a key component in effective kitchen management. Managing
inventory is like checking a bank account. Just as you are interested in how much money you
have in the bank and whether that money is paying you enough in interest, so the manager should
be interested in the value of the supplies in the storeroom and in the kitchen. This is everything
that is found within your establishment.
Chapter 3.2 Warming-up Activity: Brainstorming on Foodservice Equipment

I asked my friends if what could be the qualities of their equipment if they design a piece of
equipment.

Student 1: “If I would design a piece of equipment, I’ll have it safer because safety comes first. I
will also choose high quality design and I’ll also use the basic sets that can perform multiple
jobs.”

Student 2: “If I would design a piece of equipment, I would go with something that can help in
kitchen but in modern style that’ll fit in this generation.”

Student 3: “If I would design a piece of equipment, I would probably design a machine that has
the ability to produce food in just one click.”

Student 4: “If I would design a piece of equipment, I would design a robot that can clean and
wash clothes and readily accessible for sanitation especially nowadays.”