Wings - International Business Plan

INDIVIDUAL BUSINESS PLAN: WINGS
Business Plan: Wings
Jason Marentette
Davenport University

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Executive Summary
Wings is a business proposal to provide a western restaurant that sells flavored chicken
wings in China, currently there is no competing company within the Chinese market that offers
this type of experience. The Wings concept has potential to become popular to both Chinese and
expatriates living in Shanghai China. The value of bringing a new experience to a Chinese food
saturated market will provide a niche entry that can spread quickly through populated cities and
dominate market share by market growth.
By the end of 2014, China chicken consumption is predicted to reach 15 million metric tons.
Existing companies such as Blue Marlin, Blue Frog, Big Bam Boo, the Shed, McDonalds and
Hooters already offer chicken wings on their menu. However, all of the competing companies
localized their menus to cater towards the Chinese market. It is obvious that the market has
modernized and begun to trend towards western meals, but none of the already established
restaurants has focused on Chicken wings as a primary category.
Jason Marentette, the founder, lives in China and has over eight years of management
experience with an extensive background in entrepreneurship. Chief Gaetano Pugliese has over
thirteen years of practical restaurant management experience, with an extensive background in
recipes and menu design. With their combined experience, they plan to start Wings in April
2015. However, a lack of experience in accounting, marketing and operating a restaurant on an
international level may reveal some risks during start up.
The Wings restaurant will consist of bilingual Chinese and English speaking employees in a
western restaurant setting and will have ten types of chicken wing flavors,. For promotional and
marketing purposes, one new flavor will be available for a limited time each month. Wings will

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offer different types of sides, such as vegetables, fresh cut fries/ sweet potato fries and
homemade onion rings. Wings will provide some unique options such as free sample size portion
of fries with a side of the monthly sauce flavor and the option to mix flavors of wings in groups
of three in any order. The operations plan is to set-up the restaurants in a high-end area of
Shanghai, on Nanjing road, an area that is a 5-minute walk to the metro station and is near hotels
and other western restaurants with lots of customer foot traffic.
Some of the businesses processes such as human resources, marketing and delivery will be
outsourced to reduce cost of overhead and to provide company brand awareness. The
management is to ensure the customers are satisfied and enjoying their meals, management will
be structured so that Gaetano is in charge of the kitchen and the Joint venture partner handles the
day-to-day operations.
The long-term objective is to grow the company with a standard structure that can be adapted as
a franchise. The potential repeat for sales will continue to be lucrative with repeat customers if
our quality and consistency remains adequate. Profitability within two years is possible as the
product cost is low, and the western niche is extremely profitable. The first year projected sales
is $237,013 and product sales are projected to be 25,404 sets of wings. Wings will be open 7
days a week not including holidays, 336 days per year.
The start-up capital requirement is $28,290, if there are any deviations from the contingency plan,
Wings will modify and then continue to follow the original plan. If the company is able to
harvest enough financials, it will invest back into the company for expansion purposes, while
reducing investor’s shares.

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Financial Investments
Wings Corporation
1321, No.11 Lane 225, Jin Xiang Road, Pu Dong District
Dated: October-05-2014
This document has been submitted to (Name of the recipient) to inform that
we are looking for financing capital in our company start-up. With your investment, we will be able
to reach our targets presented in the appendices of this business financial proposal plan. (See
appendix)
Sincerely,
Jason Marentette
Wings Corporation
This document is confidential information, all information with-in this document should not be copied, distributed or
used prior to consent from Jason Marentette. For additional information and rights to use, modify, or copy, please
contact Jason by email at Jasonmarentette@gmail.com.

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Table of Content
Executive Summary 2-3
Financial Investments 4
Table of Content 4-9
Wings - China Ventures 10-11
Business Concept 10
First customer Definition 10
Value Proposition 10
Wings Business model 11
Distribution Channels 11
Potential Growth 11
Industry Analysis 12-13
NAICS Code and Industry Name 12
Industry Volume 12
Key Players 13
Barriers to entry 13
Key Industry Issues 13
Typical Profit Margins 13
Market Analysis 14-16
Map of China 14
Population of China 14
Market Description 15
National Languages
Population
Labor Force

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Age Distribution
Roadways
Railways
Airways
Area of Country
Terrain
Land Use
Climate
Competitor Analysis 16
Detailed Evidence of Competitive Advantage 16
Founding Team 17-18
Management Team 17
How critical task will be accomplished 18
Gap Analysis 18
Product/Service Analysis 19-22
Description of the Products 19
Types of Product Deviations 19-21
Chicken wings
Flavorings
Sample Fries with months special flavor
Sides
Service Description 21
Unique features 22
Prototyping 22

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Operations Plan 23-26
Restaurant Location 23
Layout of Restaurant 24
Business Processes 24
Outsourcing 25
Human Resources
Customer Delivery
Operations 26
Suppliers 26
Inventory management 26
Quality Control 26
Organization Plan 27-31
Legal Structure 27
Political, Legal & Business Environment
Economic Situation
Government Stability
Government Involvement
Currency Fluctuation
GDP
Inflation Rate
Tax System
Currency 28
Exchange Rates 28
Philosophy of Management 29
Key Management 29

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Joint-Venture Partner 29
Organization Concept 30
Organization Structure 30
Philosophy of Management 31
Long-Term Objectives 31
Marketing Plan 32-34
Purpose of Marketing Plan 32
Target Market 33
Top 3 Popular Cities 33
Unique market niche 33
Plan to reach first customer 34
Total Rewards Strategy 34
Financial Plan 35-36
Potential for repeat sales 35
Ability to forecast accurately 35
Profitability likelihood within two years (break even analysis) 35
Exit opportunity for investors 36
Estimate of year 1 & 2 sales 36
Pro-forma income statement (1-3 years) 36
Start-up capital required 36

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Growth Plan 37-38
Growth Strategy 37
Resources required 37-38
Personnel
Facilities & Equipment
Capital
Infrastructure Changes 38
Contingency and Harvesting Plan 39
Contingency Plan 39
Strategies for dealing with deviations from the plan
Strategies for harvesting the wealth created from the business
Harvesting Plan 39
Timeline to Launch 40
Appendices 41-52
Financials 41-49
Appendix 50-52
References 53-55

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Wings - China Ventures
Business Concept
“Wings” is a business concept that provides a western restaurant, which offers flavored chicken
wings in China. There are currently no competing restaurants that provide this large of a variety
of flavors for their chicken wings. The opportunity to be the very first company to bring a new
dining experience to the local Chinese market is still available. The Wings concept can bring a
spike of popularity that could allow market consumption to prevail and dramatically open many
other new and exciting restaurant opportunities.
First Customer Definition
Wings’ focus is to serve a consistent quality product that people enjoy and thereby retaining
customers. The first customers are local Chinese and expatriates living in Shanghai China.
Wings defines its customer as a person that wants comfort food, standard serving sizes and the
option to choose from a variety of unique flavors of both Chinese and American preference. For
promotional purposes, Wings restaurants will also advertise a new limited time flavor each
month.
Value Proposition
Wings’ value is to bring a new experience to chicken wings in China, establish a brand name and
saturate the market with Wings restaurants. As the first restaurant that offers such a large variety
of flavored chicken wings in China, Wings will be entering a niche market. Wings plans to take
advantage of that niche and penetrate the market ahead of other competitors. The goal will be to
spread quickly through the popular cities and dominate market share by market growth.

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Wings Business Model
The business model that Wings will use is a standard western food chain structure, but working
in Shanghai China with bilingual Chinese and English speaking employees. Wings plans to
structure the business with an American mentality and be extremely franchise friendly.
Distribution Channels
All inventories will come from distribution channels that will deliver directly to Wings. The
chicken will come from one processing plant located in China that is certified by North
American standards. All vegetables will come from Dole, located in Shanghai (Dole (Shanghai)
Fruits and Vegetables Trading, 2014),. Other materials such as napkins and drinks will be
purchased locally. Depending on importation cost, Wings plans to have imported beer and other
alcohol from North America.
Potential Growth
Chine has extremely high potential growth expectancy for any restaurant that serves high quality
western style food. Wings has several opportunities to grow within the Shanghai region, and to
expand to other areas of China. As the market trends towards favoring western restaurants,
there are many large cities in China that offer the opportunity to expand and franchise. Wings
will be able to establish a large enough market share; the profit margins are extremely high
which could allow investment opportunities into international growth markets such as Taiwan,
Malaysia, India and possibly North America. If successful, Wings will able to create a global
supply chain that will dominate entry barriers into new countries and remain financially
profitable.

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Industry Analysis
NAICS Code and Industry Name
The industry name Wings, but is not affiliated with NAICS, Chinese company names are open
for use with no legal actions required to secure the name.
Industry Volume
China Chicken Consumption in Million Metric Tons, 1987 – 2012. (Please see Appendix D for data)
The forecast trend line shows that by the end of 2014, China will consume roughly 15 million
metric tons of chicken. This means there will be a high volume of chicken and it is worth
opening a restaurant dedicated to chicken consumption.
Source: Data Source: (Larsen, Janet, 2012)
00
02
04
06
08
10
12
14
16
Chicken Consumption
Chicken Linear (Chicken)

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Key Players
Some of the key players in China that sell chicken wings are Blue Marlin, Blue Frog, Big
Bamboo, The Shed, KFC and even McDonalds. Number of store locations can help estimate
chicken consumption by competitors. The Shed has one location, Blue Marline has two
locations, and Blue frog has four locations, Kentucky fried chicken (KFC) has over 4,563
restaurants in China (KFC, 2014), followed closely by McDonalds with over 2,000 stores located
in China (Can McDonald's Corporation and KFC Bounce Back in China?, 2014).
Barriers to entry
The barriers to entry are the essential restaurant start-up, financials and structuring of the
company with-in an international country.
Key Industry Issues
China is still developing and growing the poultry sector. One of the major challenges to the
sector is the occurrence of various diseases. China has had several poor farming practices in
today’s standards that could lead to poor quality and lower-end product.
Source: (Comprehensive Guide of China’s Poultry Industry, 2013)
Typical Profit Margins
The typical profit margin on the smallest set of chicken wings (6 pieces) is $7.75 while the cost
is around ¢ 0.30. This is due to the low market cost of chicken wings from suppliers and a
western retail environment. This means that if each customer orders a standard size meal
including a drink, Wings will profit roughly $10 per order.

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Market Analysis
Map of China
Source: (The World Factbook, China, 2014)
Population of China
Almost 70% of Chinese will live in urban areas by 2035
Source: (Population of China, 2013)
City Population
Guangzhou 44,294,245
Shanghai 22,315,426
Beijing 18,827,000
Tianjin 11,090,314
Guangzhou 11,070,654
Shenzhen 10,357,938
~80-85% of the Chinese population lives in cities on the east side of
China (Right side of Blue separation line)

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Market Description
Demographics
Topic China
National Languages Standard Chinese or Mandarin
English
Yue (Cantonese)
Wu ( Shanghainese)
Min nan (Taiwanese)
Population 1,355,692,576 (July 2014 est.)
Labor Force 797.6 million (2012 est.)
Age Distribution 0-14 years: 17.1%
15-24 years: 14.7%
25-54 years: 47.2%
55 years and over: 20.7%
Roadways Total: 4,106,387 km
China is ranked 3rd
in the world for roadways, with 3,453,890 km
paved (includes 84,946 km of expressways)
Railways Total: 86,000 km (2008)
Airways 507 Airports (2013)
Area of Country Total: 9,596,960 km
land: 9,326,410 km
water: 270,550 km
Terrain Mostly mountains, high plateaus, deserts in west; plains, deltas, and
hills in east
Land Use Arable land: 11.62%
Permanent crops: 1.53%
Other: 86.84% (2011)
Climate Extremely diverse; tropical in south to subarctic in north

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Competitor Analysis
All competitors have established a pre-defined global supply-chain; this will lead to quick pace
establishments and secure market share. Our competitors have also dealt with unknown risk,
financial discomforts and have adapted deeply into the Asian market.
Hooters is a casual, beach-themed restaurant known for its brand of food and fun atmosphere,
which features a menu that includes seafood, sandwiches, and Hooters’ “nearly world famous”
spicy chicken wings, complete with service provided by the Hooters Girls. Their set-up is
different in China; their focus is typical western dishes, such as Burgers, pizza and pastas. They
do offer chicken wings that are larger than average size (Jason Marentette, 2014).
KFC and McDonald’s were until recently trendy eateries for newly affluent Chinese consumers,
those people are now less impressed with monotone Western offerings and are turning
increasingly to domestic brands that offer more vibrant Chinese dishes (McDonald's (MCD) And
Yum! (YUM) Losing Market Share In China To Domestic Fast-Food Chains, 2013).
Detailed Evidence of Competitive Advantage
Wings’ products and restaurant structure is unique. There are no existing restaurants with
different flavored wings in China and in fact, most restaurants with chicken wings do not have
any flavor at all and are oven roasted rather than deep-fried. Wings will present a new
experience and a western feel, from the moment the customer enters the restaurant until
completion of his or her meal.

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Founding Team
Starting in April 2015, Founder “Jason Marentette” and a joint venture partner are planning to
open a chicken wing restaurant, “Wings” and spread the company throughout western restaurant
market in China.
Management Team
Jason Marentette
Jason Marentette has over 8 years of management experience, with an
extensive background in entrepreneurship. Jason graduated in 2012 with
an advanced diploma at Algonquin College – International Business, this
also included certification from the Forum for international trade training
(FITT). Currently, Jason is a Business Development Manager at
ThyssenKrupp System Engineering in Shanghai China. He also is currently
taking a degree program at Davenport University, studying Business
administration - International Business.
Source: (Jason Marentette, 2014)
Gaetano Pugliese
Gaetano Pugliese has over 13 years of practical restaurant management
experience, with an extensive background in recipes and menu design.
Gaetano graduated from George Brown College with a diploma in Italian
Culinary Arts. He has also graduated from ALBA Scuola di Cucina with an
Integrated Diploma in Italian Culinary & Wine. Currently, Gaetano is
studying for a Diploma at Niagara College, in Culinary Innovation &
Technology; this is also including Certification from the Red Seal.
Source: (Chef Gaetano Pugliese, 2014)

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Critical Task Accomplishing
The critical task accomplishing will be essential for the Wings team at the start of the business.
Three roles need to be accurately developed to ensure the success. The first is the services
section of the business, having the correct team to provide the right atmosphere for customers.
The second is providing a food quality that is unbeatable in the current market in order to retain
customer satisfaction that provides repeat market sales. Third is the overall management of an
international team, creating budget plans and goals that are carrying the day-to-day operations,
while utilizing the basic criteria is of the operation.
Gap Analysis
The gap in the overall company is lack of experience in operating a restaurant on an international
scale. The team also has no direct accounting or marketing experience in China and there is a
language barrier that could affect the company’s establishment and may cause difficulties in
promotion of the business.

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Product/Service Analysis
Description of the Products
Wings will have ten different flavors with one new limited time flavor available each month that
is used for promotional and marketing purposes.
Our main course will consist of crispy buffalo and flavored (breaded) chicken wings in set
serving sizes. The side dishes will consist of vegetables such as celery and carrot, fresh cut
fries/sweet potato fries, chip style fries and homemade onion rings.
Types of Product Deviations
* A main course includes medium fries and vegetables *
Main Course Sides Beverages
Chicken wings
(Minimum flavoring of
3 pieces)
 6 piece
 9 Piece
 12 Piece
 15 Piece
 18 Piece
 21 Piece
 24 Piece
 27 Piece
Fries
 Medium
 Large
Glass poured
 Water
 Tea
 Sodas (Coke, Sprite etc.)Fresh cut fries
 Medium
Fresh cut sweet potato fries
 Medium
Alcohol
 Local Bottled Beer
 North American Imported bottle beer
 Draft beers
 Pitchers of draft beer
 Hard alcohol shots
Chip fries
 Medium
Homemade onion rings
 Medium

Chicken wings
The chicken wings will come in a standard basket with a few
vegetables. The chicken wings can be coated with the sauce
or remain on the side in a circular portion size cup for dipping
purposes.
Depending on the amount of wings purchased, the baskets will vary. If the order is for “Take
away” or delivery, the chicken wings and side orders will be carried in a Wings commercialized
plastic container that is inside of a “Wings” commercialized paper-carrying bag.
Flavorings
Additional Sauce flavors will be created by our head chef, the list below is only a sample.
Mild
Teriyaki
Ranch
Medium
Hot
Caribbean
Butter Chicken
Asian Zing
Parmesan Garlic
Honey Mustard
Hot BBQ
Spicy Garlic
Desert heat
Roasted Garlic
Salt & Vinegar
Thai Curry
Lemon pepper
Blazing hot
Sweet BBQ
Jalapeno
Chilly

Sample Fries with months special flavor
The “sample fries” will be a small portion of fries with the current months featured flavor of
sauce. The order will be served on one small dish designed with a small divot in the plate for
the sauce. By not covering the fries with in sauce, the customer will have the option to
sample the flavor and if they do not enjoy it, they may choose another flavor or use ketchup.
The dishes will be heat treated so that they can withstand heat and stay hotter longer at the
tables.
Sides
The sides will be served in standard baskets and in plastic containers for “Take away” or
delivery orders.
Service Description
1. The business processes will all be routine based. For example, when a customer comes
into the restaurant, there is a server ready to bring them to their seat.
2. The employee inputs customer seat number into computer software, pre-chef receives
notification and prepares small portion of fries and months special sauce for customers.
3. Server brings menus to customer, goes to the kitchen pass-line to pick up sample portion
fries with sauce and brings to customer.
4. Server takes drink orders
5. Server takes food order
6. Server brings orders to customers. (All customer orders will be brought to table at the same
time)
7. Server brings bill to customer. (Cash or credit card is available)

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Unique features
Wings provides unique features such as new, exciting flavors and new dining atmosphere to
local people of China. The western feel is something different and offereing a new style of
food creates an enjoyable dining experience.
Prototyping
The menu and flavors will be defined in December of 2014, Gaetano Pugliese will design the
menu prototypes using his past experience. Wings will provide mostly western flavors, but
have a few local Chinese flavors to caterer closer to the Asian market; some of Jason
Marentette’s friends will provide their input to help with the prototyping. The flavors will be
unique to Wings and there will be a formula that will ensure that the chicken wings will be
consistent in flavor. The surveying of the types of flavors will come from our own best
judgment, we will also have our friends and families try the flavors to see how they feel about
them. This is a great way to receive input about which selection of flavors to use for a
western restaurant. For Chinese flavors, we will do the same, but use our internal employees
to help us select the flavors they would prefer to be on the menu in addition to the western
options.

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Operations Plan
Restaurant Location
Wings Restaurant needs to be seen as a high-end western restaurant that people can trust.
There are many locations for a restaurant in China, but some are more trendy or expensive
than others. Wings will operate in the center of the city, but remain in an area with low rental
cost that is walking distance from a metro. Some of the buildings nearby will be hotels,
western restaurants and have lots of foot traffic
Area: Bund Area
Metro: Nanjing Rd (E), 5-Minute walk
Center of
Shanghai
Close to Metro Nanjing Road East

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Layout of Restaurant
The restaurant layout is the projection idea of the first Wings restaurant.
Business Processes
The business processes that Wings will have in place are internal and external concepts. HR
services will be fully outsourced. Distribution will have both a third party provider and have
their own delivery person to support direct telephone calls from customers. Products, such as
the chicken will be shipped directly to the business and will help with delegation of inventory
purchases. Internal employees will have routine structuring to keep all employees utilized.
Utensils and basic materials can be purchased before restaurant opening.

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Outsourcing
Human Resources
Wings will have an HR Support Services (HRSS) that will outsource human resource
administration functions; this is standard practice for 70 percent of fortune 500 companies.
Having a “Virtual” human resource department reduces cost, overhead, overload of staff
utilization and helps locate skilled specialists (Transforming HR Overhead into Business
Opportunity) & (HR outsourcing , 2011).
Customer Delivery
Delivery to customers will need a few alternative distribution systems. In order to service as
many customers as possible, Wings will co-operate with a local third party distributors.
Sherpa’s, a food delivery company (Food Delivery Service, 2014), founded by Mark Secchia
mentioned that approximately 200,000 foreign customers and roughly 800,000 local Chinese
customers visit and purchase from the Sherpa’s website (Secchia, 2014). Wings will
incorporate Sherpa’s into their distribution system; this is an easy way to gather market
growth while maintaining a low cost to the overall delivery service.
Having a simple distribution system benefits a company’s direction, chicken wings and
vegetables will be shipped from the chicken or vegetable processing plant to Wings directly
to maintain cost efficiency. Having a third party delivery service is a cost effective and easy
way to keep Wings running smoothly, with less risk of delivery delays and problems. Wings
will also have a back-up employee that is able to deliver meals if a customer calls Wings
restaurant directly.

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Operations
The operations at Wings will have internet available for customer and a telephone number for
customers to call to reserve seating or for delivery. There will be debit or credit card services
available and the accounting and most of the delivery will be outsourced. Materials and
inventory management services will be established that can supply our inventories.
Suppliers
For chicken wing suppliers, Wings will choose the suppliers based on quality and consistency
of their product. Wings will also inspect the facilities or the processing plants to ensure
product health and safety is established and maintained.
Inventory Management
Some of the materials that need to be purchased are the kitchen equipment such as deep
fryers, and freezers and front-end restaurant equipment such as credit card machines, tables,
baskets and plates.
Quality Control
Chicken requires testing for salmonella, listeria, staphylococcus, streptococcus, E coli and
more importantly Listeria Monocytogenes. The meat packing company will test the quality
of our chicken; they will do the testing before the product leaves the processing plant (Chef
Gaetano Pugliese, 2014).
Wings will examine the processing plant in a timely manner to see if the regulations are in
place. This will allow our customers to have healthy and quality tested meals.

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Organization Plan
Legal Structure
Political, Legal & Business Environment
Topics China (中国)
Economic Situation
Source: (Is China a Communist country?
Why americans can't be ignorant about
China anymore., 2013)
Chinese Communist country, but it allows
capitalism and Chinese corporations to profit
and flourish as an organization.
Government Stability
Level of stability is the government and
country which could influences sales
The political system and government stability
has been stable for several years. Their
government is communist, but also known as
the People’s Republic of China.
Government Involvement
Level of influence government has on the
private business.
Chinese government has been able to largely
prevent a strong Ren min bi as it retains
control over cross border capital movements.
Currency Fluctuation
Source: (Transmission Worldwide, 2012)
Exchange rate fluctuations
The Chinese government is expected to resist
the appreciation pressure and keep the Ren min
bi exchange rate more or less stable until the
wobbly economic recovery finds firmer
footing.
GDP (Please see Appendix C) $9.33 trillion (2013 est.)
Inflation Rate 2.6% (2013 est.)
Tax System
Costs associated with export & sale process
Taxes: 19.4% of GDP (2013 est.)

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Currency
The currency in China is “Ren Min Bi” (RMB)/ also known as Yuan (CNY). (Please see
photo within Appendix B)
Currency - October 5, 2014
1 United States Dollar (USD) = 6.15 Chinese Yuan (CNY)
1 Chinese Yuan (CNY) = 0.16 United States Dollar (USD)
Source: (USD and CNY Currency Exchange Rate, 2014)
1 Canadian Dollar (CAD) = 5.46 Chinese Yuan (CNY)
1 Chinese Yuan (CNY) = 0.18 Canadian Dollar (CAD)
Source: (CAD and CNY Currency Exchange Rate, 2014)
Exchange Rates
Note: Due to non-secondary source, 2011 was created by average calculation of Chinas
monthly averages. (Please see Appendix A)
Source: (The World Factbook, China, 2014) & (Monthly Average, 2011)
6.2
6.3123
6.7703
6.464388333
6.3123
6.2
5.9
6
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
2008 2009 2010 2011 2012 2013
Renminbi Yuan (RMB) Per US dollar

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Philosophy of Management
The philosophy of management is to ensure that the customers are satisfied and enjoying their
meals. Management will have internal control of employees to ensure that all staff members
are working as a team and all parties are responsible to do their jobs quickly and
professionally. If the cook is taking too long or the server is taking too long, the quality and
overall customer enjoyment declines and customers are priority number one.
Key Management
Until such time that expansion of the company surpasses the use of micro operations, there
are only three key management employees. Jason Marentette will be in charge of the overall
operations. Gaetano Pugliese will be in charge of the kitchen. Either a joint venture partner or
a bilingual day-to-day operations manager will also be required.
Joint-Venture Partner
Having a Chinese Joint Venture (JV) partner within the territory of the People’s Republic of
China is a requirement for all foreigners operating a business in China. This is on the
principle of equality and subjected to approval by the Chinese Government. Both parties in
the venture will share the profits, risk and losses in proportion to their contribution to the
registered capital. Foreign partner (s) must have a minimum of 25% capital contribution,
while there is no minimum share-holding percentage of investment for the Chinese partner (s)
(China Joint Venture(JV) , 2014).
Wings will have a Cooperative Joint Venture (CJV), this allows for parties involved to have
separate legal entities and bear liabilities independently rather than as a single entity. The
founder “Jason Marentette” will have power over all business direction and selling or closing
rights, while the joint venture partner and founder will bear independent liability of the
company (Cooperative Joint Venture, 2014).

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Organization Concept
For the first restaurant, Jason will oversee all areas until inelasticity has affected the team and
a management staff can manage them correctly.
Organization Structure
The diagrams below are two scenarios business Start-up structure that could be in place.

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Philosophy of Management
The Philosophy of Management is to set-up a structure that is franchise friendly, easy to
manage, operate with simplicity and provide a consistent product in order to grow a company
that people can trust. Starting the first company is a difficult process; it includes many
problems and discloses many risks that may be yet unknown. To establish a restaurant with a
joint venture, it may be helpful to see scenarios of management operation.
In scenario 1 of organization structure (Pg. 30), the joint venture will be in charge of the
“Day-to-day” operations and report directly to the owner. The Joint Venture Partner will be
in charge of the servers and sales. The Head chef will manage all kitchen establishments,
purchasing inventory, be in charge of the cook, and prep chef.
In Scenario 2 of organization structure (Pg. 30), the Joint Venture Partner is solely an
investor into the company. This would require a bilingual (Chinese and English) operation
manager who is in charge of the servers and sales.
All hiring and firing of servers, kitchen quality inspection, and company image promotion
belong to the owner and all accounting work will be outsourced.
Long-Term Objectives
The long-term objective is to grow the company while reducing owners grasp on all areas of
the company. The JV Partner or Operation manager will move up in responsibilities as the
company grows, managing sales, marketing and local employees. The Head Chef will move
into management of quality of the restaurant, front operations and kitchen to ensure the
company is running smoothly and maintaining a high standard. As the company expands,
both the head chef and operation manager will start taking more company responsibility,
climbing the latter system.

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32
Marketing Plan
Purpose of Marketing Plan
The purpose of the marketing plan is to gather information and determine all hidden risks that
accompany starting a business overseas and then find solutions to reduce those risks. The
research gathered will be primary and secondary data collected from online websites, direct
observation, PDF documents and local contacts.
The data collected is from the most reliable sources of qualitative and quantitative information.
The databases used are websites using primary and secondary data such as government-funded
websites, CIA World Fact Book, and many other websites that appear to be relevant and are
authentic sources. All websites used as sources were placed in the bibliography with dates to
show how recently the information was collected.
The websites used for this business plan for China data came from many of the same websites;
sites that are related to importing and exporting have had some credible research that has
improved the gathered information. This includes the demographic, economic, political and
regulations of each country.
The gathered information for China will include government stability, market and country
characteristics, barriers for entry, and the potential customer demographics. Many other areas
such as current infrastructure, distribution and economic development will be primary and
secondary information.

Wings Corporation
33
Target Market
Our target market customers are people who enjoy chicken and who want to have a taste of
western style chicken wings with different types of flavoring. We will cater to both Chinese
people and Foreign expatriates who want to enjoy good quality chicken smothered in a
variety of interesting flavors.
Top Three Popular Cities
1. Shanghai
Location: The Yangtze Delta, Central East China
Urban population: 22 million
GDP per capita: $14k
2. Beijing
Location: Near the Bo Hai Gulf, Northeast China
3. Tianjin
Location: On the Bo Hai Gulf, Northeast China
Source: (China's Largest Cities, 2014)
Unique Market Niche
Wings will have a unique market niche as there are no companies focusing on flavored wings in
China. Many western restaurants have moved into localizing their meals to suit the Chinese
customers. Local Chinese are starting to trend towards western restaurants because of the high
amount of Chinese restaurants already available in the market place.

Wings Corporation
34
Plan to reach first customer
The plan is to market to all expatriates looking to have western food, this will bring locals to
follow in their paths. There are several ways to introduce a western restaurant to westerners,
the websites “Shanghai Expat” and “Smart Shanghai” are catered to new foreigners in China
(shanghaiexpat, 2014) (smartshanghai, 2014). Advertising on these website are simple,
affordable and will target our direct customer focus.
Total Rewards Strategy
The total rewards strategy is a discount card for reoccurring customers. The discount cards
are used by customers to receive discounts on purchases at Wings. After spending a certain
amount at Wings, the customer will get a percent value removed from their purchase of
chicken wings. The cards will be valid for one year. If, after one year the customer has not
made a purchase, they will move down a stage in the discount system.
Stage 0 - ¥0-999 RMB ($162 USD) – 0% discount
Stage 1 - ¥1000 RMB ($163 USD) – 5 % discount

Wings Corporation
35
Financial Plan
Potential for repeat sales
The potential repeat for sales will continue to be lucrative. As long as the quality of the food
and service is substantial, then Wings should be able to operate with repeat customers.
Customers will come to wings repeatedly if the restaurant has a product that they can trust
and with a new monthly flavor, they are more likely to return to try the next one.
Ability to forecast accurately
The forecast is based on an excel program that consists of simple formulas that should be
correct. Any additional excel formulas added did not affect the excels standard version
provided. The forecast accuracy is an assumed prediction of the overall cost, operating
expenses and potential profit. Forecasting accuracy is based on personal judgment and will
not be 100% accurate. Naturally using the standard excel provided, the accuracy should be to
its highest potential.
Profitability likelihood within two years (break-even analysis)
According to the financial projection excel and after observing and understanding China’s
western restaurants, Wings should be able to breakeven selling chicken wings within its first
two years in business. As long as it is able to keep the image of a western restaurant and
maintain that status to in the eyes of the locals living in Shanghai, then it should be able to
profit enough to achieve financial stability.

Wings Corporation
36
Exit opportunity for investors
The plan is to remove the investors by slowly decreasing their investments. As the company becomes
profitable it will pay back the investors, subsequently Wings will also have its own investing plan to
keep equity within the company. As wings plans to expand its market share, it will ask for less
financials from the investors while leveraging its own investments to cover more of the investors’
liability.
Estimate of year 1 & 2 sales
During the first fiscal year, the estimate of sales is 25,404 sets of standard portion size wings. This is
based on the assumption that Wings will be open 7 days a week not including holidays or 336 days
per year. The assumed sales of 68 per day of standard portion size wings is based on the minimum
orders, which means there is plenty of room for additional sales. The growth rate is 25% per year,
and the total sale for the second year is 31,755 sets of basic standard wings.
Pro--forma income statement
Over the first year of the pro-forma income statement, Wings would profit an estimated $111,403 if it
were to sell the assumed amount of servings at its restaurant. This would be a good start to the
company’s business and would be enough financial funding to improve the company’s work structure,
develop additional supply chains, pay back investors and add financials into its own personal
investment plan.
Start-up capital required
The Start-up capital required is $28,290 (¥155,592.47); this includes equipment, furniture,
rental agreement for 4 months at a reasonable location, the starting inventory and operating
capital. The assumption is that most of the promotions will be done during the slow times
during the day, and all utensils would be using the metro for pick-ups, as the location is very
convenient on foot.

Wings Corporation
37
Growth Plan
Growth Strategy
The growth strategy is to build a company that profits; the company will have a limited
amount of staff until it can operate at full capacity. As the company grows in popularity, the
company will hire more staff and increase the volume of distribution channels until the
company is no longer able to provide additional services at maximum capacity. Once the
company is able to create enough profit, it will establish another branch within the center of
the city, this will allow for the capacity of distribution to be handled easier as one of the
branches will focus on delivery and distribution, while the other will have a direct customer
to customer approach. As profits grow, so will the company, expanding from one side of the
city to the other until profits generate enough to expand outside of Shanghai and to other
large city in China.
Resources Required
Personnel
Some of the personnel that will have to become involved in the operations are the cooks,
servers, managers, delivery services, accounting employees, global supply chain supervisors
and cashiers.
Facilities & Equipment
Some of the facilities that will have to grow are the size of the kitchen, refrigerators, deep
fryers and air conditioning systems. Wings will also have to grow the seating capacity, tables
and utensils to fit the growth plan.

Wings Corporation
38
Capital
As the company grows so will the capital growth, therefore Wings will not spend its profits to
expand the business, instead it will pay back loans and interest from the investors. Once the
investors are paid back, the company will plan for expansion and will then request a smaller
investment from investors to keep profit share within the company. As the company grows,
the investors share will decrease until the Wings can fully function using leverage from the
bank to provide the loans required.
Infrastructure Changes
The infrastructure changes will become more standard and efficient, and all the Wings
restaurants will be designed in the same standard fashion. This will allow the business to
reduce the overall cost of micro-purchases while creating an image that people know and can
trust.

Wings Corporation
39
Contingency and Harvesting Plan
Contingency Plan
Like all companies, deviations change the outcome of the proposed plan. Wings will have many
deviations during start-up, but the main goals and focus will remain the same. Product deviation
could occur to target the local Chinese and the global supply service will change over time to have a
better competitive structure to endure any risks that may occur.
Depending on sales, Wings will have a set amount invested back in the company per-month,
this will allow the company to remain financially stable while the companies start-up
popularity fluctuation stabilizes. This company needs to have an investment plan for its
wealth contingency to broaden its market while investing in its future.
Harvesting Plan
Deviations will depend on the harvest, if the company is not able to hit financials, then an exit plan
will have to happen to close down the company. If the company is very successful, then Wings will
be able to hire and grow quicker while the profit results remain well standing.
Harvesting wealth plan will be determined by the financials and from the company’s personal opinion
of what to do with the harvest. There are many options to use the financials, but to ensure the
company is structured for success and takes the correct steps, the company will branch out slowly to
make sure the organization culture is able to remain the same.

Timeline to Launch

Appendix
Required Start-Up Funds
Wings Exchange Rate 5,5 29-Oct-14
Required Start-Up Funds Amount Chinese Currency (RMB) Depreciation Notes
Fixed Assets
Real Estate-Land -$ -¥
Buildings -$ -¥ Rental
Leasehold Improvements -$ -¥ Owners Requierment
Equipment 10.000$ 55.000,00¥ 7,00 years Deep fryers & Refrigerator
Furniture and Fixtures 5.000$ 27.500,00¥ 5,00 years Tables and utensils
Vehicles 300$ 1.650,00¥ Metro Cost
Other Fixed Assets 2.000$ 11.000,00¥ 5,00 years Others
Total Fixed Assets 17.300$ 95.150,00¥
Operating Capital
Pre-Opening Salaries and Wages -$ -¥
Prepaid Insurance Premiums -$ -¥
Inventory 3.335$ 18.342,50¥ Food
Legal and Accounting Fees 100$ 550,00¥
Rent Deposits 1.455$ 7.999,97¥ 1 Month deposit
Utility Deposits 100$ 550,00¥
Supplies 2.000$ 11.000,00¥
Advertising and Promotions 1.000$ 5.500,00¥ Online promotions
Licenses 2.000$ 11.000,00¥ Fees
Other Initial Start-Up Costs 500$ 2.750,00¥ Fees
Working Capital (Cash On Hand) 500$ 2.750,00¥ Exchange purposes
Total Operating Capital 10.990 60.442,47¥
Total Required Funds 28.290$ 155.592,47¥
Sources of Funding Amount Totals Chinese Currency (RMB) Loan Rate Term in Months Monthly Payments Chinese Currency (RMB)
Owner's Equity 35,35% 10.000 55.000,00¥
Outside Investors 53,02% 15.000 82.500,00¥
Additional Loans or Debt
Commercial Loan 11,63% 3.290 18.092,47¥ 10,00% 84,00 $54,61 300,36¥
Commercial Mortgage 0,00% - -¥ 0,00% 240,00 $0,00 -¥
Credit Card Debt 0,00% - -¥ 0,00% 60,00 $0,00 -¥
Vehicle Loans 0,00% - -¥ 0,00% 48,00 $0,00 -¥
Other Bank Debt 0,00% - -¥ 0,00% 36,00 $0,00 -¥
Total Sources of Funding 100,00% 28.290$ 155.592,47¥ $54,61 300,36¥

Wings Corporation
42
Salaries and Wages
Minimum salary wages is correct for employment in China
Salaries and Related Expenses # Assumptions Wage Base Monthly Year One Year Two Year Three
Percent Change owner's 50.00% 50.00%
Percent Change employees 5.00% 10.00%
Salaries and Wages
Owner's Compensation 3 2,000.00$ 24,000.00$ 36,000.00$ 54,000.00$
Salaries 5 1,000.00$ 12,000.00$ 12,600.00$ 13,860.00$
Total Salaries and Wages 8 3,000.00$ 36,000.00$ 48,600.00$ 67,860.00$
Payroll Taxes and Benefits
Social Security 0.00% -$ -$ -$ -$
Medicare 0.00% -$ -$ -$ -$
Federal Unemployment Tax (FUTA) 0.80% 4,000$ 21.33$ 256.00$ 256.00$ 256.00$
State Unemployment Tax (SUTA) 2.70% 4,000$ 72.00$ 864.00$ 864.00$ 864.00$
Employee Pension Programs 0.00% -$ -$ -$ -$
Worker's Compensation 0.00% -$ -$ -$ -$
Employee Health Insurance 0.00% -$ -$ -$ -$
Other Employee Benefit Programs 4.00% 120.00$ 1,440.00$ 1,512.00$ 1,663.20$
Total Payroll Taxes and Benefits 213.33$ 2,560.00$ 2,632.00$ 2,783.20$
Total Salaries and Related Expenses 3,213.33$ 38,560.00$ 51,232.00$ 70,643.20$
If "green" cells have formulas in them to start with and are then overwritten, the dependent calculations will not be correct and will need to be updated manually

Wings Corporation
43
Fixed Operating Expenses
Note: Food product shipping will be directly to company
Expenses RMB
Advertising 250.00$ 1,375¥ 3,000.00$ 3,090.00$ 3,213.60$
Car and Truck Expenses -$ -¥ -$ -$ -$
Bank & Merchant Fees 20.00$ 110¥ 240.00$ 247.20$ 257.09$
Contract Labor -$ -¥ -$ -$ -$
Conferences & Seminars -$ -¥ -$ -$ -$
Customer Discounts and Refunds -$ -¥ -$ -$ -$
Dues and Subscriptions -$ -¥ -$ -$ -$
Miscellaneous 50.00$ 275¥ 600.00$ 618.00$ 642.72$
Insurance (Liability and Property) -$ -¥ -$ -$ -$
Licenses/Fees/Permits 100.00$ 550¥ 1,200.00$ 1,236.00$ 1,285.44$
Legal and Professional Fees -$ -¥ -$ -$ -$
Office Expenses & Supplies -$ -¥ -$ -$ -$
Postage and Delivery -$ -¥ -$ -$ -$
Rent (on business property) 1,454.54$ 8,000¥ 17,454.48$ 17,978.11$ 18,697.24$
Rent of Vehicles and Equipment -$ -¥ -$ -$ -$
Sales & Marketing -$ -¥ -$ -$ -$
Taxes-Other -$ -¥ -$ -$ -$
Telephone and Communications 100.00$ 550¥ 1,200.00$ 1,236.00$ 1,285.44$
Travel -$ -¥ -$ -$ -$
Utilities 100.00$ 550¥ 1,200.00$ 1,236.00$ 1,285.44$
Total Expenses 2,074.54$ 24,894.48$ 25,641.31$ 26,666.97$

Wings Corporation
44
Projected Forecast
Wings 8.67¥ 1.58$ Note: 5,5 is the exchange rate to canadian 12-Nov-14
Projected Sales Forecast Average sale per custome 51.33¥ 9.33$
Products and Services Assumptions % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Product/Service A
Price Per Unit 9.33$ 100.00%
Variable Cost Per Unit 1.58$ 16.93%
Gross Margin Per Unit 7.75$ 83.07%
Projected Unit Sales
Seasonality Factor 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 100.00%
Year One 2117 2117 2117 2117 2117 2117 2117 2117 2117 2117 2117 2117 25,403
Year Two Growth 25.00% 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 31,753
Year Three Growth 25.00% 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 39,692
Overhead Exp Allocation 50.00%
Projected Revenue 237,006$
Variable Costs 40,136
Gross Margin 196,870
Overhead Expenses 0
Profit 196,870 83.07%
Breakeven Sales Revenue -$
Breakeven Sales Units -
Average cost per unit sale

Income Statement
Projected Income Statement - Year One
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Income
Product/Service A 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 237,006
Product/Service B - - - - - - - - - - - - -
Product/Service C - - - - - - - - - - - - -
-
Total Income 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 237,006
Cost of Sales
Product/Service A 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 40,136
Product/Service B - - - - - - - - - - - - -
Product/Service C - - - - - - - - - - - - -
-
Total Cost of Sales 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 40,136
Gross Margin 16,406 16,406 16,406 16,406 16,406 16,406 16,406 16,406 16,406 16,406 16,406 16,406 196,870
Total Salary and Wages 2,717 2,717 2,717 2,717 2,717 2,717 2,717 2,717 2,717 2,717 2,717 2,717 32,606
Fixed Business Expenses
Advertising 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Car and Truck Expenses - - - - - - - - - - - - -
Bank & Merchant Fees 20 20 20 20 20 20 20 20 20 20 20 20 240
Contract Labor - - - - - - - - - - - - -
Conferences & Seminars - - - - - - - - - - - - -
Customer Discounts and Refunds - - - - - - - - - - - - -
Dues and Subscriptions - - - - - - - - - - - - -
Miscellaneous 50 50 50 50 50 50 50 50 50 50 50 50 600
Insurance (Liability and Property) - - - - - - - - - - - - -
Licenses/Fees/Permits 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Legal and Professional Fees - - - - - - - - - - - - -
Office Expenses & Supplies - - - - - - - - - - - - -
Postage and Delivery - - - - - - - - - - - - -
Rent (on business property) 1,455 1,455 1,455 1,455 1,455 1,455 1,455 1,455 1,455 1,455 1,455 1,455 17,454
Rent of Vehicles and Equipment - - - - - - - - - - - - -
Sales & Marketing - - - - - - - - - - - - -
Taxes-Other - - - - - - - - - - - - -
Telephone and Communications 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Travel - - - - - - - - - - - - -
Utilities 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Total Fixed Business Expenses 2,075 2,075 2,075 2,075 2,075 2,075 2,075 2,075 2,075 2,075 2,075 2,075 24,894
Other Expenses
Amortized Start-up Expenses 199 199 199 199 199 199 199 199 199 199 199 199 2,385
Depreciation - - - - - - - - - - - - -
Interest
Commercial Loan 27 27 27 27 26 26 26 26 26 25 25 25 314
Commercial Mortgage - - - - - - - - - - - - -
Line of Credit - - - - - - - - - - - - -
Credit Card Debt - - - - - - - - - - - - -
Vehicle Loans - - - - - - - - - - - - -
Other Bank Debt - - - - - - - - - - - - -
Taxes 2,317 2,317 2,317 2,317 2,318 2,318 2,318 2,318 2,318 2,318 2,318 2,318 27,811
Total Other Expenses 2,543 2,543 2,543 2,543 2,543 2,543 2,542 2,542 2,542 2,542 2,542 2,541 30,510
Net Income 9,071 9,071 9,071 9,071 9,071 9,072 9,072 9,072 9,072 9,072 9,073 9,073 108,860

Cash Flow Statement
Projected Cash Flow Statement - Year One
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Beginning Cash Balance 500 12,060 23,619 28,226 39,786 51,345 55,952 67,512 79,071 83,678 95,238 106,797
Cash Inflows
Income from Sales 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 237,006
Accounts Receivable - - - - - - - - - - - - -
Total Cash Inflows 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 19,751 237,006
Cash Outflows
Investing Activities
New Fixed Assets Purchases - - - - - - - - - - - - -
Inventory Addition to Bal.Sheet - - - - - - - - - - - - -
Cost of Sales 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 3,345 40,136
Operating Activities
Salaries and Wages 2,717 2,717 2,717 2,717 2,717 2,717 2,717 2,717 2,717 2,717 2,717 2,717 32,606
Fixed Business Expenses 2,075 2,075 2,075 2,075 2,075 2,075 2,075 2,075 2,075 2,075 2,075 2,075 24,894
Taxes - - 6,952 - - 6,953 - - 6,953 - - 6,953 27,811
Financing Activities -
Loan Payments 55 55 55 55 55 55 55 55 55 55 55 55 655
Line of Credit Interest - - - - - - - - - - - - -
Line of Credit Repayments - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Total Cash Outflows 8,191 8,191 15,143 8,191 8,191 15,144 8,191 8,191 15,144 8,191 8,191 15,144 126,103
Cash Flow 11,560 11,560 4,607 11,560 11,560 4,607 11,560 11,560 4,607 11,560 11,560 4,606 110,903
Operating Cash Balance 12,060 23,619 28,226 39,786 51,345 55,952 67,512 79,071 83,678 95,238 106,797 111,403
Line of Credit Drawdowns - - - - - - - - - - - - -
Ending Cash Balance 12,060 23,619 28,226 39,786 51,345 55,952 67,512 79,071 83,678 95,238 106,797 111,403
Line of Credit Balance - - - - - - - - - - - -

Balance Sheet
Base Period End of Year One
Assets
Current Assets
Cash 500 111,403
Accounts Receivable - -
Inventory 3,335 3,335
Prepaid Expenses 6,655 4,436
Other Current 500 333
Total Current Assets 10,990 119,508
Fixed Assets
Real Estate-Land - -
Buildings - -
Leasehold Improvements - -
Equipment 10,000 10,000
Furniture and Fixtures 5,000 5,000
Vehicles 300 300
Other Fixed Assets 2,000 2,000
Total Fixed Assets 17,300 17,300
Less: Accumulated Depreciation - -
Total Assets 28,289 136,807
Liabilities and Owner's Equity
Liabilities
Accounts Payable - -
Loan Payable 3,290 2,948
Mortgage Payable - -
Credit Card Debt - -
Vehicle Loans - -
Other Bank Debt - -
Line of Credit Balance - -
Total Liabilities 3,290 2,948
Owner's Equity
Common Stock 25,000 25,000
Retained Earnings - 108,860
Dividends Dispersed - -
Total Owner's Equity 25,000 133,860
Total Liabilities and Owner's Equity 28,289 136,807
Statement Balances Statement Balances

Year End Summary
Year One % Year Two % Year Three %
Income
Product/Service A 237,006 296,258 370,322
Product/Service B - - -
Product/Service C - - -
- - -
Total Income 237,006 100.00% 296,258 100.00% 370,322 100.00%
Cost of Sales
Product/Service A 40,136 50,170 62,713
Product/Service B - - -
Product/Service C - - -
- - -
Total Cost of Sales 40,136 16.93% 50,170 16.93% 62,713 16.93%
Gross Margin 196,870 83.07% 246,088 83.07% 307,610 83.07%
Total Salary and Wages 32,606 13.76% 44,994 15.19% 63,810 17.23%
Fixed Business Expenses
Advertising 3,000 3,090 3,214
Car and Truck Expenses - - -
Bank & Merchant Fees 240 247 257
Contract Labor - - -
Conferences & Seminars - - -
Customer Discounts and Refunds - - -
Dues and Subscriptions - - -
Miscellaneous 600 618 643
Insurance (Liability and Property) - - -
Licenses/Fees/Permits 1,200 1,236 1,285
Legal and Professional Fees - - -
Office Expenses & Supplies - - -
Postage and Delivery - - -
Rent (on business property) 17,454 17,978 18,697
Rent of Vehicles and Equipment - - -
Sales & Marketing - - -
Taxes-Other - - -
Telephone and Communications 1,200 1,236 1,285
Travel - - -
Utilities 1,200 1,236 1,285
Total Fixed Business Expenses 24,894 10.50% 25,641 8.66% 26,667 7.20%
Operating Income (before Other Expenses) 139,370 58.80% 175,452 59.22% 217,133 58.63%

Wings Corporation
49
Breakeven Analysis
Breakeven Analysis Dollars Percent
Annual Sales Revenue 237,006$ 100.00%
Cost of Sales 40,136 16.93%
Gross Margin 196,870 83.07%
Salaries and Wages 32,606
Fixed Operating Expenses -
Total Fixed Business Expenses 32,606
Breakeven Sales Calculation 32,606
83.07%
Breakeven Sales in Dollars 39,253$

Appendix
Appendix A
Average monthly exchange rate 2011 (1 USD to RMB)
2011
Jan 6.597252
Feb 6.577666
Mar 6.566791
Apr 6.528736
May 6.497068
Jun 6.477146
Jul 6.458009
Aug 6.40518
Sep 6.389746
Oct 6.374578
Nov 6.356462
Dec 6.344026
77.57266 = 6.464388
12 Months
Source: (Monthly Average, 2011)
Appendix B
Photo image of RMB Currency
Source: (Wikipedia, 2005)
Note: The Wikipedia image is accurate currency.

Wings Corporation
51
Appendix C
China GDP
Source: (International Monetary Fund)
China Purchasing Power
Source: (International Monetary Fund)
7,322
8,221
8,939
9,761
10,641
11,585
12,633
13,760
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2011 2012 2013 2014 2015 2016 2017 2018
Billions(USD)
China GDP (National Currency)
11,189
12,261
13,374
14,579
15,924
17,394
18,990
20,730
0
5,000
10,000
15,000
20,000
25,000
2011 2012 2013 2014 2015 2016 2017 2018
Billions(USD)
China GDP (Purchasing Power Parity)

Wings Corporation
52
Appendix D
Meat Consumption in China, 1975-2012
Million Metric Tons
Year Chicken Beef Pork Total
1975 n.a. 0,3 7,0 7,3
1976 n.a. 0,3 7,0 7,4
1977 n.a. 0,3 7,1 7,4
1978 n.a. 0,3 7,8 8,1
1979 n.a. 0,2 9,9 10,1
1980 n.a. 0,3 11,2 11,5
1981 n.a. 0,2 11,7 12,0
1982 n.a. 0,3 12,5 12,7
1983 n.a. 0,3 12,9 13,2
1984 n.a. 0,4 14,2 14,5
1985 n.a. 0,5 16,3 16,7
1986 n.a. 0,6 17,8 18,3
1987 1,5 0,8 18,1 20,4
1988 2,0 0,9 20,0 22,9
1989 2,1 1,0 21,0 24,1
1990 2,4 1,1 22,6 26,1
1991 3,1 1,3 24,3 28,6
1992 3,5 1,7 26,2 31,5
1993 4,5 2,2 28,4 35,0
1994 6,1 3,0 31,9 41,0
1995 7,7 4,1 36,4 48,1
1996 9,0 3,5 31,4 43,9
1997 7,4 4,3 35,8 47,5
1998 8,2 4,7 38,7 51,6
1999 8,7 5,0 40,0 53,7
2000 9,4 5,1 39,6 54,1
2001 9,2 5,1 40,4 54,7
2002 9,6 5,2 41,0 55,8
2003 10,0 5,4 42,1 57,5
2004 9,9 5,6 43,0 58,5
2005 10,1 5,6 45,1 60,8
2006 10,4 5,7 46,0 62,1
2007 11,4 6,1 42,7 60,2
2008 12,0 6,1 46,7 64,7
2009 12,2 5,7 48,8 66,8
2010 12,5 5,6 51,2 69,2
2011 13,0 5,5 50,0 68,5
2012 13,5 5,5 52,0 71,0
Source: (Larsen, Janet, 2012)

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