THE CHOSEN BUN Chosen Bun bakery financial statements helps us analyze and determine a company’s current situation thus enabling decision makers make prudent choices on the direction a company is to take. Chosen Bun financial statements given include statement of cashflows, balance sheet and income statement. A) Statement of cashflows: Shows how much cash comes in and out of the business,as it reports the cash generated and used during the time interval.specified in its heading. Cash from operating activities is compared to the company’s net income i.e. if it is consistently greater than the net income, then the company’s net income are said to be of high quality, whereas if it is lower than net income concerns are raised as to why the reported
These insight can be gathered from consumer surveys, both qualitative and quantitative in nature, which can help the company to gather data on the strength and weakness of the brand and product attributes that are associated with frequency of purchase and usage of the product. Moreover these consumer insights help companies optimize their marketing budget, where in case of Pillsbury same advertising that was shown in
One of these immensely prominent franchises could generate $1.9 million a year generally. Rapid food franchising accounts for the biggest part of dining establishment online sales in the US. With well-known names that consumers link with franchising, a widely known rapid meals franchise business can promptly set up brand name acknowledgment. The terms "franchise" and "McDonald's" are virtually synonymous with one another, as well as it's still the general agreement that a McDonald's is the Cadillac of franchise possibilities. If you've been taking into consideration a doughnut franchise business, after that perhaps the $2.4 million annual sales of a Krispy Kreme franchise will certainly sweeten the
Market penetration pricing is about setting a lower price on our product with aim to attract customers to buy our product because of the cheaper price compare with other competitor. In our ice cream industry, we have many competitors such as Gelato and Llaollao, so we can use this strategy to stand out among other competitor and draw attention from the customers. After we had successfully penetrated into the market, we will slowly raise back our price to our normal pricing. (A. Pahwa, 28 January
As a result of the time value of the money, NPV considers the compounding of the discount rate over the span of the project. The NPV of a project mirrors how much cash inflow or outflow and it measures up to or surpasses the amount of project capital required to reserve it. An organization utilize NPV as a method for contrasting their relative profitability with assurance that exclusive the most lucrative endeavors are sought while evaluating numerous projects. A higher NPV shows that the project is more fruitful. The forecasted cash outflow and inflow for every period must be recognized and additionally the expected discount rate in order to compute NPV.
The sales budget is responsible in reflecting the real estimation of sales of the services in the present financial year. The main expectation of the sales budget is the estimation of sales expenses and also the services and products that must be produced in the year of budget and also revenue which can be obtained by the selling of these products and
People use it to measure how much the company actually earn out of sales. It is used for comparing similar companies. The company with higher profit margin means it has a better cost-control. This ratio reminds company of suitable budgeting on cost and sale(Kong, 2007). Promotion According to Kettler (1988), promotion can be viewed as an essential motivational factor for making purchase, changing the sense of customers on price or product by adding extra benefits.
In light of this when profits are maximised the firm make decisions to access shareholders wealth through the means of equity. For instance such examples of equity are: ordinary share, preference shares, hybrids and bonds. In addition, Capital Asset Pricing Model (CAPM) and Dividend Growth Model (DGM) is used to calculate measures of equity for the organisation. Inasmuch with cost of equity are investments can be obtained to generate cash causing the firm to be affluent and profitable through investment appraisal decision such as net present value, average rate of return, internal rate of return and payback period. The money retrieved at the end of the investments will be utilised in the form of
Profitability is the organization’s ability to generate profit from it resources. Company profitability is a key attraction for investors that would increase demand on company share and consequently increase the company share price. Profitability can be measured by return on assets “ROA”, return on equity “ROE” and net profit margin ‘Assessment of the profitability of a company is made on the basis of financial profitability ratios. The ratios measure economic effectiveness” (Rutkowska-Ziarko, 2014). ROA, is a financial ration that shows the company ability to generate profit out the used asset.
Under this approach, additional financial rewards, is based on ratings on competence and contribution (Goodwin, N., G. Reinhold, & V. Iles, 2006). Targets are set for individuals at the beginning of the year, and as individuals go about meeting them, supported by the supervisor, monetary incentives are attached as motivation. Le Grand (2003) states that while PRP may actually serve as motivation for some workers; it may also serve as demotivation for others. PRP should be used in ways that it doesn’t create conflicts. Other ways could include giving recognition for high performance.