Mel Green should have more sentence for himself and era to grow his avocation.
He wants to maximize the returns on his investment.
Decision:
a. tolerate the stores as it is.
b.Employ a baker/supervisor for the downtown store immediately.
c.Restructure the business with a view to make a push towards getting more wholesale customers and exploitation up the spare capacity of the downtown store.
Reasons for my decision:
1. surplus sales of just $20,000 will result in a positive cash flow when the business is optimally staffed. This intercommunicate $20,000.00 only takes into account the two customers who are currently implicated in buying bagels from NYBC. His does not take into account the triad customer who wants to buy unbaked bagels.
2.I believe that Mel Greens marketing experience will result in revenues uttermost greater than the $20.000 used in the proforma profit and loss account.
3.Concentrating on the wholesale business will increase revenue without change magnitude labour and overhead costs significantly.
4.Both stores are regain in prime locations and offer high visibility, closing whatsoever of the two stores will lead to a loss of the rivalrous advantage these prime locations affords the business.
Conclusion:
The decision meets the objectives because;
Mel Green has time to use his experience to grow the business and time for himself.
The business is still profitable and has potential for growth
New York Bagel federation
Profit and Loss Account as at December, 1999
Notes main StoreWest-End StoreWholesaleTotal
$ 000$ 000$ 000$ 000$ 000$ 000$ 000$ 000
Turnover 225.00325.00 125.00 675.00
Cost of Goods change
Materials 75.00108.33 41.67 225.00
Manager22.10 22.10 - 44.20
Driver- 1.50 11.00 12.50
Baker1- 22.10 - 22.10
Counter faculty40.00 30.00 - 70.00
Direct Labour 62.1075.70 11.00 148.80
COGS 137.10184.03...If you want to get a rich essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment