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BizCafe Business Case 3&4 - Coursework Example

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Running head: Business: BizCafe Business Case 3&4 Insert Name Insert Insert 11th.Aug. 2011 BizCafe Business Case 3 Task 1: The choice of the organic coffee was appropriate for my business, as most customers prefer organic coffee because it is natural and it does not have chemical additives…
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BizCafe Business Case 3&4
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Download file to see previous pages However, we did not choose a logo for the business, but the cups and coffee were purchased in bulk. As a result, the business was able to reduce on costs. The aim of this business is to attain a competitive advantage, and in order to increase on productivity it needs additional cash. As a result of this decision, a loan is required in order to boost the business, and the creation of a loan proposal is necessary. The above decisions made for the cafe did not meet our expectations even though they were fruitful. Loan Proposal Never Enough Cafe is a small business that was recently started with an aim of profit making. Its mission statement includes “to ensure that our customer’s professional and courteous service, by selling remarkable coffee at fair prices and maintaining a clean and comfortable space for our customers and staff…..” The main objective of the business is to attract customer by offering the best services, with an aim of increasing revenues. The Never Enough Cafe seeks to expand in the future; however, for now, we have less than 10 employees, two managers and 4 servers. Most of our staff includes university students. However, due to the high demand of customers, the cafe seeks to employ more staff. Nevertheless, this factor is challenged by the incapability of the business to pay more employees, as it is in its growing stages. The cafe operate six days in a week from 9am to 9pm and closes on Sundays. The cafe offers three different sizes of coffee at different prices that range from $2 to $7; the business has adopted certain strategies like product differentiation, in which it concentrates on different sizes of coffee, as opposed to several other cafes that focus on one-cup size of coffee. This cafe specializes in only coffee beverage, but the coffee comes in different types; cappuccino, black coffee, white coffee and coffee latte. The cafe uses the 4-cup automatic espresso, with an aim of serving more customers at ones, hence avoiding long queues and inconveniences to customers. The loan we are seeking aims at profitability in the sense that we will be in a position to market ourselves, by creating a company logo, advertising on radio, and labeling our cups with the company names. In addition, we require an insurance cover for the business, which we do not have at the moment. Due to the favorable location on Main Street, the cafe targets a variety of customers, for instant, the university students, employees, university staff, and downtown clientele. Our main aim is to satisfy the needs of our customers fast and effectively. Therefore, the required amount expected for the loan is $25,000, which will assist in the above strategies. BizCafe #4 Fiscal evaluation According to Pride, Hughes & Kapoor (2011, p.518), the financial health of a business is very important as it involve the computation of financial ratios. Such information is found in the balance sheets and income statements. Return on sales indicates whether a firm is transforming sales into profits. In addition, a low return on sales may be increased if expenses are reduced or sales are increased, however, in some cases, both strategies may be used. The ‘Never Enough Cafe’ has experienced a number of challenges financially since it started. The management decided to purchase expensive furniture and espresso coffee machine, with an aim ...Download file to see next pagesRead More
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