BizCafe Weekly Business Review #4 - Coursework Example

Running head: BizCafe Business Review week 4 Insert Insert Insert 25 August BizCafe Business Review Week 4The “Never Enough Café” is still operating from 8.00am to 9.00pm from Monday to Saturday. The change in operation hour has increased the number of customers, especially the university students who report early to school to study. In addition, the café still has enough inventories, therefore, no needs for more, which is a great advantage for the business as we only want to focus on the returns and avoiding major expenses.

The total weekly receipts for this period are at $5,613, indicating a great improvement on the large coffee cup purchases. This is very effective and if the sales continue to increase, the business will continue to operate at a profit. The checkbook balance stands at $904.67, meaning that the business is not all drained up, but still has some revenues in the business account. The café is however not operating at a loss as deposits outweighs the payments made. The net income has dropped to $13, 136.

23 as compared to the previous week, which indicated the net income at $13,247.48. This could be as a result of added expanses since we had to hire another server and also part with $500 for the espresso damage. The local labor reports indicate a drop in the turnover rate, which currently stands at 13.6%; this is a great relief to the business as the previous week was harsh where one server quit, therefore inconveniencing the operations and additional expenses were incurred in recruiting of another server.

The customer’s survey indicates an increase in customer satisfaction from 54% to 55%. This could have been determined by a number of reasons - great service, friendly prices, and the great coffee offered. This is as per the customer’s suggestions. According to Cochran (2003, p.2), customer satisfaction should be a priority for any business, as the customers determine the sales to be made, depending on their turn up. Satisfied customers will market the business to their friends, hence achieving customer loyalty, which increases profitability and productivity of a business.

In the previous week, the management decided not to consider renovation of the café as the customer’s suggestions indicated that they appreciated the current state of the café. In addition, no costs were incurred, as our aim is to minimize on costs and maximize on returns. In addition, we have agreed to a live entertainment from a local jazz band, which will not charge us. This strategy aims at attracting customers by adding a remedy to their coffee, which is music. At the same time, we will increase profitability and save on cost.

In addition, our balance sheet indicates a sum of $17,431.00, which balances on both the assets and the liabilities; thus, the currents financial health of our business is favorable. The main task is to limit the rise of inventories and increase on sales, so as to avoid outdated stock in the future. According to Berry (1999, p.65), a balance sheet should be in a position to communicate financial information regarding the position of a business. The information given enables one to identify what he owns and what he owes, therefore enabling the evaluation of financial structure of the business.

The café is associated with a number of advantages, for instance, favorable customer satisfaction and good returns. However, employee turnover rate is undesirable. Therefore, on-the-job training and strategies towards employee’s satisfaction will be considered. Nevertheless, the café aims at maintaining its strengths to maintain its competitive advantage.ReferencesBerry, A. (1999). Financial accounting: an introduction. Edition 2. OH: Cengage Learning EMEA Publishers. Retrieved from http://books.google.co.uk/books?id=mMLb1aLibDQC&pg=PA65&dq=importance+of+a+balance+sheet+for+a+business&hl=en&ei=j_RVTr6ANMqbOrKD9KcM&sa=X&oi=book_result&ct=result&resnum=4&ved=0CD0Q6AEwAw#v=onepage&q=importance%20of%20a%20balance%20sheet%20for%20a%20business&f=trueCochran, C. (2003).Customer satisfaction: tools, techniques, and formulas for success.

NY: Paton Professional Publisher. Retrieved from http://books.google.co.uk/books?id=Q6cu3Wnr1LMC&printsec=frontcover&dq=how+to+attain+customer+satisfaction&hl=en&ei=JfVRTpW1HYqXhQeIzLz1Bg&sa=X&oi=book_result&ct=result&resnum=2&ved=0CD8Q6AEwAQ#v=onepage&q&f=true