Financial Management of 'The Bake Waffles' Company

The assignment provides a comprehensive overview of the financial management of 'The Bake Waffles' company. It includes a breakdown of the company's budget, which reflects its total assets of £17,500, consisting of cash (£3,000), inventory (£4,000), furniture (£2,500), machinery (£3,500), and property (£4,500). The expenses are also listed at £2,500, and liabilities at £1,500. The assignment highlights the importance of budget preparation in resolving cash flow problems and ensuring smooth business functioning.

5 TASKS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
TASK 2............................................................................................................................................2
TASK 3............................................................................................................................................3
TASK 4............................................................................................................................................4
Application of Equality & Diversity Law in selecting employees............................................4
Rights available to new employees.............................................................................................4
TASK 5............................................................................................................................................5
Assets, Liabilities, Expenses & Gain in Business.......................................................................5
Preparation of budget which resolve cash flow problems..........................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
TASK 1
The best industry to start a new business is Food & Beverages Industry. Because, demand
of food & beverages are high in United Kingdom and demand of bakery products is also showing
an increasing trend in Food & beverages Industry. Thus, it is a good idea to establish a Waffle
business in London. So, “The Bake Waffles” is a new business related to Foods & Beverages
Industry and it is located at Blooms-berry Farmers Market, London, UK. The target population
of this business are children's, youngsters & students and it is also found that Blooms-beery is
most popular place of London recognised for tasty meal. Students loves to explore this market &
they like waffles the most thus, it is a good target for start-up. For operating this new business an
investment of £ 20,000 is made (Rezitis, and Kalantzi.2016). This business also operate its
temporary business at Food-fair & Farmer's market which is beneficial for company to expand
its brand image and for increasing its customer base.
Business Model of “The Bake Waffles” depends on target customers, demand, business
process & resources, marketing strategies and competitors. As target customers are students &
youngsters because it is Instagram-friendly food thus, youngsters are preferring it more. For
establishing Waffle business operator need to purchase a premise at area preferred & a license is
also needed for that. After that Interior designs are the most important factor which attracts
customers “The Bake Waffles” uses recycled products for designing its store which also
minimises cost.
“The Bake Waffles” offers different types of waffles and it divides it products in different
categories such as classic flavours, European Flavours and timeless flavours. European Flavours
includes fruit compotes, peanut butter and cheese cream whereas Classic flavours includes
maple, chocolate & honey syrup. Focus of company is to offer unique products and it produces
its goods according to UK standards. Best offering of “The Bake Waffles” is Naked Nutella
because it is most likes by youngsters and Waffles Sandwiches (Phillipov. 2016).
Competition in this area is increasing day by day due to increase in demand of bakery
products, beside that there is huge scope so, there is no threat of competitors. Current plan of
“The Bake Waffles” is to earn 5% profit in 1st year of its investment which is £ 20,000. Company
use social media sites to promote its business like Instagram, Facebook & Twitter because this
sites are most used by youngsters which are target customers of company.
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Name of Business is “The Bake Waffles”
Visual Identity- Various similar brands of “The Bake Waffles” are operating in Food
& Beverages Industry such as Belgium Waffles Company, Wafflemeister and Malted Waffle.
Each of brand has their visual identity which helps customers in recognising companies name &
products. Following are logo of similar brand of “The Bake Waffles”.
Source: (Belgian Waffle Logo. 2017)
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Illustration 1: Belgian Waffle
Illustration 2: Visual Indentity

Values- Values and Ethics helps business in enhancing its customer base & facilitate
smooth running of operations. “The Bake Waffles” establishes values on the basis of Social,
Environment and equality to promote its business & to enhance its brand image. This are
discussed below-
 Social Values- “The Bake Waffles” make waffles according to order received which
reduces Food Wastage in UK. Further, company also donate to homeless charity by
contributing 1£ per waffle and it also offers free waffles to homeless individuals of
London on every Saturday. This initiatives help company in promoting its brand and in
gathering more customers (Wilson.2016).
 Environmental Values- “The Bake Waffles” uses recycled products for designing its
stores and it offers food in containers which does not harm environment. Company
implement solar energy for preparing its food to protect the environment.
 Equality & Diversity Values- “The Bake Waffles” treats all its employees equally and
does not discriminate its employees on the basis of gender, religion and race.
TASK 2
Market Research- Market research helps new start-up to sustain in market and to develop its
business according to needs & expectation of customers. Following research are done by “The
Bake Waffles”-
 Primary Research- Primary research is one which is conducted for first time. Thus,
operators of “The Bake Waffles” conduct a primary research which includes what are the
target customers, taste & preference of customers, investment required, required
resources for producing waffles. It is carried out to know issues & questions related to
operations. This research is done by company for establishing its business and for finding
out that this start-up is beneficial for company or not.
 Secondary Research- Secondary Research is done from the past research and with the
help of past data. “The Bake Waffles” does secondary research by collecting feedback
from customers through online websites such as Instagram, Facebook & twitter and by
collecting direct feedback from customers this is related to taste & preference, prices and
quality. This research is conducted by business operator to know customers requirements
and with which company can improve quality of its services. This will further improve
customers, market share and profitability of business (Fredman.2016).
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 Quantitative Research- Quantitative research is done by “The Bake Waffles” by
collecting data from its customers. For Example- By asking questions such as How many
customers like Classic Waffles, How many customers use internet and Ratings for new
products. This research is conducted by company in producing & promoting its products
accordingly. Like 70% individuals use internet than it is easy for business to promote its
business through social media.
 Qualitative Research- Qualitative research is a type of market research conduct by “The
Bake Waffles” to know opinions, ideas, views and beliefs of customers and suppliers of
company. Company conducts this research because it helps business in improving its
quality by knowing customer's behaviour and opinion & behaviour of customers also
helps in setting up prices of its products & services (Brown.2017). Like if customers are
preffering law prices than company try to cut out unnecessary cost.
TASK 3
Websites are most popular way to promote business of “The Bake Waffles” and it a=is an
opportunity for company. Business managers has to used this opportunity by resolving problem
of discrimination & harassment in business. This all problems can be resolves by company if it
follows provisions of Equality & Safety Act, 2010 and Health & Safety Act governed by
government of UK.
Company has to follow all the guidelines of Health & Safety Act and Equality Act.
According to provisions of Health & Safety Act employer of “The Bake Waffles” makes sure
that working conditions & environment of business does not harm or affect health of its
employees and it also ensures safety of its employees. Whereas Equality Act helps company in
eliminating discrimination among employees working in store (Honggowati, and Probohudono.
2017).
“The Bake Waffles” should this opportunity because this is helpful for company in
expanding its business and market share. But, company has to promote its business on website
with the information that it is using all the guidelines of Health & safety act and Equality act.
“The Bake Waffles” also shows its values to the customers. This creates awareness among
customers that company is not doing any illegal behaviour with its employees. Company can
resolve this problems by treating its employees equally and by collecting fedback from its
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employees. Company also has to follow all its vision which helps company in increasing its
market share and brand image of busines.
TASK 4
Zero Hour Contract is a contract formed between employer and employees according to
which workers work when they want to work and when there is requirement also there is no
compulsion for workers to work for a specific hour on a daily basis. Employer also cannot force
them to work. Company call them whenever their is work or requirement. “The Bake Waffles” is
capable in making Zero hour contract with two of its employees.
Application of Equality & Diversity Law in selecting employees
Equality & Diversity Act, 2010- This Law is formed by government of UK in October, 2012 to
protect human rights. According to the provisions of this law “The Bake Waffles” has to treat all
its employees & workers equally and if company differentiate between its employees on the
basis on gender & religion than it has to pay penalties (Schaltegger, and Burritt.2017).
“The Bake Waffles” has to treat all its employee equally but now company is making
Zero hour contract with two of its employees which is not in accordance with provision of
Equality & Diversity Act. So, company has to select this workers without differentiating any of
its employees on the basis of religion, gender, race, belief and sexual orientation. Business
operator of “The Bake Waffles” has to pay penalty if it chooses this employees by violating any
of basis. For Example company made zero hour contract with employees which are of same
religion as owner than it is a violation of provision of Law of Equality & Diversity. Thus, waffle
company has to select its employees by following guidelines of this act.
Rights available to new employees
New employees of “The Bake Waffles” have few rights which are discussed below-
 New employee of “The Bake Waffles” have right of getting Statutory sick pay &
redundancy pay.
 Employees also have a right to get protection form unfair judgement and they can
demand for flexible work hours.
 Right of taking off in case of emergencies and also in case of any contingency situation
related to their dependent.
 New employees also can apply for leave related to maternity or paternity.
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 New Employees also no need to give long notice while ending of their employment
period.
 They also have right to get protection from unlawful behaviour done during employment.
TASK 5
Assets, Liabilities, Expenses & Gain in Business
Assets- Assets of “The Bake Waffles” includes Furniture, property, machinery (used
for baking), cash & inventory(raw material & packing items) used for manufacturing &
operating business. This all creates value of business and it helps company in meeting its
liabilities. If company has access assets than its liabilities than it is beneficial for the company
because it shows that companies financial performance is sound and it is generating profits.
Another benefits of access assets for business is it add ons to the brand image of “The Bake
Waffles”.
Liabilities- Liabilities are amount owned by company form some other parties such as
banks, creditors and suppliers. Liabilities of “The Bake Waffles” includes Loans and Creditors.
It is responsibility of waffle company to pay all its liabilities on time and if company is not able
to pay all its liabilities on time than it shows that company is in loss or value of its business is
depreciating. “The Bake Waffles” take loan for expansion of its business because company
cannot operate its whole business from its own capital. Whereas, creditors are individuals from
whom company purchase goods and money payable (Rezitis, and Kalantzi.2016).
Expenses- Expenses are amount spend by company in normal course of business for operating
its business smoothly. “The Bake Waffles” does various expenses such as wages paid to
employees, electricity, maintenance expenses and other auxiliary expenses.
Gains- Gain is when amount invested by company is increased. Gains of “The Bake Waffles” is
when there is an increase in value of assets or sale price of products is higher than amount
invested in manufacturing process. Their is a gain in company when demand of products is high
and when there is an increase in sale.
Preparation of budget which resolve cash flow problems
“The Bake Waffles” prepare its budget in this that it has enough cash for paying its
liabilities any time. Company has sufficient cash in its budget so that it can pay or make
expenses any time it wants and it also helps company in smooth functioning of its business
(Phillipov.2016).
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Budget
Total Assets ( £ 17500) Cash £ 3000
Inventory £ 4000
Furniture £ 2500
Machinery £ 3500
Property £ 4500
Expenses £ 2500
Liabilities £ 1500
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REFERENCES
Books and Journals
Rezitis, A.N. and Kalantzi, M.A., 2016. Investigating technical efficiency and its determinants
by data envelopment analysis: An application in the Greek food and beverages
manufacturing industry. Agribusiness. 32(2). pp.254-271.
Phillipov, M., 2016. Using media to promote artisan food and beverages: insights from the
television industry. British food journal. 118(3). pp.588-602.
Wilson, F.M., 2016. Women in management in the United Kingdom. In Women in management
worldwide (pp. 109-120). Gower.
Fredman, S., 2016. Substantive equality revisited. International Journal of Constitutional
Law. 14(3). pp.712-738.
Brown, J., 2017. Discriminatory experiences of women police. A comparison of officers serving
in England and Wales, Scotland, Northern Ireland and the Republic of Ireland. In Women
Police (pp. 105-125). Routledge.
Honggowati, S. and Probohudono, A.N., 2017. Corporate governance and strategic
management accounting disclosure. Indonesian Journal of Sustainability Accounting
and Management. 1(1). pp.23-30.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Online
Belgian Waffle Logo, 2017. [Online]. Available through: <https://www.google.com/search?
q=LOGO+OF+BELGIUM+WAFFLE&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjbusbw
yMXhAhVICqYKHcIwBkMQ_AUIDigB#imgrc=tspP51_-MK>
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