Business Management and Strategic Management

Running Head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Author Note

1BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Financial Analysis of the business.............................................................................................2
Analysis of cost of Venture capital and its sources....................................................................4
Business Current Financial position and Project’s future estimates..........................................5
Options for capitalizing the business.........................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................7

2BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Introduction
The aim of this assignment is the analysis of the business and strategic management
of the entrepreneurial business of the Frank’s All-American BarBeQue. It has operated for
the years in the region of the Southern Connecticut with the tradition of providing traditional
food at the reasonable and fair prices in the atmosphere of friendly family. The company
plans for opening second restaurant in Darien, Connecticut and revamping the production of
sauces and increases the sales in future (Frank 2017). Hence, for this, analysis will be to
understand the costs of maintaining business from the star-up expenses to operating capital
with the analysis of the ways of determining costs of venture capital and its sources. In
addition, current and future financial projection will be done. Moreover, the options for
investors and partners for capitalizing the business will be discussed.
Financial Analysis of the business
The Profitability ratio of the company is calculated in terms of operating profit margin
ratio. Operating profit margin ratio is calculated by dividing operating profit (Gross profit
plus Operating Expenses) by revenue. It measures the percentage of a company’s profit that it
has produced from its operations. The operating profit margin ratio during the year 2008-
2010 shows that it is consistency profitability of the company (Satryo, Rokhmania and
Diptyana 2017).
Operating Profit Margin 2008 2009 2010
Gross Margin 851,557.00$ 909,358.00$ 943,259.00$
Operating Expenses 542,080.00$ 577,315.00$ 600,408.00$
Revenue 1,637,610.00$ 1,696,564.00$ 1,793,268.00$
Formula 19% 20% 19%
Profitability Ratio
The efficiency ratio of the company is calculated by the assets turnover ratio. This
ratio is helpful in measuring the value of the company in terms of its sales relative to the