Financial Management and Leadership

FINANCE IN
MANAGEMENT AND
LEADERSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Overview................................................................................................................................1
Vision and Mission.................................................................................................................1
FINANCIAL PLAN.........................................................................................................................2
Breakeven Analysis................................................................................................................2
Projected Profit and Loss........................................................................................................4
Projected Cash flow................................................................................................................5
Projected Balance sheet..........................................................................................................7
Financial ratios.......................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Expansion and developing newer ideas are main perceptions which have been used by
various organisations with motive of creating new opportunities as well as Improving business
on new platform. It enhances the operational activities as well as performance of entity in large
scale. In the present report there has been discussion based on expanding the McDonald’s
business in Coventry High Street. Along, with this there will be discussion based on various
financial requirements and changes in operations which can be needful in forecasting cash
requirements.
Overview
McDonald’s has been known as world’s largest food chain restaurant which serves in
many countries or locations. The satisfaction it brings to consumers are based on convenience in
cost as well as quality. The large varieties of burgers as well as various fast food dishes has been
presented by McDonald’s with considering proper quality of products (Chen and et.al., 2018). In
approach with same firm plans to make expansion of its operations which comprises of various
processes such as serving varieties of burgers, beverages and various fast food dishes.
Managerial professionals have been thought about making expansion of operations which
will be helpful in leading firm on right direction. They have selected Coventry High street as a
new location which has been analysed as the most convenient and profitable area for
McDonald’s to have successful business (Easton and Monahan, 2016). The motive of industry is
for serving students, workers and local citizens in location with good food quality as well as with
lower prices.
Vision and Mission
In terms of analysing objectives and motive of business on which it can be said that there will
be need of having adequate operational increments as well as development of brand image in the
market (Ruginski and et.al., 2016). Considering the most convenient prices which will be
charged by McDonald’s on its food and beverages with the motive of having higher sales in each
period. Therefore, expansion of operations will lead firm in widening operational area as well as
generating adequate revenue through activities. There has been various objective which have
been undertaken by the professionals such as:
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 Developing good consumer’s relationship which will be beneficial in retaining them as
well as rising the level of sales in each year.
 Increasing profitability of firm that will be adequate and helpful as per meeting the goals
as well as retaining earning for better financial strength.
 Satisfying the large number of buyers with convenient costs, prices and location of
operations.
FINANCIAL PLAN
As per making qualitative development and rise in the operational level in business there
will be need of making effective operational efficiency and gains (Xu and Tang, 2015). It
comprises execution of all the transactional activities as well as management of funds in the
right direction that will be helpful in managing issues and various activities of McDonald’s.
Thus, as per analysing the feasibility and capabilities of firm in meeting the debts on the right
time there will be estimation of various financials in upcoming 3 years. However, with respect to
analyse strength of firm there will be determination of break even analysis, balance sheet,
income statement, cash flow statement and financial analysis.
Breakeven Analysis
It is the main difference between demand incurred in a market from a particular brand or
product as well as efficiency of business in supplying such products. Thus, Goods which are
aimed by McDonald’s in relation with selling in market, weekly, monthly and annually has been
analysed (Zeff, 2016). However, this estimation has been based on determining the selling price
per unit, variable as well as fixed costs. The estimation of data set can be analysed for the period
2018, 2019 and 2020.
Break-Even analysis (Burgers)
Particulars Formula 2018 (In £)
2019
(In £)
2020
(In £)
Selling price per unit 10.5 10.5 10.5
Variable cost per unit 0.3 0.2 0.1
Contribution per unit
Selling price per unit -
variable cost per unit 10.2 10.3 10.4
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