Financial Decision Making

FINANCIAL DECISION
MAKING

Contents
EXECUTIVE SUMMARY.................................................................................................................................3
PART 1: Industry Review..............................................................................................................................3
Top line review of current UK coffee house industry..............................................................................3
PART 2: Business performance analysis:......................................................................................................3
2.1 Analysis of profit and loss account....................................................................................................3
2.2 Statement of financial position..........................................................................................................5
2.3 Statement of cash flow......................................................................................................................7
PART 3: Investment Appraisal...................................................................................................................10
3.1 (a) Management Forecast................................................................................................................10
3.1 (b) Investment Appraisal.................................................................................................................10
REFERENCES..............................................................................................................................................14

EXECUTIVE SUMMARY
This report on the project explains the concept of financial decision making over the term.
Every organisation base on the financial activities that supports them to operate activities. The
staff members of finance department of Starbucks are analyzed by the CFO to know actual
position of business as well as attractiveness of a business. Due to the output of the financial
business; over the first part of the project report various types of financial results are evaluated.
In addition to the expenditure assessment, different kinds of techniques including payback
duration, accounting return rate and net present value are used in the second part of the
investment text. So it can be proposed to Starbucks group current discussion that they will buy
the limited company Roasted. This is so because the bulk of their comments display positive
outcomes.
PART 1: Industry Review
Top line review of current UK coffee house industry
In the UK dimension, coffee industry houses research is as followed
• Coffee bars business increased by 7.9 percent revenue throughout 2018.
• Undertakings with the highest share of the market in the Rest of the UK are Costa Limited, Pret
A General manager, Caffe Nero Limited among many others.
• The sector's main advantage is to extend its market through overseas markets like Vietnam,
India, where the populace is greater (Porter and Norton, 2012).
• This sector also faces a variety of obstacles, such as the emergence of more substitute
beverages contributing to a decrease in consumer interest to espresso.
PART 2: Business performance analysis:
2.1 Analysis of profit and loss account
The profit and loss account report is a type of report that includes total profit and loss
information for a specific period of time (Huston, Finke and Smith, 2012). In addition, the main
goal of this argument is to determine the financial condition of companies including the aid of
overall income and expenses. Based on Roast limited corporation's allocated profit and loss