Financial Decision Making

Financial Decision Making

Contents
Contents...........................................................................................................................................2
EXECUTIVE SUMEERY...............................................................................................................1
TASK 1............................................................................................................................................1
Coffee house industry review......................................................................................................1
TASK 2............................................................................................................................................2
2.1 Statement of Profit or Loss....................................................................................................2
2.3 Statement of Cash Flows.......................................................................................................8
TASK 3............................................................................................................................................8
3.1 Investment Appraisal.............................................................................................................8
Sources of Finance.......................................................................................................................9
Equity...........................................................................................................................................9
REFRENCES...................................................................................................................................9

EXECUTIVE SUMEERY
Financial decision making is a process in which manager take decision regarding expansion
of their business through acquiring new machines, investment or take loan , or introduce
new product in market or not. For this purpose they use capital budgeting technician. In this
report a brief study of procedure of decision making has been describe. Roast Limited has
been taken, this company is situated in London and it provides coffee service to various
market areas in UK. This report show view of coffee industry of UK and it also includes
how ratio analysis, cash flow technique help in analysing business performance. And uses
of NPV, payback period and average accounting method used in taking decision reading
expansion of business units.
TASK 1
Coffee house industry review
Coffee house industry includes business organizations that provides primary services of
various types of coffee to their customers. It includes coffee shop, cafe, and coffeehouse.
Their range is start from small shops to large business organization. In United Kingdom
coffee in one of the most utilized product. Various types of coffee serve by Coffee houses
which included, espresso, cappuccino, late in UK. The increasing demand of coffee
takeover the tea place in UK. Public become more addicted to coffee.
These industries deals with coffee, food and other beverages products, they retailing coffee,
food and non alcoholic beverages at their shop.
UK has become 7th biggest coffee importer county in world, the companies sell coffee
through coffeehouse supply chain (Chen, .2018).
In UK, Costa limited, Pert A Manager limited, Starbucks Coffee Company Limited and Cafe
Nero Group Limited are hold the largest market area of the country.
It has been observed that more than 16199 shops are provided coffee services in market, in
theses organizations, 101034 employees are presently provided their services. Coffee
industry cover 6 billion market area of United Kingdom. Costa covers the highest number of
small coffee shops in UK , The company covers largest are of the Coffee Starbucks also
given toughest competitions, it is non British organization still te company take higher
number of coffee shop as company to other multinational coffee organization of UK,
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