Managing Finance & HR for Sustainable Business Success

   

Added on  2023-01-17

11 Pages2024 Words52 Views
MANAGING FINANCE &
HR FOR SUSTAINABLE
BUSINESS SUCCESS
Managing Finance & HR for Sustainable Business Success_1
EXECUTIVE SUMMARY
The analysis will be made for the new venture of Sky Cafe i.e. Twin Cafe and the tools such as
variance analysis will guide regarding what decision should be taken by the management of the
cafe.
Managing Finance & HR for Sustainable Business Success_2
Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Objective of preparing a budget...................................................................................................4
Variance Analysis for July...........................................................................................................5
Concern for management.............................................................................................................7
Suggestion for Café .....................................................................................................................8
REFERENCES................................................................................................................................1
Managing Finance & HR for Sustainable Business Success_3
INTRODUCTION
Sky Cafe, that operates near the London Gatwick Airport is the only branch and operates as an
independent cafe shop since 2016. Their unique quality is that they serve the local delicacies
with home made taste which acts as a competitive advantage for the cafe and helps them in
earning the added benefits despite being a small cafe. In this report, analysis has been made for
their new cafe i.e. Twin Cafe.
MAIN BODY
Objective of preparing a budget
In order to achieve the business goals and objectives of the company, every business
strives to develop those policies and methods that would help them in achieving those designated
goals. Budget formulation involve estimation of the probable expenses that might be incurred
and the revenues (Kouvelis, Pangm & Ding, 2018). These help in ascertaining that how well an
organisation is capable of achieving the objectives in the company. The different objectives of
budget preparation for Sky Cafe is: Providing Structure: development of the budget will help the management of the Sky
Cafe in ascertaining the correct direction in which the company should go and acts as a
guidance. Further, it acts as a planning tool and helps in developing a structure regarding
the manner in which activities are to be performed in the cafe and also shows how much
expected income and expenditure will take place. Cash Flow Prediction: Since Sky Cafe is basically located near the Airport, the sales are
usually seasonal and cannot be predicted in a definite manner. In such lucrative
businesses, preparing budgets is of extreme assistance since it helps in determining what
will be the income i.e. the cash flows that the cafe would be able to earn in the coming
period are forecasted in an accurate manner. Resource Allocation: The budget preparation helps in identifying which head will require
how much resources and under what category of expenditure. Therefore, the Sky Cafe
would be able to determine what would be the approximate resource requirement for
different departments and activities of the Twin Budget thus determining correct and
justified amount of resources (Chiu & Choi, 2016). This further assists in avoiding any
unnecessary expenditure in the Cafe and ensures that different functions have adequate
resources.
Managing Finance & HR for Sustainable Business Success_4

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