Prepare Monitor and Budget : Assignment
Added on 2020-02-24
15 Pages3522 Words28 Views
Running head: PREPARE AND MONITOR BUDGETPrepare and Monitor BudgetName of the StudentName of the UniversityAuthor NoteScope and Objective
1PREPARE AND MONITOR BUDGETSCafé Paradiso is a café, which is situated at a very convenient place, which will, is avery good for starting a café. Brendan and Margaret Elliot want to start a newbusiness. This café is located at a Victoria Garden shopping centre which is has agreat number of passing shoppers. As there are very small number of café availablenear this location so this is going to be a great opportunity for them to start a business.They are well experienced with the café business, as they have successfully operated anumber of cafes before, so they are not new to the business and know the details ofthe business. The start of this new café will increase their market share from 35%,which they hold previously to 40% within a year time (Altinay, Paraskevas and Jang,2015).When one is running a business, it is easy to be bogged down in day-to-day problemsand forget the bigger picture. However, successful businesses invest time to createand manage budgets, prepare and review business plans and regularly monitor financeand performance.BudgetingStructured planning can make all the difference to the growth of your business. It willenable you to concentrate resources on improving profits, reducing costs andincreasing returns on investment.In fact, even without a formal process, many businesses carry out the majority of theactivities associated with business planning, such as thinking about growth areas,competitors, cash flow and profit.Converting this into a cohesive process to manage your business' development doesnot have to be difficult or time-consuming. The most important thing is that plans aremade; they are dynamic and are communicated to everyone involved.
2PREPARE AND MONITOR BUDGETSBenefits from the Budgeting PlanThere are a number of benefits of drawing up a business budget, including beingbetter able to:1.To manage your money effectively2.To allocate appropriate resources to projects3.To monitor performance4.To meet the objectives5.To improve the decision-making6.To identify problems before they occurand such as the needto raise finance or cash flow difficulties7.To plan for the future8.To increase staff motivationStaff Re-organizationBrandon has knowledge in the past of working as a chef and well experienced in thefield. He will work actively in the café and will contribute to the fullest. MargaretElliot has a degree in the hospitality and has experience in that field. Both of themwill contribute in the business and apart from that, they have agreed to retain two staffmembers who used to work in this café previously so that they could maintainrelationship with the old customers. Other than, this they have planned to hire fournew staff amongst them two will work on part time basis and two will workpermanently (Armstrong and Taylor, 2014).As the café is under a transition phase, it is very important to retain the old customers.The old staff members will play a key role in doing the work. The members have to
3PREPARE AND MONITOR BUDGETSunderstand the objective of the business and act accordingly. The objective of thecompany is to provide high quality coffee and other meals. The quality of serviceshould be the highest priority for the café and it emphasizes on the satisfaction of thecustomers (Berthelsen et al, 2014).The staff members should be very service oriented and they should maintain theservice quality of the café. The members should provide the best service qualitypossible. They should try to analyze the need and want of the customers veryaccurately and render service adequately. They should be given proper training and beexplained with the objective of the company in detail so that they could align theirservice accordingly (Blay-Palmer and Knezevic, 2015.). As the café is going througha transition phase, it is a very important time for the business. During this time, theowners and most of the staff members are changing while retaining only two of theold staff. During this time, the café will try to retain its old customer, whereas makingnew customers. The customers can only be retained through quality product andquality services. Therefore, the staff members should act accordingly. The aim of thebusiness should always be kept in mind and the actions are to be conductedaccordingly (Buttigieg et al, 2016).Every member should be equally divided with particular task and it should be madeaccountable for that particular task. In addition, regular assessment should be carriedout about the performance of their work (Chia and Round, 2015).Impact of marketing initiatives and campaignThe company wants to successful transition of the business from the previous ownerto the current owner and wants to retain their old customer base. They at increasingtheir market share in the industry, which previously was 35% to 40% so that theyhave a better grip in the industry. They also wants to generate a before tax margin of20 % (Cokins, 2017).The company in order to achieve their objective is taking some marketing measuressuch as they have retained two of the key staff members for the previously running
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Budgeting for Twin Rivers Cafélg...
|7
|1920
|64
Human Resource Management: Budgeting and Variance Analysislg...
|9
|2130
|21
Budget Preparation and Variance Analysis for Twin Rivers Cafélg...
|8
|2044
|32
Meeting with Operations Managerlg...
|18
|2233
|16
Undertake Project Work: Coffeeville Cafe Project Planlg...
|18
|4336
|451
Project Management Tools Assesmentlg...
|12
|2114
|13