Roof Top Café: Business Plan
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AI Summary
The business plan for Roof Top Café includes an overview, business structure, key personnel, products and services, risk management, legal considerations, sustainability plan, market research, market targets, PESTEL analysis, SWOT analysis, competitors analysis, and advertising and sales. The café will be opened in Melbourne and will target customers between the ages of 25-30. The main competitors are Kinfolk, Axil Coffee Roasters, Seven Seeds, and Frankie Walter Peta.
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ROOFTOP CAFÉ: BUSINESS
PLAN
PLAN
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BUSINESS PLAN SUMMARY
According to Ekanem (2017), a business plan can be defined as the written document which
specifies details relating to the manner in which company’s objectives will be accomplished
relating to sustaining as a viable business. Further, it provides the information to the reader
regarding what, where, why and how the company will attain its goals as well as the
individuals involved in same. (Cole, 2014). Present report emphasizes on the business plan of
Roof Top Café. The report comprises three essential segments of a business plan, i.e.
Business, Market and Financial perspectives. The fundamental purpose of the current
business plan is to assess the business as whole comprehensively and to make contemplation
regarding the areas of issues.
With the assistance of plan owner or executive can get the analysis of every factor of
business, it also discloses problems which were obscured previously along with areas from
which the profit can be generated. It can be concluded from Porter Analysis that café will
face tough competition from existing café and restaurant. Further, the threat of market entry
and substitute is too high in this case as it not that tough to initiate café business. The main
strength of Roof Top Café is the availability of best view and best quality of food and service.
The financial perspectives of café represent that it is going to have an increasing trend of
sales and appropriate profits. Further, as management is keeping a watch on all the operation
on a continuing basis, thus it will succeed in resolving the issue at its initial stage and will be
able to sustain for a long period.
According to Ekanem (2017), a business plan can be defined as the written document which
specifies details relating to the manner in which company’s objectives will be accomplished
relating to sustaining as a viable business. Further, it provides the information to the reader
regarding what, where, why and how the company will attain its goals as well as the
individuals involved in same. (Cole, 2014). Present report emphasizes on the business plan of
Roof Top Café. The report comprises three essential segments of a business plan, i.e.
Business, Market and Financial perspectives. The fundamental purpose of the current
business plan is to assess the business as whole comprehensively and to make contemplation
regarding the areas of issues.
With the assistance of plan owner or executive can get the analysis of every factor of
business, it also discloses problems which were obscured previously along with areas from
which the profit can be generated. It can be concluded from Porter Analysis that café will
face tough competition from existing café and restaurant. Further, the threat of market entry
and substitute is too high in this case as it not that tough to initiate café business. The main
strength of Roof Top Café is the availability of best view and best quality of food and service.
The financial perspectives of café represent that it is going to have an increasing trend of
sales and appropriate profits. Further, as management is keeping a watch on all the operation
on a continuing basis, thus it will succeed in resolving the issue at its initial stage and will be
able to sustain for a long period.
Table of Contents
The Business..............................................................................................................................5
Overview................................................................................................................................5
Business Structure..................................................................................................................5
Organization Chart.................................................................................................................6
Key Personnel........................................................................................................................6
Products and Services............................................................................................................7
Innovation and Insurance.......................................................................................................8
Risk Management...................................................................................................................8
Legal Considerations..............................................................................................................8
Sustainability Plan..................................................................................................................9
The Market.................................................................................................................................9
Market Research.....................................................................................................................9
Market Targets.......................................................................................................................9
Environmental/ Industry Analysis..........................................................................................9
SWOT Analysis...................................................................................................................11
Competitors Analysis (5 Porters Analysis)..........................................................................11
Advertising and Sales...........................................................................................................12
The Future................................................................................................................................12
Vision statement...................................................................................................................12
Mission statement.................................................................................................................12
Goals/objectives...................................................................................................................12
Action plan...........................................................................................................................13
The Finance s...........................................................................................................................14
Key objectives & financial review.......................................................................................14
Assumptions.........................................................................................................................15
The Business..............................................................................................................................5
Overview................................................................................................................................5
Business Structure..................................................................................................................5
Organization Chart.................................................................................................................6
Key Personnel........................................................................................................................6
Products and Services............................................................................................................7
Innovation and Insurance.......................................................................................................8
Risk Management...................................................................................................................8
Legal Considerations..............................................................................................................8
Sustainability Plan..................................................................................................................9
The Market.................................................................................................................................9
Market Research.....................................................................................................................9
Market Targets.......................................................................................................................9
Environmental/ Industry Analysis..........................................................................................9
SWOT Analysis...................................................................................................................11
Competitors Analysis (5 Porters Analysis)..........................................................................11
Advertising and Sales...........................................................................................................12
The Future................................................................................................................................12
Vision statement...................................................................................................................12
Mission statement.................................................................................................................12
Goals/objectives...................................................................................................................12
Action plan...........................................................................................................................13
The Finance s...........................................................................................................................14
Key objectives & financial review.......................................................................................14
Assumptions.........................................................................................................................15
Start-up costs........................................................................................................................15
Balance Sheet Forecast........................................................................................................17
Profit and loss forecast.........................................................................................................17
Provisional Cash Flow Statement........................................................................................18
Break-even analysis.............................................................................................................19
References................................................................................................................................22
Balance Sheet Forecast........................................................................................................17
Profit and loss forecast.........................................................................................................17
Provisional Cash Flow Statement........................................................................................18
Break-even analysis.............................................................................................................19
References................................................................................................................................22
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THE BUSINESS
Overview
The business idea which has been adopted in the present case is of the hospitality industry
that is the café named as Rooftop Cafe. The café has not yet been registered thus proposed
name of the business has been provided. Café will be opened next year near Christmas in
Melbourne.
Business Structure
The business will be initiated through two partners. Thus the partnership business structure
will be followed in order to operate the transactions of business. The partners of “Rooftop
Café” are Mr Adam and Mr Smith. Both the partners are having appropriate experience in the
hospitality industry as they have been part of this industry from the last ten years. Both the
partners have worked in different know cafés of Australia. Mr Adam is known for his
management skills,and on the other hand,Mr Smith is known for being a master of tasting and
cooking. Even Mr Smith has also been awarded as best chef in the restaurant in which he
worked previously.
Overview
The business idea which has been adopted in the present case is of the hospitality industry
that is the café named as Rooftop Cafe. The café has not yet been registered thus proposed
name of the business has been provided. Café will be opened next year near Christmas in
Melbourne.
Business Structure
The business will be initiated through two partners. Thus the partnership business structure
will be followed in order to operate the transactions of business. The partners of “Rooftop
Café” are Mr Adam and Mr Smith. Both the partners are having appropriate experience in the
hospitality industry as they have been part of this industry from the last ten years. Both the
partners have worked in different know cafés of Australia. Mr Adam is known for his
management skills,and on the other hand,Mr Smith is known for being a master of tasting and
cooking. Even Mr Smith has also been awarded as best chef in the restaurant in which he
worked previously.
Organization Chart
Figure 1: Organization Chart of Roof Top Cafe
Key Personnel
The key personnel of the café will be the two partners, general manager and assistant
managers. The strategies and policies will be developed by the partners. Further, they will be
discussed with managers and changes will be made accordingly. The staff which will be part
of the café will be as follows:
Executives Quantum
Chief Executives (GM) 1
Subordinate managers 2
Kitchen manager 1
Bartenders 1
Servers 5
Bar Backs 1
Figure 1: Organization Chart of Roof Top Cafe
Key Personnel
The key personnel of the café will be the two partners, general manager and assistant
managers. The strategies and policies will be developed by the partners. Further, they will be
discussed with managers and changes will be made accordingly. The staff which will be part
of the café will be as follows:
Executives Quantum
Chief Executives (GM) 1
Subordinate managers 2
Kitchen manager 1
Bartenders 1
Servers 5
Bar Backs 1
Chef and helpers 3
Prep 2
Dishwashers 2
Appropriate guidance will be provided to employees who will comprise the manner of
dealing with issues relating to consumers, welcoming customers and providing other services.
Meetings will be conducted at reasonable periods in order to discuss the issues faced by
management.
Products and Services
The following products and services will be provided by Rooftop Café:
Products:
Mains: Rooftop Café Breakky (a speciality of the cafe), Seafood Platter, Chicken
Parmigiana etc.
Starter: Garlic Bread, Natural Oysters, Tomato Salad.
Wraps: Smoked Salmon, Falafel
Burger: Grilled vegetarian Burger, Chicken Burger, Beef Burger.
Pizza: Margherita, Garlic Prawn, BBQ Chicken
Pasta: Risoto, Spaghetti Marinara, etc.
Salad: Moroccan Lamb Salad, Chick Quinoa Salad
Beverages:
o Cold Drinks: All flavour
o Wine: White wine and Red Wine.
o Cocktails: Mojito, Dalquiri, Aperol Spritz.
o Bear.
o Tea and Coffee.
Desserts
Services: Roof Top Café will also provide services relating to the organization of small
gatherings, parties and events. Special offers will be provided along with the additional order
in order to provide an enhanced level of customer level satisfaction. It will also provide
growth to the business.
Prep 2
Dishwashers 2
Appropriate guidance will be provided to employees who will comprise the manner of
dealing with issues relating to consumers, welcoming customers and providing other services.
Meetings will be conducted at reasonable periods in order to discuss the issues faced by
management.
Products and Services
The following products and services will be provided by Rooftop Café:
Products:
Mains: Rooftop Café Breakky (a speciality of the cafe), Seafood Platter, Chicken
Parmigiana etc.
Starter: Garlic Bread, Natural Oysters, Tomato Salad.
Wraps: Smoked Salmon, Falafel
Burger: Grilled vegetarian Burger, Chicken Burger, Beef Burger.
Pizza: Margherita, Garlic Prawn, BBQ Chicken
Pasta: Risoto, Spaghetti Marinara, etc.
Salad: Moroccan Lamb Salad, Chick Quinoa Salad
Beverages:
o Cold Drinks: All flavour
o Wine: White wine and Red Wine.
o Cocktails: Mojito, Dalquiri, Aperol Spritz.
o Bear.
o Tea and Coffee.
Desserts
Services: Roof Top Café will also provide services relating to the organization of small
gatherings, parties and events. Special offers will be provided along with the additional order
in order to provide an enhanced level of customer level satisfaction. It will also provide
growth to the business.
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Innovation and Insurance
Roof Top Café will indulge innovative concepts in the product as well as services. For
instance, the products provided by the café will be transformed in accordance with the choice
of the customer. Additional flavours will be provided so that customer can have drinks and
other eatables of their choice. Moreover, customized toppings option will also be available so
that customer has a feeling that they are prioritized and satisfied to a significant extent. While
organizing small gatherings and parties also management will assure that
Risk Management
With accordance to Wolke(2017), it plays a very important role in the survival of the
business,especially for restaurants and cafes. The reason behind same is that there are
chances of catching fire in the kitchen. For the same common safety measures will be
developed in Roof Top Café; which are introducing sprinkler systems and monitored fire
direction alarms. Further, checking fire extinguishers on a regular basis will be done along
with providing training to employees relating to the manner of utilizing fire extinguisher.
Along with this, there is automatic temperature fitting cut-out switches to stop deep fryer
appliances from overheating. In order to do the same, deep fryers are fixed with separate
exterior cut-out switch which is non-adjustable along with apparatus which can be returned
manually. Moreover, the cut-out switches detach the deep fryer from energy supply when
cooking oil or fat arrives at the maximum temperature fixed. Fryers are checked monthly by
an expert in order to avoid accidents in the cafe.
Legal Considerations
Legal considerations of Rooftop cafe are zoning regulations which define the kind of
business that an owner can have in a specific location. Further, Cramer (2017) specifies that
zoning potential for a property comprises residential, industrial, leisure, manufacturing and
agricultural. Moreover, the type of business structure is also important for opening a new
business since it influences the constituents for example financial responsibilities are
allocated, comprising taxes and debt(Glassie, 2016). It is significant for the cafe to be
licensed by controlling jurisdictions, whether it is in the city, nation or state. Thus same will
be compiled by the café. Further, all the regulations and laws will comply in order to avoid
fines and other penalties relating with same.
Roof Top Café will indulge innovative concepts in the product as well as services. For
instance, the products provided by the café will be transformed in accordance with the choice
of the customer. Additional flavours will be provided so that customer can have drinks and
other eatables of their choice. Moreover, customized toppings option will also be available so
that customer has a feeling that they are prioritized and satisfied to a significant extent. While
organizing small gatherings and parties also management will assure that
Risk Management
With accordance to Wolke(2017), it plays a very important role in the survival of the
business,especially for restaurants and cafes. The reason behind same is that there are
chances of catching fire in the kitchen. For the same common safety measures will be
developed in Roof Top Café; which are introducing sprinkler systems and monitored fire
direction alarms. Further, checking fire extinguishers on a regular basis will be done along
with providing training to employees relating to the manner of utilizing fire extinguisher.
Along with this, there is automatic temperature fitting cut-out switches to stop deep fryer
appliances from overheating. In order to do the same, deep fryers are fixed with separate
exterior cut-out switch which is non-adjustable along with apparatus which can be returned
manually. Moreover, the cut-out switches detach the deep fryer from energy supply when
cooking oil or fat arrives at the maximum temperature fixed. Fryers are checked monthly by
an expert in order to avoid accidents in the cafe.
Legal Considerations
Legal considerations of Rooftop cafe are zoning regulations which define the kind of
business that an owner can have in a specific location. Further, Cramer (2017) specifies that
zoning potential for a property comprises residential, industrial, leisure, manufacturing and
agricultural. Moreover, the type of business structure is also important for opening a new
business since it influences the constituents for example financial responsibilities are
allocated, comprising taxes and debt(Glassie, 2016). It is significant for the cafe to be
licensed by controlling jurisdictions, whether it is in the city, nation or state. Thus same will
be compiled by the café. Further, all the regulations and laws will comply in order to avoid
fines and other penalties relating with same.
Sustainability Plan
It is stated by Gordon and Brezinski(2016),that, the sustainability plan of an organization
comprises the development of strategies in order to sustain for a longer period. The
sustainability plan of Rooftop cafe mainly emphasizes planning relating to the availability of
types of product and services. Thus, the focus will be made on cooking the food items
according to the type of season, for example, offering more types of soups in the winter
season. Preparing the menu according is significant to attract the consumers. Further,
Morden(2016) asserts that sustainability does not end with the menu. So, required training
will be provided to the employees regarding the manner of treating the consumers. Since the
finest way of transferring information to consumers is through employees. Along with this,
the cafe will break the objectives in two main parts that are which are to be achievable in
short period of time and which are to be achievable in future so that it becomes easy to attain
pre-determined objectives.
THE MARKET
Market Research
Market research has been accomplished by Roof Top Café in order to assess the existing size
and latest trends and practices in the hospitality industry. Further, the target customer (or
target groups of customers) has been analyzed for ascertaining their choice and taste. Even
the extent of the competitiveness and future threats have been assessed so that planning or
strategy can be developed in order to reduced the negative impact of expected threat.
Market Targets
The main market target is Melbourne which is the hub of cafes and restaurants. Further, the
customer target group of Rooftop Cafe is the individuals of age between 25-30. The reason
behind the same is since people of this age group are very busy in their work. Thus they are
usually outside and not at homes. Further, as per the study of Jeston (2014), this type of food
is liked by youth generation mostly. Thus, the same have been targeted significantly.
Moreover, the main competitors of Rooftop Cafe are Kinfolk, Axil Coffee Roasters, Seven
Seeds and Frankie Walter Peta. In order to attract the consumers, it is very important to assess
the services provided by competitors so that the business can give more superior services.
Environmental/ Industry Analysis
PESTEL Analysis
It is stated by Gordon and Brezinski(2016),that, the sustainability plan of an organization
comprises the development of strategies in order to sustain for a longer period. The
sustainability plan of Rooftop cafe mainly emphasizes planning relating to the availability of
types of product and services. Thus, the focus will be made on cooking the food items
according to the type of season, for example, offering more types of soups in the winter
season. Preparing the menu according is significant to attract the consumers. Further,
Morden(2016) asserts that sustainability does not end with the menu. So, required training
will be provided to the employees regarding the manner of treating the consumers. Since the
finest way of transferring information to consumers is through employees. Along with this,
the cafe will break the objectives in two main parts that are which are to be achievable in
short period of time and which are to be achievable in future so that it becomes easy to attain
pre-determined objectives.
THE MARKET
Market Research
Market research has been accomplished by Roof Top Café in order to assess the existing size
and latest trends and practices in the hospitality industry. Further, the target customer (or
target groups of customers) has been analyzed for ascertaining their choice and taste. Even
the extent of the competitiveness and future threats have been assessed so that planning or
strategy can be developed in order to reduced the negative impact of expected threat.
Market Targets
The main market target is Melbourne which is the hub of cafes and restaurants. Further, the
customer target group of Rooftop Cafe is the individuals of age between 25-30. The reason
behind the same is since people of this age group are very busy in their work. Thus they are
usually outside and not at homes. Further, as per the study of Jeston (2014), this type of food
is liked by youth generation mostly. Thus, the same have been targeted significantly.
Moreover, the main competitors of Rooftop Cafe are Kinfolk, Axil Coffee Roasters, Seven
Seeds and Frankie Walter Peta. In order to attract the consumers, it is very important to assess
the services provided by competitors so that the business can give more superior services.
Environmental/ Industry Analysis
PESTEL Analysis
The PESTEL analysis tool is used by an organization to analyze the macro – environment
factors which provide the necessary information in order to ascertain the areas which are
required to be focused in an essential manner:
Political
Government Regulations relating to restaurant business are
to comply on a mandatory basis.
Main emphasis should be made on assessing the approval
relating to serving alcohol.
Economical
Inflation
Volatility in currency rate.
Social
Current Trends of Hospitality Industry
Changing choice of the taste of people.
Significance of culture.
Technological
Indulging of innovative ideas in operations of the business.
Acknowledging orders through an online portal.
Environmental
Provision and regulations related to environmental law
(Bell, Bryman and Harley, 2018).
Adopting Recycling procedure to the extent possible.
Legal Compliance with Licensing requirement.
Regulations relating to serving alcohol.
factors which provide the necessary information in order to ascertain the areas which are
required to be focused in an essential manner:
Political
Government Regulations relating to restaurant business are
to comply on a mandatory basis.
Main emphasis should be made on assessing the approval
relating to serving alcohol.
Economical
Inflation
Volatility in currency rate.
Social
Current Trends of Hospitality Industry
Changing choice of the taste of people.
Significance of culture.
Technological
Indulging of innovative ideas in operations of the business.
Acknowledging orders through an online portal.
Environmental
Provision and regulations related to environmental law
(Bell, Bryman and Harley, 2018).
Adopting Recycling procedure to the extent possible.
Legal Compliance with Licensing requirement.
Regulations relating to serving alcohol.
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SWOT Analysis
Strengths
The best quality of food
Best service
Awesome Top View
Weakness
Recruiting and Retaining good staff.
Management of financial resources
at the initial stage.
Opportunities
The opportunities accessible under the
hospitality industry are infinite (Clegg,
Kornberger and Pitsis 2015).
It can add to catering services to its
business.
Threats
One of the most important threats
that every industry faces are their
competitor. In the same way, this
diligence have the big threat of their
established restaurants which serve
transnational food and apart from
this, it can be seen that regularly
there are new industrialists who are
interested in this industry.
The next threat which is likely to
face is government policies;
particularly the difficulty comes
when they want to import the raw
ingredients which are not accessible
in Australia (Bullet al., 2016).
Competitors Analysis (5 Porters Analysis)
The threat to entrants – The threat of entry in this industry is high as initiating a restaurant
business does not require too high financial resources. Moreover, one gets appropriate chance
Strengths
The best quality of food
Best service
Awesome Top View
Weakness
Recruiting and Retaining good staff.
Management of financial resources
at the initial stage.
Opportunities
The opportunities accessible under the
hospitality industry are infinite (Clegg,
Kornberger and Pitsis 2015).
It can add to catering services to its
business.
Threats
One of the most important threats
that every industry faces are their
competitor. In the same way, this
diligence have the big threat of their
established restaurants which serve
transnational food and apart from
this, it can be seen that regularly
there are new industrialists who are
interested in this industry.
The next threat which is likely to
face is government policies;
particularly the difficulty comes
when they want to import the raw
ingredients which are not accessible
in Australia (Bullet al., 2016).
Competitors Analysis (5 Porters Analysis)
The threat to entrants – The threat of entry in this industry is high as initiating a restaurant
business does not require too high financial resources. Moreover, one gets appropriate chance
to present its potential in business through this. However, the advantage available to Roof
Top Café is its ambience and view at the top. Thus, appropriate chances exist for the
restaurant to sustain for a longer period.
Threat relating to substitutes – The threat of substitute in café is available at an extensive
level. The reason behind same is varieties of alternatives are available to the customers as
many other restaurants and cafés are available easily.
Power of buyers –With accordance to Hill, Jones and Schilling (2014), bargaining power of
buyers is strong as substitutes are available in a significant manner. Moreover, café can
decide price in accordance with the quality provided by them. Thus, higher charges can be
demand if the appropriate level of service is provided.
Power of suppliers – Roof Top Café management requires maintaining a healthy relationship
with a supplier in order to receive supplies within time as well as for getting information
relating to competitors. Thus, moderate bargaining power towards supplier exists in case of
Roof Top Café.
The rivalry between competitors – A great extent of rivalry exist between competitors, thus
due to same reason a variety of issues are to be faced at the initial stage of business by café.
Advertising and Sales
With accordance to Moriarty, et al.(2014), advertising refers to the broadcasting of
information by the non-personal method through paid media where the resource is sponsoring
company. Furthermore, to promote the cafe advertising is done on television, magazine and
newspapers. Effective advertising and marketing strategies will lead to an increase in sales.
People nowadays are more attracted through with social media so the online platform will
also be utilized in order to provide information relating to café.
THE FUTURE
Vision statement
Roof Top Café is committed to uniting to provide fresh and delicious food and beverages, as
we believe sustainability is not a lofty idea but a basic requirement.
Mission statement
The company will provide the preeminent service and taste in food to the customers, so that
prefer coming back. The product used for food will be of top quality as well as fresh. Further
emphasis will be made on hygiene as the organization is concerned towards the health of
Top Café is its ambience and view at the top. Thus, appropriate chances exist for the
restaurant to sustain for a longer period.
Threat relating to substitutes – The threat of substitute in café is available at an extensive
level. The reason behind same is varieties of alternatives are available to the customers as
many other restaurants and cafés are available easily.
Power of buyers –With accordance to Hill, Jones and Schilling (2014), bargaining power of
buyers is strong as substitutes are available in a significant manner. Moreover, café can
decide price in accordance with the quality provided by them. Thus, higher charges can be
demand if the appropriate level of service is provided.
Power of suppliers – Roof Top Café management requires maintaining a healthy relationship
with a supplier in order to receive supplies within time as well as for getting information
relating to competitors. Thus, moderate bargaining power towards supplier exists in case of
Roof Top Café.
The rivalry between competitors – A great extent of rivalry exist between competitors, thus
due to same reason a variety of issues are to be faced at the initial stage of business by café.
Advertising and Sales
With accordance to Moriarty, et al.(2014), advertising refers to the broadcasting of
information by the non-personal method through paid media where the resource is sponsoring
company. Furthermore, to promote the cafe advertising is done on television, magazine and
newspapers. Effective advertising and marketing strategies will lead to an increase in sales.
People nowadays are more attracted through with social media so the online platform will
also be utilized in order to provide information relating to café.
THE FUTURE
Vision statement
Roof Top Café is committed to uniting to provide fresh and delicious food and beverages, as
we believe sustainability is not a lofty idea but a basic requirement.
Mission statement
The company will provide the preeminent service and taste in food to the customers, so that
prefer coming back. The product used for food will be of top quality as well as fresh. Further
emphasis will be made on hygiene as the organization is concerned towards the health of
customers. All the customers will be treated in an equal manner and products will be
provided at fair prices.
Goals/objectives
The main objectives for the business are –
Customer Satisfaction – The utmost important objective of the company is customer
satisfaction. The reason behind same is that business can make a profit only in case the
customer is satisfied with the service and taste of a restaurant. In order to attain the same best
training to staff will be provided.
Profit – The main objective of Roof Top Café is to make a profit. As one entity can
move forward and operate is a function with a smoothness only when it is running a
profitable business.
Pricing Policies –The third main objective is to provide the product at appropriate
rates in the menu to satisfy the target market.
Action plan
The quality of management will be build up by supervising them on a regular basis in order
to assess that whether they are operating efficiently or not. Proper training will be provided
by employees according to their type of work so that they can perform effectively. Changes
will be made with according to the current trends of market and requirements of consumers.
An appropriate information system will be developed in order to conduct all the operations in
a smooth manner in the following way:
ACTIVITY DESCRIPTION MANAGED
BY
Generating
information
sharing system
The largest cost of elevated worker turnover rate is
thrashing of vital information(Petty et al., 2015).
Information sharing system assists in evading that
expense to a significant extent. It will also provide
great assistance to employees who are new to the
organization. We can have a mentorship program,
uniting qualified workers with those who are recently
Chief
Executive
Officer
provided at fair prices.
Goals/objectives
The main objectives for the business are –
Customer Satisfaction – The utmost important objective of the company is customer
satisfaction. The reason behind same is that business can make a profit only in case the
customer is satisfied with the service and taste of a restaurant. In order to attain the same best
training to staff will be provided.
Profit – The main objective of Roof Top Café is to make a profit. As one entity can
move forward and operate is a function with a smoothness only when it is running a
profitable business.
Pricing Policies –The third main objective is to provide the product at appropriate
rates in the menu to satisfy the target market.
Action plan
The quality of management will be build up by supervising them on a regular basis in order
to assess that whether they are operating efficiently or not. Proper training will be provided
by employees according to their type of work so that they can perform effectively. Changes
will be made with according to the current trends of market and requirements of consumers.
An appropriate information system will be developed in order to conduct all the operations in
a smooth manner in the following way:
ACTIVITY DESCRIPTION MANAGED
BY
Generating
information
sharing system
The largest cost of elevated worker turnover rate is
thrashing of vital information(Petty et al., 2015).
Information sharing system assists in evading that
expense to a significant extent. It will also provide
great assistance to employees who are new to the
organization. We can have a mentorship program,
uniting qualified workers with those who are recently
Chief
Executive
Officer
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appointed. A teaching program template will be
developed, which they must pursue, providing them
with sufficient space so as to analyze their own
training techniques. Further, a timeframe, a range of
goals of the company will be provided to them,and
they will be allowed for making a connection on their
own. All these measures will assist in enhancing the
efficiency of employees.
Persuade
information
sharing in an
innovative
manner
Senior executives are oftentimes remote with their
own venture and their own room; they have no
information what the rest of the organization is
undertaking (Moutinho, and Phillips, 2018). In order
to reduce the threats of turning in uninteresting,
compulsory two-hour conference, make it enjoyable
and innovative. For instance, this month’s name is
Mafia movies,and the trade panel makes a decision to
present its modernized in a Godfather-like way. It is
essential for every organization to keep in mind that
innovation is very significant for them.
Manager
Creating faith in
organizational
leadership
It is stated by Nagle and Müller (2017), that,
employees expect lucidity and sincerity from leaders.
Regrettably, companies leaders keep on continue to
face matters of faith. An attempt will be made by
Roof Top Café management that employees are able
to have faith in the decision of managers.As in case
directors extricate or decline to allocate their own
partial learning journeys how they can imagine their
people to follow their passionately? It’s the old saying
of lead by exemplary. If managers desire workers to
connect in learning and enhancement, then they
necessitate demonstrating that they are vigorously
practising their own individual learning journeys too.
Thus, attempts will be made to develop trust for
managers as well as other senior executives.
Chief Financial
Officer
developed, which they must pursue, providing them
with sufficient space so as to analyze their own
training techniques. Further, a timeframe, a range of
goals of the company will be provided to them,and
they will be allowed for making a connection on their
own. All these measures will assist in enhancing the
efficiency of employees.
Persuade
information
sharing in an
innovative
manner
Senior executives are oftentimes remote with their
own venture and their own room; they have no
information what the rest of the organization is
undertaking (Moutinho, and Phillips, 2018). In order
to reduce the threats of turning in uninteresting,
compulsory two-hour conference, make it enjoyable
and innovative. For instance, this month’s name is
Mafia movies,and the trade panel makes a decision to
present its modernized in a Godfather-like way. It is
essential for every organization to keep in mind that
innovation is very significant for them.
Manager
Creating faith in
organizational
leadership
It is stated by Nagle and Müller (2017), that,
employees expect lucidity and sincerity from leaders.
Regrettably, companies leaders keep on continue to
face matters of faith. An attempt will be made by
Roof Top Café management that employees are able
to have faith in the decision of managers.As in case
directors extricate or decline to allocate their own
partial learning journeys how they can imagine their
people to follow their passionately? It’s the old saying
of lead by exemplary. If managers desire workers to
connect in learning and enhancement, then they
necessitate demonstrating that they are vigorously
practising their own individual learning journeys too.
Thus, attempts will be made to develop trust for
managers as well as other senior executives.
Chief Financial
Officer
THE FINANCES
Key objectives & financial review
The main objective of the Rooftop cafe is to increase the percentage of sales by 10% every
year and to finance the growth fundamentally from cash flow. It will assure that the food
inventory turnover continues at approximately four turns per month and the risk rate of
spoilage is decreased to a significant extent.
Assumptions
Appropriate growth is assumed in sales.
The assumption has been made that slow-growth will exist in the economy without a
major recession.
Unforeseen changes are assumed in technology in order to make a decision relating to
equipment.
Equity capital and financing is assumed sufficient for operating business in a smooth
manner as provided in the tables.
Start-up costs
For initiating the café, the owner will require approximately $350,000. Both the partners will
provide total funds of $ 250,000, in equal proportionate. Further, the remaining quantum of
funds, i.e. $100,000 is borrowed from the bank on interest, and in case any other amount will
be required than same will be financed from friends and family. Also looking for investors
who are happy to invest in the business to grow fast and do a successful business.
Startup expenses
Insurance premiums $4800
Beginning inventory $6000
Legal and accounting fees $
Rent deposits 3075
Utility deposits $-
Supplies $5000
Advertising and promotions $4000
Licenses $10000
Other initial costs $8000
Key objectives & financial review
The main objective of the Rooftop cafe is to increase the percentage of sales by 10% every
year and to finance the growth fundamentally from cash flow. It will assure that the food
inventory turnover continues at approximately four turns per month and the risk rate of
spoilage is decreased to a significant extent.
Assumptions
Appropriate growth is assumed in sales.
The assumption has been made that slow-growth will exist in the economy without a
major recession.
Unforeseen changes are assumed in technology in order to make a decision relating to
equipment.
Equity capital and financing is assumed sufficient for operating business in a smooth
manner as provided in the tables.
Start-up costs
For initiating the café, the owner will require approximately $350,000. Both the partners will
provide total funds of $ 250,000, in equal proportionate. Further, the remaining quantum of
funds, i.e. $100,000 is borrowed from the bank on interest, and in case any other amount will
be required than same will be financed from friends and family. Also looking for investors
who are happy to invest in the business to grow fast and do a successful business.
Startup expenses
Insurance premiums $4800
Beginning inventory $6000
Legal and accounting fees $
Rent deposits 3075
Utility deposits $-
Supplies $5000
Advertising and promotions $4000
Licenses $10000
Other initial costs $8000
Working capital
Total start-up expenses $40875
Start-up assets
Real estate
Buildings
Lease improvements $71725
Utensils $10000
Furniture and fixture $20000
Vehicles $10000
Total startup access $111725
Total required tostart-up costs 152,600
Total start-up expenses $40875
Start-up assets
Real estate
Buildings
Lease improvements $71725
Utensils $10000
Furniture and fixture $20000
Vehicles $10000
Total startup access $111725
Total required tostart-up costs 152,600
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Balance Sheet Forecast
Balance Sheet Year 1 Year 2 Year 3
Particular
Assets
Lease improvements 71725.00 80000.00 80000.00
Equipment 10000.00 15000.00 25000.00
Furniture and fixtures 20000.00 25000.00 30000.00
Vehicles 10000.00 10000.00 25000.00
Cash 39689.00 50000.00 65000.00
Bank 200000.00 300000.00 450000.00
Stock 25000.00 30000.00 35000.00
Debtors 745584.00 590640.00 302820.00
Total Assets 1121998.00 1100640.00 1012820.00
Liabilities and Equity
Liabilities
Loan 100000.00 100000.00 85000.00
Creditors 45000.00 55000.00 65000.00
Total 145000.00 155000.00 150000.00
Equity 250000.00 250000.00 350000.00
Profit and Loss A/c 726998.00 695640.00 512820.00
Total 976998.00 945640.00 862820.00
Equity & Liabilities 1121998.00 1100640.00 1012820.00
Profit and loss forecast
Profit and loss
forecast
Year 1 Year 2 Year 3
Sales
Cost of goods
sold
$1920,326 $1820,726 $1624,820
Gross profit $1920,326 $1820,726 $1624,820
Expenses
Accounting fee $1200 $1250 $1300
Advertising fee $10050 $10000 $9000
Balance Sheet Year 1 Year 2 Year 3
Particular
Assets
Lease improvements 71725.00 80000.00 80000.00
Equipment 10000.00 15000.00 25000.00
Furniture and fixtures 20000.00 25000.00 30000.00
Vehicles 10000.00 10000.00 25000.00
Cash 39689.00 50000.00 65000.00
Bank 200000.00 300000.00 450000.00
Stock 25000.00 30000.00 35000.00
Debtors 745584.00 590640.00 302820.00
Total Assets 1121998.00 1100640.00 1012820.00
Liabilities and Equity
Liabilities
Loan 100000.00 100000.00 85000.00
Creditors 45000.00 55000.00 65000.00
Total 145000.00 155000.00 150000.00
Equity 250000.00 250000.00 350000.00
Profit and Loss A/c 726998.00 695640.00 512820.00
Total 976998.00 945640.00 862820.00
Equity & Liabilities 1121998.00 1100640.00 1012820.00
Profit and loss forecast
Profit and loss
forecast
Year 1 Year 2 Year 3
Sales
Cost of goods
sold
$1920,326 $1820,726 $1624,820
Gross profit $1920,326 $1820,726 $1624,820
Expenses
Accounting fee $1200 $1250 $1300
Advertising fee $10050 $10000 $9000
Bank fee $2650 $2250 $2000
Bank interest $12000 - -
Credit card fee $2400 $2500 $2600
Utilities $83500 $80000 $78000
Telephone $3150 $3400 $3500
Loan payments - - -
Rent $71736 $72736 $72900
Vehicle expenses $7600 $7900 $8000
Stationary $1600 $1650 $1600
Insurance $4800 $5000 $5000
Superannuation $19682 $19800 $19900
Income tax $349653 $300000 $289600
Wages $374200 $380000 $380900
purchases $224900 $225900 $226900
Solicitors fee $2600 $2700 $2800
Maintenance $11600 $10000 $8000
more
Total expenses $1193328 $1125086 $1112000
Net profit $726998 $695640 $512820
Provisional Cash Flow Statement
MONTH JAN FEB MARC
H
APRI
L
MAY JUNE JULY AUG SEPT OCT NOV DEC
Cash
incoming
$184,0
00
$148,6
00
$170,19
0
$160,6
50
$1880
46
$1809
00
$2566
80
$1715
85
$1768
50
$1785
60
$1782
00
$97650
Sale - - - - - - - - - - - -
Asset sale - - - - - - - - - - - -
Debt - - - - - - - - - - - -
Other
income
- - - - - - - - - - - -
Total
income
$184,0
00
$148,6
00
$170,19
0
$160,6
50
$1880
46
$1809
00
$2566
80
$1715
85
$1768
50
$1785
60
$1782
00
$97650
Cash
outgoing
Purchases $2000
0
$1500 $17000 $1800
0
$2050
0
$2100
0
$2500
0
$1750
0
$1800
0
$1900
0
$1890
0
$15000
Accounta $100 $100 $100 $100 $100 $100 $1000 $1000 $1000 $100 $100 $100
Bank interest $12000 - -
Credit card fee $2400 $2500 $2600
Utilities $83500 $80000 $78000
Telephone $3150 $3400 $3500
Loan payments - - -
Rent $71736 $72736 $72900
Vehicle expenses $7600 $7900 $8000
Stationary $1600 $1650 $1600
Insurance $4800 $5000 $5000
Superannuation $19682 $19800 $19900
Income tax $349653 $300000 $289600
Wages $374200 $380000 $380900
purchases $224900 $225900 $226900
Solicitors fee $2600 $2700 $2800
Maintenance $11600 $10000 $8000
more
Total expenses $1193328 $1125086 $1112000
Net profit $726998 $695640 $512820
Provisional Cash Flow Statement
MONTH JAN FEB MARC
H
APRI
L
MAY JUNE JULY AUG SEPT OCT NOV DEC
Cash
incoming
$184,0
00
$148,6
00
$170,19
0
$160,6
50
$1880
46
$1809
00
$2566
80
$1715
85
$1768
50
$1785
60
$1782
00
$97650
Sale - - - - - - - - - - - -
Asset sale - - - - - - - - - - - -
Debt - - - - - - - - - - - -
Other
income
- - - - - - - - - - - -
Total
income
$184,0
00
$148,6
00
$170,19
0
$160,6
50
$1880
46
$1809
00
$2566
80
$1715
85
$1768
50
$1785
60
$1782
00
$97650
Cash
outgoing
Purchases $2000
0
$1500 $17000 $1800
0
$2050
0
$2100
0
$2500
0
$1750
0
$1800
0
$1900
0
$1890
0
$15000
Accounta $100 $100 $100 $100 $100 $100 $1000 $1000 $1000 $100 $100 $100
nt fee
Solicitor
fee
$250 $250 $200 $200 $200 $200 $200 $250 $300 $200 $200 $150
Advertisi
ng
$1000 $800 $900 $800 $800 $850 $900 $800 $900 $100 $800 $500
Bank fee $250 $200 $200 $250 $250 $200 $200 $200 $250 $200 $250 $200
Interest
paid
$1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $100
Credit
card fee
$250 $200 $200 $100 $150 $200 $250 $200 $250 $2000 $2000 $250
Utilities $7500 $6500 $6000 $7000 $7500 $6500 $7000 $6500 $7500 $8000 $7000 $6500
Telephon
e
$300 $200 $200 $350 $300 $300 $250 $200 $300 $250 $300 $200
Loan
payments
- - - - - - - - - - - -
Rent $5978 $5978 $5978 $5978 $5978 $5978 $5978 $5978 $5978 $5978 $5978 $5978
Vehicle
expenses
$600 $500 $650 $700 $700 $600 $650 $600 $700 $600 $650 $650
Maintena
nce
$2500 $1500 $1000 $800 $1000 $800 $700 $1000 $800 $700 $800 $500
Stationary $150 $100 $150 $100 $150 $100 $150 $250 $150 $100 $150 $100
Members
hip fee
- - - - - - - - - - - -
Licensing $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833
Insurance $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Superann
uation
$1500 $1576 $1586 $1597 $1600 $1650 $1700 $1800 $1500 $2576 $1597 $1000
Income
tax
$3130
3
$2880
0
$30000 $2980
0
$3200
0
$2900
0
$3500
0
$2760
0
$2780
0
$2795
0
$2790
0
$22500
Wages $3000
0
$3100
0
$31580 $3258
0
$3260
0
$3000 $3100
0
$3158
0
$3260
0
$3000
0
$3126
0
$30000
More
Total
outgoing
$1039
14
$9498
8
$11492
7
$1005
88
$1060
61
$1160
71
$1287
06
$9872
6
$9927
6
$9958
7
$9969
7
$57961
Monthly
cash
balance
$8022
6
$5369
2
$55263 $6006
2
$8198
5
$6482
9
$1279
74
$7285
9
$7757
4
$7897
3
$7850
3
$39689
Closing
balance
$8022
6
$5369
2
$55263 $6006
2
$8198
5
$6482
9
$1279
74
$7285
9
$7757
4
$7897
3
$7850
3
$39689
Break-even analysis
Statement presenting fixed cost of Roof Top Cafe
(Amount in $)
Particular Year 1 Year 2 Year 3
Rent 71736 72736 72900
Wages and Salaries 374200 380000 380900
Insurance 4800 5000 5000
Other Fixed Expenses 5000 5000 5000
Total Fixed Expenses 455736.00 462736.00 463800.00
Statement presenting contribution margin:
(Amount in $)
Solicitor
fee
$250 $250 $200 $200 $200 $200 $200 $250 $300 $200 $200 $150
Advertisi
ng
$1000 $800 $900 $800 $800 $850 $900 $800 $900 $100 $800 $500
Bank fee $250 $200 $200 $250 $250 $200 $200 $200 $250 $200 $250 $200
Interest
paid
$1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $100
Credit
card fee
$250 $200 $200 $100 $150 $200 $250 $200 $250 $2000 $2000 $250
Utilities $7500 $6500 $6000 $7000 $7500 $6500 $7000 $6500 $7500 $8000 $7000 $6500
Telephon
e
$300 $200 $200 $350 $300 $300 $250 $200 $300 $250 $300 $200
Loan
payments
- - - - - - - - - - - -
Rent $5978 $5978 $5978 $5978 $5978 $5978 $5978 $5978 $5978 $5978 $5978 $5978
Vehicle
expenses
$600 $500 $650 $700 $700 $600 $650 $600 $700 $600 $650 $650
Maintena
nce
$2500 $1500 $1000 $800 $1000 $800 $700 $1000 $800 $700 $800 $500
Stationary $150 $100 $150 $100 $150 $100 $150 $250 $150 $100 $150 $100
Members
hip fee
- - - - - - - - - - - -
Licensing $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833
Insurance $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Superann
uation
$1500 $1576 $1586 $1597 $1600 $1650 $1700 $1800 $1500 $2576 $1597 $1000
Income
tax
$3130
3
$2880
0
$30000 $2980
0
$3200
0
$2900
0
$3500
0
$2760
0
$2780
0
$2795
0
$2790
0
$22500
Wages $3000
0
$3100
0
$31580 $3258
0
$3260
0
$3000 $3100
0
$3158
0
$3260
0
$3000
0
$3126
0
$30000
More
Total
outgoing
$1039
14
$9498
8
$11492
7
$1005
88
$1060
61
$1160
71
$1287
06
$9872
6
$9927
6
$9958
7
$9969
7
$57961
Monthly
cash
balance
$8022
6
$5369
2
$55263 $6006
2
$8198
5
$6482
9
$1279
74
$7285
9
$7757
4
$7897
3
$7850
3
$39689
Closing
balance
$8022
6
$5369
2
$55263 $6006
2
$8198
5
$6482
9
$1279
74
$7285
9
$7757
4
$7897
3
$7850
3
$39689
Break-even analysis
Statement presenting fixed cost of Roof Top Cafe
(Amount in $)
Particular Year 1 Year 2 Year 3
Rent 71736 72736 72900
Wages and Salaries 374200 380000 380900
Insurance 4800 5000 5000
Other Fixed Expenses 5000 5000 5000
Total Fixed Expenses 455736.00 462736.00 463800.00
Statement presenting contribution margin:
(Amount in $)
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Particular Year 1 Year 2 Year 3
Contribution 1920326 1820726 1624820
Sales 3000000 4500000 5000000
Contribution Margin 64.01% 40.46% 32.50%
(Total Contribution / Sales)(Noreen,Brewer and
Garrison, 2014)
Contribution 1920326 1820726 1624820
Sales 3000000 4500000 5000000
Contribution Margin 64.01% 40.46% 32.50%
(Total Contribution / Sales)(Noreen,Brewer and
Garrison, 2014)
Break Even Sales
Particular Year 1 Year 2 Year 3
Break Even Sales 711966.614 1143671.261 1427235.017
(Total Fixed Cost /Contribution
%) (Marti and Scherer, 2016)
Above sales represent the figure which is required to attain by café in order to sustain in no
loss and no profit zone. Thus, the specified quantum of sales is necessarily required to be
maintained by the café.
Particular Year 1 Year 2 Year 3
Break Even Sales 711966.614 1143671.261 1427235.017
(Total Fixed Cost /Contribution
%) (Marti and Scherer, 2016)
Above sales represent the figure which is required to attain by café in order to sustain in no
loss and no profit zone. Thus, the specified quantum of sales is necessarily required to be
maintained by the café.
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Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C.,
Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths,
Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services
framework. Ecosystem Services, 17, pp.99-111.
Clegg, S.R., Kornberger, M. and Pitsis, T., 2015. Managing and organizations: An
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Cramer, J., 2017. Corporate Social Responsibility and Globalisation: an action plan for
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Ekanem, I., 2017. Writing a business plan: a practical guide. Routledge.
Glassie, J.C., 2016. Legal Considerations. Membership Essentials: Recruitment, Retention,
Roles, Responsibilities, and Resources, p.251.
Gordon, R.T. and Brezinski, M.H., 2016. The complete restaurant management guide.
Routledge.
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Jeston, J., 2014. Business process management. Routledge.
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contribution of management theory. Academy of Management Review, 41(2), pp.298-323.
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2014. Advertising: Principles and practice. Pearson Australia.
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Management (pp. 46-79). Routledge.
Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing
more profitably. Routledge.
Noreen, E.W., Brewer, P.C. and Garrison, R.H., 2014. Managerial accounting for managers.
New York: McGraw-Hill/Irwin.
Petty, J.W., Titman, S., Keown, A.J., Martin, P., Martin, J.D. and Burrow, M.,
2015. Financial management: Principles and applications. Pearson Higher Education AU.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university
press.
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C.,
Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths,
Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services
framework. Ecosystem Services, 17, pp.99-111.
Clegg, S.R., Kornberger, M. and Pitsis, T., 2015. Managing and organizations: An
introduction to theory and practice. Sage.
Cole, G.A., 2004. Management theory and practice. Cengage Learning EMEA.
Cramer, J., 2017. Corporate Social Responsibility and Globalisation: an action plan for
business. Routledge.
Ekanem, I., 2017. Writing a business plan: a practical guide. Routledge.
Glassie, J.C., 2016. Legal Considerations. Membership Essentials: Recruitment, Retention,
Roles, Responsibilities, and Resources, p.251.
Gordon, R.T. and Brezinski, M.H., 2016. The complete restaurant management guide.
Routledge.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Jeston, J., 2014. Business process management. Routledge.
Marti, E. and Scherer, A.G., 2016. Financial regulation and social welfare: The critical
contribution of management theory. Academy of Management Review, 41(2), pp.298-323.
Morden, T., 2016. Principles of strategic management. Routledge.
Moriarty, S., Mitchell, N.D., Wells, W.D., Crawford, R., Brennan, L. and Spence-Stone, R.,
2014. Advertising: Principles and practice. Pearson Australia.
Moutinho, L. and Phillips, P., 2018. Strategic analysis. In Contemporary Issues in Strategic
Management (pp. 46-79). Routledge.
Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing
more profitably. Routledge.
Noreen, E.W., Brewer, P.C. and Garrison, R.H., 2014. Managerial accounting for managers.
New York: McGraw-Hill/Irwin.
Petty, J.W., Titman, S., Keown, A.J., Martin, P., Martin, J.D. and Burrow, M.,
2015. Financial management: Principles and applications. Pearson Higher Education AU.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Wolke, T., 2017. Risk Management. Walter de Gruyter GmbH & Co KG.
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