AC4003 - Business Profitability and Forecasting Presentation Analysis

This presentation, created for a Professional Skills for Accountants course (AC4003), analyzes the profitability of a hypothetical resort business, "Embralled Empire", in the Lake District. It outlines the business's unique services, facilities, and target market, including customer analysis and marketing strategies. The presentation includes a detailed profit and loss account, demonstrating the financial performance of the business. It explores the business's profitability through the application of marketing mix techniques, such as product, price, place, promotion, people, process, and physical evidence. The presentation concludes with a forecasting section, outlining the financial requirements, staffing needs, and potential revenue sources for the business's successful launch and operation. References to relevant accounting and business literature are also included.

PROFESSIONAL SKILLS FOR
ACCOUNTANT

INTRODUCTION
To initiate the business operations, it is and essential requirements that the accounting
professionals must manage the accounts and financial statements of the organisation. In
this presentation there has been discussion based on new launch of “Embralled Empire”
a new resort in Lake District which the unique services, facilities as well as the
forecasting budgets by the accountants. There will be analysis of the competitors and the
professionals will be suggested the strategic plans t be implement in the business
operations.

Business
“Emberalled Empire” is going to be initiate its operations in a resort sector at Lake
District UK. The business will have unique level of services and accommodation
facilities which will be helpful in terms of attracting the large numbers of consumers as
well as having the profitable gains. There will be Horse race course, golf course,
swimming pool etc. sports facilities that will be helpful in entertaining the consumers.
The restaurants and dishes served there will be unique and have the traditional impacts
of Romanian, German, Italian foods. The objective of business is to create the unique
identity and have appropriate revenue gathering.

Strategy
To develop the business on a large scale as well as have the favourable earning this is
essential that the professionals in such it must make plans and strategies that will help
them in operations as well as attract the large numbers of consumers. However, in
context with establishing the most favourable operational activities in terms of revenue
generation there is need to have better marketing and strategic planning. “Embralled
Empire” need to have unique strategies such as customer analysis, marketing mix as
well as competitor analysis.

Customer analysis:
Customer analysis: Tourists, Holiday packages, weekend plans, all categories and age
of consumers.
Positioning: Providing the satisfactory facilities to consumers at affordable charges and
to create the unique identity in the market.
Targeting: Facilitating the most appropriate accommodation facilities like Horse race
course, golf course as well as the quality restaurant.
Segmentation: Demographic, Geographic, psycho-graphic, Behavioural

Discussing the profit and loss account
Particulars 2018 (£) 2019 (£) 2020 (£)
Revenue 12000 18000 25000
-COGS 5000 6000 7500
Gross profit 7000 12000 17500
Operating Income 1500 2560 4500
-Operating
expenses
1000 500 750
Total operating
profit
7500 14060 21250
-Tax 30% 2250 4218 6375
Net profit 5250 9842 14875

Profitability of business
To determine the profitability of the business there is need to have the adequate analysis
over the operations with the help of marketing mix techniques such as:
Product: There are mainly services which will be offered to the consumers such as
Horse race course, golf course and the best traditional and cultural food of Italy, Rome
and Germany.
Price: The price are on the basis of duration of stay as well as the services required by
consumers. This will be affordable by buyers and appropriate for survival of entity.
Place: The place has been decided by the Professionals at Embralled Empire is Lake
District which is the most pleasant area in UK and that will be helpful in terms of
facilitating the adequate services to consumers.
Promotion: There will be use of various techniques as to attract the consumers which
will be publications over television, social media sites, Newspapers, graffiti, Hoardings
and flyers.

Continue..
People: Appointment of very talented workforce for each departments and unit. Horse
race course will have the numbers of trainers and employees who were well known to
maintains the course as well as look after the horses. For restaurant there will be
appointment of qualified and skilled chefs who know the traditional dishes of Rome,
Italy and Germany.
Process: There will be use of fresh ingredients and regular cleaning of the premises to
make it hygiene and health for consumers. On the other side there will be emergency
services which will be facilitated to consumers at time of any misshapen.
Physical evidence: The resort will go to have proper registration in the under the
legislative authorities of UK such as Companies House and HMRC. However, this is the
necessary step which is need to be performed by the organisation before initiating the
business.

Forecasting
In order to start up the business there will be need of large amount of funds and
workforce to help in organisational activities.
There will be appointment of 50 employees who will have different tasks and duties to
perform such as trainers for Horse race course, golf course and swimming pool area,
cleaners who maintaining the hygienic environment of the premises, managers who
execute the business operations, qualified chefs and relevant kitchen staff to perform the
restaurant operations of firm.
On the other side as to have the funds and finance for the industrial performance there
will be revenue gathering from the investors, government, owner's services, angel
investors and various sources that will be helpful for the revenue retention of the
organisation.

REFERENCES
 Ballantine, J. and McCourt Larres, P., 2009. Accounting undergraduates' perceptions
of cooperative learning as a model for enhancing their interpersonal and
communication skills to interface successfully with professional accountancy
education and training. Accounting Education: an international journal. 18(4-5).
pp.387-402.
 Kavanagh, M. H. and Drennan, L., 2008. What skills and attributes does an
accounting graduate need? Evidence from student perceptions and employer
expectations. Accounting & Finance. 48(2). pp.279-300.
 Marriott, P., 2017. Accounting education–dedicated edition.
 Weirich, T. R., Pearson, T. C. and Churyk, N. T., 2017. Accounting and Auditing
Research: Tools and Strategies. Wiley Global Education.

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