FINANCE AND ACCOUNTING

Finance and Accounting



Finance and Accounting

Introduction

Strategic decisions are those that define the future of companies and organizations. Typically these decisions require considerable amounts of resources to compromise and get results are uncertain and will be known years after the decision was made. In many cases, the company is addressing for the first time a decision of a particular type, so there is not much experience to draw upon. Even if any, strategic decisions about the future are not immediate and future this medium and long term has a bad habit of being very different to the past. Strategic decisions require an evaluation that includes the specific, perhaps unrepeatable, the situation facing, and analyzed with a robust methodology that allows confidently invest valuable resources to maximize the likelihood of even more valuable results

Project

The small business project that I have been operating for a year is a Bakery & Confectionary shop. The major products that I keep in my bakery are cakes, snacks, sweets, biscuits, and bread and general items. I have opened my first outlet in the posh area and then after few months I want to open the second outlet in the low income area in order to cover the cross section of the public. For this expansion, I need bank loan. Like my first bakery, the second bakery outlet will only be a retail outlet where I will purchase my items from the specialized bread manufacturing units. This particular business segment is labour intensive as the timings for my bakery will be from 6 am to 12 pm and I will run 2 shifts for the convenience of the employees. The number of employees that I will keep are 20 and 10 employees will be required per shift. Although the pure working hours in both the shifts will be 3 to 4 hours but because of the customer's availability, the single shift will cover 8 working hours.

The plants and machinery that I will require for my bakery will include variety of ovens to meet the requirements for the usage of different items like the cakes, pizza, pastries etc. The initial capacity of the bakery has been decided on the basis of aggregate sales over different periods of time. The bakery will even have to face fierce competition due to the presence of other famous bakeries in the city but my Bakery will certainly try its best to establish it's self in the market. In order to remain competitive, it will be necessary to meet the change in customer demands of both the bakery and general items. The proportion of sales of both the items can even vary. The bakery will be started as a sole proprietorship and the source of start-up capital would be 50% from Debt Financing such as the loans from the banks and 50% would be from Equity Financing.

The key success factors that will be very crucial for my bakery would be the range for the selection of products, the sitting ...