FINANCIAL MANAGEMENT

Financial Management

Abstract

An entrepreneur must respond to the question “Could my new venture idea will generate enough money in future?” when planning for new venture. This answer can easily be obtain through feasibility study which assist entrepreneurs in understanding the cost and future revenue that will be generated through new venture. Beside this, it also assist entrepreneur in transforming new idea of venture into the successful business operations. The first comprehensive plan that needed to be completed is Feasibility study. The aim of feasibility study is to gather, record and to analyze information in a systemic manner so that the possibilities of new venture success idea increase. In short, it is a process of screening that is utilized to identify different business opportunities within the business plan. The focus of this study will be to recommend 60 year old Uncle John concerning his new business idea of Fine Chocolate. The feasibility Study will be prepared that will cover each aspect of finance i.e. cash flow analysis, investment techniques and future prospect action.

Financial Management - Final Assignment

Overview of the Company

John recently retired from a company getting a lump sum of $250,000. He decided to start a new career as a retailer of fine chocolate that will deal in to import chocolate from Switzerland and selling these chocolates in the USA. John will be purchase chocolate from SwissChoc owned by a family friend giving him right to sell his product in United States. Assuming that Uncle John named his company as Fine Chocolate - New Taste in United States from Switzerland.

Industry performance

The chocolate market of United States is mature with demanding and differentiates products. In order to differentiate in this market is a huge challenge for company. The demand for chocolates in United States is always high (KPMG, 2012, p. 3).

The term sale for Chocolate industry means the selling producer for a product in response for the money, without which the activity cannot be completed. For Chocolate industry sales is the output of the entire system of the organization rather than one department. The best part of the sale concept in the Chocolate industry is that when the decision is made by the different companies in this industry tends to increase the sales; the sales person gets on the track to increase the sale through their innovative ideas (Cook, 2012, p. 275).

However, it is also very important to know how to position and display these products, so those products not fade away from the eye of the customers which becomes very difficult to end up buying. Striking and attractive displays, especially at breakfast time which can assist in enhancing the sales of Chocolate cereals. As part of industry commitment to be the category leader in food and beverage, this industry has developed a range of materials tailored to ensure customers Foodservice good product visibility. Moreover, due to above sales concept adopted by this industry leaders, this has increased their overall profit and revenue made ...