Management Accounting :: essays research papers

Management Accounting II FCB Bakery Shop Executive Summary FCB Bakery is a specialty food retailer. FCB uses a system that is similar to RotiBoy Bakery to provide Mexican buns in a fast and time-efficient way. FCB provides its customers the ability to order and buy the bun without waiting in long queue. FCB is offering cheaper offers to the RotiBoy. FCB offers its patrons the finest Mexican buns, specializing in specialty coffees flavors. In addition, FCB will ensure the patrons grab their freshly made buns straight on the spot without delay. Seasonally, TDP will add other flavors such as chocolate, cheese and more flavors. FCB will focus on two markets: The Daily Commuter- someone traveling to/from work, out shopping, delivering goods or services, or just out for a drive. The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for finger food, or where finger food are an integral part of the environment. FCB will penetrate the commuter and captive consumer markets by locating their premises in the most logical and accessible locations. The location are carefully selected in a two-sided traffic and selling the buns in less time than required for a visit to the locally confectionary shop. In addition to providing a quality product and an extensive delicious buns, to ensure customer awareness, as well as good publicity coverage and media support, we will be using word of mouths strategy based upon customer positive feedback. The FCB's financial picture is quite promising. Since FCB is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and FCB recognizes that a higher level of talent is required. The financial investment in its employees will be one of the greatest differentiators between it and FCB's competition. For the purpose of this cash budgeting, the capital expenditures of facilities and equipment are financed. There will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur. The danger in having direct competitors would rise up and establish a foothold on a community before--or in the midst of--the arrival of FCB, causing a potential for a drain on revenues and a dramatic increase in advertising expenditures to maintain market share. Knowing these risks--and planning for them--gives FCB the edge needed to make this scenario work. The projected profits estimates a profit of $166,004 for the first year, $157,309 for second year and earnings of $147,754 on the third year. Management Accounting :: essays research papers Management Accounting II FCB Bakery Shop Executive Summary FCB Bakery is a specialty food retailer. FCB uses a system that is similar to RotiBoy Bakery to provide Mexican buns in a fast and time-efficient way. FCB provides its customers the ability to order and buy the bun without waiting in long queue. FCB is offering cheaper offers to the RotiBoy. FCB offers its patrons the finest Mexican buns, specializing in specialty coffees flavors. In addition, FCB will ensure the patrons grab their freshly made buns straight on the spot without delay. Seasonally, TDP will add other flavors such as chocolate, cheese and more flavors. FCB will focus on two markets: The Daily Commuter- someone traveling to/from work, out shopping, delivering goods or services, or just out for a drive. The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for finger food, or where finger food are an integral part of the environment. FCB will penetrate the commuter and captive consumer markets by locating their premises in the most logical and accessible locations. The location are carefully selected in a two-sided traffic and selling the buns in less time than required for a visit to the locally confectionary shop. In addition to providing a quality product and an extensive delicious buns, to ensure customer awareness, as well as good publicity coverage and media support, we will be using word of mouths strategy based upon customer positive feedback. The FCB's financial picture is quite promising. Since FCB is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and FCB recognizes that a higher level of talent is required. The financial investment in its employees will be one of the greatest differentiators between it and FCB's competition. For the purpose of this cash budgeting, the capital expenditures of facilities and equipment are financed. There will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur. The danger in having direct competitors would rise up and establish a foothold on a community before--or in the midst of--the arrival of FCB, causing a potential for a drain on revenues and a dramatic increase in advertising expenditures to maintain market share. Knowing these risks--and planning for them--gives FCB the edge needed to make this scenario work. The projected profits estimates a profit of $166,004 for the first year, $157,309 for second year and earnings of $147,754 on the third year.