Discuss About The European Journal Of Multidisciplinary Studies.
Cost structure: It refers to the relative parts of variable and fixed cost which business has to pay directly or indirectly. The cost structure looks to address the framework that is followed by the business in order to maintain their competitive edge.
Fixed Cost: Fixed cost refers to that cost which remains unchanged throughout the year. Labour cost, manufacturing/administrative overheads are considered under this category.
Variable Cost: Variable cost refers to that expenses which business has to pay in variable amount which can increase or decrease over time and requirements.
Number of customers: Number of customers are those which will be interested to make actual purchases is considered from 8-50 age groups. Table below shows Edible flowers will be able to get 25,000 customers on annual basis. Changes in best, worst scenario will be due to decrease in the number of customers annually.
|
Revenue |
Yr 1 |
Yr 2 |
Yr 3 |
Yr 4 |
Yr 5 |
|
Available market |
100,000 |
103,000 |
106,090 |
109,273 |
112,551 |
|
Market captured (no of customers) |
23,000 |
32,000 |
35,000 |
40,000 |
45,000 |
|
Additional market captured due to advertising impact |
6,900 |
9,600 |
10,500 |
12,000 |
13,500 |
|
Total market captured |
29,900 |
41,600 |
45,500 |
52,000 |
58,500 |
|
Revenue – total |
$89,700 |
$124,800 |
$136,500 |
$156,000 |
$175,500 |
|
Revenue – total |
$89,700 |
$124,800 |
$136,500 |
$156,000 |
$175,500 |
|
Break even (Revenue) |
$77,586 |
Net present value: Net present value is known to be the difference among the present value of the cash inflows and the present value of the outflow of cash over a specific time period. This process is used for the purpose of capital budgeting in order to assess the extent of profit of an investment or a project. The net present value determines the profit for the company and therefore it is essential for the companies to evaluate the same in order to attain effective results in accordance to their operational activities.
|
NPV (Discount Rate Assumed 25%) |
-$36,151 |
|
NPV (Discount Rate Assumed 25%) |
$43,605 |
|
NPV (Discount Rate Assumed 25%) |
-$51,022 |
IRR( Internal Rate of Interest ):
|
IRR |
3% |
|
IRR |
44% |
|
IRR |
-4% |
Cash Flow: Cash flow is known to the net amount of the cash and the things equivalent to cash that is being transferred within and out of the business management. At the most fundamental extent, the ability of a firm to create value for the shareholders and this is determined by the capability to create a positive cash flow and thereby maximise the free cash flow that is long term in nature.
|
Cash flow |
$5,730 |
$2,320 |
$12,850 |
$21,400 |
$37,950 |
|
Value |
Rarity |
Inimitability |
Organisation |
Competitive Advantage |
|
|
Financial |
Yes |
No |
No |
No |
No |
|
Technology |
Yes |
Yes |
Yes |
No |
Yes |
|
Human |
Yes |
No |
No |
No |
No |
|
Organisation |
Yes |
No |
No |
No |
No |
|
Infrastructure |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Intellectual |
Yes |
Yes |
No |
Yes |
Yes |
|
Experience |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Product |
Yes |
Yes |
Yes |
Yes |
Yes |
The table that has been constructed explains the fact that value is existent in all the aspects that have been addressed in this table. The unavailability of rarity is observed in financial, human and organizational perspective of the company. The inimitability addresses the fact that inimitability is not seen in the financial, human, organization and intellectual perspective. By looking at the organizational aspect that is seen in the process it is seen that financial, technology, human and organizational perspective is not present. By looking at the competitive advantage, it is seen that the company lacks competitive edge in the financial, human and overall framework of the company. The assessment suggests that the company in the initial time period has been competent enough to attain value creation in most of the aspects.
The marketing objectives of the company is one of the essential function and these objectives need to be constructed in order to understand the aspects in relation to which performance and activities would be performed in order to reach the ultimate goal for the company. The objectives of the company that need to be attained are as follows:
The objectives that have been determined has been constructed based on the SMART strategy as the objectives are Specific, Measurable, Achievable, Real and within the Time Frame.
The company has an effective strategy in relation to marketing as it is seen that the company has a good relationship with an advertisement company and has gone into a contract with them with the help of which the advertisement agency would be promoting for the company for a value 3% commission on the overall profit of the company. The advertisement agency even would provide promotional opportunities in various events where the company would be able to provide their cupcakes and other range of products within the events by being a sponsor for the event. These strategies would play a significant role in the development of the company in the future course of time and would even influence the customers about the products and the services that are offered by them. It is known that Word-of-Mouth is one of the effective marketing and promotional strategy and therefore with the help of efficient and developed quality of the products and the services, we would be able to satisfy out existent customers who would be able to influence others and thereby increase the range of our potential customers.
The company offers quality products and therefore provides fresh product to their customers. They bake the cupcakes right in front of the customers and therefore the customers would be assured of the quality of the product they are consuming. One of the interesting features that have been developed by the company is that every day after 9 pm at night, the shop would be providing a 15% discount on all their products for their customers. This is an effective marketing strategy on the part of the shop as this would increase their extent of sales and accordingly would increase their market share as well. The other quality of this promotional offer is that their daily stocks would be cleared and therefore they would not have the burden of carrying forward any finished item in the next day and therefore would be able to offer fresh products to their customers each and every day.
The marketing constitutes of the 4Ps and the company in order to well establish themselves in the economy plan their 4Ps in an effective manner. The marketing mix is given as follows:
Product: The products that would be offered by the shop would be of the finest quality and the unique product that would be sold by the shop would be their various flavours and kinds of cupcakes to the customers. There are several other products that would be offered for sale as well and it is seen that the other products include snack bites like various patties, croissants and other munchies and pastries and frappes. The shop would even provide coffees, hot drinks and cold drinks as well and thereby the shop is an ideal destination in order to sit down and relax and chat with the near and dear ones.
Price: This is a start up shop or a company and therefore in order to capture the market sales maximisation is the strategy that has been opted by the shop. It is due to this fact that the shop offers reasonable price to their products and their prices are lower than their competitors within the market where they operate.
Place: The shop is situated in the heart of Auckland city and therefore is linked to the business area as well as with the domestic area as well. This assists the shop in optimising their revenue as well as their sales in the market as well.
Promotion: The shop has effective and attractive promotional activities because of the fact that the management tries to increase the customer base as it is a new shop in the market. The shop therefore offers discounts on their best sellers and even provides flat discount on all their products after 9 pm every day.
The operational objectives of the company have been explained as follows:
15 %.
The shop maintains an efficient operational plan as the shop being a new one does not look to increase the amount of waste created from their production. Therefore the shop optimises the use of their resources with the utilisation of new and improved techniques with the help of which better and cheaper products can be manufactured with minimum amount of waste. The shop even looks to train their employees effectively in accordance to their pre-constructed objectives so that the employees understand the need of the shop and accordingly give their best. The training that is given to them is helpful to the employees in understanding the use of the equipment and the tools and thereby they would be able to perform in a healthy and better working environment. The shop will be operational seven days a week and have their store timing from 8 am in the morning to 10 pm at night. The shop is even concerned about the global environment and therefore provides awareness to their customers with the help of several quotes and phrases that are posted within the shop itself. The maintenance of the quality control concepts are even helpful in the development of operational efficiency with the help of which quality of the product of the shop can be maintained.
The table that is given below provides an extensive idea about the human resource and the staffing process.
To ensure that salary of staff will be $16.50 per hour
To get 85% output by the staff to deliver the best service
In the initial company will hire 2 persons
|
HR/Staffing Plan |
Yr 1 |
Yr 2 |
Yr 3 |
Yr 4 |
Yr 5 |
|
Staff Num |
1 |
2 |
3 |
4 |
5 |
|
Customers |
28,600 |
57,200 |
114,400 |
228,800 |
457,600 |
|
Salary per staff / yr [Budget] |
$70,000 |
$70,000 |
$105,000 |
$140,000 |
$175,000 |
The maintenance of a comprehensive salary for the employees would satisfy them as well and thereby they would motivate them in a better way. The staffing would be done in a specific guideline and course with the help of which the companies would be able to enhance their activities.
The objectives are:
|
Cash flow |
Yr 1 |
Yr 2 |
Yr 3 |
Yr 4 |
Yr 5 |
|
Cash flow per annum |
$5,730 |
$2,320 |
$12,850 |
$21,400 |
$37,950 |
|
Cash flow cumulative (1-5 Year) |
$80,250 |
|
Revenue |
Yr 1 |
Yr 2 |
Yr 3 |
Yr 4 |
Yr 5 |
|
Available market |
100,000 |
103,000 |
106,090 |
109,273 |
112,551 |
|
Market captured (no of customers) |
23,000 |
32,000 |
35,000 |
40,000 |
45,000 |
|
Additional market captured due to advertising impact |
6,900 |
9,600 |
10,500 |
12,000 |
13,500 |
|
Total market captured |
29,900 |
41,600 |
45,500 |
52,000 |
58,500 |
|
Revenue – total |
$89,700 |
$124,800 |
$136,500 |
$156,000 |
$175,500 |
|
Costs |
Yr 1 |
Yr 2 |
Yr 3 |
Yr 4 |
Yr 5 |
|
Fixed cost |
|||||
|
Start-up cost |
$70,000 |
$0 |
$0 |
$0 |
$0 |
|
Salaries |
$35,000 |
$70,000 |
$70,000 |
$79,000 |
$80,000 |
|
Platform Royalty (fixed) |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
|
Annual maintenance |
$15,000 |
$15,000 |
$15,000 |
$15,000 |
$15,000 |
|
Utility/bills (per annum) |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
|
Accountant/lawyer (per annum) |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
|
Other (per annum) |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
|
Total fixed cost |
$75,000 |
$110,000 |
$110,000 |
$119,000 |
$120,000 |
|
Fixed cost (per $ revenue) |
$0.84 |
$0.88 |
$0.81 |
$0.76 |
$0.68 |
|
Variable cost |
|||||
|
Advertising budget %age (against revenue) |
$8,970 |
$12,480 |
$13,650 |
$15,600 |
$17,550 |
|
Variable cost (per $ revenue) |
$0.10 |
$0.10 |
$0.10 |
$0.10 |
$0.10 |
|
Total cost (per $ revenue) |
$0.94 |
$0.98 |
$0.91 |
$0.86 |
$0.78 |
|
Total cost |
$83,970 |
$122,480 |
$123,650 |
$134,600 |
$137,550 |
|
Break even (Revenue) |
$77,586 |
References
Abhi, S., & Venugopal, V. (2017). Daily bread–a gourmet pursuit. The CASE Journal, 13(2), 271-293.
Broderick, B. (2017). Food with Purpose: Dudley Dough and Haley House Bakery Café. In Managing for Social Impact (pp. 73-86). Springer, Cham.
Gill, S., Grandzol, C., & Wynn, P. (2015). A Chance to Sprout: A Can’t Miss Opportunity for a Small Bread Bakery?. Business Case Journal, (2).
Lakshminarayanan, S., & Hanspal, S. (2014). Cupcakes by Lizbeth: flash in the baking pan or here to stay. The CASE Journal, 10(2), 145-155.
Mohamad, A., Rizal, A. M., Quoquab, F., Juhdi, N. H., & Sahimi, M. (2016). Restarting after Business Discontinuity among Bumiputra Small and Medium Enterprises. European Journal of Economics and Business Studies, 2(1), 259-270.
Morland, L. (2017). Rounton Coffee and Bedford Street Coffee Shop: From rural coffee roaster to urban coffee shop. The International Journal of Entrepreneurship and Innovation, 18(4), 256-263.
Nayak, P., Barker, D. C., Huang, J., Kemp, C. B., Wagener, T. L., & Chaloupka, F. (2018). ‘No, the government doesn’t need to, it’s already self-regulated’: a qualitative study among vape shop operators on perceptions of electronic vapor product regulation. Health education research, 33(2), 114-124.
Park, K., Jun, S., Han, J. J., Lee, J., Kim, H., & Kim, J. (2015). Caffé Bene Disrupts the Stagnating Korean Coffee Shop Market. Asian Case Research Journal, 19(01), 203-230.
Raven, J., & Lunsford, R. (2015). HEB’s sustainable competitive advantage. Journal of Business Cases and Applications, 14, 1.
Song, H. R., Kim, Y. K., & Kim, S. H. (2016). A Study on the Improvement Plan of Business District Information System. Journal of Distribution Science, Vol. 14 No. 6, 14(6), 27.
van Heeswijk, J. (2017). 24—A BAKERY AS A SITE OF RESISTANCE. The Social (Re) Production of Architecture: Politics, Values and Actions in Contemporary Practice, 361.
Xhaho, A., & Çaro, E. (2016). Returning and Re-Emigrating Gendered Trajectories of (Re) Integration from Greece. European Journal of Multidisciplinary Studies, 3(1), 171-180.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download