Past papers bm-kopia

Adam Mickiewicz University  **We aren't endorsed by this school
MANA 124
Aug 1, 2023
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Past papers Margin of safety- how much the output can fall 1. Hire purchase 2. Long-term loan 1. Less rotation between employees means less new workers with fresh ideas 2. It is easier for the owner to develop close relationships with the sta ff 1. ability to get to larger amount of individuals 2. Increased indirect costs due to marketing expanses 1. The Burnt Tomato considers the enlargement from one to three restaurants. As such solution has both pros and cons, this essay will discuss them. BTO expansion would allow the business to benefit from wide range economies of scale, such as the purchasing one, that includes lower costs of purchasing supplies due to greater scale of orders, financial ones, that result from banks being more willing to borrow money to larger, more creditworthy businesses and marketing ones. Ben already invested in social media marketing, so if the business expended one social media website could automatically advertise all of them. What is more enlargement from one to three restaurants will possibly mean greater sales revenue due to a greater amount of customers, which if managed properly can be converted into higher gross profit. The higher profit could be later retained into the business and used as an internal source of finance, which could be spent on better equipment such as cookers, pans or fridges. However, it is important to mention that opening two more restaurants would certainly mean higher costs, either the direct ones, so more raw materials needed to prepare vegan food or indirect costs like electricity or rent. The cost of labour would increase as well Additionally, the grater scale of BTO operation would make it di cult for Ben to develop close relationship with employees. He also would not be able to oversee employees and control their actions, which could results in them being less e cient and motivated. In conclusion, expanding the business from one to three restaurants can o ff er significant advantages in terms of economies of scale, increased sales revenue, and potential for higher profits. The ability to leverage purchasing, financial, and 1
marketing economies can result in cost savings, improved borrowing potential, and streamlined advertising e ff orts. However, it is important to consider the potential challenges and costs associated with the expansion. Higher expenses in terms of raw materials, indirect costs, and labor would need to be carefully managed. Additionally, the greater scale of operations may make it di cult for the owner, Ben, to develop close relationships with employees and maintain direct oversight, which could impact e ciency and motivation. Overall, the decision to expand should be based on a comprehensive analysis of the potential benefits and drawbacks, taking into account the financial resources, managerial capabilities, and market conditions. With proper planning and e ff ective management, the expansion has the potential to lead to business growth and increased profitability. - decision tree - depreciacion - how to manage the change - Change management 2
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