The report analyses whether starting a new franchise of Cool Moose Creamery would be feasible or not and what opportunities and threats might be considered while starting this venture. The report has been divided into two parts; the first part of the reports highlights and discusses different elements that could influence the decision whether to start a new venture or not and the other part of the report analyses the feasibility of starting a new venture by using different project appraisal techniques. The first part of would include more of qualitative data however the quantitative data and all the calculations have been included in the second part. Important Elements to Consider Starting a new venture is the phase when the management of the business has to consider important elements and factors that could influence the operations and success of the new firm. By identifying these important elements, the managers are able to identify factors that could influence the business and then take steps to minimize the impact of these steps. Such elements are also important for the management as they provide areas that the management should look at and be careful of while starting a new venture (Dunung, 2010). Some of the most important elements that the management has to consider while starting a new venture are as follows: Market Size and potential of the market One of the important elements that have been considered before starting a new venture is the market size and the potential of the market. Market size is basically defined as the total number of potential customers that the firm for whom the firm would be offering products or services. Market potential basically refers to the potential or possibility of the consumers buying the products or services of the firm. If the market has high potential but the size is very limited and starting a business requires high investment, then it is not feasible to go ahead with such a venture. However, if the market size is small and has potential in it but requires low investment then venture can be started as despite of low market size firm would be able to capitalise the market. Therefore it is important for the management to consider and analyse the market size and the potential of the market along with the benefits that would be delivered by the venture and by comparing these elements, the final decision should be made. Product and its uniqueness The other important element that
Contents Introduction 3 Important Elements to Consider 3 Market Size and potential of the market 3 Product and its uniqueness 4 Demand of the products or services 4 Competition 5 Expected Return on Investment 5 Risk involved 5 Availability of resources 6 Reversible Investment 6 Gut Feeling 6 Taking the final decision of investment 7 Assessing the possibility of Purchasing a new single-head soft-serve ice cream machine 7 Qualitative Issues that need to be consider: 9 Competition 9 Demand of ice cream in the market 9 Legal issues 10 Opportunities Prevailing 10 Conclusion 10 Exhibit 11 Project Profit and Loss Statement 11 Calculating Hourly Rate of employee 11 Cost of soft-serve mix per serving …
Finance Table of Content Answer 1 3 Answer 2 6 Reference 11 Appendix 11 Answer 1 This is a business plan of a new franchisee development of an ice cream company Cool Moose Creamery which is a one year young company located in Alliston, Ontario. The franchise will be set up in a city in United Kingdom.
What is Cool?
The term “cool”, has numerous definitions and can somehow be very confusing the context of its use dictating its meaning (Rice par1). Cool can be in the positive or negative sense, although it is mainly used in the former. Cool, as a principle, for example, means remaining calm even under stress.
Among the people who could be interested with the records also referred to as the financial statement include; shareholders, creditors, investors as well as the directors among others. The financial statement contains important information that can be used in decision making (Stickney, 2010).
The main objective of the financial management is to provide funds for the business. This is the backbone of the business because no firm or company can run without funds. There are many options for availing funds from different quarters. Although the
the working capital management. The paper will discuss in detail the meaning of working capital management and many other aspects of the concept and how it relates to the company and its performance. A major focus will also be on the
Yet again, it may mean lack of excitement in the negative sense. The term also means neither warm nor cold according to Free Dictionary (par 1). In this respect, the term may also be used with neither a positively nor negatively connotation.
The company offers home and clothing products in addition foods sourced from more than 2000 suppliers from all over the world. Two years ago, the products of the company were also sold through 730 United Kingdom branches and 390 internationally. The