These objectives are designed and reviewed at fixed intervals, discrepancies are identified and finally based on reviews suggestions are employed to meet the desired gaps. In same trend management of the company in the year end 2012 called up board meeting and planned company objectives for the next three years. This report is based on the review of the planned objectives. For the purpose, this report provided critical analysis of the set forth objectives along with its comparison with competitors’ objectives. Section II of the report has developed financials (comprising of income statement and balance sheet) for the next three years i.e. 2013- 2015 and has made an attempt to review level of alignment between objectives and financials. Section III of the report provides review of investment decision that company intends to make pertaining to cost of capital and its impact on shareholders wealth. Lastly, the report provides concluding remarks based on the overall review. 1- OBJECTIVE EVALUATION In the board meeting held in the ending of the current year, management has highlighted corporate objectives and future direction for the next three years. These objectives have been set based on the financial position for the current year 2012. Financial objectives for the next three years are as follows: 1- To maintain the profit margin around 24% 2- To ensure the current strong financial position is maintained 3- To satisfy shareholders by maintaining the dividend payout ratio of 50% ANALYSIS OF THE FINANCIAL OBJECTIVES Apparently the objectives appear to be suitable for the overall business. However, since the case do not provide detailed financial information, therefore, it is difficult to accept these objectives in alignment with the overall objectives across departments. For instance, maintaining profit margin at 24% refers that Aztec Catering has either plans to maintain the strong control over cost or would increase its prices to maintain to meet the objective or increase sales. Both options have their implications mainly for following factors: 1- Level of competition 2- Inflation 3- Only in case if all other things remain same Keeping under consideration, Aztec Catering is competing with Compass group which comparatively bigger business concern. Therefore, increasing price would divert its customer to the competitor and there is ample chance for Aztec Catering to lose customer base. On contrary, reducing overall cost or developing stronger control over cost items is the other option. As stated in the given option, objective of Compass group is to provide the best services to its customers refers that Compass group would provide more value added offerings to its customer. Providing value added products would increase cost while being bigger concern it can easily attain the benefit of economies while Aztec Catering in order to remain competitive has to increase its offerings as well that resultantly would rise in cost. Hence, there are all chances that cost would increase in a greater proportion than sales. Therefore, cost control appears somewhat difficult option. Considering the third option of increasing sales also require increased marketing and other activities that would also increase cost. Therefore, it with the given information it is difficult to infer the ways Aztec Catering would maintain the profit margin of 24%. The given information has also not accounted the other factors that increasing cost. For instance, for the target that have been set the given informa
AZTEC CATERING ANALYIS OF FINANCIAL OBJECTIVES; FINANCIALS PROJECTTIONS AND INVESTMENT DECISIONS INTRODUCTION Aztec Catering has been successfully serving its client base for the last 40 years. This success can be attributed to considerate strategic plan of group…
It has been 40 years since Aztec Catering has been serving the catering needs of businesses, schools, colleges, retirement homes and hospitals. The company offers its services throughout the United Kingdom however the main focus has been in the Midlands and South regions of United Kingdom.
The manager’s cognitive psychology arbitrates the investigation of the variables of the issue in which it occurs. Decision-making is described as the procedure of selecting an alternative from a set of alternative decisions. The managers are required to keep themselves aware of the multidimensional fields in order to achieve the desired results in the aggressive and dynamic business environment.
1a Advantages of Limited Company By forming a limited company, shareholders are at low level of risk of losing their money as compared to sole proprietorship and partnership. Under limited liability setup shareholders become liable for the invested amount that they have placed in the business and their personal holdings / assets are not subjected to liquidation in case of bankruptcy.
He manages to act crazy and he is believed to be actually crazy. Antic disposition is a way of acting mad and making it believable. This works for Hamlet so well that even his relationship is destroyed. His antic disposition goes on through the whole play, combined with his temper and the strong urge for revenge.
At the end of the year 2 the amount recovered is ($295,875 + $456,750) $752,625 meaning we need further ($1,200,000 - $752,625) = $447,375 from the third year. Then we divide 447,375/456,750 and the result is multiplied with the 12 (the number of months in a year) to give the answer.
tinker with outsourcing .Before any business considers outsourcing, they need to evaluate the business requirements and it will be necessary to clarify the objectives of outsourcing and complete financial analysis to fully evaluate outsourcing as a viable opportunity(1)
ld Bank bonds are issued by the International Bank for Reconstruction and Development (IBRD) in the international capital markets” ("Bonds and investment," 2011). Within this context of understanding it’s clear that money is making it to emerging markets.
Investment simply means an asset or item purchased with the hope of income generation or value appreciation within some time. Investment has two sides that can give angles of definition. In economics, investment is defined as the purchase of