Livoria Sandwich Inc.
Subject: Review of Strategies for Livoria Sandwich Inc. Fiscal Year 2013 – 2015
To: Paul and Same
From: Des Cas, CMA
Date: Dec 31st, 2012
Introduction
This report gives recommendations to Paul and Sam, founders of Livoria Sandwiches (LS) Inc for fiscal 2013 to 2015. LS own two stores selling custom-made Italian sandwich in Dawkins.
Vision statement is “Livoria will be the first choice of Dawkins residents who are seeking a variety of high- quality fresh sandwiches at reasonable prices.”
Mission statement is “We are the highest-quality sandwich shop in Dawkins because of our legendary sandwich-making processes and our commitment to using the highest-quality ingredients.”
Situational Analysis
The following are facts important to LS analysis.
Paul and Sam aims for 1.1 Million Net Income in 2015.
LS maximum 6 employees.
LS must maintain $20,000 at the bank.
Must pass city quarterly health audit.
Paul purpose franchising alternative and highlighted eggplant sandwiches strong forecasted growth.
Sam purpose vegetarian menu expansion and highlighted strong vegetarian sandwich demand due to health concerns and customer’s concern over limited sandwich selection.
Key success factors are highlighted in LS vision and mission, which is making high-quality fresh sandwiches with highest-quality ingredients.
Tax at 20% payable on March 31 of the following year. Tax audit found $22,500 in payables due 2013.
Refer to Appendix 1 for SWOT Analysis
Analysis of Minor Issues and Alternatives The following issues and alternatives are ranked.
1. Litigation payment of $0.5 million increase risk of not meeting bank’s minimum cash balance of $20,000 and risk bankruptcy. Cash flow forecast estimates enough cash flow to meet three equal payments of $166,666.67 in May of each year.
2. Insufficient work hours scheduled for 2013 – 2015 to meet forecasted sandwich demand. Risk losing market share, staff workload overload, and overstating forecast.
To: Paul and Same
From: Des Cas, CMA
Date: Dec 31st, 2012
Introduction
This report gives recommendations to Paul and Sam, founders of Livoria Sandwiches (LS) Inc for fiscal 2013 to 2015. LS own two stores selling custom-made Italian sandwich in Dawkins.
Vision statement is “Livoria will be the first choice of Dawkins residents who are seeking a variety of high- quality fresh sandwiches at reasonable prices.”
Mission statement is “We are the highest-quality sandwich shop in Dawkins because of our legendary sandwich-making processes and our commitment to using the highest-quality ingredients.”
Situational Analysis
The following are facts important to LS analysis.
Paul and Sam aims for 1.1 Million Net Income in 2015.
LS maximum 6 employees.
LS must maintain $20,000 at the bank.
Must pass city quarterly health audit.
Paul purpose franchising alternative and highlighted eggplant sandwiches strong forecasted growth.
Sam purpose vegetarian menu expansion and highlighted strong vegetarian sandwich demand due to health concerns and customer’s concern over limited sandwich selection.
Key success factors are highlighted in LS vision and mission, which is making high-quality fresh sandwiches with highest-quality ingredients.
Tax at 20% payable on March 31 of the following year. Tax audit found $22,500 in payables due 2013.
Refer to Appendix 1 for SWOT Analysis
Analysis of Minor Issues and Alternatives The following issues and alternatives are ranked.
1. Litigation payment of $0.5 million increase risk of not meeting bank’s minimum cash balance of $20,000 and risk bankruptcy. Cash flow forecast estimates enough cash flow to meet three equal payments of $166,666.67 in May of each year.
2. Insufficient work hours scheduled for 2013 – 2015 to meet forecasted sandwich demand. Risk losing market share, staff workload overload, and overstating forecast.