Simplifying the Text Important parts of the text: - Brunch Rings has a strong customer base - Bruch Rings has a good, cost-efficient menu - Looking to expand business Possible Location: near downtown Toronto, right near the University of Toronto Must include: 1. At least three methods of expansion on the local, provincial, and national levels (have to consider the advantages and disadvantages of different types of owners). Discuss how each of the methods of expansion will influence the business’s consumer base and overall profits, and how this affects the employment force. 2. Evaluate the marketing strategies that will attract potential customers in different scenarios 3. Mention the use of financial statements and how they could benefit the business(the income statement and the budget) The competencies: 1. Discuss the 4 different forms of business ownership: - Sole-proprietorships - Partnerships - Franchises - Corporations 2. Evaluate different marketing strategies by focusing on the5Ps of marketing: - People - Product - place - Promotion - price 3. Describe potential recruitment strategies and criteria: - Recruitment goals - Positions to fill 4. Analyze the different types of financial statements and their benefits to the business: - Income statement - Budge Part 1 1. At least three methods of expansion on the local, provincial, and national levels (have to consider the advantages and disadvantages of different types of owners) Discuss how each of the methods of expansion will influence the business’s consumer base and overall profits, and how this affects the employment force. Discuss the 4 different forms of business ownership: Sole-proprietorships Partnerships Franchises Corporations Sole-proprietorships: Pros: - Affordable Freedom Flexibility Less paperwork Simpler income tax Lower business fees Straightforward banking Get all the profit Cons: - No liability protection Financing and business credit are harder to procure Unlimited liability Taking a Day Off Means Lost Income Stays small Suitible to Scenario? Since Brunch Rings are trying to go big, I don’t think this is the best idea. It will be very hard to maintain such a big business by yourself. If Brunch Rings don’t succeed in their new location, the liability is unlimited. But since it is a donught shop they might want to keep it a secret recipe, so that will be fine if they only want it locally. Partnerships: Pros: - two heads are better than one Cons: - your business is easy to establish and start-up costs are low. Can go bigger you'll have a greater borrowing capacity You have a less financial burden There are fewer tax forms more business opportunities a new perspective potential tax benefits You can't make decisions on your own You'll have disagreements You have to split the profits Cannot make it national the liability of the partners for the debts of the business is unlimited future selling complications a lack of stability Management style Suitible to Scenario? I don’t think that a partnership would do if they were trying to go to provincial or national levels. Profit will be a lot it will still be split in half(if has two members). Corporations: Pros: - limiting the personal liability - the ability to raise investment money Cons: - perpetual existence employee benefits and tax advantages Career development and opportunities Has the same rules for each of the stores that they open the company can be expensive to establish, maintain and wind up the reporting requirements can be complex. your financial affairs are public Diverse community Networking Double taxation of corporate profits States have higher fees Suitible to Scenario? I think that a corporation is suitable for the scenario of Brunch Rings, but since they still aren’t such a big company yet, I don’t think it is the best choice. Corporations face double taxation and to small store owners, this is a big deal. Also, corporations aren’t cheap to start, on the contrary, they are quite expensive. But as for recruitment, it probably is the best because employees get benefits and tax advantages. Since Brunch Rings are looking to expand their business this might be a good option to have because corporations have career development and opportunities. Franchises: Pros: - Little to no industry experience is necessary - Existing customer base and brand awareness - Lower risk than starting an entirely new business - Support from the franchise owner - Ample opportunities for expanding your business to different franchise locations - Reduced risk of failure - Ongoing business support - Market Expertise - Increased buying power - Higher profits - Better chance of finance Cons: - Limited creative opportunities Varied levels of support Financial information is shared with the franchisor. Initial investments and start-up costs can be expensive Contracts aren't permanent You're your boss, but you have less individual control Suitible to Scenario? I think that Franchises best suit this scenario. It gives everything that the Brunch Ring wants. They could expand their business because they have opportunities for expanding your business to different franchise locations, which Brung Ring is planning to do if they want to make it national or even international. They also stated that they wanted more money which they would have because Franchises get more money. After all, a portion of the Franchisee’s profit will go to the franchisor. Besides expanding their business and getting more money, the store Brunch Rings also wanted good employment. When you are an employee/franchisee, you get a lot of support from the franchisor because you don’t have that much liability if the company doesn’t work. Your job is also pretty stable if you have enough talent and social skills because usually, franchises are an ongoing business. And since the business has higher profit, you might be able to get higher pay. Part 2 2. Evaluate the marketing strategies that will attract potential customers in different scenarios Key findings, presentation flow and story tellings: 1. About the Buisness strategy: Business strategy's main building blocks are differentiating and emphasising strengths. Therefore, in order to possibly grow the business, we must identify Brunch Rings' assets and capitalise on them. 2. The value Propositions: The goal of a business value proposition is to target a certain consumer group with a certain good or service. University students in the downtown area can have meals and drinks at Brunch Rings for a moderate price. We must identify our actual customers and the types of goods and services that will appeal to them. In order to accomplish this, we will conduct market research that includes consumer interviews and surveys. We can infer from the poll results that budget-conscious customers, including students and others, are drawn to the menu at medium-priced donut shop 3. Just Right: We think that a company's ability to succeed depends on having the right product, at the right price, for the right customers, in the right place. According to a survey, the most crucial and distinctive component of success is the recipe for the very addicting donuts. These results give us reason to assume that we can easily expand our consumer base beyond college students and beyond medium-priced goods in order to increase our profit. 4. The 5Ps: a) Product: Concentrate on the well adored donuts. b) Price: Because our items are distinctive, test raising the price to enhance profit. b) Location: not just the university or the downtown area. d) Promotion: Our emphasis will be on highlighting the distinctive and irresistible flavour. This is what a new store name like "addictive donut" will convey. e) People: We'll look at making "tasty + friendly" our main advantages. As a result, we will implement a rigorous hiring procedure and probationary period to find pleasant employees. Part 3 3. Mention the use of financial statements and how they could benefit the business(the income statement and the budget) The Income Statement: You can see the company's income and expenses on an income statement, which is a financial statement. It also reveals if a business is profitable or losing money over a specific time frame. You can better grasp your company's financial situation with the aid of the income statement, balance sheet, and cash flow statement. The Budget: A financial plan for your firm based on your income and expenses is called a business budget. It determines your available cash, calculates your expenses, and aids in income forecasting. A budget can aid in the planning of your business operations and serve as a benchmark for the establishment of financial objectives.
