Premium Essay

Livoria Sandwich Inc.

In:

Submitted By Punkguy01010101
Words 1402
Pages 6
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

Similar Documents

Premium Essay

Livoria Sandwiches

...To: Paul Livoria & Sam Livoria, Livoria Sandwiches Inc. From: Dev Das, CMA Subject: Strategic Evaluations and Recommendation – Livoria Sandwiches Inc. Date: December 30, 2011 Introduction The purpose of this report is to evaluate Livoria Sandwiches’ (henceforth, Livoria) current strategic and financial situation and select a best alternative for Livoria sandwiches to attain $1.1 million in Net Income by 2014. This report includes a current situational analysis (Appendix 2 – Present Menu and Appendix 3 – Pro Forma Income Statement), analysis of strategic alternatives, a recommendation and a conclusion. Situational Analysis (see Appendix 1 for supporting SWOT Analysis) Since commencing operations in January 2001, Livoria Sandwiches has been offering an assortment of quality custom-made sandwiches in Dawkins. With a family-oriented atmosphere and a customer focused mission/vision statement the company distinguishes itself in making quality sandwiches by focusing on high-quality ingredients, freshness and quick sandwich-making process. In 2011, Livoria achieved 53% contribution margin and a 5.4% sales growth surpassing the industry average. By 2014, Livoria plans to reach $1.1 million in Net Income. However, due to space limitations and labour constraints (Appendix 5), the company has to make a decision based on two strategic alternatives to reach this goal: ...

Words: 1355 - Pages: 6

Premium Essay

Livoria

...MODULE 1, ASSIGNMENT 3 August 2, 2011 Livoria Sandwiches Inc. It was 2:00 a.m. and Paul Livoria sat in the corner stall of his restaurant staring out the window into the parking lot. His brother Sam was in the kitchen cleaning up after a very long day. Paul felt very restless, partially because of the seven cups of coffee he had had, but mostly because he was feeling very overwhelmed. He thought to himself, “Running these two restaurants shouldn’t be so complicated.” At age 46, maybe it was time for a change. The Birth of Livoria Sandwiches Inc. Brothers Paul and Sam Livoria founded Livoria Sandwiches Inc. as a Canadian Controlled Private Corporation (CCPC) in December 2000, but began operations in January 2001. Both brothers had worked for Link Motor Company in the City of Dawkins (a major city of 275 sq. km) in one of its manufacturing plants. Paul was a truck production supervisor and Sam was an automobile line worker. Unfortunately, in 2000, both brothers were laid off as there was a huge decline in the automotive sector. With the severance packages they received, Paul and Sam opened up their first store. Both of them have no formal business training and many decisions have been made through “trial and error.” After five years of positive growth, Paul and Sam decided to open up a second location in a high-traffic area in Zone 1 (five kilometres away from each other) in Dawkins. Below is a map of the city: © 2011 The Society of Management Accountants of Canada. All...

Words: 3365 - Pages: 14

Premium Essay

M1A3

...It was 2:00 a.m. and Paul Livoria sat in the corner stall of his restaurant staring out the window into the parking lot. His brother Sam was in the kitchen cleaning up after a very long day. Paul felt very restless, partially because of the seven cups of coffee he had had, but mostly because he was feeling very overwhelmed. He thought to himself, “Running these two restaurants shouldn’t be so complicated.” At age 46, maybe it was time for a change. The Birth of Livoria Sandwiches Inc. Brothers Paul and Sam Livoria founded Livoria Sandwiches Inc. as a Canadian Controlled Private Corporation (CCPC) in December 2001, but began operations in January 2002. Both brothers had worked for Link Motor Company in the City of Dawkins (a major city of 275 sq. km) in one of its manufacturing plants. Paul was a truck production supervisor and Sam was an automobile line worker. Unfortunately, in 2001, both brothers were laid off as there was a huge decline in the automotive sector. With the severance packages they received, Paul and Sam opened up their first store. Both of them have no formal business training and many decisions have been made through “trial and error.” After five years of positive growth, Paul and Sam decided to open up a second location in a high-traffic area in Zone 1 (five kilometres away from each other) in Dawkins. Below is a map of the city: © 2013 The Society of Management Accountants of Canada. All rights reserved. ®/TM Registered Trade-Marks/Trade-Marks are owned...

Words: 2216 - Pages: 9