Premium Essay

Livoria Sandwich Inc.

In: Business and Management

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...

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