American Chicken Ltd is a fast food business based in Penzance that specialises in burgers and pizzas. They are currently making a profit; however they have set themselves two objectives for the upcoming financial year, which are:
• Make more profit.
• Expand and open another outlet in Hayle.
This report is intended to give advice to the owners of American Chicken on the best methods in order to obtain the finance needed to achieve their set goals, particularly in expanding and opening a new outlet it Hayle.
Overview:
Whether a business is starting out or developing and expanding, it needs finance to do so. The type and amount of finance is dependent on several factors which can include:
• The type of business – a sole trader will find it much more difficult in order to obtain finance compared to a PLC or Ltd. A partnership will have income from both partners where as a sole trader will have the income of only themselves.
• The development stage of the business – a new business will find it harder to obtain finance than an established firm. As the business develops it is easier to persuade outsiders to invest in the business. It will also be easier to obtain loans as the business has assets to offer as security.
• How successful the firm is – a good success record will encourage both lenders and investors. Lenders will have confidence in the business returning their loan. Investors will be keen to invest in order to share the profits the business makes.
• The state of the economy – in a boom business confidence will be high. It is easy to raise finance from both borrowing and investors. A recession has the opposite effect as investors will be less keen due to high interest rates. High interest rates also raise the cost of borr...
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...r advantage is that it is likely the business will not have to pay the venture capitalist the money back that they borrowed, as the venture capitalist is shouldering the risk of the business as it believes in the future success of the business. Another advantage is that the venture capitalist can also offer expert advice and industry connections for the business. This can be vitally important when advertising, or when looking for the best supplier. This also benefits the venture capitalists, as they feel they have an intimate involvement in the businesses activities. However some disadvantages include the fact that it is difficult for a business to secure a deal with a venture capitalist due to the accounting and legal risks that they have to take. A start-up company will also have to give up some ownership of the business to the venture capitalist investing in it.
In 1946 two brothers, Ben and Truitt Cathy, opened a diner in Atlanta Georgia called the Dwarf House Grill. The Dwarf House served a variety of typical grill food that included everything from burgers to hot dogs. All of that changed in 1961 when a poultry supplier stopped buy and sold Mr. Cathy chicken breast that were too large for the trays that they typically cooked the chicken on. Truitt Cathy decided that he did not want to throw out the chicken so he breaded the chicken and put it in the pressure fryer. He realized that he could cook the chicken in the same amount of time that it took to cook a hamburger and it tasted great. He had hamburger buns and pickles in the restaurant already and this is how the first chicken sandwich was made. In 1967 the first Chick-Fil-A store was opened in Atlanta’s Greenbrier Shopping Center and in 1986 the first freestanding franchise was opened. Today there are more than one thousand seven hundred Chick-Fil-A restaurants in thirty nine states. One of the ways that Chick-Fil-A has been able to make their company a success is through their unique approach to customer service. They are able to provide excellent customer service by turning individuals into team players. Teams can be seen in the hiring process, community involvement, national sponsorship, knowing what customers want, and cooperate culture. All of these different teams lead to excellence in customer service.
Aside from the loan programs mentioned above, there are many others available for prospective entrepreneurs. As the country 's economy slowly rises out of the shadows of recession, this is exactly the kind of assistance small businesses need to succeed and prosper. Now, which types of SBA financing programs appeal most to your entrepreneurial preference?
Chick-fil-A’s system is closely aligned with the TQM system because their primary concerns are quality in products and services, customer satisfaction and overall dining experience, and employee loyalty. Top -management focuses on the long-term rather than the short term results, which is one of the reasons they promote Chick-fil-A by giving away free meals. Dan Cathy the president of Chick-fil-A, Inc. said, “While others might think giving away so much is a shortsighted waste of money, we understand the return that will come from that investment” (Cathy, 2009). Customers will come for the free products and enjoy the experience so much; they will return and tell their friends and family. Chick-fil-A puts quality first in every aspect of the company. For example, Floor maintenance is very important at Chick-fil-A. It is the third largest
Chick-fil-A is affected by numerous external forces which challenge upper management’s ability to make Chick-fil-A "America’s best quick-service restaurant". Through intense strategic planning, based upon the vision, mission and corporate values, Chick-fil-A has been able to establish a unique position in a very competitive industry. The corporate purpose of Chick-fil-A, "To glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come into contact witch Chick-fil-A", their commitment to family and the community, and their sound business decisions, have made Chick-fil-A one of the most profitable and fastest growing quick-service restaurants in the nation.
John’s wife’s father purchased 3 Kentucky Fried Chicken restaurants in Waterloo Iowa. John and his wife, Marlynn Myers, moved into Marlynn’s parent’s home to manage the restaurants.
Eating has been one a great joy to me my entire life. It is a huge portion of everyone’s day, and for most, happens at least three times a day. If we eat three meals a day every day for a year that is one thousand and ninety five meals! With all these meals we need a nice place to sit down and enjoy it. Whenever I get hungry, I always find myself at Chick-fil-a; well, at least five times a week. The familiar sights, comforting scents, and soothing sounds of Chick-fil-A that make it the birthplace of happiness.
Thesis: Businesses deem financing necessary when they are just beginning, expanding, or recovering; Debt financing and equity financning have many advantages and disadvantages but also change the entire accounting method that is to be considered while running the business.
Adelman, P. J., & Marks, A. M. (2010). Entrepreneurial finance. (5 ed.). Bedford, Texas: Prentice Hall.
KFC is one of the most popular fast-food restaurant chains by the Yum! Brands and fried chicken is what the company specializes. KFC was founded by Harland Sanders, which was later known as Colonel Sanders. Moreover, KFC was one of the first fast-food restaurant chains to expand internationally, including the opening outlets in Beijing, China, in November 1987 (KFC Website, 2013). The fact that KFC was the first Western fast food company in China makes it very challenging to satisfy the Chinese market. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to apply for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating (Starvish, 2011). “One of the lessons I take away from this case is that to ...
... conclusion, to compete with the intense competition in today’s fast-food market, KFC China differentiates the company by being innovative. Three significant innovative strategies are localizing the menu, understanding the Chinese culture, and hiring local management. KFC demonstrates that one size fits all approach in the global market does not always work. Many typical Western approach to foreign expansion is to deliver the same products or services as their original establishment. For instance, Domino’s Pizza, an American restaurant chain, nearly failed in Australia due to the underestimation of the need to adapt their offerings to the local tastes. KFC China offers important lessons for global firms. It is essential to know that to what extend the company should keep the existing business model in emerging markets and to what extend it should be thrown away.
Selling whole chicken could limit the customers that the REB Chicken Dealer could supply in the market.
A business loan is a loan that is specifically intended for business use and as with all loans involves the creation of a debt, which will be repaid with added interest. The benefit of this type of loan is it specifically geared toward businesses and because of this will typically be secured against an asset owned by the business but can occasionally be an unsecured loan . The disadvantages of a business loan as a source of finance is that the interest the business will have to pay is non-negotiable, this means if the interest rates are high then you may have to look
They lack capability for planning and budgeting their operations. Most surveys, reported that many SMEs lack access to finance. But when analyzing their situation, it was found that SMEs lack knowledge on costing and pricing. This saw a need to first build up strong financial literacy and business planning. With such capacity, it then becomes feasible for SMEs to access bank loans.
Smaller companies are much more likely to obtain an attentive audience with a commercial loan officer after the start-up phase has been completed. In determining whether to extend debt financing--essentially, make a loan--bankers look first at general credit rating, collateral and your ability to repay. Bankers also closely examine the nature of your business, your management team, competition, industry trends and the way you plan to use the proceeds. A well-drafted loan proposal and business plan will go a long way in demonstrating your company's creditworthiness to the prospective lender.
(iii) Considerations of possible requirements of funds by the firm for expansion and diversification proposals for financing existing business requirements.