COMPETITIVE ENVIRONMENT
As in every business sectors the presence of other competitors must be felt.in the early stage of this business,venture capitalist have to be attracted to be able to make sure that this business should expirence a steady growth rate (WETZEL, 1990).Given their high level of experience in managing past business,working together with other knowledgable employees,it will be easier to penetrate the competitive environment.Here it is important to know who are your customers.To be able to exploit the competitive environment,it is important to identify your competitor ,know their strength and their weakness.Identify at what price are they selling their products,what are the different communication tools are they using, also
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FINANCE. Most businesses in their first year have the problem or difficulties to prove their worth in order to have financial benefits (Robort Wiltbank, 2009).In this light most businessees generate their finance from personal savings and some times from friends.due to this lack of sufficient capital it may be difficult for the firm to make surplus profit as most at times they can manage to stike a balance.In this …show more content…
TOTAL CAPITAL:5000,000frs
EXPENDITURE:
Cost of chicks- 1000,000frs
Equipments and Rents- 1000,000frs
Labour - 2200,000frs
Promotion and Publicity – 800,000frs
TOTAL EXPENDITURE: 5000,000FRS
After runingthe business for one year,the estimated cash in flow will
In order to determine the value of operations, and using proforma income statement and balance sheet statement, Cash flow statement was formulated for the next 5 years. The Account Receivables plus the Inventory minus the Account Payable was determined as Net Operating Working Assets. An organization cost of 0,000 was amortized over the 5-year period.
... discuss whether the business needs to raise more finance, by selling more shares of their business. And also maybe becoming a LTD and selling shares to other people rather than just friends and family.
There is an enormous prospect for the Pkolino Company to start a business. The current task has adequate resources and a great plan to keep it operational. Nevertheless, dangers that might plunge Pkolino Company into financial disaster are also present. This is due to the fact that there are always a couple of things that tend to advance in an unanticipated direction even in a well- planned plan. For instance, P’kolino Company’s financial statements do not have provisions for the worst, average, and best scenarios.
Another acute problem is the costs of small and medium business. The problem is that most businesses in the Kingdom are either government or belonging to ...
Overall Revive Marketing is doing well based on the performance on its income statement, and a positive profit has been recognised. However, its cash position does not show any sign of improvement. This report discusses the reasons of this issue in two aspects, the nature of the profit figure in income statement and the accounting method has been applied in recording.
The members have been generating client bases in their own related businesses since 1999, previously, the members enjoyed mild success in their own businesses, and have been limited only by capital and available time.
Cash is needed to keep the business running on a continuous basis. So the organization should have sufficient cash to meet various requirement. The above graph is indicate that in 2011-12the cash is .039 crores but in 2012-13 it has increase to2.64 Crores & in 2012-13 it is increased to 2.39Crorse. in 2013-14, it is increased up to approx. 5.13% cash balance. So in 2010-11, the company has no problem for meeting its requirement as compare to 2011-12.
This is based on the fact that having too much capital implies inefficiency, where as too little cash in hand indicates that the survival of the company is shaky. Most businesses do not hold the right amount of stock, debtors and cash. Due to this reason the firm is unable to meet its maturing short-term obligations and its upcoming operational needs. Lack of adequate working capital also means that a company is unable to undertake expansion projects and increase its sales, therefore limiting the growth and profitability of the businesses. Thai Beverage Public Company Limited is one of largest companies in Thailand, which is ranked up to 10 largest companies by market cap in SGX. Thus, there are many investors who are interested in ThaiBev. However, the investors also need to know the financial KPI analysis in order to make decision in investment in ThaiBev. One of the important KPI is Working Capital Management. This comes the main research question: “ Does Thai Beverage Public Company Limited have the efficiency in working capital management?” But in order to answer this main question, a detailed research has to be implemented. Therefore, this study attempts to answer the following sub-questions:
The shareholders of Event Planners Ltd; a business specialised in planning events such as birthdays, weddings, etc., are disturbed regarding the unprofitable state of the business and the cash flow problem the business faces in recent times. This report discusses the importance of cash and profit for business survival, outlines how the problem of cash flow arises, effects of cash flow problems for the business, and identifies methods for dealing with cash flow problems. It gathered and applied information from several sources such as academic articles, reports, and documents, assumed to be credible enough for the discussions.
their management team, develop their product, build a business plan and the likes. An environment that
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.
Financial management is an aspect of management that small business owners need to be proficient in because it is regarded as one of the factors that increases start-up and new firm survival rates (Orford, Herrington & Wood 2004). However, it is also one of the skills that are required when growth is planned (Roodt 2005). Gitman (2010) and Marx, J., De Swardt, C., Beaumont-Smith, M. & Erasmus, P. (2010) state that, in addition to financing, the financial manager must ensure that cash is managed efficiently so that the business can become profitable. The study of He, L. (2010) state that Chinese SME’s pay more attention to profits rather than cash flow in daily evaluation. While the study of Fraker, G. (2011) asserts that failed restaurants often had inadequate financial management, including weak controls (cash and inventory). Schwarze, C. L. (2008) asserted that enterprise owners first acquire financial management skills to achieve short-term goals in order to survive, and at a later stage, acquire financial management skills for long-term decision making as their business
Competitors are all looking for the same customer base (Bethel University, 2011). Sometimes it is difficult to identify the competitor. According to Kotabe and Murray (2004) , “History has shown repeatedly that in a highly competitive environment many manufacturers begin to either produce in lower-cost locations or outsource components and finished products from lower-cost producers on a contractual original equipment manufacture (OEM) basis” (p.7). Understanding the competitor, gives a manager the ability to make a plan to gain the market advantage (Bethel University, 2011). New entrants join the list of competitors within the given market. Depending on which market an organization is in, can determine how complicated it is for a new entrant to enter that market (Bethel University,
This research present paper examines the financial performance of identified units in the steel industry in India in terms of working capital management. Working capital management refers to the administration of all components of working capital cash, marketable securities, debtors and stock and creditors. Working capital is one of the powerful measurements of the financial position. The words of H. G. Guthmann clearly explain the importance of working capital. “Working Capital is the life blood and nerve center of the business. The goal of working capital management is to manage the firm’s current assets and current liabilities in such a way that a satisfactory level of working capital is maintained. In several units, there is adequate working capital but the mismanagement of working capital increases the costs and reduces the rate of return. The efficient management of working capital minimizes the cost and can do
If there is sufficient working capital than we can assume that it has sound financial position and if the business is under trading than there will be increment in liquid assets which shows that the funds are not been utilized and kept ideal.