Wendy's Hamburgers Case Study Example | Topics and Well Written Essays - 1000 words

Wendy's Hamburgers - Case Study Example His desire to control his life and business is a good illustration of some of the basic entrepreneurial traits. Also, he has demonstrated open mindedness and innovation traits when decided to open burger restaurant with new innovative and creative ideas. When he has made a decision to shift to hamburgers, he made a decision to shift to the thing which he really liked. In such a way he has demonstrated his passion to do what he loves. Despite the skepticism and negative forecasts of experts he has made a decision to move forward with his idea. Thus, Dave has demonstrated optimism and belief in himself and his expertise, which is also critical for successful entrepreneur. 2. Dave’s success with the first Wendy’s restaurant can be attributed to an idea to offer fresh hamburgers of high quality. This was something new as the competitors offered hamburgers made from a frozen meat. Even though the market was saturated he has managed to find a unique selling point or the so called competitive advantage, which enabled his business to develop and grow despite fierce competition on the market. It is possible even to suggest that he has broken some stereotypes, as fast food is usually associated with bad quality and unhealthy food. Thus, fresh high quality fast food offered in Dave’s restaurant has contributed to shift in consumer’s perceptions about fast food. He has managed to satisfy customers’ needs and even exceed their expectations, making the restaurant profitable within the first weeks after the opening. 3. The phrase about the most difficult thing in running business is â€Å"being willing to listen to customers then doing whatever it takes to make your dream (and their wants) a reality† could be interpreted as Dave’s vision of his role as an entrepreneur. Dave is an entrepreneur who pursues his own dream, and chooses optimal

Case study Gary hart Assignment Example | Topics and Well Written Essays - 2250 words

Case study Gary hart - Assignment Example 12,000 incurred the first week Analysis of revenues Revenue per day: 75%*60*24=?1,080 Payment in cash per day: 50%*1,080=?540 Revenue per month: 1,080*24=?25,920 Revenue per quarter: 25,920*3=?77,760 50% of daily sales are credit sales payable four weeks later Assumptions 1. Gary purchases ingredients once every month. 2. Waiting staff salaries and social security costs are payable every month. a. Gary’s Restaurant Trading cash budget For the year ended December 31, XXXX Quarter total 1 2 3 4 ? ? ? ? ? Cash b/f 48,484 126,364 213,248 Add receipts Cash sales 38,880 38,880 38,880 38,880 155,520 Collection from credit sales 77,760 77,760 77,760 77,760 311,040 Total cash available (A) 116,640 165,124 243,004 329,888 854,656 Less disbursement Kitchen staff 14,300 14,300 14,300 14,300 57,200 Waiting staff 3,432 3,432 3,432 3,432 13,728 Social security costs 5,200 5,200 5,200 5,200 20,800 Utilities 0 2,600 2,600 2,600 7,800 Rent 30,000 10,000 0 0 40,000 Council tax 2,000 2,000 2,000 2,000 8,000 Advertizing 12,000 0 1,000 1,000 14,000 Cost of ingredients 1,224 1,224 1,224 1,224 4,896 Total (B) 68,156 38,756 29,756 29,756 166,424 Cash balance (A-B) 48,484 126,364 213,248 300,132 688,228 b. ... ? Assets Current assets Debtors 9,720 Prepaid council tax 2,000 Fixed assets 50,000 61,720 Liabilities Creditors 0 Utilities due 650 Capital 61,070 61,720 Assumptions 1. The restaurant will pay all bills as they fall due, therefore there will be no creditors. 2. Utilities will be due since they are paid for the at the beginning of the following quarter; therefore those falling due December will be paid for beginning of January the following financial year. 3. I approximated the value of the restaurant’s fixed assets to be ?50,000 by the end of the first year. d. Gary’s Restaurant Weekly cash budget For the first month of operation Week 1 2 3 4 ? ? ? ? Cash b/f (27,240) (24,000) (21,168) Add receipts Cash sales 3,240 3,240 3,240 3,240 Credit sales 3,240 Total cash available (A) 3,240 (24,000) (20,760) (14,688) Less disbursement Kitchen staff 4,766.67 Waiting staff 1,144 Social security costs 1,733.33 Rent 10,000 Council tax 2,000 Advertizing 12,000 Cost of ingredients 40 8 Total (B) 30,480 408 7,644 Cash balance (A-B) (27,240) (24,000) (21,168) (22,332) Assumptions 1. Ingredients are ordered for and delivered within the first week, whereas their payment is made in the third week. 2. Staff salaries and security costs are paid for in the fourth week, assumed to be the end of month. 3. Gary’s restaurant will begin its operations in January, hence being the first moth of the restaurant’s operations. Working cash is the amount of money required for day to day operations within a business. This is a business’ capital in liquid currency that is necessary for purchasing assets to be used by the business and meeting various obligations of the business. Working cash of a business can also refer to the ability of a business to meet its liabilities and expenses that