Case Study freeman and partners case study.pdf - Case study Perfect Pizza Pty Ltd COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 WARNING This

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Unformatted text preview: Case study Perfect Pizza Pty Ltd COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 WARNING This material has been reproduced and communicated to you by or on behalf of the Institute of Chartered Accountants in Australia pursuant to Part VB of the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice. Every reasonable effort has been made to contact relevant copyright holders of published material. Where this has not proved possible, copyright holders are invited to contact the publisher. Copyright owners are entitled to take legal action against persons who infringe their copyright. A reproduction of material that is protected by copyright may be a copyright infringement. Certain dealings with copyright will not constitute an infringement, including: > a reproduction that is a fair dealing under the Copyright Act 1968 (the Act), including a fair dealing for the purposes of research or study; or > a reproduction that is authorised by the copyright owner. It is a fair dealing to make a reproduction for the purposes of research or study, of one or more articles on the same subject in a periodical publication, or, in the case of any other work, of a reasonable portion of a work. In the case of a published work in hard copy form that is not less than 10 pages and is not an artistic work, 10% of the number of pages, or one chapter, is a reasonable portion. In the case of a published work in electronic form only, a reasonable portion is not more than, in the aggregate, 10% of the number of words in the work. More extensive reproduction may constitute fair dealing. To determine whether it does, it is necessary to have regard to the criteria set out in subsection 40(2) of the Act. A court may impose penalties and award damages in relation to offences and infringements relating to copyright material. Higher penalties may apply, and higher damages may be awarded, for offences and infringements involving the conversion of material into digital or electronic form. Contents Background 1 History 1 Branding 1 Franchising 1 Operations 3 Vision and strategy 3 Governance 4 Board 4 Management 4 The future 5 Expansion alternatives 5 Financial statements for Perfect Pizza Pty Ltd 6 Appendix 1 7 Meeting notes 7 Appendix 2 8 Fast food industry in Australia 8 Appendix 3 10 Reserve Bank economic outlook 10 Ethics & Business Application (2) 2012 • Case study: Perfect Pizza Pty Ltd C D Case study: Perfect Pizza Pty Ltd • Ethics & Business Application (2) 2012 This case study has been reproduced and adapted with permission from New Zealand Institute of Chartered Accountants (NZICA). We are grateful to NZICA for its co-operation with this project. Background History Perfect Pizza Pty Ltd (Perfect Pizza), a privately owned company, oversees a chain of pizza stores and restaurants around Victoria, many of which are operated on a franchise basis. The company was established in Melbourne in 2000 by Gino Mazzarella Š—ȱ ‘’œȱ ’Žȱ ŽŠǯȱ ‘Ž’›ȱ ꛜȱ ›ŽœŠž›Š—ȱ Šœȱ ’—ȱ ȱ ’•Šǰȱ ’‘ȱ Šȱ œŽŒ˜—ȱ ˜™Ž—’—ȱ ’—ȱ Richmond a few months later. The restaurants were successful because the pizzas were Ž•’Œ’˜žœǰȱ‹Ž’—ȱ‹ŠœŽȱ˜—ȱŠȱŽ ȱ˜›”ȱȁ‘’—ȱŒ›žœȂȬœ¢•ŽǰȱŠ—ȱŽ•’ŸŽ›ŽȱŠȱŠȱŒ˜—œ’œŽ—•¢ȱ ‘’‘ȱœŠ—Š›ȱ˜ȱŒžœ˜–Ž›œǯȱ —’’Š••¢ǰȱ ‘Žȱ ‹žœ’—Žœœȱ ™•Š—ȱ ’—Ÿ˜•ŸŽȱ ›ŽŠœ˜—Š‹•¢ȱ ™›’ŒŽȱ ˜˜ȱ ’—ȱ Šȱ ȁœ’Ȭ˜ —Ȃȱ ›ŽœŠž›Š—ȱ ˜›–Šǯȱ —ȱ ŘŖŖřǰȱ ‘Žȱ –Š—ŠŽ–Ž—ȱ ›ŽŠ•’œŽȱ ‘Šȱ ‘˜–Žȱ Ž•’ŸŽ›¢ȱ Šœȱ Šȱ ›˜ ’—ȱ Š›ŽŠȱ ˜ȱ the pizza restaurant business and a service that Perfect Pizza needed to provide. Home Ž•’ŸŽ›¢ȱ’œȱ—˜ ȱŠȱ–Š“˜›ȱ™Š›ȱ˜ȱŽ›ŽŒȱ’££ŠȂœȱ˜™Ž›Š’˜—œǰȱ ‘’Œ‘ȱ‘ŠŸŽȱ›˜ —ȱ›Š™’•¢ȱŠ—ȱ are expected to continue to do so. The business has now expanded in to a chain of 53 stores around Victoria, 15 of which Š›Žȱ Œ˜–™Š—¢Ȭ˜ —Žǰȱ ’‘ȱ ‘Žȱ ›Ž–Š’—’—ȱ řŞȱ ‹Ž’—ȱ ›Š—Œ‘’œŽȱ œ˜›Žœǯȱ ‘Žȱ ŗśȱ Œ˜–™Š—¢Ȭ ˜ —Žȱœ˜›Žœȱ‘ŠŸŽȱ‹˜‘ȱ’—ŽȬ’—ȱ›ŽœŠž›Š—ȱŠ—ȱŠ”ŽŠ Š¢ȦŽ•’ŸŽ›¢ȱŠŒ’•’’Žœǰȱ ‘Ž›ŽŠœȱ‘Žȱ ›Š—Œ‘’œŽȱ˜ž•ŽœȱŠ›Žȱœ˜•Ž•¢ȱŠ”ŽŠ Š¢ȦŽ•’ŸŽ›¢ȱœ˜›Žœǯȱ In addition to traditional pizzas, the Perfect Pizza menu has been extended to include ˜‘Ž›ȱ Š•’Š—ȱŠœȱ˜˜ȱ’Ž–œǰȱ’—Œ•ž’—ȱŒŠ•£˜—ŽœǰȱŠȱŸŠ›’Ž¢ȱ˜ȱ™ŠœŠȱ’Ž–œǰȱŠ—ȱŠȱ•’–’Žȱ ›Š—Žȱ˜ȱŽœœŽ›œǯ Branding ‘ŽȱŒ˜–™Š—¢ȱ‘Šœȱœ›˜—ȱ‹›Š—ȱ›ŽŒ˜—’’˜—ȱ’—ȱ’Œ˜›’Šǰȱ ‘’Œ‘ȱ‘ŠœȱŽŸŽ•˜™ŽȱŒ˜—’—ž˜žœ•¢ȱ œ’—ŒŽȱ ‘Žȱ Œ˜–™Š—¢ȱ ‹ŽŠ—ǯȱ ‘Žȱ ’—‘Ž›Ž—ȱ œ›Ž—‘ȱ ˜ȱ ‘Žȱ ‹›Š—ȱ ’œȱ Ž—‘Š—ŒŽȱ ‹¢ȱ œ›˜—ȱ Š—ȱ ’——˜ŸŠ’ŸŽȱ ™›˜–˜’˜—Š•ȱ ŠŒ’Ÿ’’Žœȱ ž—Ž›Š”Ž—ȱ ’—ȱ ™Š›—Ž›œ‘’™ȱ ’‘ȱ ›Š—Œ‘’œŽŽœȱ ’—ȱŠŒŒ˜›Š—ŒŽȱ ’‘ȱ‘Ž’›ȱ›Š—Œ‘’œŽȱŠ›ŽŽ–Ž—œǯ ‘ŽȱŒ˜–™Š—¢Ȃœȱ‹›Š—ȱ’œȱ‹ŠœŽȱ˜—ȱ’œȱž—’šžŽȱœ¢•Žȱ˜ȱ™’££ŠȱŽ•’ŸŽ›ŽȱŠȱŠȱŒ˜—œ’œŽ—•¢ȱ‘’‘ȱ œŠ—Š›ȱ˜ȱ’œȱŒžœ˜–Ž›œǯȱȱŽ›ŽŒȱ’££Šȱ™’££Šȱ’œȱŽšžŠ••¢ȱŽ•’Œ’˜žœȱ ‘Ž‘Ž›ȱ˜›Ž›Žȱ’—ȱ •‹ž›¢ǰȱŽ•‹˜ž›—Žȱ˜›ȱ ŽŽ•˜—ǯȱ ˜ ŽŸŽ›ǰȱ‘Žȱ‹›Š—ȱŽ¡Ž—œȱ‹Ž¢˜—ȱ˜˜ȱšžŠ•’¢ȱ˜ȱ‘Žȱ Ž—’›Žȱ Ž¡™Ž›’Ž—ŒŽȱ Ž•’ŸŽ›Žȱ ˜ȱ Œžœ˜–Ž›œǰȱ ‘Ž‘Ž›ȱ ’—Ȭ‘˜žœŽȱ ˜›ȱ ‘›˜ž‘ȱ ‘˜–Žȱ Ž•’ŸŽ›¢ǯȱ ‘’œȱ –ŽŠ—œȱ ‘Žȱ žœŽȱ ˜ȱ šžŠ•’¢ȱ ’—›Ž’Ž—œǰȱ Œ˜—œ’œŽ—ȱ Š—ȱ ‘¢’Ž—’Œȱ ˜˜ȱ ™›˜žŒ’˜—ǰȱ Œ•ŽŠ—ȱ Š—ȱ ŠĴ›ŠŒ’ŸŽȱ ™›Ž–’œŽœǰȱ Œ˜—œ’œŽ—ȱ œ’—ŠŽȱ Š—ȱ ™ŠŒ”Š’—ǰȱ Ž••Ȭ›Š’—Žȱ Š—ȱ œŽ›Ÿ’ŒŽȬ–’—ŽȱŽ–™•˜¢ŽŽœǰȱŠ—ȱœ™ŽŽȱ˜ȱŽ•’ŸŽ›¢ǯȱ The reputation of Perfect Pizza in Victoria is such that many Victorians see Perfect Pizza Šœȱȁ‘Ž’›Ȃȱ™’££Šǰȱ ’‘ȱ—˜ȱŒ˜–™Š›Š‹•Žȱ˜ěŽ›’—ȱŠ—¢ ‘Ž›ŽȱŽ•œŽȱ’—ȱ‘ŽȱŒ˜ž—›¢ǯ Franchising ›Š—Œ‘’œ’—ȱ ŽœŒ›’‹Žœȱ ‘Žȱ ‹žœ’—Žœœȱ ›Ž•Š’˜—œ‘’™ȱ ’—ȱ ‘’Œ‘ȱ Ž›ŽŒȱ ’££Šȱ ǻ‘Žȱ ›Š—Œ‘’œ˜›Ǽȱ ›Š—œȱ˜ȱŽŠŒ‘ȱ›Š—Œ‘’œŽŽȱ‘Žȱ›’‘ȱ˜ȱ˜™Ž›ŠŽȱŠȱ™’££Šȱ‹žœ’—ŽœœȱœŽ••’—ȱ™›˜žŒœȱŠ—ȱœŽ›Ÿ’ŒŽœȱ ŽŸŽ•˜™Žȱ‹¢ȱŽ›ŽŒȱ’££Šȱž—Ž›ȱŽ›ŽŒȱ’££ŠȂœȱ‹žœ’—Žœœȱ’Ž—’¢ȱŠ—ȱ‹›Š—ǯ Ethics & Business Application (2) 2012 • Case study: Perfect Pizza Pty Ltd 1 Ž›ŽŒȱ’££Šȱ‘ŠœȱŽ–‹›ŠŒŽȱ›Š—Œ‘’œ’—ȱ’—ȱ˜›Ž›ȱ˜ȱ›˜ ȱ‘Žȱ‹›Š—ȱŠœŽ›ǰȱŠ—ȱ™›˜Ÿ’Žœȱ Šȱ ’ŽȱŸŠ›’Ž¢ȱ˜ȱœž™™˜›ȱ˜›ȱ’œȱ›Š—Œ‘’œŽŽœǯȱ‘’œȱœž™™˜›ȱ’—Œ•žŽœȱ‘Žȱ˜••˜ ’—DZ 1. Entry standards for new franchisees ȱ ‘’œȱŸŠ›’ŽœȱŠŒŒ˜›’—ȱ˜ȱ‘Žȱ‹ŠŒ”›˜ž—ȱ˜ȱ‘Žȱ›Š—Œ‘’œŽŽǰȱ‹žȱ‘Žȱ˜••˜ ’—ȱŠŒ˜›œȱ ’••ȱ—˜›–Š••¢ȱ‹ŽȱŒ˜—œ’Ž›Žȱ’—ȱŽŽ›–’—’—ȱ ‘Ž‘Ž›ȱ˜ȱ’œœžŽȱŠȱ›Š—Œ‘’œŽȱ•’ŒŽ—ŒŽDZ ǻŠǼȱ Šȱ‹Ž•’Žȱ’—ȱ‘ŽȱŽ›ŽŒȱ’££Šȱ‹›Š—ȱŠ—ȱŠȱ ’••’——Žœœȱ˜ȱŒ˜—˜›–ȱ˜ȱœŠ—Š›œȱŠ—ȱ practices (b) an entrepreneurial spirit ǻŒǼȱ ŠȱŒ˜––’–Ž—ȱ˜ȱŒžœ˜–Ž›ȱœŽ›Ÿ’ŒŽȱŠ—ȱ‹Ž’—ȱ™Ž›œ˜—Š••¢ȱ’—Ÿ˜•ŸŽȱ’—ȱ‘Žȱ‹žœ’—Žœœ ǻǼȱ Šȱ™›˜ŸŽ—ȱ–Š—ŠŽ›’Š•ȱ›ŠŒ”ȱ›ŽŒ˜› ǻŽǼȱ Ÿ’œ’˜—ȱŠ—ȱŽ—‘žœ’Šœ–ȱ˜›ȱ‘Žȱ•˜—ȬŽ›–ȱ›˜ ‘ȱ˜ȱ‘Žȱ‹žœ’—Žœœ ǻǼȱ ›ŽŠ’•ȱŠ—Ȧ˜›ȱŠœȱ˜˜ȱŽ¡™Ž›’Ž—ŒŽǰȱ ‘’Œ‘ȱ’œȱŽœ’›Š‹•Žȱ‹žȱ—˜ȱ—ŽŒŽœœŠ›¢ǯ 2. Human resources (HR) ȱ Ž›ŽŒȱ ’££Šȱ Šœœ’œœȱ ’‘ȱ Š••ȱ ȱ ŠŒ’Ÿ’’Žœǰȱ ’—Œ•ž’—ȱ ™›˜Ÿ’’—ȱ ›Š—Œ‘’œŽŽœȱ ’‘ȱ ŠŒ’•’’Žœȱ˜›ȱ‘ŽȱŽȬ›ŽŒ›ž’–Ž—ȱ˜ȱ›ŽœŠž›Š—ȱœŠěǯ 3. Training ȱ Ž›ŽŒȱ’££Šȱ™›˜Ÿ’ŽœȱŠ—ȱŽ¡Ž—œ’ŸŽȱ›Š’—’—ȱ™›˜›Š–ȱ˜›ȱ—Ž ȱ›Š—Œ‘’œŽŽœǯȱ‘’œȱŠ”Žœȱ ‹Ž ŽŽ—ȱ ꟎ȱ Š—ȱ Ž’‘ȱ ŽŽ”œǰȱ Ž™Ž—’—ȱ ˜—ȱ ŽŠŒ‘ȱ ™˜Ž—’Š•ȱ ›Š—Œ‘’œŽŽȂœȱ ™Šœȱ Ž¡™Ž›’Ž—ŒŽǰȱœ”’••œȱŠ—ȱ”—˜ •ŽŽǯȱ‘Žȱ›Š’—’—ȱ’—Œ•žŽœȱ‹˜‘ȱ’—Ȭœ˜›ŽȱŠ—ȱŒ•Šœœ›˜˜–ȱ ›Š’—’—ȱ œŽœœ’˜—œǰȱ Š—ȱ ‹ž’•œȱ ”—˜ Ȭ‘˜ ȱ ’—ȱ Š••ȱ Š›ŽŠœȱ ˜ȱ œ˜›Žȱ ˜™Ž›Š’˜—œǰȱ ’—Œ•ž’—ȱ –Š›”Ž’—ǯȱ›˜ęŒ’Ž—Œ¢ȱ–žœȱ‹ŽȱŽ–˜—œ›ŠŽȱ‹¢ȱ‘Žȱ›Š’—ŽŽȱŠȱŸŠ›’˜žœȱœŠŽœȱ’—ȱ‘Žȱ ›Š’—’—ȱ™›˜›Š–ȱ‹Ž˜›Žȱ‘Ž¢ȱŒŠ—ȱ™›˜›Žœœȱ˜ȱ‘Žȱ—Ž¡ȱœŠŽǯ 4. Ingredients and packaging ȱ ˜ȱ Ž—œž›Žȱ ž—’˜›–’¢ȱ ˜ȱ ’–ŠŽȱ Š—ȱ šžŠ•’¢ȱ ’—ȱ Š••ȱ œ˜›Žœǰȱ Ž›ŽŒȱ ’££ŠȂœȱ ŒŽ—›Š•ȱ ‘ž‹ȱ ™›˜Ÿ’Žœȱ Š••ȱ ‹Šœ’Œȱ ’—›Ž’Ž—œǰȱ Š—ȱ ™˜’—Ȭ˜ȬœŠ•Žȱ Š—ȱ ™ŠŒ”Š’—ȱ –ŠŽ›’Š•œǯȱ ••ȱ’—›Ž’Ž—œȱŠ›Žȱ™›˜Ÿ’Žȱ˜ȱ›Š—Œ‘’œŽŽœȱŠȱŒ˜œȱ™•žœȱŘǯśƖǯȱ˜œȱ’—Œ•žŽœȱ™ž›Œ‘ŠœŽȱ ™›’ŒŽȱ™•žœȱ›Š—œ™˜›ǯȱ‘ŽȱŘǯśƖȱŒ˜ŸŽ›œȱŒ˜œœȱŠœœ˜Œ’ŠŽȱ ’‘ȱŽ›ŽŒȱ’££ŠȂœȱŒŽ—›Š•’œŽȱ ‹ž¢’—ȱŠ—ȱ’œ›’‹ž’˜—ȱ’Ÿ’œ’˜—œDZ Ȯȱ ›Š—Œ‘’œŽŽœȱ‘ŠŸŽȱ˜ȱ™Š¢ȱ˜›ȱ’—œž›Š—ŒŽȱ›˜–ȱ ‘Ž—ȱ‘Žȱ˜˜œȱŠ›Žȱœ‘’™™ŽǰȱŠ—ȱ‘Ž¢ȱ Š›Žȱ›Žœ™˜—œ’‹•Žȱ˜›ȱœ‘’™™’—ȱ‘Žȱ˜˜œǯ Ȯȱ ŠŒ”Š’—ȱŒŠ—ȱ‹Žȱ›Žž›—Žȱž™ȱ˜ȱŜŖȱŠ¢œȱŠĞŽ›ȱœŠ•Žǯȱ‘’œȱ’œȱ˜ȱŽ—œž›Žȱ‘Šȱ™ŠŒ”Š’—ȱ ’œȱž™ȱ˜ȱŠŽȱŠ—ȱŠ—¢ȱ™›˜–˜’˜—Š•ȱ™ŠŒ”Š’—ȱŒŠ—ȱ‹Žȱ›Žž›—Žȱ ’‘˜žȱŒ˜œȱ˜ȱ‘Žȱ franchisee. All orders received are dispatched to stores within 24 hours. 5. Marketing support ȱ ‘’œȱ’—Œ•žŽœȱŽ•ŽŸ’œ’˜—ǰȱ›Š’˜ȱŠ—ȱ Ž‹œ’ŽȱŠŸŽ›’œ’—ǰȱ™•žœȱ—Ž ȱ™›˜žŒȱŽŸŽ•˜™–Ž—ȱ and promotion. 6. Franchise terms ȱ ‘ŽȱžœžŠ•ȱ›Š—Œ‘’œŽȱŠ›ŽŽ–Ž—ȱŽ›–ȱ’œȱ꟎ȱ¢ŽŠ›œǰȱ ’‘ȱ™›˜Ÿ’œ’˜—ȱ˜›ȱ›Ž—Ž Š•ȱ‹ŠœŽȱ ˜—ȱ ‘Žȱ ›Š—Œ‘’œŽŽȱ –ŽŽ’—ȱ ŒŽ›Š’—ȱ ›Žšž’›Ž–Ž—œǯȱ ‘’œȱ ’œȱ •Žœœȱ ›Žœ›’Œ’ŸŽȱ ‘Š—ȱ –Š—¢ȱ Œ˜–™Ž’—ȱŠœȱ˜˜ȱ›Š—Œ‘’œŽœȱ’—ȱ’Œ˜›’Šǰȱ ‘’Œ‘ȱ˜ĞŽ—ȱ‘ŠŸŽȱŽ›–œȱ˜ȱŗŖȱ¢ŽŠ›œȱ™•žœȱ Šȱ›’‘ȱ˜ȱ›Ž—Ž Š•ǯ 7. Investment required ȱ 2 ‘’œȱŸŠ›’ŽœȱŠŒŒ˜›’—ȱ˜ȱ’—’Ÿ’žŠ•ȱŒ’›Œž–œŠ—ŒŽœǰȱ‘Žȱ•Š—•˜›Ȃœȱœ’ŽȱŒ˜—›’‹ž’˜—œǰȱ‘Žȱ œ’£Žȱ˜ȱ‘Žȱ™›Ž–’œŽœǰȱŠ—ȱ‘Žȱ•ŽŸŽ•ȱŠ—ȱ¢™Žȱ˜ȱŽšž’™–Ž—ǯȱ ȱžœžŠ••¢ȱ›Š—Žœȱ‹Ž ŽŽ—ȱ $350,000 and $450,000. Case study: Perfect Pizza Pty Ltd • Ethics & Business Application (2) 2012 8. Franchise fee ȱ ›Š—Œ‘’œŽŽœȱ ™Š¢ȱ Šȱ ŽŽȱ ŽšžŠ•ȱ ˜ȱ ŜƖȱ ˜ȱ ›ŽŸŽ—žŽǯȱ ‘’œȱ ’œȱ ˜ȱ Œ˜ŸŽ›ȱ Ž›ŽŒȱ ’££ŠȂœȱ Œ˜œœȱ Šœœ˜Œ’ŠŽȱ ’‘ȱ–Š›”Ž’—ǰȱ—Ž ȱ™›˜žŒȱŽŸŽ•˜™–Ž—ǰȱ›Š’—’—ȱŠ—ȱŽ—Ž›Š•ȱœž™™˜›ǯ ȱ ȱ ¢™’ŒŠ•ȱ ›Š—Œ‘’œŽŽȱ ’œȱ Š—ȱ ˜ —Ž›Ȧ˜™Ž›Š˜›ȱ ‘˜ȱ ˜ —œȱ ˜—Žȱ ˜ž•Žǰȱ Š•‘˜ž‘ȱ ‘Ž›Žȱ Š›Žȱ œ˜–Žȱ ›Š—Œ‘’œŽŽœȱ ‘˜ȱ ˜ —ȱ –ž•’™•Žȱ ˜ž•Žœǯȱ —ȱ Ž¡Š–™•Žȱ ˜ȱ Šȱ –ž•’™•ŽȬ˜ž•Žȱ ›Š—Œ‘’œŽŽȱ ’œȱ ŽŠȱ Š££Š›Ž••ŠȂœȱ œ’œŽ›ǰȱ ŽŽȱ Š›—Žœǰȱ ‘˜ȱ Šœȱ Ž›ŽŒȱ ’££ŠȂœȱ ŸŽ›¢ȱ ꛜȱ ›Š—Œ‘’œŽŽȱŠ—ȱ—˜ ȱ˜ —œȱ꟎ȱœžŒŒŽœœž•ȱ˜ž•ŽœȱŠ›˜ž—ȱŽ•‹˜ž›—Žǯ Operations ‘Žȱ ”Ž¢ȱ ˜ȱ ŽěŽŒ’ŸŽȱ Š—ȱ ŽĜŒ’Ž—ȱ ˜™Ž›Š’˜—œȱ ’œȱ ‘Šȱ ŽŠŒ‘ȱ ˜ȱ ‘Žȱ Œ˜–™Š—¢Ȃœȱ śřȱ ˜ž•Žœȱ ™›˜Ÿ’ŽœȱŒ˜—œ’œŽ—•¢ȱ‘’‘ȱšžŠ•’¢ȱ–ŽŠ•œǯȱ ȱ’œȱ—˜ȱ“žœȱŒ˜—œ’œŽ—Œ¢ȱ˜ȱ˜˜ȱšžŠ•’¢ȱ‘Šȱ‘Žȱ œ˜›Žœȱ™›˜Ÿ’ŽȱȮȱŠ•‘˜ž‘ȱ—˜‘’—ȱ’œȱ–˜›Žȱ’–™˜›Š—ȱȮȱ‹žȱŠ•œ˜ȱŒ˜—œ’œŽ—Œ¢ȱŠ—ȱ›Ž•’Š‹’•’¢ȱ of the entire experience that is delivered to their customers. ‘Ž›Ž˜›ŽǰȱŽ›ŽŒȱ’££ŠȂœȱŒ˜›ŽȱŒ˜–™ŽŽ—Œ¢ȱ’œȱ’œȱŠ‹’•’¢ȱ˜ȱ›Š—œ•ŠŽȱ’œȱ’—›Ž’Ž—œǰȱ›ŽŒ’™Žœǰȱ œ¢œŽ–œȱŠ—ȱ–Š›”Ž’—ȱ˜ȱŽ•’ŸŽ›ȱ‹˜‘ȱ‘Žȱ˜˜ȱŠ—ȱ‘Žȱ˜Š•ȱŽ¡™Ž›’Ž—ŒŽȱ˜—ȱŠȱŒ˜—œ’œŽ—ȱ ‹Šœ’œȱ’—ȱŠ••ȱ’œȱœ˜›ŽœȱŠ›˜ž—ȱ‘ŽȱŠŽǯȱ ȱ’œȱ’—ȱ‘Žȱ–Š›œ‘Š••’—ȱ˜ȱ‘ŽœŽȱœ¢œŽ–œȱȮȱ‘ŽȱŒŠ›Žž•ȱŠ—ȱ’—Ž••’Ž—ȱ™›˜Œž›Ž–Ž—ȱ˜ȱšžŠ•’¢ȱ ’—›Ž’Ž—œǰȱ ‘Žȱ ŽĜŒ’Ž—ȱ ’œ›’‹ž’˜—ȱ ‘›˜ž‘˜žȱ ’œȱ ›ŽŠ’•ȱ —Ž ˜›”ǰȱ ‘Žȱ Ž–™•˜¢–Ž—ȱ ˜ȱ ŠŸŠ—ŒŽȱ›ŠŒ”’—ȱŽŒ‘—˜•˜¢ȱ˜ȱ–Ž’Œž•˜žœ•¢ȱ›ŠŒ”ȱŠ—ȱ›Ž™˜›ȱ˜—ȱŒ˜œœǰȱœŠ•Žœǰȱ–Š›’—œȱ Š—ȱ ›Ž™•Ž—’œ‘–Ž—ȱ Ȯȱ ‘Šȱ Ž›ŽŒȱ ’££Šȱ –Š¡’–’œŽœȱ ’œȱ ’ŸŽ›œŽȱ œ”’••œȱ ˜›ȱ ‘Žȱ ™›˜ęŠ‹•Žȱ –Š—ŠŽ–Ž—ȱ˜ȱ‘ŽȱŒ˜–™Š—¢ȱŠ—ȱ’œȱ›Š—Œ‘’œŽŽœǯȱ ˜ȱ ŠŒ’•’ŠŽȱ ‘’œǰȱ Ž›ŽŒȱ ’££Šȱ ˜™Ž›ŠŽœȱ Šȱ ”’Œ‘Ž—ȱ Š—ȱ Š›Ž‘˜žœŽȱ ’—ȱ Ž•‹˜ž›—ǰȱ ›˜–ȱ ‘’Œ‘ȱŒ˜›Žȱ’—›Ž’Ž—œȱŠ›Žȱ–’¡ŽȱŠ—ȱ’œ™ŠŒ‘Žȱ˜ȱœ˜›ŽœȱŠ›˜ž—ȱ‘ŽȱŠŽǯȱ —ȱŠ’’˜—ǰȱ Ž›ŽŒȱ’££Šȱ™›˜Ÿ’ŽœȱŠ••ȱ™ŠŒ”Š’—ȱŠ—ȱ˜‘Ž›ȱ™˜’—Ȭ˜ȬœŠ•Žȱ–ŠŽ›’Š•ȱǻŽǯǯȱœŽ›Ÿ’ŽĴŽœǰȱŒž™œȱ Š—ȱ™˜œŽ›œǰȱŠœȱ Ž••ȱŠœȱ•˜ŒŠ•ȱŠ—ȱŠŽ ’ŽȱŠŸŽ›’œ’—ȱ’—ȱŠȱŸŠ›’Ž¢ȱ˜ȱ–Ž’ŠǼȱ˜ȱ’œȱœ˜›Žœǯȱ –˜—ȱ‘ŽȱŒŽ—›Š•’œŽȱœ¢œŽ–œȱŠ›ŽȱŠȱ Ž‹œ’ŽȱŠ—ȱŠ—ȱ˜—•’—Žȱ˜›Ž›’—ȱœ¢œŽ–ȱǻ ‘’Œ‘ȱœ˜›Žœȱ žœŽȱ˜ȱ™•ŠŒŽȱ˜›Ž›œȱ˜›ȱŠ••ȱ›Žšž’›Žȱ’—›Ž’Ž—œǰȱ™ŠŒ”Š’—ȱŠ—ȱ™˜’—Ȭ˜ȬœŠ•Žȱ–ŠŽ›’Š•Ǽǯ Perfect Pizza uses its website to promote its brand, allow customers to place orders, and provide nutritional information on all menus. Vision and strategy ‘Žȱ Ž›ŽŒȱ ’££Šȱ Ÿ’œ’˜—ȱ ’œȱ ȁ˜ȱ ‹Žȱ žœ›Š•’ŠȂœȱ ‹Žœȱ šž’Œ”ȬœŽ›Ÿ’ŒŽȱ ™’££Šȱ Ž¡™Ž›’Ž—ŒŽȂǯȱ ‘’œȱŸ’œ’˜—ȱ’œȱœž™™˜›Žȱ‹¢ȱ꟎ȱŒ˜›Žȱ˜‹“ŽŒ’ŸŽœDZ ŗǯȱ ŽŸŽ•˜™ȱ‘Žȱ˜›Š—’œŠ’˜—Ȃœȱ™Ž˜™•Žǰȱ‹Ž’——’—ȱ’—ȱ’œȱœ˜›Žœǯ Řǯȱ ˜œŽ›ȱ’——˜ŸŠ’˜—ȱ’—ȱ–Ž—žœǰȱŠŒ’•’’Žœǰȱ–Š›”Ž’—ǰȱ˜™Ž›Š’˜—œȱŠ—ȱŽŒ‘—˜•˜¢ǯ řǯȱ ‘Š›Žȱ‹Žœȱ™›ŠŒ’ŒŽœȱŠ—ȱŽ–™•˜¢ȱ‘Žȱ‹Žœȱ™Ž˜™•ŽȱŠ›˜ž—ȱ‘ŽȱŠŽȱŠ—ǰȱŽŸŽ—žŠ••¢ǰȱ‘Žȱ country. Śǯȱ ˜—’—žŽȱ˜ȱ’–™•Ž–Ž—ȱ™˜œ’’ŸŽȱŒ‘Š—Žȱ’—ȱ‘ŽȱŽ›ŽŒȱ’££Šȱ˜›Š—’œŠ’˜—ǯ śǯȱ ˜—’—žŠ••¢ȱ ’–™›˜ŸŽȱ ‘Žȱ šž’Œ”ȬœŽ›Ÿ’ŒŽȱ ™’££Šȱ œ˜›Žȱ ŒŠŽ˜›¢ȱ Š—ȱ ŽŸŽ•˜™ȱ ˜‘Ž›ȱ ‹žœ’—ŽœœȱŠ—ȱ›˜ ‘ȱ˜™™˜›ž—’’Žœǯ —˜ ’—ȱ ’œȱ Œ˜–™Ž’’ŸŽȱ ™˜œ’’˜—ȱ ’œȱ Œ‘Š••Ž—Žȱ Š’•¢ȱ ’—ȱ ‘Žȱ Šœȱ ˜˜ȱ –Š›”Žǰȱ Ž›ŽŒȱ ’££ŠȂœȱ –Š—ŠŽ–Ž—ȱ ‘Šœȱ ™•ŠŒŽȱ ’œȱ ’—ŽȬ’—ȱ ›ŽœŠž›Š—ȱ ˜ž•Žœȱ ’—ȱ Œ˜—ŸŽ—’Ž—ȱ •˜ŒŠ’˜—œǯȱ ‘ŽȱŒ˜–™Š—¢ȱ Š—œȱ˜ȱ‹Žȱ‘Ž›Žȱ ‘Ž—ȱ‘Žȱꛜȱ‘ž—Ž›ȱ™Š—œȱœ›’”Žǯȱ Ethics & Business Application (2) 2012 • Case study: Perfect Pizza Pty Ltd 3 —ŒŽȱŒžœ˜–Ž›œȱŠ›Žȱ’—ȱ‘Žȱ›ŽœŠž›Š—ǰȱ‘Žȱ˜Œžœȱ˜ȱŽ–™•˜¢ŽŽœȱ’œȱ’›ŽŒŽȱŠȱ–Š”’—ȱ‘Ž’›ȱ Ž¡™Ž›’Ž—ŒŽȱ˜—Žȱ˜ȱšžŠ•’¢ǰȱ›˜–ȱ‘Šœœ•ŽȬ›ŽŽȱœŽ›Ÿ’ŒŽȱ˜ȱ‘Žȱ™Ž›ŒŽ™’˜—ȱ˜ȱŸŠ•žŽȱŠ—ȱ›ŽœŠž›Š—ȱ Œ•ŽŠ—•’—Žœœǯȱ ‘’œȱ ™‘’•˜œ˜™‘¢ȱ Ž¡Ž—œȱ ˜ȱ Š”ŽŠ Š¢ȱ Š—ȱ ‘˜–Žȱ Ž•’ŸŽ›¢ȱ ˜™Ž›Š’˜—œǰȱ ’‘ȱ œ˜›Žœȱ‹Ž’—ȱ•˜ŒŠŽȱŒ•˜œŽȱ˜ȱ•Š›Žȱ™˜™ž•Š’˜—ȱŒŽ—›Žœȱ˜ȱŽ—Š‹•ŽȱŽŠœ¢ȱŠŒŒŽœœǯȱ ‘’•ŽȱŠȱž›‘Ž›ȱœ›ŠŽ¢ȱ’œȱ˜ȱŠ••˜ ȱŠ••ȱ›ŽœŠž›Š—ȱ˜ž•Žœǰȱ’—Œ•ž’—ȱŒ˜–™Š—¢Ȭ˜ —Žȱœ˜›Žœǰȱ ˜ȱ˜™Ž›ŠŽȱ ’‘ȱŠȱ‘’‘ȱŽ›ŽŽȱ˜ȱŠž˜—˜–¢ǰȱŽ›ŽŒȱ’££Šȱ›ŽŒ˜—’œŽœȱ‘Šȱœ˜–Žȱž—Œ’˜—œȱ Š›Žȱ‹Žœȱ’›ŽŒŽȱ˜›ȱœž™™˜›Žȱ›˜–ȱŠȱŒŽ—›Š•ȱ˜ĜŒŽǯȱ˜ȱ˜œŽ›ȱ‘’œȱœ›ŠŽ¢ǰȱ‘ŽȱŒ˜–™Š—¢ȱ Š–’—’œŽ›œȱŠ—ȱœž™™˜›œȱ‘Žȱ›Žœž›Š—ȱ˜ž•Žœȱ›˜–ȱ’œȱ‘ŽŠȱ˜ĜŒŽȱ’—ȱŽ•‹˜ž›—Žǰȱ”—˜ —ȱ Šœȱ ȁ‘Žȱ ž™™˜›ȱ Ž—›ŽȂǯȱ ‘Žȱ ž™™˜›ȱ Ž—›Žȱ ’œȱ œŠěŽȱ ’‘ȱ Š–’—’œ›Š’ŸŽǰȱ –Š›”Ž’—ǰȱ •˜’œ’Œœǰȱ ǰȱ ‘ž–Š—ȱ ›Žœ˜ž›ŒŽœǰȱ ŠŒŒ˜ž—’—ǰȱ ꗊ—ŒŽǰȱ Š—ȱ ›ŽœŠž›Š—ȱ –Š’—Ž—Š—ŒŽȱ Š—ȱ development personnel. Governance Board ‘Žȱ–Ž–‹Ž›œȱ˜ȱ‘ŽȱŽ›ŽŒȱ’££ŠȂœȱ‹˜Š›ȱ˜ȱ’›ŽŒ˜›œȱŠ›ŽDZ > Gino Mazzarella: ‘Š’›ȱŠ—ȱŒ‘’ŽȱŽ¡ŽŒž’ŸŽȱ˜ĜŒŽ›ȱǻǼ ȱ ’—˜ȱ Œ˜Ȭ˜ —œȱ ‘Žȱ ‹žœ’—Žœœȱ ’‘ȱ ‘’œȱ ’Žǰȱ ŽŠǯȱ ȱ Ž ȱ ¢ŽŠ›œȱ Š˜ǰȱ ‘Žȱ ŠĴŽ—Žȱ œ˜–Žȱ ’—žœ›¢Ȭ‹ŠœŽȱ›Š’—’—ȱŠ—ȱŒ˜–™•ŽŽȱ‘Žȱꛜȱ¢ŽŠ›ȱ˜ȱŠȱ‹žœ’—ŽœœȱŽ›ŽŽǯȱ Žȱ‘ŠœȱŠȱ ˜˜ȱȁ’—œ’—Œ’ŸŽȂȱž—Ž›œŠ—’—ȱ˜ȱ‘ŽȱŠœȱ˜˜ȱ’—žœ›¢ǯ > Bea Mazzarella, B.Com: ’›ŽŒ˜›ȱŠ—ȱ–Š—ŠŽ›ǰȱ‹›Š—ȱŠ—ȱ–Š›”Ž’— ȱ ŽŠȱ Œ˜Ȭ˜ —œȱ ‘Žȱ ‹žœ’—Žœœȱ ’‘ȱ ‘Ž›ȱ ‘žœ‹Š—ǰȱ ’—˜ǯȱ ‘Žȱ ‘Šœȱ Œ˜–™•ŽŽȱ Šȱ ŠŒ‘Ž•˜›ȱ ˜ȱ˜––Ž›ŒŽǰȱ’—ȱ ‘’Œ‘ȱœ‘Žȱ–Š“˜›Žȱ’—ȱ–Š›”Ž’—ǯ > Andrew Nobilo: ’›ŽŒ˜› ȱ ’—˜ȱ Š—ȱ ŽŠȱ –Žȱ —›Ž ȱ ‘Ž—ȱ ‘Ž¢ȱ ŠĴŽ—Žȱ Šȱ Šœȱ ˜˜ȱ ’—žœ›¢ȱ Œ˜—Ž›Ž—ŒŽȱ ’—ȱ ¢—Ž¢ȱ ꟎ȱ ¢ŽŠ›œȱ Š˜ǯȱ —›Ž ȱ ŽœŠ‹•’œ‘Žȱ Šȱ œ’–’•Š›ȱ ‹žœ’—Žœœȱ ˜ȱ Ž›ŽŒȱ ’££Šȱ ’—ȱ žœ›Š•’Šȱ ŗśȱ ¢ŽŠ›œȱ Š˜ǯȱ ‘›ŽŽȱ ¢ŽŠ›œȱ Š˜ǰȱ ’—ȱ ‘Žȱ –’œȱ ˜ȱ ‘Žȱ •˜‹Š•ȱ ꗊ—Œ’Š•ȱ Œ›’œ’œǰȱ ‘ŽȱœžŒŒŽœœž••¢ȱ̘ŠŽȱŘśƖȱ˜ȱ‘’œȱ‹žœ’—Žœœǯ > William Atherton: ’›ŽŒ˜› ȱ ’—˜ȱŠ—ȱŽŠȱ Ž—ȱ˜ȱ‘’‘ȱœŒ‘˜˜•ȱ ’‘ȱ’••’Š–ǯȱ ŽȱŠ•œ˜ȱ Ž—ȱ’—˜ȱ‘Žȱ˜˜ȱ’—žœ›¢ȱ Š—ȱ’œȱ—˜ ȱ‘ŽŠȱŒ‘ŽȱŠȱŠȱ꟎ȬœŠ›ȱ‘˜Ž•ǯȱ Žȱꗍœȱ’ȱ’ĜŒž•ȱ˜ȱŠĴŽ—ȱ‹˜Š›ȱ–ŽŽ’—œȱ but does enjoy the contact with Gino and Bea, and the opportunity to be involved ’—ȱŠȱ’쎛Ž—ȱŠœ™ŽŒȱ˜ȱ‘Žȱ˜˜ȱ’—žœ›¢ǯ Management —ȱŠ’’˜—ȱ˜ȱ ’—˜ȱŠ—ȱŽŠǰȱ‘Žȱ”Ž¢ȱœŽ—’˜›ȱœŠěȱ–Ž–‹Ž›œȱŠ›ŽDZ 4 > Graeme Ashton, B.Com, CA: ‘’Žȱꗊ—Œ’Š•ȱ˜ĜŒŽ›ȱǻǼ ȱ ›ŠŽ–ŽȱœŠ›Žȱ‘’œȱŒŠ›ŽŽ›ȱ ’‘ȱŠȱ–Š“˜›ȱŠŒŒ˜ž—’—ȱꛖǰȱŠ—ȱ‘ŠœȱŘŖȱ¢ŽŠ›œȱŠŒŒ˜ž—’—ȱ Š—ȱ –Š—ŠŽ–Ž—ȱ Ž¡™Ž›’Ž—ŒŽȱ ’—ȱ Šȱ ’Žȱ ›Š—Žȱ ˜ȱ ’—žœ›’Žœǯȱ Žȱ “˜’—Žȱ Ž›ŽŒȱ ’££Šȱ ’—ȱ ŘŖŖŜǰȱ Š—ȱ ‘Šœȱ ‹ŽŽ—ȱ ’—œ›ž–Ž—Š•ȱ ’—ȱ ’—œ’Š’—ȱ ˜˜ȱ ŠŒŒ˜ž—’—ȱ œ¢œŽ–œȱ Š—ȱ ›Ž™˜›’—ȱ˜›ȱ–Š—ŠŽ–Ž—ǯ > Robert Williams: ‘’Žȱ˜™Ž›Š’—ȱ˜ĜŒŽ›ȱǻǼ ȱ ˜‹Ž›ȱœŠ›ŽȱŠȱŽ›ŽŒȱ’££ŠȱŠœȱŠȱ™Š›Ȭ’–ŽȱŽŠ–ȱŽ–™•˜¢ŽŽȱ’—ȱ˜—Žȱ˜ȱ‘ŽȱŒ˜–™Š—¢Ȭ ˜ —Žȱœ˜›ŽœȱŠ—ȱ‘Šœȱ™›˜›ŽœœŽȱž™ȱ‘ŽȱŒŠ›ŽŽ›ȱ•ŠŽ›ȱŠœȱŠȱ›Žœž•ȱ˜ȱ‘’œȱ’–™›Žœœ’ŸŽȱ Case study: Perfect Pizza Pty Ltd • Ethics & Business Application (2) 2012 ŠŒ‘’ŽŸŽ–Ž—œǰȱ ꛜȱ ’—ȱ ‘Žȱ ’—’Ÿ’žŠ•ȱ ›ŽœŠž›Š—œȱ Šȱ —˜ ȱ ’—ȱ ‘Žȱ ž™™˜›ȱ Ž—›Žǯȱ Žȱ‘ŠœȱŠȱ›’ŸŽȱ˜ȱ™Ž›˜›–ȱŠ—ȱŠȱ™Šœœ’˜—ȱ‘Šȱ‘Šœȱ’—œ™’›Žȱ˜‘Ž›œȱ˜ȱ˜••˜ ȱ’—ȱ‘’œȱ›ŠŒ”œǯ > Sarah Keats, BBS, Grad. Dip. Bus Studs (HRM): –Š—ŠŽ›ǰȱ‘ž–Š—ȱ›Žœ˜ž›ŒŽœ ȱ Š›Š‘Ȃœȱ ›˜•Žȱ Ž—Œ˜–™ŠœœŽœȱ ‘ž–Š—ȱ ›Žœ˜ž›ŒŽœȱ Š—ȱ ‘ŽŠ•‘ȱ Š—ȱ œŠŽ¢ǯȱ ‘Žȱ ‘Šœȱ Šȱ ‹›˜Šȱ ›Š—Žȱ ˜ȱ Ž¡™Ž›’Ž—ŒŽȱ ’—ȱ œŽ—’˜›ȱ ‘ž–Š—ȱ ›Žœ˜ž›ŒŽœȱ Š—ȱ Œ˜›™˜›ŠŽȱ œŽ›Ÿ’ŒŽœȱ ›˜•Žœȱ ’—ȱ Šȱ —ž–‹Ž›ȱ˜ȱ’쎛Ž—ȱ’—žœ›¢ȱœŽŒ˜›œǯ The future ’—˜ȱ Š—ȱ ŽŠȱ Š££Š›Ž••Šȱ ‘ŠŸŽȱ ˜›”Žȱ ‘Š›ȱ ’—ȱ ‘Žȱ ‹žœ’—Žœœȱ ˜›ȱ ŗŘȱ ¢ŽŠ›œȱ —˜ ǰȱ Š—ȱ Š›Žȱ Œ˜—œ’Ž›’—ȱ ‘Ž’›ȱ žž›Žǯȱ ‘Ž¢ȱ ˜ž•ȱ •’”Žȱ ˜ȱ ̘Šȱ ‘Ž’›ȱ Œ˜–™Š—¢ȱ ‘›˜ž‘ȱ Š—ȱ ’—’’Š•ȱ ™ž‹•’Œȱ ˜ěŽ›’—ȱ ǻ Ǽȱ ˜ȱ œ‘Š›Žœȱ ˜—ȱ ‘Žȱ ǯȱ ‘’œȱ ’••ȱ Š••˜ ȱ Ž›ŽŒȱ ’££ŠȂœȱ Ž–™•˜¢ŽŽœȱ and investors the opportunity to invest in a successful business, but more importantly ’ȱ œ‘˜ž•ȱ ™›˜Ÿ’Žȱ ‘Žȱ Œ˜–™Š—¢ȱ ’‘ȱ ‘Žȱ —ŽŒŽœœŠ›¢ȱ ꗊ—ŒŽȱ ˜›ȱ žž›Žȱ Ž¡™Š—œ’˜—ǯȱ ȱ ’••ȱ Š•œ˜ȱŽ—Š‹•Žȱ‘Žȱ›Žž›—ȱ˜ȱœ˜–ŽȱŒŠœ‘ȱ˜ȱ ’—˜ȱŠ—ȱŽŠȱŠœȱ‘Ž¢ȱ•˜˜”ȱ˜ȱ’–™›˜ŸŽȱ‘Ž’›ȱ•’Žœ¢•Žǯȱ ‘Ž¢ȱ‘ŠŸŽȱŠ™™›˜ŠŒ‘Žȱ‘Ž’›ȱŠŒŒ˜ž—’—ȱꛖǰȱ›ŽŽ–Š—ȱŠ—ȱŠ›—Ž›œǰȱ˜ȱ™›˜Ÿ’Žȱ‘Ž–ȱ ’‘ȱ Š—ȱ˜ěŽ›ȱ™›’ŒŽȱ˜›ȱ‘Žȱ ǯ Expansion alternatives If the IPO is successful, the board will consider expansion alternatives for the future. œȱ™Š›ȱ˜ȱ‘Žȱžž›Žȱœ›ŠŽ¢ǰȱ’ȱ Š—œȱŽ›ŽŒȱ’££Šȱ˜ȱ‹ŽȱŸ’Ž ŽȱŠœȱŠ—ȱŽ‘’ŒŠ•ȱ‹žœ’—Žœœȱ ‘Šȱ’œȱŽ—Ÿ’›˜—–Ž—Š••¢ȱœ˜ž—ǰȱŽ–˜—œ›Š’—ȱŠȱ‹›˜Šȱ›Š—Žȱ˜ȱœžœŠ’—Š‹’•’¢ȱ™›’—Œ’™•Žœǯ ‘Žȱ ‹˜Š›ȱ ’œȱ ”ŽŽ—ȱ ˜ȱ ’—Œ•žŽȱ ‘Žȱ –Š—ŠŽ–Ž—ȱ ŽŠ–ȱ ’—ȱ ‘Žȱ ŽŒ’œ’˜—Ȭ–Š”’—ȱ ™›˜ŒŽœœǯȱ ‘Ž›Ž˜›ŽǰȱŠȱ‘Žȱ•Šœȱ‹˜Š›ȱ–ŽŽ’—ȱŽ›ŽŒȱ’££ŠȂœȱœŽ—’˜›ȱ–Š—ŠŽ›œȱ Ž›ŽȱŠœ”Žȱ˜ȱ™›˜Ÿ’Žȱ œ˜–Žȱ’—’’Š•ȱœžŽœ’˜—œǯȱ ȱ‹ŽŒŠ–ŽȱŠ™™Š›Ž—ȱ‘ŠȱŽŠŒ‘ȱ–Š—ŠŽ›ȱŠŸ˜ž›ŽȱŠȱ’쎛Ž—ȱ˜›–ȱ ˜ȱŽŸŽ•˜™–Ž—ǰȱœ˜ȱ‘Ž¢ȱ Ž›ŽȱŠœ”Žȱ˜ȱ˜ȱŠ Š¢ȱŠ—ȱŽŸŽ•˜™ȱ“žœ’ꮍȱ™›˜™˜œŠ•œȱ˜›ȱ‘Ž’›ȱ ™›ŽŽ››Žȱ˜™’˜—œǰȱ ‘’Œ‘ȱŠ›ŽDZ ǁȱ ›ŠŽ–Žȱœ‘˜—ȱŠŸ˜ŒŠŽœȱŠŒšž’›’—ȱŠȱŠ”ŽŠ Š¢ȱŒ‘Š’—ȱ’—ȱŽ ȱ˜ž‘ȱŠ•Žœǯ ǁȱ ˜‹Ž›ȱ ’••’Š–œȱ Š—œȱ ›ŽŠŽ›ȱ Œ˜—›˜•ȱ ˜ȱ ‘Žȱ Ž›ŽŒȱ ’££Šȱ œž™™•¢ȱ Œ‘Š’—ǰȱ Š—ȱ ’œȱ ‘Ž›Ž˜›Žȱ”ŽŽ—ȱ˜—ȱŠȱœ›ŠŽ¢ȱ˜ȱŸŽ›’ŒŠ•ȱ’—Ž›Š’˜—ǯ ǁȱ Š›Š‘ȱ ŽŠœȱ ˜ž•ȱ•’”Žȱ˜ȱŽœŠ‹•’œ‘ȱŠ—ȱŠŒŒ›Ž’Žȱ™›’ŸŠŽȱ›Š’—’—ȱŽœŠ‹•’œ‘–Ž—ȱ˜›ȱ the hospitality industry. Ž˜›Žȱ ™›˜›Žœœ’—ȱ ž›‘Ž›ǰȱ ‘Žȱ ‹˜Š›ȱ ‘Šœȱ ŽŒ’Žȱ ˜ȱ ’—’’ŠŽȱ Šȱ ›ŽŸ’Ž ȱ ˜ȱ ‘Žȱ œ›ŠŽ’Œȱ ’–™ŠŒȱ ˜ȱ ŽŠŒ‘ȱ ˜ȱ ‘Žȱ ™˜œœ’‹•Žȱ ¡™Š—œ’˜—ȱ Š•Ž›—Š’ŸŽœǯȱ ›ŠŽ–Žǰȱ ˜‹Ž›ȱ Š—ȱ Š›Š‘ȱ Š›ŽŽȱ to contribute to this review. Ethics & Business Application (2) 2012 • Case study: Perfect Pizza Pty Ltd 5 Financial statements for Perfect Pizza Pty Ltd Income statement for year ended 30 June 2012 $ 2011 $ Revenue – sales and franchise fees 24,016,821 21,615,139 Cost of goods sold 15,966,018 14,369,416 8,050,803 7,245,723 Gross margin Marketing and distribution expenses 3,686,101 3,418,886 General and administrative expenses 2,382,663 2,043,002 Total expenses 6,068,764 5,461,888 Earnings before interest and tax 1,982,039 1,783,835 Interest expense 1,159,922 1,200,519 Earnings before tax 822,117 583,316 Taxation (30%) 246,635 174,995 Net profit after tax 575,482 408,321 Dividend paid Depreciation on PPE 560,000 400,000 1,173,113 1,055,802 2012 $ 2011 $ 329,746 353,000 55,845 49,900 Balance for year ended 30 June Assets Current assets Cash and cash equivalents Receivables Inventories 237,000 231,100 Total current assets 622,591 634,000 19,585,120 20,500,000 Non-current assets Property, plant and equipment Intangible assets 5,043,826 5,043,826 Total non-current assets 24,628,946 25,543,826 Total assets 25,251,537 26,177,826 241,326 319,000 Current liabilities Payables and accruals Loans and finance leases 180,500 204,576 Income tax payable 186,983 101,250 Total current liabilities 608,809 624,826 10,356,036 11,290,000 Non-current liabilities Loans and finance leases Deferred income tax 190,630 182,420 Total non-current liabilities 10,546,666 11,472,420 Total liabilities 11,155,475 12,097,246 Net assets 14,096,062 14,080,580 8,000,000 8,000,000 76,600 76,600 Shareholders equity Share capital (16,000,000 shares) Reserves Retained earnings Total shareholders equity 6 6,019,462 6,003,980 14,096,062 14,080,580 Case study: Perfect Pizza Pty Ltd • Ethics & Business Application (2) 2012 Appendix 1 Meeting notes FREEMAN AND PARTNERS Client: Perfect Pizza Pty Ltd Date prepared: 7 August 2012 Subject: Meeting notes The following issues were discussed with Graeme Ashton, the CFO of Perfect Pizza: > Perfect Pizza is considering an IPO in the near future. > Proceeds from the IPO are likely to be used to pursue their stated expansion policy plus the possible acquisition of Napoli Pizzas, a small chain of pizza outlets in the North Melbourne area. The owners of this business are looking for a quick sale due to pressures from their bank. Graeme believes that Perfect Pizza will have to buy the shares of this business and the purchase price is likely to be less than the fair value of the net assets of the business. > The IPO documentation will require some prospective financial information. > Currently, Perfect Pizza produces general purpose financial statements (GPFS). Perfect Pizza i...
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