BSBMGT617 Assessment 1 Assignment v1 October 2016 Apex Institute of Education

Bsbmgt617 assessment 1 assignment v1 october 2016

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BSBMGT617 Assessment 1: Assignment, v1, October 2016Café Culture Additional Information Café Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet coffee and great service, Café Culture will capitalize on its proximity within Sydney CBD to build a core group of repeat customers. Café Culture will offer its customers the best prepared coffee in the area that will be complimented with pastries, as well as free books that its patrons can read to enjoy their visit. The company will operate a 2,300 square foot coffee bar within a walking distance from the many office buildings and education institutions. The owners have secured this location through a three-year lease with an option for extending. The have also provided $140,000 of the required $170,000 start-up funds. The remaining capital will be obtained through ABC bank commercial loans. The company is expected to grow sales revenue from $584,000 in FY2016 to $706,000 in year three. As Café Culture will strive to maintain a 65% gross profit margin and reasonable operating expenses, it will see net profits grow from $100,000 to $125,000 during the same period. Café Culture set itself some objectives for the first year of operations: Become selected as the "Best New Coffee Bar in the area" by the local restaurant guide. Turn in profits from the first month of operations. Maintain a 65% gross margin. The management also identified the following keys to success: Store design that will be both visually attractive to customers, and designed for fast and efficient operations. Employee training to insure the best coffee preparation techniques. Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks. Mission Café Culture will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Café Culture will invest its profits to increase the employee satisfaction while providing stable return to its shareholders. Company Summary Café Culture, a Sydney based Pty. Ltd. company, sells coffee, other beverages and snacks in its 2,300 square feet premium coffee bar located in Ultimo. Café Culture's major investors are Tom Greenfield and James Parker who cumulatively own over 70% of the company. The start-up loss of the company is assumed in the amount of $27,680. The start-up expenses include: Legal expenses for obtaining licenses and permits as well as the accounting services totalling $1,300. © Apex Institute of Education Page 10 of 17
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