Venture financials 11 p a g e venture trend analysis

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Venture: Financials – 11 | P a g e
Venture: Trend analysis – Sales 2007 – $1.0m 2008 – $1.3m 2009 – $1.5m 2010 – $1.6m 2011 – $1.6m Able to provide access to due diligence materials? Copies of other strategic alliance agreements? YES NO Statement of Financial Position from last tax return? YES NO Full personal contact details of all directors? YES NO Supporting data for trends, and cost benefit analysis? YES NO 2. Business name – Ambrosia Coffee Roast Description of business (include vision, etc.) – Sell all grades of coffee bean to supermarkets and hospitality outlets around Australia. Description of joint venture – Share in the cost of outdoor advertising for cafes and restaurants, with shared branding of umbrellas and barriers. Venture: Strengths and weaknesses – Supplier is committed to the coffee bean industry, with some sharing of the client base. Product image is not quality but more commodity-based. Venture: Risks – 1. Risks with poor brand association. 2. Long-term commitment in signage. Venture: Cost-benefit analysis – 50 cafes per year, at $200 per cafe cost for each partner. 50 machines sold at $500 profit is $15,000 profit return for the year. Break-even after 20 cafes. Venture: Financials – Not available. Venture: Trend analysis – 12 | P a g e
2007 – $3.2m 2008 – $3.0m 2009 – $2.9m 2010 – $3.0m 2011 – $3.3m Able to provide access to due diligence materials ? Copies of other strategic alliance agreements? YES NO Statement of Financial Position from last tax return? YES NO Full personal contact details of all directors? YES NO Supporting data for trends, and cost benefit analysis? YES NO 3. Business name – Java Estate Description of business (include vision, etc) – To sell quality Arabica roasted coffee beans to all states of Australia. Description of joint venture – Java Estate provides MacVille espresso machines to client for no-charge. Java Estate pays MacVille cost price for the delivery and installation of the machine, then pays the remainder of the purchase price on a 12-month repayment program. Venture: Strengths and weaknesses – Australia wide partner – 100% committed to hospitality and coffee bean market. Other coffee bean suppliers may not recommend MacVille machines with this strong strategic alliance. Venture: Risks – Concern over the amount of money outstanding. Venture: Cost-benefit analysis – Potentially 200 machines installed in the first year. Interest costs $40,000 p.a. profit $100,000. Break-even after 80 machines sold. Venture: Financials – 13 | P a g e
Venture: Trend analysis – 2007 – $8.2m 2008 – $9.1m 2009 – $12.2m 2010 – $14.6m 2011 – $16.3m Able to provide access to due diligence materials? Copies of other strategic alliance agreements? YES NO Statement of Financial Position from last tax return? YES NO 14 | P a g e
Full personal contact details of all directors? YES NO Supporting data for trends, and cost benefit analysis? YES NO Assessment required: For the provided case study, you are required to complete for your organisation: 1. PEST analysis (including a review of legislation impacting on MacVille) (Approx. 100 words) PEST: Political: The Australian authorities has added the free exchange coverage that helps the company

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