Financial Consequences of closing the Restaurant
Based on the information produced of each department and restaurant, the closure of restaurant will significantly reduce expenses (wages and other expenses). Restaurant wages costing of £101,000.00 (26.50% of overall wages across each department) and other departmental expenses of £16,500.00 (22.70% of the store’s departmental expenses).
This reduction on cost can be reallocated to other departments specifically the Kitchenware and Menswear department where minimal promotion was used (£2,000.00 and £1,000.000, respectively). Since there is a direct correlation between sales promotion and level of sales, it will be beneficial for the company to reallocate these expenses for additional sales …show more content…
Satisfied customers not only provide a company with financial resources through continued transactions, they are also an integral factor in creating a company’s positive brand image, thus performing valuable marketing functions. Customer satisfaction aids in the creation of customer loyalty (e.g., repurchase, positive word-of-mouth, and recommendation).
Identify the main factors that Samantha would need to address in her new role as Management Accountant for Shopping Ltd.
As Management Accountant, Samantha’s role will be to provide the relevant information to internal parties within the organisation to help them make better decisions to improve the efficiency and effectiveness of the business operations. There are numerous factors she’ll have to address to do this effectively.
Lack of …show more content…
The current reporting is geared towards providing information to external parties so it does not furnish managers with the necessary data to assist them with decision making and control activities.
Samantha will need to liaise with managers to implement budgets that are both quantitative and qualitative in nature and these will provide yardsticks by which the company can measure its performance, taking corrective actions if results deviate too far from those planned. What factors can and cannot be controlled by managers and seasonality should be considered.
An internal reporting system with clear and measurable KPIs should be introduced for performance measurement. These reports will need to be produced as frequently as required and should act as an incentive for managers to reach targets and be more cost conscious.
Outdated Approach
During the last few decades, numerous economic factors such as deregulation, reductions in tariffs, improvements in transportation and communication have drastically changed the retail industry and opened it to intense global competition. In turn, keeping costs low and being cost efficient has become integral for survivability. The managers’ antiquated approach to customer service relationships needs to be reconsidered and a more pragmatic approach adopted. Customers want quicker shopping times and it may be beneficial to implement self-service checkouts
Based on the information produced of each department and restaurant, the closure of restaurant will significantly reduce expenses (wages and other expenses). Restaurant wages costing of £101,000.00 (26.50% of overall wages across each department) and other departmental expenses of £16,500.00 (22.70% of the store’s departmental expenses).
This reduction on cost can be reallocated to other departments specifically the Kitchenware and Menswear department where minimal promotion was used (£2,000.00 and £1,000.000, respectively). Since there is a direct correlation between sales promotion and level of sales, it will be beneficial for the company to reallocate these expenses for additional sales …show more content…
Satisfied customers not only provide a company with financial resources through continued transactions, they are also an integral factor in creating a company’s positive brand image, thus performing valuable marketing functions. Customer satisfaction aids in the creation of customer loyalty (e.g., repurchase, positive word-of-mouth, and recommendation).
Identify the main factors that Samantha would need to address in her new role as Management Accountant for Shopping Ltd.
As Management Accountant, Samantha’s role will be to provide the relevant information to internal parties within the organisation to help them make better decisions to improve the efficiency and effectiveness of the business operations. There are numerous factors she’ll have to address to do this effectively.
Lack of …show more content…
The current reporting is geared towards providing information to external parties so it does not furnish managers with the necessary data to assist them with decision making and control activities.
Samantha will need to liaise with managers to implement budgets that are both quantitative and qualitative in nature and these will provide yardsticks by which the company can measure its performance, taking corrective actions if results deviate too far from those planned. What factors can and cannot be controlled by managers and seasonality should be considered.
An internal reporting system with clear and measurable KPIs should be introduced for performance measurement. These reports will need to be produced as frequently as required and should act as an incentive for managers to reach targets and be more cost conscious.
Outdated Approach
During the last few decades, numerous economic factors such as deregulation, reductions in tariffs, improvements in transportation and communication have drastically changed the retail industry and opened it to intense global competition. In turn, keeping costs low and being cost efficient has become integral for survivability. The managers’ antiquated approach to customer service relationships needs to be reconsidered and a more pragmatic approach adopted. Customers want quicker shopping times and it may be beneficial to implement self-service checkouts