MBA503 Southern New The Cheesecake Factory Analysis

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Southern New Hampshire University


Write an article based on the two files given. This book is financial accounting. Requires analysis of The cheesecake factory according to the framework.

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SOUTHERN NEW HAMPSHIRE UNIVERSITY MBA 503 FINANCE REPORTING AND ANALYSIS FINAL PROJECT SPRING 2019 FINANCIAL CASE STUDY: THE CHEESECAKE FACTORY, INC. The PROPOSAL is that your client makes a significant investment in the firm (Cheesecake Factory) expand operations and possibly to expand the current product line. Your charge is to examine the firm, industry, market(s), etc. to recommend (or not) the project and to produce the data to support the decision. Structure: Use the model “framework” to organize your analysis. Include a description of: The Business Environment The Strategy for the project (achieving/producing) The Business Activity (Operations) Organize the Financial Data Accounting Environment Accounting Strategy Accounting System Compile the Financial Data Financial Statements (3) Corrections/Adjustments Other ‘public data’ Business Financial Context Credit Analysis Securities Analysis M & A Analysis Debt-Dividend Analysis Corporate Communication (strategy) General Business Analysis Financial Analysis Business Strategy Analysis – expectations from industry analysis and the firm’s Competitive Strategy analysis Accounting Analysis – adequacy of the accounting system Financial Analysis – performance and-or pro forma data Prospective Analysis – forecast and valuation *quantitative data for the firm and the industry is available in the text and by Googling industry data and supply-demand data, industry forecasts, regional (geographic) data, and comparative competitive advantage. SERIES CASE STUDY: COMBINING THE FRAMEWORK AND FINANCIAL STATEMENTS FRAMEWORK and elements of analysis: BUSINESS ENVIRONMENT Labor market Capital Market Product markets Suppliers Customers Competitors Business regulations BUSINESS STRATEGY Scope of Business Degree of diversification Type of diversification Competitive Positioning Cost Leadership Differentiation Key success factors and risks BUSINESS ACTIVITY ACCOUNTING ENVIRONMENT Capital Market Structure Contracting and Governance Accounting Conventions and Regulations Tax and financial accounting Linkages Third party auditing Legal system for accounting disputes Operating Activities Investment Activities Financing Activities ACCOUNTING SYSTEM Measure and report the economic consequences business activities ACCOUNTING STRATEGY Choice of accounting policies Choice of accounting estimates Choice of reporting format Choice of supplementary disclosures FINANCIAL STATEMENTS Managers’ superior information on business activities Estimation errors Distortions from managers’ accounting choices FINANCIAL STATEMENTS Managers’ Superior Information on Business Activities Noise from estimation errors Distortion from Managers’ accounting Choices OTHER PUBLIC DATA Industry and Firm Data Outside financial statements BUSINESS APPLICATION CONTEXT Credit analysis Securities analysis Merger and Acquisition analysis Debt Dividend analysis Corporate communication strategy analysis General business analysis SERIES CASE STUDY: COMBINING THE FRAMEWORK AND FINANCIAL STATEMENTS ANALYSIS TOOLS BUSINESS STRATEGY ANALYSIS Generate performance expectations through Industry Analysis and Competitive Strategy Analysis. ACCOUNTING ANALYSIS FINANCIAL ANALYSIS PROSPECTIVE ANALYSIS Evaluate accounting quality by assessing accounting policies and estimates Evaluate performance using ratios and cash flow analysis Make forecasts and value business
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Cheesecake Factory Analysis
Institutional Affiliations




Cheesecake Factory Analysis
Environment Analysis
The Cheesecake Factory which first opened in Beverly Hills 40 years ago in the United
States is currently an internationally distributing food and culinary service organization. The
current markets within which the organization works are quite diversified and the demands may
not be the same from place to place. Accordingly, the organization ought to consider the best
approaches that ensure that the company is profitable and that it can grow in its new markets
while also maintaining its market leadership (Watrous, 2014). The main strategy of the company
has involved focusing on the consumer experience when they visit the restaurants which has
steered the company growth. Cheesecake currently owns restaurants not only in the United States
where it has shown great market performance but also in other countries including Canada,
Bahrain and Hong Kong (Lutz, 2015). While the restaurants continue to innovate with the menu
to offer quality meals, the confectionery has also expanded to include a diversified product line
with both the premium and economy bakery products. Further, the company focuses on a solid
employee strategy and was named one of the best places to work for which also drives company
sales. Nonetheless, Cheesecake remains focused on goals and aims at expanding to up to 300
restaurant locations.
Cheesecake Accounting
For an international company, the accounting system ought to be able to delineate the
company operations and which are more profitable than oth...

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