5 simple questions

timer Asked: Nov 21st, 2016

Question description

Answer the questions in the attached file please

Exercise 1. Use the following template to plan for your future budget and submit it to your lecturer. Compare this plan budget to the actual budget in your business plan. Category Example: rent Budget 2. In the following table inset the amount of funding you needed and the resources to get the funding. Funding Amount 3. Discuss how financial ratios are used to analyse and interpret a firm’s financial statement. _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _____________________________________________________________ 4. List down your asset, liabilities, revenue and expenses for your new business venture. Asset: Liabilities: Revenue: Expenses: 5. Case study PARTNERING FOR SUCCESS Organizing Buying Groups to Cuts Costs and Maintain Competitiveness One challenge that businesses confront is cutting cost in ways that don’t erode their ability to remain competitive. Many cost-cutting techniques, such as scaling back on hiring, lowering marketing expenses, or reducing inventory, may save money but may also decrease a business’ chances to remain competitive. One technique that can help to conserve a product-based business’ financial assets without adverse side effects is to join or organize a buying group. A buying group, or buying co-op, is a partnership that bands small business and start-up firms together to attain volume discounts on products and services. An example is the independent supermarket consortium Copernic, a not-for-profit European grocery buying group that combines the buying power of retailer in Belgium, France, Switzerland, Germany and Italy. The cost of running the organization is split among the members, as is the savings made on grocery products. A similar buying group is the U.K.-Based United Aftermarket Network, which supplies its members in the vehicle trade with parts from leading motor manufacturers that have been bought at a group discount. In Thailand, Stockbuz is another successful example of a group-buying operation, which has solved a problem for both yarn producers and manufacturers of apparel. The clothes makers forecast demand based on sales data, seasonality, and retailer feedback and buy fabrics in bulk from the yarn producers. This, in turn, helps reduce market uncertainty for the fabric producers and ensures orders are honoured. There are similar buying co-ops other industries. The beauty of buying groups is that they generally allow businesses to obtain the exact same product for a lower price, with no undersirable impact (other than the membership fee) on the other parts of their operation. The money that’s freed up can go directly to a business’ bottom line or be used to invest in customer service or other methods to increase competitiveness. There is no national directory of industry buying groups. The best way to find out whether there are buying groups servicing an industry is to conduct Internet research and ask among industry participants. Questions for Critical Thinking 1. Which of the four financial objectives of a firm-profitability, liquidity, efficiency, or stability- does participating in buying cooperative contribute to the most? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________ 2. Identify three ways, other than buying cooperatives, that small businesses partner with other small businesses to cut costs without sacrificing their competitiveness? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ____ 3. In an effort to improve the financial position of their firms, do you think the majority of entrepreneurs spend an equal amount of time focusing on (1) cost cutting and (2) increasing revenues? If not, which of the two do you think they spend more time on and why?

Tutor Answer

(Top Tutor) Studypool Tutor
School: UCLA
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors