Discussion of the problem
Sanjay Thomas, a second-year MBA student at M.I.T. Sloan School of Management has three choices after he graduates. The first one is an excellent job offer that he received from a top-flight management consulting firm. The second option is to open an upscale restaurant that will serve Indian gourmet cuisine. The third option is to open the restaurant with his aunt. Each option has positive and negative aspects, but when Sanjay compares them only the financial benefits are relevant.
If Sanjay takes the job offered by the management consulting firm he would earn a salary of $80,000 a year. If he decides to open the restaurant, he would face a different scenario. To figure out Sanjay’s salary he would have to take into account three variables: number of meals sold, revenue per meal, and labor cost. If Sanjay opens the restaurant in partnership with his aunt, she would guarantee him a salary of at least $3,500 a month, and in return she would get 90% of all monthly earnings in excess of $9,000.
Data Analysis
Sanjay estimated the following statistics for the variables that affect the expected salary at the restaurant. First, the number of meals obeys a normal distribution with a mean of 3,000 and a standard deviation of 1,000. Second, the revenue per meals is $20.00 with a probability of 25%, $18.50 with a probability of 35%, $16.50 with a probability of 30%, and $15.00 with a probability of 10%. Third, the labor cost follows a continuous uniform distribution between $5,040 and $6,860. He also estimates that there are two fixed costs. One is the fixed cost per meal of $11 and the other one is non labor cost of $3,995.
All these variables and fixed costs were used in a simulation software package to forecast the expected salary on the restaurant for the two situations: one running the restaurant by alone, and the other one, running it with his aunt. Each simulation consisted of 10,000 trials.
The result of Sanjay running the restaurant alone is represented in Graph A. With a mean of $10,845 and standard deviation of $8,568 (Table 1), this option shows that the expected salary would be higher than the $6,666 monthly salary that he would earn in the consulting firm ($80,000/ 12). At the same time, the standard deviation projects a high variability on the expected salary, which means that there is the potential of earning more money than at the firm and of losing money running the business.
Next I will need to find out the yearly net income from the investment. This will be gross ticket sales minus the total expenses. Deer Valley expects 300 skiers per day for 40 days at $55.00 per ticket, giving us $660,000 in ticket sales. In order to figure the total expenses I need to separate the fixed and variable expenses. Fixed expenses are those that will be there everyday the lodge is open regardless of the number of skiers. The Lodge is open 200 days per year and the cost of running the new lift is $500 per day for the entire 200 days giving us $100,000 in fixed costs. Variable costs are the expenses based on the number of customers. There is an additional $5 expense per skier per day associated with the new lift. If there are 300 skiers multiplied by $5 each multiplied by the 40 days that they are expected to be on the lift, we will have $60,000 in variable expenses. Fixed costs of $100,000 plus the variable costs of $60,000 will give us $160,000 in total expenses. The gross ticket sales of $660,000 minus the total expenses of $160,000 give us a yearly net income of $500,000.
Our team has been instructed to help advise on a business case involving a restaurant, The Mongolian Grill. It’s owner, John Butkus, is contemplating renovations, in hopes of adding capacity and increasing revenue. There are several scenarios that are available to him. One option is to add an extra food bar. The second option is to move the location of the cooking area. He can also implement both options, if he so chooses. Our team has done the appropriate financial calculations, as well as qualitative considerations.
During my time producing lemonade at Colt’s Lemonade Stand I sold a lot of cups at my lemonade stand. My mean for cups sold at 27.48, the median was 22, the mode was 20, 28 and the range was 52. On day 4 I sold 52 cups because it was 94 degrees during that time we sold a lot because it was really hot.
We computed these break-even parameters based on assumptions on variable costs, fixed costs (Table 4.1) and used the following formula:
What's risky about Jobs A and B is that they both require Armstrong to contribute personal funds which he may end up losing. Alternatively, if he does invest this money, there is a chance that his gamble pays off and the job becomes very profitable. When faced with Job C, not only does it provide Armstrong with nearly no risk because he is not required to invest any personal funds, but it also pleases his family because there is high job security. However, this job also provides Armstrong with the least personal satisfaction.
The report communicates the career action plan and its overview related to the position of general manager of the restaurant. It is divided into 3 sections. In first section, the report demonstrates the current situation of the career explaining the graduate and employability skills, and marketability analysis. The second section explains ideal situation of the career in comparison to the industry demands. This section explains the career SWOT analysis and career goals on short term and long term. The last section communicates the steps to success: work placement that demonstrates the activities that will be carried out to achieve the goals.
Trainer cost, manuals = 10@ $200= $2000, 3 x10 students= 30 tests @ $50=$150, total cost $2150 budget available $3500. Using the testing information of the 10 students the trainer in conjunction with the metric of students’ pre training performance (50 pieces per-hr.) Organization standard is 100 pieces per- hr.) Production cost is $10 per-hour wages, selling price per piece $20. The 10 students’ pre training was 50 pieces per hour, Organization standard 100 per hour@ $10 per-hour costs $1000 to produce, sells for $20, at 100 per hr. = $2000 - $1000= $1000 x10= $10,000 potential profit, at standard rate. At 50 per hr.at $10 per-hr. cost =$500 sells at $20 = $1000, $1000-$500=$500x10= $5000 potential profit. Post-training had 7 students’ producing 95 pieces per-hour and 3 students’ producing 75 pieces per-hour. The seven (7) students producing 95 pieces at $10 cost = $950, selling at 95x$20 =$1900, $1900-$950=$950 Profit x7 =$6,650. These 7 give the trainer a 95% return on training, the Three (3) producing 75 pieces per hour at $10 = $750
During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major expansion program that had been proposed by the marketing department. Assume that you are an assistant to Leigh Jones, the financial vice president. Your first task is to estimate Harry Davis’s cost of capital. Jones has provided you with the following data, which she believes may be relevant to your task.
There are some matters that the student needs to consider. Firstly, the salary is the main concern of our group. Based on the information in this context, the student is advised not to accept a salary which is lower than $120 million. We also believe that this is an appropriate level of salary for the student. In addition, the company had increased its revenues by 66% last year. Thus, the company must be affordable to offer this salary to the student. Secondly, the student wants to start the job from 1st September because he intends to have a three-month holiday after his graduation in May. Thirdly, our group finds that the moving cost is also involved. The student expects the company to pay his moving cost up front, with approximately $9 million. Finally, the student also has another job offer, which is in San Francisco. This job seems to be attractive as the salary will be $108 million, plus...
This project is about to start a new restaurant in Auckland. A wealthy entrepreneur has hired me as a marketing manager and provided me the details of organisational goals and objectives of marketing. He has also estimated the sales of $3000 per week to run restaurant in profit.
It is not a surprise that fast food has become a way of life in America. Every day about a quarter of the adult population n United States visits the fast food restaurant. Every month about 90 percent of children aged 3-9 visit McDonald's. According to Schlosser, Americans spent more than $110 billion a year on the fast food. In his book "Fast Food Nation" Eric Schlosser is not chiefly interested in the consumption of fast food, but his primary objective is to explore manufacturing starting with the unemployment. His book deals with United States politics and raises many social issues.
Planning is important through the whole business. One of the reasons that some restaurants fail is due to lack of planning. Restaurant industry sales in the United States were projected to be $632 billion in 2012, or 4% of the U.S. gross domestic
Running a restaurant can be one of the most stressful jobs as well as the most fun and rewarding jobs. If the manager is a good leader with excellent leadership skills and has great followers the restaurant will be rewarded. If not the restaurant will plummet in sales and no one will be pleased. While developing a business. staff is important to running a successful restaurant, it is also essential that management focus on its public relations as well as its sales and marketing strategies.
Customer service by definition is the ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business (Lucas, 2012, pg.7). In other words, it’s making the customer pleased so that they keep doing business with you all while making sure that the employees get along and work together well. In every business there is a form of customer service. Unfortunately, it is not always excellent or even decent. Some businesses just either don’t care or possibly just don’t have the training to deal with some of the obstacles that come with dealing with customers on a daily basis. I’ve been in the restaurant business for over 13 years and I can tell you that there are skills that some are born with and others need training on, yet either way they should be used whenever interacting with customers.
It will provide entrepreneurs with a competitive edge that will prove invaluable in helping them seek the opportunity in this unexplored area of business. Through this research project one can study the opportunities and potential for Fast Food Restaurant Services in India. Since not too much of research is carried on in this area in India, there is a huge scope for this market and it could be useful for any budding entrepreneur who is interested in this industry.