The Accounting

CASE 1

a) Develop an organization chart for The Cappuccino Express

b) What factors can be expected to have a major impact on the success of The Cappuccino Express?

Internal | External |

* Reliable staff - produce strong service and gain full support from them. Vincent appointed 2 branch managers for his two outlets for day to day management whereas he will focus on overseeing the entire enterprise. * Respond to Customer’s Needs and Wants. ( Establish drive-through coffee) * Strategic Market Segmentation - sell only two types of coffee: cappuccino and decaffeinated | * Competitors- Vincent Understand Competitor’s Strengths and Weaknesses * Strategic location – In industrial park area in town |

c) What major tasks must Vincent undertake in managing The Cappuccino Express

Internal | External |

* Budgeting – In term of monthly basis and yearly basis * Monitoring his employees and his whole enterprise * Quality control – Ensure standard meets for every production of coffee * Planning – Short term and long term * Hiring and Firing * Pricing * Training | * Marketing – Product and Services offered to customers |

** In short, Vincent needs to manage resources, activities and people

His decision is as well critical in planning, implement and manage everything.

d) What are the major costs of operating The Cappuccino Express

Fixed Cost | Variable Cost |

* Office lease ( Rental) * Maintenance * Company license | * Marketing campaign spend * Materials (Ingredients) * Labor cost ( Salary and wages) * Utility bills, like the phone, internet connection and electricity |

Opportunity Cost

* Vincent forgone salary

e) Vincent would like to monitor the performance of each site manager. What measure (s) of performance should he used?

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