fter six months of operations the Café Division of Central Coffee Co. was experi
ID: 347163 • Letter: F
Question
fter six months of operations the Café Division of Central Coffee Co. was experiencing losses. Man 7. A agement is trying to determine whether they should continue to operate the Café Division or own. Describe the accounting data and other information you would like to be able to report the better make this decision. Also, describe a process/format that you would use to performance of the Café. Management has received numerous requests for flavored coffees. The flavored coffees would involve adding an additional processing step to the light roasted beans. What information should management consider in determining whether they should process beans further or continue to sell them without adding flavoring. 8.Explanation / Answer
7. in order to decide on whether the cafe division of the Central Coffee Co. should continue or not the management need to focus on some aspects of the business venture like:
Financial Statement - Which will give information about the amount of loss the organization has incurred and also the estimated budget that has been spent in the time period.
Customer base - Customer base of the organization should be understood and the reason they are not liking the venture.
Location of the business and the demographics related to the organization.
Measure of the competition and the initiatives that they have adopted.
In order to report the performance of the cafe the initiatives taken by the organization in this six months need to be considered, because a new venture will have ups and downs hence that should be considered and while planning, loss should have been expected because it is not rocket science and it has to be learnt while being in the venture
8. Feedbacks have been received regarding the introduction of flavored coffees as this has been quite a hit so the organization should consider thinking about this as an option to boost the business. The information that the management needs to consider is the acceptability and popularity of flavored coffee, additional cost required, additional process required to accommodate flavored coffee and the increase in the expected profit percentage.
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