Table of Contents
Introducing a company that has been established in Canada in 2019, is Baking Foods Company and it has registered in Canada. The company is serving its services and well as selling its products in different countries and cities around the world. The goals and objectives of the company include serving its customers in the best possible manner as well as ensuring that all customers are satisfied with the services of Bake Foods company.
Products and Services
The products and services of Baking Foods company is frozen potatoes, and they offer non-frozen products to its customers as well. In some areas outside Canada, they produce a variety of chilled products including roast potatoes, roasted eggs. These potatoes are used in several ways in cooking different items, and all these items are produced by using natural ingredients. Frozen foods will be used mostly by restaurants because it ensures that there is no wastage, and maintain the taste of consumers(Singh, et al., 2021).
Goals and Objectives
The goals and objectives of Baking Foods Company are to produce foods from natural ingredients, as well as increase the market share of Baking Foods Company, as well as reduce employee turnover and increase the satisfaction of the business. They are focusing on strengthening customer service. The company is also focusing on reaching several community members and increasing brand awareness. Maintaining good relations with customers, as well as employees is the most prior goal and objective of Baking Foods Company (Singh, et al., 2021).
Organizational Structure and Culture
The organizational structure of Baking Foods Company is a Hierarchical organizational structure, in which on the top level, there is a CEO and 3 Managers as well as a Board of Directors. In the middle level of management, there are general managers and senior managers, and supervisors. At the lower level of management, some subordinates are working for the organization. Organizational culture is when the company is accepting diversity, and they are hiring employees from diverse cultural backgrounds (Bakhritdinovich, et al., 2021).
The value proposition of Baking Foods Company includes that these products are prepared from natural ingredients, and they are innovative, as well as easily accessible to all the customers of Baking Foods Company(Bakhritdinovich, et al., 2021).
The target audience of the company is women of Canada as well as restaurants, and small hotels who will purchase frozen food items including frozen potatoes, roast potatoes, and chilled potatoes for preparing different food items, and the business is targeting customers in different areas.
The business has been started in the year 2019, and it is operating for the last 2 years.
Business Ownership Model of Baking Foods Company
The business ownership that Baking Foods Company is followed is Corporation Limited, and the owner of the business lives in Canada. It is the most suitable form of business for the owner of the Baking Foods Company is talking decisions and taking opinions from staff members of Baking Foods Company(Orekhov, et al., 2020).
Advantages and Disadvantages of Corporation form of business
There are several advantages of the corporate form of business that baking foods company is having is that the business is having easy access to the capital for expanding their business in different areas of the world, as well as the business has security, the corporate form of business also has the business security and continuity.
Disadvantages that Baking Foods company might have while using the corporate form of business is that it is time-consuming and they are subjected to double taxation, as well as having the rigid formalities and protocols that they have to follow (Orekhov, et al., 2020).
Due to Covid-19 the business may face different kinds of threats such as competition has been increased in the market, and several other firms are competing with the baking foods company. Other threats are such as that there was difficulty in access to the capital and attracting the customers because due to Covid-19, the consumers were not purchasing the food items from outside, they were only having or consuming homemade foods. The export of products of Baking Food company is also decreased during the Covid-19 because the government has put restrictions on imports and exports of food items. Expanding the business was also one of the challenges that were faced by the company. Several opportunities come to the business including that the local market of Baking Foods Company was also increasing, and customers of Canada have supported our business during the Covid-19 pandemic and they realize the importance of products manufactured by the Baking Foods company.
Types of Costs
There are different types of costs involved in Baking Foods Company are such as –
- Rental payments that the location of the business is on rent, so the amount that will be paid to the owner of the location will be considered as the rental payment (Pornprakun, et al., 2018).
- Salaries paid to staff members and employees of the company.
- Deprecation charged on assets of the company.
- Insurance of the business as well as employees of the business.
- Internet services provide to staff members are also a fixed payment.
- Parking Fees that will be generated for parking the vehicles of staff members, managers, and board of directors.
- Repairs and Maintenance(Pornprakun, et al., 2018).
- Office supplies are another example of Variable costs for Baking Foods Company.
- Professional services charged by the hour.
- Commission paid is a variable cost.
|Repairs and Maintenance||$4,000|
Contingencies and Future Need Costs
It includes that Baking Foods Company will face some kind of contingencies such as sales of company decrease or employee turnover has been increased. To ensure that there no situation will come like these contingencies, and for that training will be given to employees to upgrade their knowledge and provide them with more job opportunities. Sales will also be maintained in the company by browsing the new opportunities (Milosavljevic, et al., 2019).
Contingency costs include $30,000. For hiring new employees if employee turnover increases in the organization, the cost incurred will be $25,000.
Total Costs including Fixed Costs as well as Variable costs are $1,10,000, in which the contingency amount is also included and income generated from these costs is $1,80,000.So, the profit will be generated at $70,000(Milosavljevic, et al., 2019).
After analyzing the cost-based analysis, it has been determined that the Baking Foods Company is making high benefits.
Degree in Managerial Control
I have the full degree of managerial control over managing the costs and ensuring that costs must not be exceeded the budget. Due to Covid-19, the managerial control is differentiated, because costs have been increased sometimes as well as decreased in the business.
Sources of Funds
Sources of Funds that are suitable for the business are such as mainly the retained earnings and the debt capital which includes taking loans from financial institutions, and banks and returning the money including the interest payment.
The business is eligible for taking a loan from banks because banks and financial institutions easily provide loans to businesses for expanding in different areas of the world. Bank loans can easily meet the working capital requirements and maintain the cash flow of the business during difficult times for Baking Foods Company. It can also strengthen the financial position and stability during the tough or lean period of the business.
Financial tools that will be used for determining the financial position of the business and checking the economic viability of the project by conducting the Cost-Benefit Analysis. Rate of Return, as well as Payback Period and Net Present Value, are other financial tool that will be beneficial in estimating the returns made from the investment.
Alternative Options that can be taken
The alternative options that would be taken are such as Venture Capital or approaching angel investors as they are suitable options for investment in the organization. Angel investors are less risky as compared to taking a business loan, and no need to give them collateral security as well, and no repayments and no interest will be paid to the angel investors. They have better knowledge of investment and they can easily guide the business in investing in different areas of the market. Venture Capital will also be another beneficial option as it can easily manage the pooled investments as well as provide high-growth opportunities to the business (Anggari, et al., 2020).
Plan Guru is the top financial management tool used for the budgeting process, and it provides the cash flow analysis, and provide the financial ratios, forecasts the business and market demand for the next 10 financial years of the business. It is one of the most affordable business budgeting software, and it excels in the import of non-financial data and provides GST Calculations as well. Different pricing options are available for Plan Guru for the Baking Foods Company(Anggari, et al., 2020).
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