Westlake Lanes memo

Larry has $15,000 available for research and $500,000 for investment into estimated at $90,000 per year. A research estimate of beer sales in the South Delaware area is needed in order to determine if the business will be profitable.

The goal is to generate an income of $40,000 per year, starting sometime in the second year of operation, as wells as profit that is at least 2% of sales.

Debt or equity financing. With annual free cash flow reaching levels of −$278,000, the business is burning a lot of cash. One should expect that if nothing is done to the business model, debt requirements will become larger and larger. It is unclear whether Maggie is interested in leveraging the business and risking possible default with an adverse weather event.

Ms. Anne Mitchell is a fitness manager at the Westlake Recreation Department. The recreation department works to provide various forms of exercise for people of all ages. A member can swim, run, and lift weights, and there are various programs for children such as basketball leagues and soccer leagues. Ms. Mitchell works to organize and administer events, such as scheduling trainers to work with groups of people, create exercise plans, and she works to create a budget to include activities for all members. She has been in the fitness industry for over 15 years. Most fitness managers, including Ms. Mitchell, get their degrees in personal training as a starting point. However, they take classes in business management to learn both aspects of

The profitability is not high, but at least, the fixed costs will be paid and maybe some profitability will be achieved.

To better understand the financial risk. We took the range of price points between $90- $160 and volumes from 10 million to 28 million in sales. This gave us a wide range to really see the potential for this project in both directions. At a worst case scenario our NPV is (2,167,862,956) and that comes with a sales price of $90 and 10 million in sales. A very unlikely scenario, but we still must determine at a worst case the losses the company would take. If we are able to gain more popularity than we expect and make a larger margin of profit from our advertisement, our best case scenario NPV would be $5,119,971,065. This NPV comes from a $160 price point and 28 million

Since 2004, Revenues have fallen by 50% and healthy profit five years ago has turned into a loss

1. How to remain profitable so that she can pay off her initial investment of $380,000. With a low contributed margin (Appendix 2), Solomon will not able to pay off her coming interest on her loans if TUTTI MATTI sale decreases due to the economy downturn.

If I don’t have the enough money to keep my company going for the first few months until I start to turn a profit this will spell the end of my venture. This is a real issue for me because my core employees are going to expensive to pay because I need them to be experienced. I might have to not hire as many employees as I have originally planned for to try and avoid this issue. This would lead to me taking on more roles as the CEO, which could lead to added stress. Which could also be a reason for the failure of the venture. To prevent this I also could look into ways to try and save money by doing things such as getting employees to work from home so I could downsize the office space needed for my company. Also I could ask investors give me their investments in installments rather than lump sums. This would ensure that the money is continuing to come in regardless of whether my company is turning a profit yet.

The board also made a major mistake by keeping little to no communication with the employees running Westlake Lanes. This caused confusion for the employees since they did not know the details of their jobs; they had no instructions and so, “simply executed routine tasks” (Hammermesh & Zalsch p.4). When the new general manager, Shelby Givens, took over she had issues with the employees

Can this business be profitable? If not, why not? If yes, what needs to be done to achieve profitability?

At first glance a prospective investor might be turned off by the fact that Benefitfocus' net income seems to be headed in the entirely wrong direction. Losses have ballooned from -30M in 2013 to -62M in 2015. However, it is important to note that the company's net income as a percentage of its revenue is headed in the right direction. The profit margin has improved from -74% in 2013 to -19.31% through three quarters of 2016. The fact that revenue growth has far outstripped cost growth over the past few years indicates that positive operating leverage is inherit in Benefitfocus' business model. If these trends continue Benefitfocus should reach breakeven sooner rather than later.

Based on this profit figure is it sufficient to offset the risk of entering a new market?

Taking into account the sudden drop in students from one of NZAB main markets India, provide an outline for the most favorable or desirable organizational structure for NZAB new current situation. The new organizational structure should be outlined in terms of the functions and activities of the business operation.

3). Implement new measures to ensure effective training of manpower, recruitment and development of sound employment policies and job descriptions (Miska & Mendenhall, 2015).