Indication of business organization

Question : Dissus about the Indication of business organization? Answer : Indication of business organization: Bar on the go is a partnership business that is focusing on to provide top-notch bar services for enhancing the popularity in the market. The company focuses four prime factors associated with the businesses for the effective fulfilment of the objectives of the business plan. Bar on the go has focuses on the effective division of the cost associated with the starting of the businesses. For that reason, the organization has tried to influence several investors to cover up the entire cost associated with the start-up. As Bar on the go is a partnership business, it has tried to segregate the entire risks to all the parties equally so that effectiveness of the operational process remains intact. The business of the organization is focused towards the young working individuals in Toronto, as events have become an integral part of their daily lives. Marketing plan: Offered products and services: Bar on the go focuses on providing superior quality of spirits for enhancing the satisfaction level of the customers. In fact, Bar on the go is trying to include different types of foreign popular alcoholic beverage brands in order to provide more varieties to the customers. Furthermore, the organization is also focusing on to provide entire planning solutions for the private parties and wedding ceremonies. In fact, the organization is also looking to provide multiple bar solutions to create appropriate atmospheres in the private parties. It also has tried to develop new speciality drinks for achieving sustainable growth in the market. 4Ps of marketing: Product: It can be assessed that Bar on the go is looking to utilize both products and services for creating popularity in the market. For instance, it has tried to provide speciality drinks so that it can have impact on the popularity level in the market. It has also focuses on to provide multiple bars for the private parties so that people can enjoy at the fullest (Goi, 2015). Price: As per the article by Cameron et al. (2015) price plays a crucial role in fulfilling all the objectives of the organization in an appropriate way. Now, Bar on the go has several competitors namely BartenderOne, Hire a Bartender. For that reason, Bar on the go is focusing on to utilize cost effective pricing strategies in order to gain competitive advantage in the market. The cost effective pricing strategy will allow the organization to target people belongs to different income group. Now, in order to maintain the price level below from the competitors, Bar on the go will try to evaluate the market situation in continues way. Promotion: As Bar on the go is dealing in extremely competitive business environment, it will have to focus on the effective utilization of promotional techniques. For that reason, Bar on the go will look to utilize print media and social media platforms to reach to the potential customers in an appropriate manner. In case of print media, Bar on the go will focus on newspapers and business magazines to reach to the potential customers in an appropriate manner (Festa et al., 2016). On the other hand, Bar on the go will try to utilize picture and gripping blogs to grab the attention of the customers. The organization will consciously try to develop all the promotional campaigns for the young people, as they are the prime target for the organization (Hatten, 2015). For that reason, Bar on the go will also try to utilize radio for creating expected impact on the target customers. Place: As highlighted by Mullins (2012) place or location is key for achieving susses in the competitive business environment. For that reason, Bar on the go has only focuses on Toronto for achieving maximum impact on the businesses. It will also tried to evaluate the number of private parties have been arranged in the selected places for the past few years in order to have an idea regarding the future demand that the company might have face in near future. Operation plan: As highlighted by Krajewski, Ritzman Malhotra (2013) effective utilization of operational plan is necessary for fulfilling all the business objectives in an appropriate manner. Now, Bar on the go is not only focusing on providing superior quality of alcoholic beverages to the customers but also trying to provide superior quality of the entertainment services in order to achieve sustainable growth of the market. Therefore, the operational plan of Bar on the go focuses on effective development of two divisions including products department and entertainment departments in order to fulfil all the requirement process of the organization (Khalili et al., 2013). Furthermore, Bar on the go is looking only to recruit people with more than 15 years of experience so that all the requirements of the operational plan can be completed effectively. Bar on the go will also look to develop strong relationship with alcoholic beverage product distributors in order to reduce the cost of the operationa l process (Webber Hanna, 2014). The operational plan of the organization will also look to develop capability of providing entertainment to more than 100 peoples at a time. Therefore, it is only trying to include bartenders with optimum knowledge and skills to handle customers in an appropriate way. Apart from the bartenders, Bar on the go will also look to develop strategies to ensure that no events have to suffer from lack of alcoholic beverage items. It has also recruited people with different types of entertainment skills so that people in the parties can spend quality time (Burian Francis, 2013). Now, providing proper entertainment will not only increase satisfaction level of the customers but also will provide competitive advantage in the market. As the organization is looking to conduct the businesses in the prime areas of Toronto, operational process of the organization also needs to provide specific budget so that all the requirements can be completed in an appropriate manner (Mendibil et al., 2013). Financial plan: Financial situation for the 1st year Pro Forma Income Statement for Bar on the Go Amount (in $) (Debit) Amount (in $) (Credit) Revenue 10000 Closing stock 1700 Purchase of materials 4100 Carriage inward 700 Gross Income 6900 Salaries to the staffs 1700 Purchase of stationeries 300 Purchase of decoration materials 1100 Cost of foods 1000 Electricity charges 470 Other expenses 700 Net income 1630 (Source: As created by the author) Pro Forma Balance Sheet for Bar on the Go Amount (in $) Amount (in $) Assets: Fixed assets: Furniture 2700 Machineries 1400 Total fixed assets 4100 Current assets: Debtors 970 Cash in hand 1470 Closing stock 1700 Total current assets 4140 Total assets 8240 Liabilities: Long term liabilities: Long term bank loan 2100 Current liabilities: Creditors 1040 Bank overdraft 370 Total liabilities 3510 Owner's capital: Capital 4400 Reserve 330 Total Owner's capital 4730 (Source: As created by the author) Pro Forma Cash Flow Statement for Bar on the Go Income from the operations 1630 Cash flow from operating activities: Add: Increase in current liabilities 870 Less: Increase in current assets 510 Total cash from operating activities 1990 Cash flow from investing activities: Purchase of new furniture -1000 Sale of old furniture 440 Total cash from investing activities -560 Cash flow from financing activities: Bank loan taken 1000 Capital provided by the owner 500 Total cash from financing activities 1500 Net cash inflow 2930 (Source: As created by the author) Financial situation for the 2nd year Pro Forma Income Statement for Bar on the Go Revenue 12400 Closing stock 1400 Purchase of materials 3990 Carriage inward 700 Gross Income 9110 Salaries to the staffs 1700 Purchase of stationeries 270 Purchase of decoration materials 1300 Cost of foods 1400 Electricity charges 470 Other expenses 600 Net income 3370 Pro Forma Balance Sheet for Bar on the Go Amount (in $) Amount (in $) Assets: Fixed assets: Furniture 2800 Machineries 1600 Total fixed assets 4400 Current assets: Debtors 1370 Cash in hand 1700 Closing stock 1400 Total current assets 4470 Total assets 8870 Liabilities: Long term liabilities: Long term bank loan 1900 Current liabilities: Creditors 1190 Bank overdraft 700 Total liabilities 3790 Owners capital: Capital 4400 Reserve 680 Total Owners capital 5080 The projected financial statements are showing that at the end of the second year, the company will be able to increase its income level. At the same time, the net cash inflow of the company will also grow up. These indicate that the financial position of the company will be stable and in increasing trend. Calculating the breakeven point Total fixed cost of the company = $9000 Variable cost of the company = $170 Sales per unit = $360 Contribution per unit = $360 - $170 = $190 Therefore, Break-even point = $9000 / $190 = 47.36 units The above calculation is showing that the company will need to produce at least 47.36 units to avoid loss in business. At this point, the company will be at no profit and no loss zone and it will be able to cover up its fixed costs. Calculating the payback period: Initial investment = $7000 Cash flow in the 1st year = $2930 Cash flow in the 2nd year = $3220 Average cash inflows = $3075 Payback period = $7000 / $3075 = 2.27 years The above calculated payback period is indicating that the company will be able to regain its initial investment after 2.27 years. This is also indicating that the financial performance of the company will be good. Future plans for the businesses: As highlighted by Bryman and Bell (2015) development of future-plans allow organizations to move towards a particular direction. Presently, business plan of Bar on the go is only focusing on Toronto market to provide bar planning services. Therefore, it is necessary for the organization to look for business expansion in future in order to achieve sustainable growth in the market. Targeting bigger market will allow the organization to increase the revenue level in an appropriate way. Future-plans of the organization will also have to include more focus on the promotional perspectives. Therefore, it needs to utilize different promotional tools like television and direct marketing campaign in order to increase the popularity level in the market (Hollensen, 2015). Bar on the go will also focus on enhancing the capability in terms of resources so that it can able to handle more than 200 people in a single event. Strategic risk analysis and backup plans: As highlighted by Lee, Song and Lee (2016) proper utilization of risk management procedure allows organizations to reduce risks associated with the businesses. Now, in order to establish business in Toronto area, Bar on the go has to invest certain amount to ensure that all the requirements of the operational process can be completed in an effective manner. Thus, it also increases the risk level associated with the businesses. For instance, Bar on the go is presently looking to conduct private parties for the young people to gain popularity in the market. However, if the present business plan cannot able to create desired impact on the market; it will try to conduct parties for the corporate houses as well. Furthermore, it will also have to focus on to invest more on the effective utilization of the promotional campaign to grab the attention of the potential customers (Mariotti Glackin, 2014). Furthermore, as Bar on the go is looking to include employees with more than 15 years of e xperience, it will have to focus on the effective development of work culture. Otherwise, it will become very difficult for the organization to manage employees for longer period of time. References: Bullock, J. R. (2014). How to Achieve Success After the Bar Exam: A Step-by-Step Action Plan. Burian, P. E., Francis, R. (2013). Operations strategy: a broader view of threading the vision to the customer.The International Business Economics Research Journal (Online),12(12), 1513. Cameron, G. D., Gryka, R. J., Simpson, D. S., Chen, A. M. (2015). Standards 2016: Raising the Bar at Cedarville University. Festa, G., Cuomo, M. T., Metallo, G., Festa, A. (2016). 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