Boulevard Sandwiches Case Study Solution
1.4 SWOT Analysis
Strengths: The Boulevard sandwiches has the high quality food which is fresh and completely hygienic. Moreover, they have the items in affordable item which everyone can afford. They have the variety of food like soups, starters, and main courses etc. which are highly preferable by the customers. The ambiance is also the other which gives the extra perks to it and customers love to buy the sandwiches and other food items from them.
Weaknesses: The inefficient management is the drawback of the shop because the owner cannot manager the all shops and the falsified report have been made by the manager. Moreover, the higher operating costs to each shop creates the profit minimization to the Boulevard sandwiches.
Opportunity: Boulevard sandwiches has the opportunity to increase their business by adding the breakfast item in the menu with reasonable prices. Moreover, they can make the flexible budget planning and decrease their operating cost and maximize their cost.
Threats: The new entrants have created the higher competition in the market. Moreover, the growing of business with the less monitoring can bring the high adverse impact on profitability and management system of the shops.
1.5 Financial Analysis
Higher operating costs are incurred in different shops , Actual budget has exceed from the planned budget , Profit minimized due to high operating income, High management expense estimated $95,000 and Miscellaneous expenses were higher because not of prediction.
Which are having great effect on planned revenue.
Moreover, Variance analysis helps an organization stay active in achieving its business goals, identifying and mitigating any potential risks that ultimately build trust in team members so that they can plan smooth & highest revenue for future.
On the basis of Variance analysis of labor of Boulevard Sandwiches,Inc. we can say that the profit margin of Inc., is not appreciate able but the management is maintain control over a business because of this all financial variances are favorable.
2. Alternatives
2.1 Alternative 1
The proposed alternative is defined for the problem to make the kitchen in one head quarter
The food can be delivered to different sub branches the bakery items especially
Make the location in the center which can be less distant to every branch.
Evaluation of Alternative 1
Pros
- It can reduce the kitchen cost
- Can make the uniformity in the taste and cost
Cons
- Chance of un-fresh item
- High logistics cost
2.2 Alternative 2
The other alternative is set to make the efficient management system where every shop would be acquired a separate manager who monitor and supervise of day to day operations. This can ensure the transparency in operations and every worker would be monitored and report to the manager.
Evaluation of Alternative 2
Pros
- Efficient strategy to control
- Supervising can create the transparency in operations
- Can reduce the chance of fraudulency
Cons
- It can incur the high cost
-
Agency
conflicts can create
- Managers can work for the personal benefit
2.3 Alternative 3
They can make the integrated database where every activity from raw material to finished item must be maintained .The monitoring can be done through the database management where the chance of falsified report can be reduced. Moreover, the other expenses can be controlled through this like to maintain cashier in every shop etc.
Evaluation of Alternative 2
Pros
- Efficient business tool
- High implement of technology
- Reduce the manual cost.........................
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