Tim's Coffee Shoppe Case Study
Title: Tim’s Coffee Shoppe Evaluation
Date of submission:
Name:
Executive Summary
Tim Coffee Shoppe is a flourishing coffee shop located in Sunnydale, Illinois. Its owner Tim Slick is being replaced by a new owner, Mike. Mike needs to evaluate the coffee shop to see how it can be improved further. The coffee shop is located at an ideal location; with a university and a busy business district nearby. The coffee shop needs to improve in a few areas though; it needs to be more tech savvy; accept credit cards and introduce Wi-Fi. Proper rules should be introduced to ensure that the employees work efficiently.
1. Regulations
Summary: Tim’s Coffee Shoppe does not follow a strict set of codes or regulations. Employees have to follow only a few rules, as observed from the business. Employees are made aware that they have to report the correct time in the time card reporting stating that their shift starts when they actually start working and not when they arrive at …show more content…
Financial statements:
Summary: The financial statements show that the business is flourishing and is earning profits. The statement of comprehensive income shows a net income (profit) of $74,511 from the previous year (2010).. The major expenses are rents or lease on equipments and property, wages, supplies and taxes and licenses. The balance sheet shows total current liabilities ($4746.92) and long term liabilities ($7214.22) which need to be paid.
Action Items: Mike needs to make sure that accounts payable ($1250.14) are paid immediately. The bank loan is a monthly payment and has to be paid on time. The depreciation expense ($6750) on the balance sheet show that the assets (equipment and property) are decreasing in value. Mike needs to constantly upgrade the equipment. The balance sheet and net income shows profits. Mike can use these profits to buy new property to open new outlets. Tim’s competitor Queequeg has 7 outlets and Mike should focus on expanding the business.
5. Problem
Date of submission:
Name:
Executive Summary
Tim Coffee Shoppe is a flourishing coffee shop located in Sunnydale, Illinois. Its owner Tim Slick is being replaced by a new owner, Mike. Mike needs to evaluate the coffee shop to see how it can be improved further. The coffee shop is located at an ideal location; with a university and a busy business district nearby. The coffee shop needs to improve in a few areas though; it needs to be more tech savvy; accept credit cards and introduce Wi-Fi. Proper rules should be introduced to ensure that the employees work efficiently.
1. Regulations
Summary: Tim’s Coffee Shoppe does not follow a strict set of codes or regulations. Employees have to follow only a few rules, as observed from the business. Employees are made aware that they have to report the correct time in the time card reporting stating that their shift starts when they actually start working and not when they arrive at …show more content…
Financial statements:
Summary: The financial statements show that the business is flourishing and is earning profits. The statement of comprehensive income shows a net income (profit) of $74,511 from the previous year (2010).. The major expenses are rents or lease on equipments and property, wages, supplies and taxes and licenses. The balance sheet shows total current liabilities ($4746.92) and long term liabilities ($7214.22) which need to be paid.
Action Items: Mike needs to make sure that accounts payable ($1250.14) are paid immediately. The bank loan is a monthly payment and has to be paid on time. The depreciation expense ($6750) on the balance sheet show that the assets (equipment and property) are decreasing in value. Mike needs to constantly upgrade the equipment. The balance sheet and net income shows profits. Mike can use these profits to buy new property to open new outlets. Tim’s competitor Queequeg has 7 outlets and Mike should focus on expanding the business.
5. Problem