Application Of Theory Of Constraints In Commercial Printing Accounting Essay Example

Application Of Theory Of Constraints In Commercial Printing Accounting Essay Example Application Of Theory Of Constraints In Commercial Printing Accounting Essay Application Of Theory Of Constraints In Commercial Printing Accounting Essay This paper seeks to analyze and discourse the application of a Theory of Operations Management in an administration. I have selected a former employer, a commercial printing company, as the company to carry on a critical reappraisal of its operations. I have indentified legion jobs throughout the company s operations, but for this exercising, have decided to concentrate chiefly on the fabrication procedure. In making so, I was able to clearly place a specific country of concern within the operations procedure and use an applicable Theory of Operations Management. In my treatment I non merely applied the relevant theory, but besides justified the choice of such based upon the possible betterments in the fabrication procedure. The recommended alterations if applied will finally convey about a more efficient entity and an betterment in the quality of the merchandises and client focal point. Profitability would be realized and the measurings of which can be done with the usage of the theory as it enables for the computations of the associated execution hazard. The Company The company that has been selected for this assignment is Press-Box Printers Limited ; a household owned and operated commercial printery. The company has been in operation for over 35 old ages and is one of the taking industries of printed stuffs in the local industry. Press-Box Printers Limited has about 85 staff who are employed throughtout the four sections viz. Administration, Gross saless and Selling, Production and Ancillary. The nucleus merchandises manufactured includes books, magazines, and letter paper for a broad cross subdivision of other local Jamaican concerns and persons. The fabrication procedure incorporates the inputs of labor, electricity, paper, inks, chemicals and other applicable natural stuffs and transforms them to bring forth full service publishing solutions ( See Appendix 1. ) . The company uses Offset Lithography ( See Appendix 2. ) , Letterpress and Digital printing techniques, each of which produces a alone consequence depending on the demands of its diverse client base. The Problem The big substantial occupations are those that require the usage of Offset Lithographic printing and over the past 15 old ages, the company has lots its command to retain or to get such contracts. It was discovered that the tendered commands for moneymaking contracts were unsuccessful as they are being alternatively given to entities that are either new or have invested in new engineering and equipment. Press-Box Printers monetary value points are deemed to be uncompetitive. A major lending factor is that the printing imperativenesss are antiquated and can reproduce merely a upper limit of two colorss at a clip. Major occupations require a lower limit of five colorss. Therefore, for Press-Box to fabricate such a occupation, it would hold to go through through the printing imperativeness at least three times. This is deemed to be really inefficient. The input costs of labor, electricity and stuff to bring forth a individual five coloring materials occupation has been proven to be highly high. Further, other internal every bit good as external costs have been identified. The internal costs includes ; ( I ) bit cost of hapless quality as parts must be discarded, ( two ) the re-work cost of repairing faulty merchandises, and ( three ) downtime cost due to the repairing of equipment or replacing faulty merchandise ( s ) . External costs identified were ; ( I ) the cost of reacting to client ailments, ( two ) the cost of managing and replacing poor-quality merchandise ( s ) , and ( three ) lost gross revenues incurred because of client good will impacting future concern. In visible radiation of the above issues of concerns, I have selected to utilize the Theory of Constraints ( TOC ) to review the current fabrication pattern of Press-Box Printers Limited. By using the theory, I will be able to supply elaborate analyses and to urge the manner frontward. Discussion of relevant theory The development of the methodological analysis of TOC can be traced to the development by Dr. Eliyahu Moshe Goldratt of a commercially successful software-based fabrication scheduling plan known as optimized production Timetables ( OPT ) , but this was nevertheless changed in 1982 to Optimized Production Technology ( OPT ) ( Jacobs 1983 ) . With the publication of The Goal, Goldratt used his influential instruction manner to educate the universe about pull offing constrictions ( restraints ) and his new thoughts about public presentation ( Goldratt and Cox 1984 ) . Several early executions brought about the disclosure of the importance of ; ( I ) placing resources as constriction and non-bottleneck, ( two ) holding idle clip or protective capacity on non-bottleneck resources, ( three ) doing planetary public presentation steps an built-in constituent as opposed to efficiency based steps that are considered local and ( four ) explicating a focussed betterment procedure. Theory of Constraints ( TOC ) has evolved over the past two decennaries from a simple production scheduling technique to a systems attack which is chiefly concerned with pull offing alteration. Klein A ; DeBruine ( 1995 ) province that originally set out to invent a systematic attack to placing what was forestalling a company from accomplishing its end of maximizing net income for its stakeholders. The attack was foremost used in a fabrication environment and reported at an American Production and Inventory Control Society ( APICS ) conference in 1980. Hrisak ( 1995 ) informs that TOC is now being used worldwide by companies of varied industries and sizes. He farther states that directors who routinely use TOC were convinced they got a better apprehension of the operations of their several concerns and are able to accomplish a sense of control and take action. He says that TOC allows directors to be empowered by supplying a dependable and consistent model for naming jobs. The TOC methodological analysis encompasses a broad scope of constructs, rules, solutions, tools and attacks. The Theory of Constraints has two expansive places ; ( I ) the concern system and ( two ) a go oning sweetening of the procedure itself. From the concern system position, TOC emphasises three dimensions that of mentality, measurings, and methodological analysis ( 3Ms ) . ( Boyd and Gupta 2004 ) explains that ; Mindset is frequently referred to as finding the system s planetary end. A most of import premise of TOC is that every for-profit concern has the aim of making more money now every bit good as in the hereafter ( Goldratt and Cox 1984 ) without go againsting certain indispensable conditions. Two such conditions conferred in Goldratt ( 1994 ) are that: ( I ) present current every bit good as future fulfilling work environment for employees, and ( two ) supply value and satisfaction to the market. Foregrounding the difference between the end, the aim of which is to continuously heighten net incomes, and the necessary conditions which is to convey to a specific threshold value, TOC distinguishes itself from other direction theoretical accounts as it presents a system that when implemented, makes for a more robust model. The measuring of a system s public presentation is to presume that a house s end is to go more profitable and in so making, TOC proposes a set of planetary operational steps. These steps are throughput, stock list and operating disbursals. The operational steps are said to be: ( I ) fiscal in nature, as they can be translated to steps such as net net income, and return on investing ( 3708 M. Gupta and D. Snyder ) ( two ) they are easy applied at any degree of an administration, and ( three ) warrant that local determinations are in maintaining with the net income end of the house ( Goldratt1990a, Goldratt and Fox 1993, Noreen et Al. 1996 ) . This facet of TOC, termed throughput accounting , has been discussed extensively in accounting literature ( Corbett 1999, Dugdale and Jones 1996, Noreen et Al. 1996 ) and compared, contrasted, and incorporated with activity-based cost accounting. The methodological analysis, the last of the 3m s, speaks to the uninterrupted betterment of the system. Ever since the launch of optimized production engineering ( OPT ) as a production planning and control methodological analysis, TOC has developed into a uninterrupted betterment methodological analysis. TOC states that every concern system has at least one restraint and for the most portion, really few. A restraint is defined as that which limits the system from accomplishing greater degree of public presentation relation to its declared end. Goldratt proposed a five-step focussing procedure for pull offing restraints and continuously bettering the system. Cardinal to this focussed procedure are the constructs of V-A-T procedure construction analysis, drum-buffer-rope, and buffer direction which are used to develop the restraint s agenda, regulate and manage buffer stock lists within an organisation. TOC is possibly non normally considered by systems modellers to be portion of the systems literature, but it is a systems methodological analysis in that it strives to guarantee that any alterations embarked upon as portion of a uninterrupted procedure of sweetening will be of benefit to the system as a whole, instead than merely an stray section of the system. Even at the cardinal degree of operations, TOC provides directors with a set of tools that will maneuver them to bring out replies to the basic issues associating to alter. The issues are ; ( I ) what to alter, ( two ) what to alter to, and ( three ) how to consequence the alteration. Goldratt ( 1990b ) , Klein A ; DeBruine ( 1995 ) A ; Dettmer ( 1997 ) states that TOC views an administration as a concatenation composed of many links, or webs of ironss. Often times viewed as a forced system, a concatenation s links all contribute to the over-arching end and each nexus is really much dependant on the other links. However, the concatenation itself is merely every bit strong as its weakest nexus. With this in head, Goldratt s TOC states that the overall public presentation of an administration is limited by its weakest nexus. He farther argues that if an administration wants to better its public presentation, the first measure must be to place the system s weakest nexus, or restraint. Stairss in the procedure of ongoing betterment Goldratt ( 1990b, Goldratt and Cox 1992 ) introduced a technique called the five focusing stairss ( See Appendix 3. ) for undertaking system jobs on a uninterrupted betterment footing. The stairss are ; ( I ) to place the restraint in the procedure that is restricting the efficiency of the system. This could be a physical every bit good as a policy restraint ( two ) make usage of the restraint to accomplish the best possible end product from the restraint by eliminating insufficiencies that inhibit the flow, and cut down non-productive clip, so that the restraint is used in the most effectual manner possible ( three ) subsidiary other activities to the restraint by associating the productiveness of other operations to be suiting the restraint. This should ensue in an elementary work flow and avoid build up of work-in-process stock list. A critical point nevertheless, is to forestall the restraint from holding to wait for work ( four ) elevate the restraint and in state of affairss wh ere the system restraint still does non hold satisfactory degrees of end product, an investing in new equipment or an addition in staff is recommended to increase end product ( V ) if alteration has occurred, travel back to step one and measure whether another process or policy has turn out to be the system restraint. Goldratt ( 1990b ) states that this measure is consistent with a procedure of ongoing betterment. Predating the Five Focusing Stairss, Goldratt ( 1986, 1990b ) prescribes two excess stairss, which Coman and Ronen ( 1994 ) include in the focusing stairss, hence redefining them as a seven-step method. The two excess stairss included at the beginning are ; ( I ) specifying the system s Goal and ( two ) determine proper, planetary and simple steps of public presentation. Scheinkopf ( 1999 ) describes these as prerequisite stairss for any betterment in the procedure. As is indicated, a main rule of TOC is that all systems have restraints that prevent it from accomplishing its end. The accent therefore, is to concentrate attempts on holding those restraints produce more, either by moving on the restraints straight, or on the other operations that interact with them. TOC s Five Focusing Steps supply a straightforward but successful method to uninterrupted betterment in cases where the restraint can be easy identified. Conversely, if the restraint is caused by cases of policies or behaviors, or farther completed state of affairss, the restraint may be more hard to place, therefore doing the preparation of a solution hard. If this were the instance, the TOC Thinking Procedures are more utile in make up ones minding what to alter, what to alter to, and how to convey about such a alteration. Similar to the Five Focusing Stairss in that it focuses on the restraint, the Thinking Processes focal point on the factors that are presently forestalling the system from accomplishing its ends. The Thinking Processes achieves this by first placing the symptoms within the system, which present verification that the system is non executing every bit good as is desired. From this place, the assorted TOC Thinking Process tools are so applied to deduce the causes of those symptoms, what needs to be done to rectify those causes, and how such remedial actions could be carried out. By making this, the TOC attack is to map the system from the place of the current trouble, instead than seek to pattern the whole system. A really swoon but major discrepancy, this allows for complex jobs to be addressed without holding to wholly pattern the full system. The TOC Thinking Process begins with a Current Reality Tree, which detects what in the system, needs to be changed. The Evaporating Cloud is so used to derive a deeper apprehension of the struggle within the system environment. Additionally, the Evaporating Cloud provides thoughts of what can be changed to interrupt the struggle and decide the focal issue of concern. The Future Reality Tree uses these thoughts for alteration and ensures that the freshly established world would in fact decide the unsatisfactory systems conditions and non convey about new 1s. The Prerequisite Tree identifies obstacles to the execution and attacks to predominate over them. The Transition Tree can be seen as the creative activity of a elaborate execution program. Goldratt s tools are designed to get the better of opposition to alter as a logical way is created that can be easy followed. The five tools can be used individually or as a whole but this all depends nevertheless on the complexness of the state of affairs. Many applications of the Thinking Procedures have been published since its introduction in Goldratt ( 1994 ) ; and there have been many illustrations presented in the APICS Constraints Management Symposiums, and in books such as Noreen et Al ( 1995 ) , and Kendall ( 1998 ) . Recommendation and Justification Having identified the restraint in Press-Box Printers operational procedure, the undermentioned recommendation is being made ; the organisation should get a newer more efficient five coloring materials publishing press.The machine being proposed and the specifications are as follows: Model: Heidelberg SM 74-5-H Year: 2005 Impressions: 74 million ( approx. ) Sheet size: Width 52 centimeter Height 74 centimeter Colorss: multi-colour ( 5 ) Auto home base burden The above machine is deemed idle for the nature and range of the printing production procedure at Press-Box Printers ( See Appendix 4 ) . The acquisition would replace at least three Heidelberg, two coloring material printing imperativenesss presently in usage which have a combined mean age of 28 old ages. In using TOC to the administration s operational and systems challenges will necessitate the hazard of investing capital. The Rate of Return ( ROI ) on such an investing can nevertheless be adequately measured by using TOC. In mensurating the ROI, the specifications of the recommended printing imperativeness should include its production capacity, cost to run inclusive of care ( OE ) , net net income ( NP ) obtained from the machine over a specific clip period, and investing ( I ) that was made to obtain the machine and bring forth the net net income. If these measures are known, return on investing ( ROI ) can be calculated as follows: ROI = NP I The net net income ( NP ) can be calculated from the difference between all the money generated, called per definition the throughput ( T ) of the machine, and the operating disbursals ( OE ) of the machine: NP = T OE Therefore: ROI = T OE I The definitions of the TOC measuring parametric quantities are as follows: Throughput: The rate at which the administration generates goal units ; Operating Expense: All the money the administration spends in bring forthing goal units ; and Investing: The money tied up in the administration . It should be noted that throughput is a hard currency step and therefore gross revenues on recognition or debitors on the books should be included in the investing. However, Throughput is merely recognized when hard currency has been received for the sale generated. This is a really different construct from normal accounting patterns which identifies a sale, be it hard currency or recognition. Another measuring of corporate public presentation is that of hard currency flow. Cash flow ( CF ) is the sum of money of net net income left after alterations in investing have been accounted for: CF = T OE -I. Negative investing, or a lessening in inventories/investment, therefore additions the hard currency flow of the concern. Managed a company as per TOC rules, the Economic Value Added ( EVA ) , which is a fiscal public presentation method to cipher the true economic net income of a company, will better. This is so as the fact that net net income ( NP ) , return on investing ( ROI ) and hard currency flow ( CF ) will increase due to the focal point on the restraints of the company. Simultaneously, the plus hazard, runing hazard, size and diverseness hazard and the strategic hazard of the company will be reduced. For that ground, the hazard factors that impact the cost of capital of the company will be reduced, taking to a decrease in the cost of invested capital. Jointly ; return on investing and cost of capital, which form portion of the EVA equation are therefore influenced positively by the application of TOC direction rules. Decision By geting the above recommended Heidelberg printing imperativeness, the efficiency of the fabrication procedure will be greatly improved. This betterment will be realized through the decrease of ; ( I ) stock list, ( two ) production clip, and ( three ) direct inputs such as labor and electricity. Improvements will be realized in: ( I ) rhythm clip, ( two ) on clip bringing / due day of the month public presentation, and ( three ) fiscal place ( throughput ) . Mentions Ackoff, R.L. ( 1978 ) . The Art of Problem Solving, Wiley. Aggarwal, S. and Aggarwal, S. , 1985. The direction of fabricating operations: an assessment of recent developments. International Journal of Production Management, 5 ( 3 ) , 21-38. Boyd, L.H. and Gupta, M.C. , 2004. Constraints direction: is it a theory? International Journal of Operational and Production Management, 24 ( 4 ) , 350-371. Cook, D. , 1994. A simulation comparing of traditional, JIT and TOC fabricating systems in a flow store with constrictions. Production and Inventory Management Journal, 35 ( 1st one-fourth ) ,73-78. Coman, A. and Ronen, B. ( 1995 ) . Management by Constraints: Yoke IS to Support Changes in Business Bottlenecks. Human Systems Management 12, 65-70. Cox, J.F. III and Spencer, M.S. ( 1998 ) . The Constraints Management Handbook. St Lucie Press / APICS Series on Constraints Management: Boca Raton, FL. Dettmer, H.W. ( 1997 ) . Goldratt s Theory of Constraints: A Systems Approach to Continuous Improvement. ASQC Quality Press, Milwaukee, WI. G. Bennett Stewart. The quest for value: the EVA ( TM ) direction usher. HarperCollins, 1990. Gardiner, S.C. , Blackstone, J.H. , and Gardiner, L.R. , 1994. The development of the theory of restraints. Industrial Management, 36 ( 3 ) , 13-17. Goldratt, E.M. and Cox, J. 1986. The Goal A Procedure of Ongoing Improvement. Revised Edition. North River Press, Croton-on-Hudson, NY. Goldratt, E.M. ( 1990a ) . What is this thing called the Theory of Constraints? North River Press, New York. Goldratt, E.M. ( 1990a ) Haystack Syndrome: Sifting Information Out of the Data Ocean. Croton-on-Hudson, NY: North River Press Goldratt, E.M. ( 1990b ) . The Haystack Syndrome. North River Press, New York. Goldratt, E.M. ( 1990b ) . What is this thing called the Theory of Constraints? North River Imperativeness, Croton-on-Hudson, NY. Goldratt, E.M. and Cox, J. ( 1993 ) . The Goal, 2nd erectile dysfunction. Gower, Aldershot, England. Goldratt, E.M. ( 1994 ) . It s Not Luck. North River Press Publishing Corporation, Great Barrington, MA. Goldratt, E.M. ( 1997 ) . Critical Chain. North River Press Publishing Corporation, Great Barrington, Massachusetts. Goldratt, E.M. and Cox, J. 1992. The Goal A Procedure of Ongoing Improvement. Second Rev. Ed. , North River Press Publishing Corporation, Great Barrington, MA. Gupta, M.C. , 2003. Constraints management-recent progresss and patterns. International Journal of Production Research, 41, 647-659. Hrisak, D.M. ( 1995 ) . Interrupting Bottlenecks and TOC. Chartered Accountants Journal of New Zealand, Vol. 74, No. 7, 1995: 75. Kendall, G.I. ( 1998 ) . Procuring the Future: Schemes for Exponential Growth Using the Theory of Constraints. St. Lucie Press / APICS Series on Constraints Management: Boca Raton, FL. Klein, D. and DeBruine, M. ( 1995 ) . A Thinking Procedure for Establishing Management Policies. Review of Business. Vol. 16, No. 3: 31-37. Mabin, V.J. and Balderstone, S.J. , 2003. The public presentation of the theory of restraints methodological analysis: analysis and treatment of successful TOC applications. International Journal of Operations and Production Management, 23 ( 6 ) , 568-595. Mabin, V.J. and Balderstone, S.J. ( 1999, forthcoming ) . The World of the Theory of Constraints: A Review of the International Literature. St. Lucie Press / APICS Series on Constraints Management: Boca Raton, FL. McMullen, T.B. ( 1998 ) . Introduction to the Theory of Constraints ( TOC ) Management System. St. Lucie Press/ APICS Series on Constraints Management, Boca Raton, FL. Miltenburg, J. , 1997. Comparing JIT, MRP, and TOC and implanting TOC into MRP. International Journal of Production Research, 35 ( 4 ) , 1147-1169. Noreen, E. , Smith, D.A. A ; Mackey, J.T. ( 1995 ) . The Theory of Constraints and its Deductions for Management Accounting. The North River Press Printing Corporation: Great Barrington, MA. Plenert, G. , 2000. Bottleneck allotment methodological analysis: an incorporate fabrication direction model-a system survey. International Journal of Flexible Manufacturing Systems, 12 ( 1 ) , 81-101. Rand, G.K. ( 1990 ) . MRP, JIT and OPT. In Hendry L.C. and R.W. Eglese, Operational Research TutorialPapers, 1990. Operational Research Society, Birmingham, England. Scheinkopf, L. ( 1999 ) . Thinking For Change: Puting the TOC Thinking Processes to Use. St. Lucie Press / APICS Series on Constraints Management: Boca Raton, FL. Spencer, M.S. , 1991. The end in an MRP system. Production and Inventory Management Journal, 32 ( 4 ) , 22-28. Spencer, M.S. and Cox, J.F. , 1995. Optimum production engineering ( OPT ) and the theory of restraints ( TOC ) : Analysis and family tree. International Journal of Production Research, 33 ( 6 ) , 1495-1504. Appendix 1 The Transformation Process Beginning: Figure 13. Transformation procedure theoretical account ( Armistead, Harrison et Al. 1996, 118 ) Appendix 2 The Offset Lithography Printing Process Beginning: hypertext transfer protocol: //www.compassrose.com/publishing/offset-printing.html Appendix 3 Five Focusing Stairss Beginning: Industrial research Institute hypertext transfer protocol: //www.iriweb.org/Public_Site/RTM/free/Whats_Constraining_Your_Innovation.aspx

Business Plan for Dance Studio

Business Plan for Dance Studio Free Online Research Papers 1.0 Executive Summary 2 1.1 Objectives 2 1.2 Mission 3 2.0 Company Summary 3 2.1 Start-up Summary 4 2.2 Company Ownership 5 3.0 Services 5 4.0 Market Analysis Summary 7 4.1 Market Segmentation 7 4.2 Target Market Segment Strategy 8 4.3 Service Business Analysis 9 4.3.1 Competition and Buying Patterns 9 5.0 Strategy and Implementation Summary 10 5.1 Competitive Edge 10 5.2 Marketing Strategy 10 5.3 Sales Strategy 11 5.3.1 Sales Forecast 12 5.4 Milestones 16 6.0 Web Plan Summary 16 7.0 Management Summary 17 7.1 Personnel Plan 18 8.0 Financial Plan 19 8.1 Important Assumptions 19 8.2 Projected Profit and Loss 20 8.3 Projected Cash Flow 21 8.4 Projected Balance Sheet 22 CONCLUSIONS 23 1.0 Executive Summary Social dancing means community. Co-operative, rather than competitive. It means respect for those whom we dance with, whether they be partners or others with whom we share the dance floor. It means taking care that everyone has a good time, rather than being selfish and self-centred. It means being sociable, rather than a show-off. It means dancing with everyone, not just favourite partners, and usually it means changing partners every dance. It means being civil in partnering, waiting until the music starts, before asking someone to dance. It means inclusive, rather than exclusive. (The term dance community is open, in the sense that it includes all those with an interest in dancing, rather than only those who belong to something, or have taken training. So people are seeking schools where they can learn. El Ritmo Dance company is dedicated to bringing quality and affordable dance instruction to Rostov on Don. There is a very active and dedicated social dance community already located in Rostov on Don. However, there has never been an actual dance studio, where these people can expand their knowledge of dance and enjoy being with other people of like interests. It is our plan to incorporate the existing dance community into our studio to begin with a strong base of supporters. From there we will be able to spread the word that dancing is a fun and exciting way to spend time. There are many benefits to dancing that will attract people from many backgrounds and interests. 1.1 Objectives The following are goals and objectives of El Ritmo Dance for Year 2010 through Year 2012 : ?Create a dance studio with a warm, supportive atmosphere, which is based on satisfying customers. ?Provide a social and entertainment forum for people with diverse interests, backgrounds and ages. ?Provide dance training for students at all levels of dance, from beginner to advanced. ?Provide continual training, benefits and incentives for staff to encourage a long-term commitment of employees. 1.2 Mission El Ritmo Dance offers a place where people can learn to dance, meet new people, have fun and feel comfortable. We offer a varied dance program with price options for all levels of interest, with greater emphasis on group classes and small package sessions to reach dance skill objectives. Our instructors have access to continual training on different social dance congresses. This provides our students with up-to-date steps and technique and access to the latest dance trends. 2.0 Company Summary El Ritmo Dance, soon to be located in Rostov on Don, Russia, will provide the community with a comfortable, friendly environment in which to learn the art of social dancing. El Ritmo Dance will offer private dance instruction, group classes, social dance parties and rental facilities for local events. Social dancing (such as Salsa, Swing, Argentinian Tango, Lindy Hop, Bachata, Social Cha cha cha) as well as an art, has become increasingly popular worldwide. As a result, the studio can expect to attract a wide cross section of customers. El Ritmo Dance will appeal to people of all ages, abilities and backgrounds, looking for creative self expression, exercise and/or social opportunities through dance. 2.1 Start-up Summary El Ritmo Dances start-up costs are based on an assumption that it will lease space at the Lendvorets. This space is ready for occupancy but will need a few minor renovations. The renovations include building out an office on the main floor and a caterer kitchen. The other category includes items such as memberships to the Chamber of Commerce, Visitor and Convention Bureau, and anything else that we may have forgotten or underestimated. The current assets include the deposit of â‚ ¬ 6,000. Long-term assets include items which will need to be purchased for the business. We are not currently requesting a loan, but may need to for operating costs if the sales forecast is less that anticipated. The owners are investing â‚ ¬ 25,000 initially. Start up Requirements Start-up Expenses Legal â‚ ¬500 Accountant â‚ ¬150 Office supplies, Stationary â‚ ¬250 Brochures â‚ ¬125 Grand Opening â‚ ¬2500 Signage â‚ ¬250 Other â‚ ¬1000 Total Start-up Expenses â‚ ¬4775 Start-up Assests Cash Required â‚ ¬5375 Other Current Assets â‚ ¬6000 Long-term Assets â‚ ¬8850 Total Assets â‚ ¬20225 Total Requirements â‚ ¬25000 Start-up Funding Start-up Expenses to Fund â‚ ¬4,775 Start-up Assets to Fund â‚ ¬20,225 Total Funding Required â‚ ¬25,000 Assets Non-cash Assets from Start-up â‚ ¬14,850 Cash Requirements from Start-up â‚ ¬5,375 Additional Cash Raised â‚ ¬0 Cash Balance on Starting Date â‚ ¬5,475 Total Assets â‚ ¬20,225 Liabilities and Capital Liabilities Current Borrowing â‚ ¬0 Long-term Liabilities â‚ ¬0 Accounts Payable (Outstanding Bills) â‚ ¬0 Other Current Liabilities (interest-free) â‚ ¬0 Total Liabilities â‚ ¬0 Capital Planned Investment Owner Loan/Investment â‚ ¬25,000 Other â‚ ¬0 Additional Investment Requirement â‚ ¬0 Total Planned Investment â‚ ¬25,000 Loss at Start-up (Start-up Expenses) â‚ ¬4,775 Total Capital â‚ ¬20,225 Total Capital and Liabilities â‚ ¬20,225 Total Funding â‚ ¬25,000 2.2 Company Ownership El Ritmo Dance is a Limited Liability Company owned and operated by Marina Vanyushina and Genadiy Vanyushin. 3.0 Services El Ritmo Dance is dedicated to bringing the fun and challenge of dancing to Rostov on Don at an affordable cost. We will offer private and group dance instruction for social through competitive level dancers. El Ritmo Dance will also provide a place for dancers to use the skills they have learned, by having weekly dance parties, seasonal/holiday dances and annual social dance congress. El Ritmo Dance will offer its students a variety of instructional choices. By offering them several options, we can best serve their individual needs. Private Lessons offer students the best value for their investment. With a private lesson, the students will work one-on-one with an instructor, receiving personalized instruction and immediate correction. Through experiencing the physical sensation of connected movement, the student is able to confidently replicate that movement in order to provide a pleasant and comfortable experience to other partners. In learning the best methods, one-on-one, both beginning and advanced students will find they progress faster and more easily, as they enjoy the sensation of partner dancing. Group Classes are both an introduction to the experience of dancing with different partners, and a chance for the students to become familiar with a variety of step patterns. Rotation of partners, throughout the class allows dancers to practice steps with different partners. This format promotes comfort in dancing with several partners, as well as the communication that goes along with sharing a learned experience. Group lessons will be available every week in the traditional styles and latest club trends. Classes will be offered at every level, from basic beginner through advanced competitive styling. In addition, specialty classes will be offered for children and teens. Practice Dances will be held once a week to allow students an opportunity to practice the dances learned, in an environment with other students learning the same thing. Instructors will circulate on the dance floor, assisting with questions or demonstration of steps, as well as to dance with students. We will offer classes for the following social dance: Salsa LA Salsa Casino Salsa NY Bachata Cuban Cha cha cha Lindy Hop Swing Argentinian Tango Facility Rental will be another service offering. The Lendvorets is currently a very popular place in Rostov on Don for weddings, receptions, musical events, etc. 4.0 Market Analysis Summary Social Dancing is an industry that now continuing to grow. According to a recent press release by 1TV-Television, more than one million people enroll in social dance classes each year. Since 1985, the number of dancers has increased by 25% each year. The timeless popularity of social dancing, combined with the growing interest in the trendy dances, has proven to be a winning combination around the world. We are confident it will produce the same results in Rostov on Don. 4.1 Market Segmentation According to the information published by the Rostov on Don Chamber of Commerce, Rostov on Don had a total 1.300 million people (2009). It is the 10th biggest city in the Russian Federation. Together with its Rostov agglomeration, population of the city is 1.8 million people (6th place in the country). El Ritmo Dance feels that the populations of Rostov on Don are all potential customers. We have divided these potential customers into the following groups: ?Children/Teens (19 yrs. and under). ?College Students/Young Adults (20-24 yrs.) ?Single and Married Adults (25-55 yrs.) 4.2 Target Market Segment Strategy Everyone who has the ability to walk can learn to dance. It is our job to present dance to these people and introduce and develop interest in the community for social dance. For children and teens it is important to show the fun in dance. We can introduce Social Dance through Junior and Senior High School. To colleges’ students we are going to introduce social dance through free open dance classes in universities and colleges in the city. Young adults will be introducing to dance through social dance parties in different night clubs and fitness clubs. We also plan to work with the Universities to offer classes to their students for credit. Single and married adults between the ages of 25 and 55 have traditionally been the biggest supporters of the social dance studio community. This group is generally looking for new things to try and do. For singles we offer another way to meet people, and date. We will also have special wedding packages, which offer the new couple options for learning their first dance. For married couples dance is something new to learn together and provides a great social outlet. By working with the local clubs, we can be sure there are places for people to use the dance they are learning and in turn spread dance further into the community. 4.3 Service Business Analysis The social dance industry has experienced substantial growth at the rate of 25% each year since 1985. There are some key factors for the rise in demand for dance instruction and places to partnership dance: The popularity of trendy dances like Lindy Hop, Argentinian Tango, and Salsa have made an impact on the number of people wanting to learn how to dance. The popularity of partnership dancing has grown immensely in the last decade. Those who are familiar with dance are well aware of how fun and addicting an evening of dancing can be. Those who have not yet experienced the thrill of moving gracefully around the dance floor with a partner, need a convenient, relaxed atmosphere, where they can feel comfortable learning and utilizing current popular dances. El Ritmo Dance seeks to provide its customers with affordable quality instruction in a fun and supportive environment. 4.3.1 Competition and Buying Patterns There are currently no other social dance studios in Rostov on Don. However, there are a few independent dance teachers, who teach classes at local bars, or rent floor space. There is also a local group, Dance Connection, that holds dances on Friday nights at the Ludi club. This group does not have a studio and its main purpose is to find places for people to dance and enjoy themselves. El Ritmo Dance marketing strategy will target people who wish to get more for their investment in dancing. A large variety of dance lesson packages and programs will be offered in an effort to make dancing affordable. Teachers will be highly skilled and professional, keeping with the image of the studio. The studio will be an elegant place to come, where customer service is number one. Marketing venues will include placement advertisement, direct mail, Internet Web page and open free dance lessons. El Ritmo Dance sales strategy will be based on a consultative style where the customers and teachers work together to identify and plan a course of action to satisfy the customer. Teachers will participate in continuous consultative sales training and receive regular sales coaching where the identification of customer buying criteria will be paramount. Sales closes will be based on demonstration of satisfying the customer criteria. 5.0 Strategy and Implementation Summary 5.1 Competitive Edge As previously mentioned, there is currently no other social dance studio in Rostov on Don. This automatically gives El Ritmo Dance a competitive edge on the market. However, we do not plan to sit back and think that people will come to us if we wait. Because Rostov on Don is not used to having a dance studio, this gives us the challenge of introducing the benefits of having a dance studio. We plan to keep our prices in line with the lower cost of living expenses of the Rostov on Don area. We will offer a wide variety of very competitive packages. Our teachers will be trained in the latest trends and with up-to-date styling of todays dances. We plan to partner with many of the studios in Russia so that we can keep up with the trends of the big city and offer more variety to our students. 5.2 Marketing Strategy Our marketing plan will be very simple. Satisfy our customers and provide them with the desire to continue dancing. A happy customer will not only keep coming back, but they will tell other people about El Ritmo Dance. We will market fun! What better product could we possibly have than that?! Our biggest challenge will be getting people who have never been in a dance studio before to come and try us out. Many people have never considered taking dance lessons before. Our marketing message will emphasize the opportunity to meet people, to enhance the quality of leisure time, to gain health benefits and gain life-long skills that will give them respect from their peers. We will advertise in the yellow pages, local newspapers, flyers, coupons, discount books, radio, and signs around town. 5.3 Sales Strategy One of our marketing strategies is to advertise discount specials or introductory offers. These are designed to introduce people to the different dances our studio offers, and the dances our customers want to learn. Our instructors will work with the customer on these specials to discover what it is they are looking for in dance, and to outline a course that suits the customers wants and needs. When a course outline is agreed upon by customer and instructor they will meet with a manager for a brief consultation to make sure the customer is satisfied with the lesson outline and that the course will meet the expectations of the customer. The customer will then sign up for the lessons by contract and commit to a series of appointments; the studio also commits to these appointments. We will offer a variety of courses, all mixed with combinations of private lessons, group lessons, and practice parties. Our course outlines will follow industry standards of recognized progression in dance, referred to as program dancing. El Ritmo Dance also offers the ability for customers to take group class packages. These may be more affordable, and although take longer for advancement, might be more preferable to some of our customers. In addition El Ritmo Dance offers something unique from other dance studios, which is a membership card. There are three different memberships offered: The Basic, which allows unlimited admission to dance parties as well as discounts to special events. The Gold, which allows limited access to group classes, unlimited admission to dance parties, five party guest passes, and discounts on special events. The Platinum, which allows unlimited access to group classes, unlimited admission to parties, ten party guest passes, and discounts to special events. These memberships will last one year. El Ritmo Dance will offer discounts for larger dance packages. All payments for dance lessons will be collected at time of purchase. Customers may be given 30 days to pay with a down payment of 50%. We will accept payment in the form of cash, check, or credit card. 5.3.1 Sales Forecast This sales forecast is an estimation on the number of customers we acquire while open, and an average cost of lesson outlines. The Social Basics Introductory special is averaged at â‚ ¬25, but this may vary depending on the special running that month. The special is not an accurate count for the cost of lessons, and is used primarily to bring people who may be interested to our studio so that they may continue with more lessons. We are forecasting that we will sell 20 Introductory packages in our first month, and 30 each month there after, as this is what we can handle with the hours we have available. The Social Foundation average package price is â‚ ¬360. It is an average price based on the assumption that students would buy a package containing 12 private lessons and 12 group lessons. We offer a 20% for paying in cash, and have therefore shown â‚ ¬300 for our package price to show the discount. We are forecasting to sell a social foundation dance package to 25% of the people who come to take the introductory special. Bronze I is priced at â‚ ¬600, and is based on the assumption that students would buy this package with 19 privates and 25 groups. We offer a 20% discount to people who pay cash for their lesson, and show this in our forecast by making this package show at â‚ ¬500. We are forecasting to sell a bronze dance package to 50% of the people who bought the social foundation package. Bronze II is priced at â‚ ¬720, and based on the assumption that students would buy a package containing 24 privates and 24 groups. We offer a 20% discount for paying in cash, and show this in our forecast by showing this package price at â‚ ¬600. We do not expect to sell any Bronze II packages the first couple of months. Starting on the third month we are forecasting to sell 50% of those that were in Bronze I. Silver I and Silver II â‚ ¬810. These are both based on the assumption that the student buys a package of 27 privates and 27 groups. We offer a 20% discount for students who pay in cash, and have shown this in our forecast with our package being â‚ ¬675. Starting in the fifth month we are forecasting to sell at least two Silver I dance package per month. We have estimated that we will not sell any Silver II packages until the end of the first year of business. We have kept our estimates low, knowing that we are not only a new business but a new type of business in this community, trying to break through with our marketing. Therefore, we are showing a 25% closing ratio for new students. That is saying that 25% of the customers who come in for the introductory special will buy the next level of dance, Social Foundation package. We then show a 50% closing ratio for existing student, 50% of Social Foundation customers will move on to Bronze I, etc. Marys previous sales results were 70% (out of every ten potential customers she sold a dance package to seven). Memberships were forecasted to show that people would buy the Gold at â‚ ¬300 each. We forecast to sell an average of five memberships per month, with that average increasing to 10 during the peak months of November-February. Miscellaneous sales include series group classes and kids group classes averaged at 10 people per class. Weekly dances will be held each Friday night. We will charge â‚ ¬2.5 per person plus â‚ ¬1.5 if they come for the pre-dance lesson. The Lendvorets is currently reported as bringing in about â‚ ¬15 to â‚ ¬20K per year in space rentals. We will continue to rent out this space and increase the advertising. Other category includes one time privates lessons, special services (i.e. DJ service, lesson packages for special events, wedding packages, etc.). Sales Forecast 2010 2011 2012 Sales Introductory Specials-Social Basics â‚ ¬9,000 â‚ ¬10,350 â‚ ¬11, 902 Social Foundation Syllabus â‚ ¬28,800 â‚ ¬33,120 â‚ ¬38,088 Bronze 1 Syllabus â‚ ¬24,000 â‚ ¬27,600 â‚ ¬31,740 Bronze 2 Syllabus â‚ ¬24,000 â‚ ¬27,600 â‚ ¬31,740 Silver 1 Syllabus â‚ ¬10,800 â‚ ¬12,420 â‚ ¬14,283 Silver 2 Syllabus â‚ ¬1,350 â‚ ¬1,552 â‚ ¬1,785 Memberships â‚ ¬24,000 â‚ ¬27600 â‚ ¬31,740 Miscellaneous Packages â‚ ¬4,665 â‚ ¬5,365 â‚ ¬6,169 Weekly Dances â‚ ¬6,000 â‚ ¬6,900 â‚ ¬7,935 Space Rental â‚ ¬16,930 â‚ ¬19,469 â‚ ¬22,365 Other â‚ ¬1,450 â‚ ¬1667 â‚ ¬1,917 Total Sales â‚ ¬150995 â‚ ¬173644 â‚ ¬199,691 Direct Cost of Sales 2010 2011 2012 Introductory Specials-Social Basics â‚ ¬0 â‚ ¬0 â‚ ¬0 Social Foundation Syllabus â‚ ¬4,896 â‚ ¬5,630 â‚ ¬6,475 Bronze 1 Syllabus â‚ ¬4,080 â‚ ¬4,692 â‚ ¬5,396 Bronze 2 Syllabus â‚ ¬4,080 â‚ ¬4,692 â‚ ¬5,396 Silver 1 Syllabus â‚ ¬1,836 â‚ ¬2,111 â‚ ¬2,428 Silver 2 Syllabus â‚ ¬230 â‚ ¬264 â‚ ¬303 Memberships â‚ ¬0 â‚ ¬0 â‚ ¬0 Miscellaneous Packages â‚ ¬0 â‚ ¬0 â‚ ¬0 Weekly Dances â‚ ¬0 â‚ ¬0 â‚ ¬0 Space Rental â‚ ¬0 â‚ ¬0 â‚ ¬0 Other â‚ ¬0 â‚ ¬0 â‚ ¬0 Subtotal Direct Cost of Sales â‚ ¬15,122 â‚ ¬17,390 â‚ ¬19,998 5.4 Milestones The following milestones reflect an approximate timeframe and cost for beginning and completing actions that will be needed to get El Ritmo Dance up and running. Our goal is to open our doors to customers and begin teaching dance by September 1st, 2010. We realize this date is subject to the timeframe for renovation completion, permits, etc. and may need to be adjusted. Milestones Milestone Start Date End Date Budget Manager Department Legal 6/1/2010 9/1/2010 â‚ ¬325 Both Marketing Develop Web Site 4/1/2010 4/5/2010 â‚ ¬45 Marina Vanyushina Marketing Train New Teachers 4/15/2010 9/1/2010 â‚ ¬0 Marina Vanyushina Marketing File for State Business License 6/1/2010 7/1/2010 â‚ ¬0 Genadiy Vanyushin Marketing File for City Permits 6/1/2010 7/1/2010 â‚ ¬0 Genadiy Vanyushin Marketing Negotiate Lease 6/1/2010 9/1/2010 â‚ ¬0 Both Marketing Order Tables and Chairs 7/1/2010 8/1/2010 â‚ ¬1,875 Both Web Purchase Sound System 8/1/2010 9/1/2010 â‚ ¬1,000 Both Web Renovate Space 7/1/2010 9/1/2010 â‚ ¬0 Both Department Acquire Insurance 6/1/2010 8/1/2010 â‚ ¬1,000 Genadiy Vanyushin Department Create Calendar of Events 7/1/2010 9/1/2010 â‚ ¬50 Marina Vanyushina Department Open Doors for Business 9/1/2010 9/1/2010 â‚ ¬0 Both Department Begin Advertising 7/1/2010 9/1/2010 â‚ ¬1,000 Genadiy Vanyushin Department Grand Opening 11/2/2002 11/2/2002 â‚ ¬1,500 Both Department Totals â‚ ¬6,845 6.0 Web Plan Summary El Ritmo Dance has a Web page, www.elritmodance.ru, that is designed to provide a convenient way for people to discover our studio. For marketing purposes the Web page will be linked to other dance Web sites and, since it has dance in the title, it will show up on different search engines. Our students will be able to use the Web site to look up group class schedules, upcoming events, studio news, and lesson prices. Students and prospective students will also be able to contact teachers via e-mail. Teachers will have the Web site on their business cards, and it will appear on our ads to offer people a chance to look at the space, meet the teachers and check prices, and ask questions before they enter the studio. 7.0 Management Summary El Ritmo Dance will be a very small company with the two owners, Marina Vanyushina and Genadiy Vanyushin, responsible for managing and directing all activities. Marina Vanyushina, owner and dance director, will primarily be responsible for the following: Teaching advanced students. Hiring, training and supervision of new instructors. Scheduling and planning the dance group lessons and special events. Creating dance lesson programs and packages. Studio events. Marina Vanyushina brings with her 10 years of experience as a dance instructor. She has knowledge of the operation of dance studios from her training with previous studio managers, and experience of management herself. She also brings with her, knowledge of the dance industry, the champions, the styles, and experience with previous students. Her 10 years of teaching have brought her many connections that can benefit El Ritmo Dance. Genadiy Vanyushin, Owner and Business Director, will primarily be responsible for the following: Teach social foundation/bronze students Managing the accounting/financial aspect of the company Bookkeeping/payroll Design and develop advertising and marketing strategies 7.1 Personnel Plan A teacher training class began in April to train two teachers. These teachers will be given the training for free with an understanding that they are neither hired nor paid during this time. In exchange for this training, they will be offered a job, once El Ritmo Dance gets enough customers. Our goal is to have five part time/full time instructors by the end of 2010, which includes the two owners. At some point in the future, we will see about hiring a receptionist. Personnel Plan 2010 2011 2012 Owners Salary/Distribution â‚ ¬32,500 â‚ ¬36,000 â‚ ¬42,000 Instructors Compensation â‚ ¬16,575 â‚ ¬20,000 â‚ ¬20,000 Other â‚ ¬0 â‚ ¬0 â‚ ¬0 Total People 5 5 5 Total Payroll â‚ ¬49,075 â‚ ¬56,000 â‚ ¬62,000 8.0 Financial Plan We plan to use our own start-up cash to finance the business. The Lendvorets is a turn key building for this type of business, requiring very limited contract work for us to bring in. A kitchen space and office window are to be negotiated with the building owner. Our start-up requirements are business assets, teaching supplies, and advertising. We want to finance growth mainly through cash flow. 8.1 Important Assumptions The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. From the beginning, we recognize that collection of payments for dance lesson packages is critical, however, not a factor we can influence easily. Interest rates, tax rates, and personnel burden are based on conservative assumptions. Three of the more important underlying assumptions are: We assume that people in Rostov on Don will be interested in learning to dance and will give us a try. We assume that the area will continue to grow, as in the past, and at the projected rate of 5% per year. We assume that the Lendvorets will continue to be rented for events as in the past. General Assumptions 2010 2011 2012 Plan Month 1 2 3 Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 30.00% 30.00% 30.00% 8.2 Projected Profit and Loss Our projected profit and loss is shown on the following table, with sales increasing at a rate of 15% year over year. If we are able to meet our sales forecast, we will begin making a profit almost immediately. Traditionally in the dance business the slower months are in the mid-summer. However, the facility rental is higher in the Summer and should, therefore, supplement the slower teaching months. Profit and Loss 2010 2011 2012 Sales â‚ ¬150,995 â‚ ¬173,644 â‚ ¬199,691 Direct Cost of Sales â‚ ¬15,122 â‚ ¬17,390 â‚ ¬19,998 Other Production Expenses â‚ ¬0 â‚ ¬0 â‚ ¬0 Total Cost of Sales â‚ ¬15,122 â‚ ¬17,390 â‚ ¬19,998 Gross Margin â‚ ¬135873 â‚ ¬156254 â‚ ¬179,692 Gross Margin % 89.99% 89.99% 89.99% Expenses Payroll â‚ ¬49,075 â‚ ¬56,000 â‚ ¬62,000 Sales and Marketing and Other Expenses â‚ ¬22,550 â‚ ¬22,900 â‚ ¬26,250 Depreciation â‚ ¬1,770 â‚ ¬1,770 â‚ ¬1,770 Utilities â‚ ¬4,600 â‚ ¬5,000 â‚ ¬5,500 Telephone â‚ ¬1,200 â‚ ¬1,200 â‚ ¬1,200 Insurance â‚ ¬900 â‚ ¬900 â‚ ¬900 Rent â‚ ¬36,000 â‚ ¬36,000 â‚ ¬36,000 Payroll Taxes â‚ ¬4,907 â‚ ¬5,600 â‚ ¬6,200 Other â‚ ¬0 â‚ ¬0 â‚ ¬0 Total Operating Expenses â‚ ¬120,902 â‚ ¬129,370 â‚ ¬141,176 Profit Before Interest and Taxes â‚ ¬14,970 â‚ ¬26884 â‚ ¬38,516 EBITDA â‚ ¬16,740 â‚ ¬28654 â‚ ¬40,286 Interest Expense (â‚ ¬275) (â‚ ¬850) (â‚ ¬1,450) Taxes Incurred â‚ ¬4573 â‚ ¬8,320 â‚ ¬11990 Net Profit â‚ ¬10,672 â‚ ¬19,414 â‚ ¬27,976 Net Profit/Sales 7.07% 11.18% 14.01% 8.3 Projected Cash Flow Cash flow projections are critical to our success. The annual cash flow figures are included here. The business will generate more than enough cash flow to cover all of its expenses. Cash Flow 2010 2011 2012 Cash Received Cash from Operations Cash Sales â‚ ¬150,995 â‚ ¬173,644 â‚ ¬199,691 Subtotal Cash from Operations â‚ ¬150,995 â‚ ¬173,644 â‚ ¬199,691 Additional Cash Received Sales Tax, VAT, HST/GST Received â‚ ¬0 â‚ ¬0 â‚ ¬0 New Current Borrowing â‚ ¬0 â‚ ¬0 â‚ ¬0 New Other Liabilities (interest-free) â‚ ¬0 â‚ ¬0 â‚ ¬0 New Long-term Liabilities â‚ ¬0 â‚ ¬0 â‚ ¬0 Sales of Other Current Assets â‚ ¬0 â‚ ¬0 â‚ ¬0 Sales of Long-term Assets â‚ ¬0 â‚ ¬0 â‚ ¬0 New Investment Received â‚ ¬0 â‚ ¬0 â‚ ¬0 Subtotal Cash Received â‚ ¬150,995 â‚ ¬173,644 â‚ ¬199,691 Expenditures 2010 2011 2012 Expenditures from Operations Cash Spending â‚ ¬49,075 â‚ ¬56,000 â‚ ¬62,000 Bill Payments â‚ ¬81,830 â‚ ¬96,180 â‚ ¬107,000 Subtotal Spent on Operations â‚ ¬130,905 â‚ ¬152,152 â‚ ¬169,000 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out â‚ ¬0 â‚ ¬0 â‚ ¬0 Principal Repayment of Current Borrowing â‚ ¬0 â‚ ¬0 â‚ ¬0 Other Liabilities Principal Repayment â‚ ¬0 â‚ ¬0 â‚ ¬0 Long-term Liabilities Principal Repayment â‚ ¬5,500 â‚ ¬6,000 â‚ ¬6,000 Purchase Other Current Assets â‚ ¬0 â‚ ¬0 â‚ ¬0 Purchase Long-term Assets â‚ ¬0 â‚ ¬0 â‚ ¬0 Dividends â‚ ¬0 â‚ ¬0 â‚ ¬0 Subtotal Cash Spent â‚ ¬136,405 â‚ ¬158,180 â‚ ¬175,000 Net Cash Flow â‚ ¬14,589 â‚ ¬15,464 â‚ ¬24,690 Cash Balance â‚ ¬19,964 â‚ ¬35,429 â‚ ¬60,119 8.4 Projected Balance Sheet The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. Balance Sheet 2010 2011 2012 Assets Current Assets Cash â‚ ¬19,964 â‚ ¬35,429 â‚ ¬60,119 Other Current Assets â‚ ¬6,000 â‚ ¬6,000 â‚ ¬6,000 Total Current Assets â‚ ¬25,964 â‚ ¬41,429 â‚ ¬66,119 Long-term Assets Long-term Assets â‚ ¬8,850 â‚ ¬8,850 â‚ ¬8,850 Accumulated Depreciation â‚ ¬1,770 â‚ ¬3,540 â‚ ¬5,310 Total Long-term Assets â‚ ¬7,080 â‚ ¬5,310 â‚ ¬3,540 Total Assets â‚ ¬33,044 â‚ ¬46,739 â‚ ¬69,659 Liabilities and Capital 2010 2011 2012 Current Liabilities Accounts Payable â‚ ¬7,648 â‚ ¬7,928 â‚ ¬8,872 Current Borrowing â‚ ¬0 â‚ ¬0 â‚ ¬0 Other Current Liabilities â‚ ¬0 â‚ ¬0 â‚ ¬0 Subtotal Current Liabilities â‚ ¬7,648 â‚ ¬7,928 â‚ ¬8,872 Long-term Liabilities (â‚ ¬5,500) (11,500) (â‚ ¬17,500) Total Liabilities (â‚ ¬2,148) (â‚ ¬3,572) (â‚ ¬8,628) Paid-in Capital â‚ ¬25,000 â‚ ¬25,000 â‚ ¬25,000 Retained Earnings (â‚ ¬4,775) (â‚ ¬5,897) (â‚ ¬25,311) Earnings â‚ ¬10,672 â‚ ¬19,414 â‚ ¬27,976 Total Capital â‚ ¬30,897 â‚ ¬50,311 â‚ ¬78,287 Total Liabilities and Capital â‚ ¬33,044 â‚ ¬46,739 â‚ ¬69,659 Net Worth â‚ ¬30,897 â‚ ¬50,311 â‚ ¬78,287 Conclusions El Ritmo Dance studio will create a place where people can learn to dance, meet new people, have fun, improve, create and feel comfortable. We offer a varied dance programs with price options for all levels of interest, with greater emphasis on group classes and small package sessions to reach dance skill objectives. Our instructors have access to continual training on different social dance congresses. This provides our students with up-to-date steps and technique and access to the latest dance trends. Everyone who has the ability to walk can learn to dance. Research Papers on Business Plan for Dance StudioHip-Hop is ArtAnalysis of Ebay Expanding into AsiaOpen Architechture a white paperThe Spring and AutumnMarketing of Lifeboy Soap A Unilever ProductThe Project Managment Office SystemTwilight of the UAWRiordan Manufacturing Production PlanDefinition of Export QuotasIncorporating Risk and Uncertainty Factor in Capital

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To help, identify and implement majority of these assets within the proper directions towards the improvement of the corporations would be all that is needed. The McDonalds Corporations overall is producing their main product, creating items within their own kitchen, and cooking on their own grills. This means the use of equipment, certain control devices, the regulation of temperature, the business point-of sales system, inventory process, financial and communication information are all linked into different technology that impacts the corporation. Now with public awareness of technology and cultures more people are starting to become a little more health conscious, and have access to finding out about certain quality ingredients, and knowing the lack of minerals that may have an overall negative impact on what all fast foods have done to those who consume them. Along with maximizing knowledge on internal and external factors this will have a large impact on the four major function of management within a corporation. The McDonalds Corporations has goals that are reflected in its mission statement to become for some customers a favorite place to eat. There are several internal and external factor’s McDonald’s faces in the decision they made to go Global. External f actors  for the decision to go Global include the following. 1.)The growing heath trends of consumers 2.)The ability to expand into new markets such as India and China 3.)The diversification and purchase of other fast food restaurants 4.)The global growth of the fast food industry 5.)Worldwide deregulation (Salem, Abdullah, 2009) These external factors impacted the four functions of management for McDonald’s managers, by forcing management to adjust the planning function and information to include a mission that was based on a global demand and competition. The organizing function of management with in McDonalds was also affected by the decision to go global. Management now has to organize information, people, and financial resources crossed countries and cultures to achieve one common goal. The function a leading for a management changed also. Now, styles and type of leading and motiving had to be localized and customized around the culture rather than one specialized way of doing things. Controlling or measuring achievements in with in the global industry also changed as franchisees are now faced with measuring success based on others in different markets. Internal factors also played a part in McDonald’s decision to go global and those factors have also affected the four functions of manageme nt for their managers. Some internal factors include: 1.)The desire for a strong brand name, image, and reputation 2.)A large market share 3.)The desire for a global presence 4.)A stronger financial performance and position 5.)Introduction of new products 6.)Customer focus (Salem, Abdullah, 2009) These internal factors also had an effect on the planning, organizing, leading, and controlling functions of management within McDonald’s. Competing in a Global market makes managers think, act, gather and process information on a larger scale to achieve a goal. Diversity The evolution of McDonald’s Corporation toward diversity as a business objective began in the late 1970’s, when the corporation officially  established an Affirmative Action Department, which today is known as the Diversity Initiative Department (Anonymous, 2005). Numerous factors can affect the four major functions of management; this section will focus on how diversity can affect planning, organizing, leading and controlling within the McDonalds Corporation. Diversity in the workplace is more than a person’s race or ethnic background it also includes personality, gender, education, position in the organization, etc. The major obstacle for McDonald’s management continues to be age, gender, ethnic background and education. Diversity management involves a three-stage process: (Tetteh, 2014) †¢Identification Stage †¢Implementation Stage †¢Maintenance Stage McDonald’s management must identify where the diversity mixture is and decided on the appropriate action to ensure workplace harmony and productivity. This will be accomplished through proper training and communication with all employees. Learning to effectively communicate with the various groups within each location will be very important to the success of the team within each restaurant. Implementing effective processes that ensure each diverse group is accommodated is crucial to the process. McDonalds as a corporation does a great job helping and engaging their management and employee’s to ensure proper implementation by offering education and career development seminars, various gender based seminars, second language courses etc. Maintain and improving these processes will ensure that McDonald’s stays current and relevant to the groups each manager has identified within their department. McDonald’s continually re-evaluates its initiatives to ensure they are in line with their business and current employee base. McDonalds ensures diversity is properly managed within their organization by including diversity in the business planning process. This allows the company and its managers to treat diversity as an initiative rather than a program; it’s naturally incorporated into the business plan (Anonymous, 2005). Ethics When it comes the Functions of Management, you must condsider which parts may be corrupted by ethical issues. Two areas that maybe prone to be affected  are the Leading and Organizing Funtions. In building a dynamic organization you must find a diverse group of people, with different ethical baskgrouds, to fill the different postions in it. You would also want to get them up to speed with you organizations ethical views. If you take a company like McDonald’s you can find out what they do to ensure this. Now McDonalds is committed to conducting business ethically and in compliance with the letter and spirit of the law. This commitment is reflected in McDonalds Values. Inherent in each value is our commitment to be ethical, truthful and dependable and this is reflected through their Standards of Business Conduct, which serves as a guide to making good decisions and conducting business ethically. Each year McDonalds employees are required to re-certify that they have read and will abide by the standards that McDonalds has set through the Standards of Business Conduct. Employees complete regular training on the Standards, anti-bribery laws, and various other laws, regulations and company-specific policies. McDonalds and its employees in all countries must comply with the U.S. Foreign Corrupt Practices Act (McDonalds: Standards Of Business Conduct For Employees, n.d.). References Salem, F., Abdullah, M., (2009) McDonalds case study. http://www.scribd.com/doc/16050821/McDonalds-Case-Study McDonalds: Standards of Business Conduct for Employees. (n.d.). Retrieved from http://www.aboutmcdonalds.com/mcd/investors/corporate_governance/codes_of_conduct/standards_of_business_conduct.html Bateman, T. S., Snell, S. A. (2011). Management: Leading collaborating in a competitive world (9th ed.). New York, NY: McGraw-Hill Irwin. Anonymous, . (2005, November). Diversity at McDonalds: A way of life. Nations Restaurant News, 1(), 92, 94-95 Tetteh, Vanessa A. (2014, January 1). Diversity in the Workplace. Research Starters, p. 1.

Case Study Of Downs Syndrome

Case Study Of Downs Syndrome Paul Z is a 30 year old man who has a Learning Disability and Downs syndrome. He lives at home with Mrs Z, his mother who is his main carer and 18 year old sister S who goes to Sixth Form College and hopes to go to University. Mrs Z is devoted to Paul and gave up her part time job when he left school twelve years ago to look after him full time. Mrs Z who was widowed two years ago has recently been prescribed anti-depressants by her GP as she was not sleeping well and finding life difficult to cope with. Paul is able to complete his personal care and dresses himself appropriately, although he does sometimes need prompting or supervising depending on his mood that day. Mrs Z finds it very difficult to leave Paul at home for any length of time even though he is likely to be able to cope on his own for a few hours. She will occasionally leave him with his younger sister S but she has exams and a very full social life of her own. Neither has Mrs Z been willing to allow Paul to access community based activities, other than the Day Centre which he attends two days per week, because she fears for his safety. Paul really enjoys the Day Centre where he has been given his own shelf in the greenhouse and a patch of garden where he grows flowers and vegetables which he takes home to eat. Paul would like to increase his social activities, develop his independent living skills and have access to a bigger garden to grow more vegetables and to possible sell them. Pauls interests include watching films, reading comic books and playing computer games and football. He also enjoys swimming and accompanies Mrs Z when she goes. Paul is very sociable and well liked by all who meet him. Mrs Z does not drive and both she and Paul are dependent on public transport. Paul requires support when in the community as he could be extremely vulnerable if left on his own because of his friendly and trusting nature. Paul has a good understanding of everyday things but due to his learning disability tends to make decisions based on his every day experience and eagerness to please and may not have necessarily understood or taken into account all the information which might affect the decision. He can appear to have a better understanding of things than he has and he needs to be supported when making more complex decisions. Paul is also very difficult to understand verbally and uses his own language with a form of Makaton and picture Symbols. When he becomes anxious or worried he can be aggressive even towards those who he knows well. Also due to his poor communication skills he finds expressing himself very difficult. 3 practice related questions: In the context of Pauls circumstances provide a critical analysis of: Which types of assessments would need to be implemented, how these would be most appropriately conducted and by whom The first assessment that would need to be implemented would be an assessment of Pauls need for community care services. As Paul has a learning disability and Downs syndrome, there will be assessment barriers that need to be taken account for and overcome to enable Paul to participate fully in the assessment process. In addition this will ensure that the relevant and necessary information is gathered to accurately assess Pauls need for community care services. As described Paul has poor verbal communication skills, this could make it difficult for Paul to express himself during the assessment process. Furthermore Paul may need help in making sense of and understanding information, this would need to be addressed to maintain Pauls full involvement and level of understanding in the assessment and for any decision. Pauls challenging behaviour would need to be taken into account so not to cause harm to him or others. Pauls assessment would normally be conducted by a social worker from Pauls local social services department (NHS Choices, 2009). The social worker would need to find ways of dealing with these potential barriers before the assessment takes place. Paul communicates using his own language; with this in mind it may be appropriate to have someone who knows Paul well to be part of the assessment so they are able to interpret the information to the assessor. Pauls mother or sister could do this Alternative communication-picture symbols social worker could use these/interper however Paul is eager to please so may tell interviewer/social worker what they want to hear. May be case if mum/sister is present so an independent advocate may be advisable. As Paul can get aggressive-build the relationship up before assessment. Carers assessment Mothers own s47 assessment The issues relating to risk, proportionate response and capacity Risk assessment, vulnerable adult, MCA, IMCA How you would work to promote Pauls independence and his right to make his own choices, with whom would you cooperate to achieve this and which theoretical perspectives would inform your practice. Person centred planning-Valuing people Social model of disability 3 Legal Questions: What statutory duties, if any, does the local authority have in respect of assessing and providing community care services to Paul and/or Mrs Z? Please identify the relevant legislation. In respect of assessing Paul, the local authority under Section 47(1) of the National Health Service and Community Care Act 1990, has a duty to assess his needs and depending on the result of that assessment, will decide whether Pauls needs call for the provision of community care services. As Brayne and Carr (2010, pp.541) states there are two clear steps that are required by s.47(1)-an information gathering exercise and a decision making process. During the decision making process, the Local Authority will follow the guidance set by the Fair Access to Care Services Guidance for Adult Social Care Needs issued by the Department of Health in the Local Authority Circular 2002 (LAC 2002 13). The eligibility criteria is based on the risk to independence caused by an individuals presenting needs. End with saying about cc services to link to next paragraph. Community Care services are a range of services that are generally provided by social services to enable the people who are receiving them to remain living within the community rather than moving, for example into residential care (Clements and Thompson, 2007). The main statue that directs community based services is Section 29 of the National Assistance Act 1948. This gives local authorities the power and duty to provide domiciliary care services to disabled people who fall within the definition as defined by the act and who are in need of such services. Services can be provided within the service users home or elsewhere, such as a day centre. As Paul has a learning disability and Downs syndrome, he would be eligible for these services. Under s.29 of the NAA 1948, Paul could receive arrangements to support him with gaining independent living skills, services for recreational and social activities and assistance with setting up his own business so he could sell his vegetables. Paul, under s.29 of the NAA 1948, is defined as being disabled and therefore Local Authorities have further power and duties to provide services under Section 2 of the Chronically Sick and Disabled Persons Act 1970. This section offers a wide range of services that could be available to Paul. He could benefit from outings outside of his home, assistance with travel arrangements for such outings, practical assistance within his home and holidays. Mrs Z is Pauls main full time carer and so would be entitled to an assessment under Section 1 of the Carers and Disabled Children Act 2000, of her own needs in terms of her ability to provide and to continue to provide care for Paul. A carer, as described in the legislation, is an individual who provides or intends to provide a substantial amount of care on a regular basis for another individual aged 18 or over. Within s.1 of the CDCA 2000, Mrs Z, would still be eligible for an carers assessment even if Paul was to refuse a community care assessment himself. The local authority involved in this case, has a statutory duty, under the Carers (Equal Opportunities) Act 2004, to inform Mrs Z of her right to an assessment and must take in to consideration whether Mrs Z works or wishes to work or would like to undertake any education, training or leisure activities. The results of Mrs Zs assessment would be considered during the decision making process of Pauls need for the provision of community care services. If Paul was going to be placed in residential care what statutory duties or powers does the local authority have to place him in residential care, and what statutory duties does the local authority have in respect of the choice of accommodation. Would your answer differ if Paul lacked mental capacity to decide where he should live? If Paul was going to be place in residential care, the local authority has a duty to provide this under Section 21 of the National Assistance Act 1948. Within this act it states that residential accommodation must be provided for persons aged eighteen or over who by reasons of age, illness, disability or any other circumstances are in need of care and attention which is not available. Once Paul has been assessed as eligible for accommodation As Clements and Thompson (2007, pp.222-223) states the NAA 1948 (Choice of Accommodation) Directions 1992 constitute one of the few examples of genuine choice that individuals have in relation to their community care services. The NAA 1948 (Choice of Accommodation) Directions 1992- gives individuals genuine choice that individuals have in relation to their community care services. When they are engaged, the directions give service users a legal right to choose setting of their residential care. Once a social services authority has assessed a person as eligible for accommodation under NAA 1948, S21, it is then obliged to make arrangements to accommodate that person in a care home of his or her choice provided that the conditions in direction 3 of the NAA 1948 (Choice of Accommodation) Directions 1992 (as amended) are satisfied. S1(2) MCA 2005 -presumption of capacity S2 MCA 2005 Decision must be time and issue specific. S4 MCA 2005 if lacks mental capacity then a best interest decision is required c)In the context of the case study please identify any vulnerable adults and say why and in what circumstances you consider them to be vulnerable. What assessments if any would you carry out and what measures if any would you put in place to protect them? Critically analyse which other individuals and/or agencies, if any, you would involve in the safeguarding process. Assessment There are a number of statutes that deal with the matter of assessment. The overarching duty on local authorities is set out in the NHS and Community Care Act 1990. NHS and Community Care Act 1990 Section 47(1). This imposes a duty on local authorities to carry out an assessment of need for community care services with people who appear to them to need such services and then, having regard to that assessment, decide whether those needs call for the provision by them of services. An assessment is triggered where : The person appears to be someone for whom community care services could be provided and The persons circumstances may need the provision of some community care services There are a number of other Acts which deal with the matter of assessment: The NHS and Community Care Act 1990 Section 47(2). If, during the Section 47(1) assessment the person is identified as being disabled *, that person has additional rights as set out in Section 47(2). This requires local authorities to make a decision as to the services required under Section 4 of the Disabled Persons (Services and Consultation and Representation) Act 1986. Note: * see Section 29, National Assistance Act 1948 below Disabled Persons (Services and Consultation and Representation) Act 1986 Section 4. This imposes a duty on local authorities to decide whether the needs of a disabled person call for the provision by the Local Authority of any services in accordance with Section 2(1) of the Chronically Sick and Disabled Persons Act 1970. National Assistance Act 1948 Section 29 (1). To qualify for services under this Section persons must be:   Ã‚  Ã‚  aged 18 or over who are blind, deaf, or dumb, or who suffer from mental disorder of any description, and other persons aged 18 or over who are substantially and permanently handicapped by illness, injury, congenital deformity or such other disabilities as may be prescribed by the Minister. The definition of disabled person should be interpreted in this context to mean people over 18 years who have a permanent and substantial disability such as learning disability, physical disability, sensory impairment, mental health difficulties, chronic illness or any combination of these. LAC(93) 10 Appendix 4 asks councils to give a wide interpretation to the term substantial to take full account of individual circumstances and a flexible interpretation to the term permanent in cases where they are uncertain of the duration of the condition. Examples include episodic or recurring illness, intermittent disability / conditions. People who are disabled within the terms of this definition are not obliged to register with the Department, nor is access to assessment and services dependent on registration. Chronically Sick and Disabled Persons (CSDP) Act 1970 Section 2. This places a duty on local Authorities to assess the individual needs of everyone who falls within Section 29 of the National Assistance Act 1948 above. back to top Assessment of Carers The Carers and Disabled Children Act 2000 Section 1. This section gives carers, aged 16 or over, the right to an assessment of their ability to provide care or continue to provide care: Where they provide or intend to provide a substantial amount of care on a regular basis for another individual 18 or over And the local council is satisfied that the person cared for is someone for whom it may provide or arrange for the provision of community care services. This right exists even where the person cared for has refused an assessment by the local council social services department or has refused the delivery of community care services following an assessment. Note: The Carers and Disabled Children Act 2000 will only rarely be used by councils looking at the needs of 16 and 17 year old carers. Where it is used in these circumstances the assessment must be child centred and follow the guidance set out in the Framework for the Assessment of Children in Need and their Families (paragraphs 3.61 to 3.63.) (Ref The Carers and Disabled Children Act 2000 policy and practice guidance). The Carers and Disabled Children Act 2000 Section 6 . This section provides that a person with parental responsibility for a disabled child has the right to an assessment from the local authority of their ability to provide (and to continue to provide) care for the child. The local authority must take that assessment into account when deciding what services, if any, to provide under section 17 of the Children Act 1989. (Ref The Carers and Disabled Children Act 2000 policy and practice guidance). Disabled Persons (Services Consultation and Representation) Act 1986 Section 8. Carers also have rights under this section which requires local councils to have regard to the ability of the carer to provide or continue to provide care when deciding what services to provide to the disabled person. In these circumstances the assessment of the cared for person must take account of the carer situation and record this as part of the assessment of the cared for person. This requirement exists even where the caring role is not of a regular or substantial nature. back to top Mental Health Act 1983, section 117 requires a local authority jointly with the Health Authority to provide aftercare services for people leaving hospital after being compulsorily detained. It is implicit in such a duty that a process of assessment must be undertaken prior to discharge to identify needs and how they will be met. The delivery of all mental health services is framed within the Care Programme Approach (CPA) which provides the framework for all patients, both in hospital and in the community. Among the key elements of the CPA are: Systematic arrangements for assessing peoples health and social care needs The formulation of a care plan which addresses those needs The appointment of a Care Co-ordinator Regular review of the care plan. Other specific assessment requirements within Mental Health are determined by Sections 2, 3, 4 and 7 of the 1983 Mental Health Act. These sections require an Approved Social Worker to undertake an assessment of an individuals mental health along with key health colleagues. back to top Provision of Services Fair Access to Care Services and the Duty To Provide Once a community care assessment is carried out, councils need to make decisions about whether to provide support or not to individuals. Fair Access to Care Services (FACS) provides councils with an eligibility framework for adult social care to identify whether or not the duty to provide services under the following legislation is triggered. (Ref. Fair Access to Care Services policy and practice guidance). The duty on social services to provide or arrange services is triggered only for those people with eligible needs that is needs above the threshold for services line. The national FACS policy LAC (2002)13 states that councils may take account of the resources available to them in deciding which needs to meet. Needs that are identified as eligible needs and which sit within the laws relating to a duty on Social Services to provide services must be met. How those needs are met is a separate issue. Provision of services takes place primarily under: The National Assistance Act 1948, Section 21 and Section 29 The Chronically Sick and Disabled Persons Act 1970, Section 2 The Health Services and Public Health Act 1968, Section 45 The NHS Act 1977, Section 21 Mental Health Act 1983, Section 117 Carers and Disabled Children Act 2000 Community Care (Direct Payments) Act 1996 back to top Duty to arrange/provide services for people with Eligible Needs National Assistance Act 1948 Section 21(1). Concerns the provision of residential accommodation to certain groups of people over 18 years who through age, illness, disability or any other circumstances are in need of care and attention which would otherwise be unavailable to them. The duty is owed to people ordinarily resident in the Local Authoritys area. National Assistance Act 1948 Section 29. The local council has a duty to exercise its powers for people ordinarily resident in its area and must provide: A social work advice and support service Facilities for rehabilitation and adjustment to disability Facilities for occupational, social, cultural and recreational activities Chronically Sick and Disabled Persons Act 1970 Section 1. This section imposes a duty on local authorities to provide information about relevant services. Chronically Sick and Disabled Persons Act 1970 Section 2 (1). This section sets out the types and range of services that local councils should have available to meet the needs of disabled people *. These include: provision of practical assistance in the home; provision of recreational facilities outside the home or assistance to take advantage of educational facilities; provision of assistance with works for adaptation in the home; provision of meals. Note: * See Section 29(1) of the National Assistance Act 1948 above. National Health Services Act 1977 Section 21. This section identifies that services can be provided in relation to expectant mothers, prevention and after care and that home help and laundry facilities are functions exercisable by social service authorities. Schedule 8 identifies the power to provide and maintain day centres or similar facilities and power to arrange services specifically for people with alcohol and drug problems. Also to provide laundry services as part of the input of home help services. Mental Health Act 1983 Section 117(2) This section creates a joint duty on the local Health and Social services Authorities to provide after care services to various categories of people who have been detained in hospital for as long as the person needs them. Aftercare services are not defined in the Act but will include social work support in helping the ex-patient with problems of accommodation or family relationships, the provision of domiciliary services and the use of day centre and residential facilities. Community Care (Direct Payments) 1996 Act This sets out the circumstances when direct payments should be considered. It gives local authorities the power to offer people cash payments as an alternative to arranging social care services to meet their assessed, eligible needs. (Ref Direct Payment policy) Carers may also have access to Direct Payments. See Carers and Disabled Children Act 2000 Section 5 powers set out below. Health Services Act 1968 Section 45. The Local Authority has a power to make arrangements to promote the welfare of older people. The Carers and Disabled Children Act 2000 Section 2. Under this section the Local Authority has powers to provide services for carers following a carers assessment (whether joint or separate) under Section 1 of this Act. Services to carers are not defined by the Act. The local authority may provide any services they see fit to provide and which in their view help the carer care for the person cared for. These services may take the form of physical help or other forms of support such as training or counselling for the carer. (Ref The Carers and Disabled Children Act 2000 policy and practice guidance). The Carers and Disabled Children Act 2000 Section 5. This section extends the option of Direct Payments to carers aged 16 years or over who care for a person aged 18 or over. (Ref The Carers and Disabled Children Act 2000 policy and practice guidance).