For Report 2 it is my task to review the present situation at the Broadway Theatre and based on my findings to produce a report identifying what appear to the key problems. My report should include details on the staffing structure of the theatre; details of costs, revenues, profits, losses, cash flow, pricing and break-even analysis. My report should also include information on the theatre's layout and grounds as well as information on services and performances the theatre has on offer.
For Report 3 it is my task to follow on from Report 2 and outline some possible solutions to the problems previously highlighted. I will then go on to say which of the possible solutions I am going to investigate further and state how I will go about my investigation. This report must include a summary of the problems identified in Report 2, and a summary of the possible solutions to these problems and what it would involve to put the possible solutions into place. I must also identify the ideas that I plan to investigate and I must state how I will conduct my investigation.
To complete Report 4 I must conduct an investigation into the ideas I have proposed in Report 3. The research that I do in this report will allow me to conclude whether or not my proposed development is feasible. In this report I must show evidence of my research and finally draw conclusions as to whether or not the development I have proposed is feasible. For Report 5 it is my task to complete a business plan for the Broadway Theatre. This is assuming that the development I proposed proved to be feasible.
When producing this business plan I am aiming to attract investors or obtain finance from particular source such as a bank. Based on this business plan possible investors will hopefully provide the Broadway Theatre with the required capital to undertake the proposed development.
Therefore the business plan must include a vast range of information on the Broadway Theatre. I intend to make my proposals for the Broadway Theatre based on the following business theory. Aims and Objectives An aim is often a vague and general statement of intent. For example an aim of the theatre would be to make a greater profit or to expand. An other aim would be to improve the company's image.
Whereas an objective is clear statement of intent. An objective will help a business to achieve its aims. An example of an objective is to increase ticket prices in the stalls by x% or to reduce costs by x%. Other objectives would be to create a new program schedule or to refurbish the foyer. Effects of refurbishing the foyer would be that it would increase revenue expenditure however it would improve the image of the theatre and hopefully in the long term increase revenue.
Sources of finance Finance is needed for four main reasons: 1. To start up a business and purchase premises, stock, equipment and raw materials. 2. For renewal of machinery and other assets as they were out. 3. For cash flow which is required to cover running costs and the costs of production.
4. For the expansion of a business if the owners wish to grow the firm. Their are two different sources of finance for business's; their are internal sources and external sources. The main internal source of finance is the money which is saved each year by the business out of its net profit, this is known as retained profit. Retained profit is an extremely useful internal source of finance because it can be accessed immediately without incurring interest charges.
A business can also sell any investments it has made. This is where a business has invested money on the grounds that it will make a profit, this money may have come from a number of sources such as retained profit. When the business requires capital it can sell its investments. A business can also sell any assets it has such as a building, machine or car. This will provide the business with a one-off source of cash. However, before selling an asset you should considered carefully because the asset may be making a contribution towards the firm's profits.
The alternative to selling an asset is to sell it and lease it back. This involves selling the asset to a new owner and then paying for the use of the asset. This is known as sale and lease-back. This means that business will have the cash required from the sale and still have the use of the asset.
External sources of finance are available from many financial institutions these sources include: Loans. Which are available from highstreet banks, finance houses and merchant banks. These will offer loans for short, medium or long periods of time. The firm will make repayments at regular intervals with a fixed rate of interest. The Government also offer financial aid to business's in the form of Government loans e.g. soft loans which are loans at lower rate of interest.