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“Management Finance” assignment

“Management Finance” assignment
Learning outcomes assessed: 1 and 2
Your assignment should:
i) Make reference to appropriate theory, including journal articles and professional and regulatory body reports;
ii) Include detailed references to a variety of literature sources;
iii) Include a wide-ranging bibliography, including details of any published financial statements you have used in your research;
Case Study
Coffee People Ltd is a company that provides personnel for catering operations within a number of national retail outlets. The team make drinks and serve cold food, keep the café tables clear and wash dishes. The supervisor also orders food and drinks and manages the other staff. You are the operational manager for the Midlands area and are required to manage the contract. You have 30 sites to manage.
Budgets are set at the start of the year, based on an average staff cost of £8 per hour and the average number of hours specified in the contract, which is currently set at 10 hours per day Monday to Saturday and 5 hours on Sundays. Opening hours of the café can, however, vary as they are based on the opening hours of the outlet. Opening hours are increased at certain times throughout the year, such as Christmas. Each shift must have one supervisor (who is paid at £10 per hour) plus a variable number of other staff (who are paid at the minimum wage rate). Sole working is not allowed. All new staff are placed on zero hours contracts, although some older members of staff are currently on fixed hours contracts of 30 hours per week. Cover must be provided throughout the day to ensure customers are not kept waiting more than 5 minutes for service.
You have been set a performance target to achieve a profit on sales of 65% based on staff costs. On average, sales for each retail outlet are £10,000 per week, although this varies on a seasonal basis and between sites.
For the past 6 months you have failed to reach your profit target and a number of complaints have been made regarding service levels in your cafes. You have recently been called in to discuss your performance with your regional manager.
A) Discuss the behavioural issues that may emerge as a result of the current budgetary reporting system. (1,500 words)
B) Prepare a briefing note for your meeting with your regional manager. Within this you should consider how effective variance analysis may be used to aid organisational control. (1,000 words)
The required word count for the assignment is 2,500 words in total. This represents 1,500 equivalent words in total for part a) and 1,000 equivalent words for part b).
note: i will upload the criteria grid for the assignment.

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