The Pappadeaux has remained a dominant and leading business enterprise dealing with food and other related hospitality services. The company has a chain of branches in most parts of the city which operates in line with the existing rules and standards. It a certified corporation which has shown trends of sealing the heights of hospitality left aside the enterprises which have been existence for decades (Mort, 1995). More so, the enterprise has set goals integrated in its mission and the vision with expansion taking central objectives. Being an inclusive enterprise, Pappadeaux has given the residence of San Diego a reason to smile after opening a new seafood restaurant within the city. The branch holds the standards and regulations dictated by the mother Pappadeaux (http://www.pappadeaux.com/home).
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As a branch manager, my department was responsible for the making of decisions and plan of actions that were to be implemented in the course of the year. However, due to the many unviable decisions that were made, the company made some losses that were attributed to various wrong decisions made. Being the manager of this newly established branch, the results realized for the first year were noted down as the most astonishing and a decision put forward not to repeat the same (BusinessTown.com, 2001-2003). As the branch manager, I make apologies to the top management of Pappadeaux restaurant since some of the mistakes made in the decisions which saw the downfall of the company’s accounts and were made in my capacity as the manager, could have been avoided in any way. Some of the decision that did not work well for the business included the reduction of budgetary allocation to advertisement, rising of the food prices that scared away customers, giving a mid -year rise to all supervisors among many other factors.
On the issue of reducing the amount of money budgeted for the national corporate national advertisement by 20% and 40 % in San Diego, the company’s sales reduced (http://www.pappadeaux.com/home). This as I later realized was due to the established facts that the company’s sales are heavily dependent on how well national advertising is budgeted for and done. This is due to the multiplying effect factor which directly affected all the food that the company sales, the number of the hourly labor that it employs to produce the foods and the amount of supplies made to the company. All the variables were affected since they are dependent on the amount of sales made. The other decision to increase the price of the foods that were purchased by the central corporate office did work well for the company. All these decisions that had negative results for the company were due to the fact that it was its first year in operation and many decisions were being experimented.
In trying to improve the throughput, the department engaged in a more risk taking decision of reducing the hourly employees and hiking the salary to the remaining. The impacts were not expected to take the trend witnessed but changes can still be made. This is through taking the measure in phases with an aim of employing the ‘checks and balances’ technique. Like the supplies, the enterprise hired these employees locally. The purchases made locally should have been imported from abroad. Likewise, the tax waiving on consumable goods offered should have been taken advantage of before making the decision. Additionally, some extra money was allocated as supervisors’ ‘farewell’ for the mid-year.
However, some extra expenditure was totally inevitable as the legal procedures and policies changed with others causing budgetary burdens. Some of them are Public Utility Commission, insurance, and rental terms. Despite the assumptions made during budgetary allocation, PUC raised their rates beyond the normal and the struggle to compensate the loss got the time challenge and this could be corrected in the next quarter. Therefore the department had already laid strategies to curb this with full confidence. Budget flexibility plays an important role during such circumstances and the allocation should also apply this trend. Every sector should be awarded an extra amount returnable at the end of every financial year subject to emergencies and subsequent use.
One of the achievements the branch made during this financial is accommodating the cost embracing the ICT in corporate headquarters. Every department was supplied with the IT appliances including computers. Also, the headquarters improvised the advertisement department by opening several websites to attract customers and publicize the restraint to people living outside the city and also from abroad. All these costs were shared with our branch contributing to extra costs not expected nor gathered for during the budgetary allocation (http://www.pappadeaux.com/home).
In conclusion, my department is fully aware of the losses incurred by the enterprise during the financial year. However, it should be noted that the branch was newly opened and the business had not picked up yet. Likewise, some costs incurred were inevitable especially PUC and the insurance fee. It was very difficult to cope with these at the time keeping the operation of the company run as expected (Mort, 1995). All these are attributed to the failure of the existing accounting system that does not put all the accounting components into consideration. Consequently, as a recommendation, the system should be reviewed to incorporate the following as some of it components; accounting receivables, payroll, inventory control, cost accounting, fixed assets accounting, accounts payable, and the order entries. To accomplish all these, the organization should recruit qualified staff to implement them.
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